Sherwin-Williams Company (the) · NYSE:SHW
Sherwin-Williams Company (the) — The Sherwin-Williams Company — Investor Day (May 2015)
17 slides from Sherwin-Williams Company (the)'s investor day presentation, May 28, 2015
Slide 1: Company Overview
Company Overview John Morikis President & Chief Operating Officer
Slide 2: Financial Highlights (Non-GAAP)
Company Overview Financial Highlights (Non-GAAP) 20121 2013 2014 % Chg. Net Sales $9.53B $10.19B $11.13B +9.2% EBITDA $1,209M $1,336M $1,521M +13.8% Net Income $680M $753M $866M +15.0% % Sales 7.1% 7.4% 7.8% Earnings Per Share $6.49 $7.26 $8.78 +20.9% Net Operating Cash $937M $1,084M $1,082M -0.2% D
Slide 3: Financial Highlights 1Q-15 vs 1Q-14
Company Overview Financial Highlights 1Q-15 vs 1Q-14 1Q-14 1Q-15 % Chg. Net Sales $2.37B $2.45B +3.4% EBITDA $231.4M $255.0M +10.2% Net Income $115.5M $131.4M +13.8% % Sales 4.9% 5.4% Earnings Per Share $1.14 $1.38 +21.0% Financial Community Presentation – May 28, 2015
Slide 4: Reportable Segments
Reportable Segments The Americas Group Consumer Group Global Finishes Group Paint Stores Group Diversified Brands Protective & Marine Automotive Finishes Latin Americas Coatings Group Global Supply Chain Product Finishes Financial Community Presentation – May 28, 2015
Slide 5: Revenue & Profit by Segment - 2014
Company Overview Revenue & Profit by Segment - 2014 Segment Revenues: $11.13B 20% Segment Profit: $1.70B Average: 15.2% 15% Profit as a % of Sales Latin America Global Finishes 10% Paint Stores Consumer 5% 0% 20% 40% 60% 80% 100% Share of Revenue Financial Community Presentation – May 28, 2015 Note:
Slide 6: Competitive Strengths
Competitive Strengths • Strategic Global Expansion • Controlled Distribution • Pricing Discipline • Brand Power • Technology Leadership • Talent Supply Chain Financial Community Presentation – May 28, 2015
Slide 7: Global Expansion
Global Expansion PSG/Consumer - Architectural - P&M - OEM Finishes Global Finishes - Auto Finishes - Protective & Marine - OEM Finishes Latin America Coatings Group - Architectural - P&M - OEM Finishes - Auto Finishes Financial Community Presentation – May 28, 2015
Slide 8: Controlled Distribution
Controlled Distribution Controlled Distribution Accounts for ~75% of Consolidated Sales Financial Community Presentation – May 28, 2015
Slide 9: Controlled Distribution Advantages
Controlled Distribution Advantages • Direct Relationship with Customer / End-User • Control Over Brands, Pricing, Inventory, Staffing • Control Pace and Place of Growth Financial Community Presentation – May 28, 2015
Slide 10: Pricing Discipline
Pricing Discipline $ Gross Profit % of Sales 5,164 $5,164 Raw Material Index 5,000 4,617 $4,617 4,222 $4,222 4,500 3,598 3,745 $3,745 4,000 $3,598 3,499 $3,499 3,481 3,263 $3,481 $3,263 3,500 $ Millions 3,000 44.9 46.0 44.8 45.3 46.4 2,500 43.8 44.3 42.7 2,000 1.4 1,500 1.2 1,000 500 1.0 0 2007 2008
Slide 11: Brand Power
Brand Power Leading U.S. Brand Awareness #1 Architectural Paint Brand #1 Stain & Protective Finish Brand #1 Aerosol Paint Brand Awareness #1 Auto Specialty Paint Brand #1 Painting Tool Brand #1 Wood Sealer Brand Financial Community Presentation – May 28, 2015
Slide 12: Growing Global Brand Portfolio
Brand Power Growing Global Brand Portfolio Financial Community Presentation – May 28, 2015
Slide 13: Strategic Brand Development & Extension
Brand Power Strategic Brand Development & Extension Open New Distribution Channels Customer Relationship Branding Capitalize on Current Achieve Better Brand Alignment Distribution Platform in Latin America Financial Community Presentation – May 28, 2015
Slide 14: Leading Technology
Leading Technology Total Technical Expenditures $155 160 $144 $140 140 $130 120 $106 $101 $102 $102 $103 $95 $91 100 Millions 80 60 40 20 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 % of Sales 1.6 1.5 1.3 1.3 1.3 1.4 1.3 1.5 1.5 1.4 1.4 Financial Community Presentation – May 28, 2015
Slide 15: People Development
People Development Talent Supply Chain In 2014 We… • Hired More Than 1,500 Management Trainees Company Wide • Retained More Than 90% of Our Global Workforce • Filled More Than 93% of Openings Internally Financial Community Presentation – May 28, 2015
Slide 16: Keys to Success
Keys to Success • Focus on Market Share Growth and Profit Improvement in Core Businesses • Build Early Momentum Behind HGTV HOMETM by Sherwin-Williams at Lowe’s • Grow Distribution Organically and by Acquisition • Expand Product Offering Through R&D and Acquisitions • Accelerate Volume and Market Sh
Slide 17: Introductions...
Introductions… Jay Davisson Cheri Phyfer President President & GM, Diversified Brands The Americas Group Consumer Group Joel Baxter David Sewell President & GM, Global Supply Chain President Consumer Group Global Finishes Group Financial Community Presentation – May 28, 2015
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