Slide 1: Fourth Quarter 2024 Financial Results
Fourth Quarter 2024 Financial Results January 30, 2025
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: Full-Year 2024 Accomplishments
Full-Year 2024 Accomplishments Increased margin and EPS, returned $1.4B of cash returned to shareholders and optimized portfolio Segment Net Sales EBITDA Margin Improved Segment EBITDA Margin $15.8B 20% +70bps 20% Operating Cash Flow Portfolio Management 19% Completed divestitures 19% $1.4B of silic
Slide 4: Coatings Industry - Adjusted EBITDA Margin
Coatings Industry - Adjusted EBITDA Margin PPG’s improved business portfolio results in step change in margin +220 bps 19.4% 18.1% 17.2% 15.9% 15.2% 13.8% Competitor A PPG Competitor B PPG Competitor C Competitor D 2024 2024 2023 2023 2024 2024 as Previously Reported 4 Note: Competitors include Akzo
Slide 5: Revised PPG Business Segmentation
Revised PPG Business Segmentation Higher margin and higher growth portfolio supported by differentiated products and strong brands Global Architectural Coatings Segment EBITDA Margin Strong #1 or #2 in >15 countries 24% ~25% Architectural EMEA Organic sales 23% Performance Coatings Architectural 2 Y
Slide 6: Segment Drivers
Segment Drivers Growth enablers 2024 Segment EBITDA $3.2B Global Architectural Coatings • Leading and trusted brands with world-class distribution networks • Strong #1 or #2 in >15 countries ~25% • Advanced water-based product portfolio and low-carbon product offerings • Excellent digital solutions
Slide 7: Fourth Quarter 2024 Highlights
Fourth Quarter 2024 Highlights Share Repurchases Adjusted EPS of $1.61 increased 6% ~$250MM excluding foreign exchange impact Adjusted EPS Strong organic sales growth in aerospace, protective and marine, and traffic solutions $1.61 +3% Sluggish demand in Europe and soft Net Sales Segment automotive
Slide 8: Fourth Quarter Net Sales
Fourth Quarter Net Sales Organic sales down 2% in a challenging macro-economic environment Net Sales ($ in millions) $3,912 0% Selling prices: Flat with targeted increases offset by index-based pricing in certain -2% customer contracts $3,729 -2% -1% Volumes: Growth in Performance Coatings more than
Slide 9: Global Architectural Coatings
Global Architectural Coatings Segment EBITDA Margin Organic sales growth in Mexico offset by lower European demand 4Q’24 FY 2024 16.3% 19.9% Net Sales ($ in millions) $943 0% -20 bps +70 bps -2% $881 -5% Organic Sales 4Q’24 Results 4Q'23 Price Volume Currency 4Q'24 Architectural LSD EMEA Architectur
Slide 10: Performance Coatings
Performance Coatings Segment EBITDA Margin Strong growth in aerospace and protective and marine coatings 4Q’24 FY 2024 23.1% 24.3% Net Sales ($ in millions) 1% +260 bps +170 bps 3% $1,262 $1,233 -2% 4Q’24 Organic Sales Results 4Q'23 Price Volume Divestitures 4Q'24 Aerospace DD and Other Refinish LSD
Slide 11: Industrial Coatings
Industrial Coatings Segment EBITDA Margin Organic sales challenged by soft automotive and industrial markets 4Q’24 FY 2024 Net Sales 14.8% 16.4% ($ in millions) -160 bps -30 bps $1,736 -2% $1,586 4Q’24 -4% Organic Sales -1% Results -2% 4Q'23 Price Volume Currency Divestitures 4Q'24 Auto OEM HSD and
Slide 12: Strong Balance Sheet and Cash
Strong Balance Sheet and Cash Increased cash return to shareholders 2024 Activity Cash Deployed to Shareholders ($ in millions) $450 $400 $1.4B $1.4B $350 Cash Balance Operating Cash Flow December 31, 2024 $300 $250 $200 $150 $100 $4.5B $1.4B $50 Net Debt Dividends and Share $0 December 31, 2024 Rep
Slide 13: Balanced Cash Deployment
Balanced Cash Deployment Legacy of consistent, accretive and prudent cash deployment PPG Annual Dividend Cash Deployed $5B $10B $3.00 10% 20% Return to $2.50 Shareholders 30% $2.00 60% 40% 40% $1.50 5% 35% $1.00 Grow the Business $0.50 35% 40% 60% 25% $0.00 1984 1992 2000 2008 2016 2024 3 Years 5 Ye
Slide 14: Macro Trends Support PPG's Long-Term Growth
Macro Trends Support PPG’s Long-Term Growth Automotive OEM Light Vehicle Builds Industrial Production Passenger Aircraft Delivery Indexed to 2017 Global Peak % Change YOY # of Aircraft 2016-2019 Avg. Stabilizing production Global industrial production to PPG is well positioned for multi- environment
Slide 15: PPG's Next Chapter
PPG’s Next Chapter Driving superior performance through high-margin business growth and strong cash flow Aggressive Execution of Enterprise Growth Strategy 2025 Outcomes Organic Sales ✓ Sharpened portfolio with 3 distinct segments +LSD, driven by share gains, 2H weighted 0 ✓ Selective, accretive M&A
Slide 16: First Quarter and Full-Year 2025 Financial Projections
First Quarter and Full-Year 2025 Financial Projections First Quarter 2025 Full Year 2025 Share Repurchases Up to $400MM Adjusted EPS $7.75 - $8.05 per share Segment organic sales (YOY %): -LSD to Flat +LSD Global Architectural Coatings Flat to +LSD +LSD to +MSD Performance Coatings +LSD to +MSD +LSD
Slide 17: PPG: A Compelling Long-Term Investment
PPG: A Compelling Long-Term Investment Diversified Global Portfolio Leading positions in all coatings verticals Strong Brands, Technologies and Services Organic and inorganic growth opportunities Asset-Light, Highly Flexible Cost Structure Accelerating margin expansion Strong Balance Sheet & Cash de
Slide 18: Appendix
Appendix
Slide 19: Segment Margin Reconciliation
Segment Margin Reconciliation $ in millions, except margin % 2022 2023 2024 Global Architectural Coatings FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Segment Margin, As Reported 14.5% 16.4% 17.4% 18.9% 13.9% 16.7% 17.2% 19.6% 18.3% 13.4% 17.3% Net Sales $3,852 $975 $1,066 $1,037 $943 $4,021 $966 $1,070 $1,004
Slide 20: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation $ in millions, except EPS Total PPG Fourth Quarter 2024 Net Income EPS(a) Net Income from Continuing Operations, As Reported $ 2 $ 0.01 Acquisition-related amortization expense 24 0.10 Business restructuring-related costs, net(b) 314 1.35 Portfolio optimization costs(c) 3
Slide 21: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation $ in millions, except EPS Total PPG Fourth Quarter 2023 Net Income EPS(a) Net Income from Continuing Operations, As Reported $ 103 $ 0.43 Acquisition-related amortization expense 32 0.13 Impairment and other related charges, net(b) 160 0.67 Business restructuring-related
Slide 22: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation $ in millions, except EPS Total PPG Full year 2023 Net Income EPS(a) Net Income from Continuing Operations, As Reported $ 1,223 $ 5.16 Acquisition-related amortization expense 115 0.48 Impairment and other related charges, net(b) 160 0.67 Business restructuring-related co
Slide 23: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $ in millions Full Year 2024 2023 Net Income from Continuing Operations, As Reported $ 1,344 $1,223 Interest expense, net of interest income 64 107 Income tax expense 475 428 Depreciation 360 360 Amortization 132 154 Net income attributable to noncontrolling interests
Slide 24: Adjusted EBITDA Reconciliation – As Presented in 2023 Form 10-K
Adjusted EBITDA Reconciliation – As Presented in 2023 Form 10-K $ in millions Full Year As presented in Form 10-K filed on February 15, 2024 2023 Net Income from Continuing Operations, As Reported $ 1,270 Interest expense, net of interest income 107 Income tax expense 439 Depreciation 391 Amortizati
Slide 25: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $ in millions, except Akzo € in millions SHW PPG AXTA RPM AKZA 2024 2024 2023 Fiscal 2024 2024 Reported net income from continuing operations $2,681 $1,344 $269 $589 € 592 Interest expense, net of interest income and non-controling interest 405 97 204 73 79 Income tax
Slide 26: Full Year 2023 Discontinued Operations Impact
Full Year 2023 Discontinued Operations Impact Sales Impact EBIT Impact EPS Item Comments $MM $MM Impact Architectural coatings U.S. and Business as reported in Performance Coatings $1,950 $3 Canada, as previously reported segment Historic product sales that will be supplied to Commercial agreements
Slide 27: Full Year 2024 Discontinued Operations Impact
Full Year 2024 Discontinued Operations Impact Sales Impact EBIT Impact EPS Item Comments $MM $MM Impact Architectural coatings U.S. and Business as reported in Performance Coatings $1,847 $18 Canada, as previously reported segment Historic product sales that will be supplied to Commercial agreements
Slide 28: Thank You For Your Interest In PPG
Thank You For Your Contact Information: Interest In PPG INVESTORS: Alex Lopez phone: +1.412.434.3466 email: alejandrolopez@ppg.com MEDIA: Mark Silvey phone: +1.412.434.3046 email: silvey@ppg.com 28