Slide 1: Fourth Quarter 2023 Financial Results
Fourth Quarter 2023 Financial Results January 18, 2024 Tim Knavish, Chairman and Chief Executive Officer Vince Morales, Senior Vice President and Chief Financial Officer John Bruno, Vice President, Finance Jonathan Edwards, Director, Investor Relations
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 2023 Financial Highlights
Fourth Quarter 2023 Operating Financial Highlights Cash Flow ~$900MM + $300MM Record 4Q sales and cash generation Adjusted EPS Strong organic growth in aerospace, auto $1.53 OEM and protective & marine coatings +25% Solid YOY volume growth in China Net Segment and stabilizing demand in Europe Sales
Slide 4: Fourth Quarter Record Net Sales
Fourth Quarter Record Net Sales Organic sales up 1% year-over-year Net Sales ($ in millions) 1% Selling prices: Includes incremental 2023 actions 2% $4,350 2% $4,185 -1% Volumes: Strong aerospace, automotive OEM, and protective and marine coatings offset by soft industrial production and architectur
Slide 5: Operating Environment Heading Into 2024
Operating Environment Heading Into 2024 Positives • Aerospace recovery and order backlog 0 • Mexico economic growth • Price – targeted increases • Raw material availability Watching • China demand improving; Europe stabilizing • Geopolitical environment • Infrastructure spending • Consumer spending
Slide 6: Performance Coatings
Performance Coatings 4Q’23 Segment 0 12.4% Organic sales increase led by aerospace and protective & marine Margin +150 bps YOY Net Sales ($ in millions) Organic Sales 4Q’23 1Q’24 $2,615 Results Outlook 3% 3% $2,490 -1% Aerospace DD HSD Refinish LSD LSD Architectural LSD FLAT 4Q'22 Price Volume Curre
Slide 7: Industrial Coatings
Industrial Coatings 4Q’23 Segment 0 13.3% Strong YOY margin improvement +420 bps YOY Margin Net Sales ($ in millions) Organic Sales 4Q’23 1Q’24 2% $1,735 Results Outlook $1,695 0% Auto OEM MSD LSD 0% Industrial MSD FLAT 4Q'22 Price Volume Currency 4Q'23 Packaging LSD FLAT Highlights Industrial Coati
Slide 8: Record Operating Cash Flow
4Q’23 Activity Record Operating Cash Flow Operating cash flow ($ in millions) 3,000 ~$900MM $1.6B 2,500 Operating cash flow Cash balance December 31, 2023 2,000 $300MM YOY 1,500 1,000 500 0 $4.5B Net debt -500 December 31, 2023 2019 2020 2021 2022 2023 Paid down $300MM of term loan debt Free cash fl
Slide 9: Full Year 2023 Results
Full Year 2023 Results Record net sales, adjusted EPS, and operating cash flow supporting strong progress on margin recovery Net Sales Record net sales driven by higher selling prices in all businesses and favorable foreign +3% $18.2B exchange rates more than offsetting lower volumes +3% Organic Sal
Slide 10: Full Year and First Quarter 2024 Financial Projections
Full Year and First Quarter 2024 Financial Projections Category First Quarter 2024 Full Year Total organic sales (YOY) +/- LSD + LSD Adjusted EPS $1.80 - $1.87 per share $8.34 - $8.59 per share Raw material costs (YOY) - MSD Corporate expense ~$90MM $320MM - $340MM Net interest expense ~$13MM to $16
Slide 11: Appendix
Appendix
Slide 12: Segment Margin and Adjusted EPS Excluding Amortization
Reconciliation: Segment Margin and Adjusted EPS Excluding Amortization $ in millions, except margin % 2021 2022 2023 Performance Segment Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Segment Margin, As Reported 16.6% 16.5% 14.8% 9.7% 14.4% 12.4% 15.2% 13.4% 10.9% 13.1% 15.0% 17.7% 15.7% 12.4% 15.3% N
Slide 13: Adjusted EPS
Reconciliation: Adjusted EPS $ in millions, except EPS Total PPG Fourth Quarter 2023 Net Income EPS(a) Net Income from Continuing Operations, As Reported $ 90 $ 0.38 Acquisition-related amortization expense 30 0.13 Impairment and other related charges, net(b) 160 0.67 Business restructuring-related
Slide 14: Adjusted EPS
Reconciliation: Adjusted EPS $ in millions, except EPS Total PPG Full year 2023 Net Income EPS(a) Net Income from Continuing Operations, As Reported $ 1,270 $ 5.35 Acquisition-related amortization expense 121 0.51 Impairment and other related charges, net(b) 160 0.67 Business restructuring-related c
Slide 15: Adjusted EPS
Reconciliation: Adjusted EPS $ in millions, except EPS Total PPG Fourth Quarter 2022 Net Income EPS(a) Net Income from Continuing Operations, As Reported $ 238 $ 1.01 Acquisition-related amortization expense 31 0.13 Impairment and other-related charges, net(b) 11 0.05 Business restructuring-related
Slide 16: Thank You For Your Interest In PPG
Thank You For Your Interest In PPG Contact Information: INVESTORS: Jonathan Edwards phone: +1.412.434.3466 email: jonathanedwards@ppg.com MEDIA: Mark Silvey phone: +1.412.434.3046 We protect and beautify the world® email: silvey@ppg.com 16