Ppg Industries, Inc. · NYSE:PPG
Ppg Industries — Q4 2019 Earnings Presentation
14 slides from Ppg Industries's earnings presentation, Jan 16, 2020
Slide 1: Fourth Quarter 2019 Financial Results
Fourth Quarter 2019 Financial Results Michael H. McGarry, Chairman and CEO Vincent J. Morales, Senior Vice President and CFO John Bruno, Director, Investor Relations Information current as of January 16, 2020
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 2019 Financial Highlights
Fourth Quarter 2019 Financial Highlights Net sales up approximately 2% in constant currencies • Selling prices increased nearly 2%, marking the seventh consecutive quarter of sequentially higher pricing of about 2% with continuing contributions from both reporting segments • Aggregate sales volumes
Slide 4: PPG Fourth Quarter Net Sales
PPG Fourth Quarter Net Sales ($ in millions) $3,800 +1.8% -2.7 +2.8% $3,700 3,645 3,672 -0.9% $3,600 $3,500 $3,400 $3,300 4Q'18 Price Volume Currency Acq./Div. 4Q'19 PPG Y-O-Y Net Sales Trend Foreign Currency Rate Trends vs. U.S. Dollar (excluding currency impacts) (indexed to Q4’17) 10% 7% 5.9% 8%
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. & Canada Europe / Middle Asia-Pacific Latin America East / Africa Aerospace Above Market At Market Above Market At Market Automotive Refinish Above Market At Market At Market
Slide 6: Performance Coatings
Performance Coatings $MM (USD) 4Q19 4Q18 Chg % Year 2019 Year 2018 Chg % Net Sales 2,183 2,140 +43 +2% 9,034 9,087 -53 -1% Income 307 261 +46 +18% 1,409 1,300 +109 +8% Margin % 14.1% 12.2% +1.9% -- 15.6% 14.3% +1.3% -- Select Net Sales Detail Total Volume Currency Select Net Sales Detail Total Volum
Slide 7: Industrial Coatings
Industrial Coatings $MM (USD) 4Q19 4Q18 Chg % Year 2019 Year 2018 Chg % Net Sales 1,489 1,505 -16 -1% 6,112 6,287 -175 -3% Income 203 187 +16 +9% 862 818 +44 +5% Margin % 13.6% 12.4% +1.2% -- 14.1% 13.0% +1.1% -- Select Net Sales Detail Total Volume Currency Select Net Sales Detail Total Volume Curr
Slide 8: Cash
Cash ($ in millions) Cash and Short Term Investments* 2019 Cash Generated & Uses $2,000 $1,900 $1,500 $1,500 ~$2,100 $1,500 $1,300 $1,000 $2,000 $1,000 $500 $1,700 $0 ~$1,500 2015 2016 2017 2018 2019 $1,400 Approximate 2019 Cash Uses Dividends $1,100 $470 $680 Share Buyback $800 Capital Expenditures
Slide 9: PPG Full Year Net Sales (continuing operations)
PPG Full Year Net Sales (continuing operations) ($ in millions) $16,000 +2.3% -3.1% $15,500 15,374 -2.6% +2.0% 15,146 $15,000 $14,500 $14,000 FY'18 Price Volume Currency Acq./Div. FY'19 2019 Net Sales by Major Region PPG Currency Exposure Latin Currency ~2019 % PPG America Net Sales 10% Euro All 20%
Slide 10: 2019 Full Year Summary
2019 Full Year Summary Financial and operational performance • Net sales up nearly 1% in constant currencies; aided by selling prices increases of more than 2% • Sales volume fell by about 3%, impacted by weak industrial and manufacturing activity as well as the previously communicated customer asso
Slide 11: First Quarter 2020 Financial Assumptions
First Quarter 2020 Financial Assumptions Category Projection ($ in millions unless stated otherwise) Cost savings programs (incremental) • $17 - $20 • Flattening Raw material costs (Y-O-Y) Potential for heightened volatility due to recent crude oil movements Corporate & legacy expenses (total) • $60
Slide 12: 2020 Full Year Financial Assumptions
2020 Full Year Financial Assumptions Full Year Net Full Year Pre- Category Comments Sales Tax Income ($ in millions unless stated otherwise) Below segment Phasing of incremental net sales 2019 - 2020 Acquisitions $160 - $180 average earnings follows 2019 and 2020 acquisition (acquired or announced)
Slide 13: Additional Materials and Appendix
Additional Materials and Appendix Thank you for your interest in PPG Industries, Inc. 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
Slide 14: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation $ in millions, except EPS Continuing Operations Discontinued Operations Total PPG Net Income EPS(b) Net (Loss) EPS(b) Net Income EPS(b) Fourth Quarter 2019 Net Income/(Loss) Attributable to PPG as Reported $ 295 $ 1.23 $ (3) $ (0.01) $ 292 $ 1.22 Business restructuring-re