PPG Industries, Inc. · NYSE:PPG
PPG Industries — Q1 2022 Earnings Presentation
16 slides from PPG Industries's earnings presentation, Apr 21, 2022
Slide 1: First Quarter 2022 Financial Results
First Quarter 2022 Financial Results Michael H. McGarry, Chairman and CEO Tim M. Knavish, COO Vince J. Morales, CFO John Bruno, VP Investor Relations All content within is proprietary to PPG. Information current as of April 21, 2022.
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 2022 Financial Highlights
First Quarter 2022 Financial Highlights Net sales • Selling prices +10% (~12% 2-yr stack); acquisition-related sales +7% up 11% • Sales volumes decreased 3%; 5% below 1Q 2019 • Supply chain disruptions constrained sales by ~$180 million • Raw material cost inflation remains elevated: ~25% higher Y-O
Slide 4: PPG First Quarter Net Sales
PPG First Quarter Net Sales ($ in millions) $4,400 +10% -3% +7% 4,308 $4,200 -3% $4,000 3,881 $3,800 $3,600 1Q'21 Price Volume Currency Acquisitions 1Q'22 PPG Y-O-Y Net Sales Trend Selling Price Increase Progression (excluding currency impacts)* vs Last Inflation Cycle This Cycle Selling Price* 2 Ye
Slide 5: PPG Supply Chain and Manufacturing Disruption Trends
PPG Supply Chain and Manufacturing Disruption Trends Sequential Quarterly Trend Issue 3Q 21 4Q 21 1Q 22 2Q 22 Outlook Slightly Modest improvement, Raw material availability Severe shortages Severe shortages improving but not to normal levels Minimal improvement, Logistics (truck availability) Some s
Slide 6: Performance Coatings 1st Quarter Highlights
Performance Coatings 1st Quarter Highlights $MM (USD) 1Q22 1Q21 Chg % • Selling price increases of 8%; higher than 4Q 2021 Net Sales 2,570 2,319 +251 +11% • Sequential improvement in raw material availability; logistics bottlenecks continue Segment Income 319 386 -67 -17% • Prior year included eleva
Slide 7: PPG / The Home Depot PRO Program
™ Program PPG / The Home Depot® partnership enables opportunity for above industry growth in PRO category RIGHT PRODUCT. RIGHT PLACE. RIGHT TIME. Full suite of products for all professionals Expanded distribution + PROSight digital app Rigorous service level agreements (SLAs) Increasing distribution
Slide 8: Industrial Coatings 1st Quarter Highlights
Industrial Coatings 1st Quarter Highlights $MM (USD) 1Q22 1Q21 Chg % • Strong progress implementing selling prices increases – up nearly 12% YOY Net Sales 1,738 1,562 +176 +11% • Segment margins improved sequentially Segment Income 140 245 -105 -43% • Automotive OEM production levels remain well bel
Slide 9: Balance Sheet and Cash
Balance Sheet and Cash First Quarter Cash and Debt ($ in billions) First Quarter 2022 Activity and Liquidity 1Q 2022 approximate cash uses $8 7.2 • Working capital – securing inputs for seasonally higher second quarter $7 • Capital spending: $190 million; $130 million represents net cash paid 6.2 6.
Slide 10: Second Quarter 2022 Financial Projections
Second Quarter 2022 Financial Projections ($ in millions unless otherwise stated) Category Projection Total company sales volumes (YOY) Lower by a low-to-mid-single-digit percentage *2Q adjusted earnings-per-diluted share $1.60 - $1.90 2Q acquisition-related sales ~$200; below segment margins Raw ma
Slide 11: Second Quarter Adjusted EPS Guidance – Key Uncertainties
Second Quarter Adjusted EPS Guidance – Key Uncertainties Current uncertainties that will impact 2Q earnings COVID disruptions in Asia EPS Range • COVID-19 restrictions in China $1.60 • Demand trends in Europe To • Crude oil price and feedstock pricing $1.90 • Raw material availability and global log
Slide 12: ESG Update: PPG Published Inaugural Diversity, Equity & Inclusion Report
ESG Update: PPG Published Inaugural Diversity, Equity & Inclusion (DE&I) Report Key Goals & Progress Achieve 34% to 36% representation Increase headcount of Black, Latinx • Conclusion Nexttotal Achieve Steps global(2022) employee and Asian employees by 45% to 55% of non-frontline, global female acro
Slide 13: Additional materials and appendix
Additional materials and appendix
Slide 14: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation $ in millions, except EPS Total PPG First Quarter 2022 Net Income EPS(a) Net Income from Continuing Operations, As Reported $ 18 $ 0.08 Impairment and other related charges(b) 263 1.10 Acquisition-related amortization expense 33 0.14 Business restructuring-related costs,
Slide 15: 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 Performance Segment 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% Amortization 26 21 22 23 92 29 30 33 33 125
Slide 16: 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 16