PPG Industries, Inc. · NYSE:PPG
PPG Industries — Q3 2021 Earnings Presentation
16 slides from PPG Industries's earnings presentation, Oct 20, 2021
Slide 1: Third Quarter 2021 Financial Results
Third Quarter 2021 Financial Results Michael H. McGarry, Chairman and Chief Executive Officer Vincent J. Morales, Senior Vice President and Chief Financial Officer John Bruno, Vice President, Investor Relations All content within is proprietary to PPG. Information current as of October 20, 2021.
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 2021 Financial Highlights
Third Quarter 2021 Financial Highlights Net sales up ~19% Adjusted earnings per Cash deployment diluted share* of $1.69 and liquidity • Net sales totaled ~$4.4 billion; Y-O-Y • Worsening commodity raw material • Cash and short-term sales volumes decreased about 2% availability and automotive OEM chi
Slide 4: PPG Third Quarter Net Sales
PPG Third Quarter Net Sales ($ in millions) $4,500 +13% 4,372 $4,000 +6% -2% +2% 3,685 $3,500 $3,000 3Q'20 Price Volume Currency Acq./Div. 3Q'21 PPG Y-O-Y Net Sales Trend Selling Price Increase Progression (excluding currency impacts) vs Last Inflation Cycle 38.5% This Cycle Selling Price* Last Cycl
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 Above Market Above Market Above Market Automotive Refinish Above Market Above Market
Slide 6: PPG End-Use Market Volume Recovery
PPG End-Use Market Volume Recovery PPG Sales Volume Indexed to FY 2019 Commentary Automotive OEM, Refinish and Aerospace sales 105% ~60% of sales* volumes down mid-teens percent vs. 2019 100% • Global automotive industry builds • 2021 projected down 15% vs. 2019 and 95% down ~20% vs. peak production
Slide 7: Performance Coatings 3rd Quarter Highlights
Performance Coatings 3rd Quarter Highlights $MM (USD) 3Q21 3Q20 Chg % • Sales impacted by raw material shortages / logistics bottlenecks; impacting most businesses Net Sales 2,758 2,251 +507 +23% • Architectural businesses: softening DIY sales from elevated PY levels; volume similar to 2019 Segment
Slide 8: Industrial Coatings 3rd Quarter Highlights
Industrial Coatings 3rd Quarter Highlights $MM (USD) 3Q21 3Q20 Chg % • Sharp decrease in automotive OEM production levels during the quarter (chip issue) Net Sales 1,614 1,434 +180 +13% • Estimated unfavorable sales impact of ~$150 million Segment Income 140 253 -113 -45% • Raw material inflation co
Slide 9: ESG: PPG Energy Projects Continuing to Reduce Carbon Emissions
ESG: PPG Energy Projects Continuing to Reduce Carbon Emissions 2021 Chemical Week Sustainability Award 237,000 MT Finalist for “Best Carbon Management Initiative” PPG Greenhouse Gas 100% of electricity at San Juan del Rio Mexico Emissions reduction facility powered by solar photovoltaic energy since
Slide 10: Balance Sheet and Cash
Balance Sheet and Cash Third Quarter Cash and Debt Third Quarter 2021 Activity and Liquidity ($ in billions) $8 3Q 2021 approximate cash uses $7 6.8 • Capital spending ~$80 million $6 • Dividends ~$140 million 5.5 5.5 5.5 5.0 $5 4.7 3Q Liquidity 3.9 4.0 • ~$1.3 billion cash and short term investment
Slide 11: Fourth Quarter 2021 Financial Projections
Fourth Quarter 2021 Financial Projections ($ in millions unless otherwise stated) Category Projection Total company sales volumes (Y-O-Y) Lower 8% to 10% 4Q acquisition-related sales ~$330 (EBIT near breakeven due to seasonal impacts) 2021 full-year adjusted earnings-per-diluted share* $6.67 to $6.7
Slide 12: Additional materials and appendix
Additional materials and appendix
Slide 13: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation $ in millions, except EPS Total PPG Third Quarter 2021 Net Income EPS(a) Net Income from Continuing Operations, As Reported $ 344 $ 1.43 Acquisition-related amortization expense 35 0.15 Acquisition-related costs(b) 33 0.14 Impairment charge(c) 12 0.05 Business restructuri
Slide 14: Historical ROS Segment Margin and Adjusted EPS Excluding Amortization
Historical ROS* Segment Margin and Adjusted EPS Excluding Amortization $ in millions, except ROS % 2019 2020 2021 Performance Segment Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 ROS Margin, As Reported 14.1% 17.5% 16.4% 14.1% 15.6% 13.5% 17.5% 18.9% 13.8% 16.0% 16.6% 16.5% 14.8% Amortization 24 25 24 25
Slide 15: Historical Seasonality of New Acquisitions Compared to PPG
Historical Seasonality of New Acquisitions Compared to PPG Acquired Sales ($MM) Sales Seasonality 550 40.0% 500 35.0% 450 30.0% 400 25.0% 350 20.0% 300 15.0% 250 10.0% Q1 Q2 Q3 Q4 200 Q1 Q2 Q3 Q4 PPG Sales Curve Acquired Sales Curve Five recent acquisitions annualized sales of $1.7B 15 Not reflectiv
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