Sherwin-Williams Company (the) · NYSE:SHW
Sherwin-Williams Company (the) — The Sherwin-Williams Company — Investor Day (May 2013)
20 slides from Sherwin-Williams Company (the)'s investor day presentation, May 23, 2013
Slide 1: Financial Overview
Financial Overview Sean Hennessy Senior V.P. Finance & CFO Financial Community Presentation – Thursday, Financial Community May Presentation 12,23,2011 – May 2013
Slide 2: Consolidated Sales
Consolidated Sales $ Millions 9,534 10,000 8,766 9,000 7,810 8,005 7,980 7,776 8,000 7,191 7,094 7,000 6,114 5,408 6,000 5,000 4,000 3,000 2,000 1,000 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 % Change vs. Prior Year: 4.3 13.1 17.6 8.6 2.5 (0.3) (11.1) 9.6 12.7 8.8% Financial Community Pre
Slide 3: Consolidated Gross Profit
Consolidated Gross Profit 4,500 $ Gross Profit 4,222 % to Sales 3,598 3,499 3,745 4,000 3,413 3,481 3,263 3,500 3,080 2,701 3,000 2,308 2,220 2,339 2,455 2,500 2,000 46.0 45.1 45.4 44.9 1,500 44.3 44.8 44.3 43.8 44.2 43.7 43.8 1,000 42.8 42.7 500 0 * Excludes DOL settlement. Financial Community Pres
Slide 4: Selling, General & Administrative Expense
Selling, General & Administrative Expense $ Millions 3,500 $ SG&A 3,200 % to Sales 2,961 2,728 3,000 2,513 2,597 2,644 2,535 2,326 2,500 2,069 1,882 2,000 1,500 35.7 34.8 35.1 1,000 33.8 33.8 33.6 33.1 32.4 32.2 32.4 500 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012* * Excludes DOL settlement.
Slide 5: Operating Income
Operating Income* $ Millions 1,200 $ Operating Income % to Sales 1,002 1,000 903 947 855 754 753 784 728 800 573 632 600 11.6 12.5 400 10.6 10.3 10.5 10.7 10.3 9.7 9.9 8.9 200 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012** * Consolidated Gross Profit Minus SG&A Expenses ** Includes $80M charg
Slide 6: 2012 Reportable Segments
2012 Reportable Segments $ Millions Net External Segment Sales Profit ROS* Paint Stores Group 5,410 862 15.9% Consumer Group 1,322 216 16.4% Global Finishes Group 1,961 147 7.5% Latin America Coatings Group 836 81 9.7% Administrative 6 (399)** - * Based on net external sales only. ** Includes $80M c
Slide 7: Profit Before & After Tax
Profit Before & After Tax $ Millions Profit Before Tax 1,000.0 Profit After Tax 912.9 907.3 900.0 834.3 800.0 714.5 741.5 656.2 677.8 700.0 576.1 615.6 622.8 631.0 580.2 600.0 522.9 476.9 463.3 435.8 462.5 500.0 441.9 393.3 400.0 332.1 300.0 200.0 100.0 0.0 PBT % to Sales 9.7 9.5 9.1 10.7 11.4 9.0 8
Slide 8: Working Capital Ratio
Working Capital Ratio (Accounts Receivable + Inventory – Payables)/Sales 16.0% 13.8% 12.5% 12.7% 11.9% 11.0% 11.7% 11.2% 10.7% 12.0% 10.9% 10.8% 8.0% 4.0% 0.0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Financial Community Presentation – Thursday, Financial Community May Presentation 12,23,20
Slide 9: Working Capital & Days
Working Capital & Days $ Millions 2007 2008 2009 2010 2011 2012 Accounts Receivable $870.7 $770.0 $696.1 $916.7 $989.9 $1,032.5 Days 58 58 53 56 56 55 Inventories $887.5 $864.2 $738.5 $917.7 $926.8 $920.3 Days 96 104 96 94 96 91 Accounts Payable $740.8 $738.1 $674.7 $909.6 $965.1 $923.0 Days 65 68 6
Slide 10: Working Capital & Days
Working Capital & Days $ Millions 1Q 2012 1Q 2013 Accounts Receivable $1,135.2 $1,130.9 Days 52 53 Inventories $1,017.2 $1,013.7 Days 107 102 Accounts Payable $999.7 $1,023.3 Days 69 70 Net Working Capital $1,152.7 $1,121.3 % to Sales 12.7% 11.7% Financial Community Presentation – Thursday, Financia
Slide 11: Net Operating Cash
Net Operating Cash $ Millions 874.5 876.2 859.2 887.9 706.6 735.8 Uses of Cash 593.9 605.3 546.4 569.8 • Acquisitions 425.0 428.5 • Capital Expenditures • Buy Back Stock • Manage Debt • Pay Dividends 2007 2008 2009 2010 2011 2012 Net Operating Cash Net Operating Cash less Cap. Ex. & Dividends Financ
Slide 12: 2013 First Quarter Cash Flow
2013 First Quarter Cash Flow $ Millions 2012 2013 Net Operating Cash (154.8) (91.1) Capital Expenditures (32.8) (31.2) Dividends (40.4) (51.7) Free Cash Flow (228.0) (174.1) Financial Community Presentation – Thursday, Financial Community May Presentation 12,23,2011 – May 2013
Slide 13: Free Cash Flow
Free Cash Flow Four Years by Quarter 650 550 450 350 250 150 50 -50 -150 -250 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total Year 2009 -176 318 285 178 605 2010 -181 286 178 141 425 2011 -219 180 272 196 429 2012 -228 280 294 224 570 2013 -174 Financial Community Presentation – Thursday, Financial Community
Slide 14: Total Debt : EBITDA Ratio
Total Debt : EBITDA Ratio 84% 88% 98% 113% 103% 151% 1,705 1,800 1,600 1,400 1,148 965 1,129 1,200 946 924 1,000 834 965 1,045 993 800 834 818 600 400 200 0 2007 2008 2009 2010 2011 2012 EBITDA Total Debt Financial Community Presentation – Thursday, Financial Community May Presentation 12,23,2011 –
Slide 15: Debt Maturity Schedule
Debt Maturity Schedule December 31, 2012 Due Date $ Millions 3.125% Senior Notes 2014 $500.0 1.350% Senior Notes 2017 $700.0 7.375% Debentures 2027 $129.1 4.000% Senior Notes 2042 $300.0 Other $6.7* Total Long Term Debt $1,635.8 * Includes $3.5 million of 7.45% debentures - 2097 Financial Community
Slide 16: Interest Expense, Earnings Coverage and Debt to Capitalization
Interest Expense, Earnings Coverage and Debt to Capitalization Interest Exp. (Millions) Earnings Cov. (Times) 80.0 71.6 70.6 67.2 65.7 70.0 60.0 49.6 50.0 42.5 42.8 38.7 39.9 40.0 40.0 30.0 22.2 16.6x 18.4x 20.0 14.5x 15.5x 14.2x 13.4x 13.7x 11.9x 10.6x 10.0 0.0 2003 2004 2005 2006 2007 2008 2009 20
Slide 17: Rating Agencies
Rating Agencies Standard & Poor’s Rating Services December 2011 • Affirm Long-Term Rating at ‘A’ • Affirm Short-Term Rating at ‘A-1’ • Negative Outlook Moody’s Investors Services December 2012 • Affirm Long-Term Rating at ‘A-3’ • Affirm Short-Term Debt Rating at ‘P-2’ • Negative Outlook Fitch Rating
Slide 18: Treasury Stock Acquired
Treasury Stock Acquired 2003-2012 Average Price Avg. Shares Shares Per Share Total Dollars Outstanding (000) 2003 7,977,000 30.28 241,543,552 147,005 2004 6,600,000 40.00 263,980,168 144,736 2005 8,076,000 44.14 356,493,265 141,079 2006 5,600,000 54.49 305,158,657 137,342 2007 13,200,000 65.39 863,1
Slide 19: Dividends Per Share
Dividends Per Share $2.00 1979 – 2013 2.00 $1.80 1.56 $1.60 1.46 1.42 1.44 1.40 $1.40 1.26 $1.20 1.00 $1.00 .82 $0.80 .68 .58 .60 .62 $0.60 .54 .45 .48 .40 $0.40 .32 .35 .25 .28 .18 .19 .21 .22 $0.20 .12 .13 .14 .16 .05 .06 .08 .10 .01 .04 $0.00 2011 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988
Slide 20: Uses of Cash
Uses of Cash 2008-2012 ($ Millions) Total Capital Expenditures 644.6 Cash Dividends 798.5 Acquisitions 526.0 Treasury Stock Purchases 2,224.1 Highlighted Uses of Cash 4,193.2 Financial Community Presentation – Thursday, Financial Community May Presentation 12,23,2011 – May 2013
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