PPG Industries, Inc. · NYSE:PPG
PPG Industries — Investor Presentation (May 2025)
50 slides from PPG Industries's investor presentation, May 2025
Slide 1: PPG Investor Overview
PPG Investor Overview May 2025
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: Content Overview
Content Overview PPG Overview and Competitive Advantages Innovation, Sustainability and Growth Opportunities PPG Segment and Business Unit Highlights Appendix 3
Slide 4: PPG: Industry Leading Global Coatings Company
PPG: Industry Leading Global Coatings Company 1883 Founded 2024 Net Sales: $15.8B ~25% ~35% ~40% 70+ Countries Industrial Global Architectural Performance Coatings Coatings Coatings ~46,000 Automotive OEM Architectural EMEA Aerospace Employees Architectural 18.1% LATAM & AP Automotive Refinish Indus
Slide 5: PPG's Enterprise Growth Strategy
PPG’s Enterprise Growth Strategy Driving superior performance through high-margin business growth and strong cash flow Actions Taken to Deliver Customer Success and Shareholder Value Aggressive 2025 Execution ✓ Portfolio pruning – completed 2024 ✓ Re-segment portfolio to provide increased 0 accounta
Slide 6: Tariff Impact and Mitigation
Tariff Impact and Mitigation PPG well positioned to mitigate impact of tariffs Impacts Offsets PPG Differentiators Mexico project delays Excess chemical supply PPG impact <1% of company net sales Diverse portfolio Lower oil price Regionally balanced Leading positions in all verticals 2% Lower auto i
Slide 7: PPG: A Compelling Long-Term Investment
PPG: A Compelling Long-Term Investment Diversified Global Portfolio Leading positions in all coatings verticals Strong Brands, Technologies and Services Organic and inorganic growth opportunities Asset-Light, Highly Flexible Cost Structure Accelerating margin expansion Strong Balance Sheet and Cash
Slide 8: PPG Well Situated for Volume Recovery
PPG Well Situated for Volume Recovery Market Segments Regions PPG #1 #2 #3+ Position Aero Auto US Traffic Auto General Packaging Architectural Protective & U.S. & EMEA LA AP OEM Solutions Refinish Industrial Marine Canada Addressable Market Size $5B $16B $1B $6B $41B $3B $70B $22B $18B $48B $14B $85
Slide 9: PPG is Positioned Well in Global End-use Markets
PPG is Positioned Well in Global End-use Markets Position by Coatings Vertical Global Architectural Protective Traffic Industrial Auto OEM Auto Refinish Packaging Aerospace Position EMEA LA AP & Marine Solutions PPG #2 #2 #1 #3+ #2 #3+ #1 #2 #2 #1 #1 Sherwin- #1 Williams AkzoNobel #3 Nippon #4 RPM #
Slide 10: Macro Trends Support PPG's Long-Term Growth
Macro Trends Support PPG’s Long-Term Growth Automotive OEM Light Vehicle Builds Industrial Production Passenger Aircraft Delivery Indexed to 2017 Global Peak % Change YOY # of Aircraft 2016-2019 Avg. Stabilizing production Global industrial production to PPG is well positioned for multi- environment
Slide 11: Strong and Growing Presence in Emerging Regions: Latin America
Strong and Growing Presence in Emerging Regions Latin America Industry CAGR 2024-2027 #1 ~1600 Architectural Coatings +MSD Mexican Paint New Stores Auto OEM Coatings +MSD Company Since 2014 Acquisition Industrial Coatings +MSD 6% 4% Protective & Marine Coatings +MSD Organic sales1 Mexico Industry CA
Slide 12: Strong and Growing Presence in Emerging Regions: Asia Pacific
Strong and Growing Presence in Emerging Regions Asia Pacific Industry CAGR 2024-2027 PPG Position in Asia Pacific1 Auto OEM Coatings +MSD Automotive OEM #1 General Industrial #2 Refinish Coatings +MSD Packaging #1 Auto Refinish #1 Packaging Coatings +MSD Aerospace #1 Protective/Marine #3 Industrial
Slide 13: Mobility: BEV Growth at ~25% CAGR
Mobility: Traditional External and Internal Coatings BEV Growth at ~$120/Vehicle ~25% CAGR P R E S E N T Provides Additional 2024 BEV Electric Vehicle Coatings TAM Battery Pack Opportunities ~$3B ~$70/Vehicle 2024-2027 F U T U R E Other Electrification CAGR: ~25% Components ~$80-170/Vehicle Note: A
Slide 14: PPG Expects to Drive Further Margin Expansion
PPG Expects to Drive Further Margin Expansion Actions in place to accelerate segment margin expansion and achieve 8-12% 4-yr EPS CAGR Drivers 1 Price / cost normalization 2 Volume growth at high leverage with no additional fixed cost 3 Operational improvement of $100-150MM (2025-2026) to offset infl
Slide 15: Strong Balance Sheet and Cash
Strong Balance Sheet and Cash Increased cash return to shareholders 2024 Activity Cash Deployed to Shareholders ($ in millions) $450 $400 $1.4B $1.4B $350 Cash Balance Operating Cash Flow December 31, 2024 $300 $250 $200 $150 $100 $4.5B $1.4B $50 Net Debt Dividends and Share $0 December 31, 2024 Rep
Slide 16: Balanced Cash Deployment
Balanced Cash Deployment Legacy of consistent, accretive and prudent cash deployment Adjusted Return on Capital Cash Deployed $5B $10B 15.0% 10% 20% Return to 14.3% Shareholders 30% 60% 40% 40% 5% 35% Grow the Business 35% 40% 60% 25% 2023 2024 3 Years 5 Years 2022-2024 2020-2024 Capital Spending Ac
Slide 17: Returning Cash to Shareholders
Returning Cash to Shareholders Long Heritage of Dividend Growth PPG Annual Dividend ($ per share) $2.66 $2.54 $2.42 $1.98 $2.10 $2.26 53 Years of Consecutive Annual Dividend Increases 2019 2020 2021 2022 2023 2024 PPG Share Repurchases ($ in millions) 125 Years of Uninterrupted Annual Dividends $750
Slide 18: Growing the Business
Growing the Business Capital Spending as Percentage of Net Sales Near-Term Capital Investment Last 5 years Average = 3.0% 2024 • Maintenance projects which were delayed in 2020-2021 4.7%-5.0% 4.6% 2025 • Expansion for volume growth 3.1% 3.2% • Mexico 2.8% 2.7% • Automotive OEM 2.2% 2.2% • Aerospace
Slide 19: PPG Debt Maturity Profile – March 2025
PPG Debt Maturity Profile – March 2025 $ in millions $2,000 2.7% $1,750 Weighted Average Cost of Debt $1,500 Mar 31, 2025 1,136 $1,250 $1,000 $2.3B Available Revolver $750 844 Capacity Through 2028, Currently Undrawn $500 974 974 800 700 649 $250 $0 300 300 54 176 250 130 1.9x 2025 2026 2027 2028 20
Slide 20: PPG Sustainability Strategy
PPG Sustainability Strategy Sustainability is integral to how we innovate, operate and go to market and core to the value we provide to our customers and communities. Value Creation We promote responsible business practices that deliver sustainable, long-term value, strong returns and annual dividen
Slide 21: In 2024, PPG Continued Making Sustainability Progress
In 2024, PPG Continued Making Sustainability Progress 6% 28% Reduction in Water Scope 3 GHG Intensity at Priority Sites emissions reduction in Water Scarce Communities 18% 41% Reduction in Sales from Sustainably Scope 1 and 2 Advantaged Products GHG Emissions 98% 48% Key Suppliers Assessed to Proces
Slide 22: PPG's Ambitious 2030 Sustainability Targets
PPG’s Ambitious 2030 Sustainability Targets Validated SBTs 50% 30% 15% 25% 100% reduction in Scope 1 reduction in Scope 3 reduction in water of process waste to reuse, and 2 GHG emissions GHG emissions intensity at priority sites reduction in waste intensity recycle or recovery 50% $15MM 100% 100% 5
Slide 23: Governance: Framework for Board Oversight of Sustainability
Governance: Framework for Board Oversight of Sustainability Environmental Social Governance Sustainability and Nominating and Innovation Committee PPG Board Governance Committee of Directors Employee health and safety Corporate governance oversight Environmental programs Recommending new directors a
Slide 24: Revised PPG Business Segmentation
Revised PPG Business Segmentation Higher margin and higher growth portfolio supported by differentiated products and strong brands Global Architectural Coatings Segment EBITDA Margin Strong #1 or #2 in >15 countries 24% ~25% Architectural EMEA Organic sales 23% Performance Coatings Architectural 2 Y
Slide 25: Segment Drivers
Segment Drivers Growth enablers 2024 Segment EBITDA $3.2B Global Architectural Coatings • Leading and trusted brands with world-class distribution networks • Strong #1 or #2 in >15 countries ~25% • Advanced water-based product portfolio and low-carbon product offerings • Excellent digital solutions
Slide 26: Global Architectural Coatings Segment
Global Architectural Coatings Segment • Leading and trusted brands with world-class distribution networks • Strong #1 or #2 in >15 countries • Advanced water-based product portfolio with low-carbon offerings • Excellent digital solutions and customer service • Consistent cash generation with majorit
Slide 27: Architectural Coatings
Architectural Coatings Industry Est. Size1 2024 Global Coatings ~$70B Industry Trends PPG Competitive Advantages Growth Drivers Increasing adoption of digital Excellent digital solutions and Building omnichannel consumer journey and tools / e-commerce customer service digitizing color inspiration Le
Slide 28: Architectural Coatings is Diversified with Global Positions
Architectural Coatings is Diversified with Global Positions PPG’s local brands provide opportunities for growth 2024 Architectural Strength / Focus Net Sales • Strong local brands 60% • Leading positions in many countries • Best-in-class sustainability offerings EMEA • Leading brand recognition 34%
Slide 29: Performance Coatings Segment
Performance Coatings Segment • Highly-specified and sustainably-advantaged products and services • Significant value proposition due to customer productivity improvement • Digital technology offerings driving increased customer connectivity • Distribution network to rapidly supply global and local m
Slide 30: Aerospace Coatings
Aerospace Coatings Transparencies Industry Est. Size1 2024 PPG Sales Mix 2024 Global Coatings OEM Military Sealants Engineered materials ~$5B Aftermarket Commercial Industry Trends PPG Competitive Advantages Growth Drivers Recovery of international travel Advantaged technology and global footprint I
Slide 31: Automotive Refinish Coatings
Automotive Refinish Coatings Industry Est. Size1 2024 Global Liquid Collision Coatings ~$6B Industry Trends PPG Competitive Advantages Growth Drivers PPG’s Platinum program, digital and service Premium growth through recent Body shop efficiency offerings such as MoonWalkTM and LINQTM MSO wins Leadin
Slide 32: Protective & Marine Coatings
Protective & Marine Coatings Industry Est. Size1 2024 PPG Sales Mix 2024 Global Coatings Marine Coatings ~$22B Protective Coatings Industry Trends PPG Competitive Advantages Growth Drivers Significant infrastructure Share gains in the Middle Global footprint with a comprehensive portfolio investment
Slide 33: Traffic Solutions
Traffic Solutions Industry Est. Size1 2024 Americas Coatings Traffic Paint Thermoplastic Markers ~$1B Preformed Thermoplastic Industry Trends PPG Competitive Advantages Growth Drivers Safety and improved visibility for R&D expertise, broad product portfolio Raised pavement markers and differentiated
Slide 34: Industrial Coatings Segment
Industrial Coatings Segment • Technology-advantaged, globally-specified products for B2B customers • Paint integrated within customer’s operations driving productivity • Excellent technical and field service supporting bespoke customer needs • Sustainable products and applications supporting custome
Slide 35: Automotive OEM Coatings
Automotive OEM Coatings Industry Est. Size1 2024 Global Coatings ~$16B Industry Trends PPG Competitive Advantages Growth Drivers Transition to electric Broad battery pack coatings portfolio to improve vehicles / mobility safety, durability, and thermal management Gaining share on new models Automati
Slide 36: Industrial Coatings
Industrial Coatings Industry Est. Size1 2024 Global Coatings ~$41B Industry Trends PPG Competitive Advantages Growth Drivers Strong organization driving customer Improved coating performance Differentiated service levels productivity through superior service Sustainable coatings Global leader in wat
Slide 37: Packaging Coatings
Packaging Coatings Industry Est. Size1 2024 Global Coatings ~$3B Industry Trends PPG Competitive Advantages Growth Drivers Regional regulation of coatings’ Strong R&D organization; PPG products that Growing share in food packaging composition exceed international food contact regulations Sustainabil
Slide 38: Specialty Products
Specialty Products Industry Trends PPG Competitive Advantages Growth Drivers LCD to OLED shift in mobile, TV, Scale-up and manufacturing of Growth in emitter demand for existing and tablets/laptops and automotive high-purity OLED materials new applications + phosphorescent blue Increasing requiremen
Slide 39: Appendix
Appendix
Slide 40: 2024 Net Sales Bridge and Currency Exposure
2024 Net Sales Bridge and 2024 Net Sales Currency Exposure 14% LA 34% 18% US & AP Canada Net Sales $16.2B 0% 34% $15.8B EMEA -1% -1% PPG Currency Exposure % of 2024 Net Sales U.S. Dollar ~30% Euro ~20% Chinese Yuan ~10% Mexican Peso ~10% British Pound ~5% 2023 Price Volume Currency and 2024 Divestit
Slide 41: Coatings Industry - Adjusted EBITDA Margin
Coatings Industry - Adjusted EBITDA Margin PPG’s improved business portfolio results in step change in margin +230 bps 20.1% 19.4% 20.0% 18.1% 18.0% 15.8% 16.0% 15.2% 13.8% 14.0% 12.0% 10.0% Competitor A Competitor B PPG PPG Competitor C Competitor D 2024 2024 2024 2023 2024 2024 as Previously Repor
Slide 42: PPG SG&A % of Net Sales Below Peer Average
PPG SG&A % of Net Sales Below Peer Average Cost savings and focused initiatives will support improved operating leverage as volumes recover SG&A % of Net Sales 35% Key initiatives • Execute restructuring plans 30% • Achieve acquisition synergies • Reduce global cost structure with focus on 25% reduc
Slide 43: Raw Material Coatings Cost Comparison
Raw Material Coatings Cost Comparison Spend averages about 65% of cost of goods sold Global Architectural Performance Coatings Industrial Coatings Coatings Sold in 1-gallon Sold in paint cans and 2,000-liter 5-gallon buckets totes Titanium Dioxide Resins and Latex Solvents and Pigments Additives Pac
Slide 44: Return on Capital
Return on Capital $ in millions 2022 2023 2024 Net Income $1,026 $1,270 $1,116 Interest expense $167 $247 $241 Adjusted effective tax rate, continuing operations 22.1% 22.2% 22.9% Interest expense after tax $130 $192 $186 Acquisition-related amortization expense $110 $115 $100 Business restructuring
Slide 45: Segment Margin Reconciliation
Segment Margin Reconciliation $ in millions, except margin % 2022 2023 2024 Global Architectural Coatings FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Segment Margin, As Reported 14.5% 16.4% 17.4% 18.9% 13.9% 16.7% 17.2% 19.7% 18.2% 13.4% 17.3% Net Sales $3,852 $975 $1,066 $1,037 $943 $4,021 $966 $1,070 $1,004
Slide 46: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $ in millions Full Year 2024 Net Income from Continuing Operations, As Reported $ 1,344 Interest expense, net of interest income 64 Income tax expense 475 Depreciation 360 Amortization 132 Net income attributable to noncontrolling interests 33 EBITDA $2,408 Business re
Slide 47: Adjusted EBITDA Reconciliation – As Presented in 2023 Form 10-K
Adjusted EBITDA Reconciliation – As Presented in 2023 Form 10-K $ in millions Full Year As presented in Form 10-K filed on February 15, 2024 2023 Net Income from Continuing Operations, As Reported $ 1,270 Interest expense, net of interest income 107 Income tax expense 439 Depreciation 391 Amortizati
Slide 48: Adjusted EBITDA Reconciliation LTM
Adjusted EBITDA Reconciliation LTM $ in millions, except margin % 2024 2025 Q1 Q2 Q3 Q4 FY Q1 Reported net income from continuing operations $ 405 $ 493 $444 $2 $1,344 $ 375 Interest expense, net of interest income 13 17 19 15 64 13 Income tax expense 128 149 128 70 475 122 Depreciation 95 89 89 87
Slide 49: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $ in millions, except Akzo € in millions AXTA SHW PPG PPG RPM AKZA 2023 as 2024 2024 2024 Previously Fiscal 2024 2024 Reported Reported net income from continuing operations $391 $2,681 $1,344 $1,270 $589 € 592 Interest expense, net of interest income and non-controlli
Slide 50: We protect and beautify the world
We protect and beautify the world®