Ppg Industries, Inc. · NYSE:PPG
Ppg Industries — Q1 2023 Earnings Presentation
14 slides from Ppg Industries's earnings presentation, Apr 21, 2023
Slide 1: First Quarter 2023 Financial Results
First Quarter 2023 Financial Results Tim Knavish, President and Chief Executive Officer Vince Morales, Senior Vice President and Chief Financial Officer John Bruno, Vice President Investor Relations All content within is proprietary to PPG. Information current as of April 20, 2023
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: First Quarter 2023 Financial Highlights
First Quarter 2023 Financial Highlights Organic sales* • Selling prices up ~8%; foreign currency -2% Up 5% • Sales volumes decreased 3%; softer demand in Europe and China • Strong global aerospace demand; order backlogs ~$250 million Adjusted earnings • Raw material cost inflation moderating at hist
Slide 4: PPG First Quarter Net Sales
PPG First Quarter Net Sales ($ in millions) $5,000 +8% -3% -2% -1% 4,380 $4,500 4,308 $4,000 1Q'22 Price Volume Currency Divestitures and 1Q'23 Russia wind down PPG Y-O-Y Net Sales Trend Foreign Currency Rate Trends vs. U.S. Dollar (excluding currency impacts)* (indexed to Q1’21) 15% 10% 38.5% 5% 0%
Slide 5: 2023 Operating Environment (First Quarter Update)
2023 Operating Environment (First Quarter Update) Positives Watching Challenges Price – cost recovery momentum U.S. consumer spending U.S. housing / construction China reopening and Europe Global energy price volatility Higher pension costs (non-cash) demand stabilizing Recovery in aerospace and Glo
Slide 6: Performance Coatings 1st Quarter Highlights
Performance Coatings 1st Quarter Highlights • Selling price increases of high single-digit percentage YOY $MM (USD) 1Q23 1Q22 Chg % • Aerospace record 1Q sales; improving protective and marine demand (U.S.) Net Sales 2,628 2,570 +58 +2% • New customer wins (U.S. architectural); 1Q new customers load
Slide 7: Industrial Coatings 1st Quarter Highlights
Industrial Coatings 1st Quarter Highlights $MM (USD) 1Q23 1Q22 Chg % • Selling price increases of a high single-digit percentage; improving supply chain disruptions Net Sales 1,752 1,738 +14 +1% • Strong segment margin recovery +560 bps YOY Segment Income 240 140 +100 +71% • Auto OEM sales aided by
Slide 8: Balance Sheet and Cash
Balance Sheet and Cash First Quarter Cash and Debt ($ in billions) First Quarter 2023 Activity and Liquidity 1Q 2023 approximate cash uses $8 7.2 7.3 • Working capital: securing inputs for seasonally higher second quarter $7 • Capital spending: $120 million 6.2 6.2 6.1 5.8 • Dividends: ~$145 million
Slide 9: Second Quarter 2023 Financial Projections
Second Quarter 2023 Financial Projections ($ in millions unless otherwise stated) Category Projection Total company sales volumes (YOY) Up or down a low single-digit percentage *Adjusted earnings-per-diluted share $2.05 - $2.15 Divesture-related net sales and Russia net sales ~$20 Raw material costs
Slide 10: PPG's Demonstrated Commitment to ESG Priorities
PPG’s Demonstrated Commitment to ESG Priorities Environmental Social Strong Governance Resilience Responsibility 17% reduction in absolute 70% progress toward $20 direct and indirect GHG million investment by 70% of invited suppliers have emissions from 2017, 2025 to address racial responded to EcoV
Slide 11: Additional materials and appendix
Additional materials and appendix
Slide 12: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation $ in millions, except EPS Total PPG First Quarter 2023 Net Income EPS(a) Net Income from Continuing Operations, As Reported $ 264 $ 1.11 Pension settlement charge(b) 144 0.61 Acquisition-related amortization expense 31 0.13 Insurance recovery of expenses incurred due to a
Slide 13: Historical ROS Segment Margin and Adjusted EPS Excluding Amortization
Historical ROS* Segment Margin and Adjusted EPS Excluding Amortization $ in millions, except ROS % 2020 2021 2022 2023 Performance Segment Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 ROS Margin, As Reported 13.5% 17.5% 18.9% 13.8% 16.0% 16.6% 16.5% 14.8% 9.7% 14.4% 12.4% 15.2% 13.4% 10.9% 13.1%
Slide 14: 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 14