PPG Industries, Inc. · NYSE:PPG
PPG Industries — Q3 2020 Earnings Presentation
13 slides from PPG Industries's earnings presentation, Oct 19, 2020
Slide 1: Third Quarter 2020 Financial Results
Third Quarter 2020 Financial Results Michael H. McGarry, Chairman and Chief Executive Officer Vincent J. Morales, Senior Vice President and Chief Financial Officer John Bruno, Director, Investor Relations All content within is proprietary to PPG. Information current as of October 19, 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: Third Quarter 2020 Financial Highlights
Third Quarter 2020 Financial Highlights Net sales down ~4% Record adjusted earnings per Cash deployment diluted share* of $1.93 and liquidity • Net sales totaled ~$3.7 billion; sales • Adjusted EPS was higher by about • Cash and short-term volumes declined versus the prior 16% versus prior year, pri
Slide 4: PPG Third Quarter Net Sales
PPG Third Quarter Net Sales ($ in millions) $4,000 3,826 +1.3% -5.4% +0.0% +0.5% 3,685 $3,500 $3,000 3Q'19 Price Volume Currency Acq./Div. 3Q'20 PPG Y-O-Y Net Sales Trend Foreign Currency Rate Trends vs. U.S. Dollar (excluding currency impacts) (indexed to Q3’18) 4.8% 2.9% 1.6% 1.9% 10% 2.2% 1.7% 0%
Slide 5: Third Quarter Sales Volumes
Third Quarter Sales Volumes PPG volume performance by major coatings vertical vs. prior year and end-use market demand U.S. and Canada Europe / Middle East / Africa Asia-Pacific Latin America Aerospace Above Market At Market At Market At Market Automotive Refinish Above Market At Market At Market At
Slide 6: 2020 Net Sales Trend by Reporting Segment and Major Regions
2020 Net Sales Trend by Reporting Segment and Major Regions Reporting Segment Sales Trends* Regional Sales Trends* 20% 20% 0% 0% -20% -20% -40% -40% -60% -60% Performance Coatings Industrial Coatings Total PPG USCA EMEA AP LA China Asia-Pacific (AP) includes China. China also displayed separately. I
Slide 7: Performance Coatings
Performance Coatings $MM (USD) 3Q20 3Q19 Chg % Select Net Sales Detail Volume Currency Acquisition Net Sales 2,251 2,313 -62 -3% 3Q Y-O-Y Change -5% 0% +1% Income 426 380 +46 +12% Margin % 18.9% 16.4% +2.5% -- Business 3rd Quarter Results 4th Quarter Outlook Operating margins exceeded prior year d
Slide 8: Industrial Coatings
Industrial Coatings Regional Auto Production Forecast (million units)* 7.0 $MM (USD) 3Q20 3Q19 Chg % 6.0 5.0 Net Sales 1,434 1,513 -79 -5% 4.0 Income 253 206 +47 +23% 3.0 Margin % 17.6% 13.6% +4.0% -- 2.0 Select Net Sales Detail Volume FX Acquisition 1.0 China N. America EMEA 3Q Y-O-Y Change -5% 0%
Slide 9: Balance Sheet and Cash
Balance Sheet and Cash Third Quarter Cash and Debt ($ in billions) Third Quarter 2020 Activity and Liquidity $3 3Q 2020 approximate cash uses 2.3 2.0 $2 1.4 • Capital spending $80 million 0.9 1.1 • Dividends $130 million $1 Liquidity $0 • $2.1 billion cash and short term investments at end of Septem
Slide 10: Fourth Quarter 2020 Financial Projections
Fourth Quarter 2020 Financial Projections ($ in millions unless otherwise stated) Category Projection Total company sales volumes (Y-O-Y) Down low- to mid-single-digit percentage 4Q adjusted earnings-per-diluted share $1.50 - $1.57 Raw material costs (Q-O-Q) Slightly higher Unfavorable foreign curre
Slide 11: Additional materials and appendix
Additional materials and appendix
Slide 12: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation $ in millions, except EPS Total PPG Third Quarter 2020 Net Income EPS(a) Net Income from Continuing Operations, As Reported $ 442 $ 1.86 Business restructuring-related costs, net(b) 10 0.04 Expenses incurred due to a natural disaster(c) 6 0.03 Adjusted Net Income Attribut
Slide 13: 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 13