PPG Industries, Inc. · NYSE:PPG
PPG Industries — Q4 2020 Earnings Presentation
20 slides from PPG Industries's earnings presentation, Jan 21, 2021
Slide 1: Fourth Quarter 2020 Financial Results
Fourth Quarter 2020 Financial Results Michael H. McGarry, Chairman and Chief Executive Officer Vincent J. Morales, Senior Vice President and Chief Financial Officer John Bruno, Director, Investor Relations All content within is proprietary to PPG. Information current as of January 21, 2021.
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements that reflect the Company’s current views with respect to future events and financial performance. You can identify forward-looking statements by the fact that they do not relate strictly to current or historic facts. Fo
Slide 3: Fourth Quarter 2020 Financial Highlights
Fourth Quarter 2020 Financial Highlights Net sales up ~2% Record adjusted earnings per Cash deployment diluted share* of $1.59 and liquidity • Net sales totaled ~$3.8 billion; Y-O-Y • Adjusted EPS was higher by 21% • Generated record Q4 operating sales volumes declined 1.4%, versus prior year cash f
Slide 4: PPG Fourth Quarter Net Sales
PPG Fourth Quarter Net Sales ($ in millions) $4,000 3,672 +1.6% -1.4% +1.6% +0.6% 3,757 $3,500 $3,000 4Q'19 Price Volume Currency Acq./Div. 4Q'20 PPG Y-O-Y Net Sales Trend Reporting Segment Sales Trends (excluding currency impacts) (versus 2019 & excluding currency impacts) 2.9% 1.6% 1.9% 2.2% 1.7%
Slide 5: Fourth Quarter Sales Volumes
Fourth Quarter Sales Volumes PPG volume performance by major coatings vertical vs. prior year and end-use market demand U.S. and Canada Europe / Middle East / Africa Asia-Pacific Latin America Aerospace Above Market At Market Above Market At Market Automotive Refinish At Market At Market At Market A
Slide 6: Performance Coatings
Performance Coatings $MM (USD) 4Q20 4Q19 Chg % Select Net Sales Detail Volume Currency Acquisition Net Sales 2,167 2,183 -16 -1% 4Q Y-O-Y Change -6% +1% +1% Income 299 307 -8 -3% Margin % 14% 14% -- -- Business 4th Quarter Results 1st Quarter Outlook Segment sales close to prior year levels despit
Slide 7: Industrial Coatings
Industrial Coatings Regional Auto Production Forecast (million units)* 7.0 $MM (USD) 4Q20 4Q19 Chg % 6.0 Net Sales 1,590 1,489 +101 +7% 5.0 Income 282 203 +79 +39% 4.0 Margin % 18% 14% +4% -- 3.0 2.0 Select Net Sales Detail Volume FX Acquisition 1.0 China N. America EMEA 4Q Y-O-Y Change +5% +2% -- 4
Slide 8: Balance Sheet and Cash
Balance Sheet and Cash Fourth Quarter Cash and Debt ($ in billions) Fourth Quarter 2020 Activity and Liquidity $6 4Q 2020 approximate cash uses 5.7 • Capital spending $135 million 5.0 5.1 $5 • Dividends $130 million 4.4 4.1 4.1 Liquidity 3.8 3.9 $4 • $1.9 billion cash and short term investments at e
Slide 9: Cash
Cash ($ in millions) Cash and Short-term Investments* 2020 Cash Generated & Uses $2,000 $1,900 $1,900 $1,500 ~$2,100 $1,500 $1,500 $2,100 $1,300 $1,000 $1,000 ~$1,700 $1,800 $500 $1,500 $0 2015 2016 2017 2018 2019 2020 $1,200 Approximate 2020 Cash Uses** $900 Dividends $500 $600 Capital Expenditures
Slide 10: PPG Full Year Net Sales (continuing operations)
PPG Full Year Net Sales (continuing operations) ($ in millions) $16,000 +1.5% -10.0% 15,146 $15,000 -1.0% +1.0% 13,834 $14,000 $13,000 $12,000 FY 2019 Price Volume Currency Acq./Div. FY 2020 2020 Net Sales by Major Region PPG Currency Exposure Latin Currency ~2020 % America PPG Net Sales 10% Euro 21
Slide 11: 2020 Full Year Summary
2020 Full Year Summary Financial and operational performance • Net sales lower by nearly 8% in constant currencies, including selling price increases of 1.5% • Sales volumes fell by about 10%, impacted by the COVID-19 pandemic • Acquisition-related sales growth of 1% • Despite lower sales, aggregate
Slide 12: Overview of Recently Announced Acquisitions
Overview of Recently Announced Acquisitions Date of Announcement November 30, 2020 December 18, 2020 January 5, 2021 January 11, 2021 Estimated Date of Closing December 2020 ~ 1H 2021 ~1Q 2021 ~1H 2021 Estimated Annual Revenue ~$600MM ~$680MM* ~$70MM ~$260MM Key Attributes Geographic Expansion Produ
Slide 13: PPG Traffic Solutions (Ennis-Flint) Overview
PPG Traffic Solutions (Ennis-Flint) Overview • A leading global manufacturer of pavement marking products – leading position in the U.S. • 22 manufacturing facilities and ~1,000 employees • Resilient demand: non-discretionary & essential maintenance spending • Global total addressable sales ~$2.5 bi
Slide 14: PPG Traffic Solutions Financial Information
PPG Traffic Solutions Financial Information Sales by Region Sales by Segment Asia Pacific Mobility Latin America 5% ~10% 4% EMEA 7% Preformed & Raised Paint Markers ~40% ~20% US & Canada Thermoplastics 84% ~30% • Strong presence in US, UK, Italy and Australia; 2020 sales ~$600 million & mid-teen per
Slide 15: First Quarter 2021 Financial Projections
First Quarter 2021 Financial Projections ($ in millions unless otherwise stated) Category Projection Total company sales volumes (Y-O-Y) Flat to up a low single-digit percentage *1Q adjusted earnings-per-diluted share $1.55 - $1.61 Raw material costs (Y-O-Y) Inflationary: sequentially and Y-O-Y Favo
Slide 16: 2021 Full Year Financial Assumptions
2021 Full Year Financial Assumptions ($ in millions unless otherwise stated) Full Year Pre-Tax Category Full Year Net Sales Comments Income Category Projection Phasing of incremental net sales 2020 - 2021 Acquisitions ~$1.0 billion Below segment average follows 2020 and 2021 acquisition (acquired or
Slide 17: Additional materials and appendix
Additional materials and appendix
Slide 18: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation $ in millions, except EPS Total PPG Fourth Quarter 2020 Net Income EPS(a) Net Income from Continuing Operations, As Reported $ 272 $ 1.14 Impairment charges(b) 64 0.27 Business restructuring-related costs, net(c) 18 0.08 Environmental remediation charges 10 0.04 Expenses
Slide 19: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation $ in millions, except EPS Total PPG Full Year 2020 Net Income EPS(a) Net Income from Continuing Operations, As Reported $ 1,056 $ 4.44 Business restructuring-related costs, net(b) 166 0.70 Impairment charges(c) 64 0.27 Increase to allowance for doubtful accounts related t
Slide 20: Thank You For Your Interest In PPG
Thank You For Your Interest In PPG Contact Information: INVESTORS: John Bruno phone: +1.412.434.3466 email: jbruno@ppg.com MEDIA: Mark Silvey phone: +1.412.434.3046 email: silvey@ppg.com 20