Ppg Industries, Inc. · NYSE:PPG
Ppg Industries — Merger or Acquisition (December 2012)
23 slides from Ppg Industries's merger presentation, Dec 14, 2012
Slide 1: PPG Acquires AkzoNobel's North American Architectural Coatings Business
PPG Acquires AkzoNobel’s North American Architectural Coatings Business Charles E. Bunch – Chairman of the Board and Chief Executive Officer David B. Navikas – Senior Vice President Finance and Chief Financial Officer J. Rich Alexander – Executive Vice President Global Architectural Coatings Informa
Slide 2: Forward Looking Statement
Forward Looking Statement 2 Statements contained herein relating to matters that are not historical facts are forward-looking statements reflecting PPG’s current view with respect to future events and financial performance. These matters within the meaning of Section 27A of the Securities Act of 193
Slide 3: Discussion Topics
Discussion Topics • Transaction Highlights • About the Acquired Business • Impact on PPG • Summary / Question and Answer Session 3
Slide 4: Transaction Highlights
Transaction Highlights • Overview: AkzoNobel’s North American Architectural Coatings Business • Price: $1.05 billion, including certain assumed liabilities PPG financing - existing PPG cash will be utilized • Potential Timeline: Approved by Board of Directors of both companies Regulatory r
Slide 5: Discussion Topics
Discussion Topics • Transaction Highlights • About the Acquired Business • Impact on PPG • Summary / Question and Answer Session 5
Slide 6: AkzoNobel's North American Architectural Coatings Business Overview
AkzoNobel’s North American Architectural Coatings Business Overview • Second largest architectural coatings business in N.A. (2011 revenue - $1.5B) Second largest in the United States Leading position in Canada One of the leaders in Puerto Rico and the Caribbean • Strong participation in all t
Slide 7: Excellent Portfolio of Brands in Each Channel
AkzoNobel’s North American Architectural Coatings Excellent Portfolio of Brands in Each Channel 7 Distribution Channel United States Canada Home Centers Independent Dealers Company Stores
Slide 8: Geography and Distribution Channel Sales Mix
Geography United States Canada Caribbean 8 Distribution Channel Company Stores Home Centers Independent Distribution Strong geographic positioning with excellent distribution channel mix 2011 Sales ($1.5B) AkzoNobel’s North American Architectural Coatings
Slide 9: Discussion Topics
Discussion Topics • Transaction Highlights • About the Acquired Business • Impact on PPG • Summary / Question and Answer Session 9
Slide 10: PPG Industries Sales Mix Impact
10 85% 8% 7% Pro Forma* 2011 - $14.7B Continues accelerated pace of business portfolio transformation 57% 9% 20% 14% 2006 - $11.0B 73% 8% 7% 12% Coatings Optical and Specialty Materials Glass Chemicals 2011 - $14.9B * Pro Forma 2011 includes acquisition of AkzoNobel’s North American architectural co
Slide 11: Improved Global Architectural Coatings Sales Mix
Improved Global Architectural Coatings Sales Mix North America Europe, Mid-East and Africa Other 11 More balanced geographically; additional exposure in early stages of U.S. construction recovery Current PPG Architectural Coatings Pro Forma* PPG Architectural Coatings All percentages are approximate
Slide 12: Expanded Customer Touch Points
12 Distribution Channel Current PPG Outlets Current Akzo Outlets Combined Outlets * Regional Ranking* Company Owned Stores 400 600 1,000 #2 National Home Centers 2,000 6,000 8,000 #2 Independent Distributors 2,000 4,000 6,000 #2 Total Customer Touch Points 4,400 10,600 15,000 #2 Maintenance / Repain
Slide 13: Increased U.S. Company Owned Store Network
Increased U.S. company owned store breadth/density with additional room to grow U.S. Company Owned Store Network 13 * Pro Forma includes acquisition of AkzoNobel’s North American architectural coatings business PPG Pro Forma* Architectural Coatings Business Profile
Slide 14: Well Established Store Network in Canada
Well established store network in Canada with excellent brand recognition Canadian Company Owned Store Network 14 * Pro Forma includes acquisition of AkzoNobel’s North American architectural coatings business PPG Pro Forma* Architectural Coatings Business Profile - Pushpins Dulux Stores
Slide 15: Discussion Topics
Discussion Topics • Transaction Highlights • About the Acquired Business • Impact on PPG • Summary / Question and Answer Session 15
Slide 16: Financial Summary
Financial Summary • Purchase Price - $1.05B $875 million in cash $175 million assumed liabilities (Canadian Pension Plans) No U.S. pension, post-retirement benefits (OPEB) or other non-commercial liabilities • Earnings Improvement ($160 million vs. current year results) $60 million – lower c
Slide 17: Transaction Summary
Question and Answer Session 17 Transaction Summary • Continues Accelerated Pace of PPG’s Transformation • Expands PPG’s North American Architectural Coatings Business Expands business in all three distribution channels Improved U.S. position (#2), leading (#1) positions in Canada and Caribbean •
Slide 18: Appendix
Appendix • Includes materials not commented on during prepared remarks 18
Slide 19: PPG Coatings End-Use Sales Mix
PPG Coatings End-Use Sales Mix 30% 70% 19 Special-Purpose Coatings: • Aerospace • Automotive OEM • Automotive Refinish • General Industrial • Protective & Marine • Packaging Architectural Coatings 40% 60% Current PPG Coatings Pro Forma* PPG Coatings All percentages are approximate * Pro Forma includ
Slide 20: PPG Coatings Global Competitive Position
#1 Market Position #2 Market Position Global Position (market size) Arch. (~$43B) Industrial (~$25B) Protective & Marine (~$12B) Refinish/ Collision (~$6B) Auto OEM (~$7B) Packaging (~$3B) Aerospace (~$2B) PPG* #1 AkzoNobel* #2 Sherwin- Williams* #3 DuPont #4 Valspar #5 BASF #6 #3 Market Position #4
Slide 21: PPG Coatings Global Position
#3 Global Position 40% 60% PPG Coatings Global Position 21 45% 25% 30% #1 Global Position #2 Global Position Current PPG Coatings Pro Forma* PPG Coatings Global #1 or #2 position in each coatings end-use market All percentages are approximate * Pro Forma includes acquisition of AkzoNobel’s North Ame
Slide 22: PPG Coatings Geographic Mix
PPG Coatings Geographic Mix 22 32% 34% 8% 21% 5% 43% 27% 6% 20% 4% Current PPG Coatings Pro Forma* PPG Coatings U.S. & Canada Western Europe Eastern Europe Asia Latin America 32% 34% 8% 21% 5% 43% 27% 6% 20% 4% Broad geographic sales mix remains, with additional exposure to U.S. & Canada All percent
Slide 23: Coatings Industry Participation
Coatings Industry Participation 23 Akzo- Nobel PPG Sherwin- Williams DuPont BASF Valspar RPM Nippon Kansai Jotun Others PPG Akzo- Nobel Sherwin- Williams DuPont BASF Valspar RPM Nippon Kansai Jotun Others *Pro Forma includes PPG’s acquisition of AkzoNobel’s North American architectural coatings busi
PPG Industries — Merger or Acquisition (December 2012) on 6ix