Ppg Industries, Inc. · NYSE:PPG
Ppg Industries — Q1 2018 Earnings Presentation
12 slides from Ppg Industries's earnings presentation, Apr 19, 2018
Slide 1: PPG – First Quarter 2018 Financial Results
PPG – First Quarter 2018 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 Information current as of April 19, 2018
Slide 2: Forward Looking Statements
Forward Looking Statements The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of the Company. This presentation contains forward-looking statements that reflect the Company’s current views with respect to future events and
Slide 3: First Quarter 2018 Financial Highlights
First Quarter 2018 Financial Highlights Net sales up nearly 9 percent; local currency sales increased about 3 percent • Sales volumes increased modestly year-over-year; growth in aerospace, automotive refinish, general industrial, and packaging coatings sales volume growth was offset by fewer shippi
Slide 4: PPG First Quarter Net Sales
PPG First Quarter Net Sales* $4,000 +5.7% +0.8% 3,786 $3,750 +0.5% 3,486 +1.6% $3,500 $3,250 ($ in millions) 1Q'17 Price Volume Currency Acq./Div. 1Q'18 PPG Y-O-Y Volume Trends** Foreign Currency Rate Trends vs. U.S. Dollar (excl. price, currency and acquisition/divestiture impacts) (indexed to Q4’1
Slide 5: First Quarter Net Sales Volumes
First Quarter Net Sales Volumes PPG volume performance by major coatings vertical vs. prior year and end-use market demand U.S. & Canada Europe / Middle Asia-Pacific Latin America East / Africa Aerospace Above Market Below Market Above Market At Market Automotive Refinish At Market Above Market At M
Slide 6: PPG Record First Quarter Adjusted Earnings Per Diluted Share
PPG Record First Quarter Adjusted Earnings Per Diluted Share* First Quarter Comments $1.50 ✓ Reporting segment updates included on 1.39 1.33 succeeding slides. Aggregate items embedded in segment reviews: • Selling prices increased 1.6% Y-O-Y 1.23 • Raw material inflation was elevated at a 1.10 mid-
Slide 7: Performance Coatings
Performance Coatings PPG-Supplied Waterborne Refinish Paint Shops $MM (USD) Technology and Sustainability 1Q17 1Q18 Chg % Net Sales 2,017 2,165 148 7% Income 285 285 0 0% Margin % 14.1% 13.2% -- -- CAGR = 12% Select Net Sales Detail Total Volume Currency 1Q Y-O-Y Change +7% -- +6% 2008 2009 2010 201
Slide 8: Industrial Coatings
Industrial Coatings 7.5 7.0 Regional Auto Production Forecast (million units) $MM (USD) 1Q17 1Q18 Chg % 6.5 6.0 Net Sales 1,469 1,621 152 +10% 5.5 Income 276 240 -36 -13% 5.0 4.5 Margin % 18.8% 14.8% -- -- 4.0 3.5 Select Net Sales Detail Total Volume Currency N. America EMEA China Q1'16 Q1'17 Q1'18
Slide 9: Balance Sheet and Cash
Balance Sheet and Cash First Quarter Cash and Short Term First Quarter 2018 Activity Investments ($MM) $1,500 ✓ 1Q 2018 approximate cash uses: $1,389 $1,404 • Capital Spending $75MM • Dividends $110MM $1,170 • Share Repurchases $600MM $1,030 $1,000 ✓ Strong cash position remains; continued focus on
Slide 10: Additional Materials and Appendix
Additional Materials and Appendix Thank you for your interest in PPG Industries, Inc. 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
Slide 11: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation 1st Quarter Reporting Period Continuing Operations Discontinued Operations Total PPG Net Income EPS Net Income EPS Net Income EPS First Quarter 2018 Net Income Attributable to PPG as Reported $ 347 $ 1.38 $ 6 $ 0.02 $ 353 $ 1.40 Costs related to a customer assortment chan
Slide 12: Regulation G Reconciliation
Regulation G Reconciliation Three Months Ended March 31, 2018 Income Before Income Taxes Tax Expense Effective Tax Rate Effective tax rate, continuing operations $462 $109 23.5% Costs related to a customer assortment change 4 1 24.3% Adjusted effective tax rate, continuing operations $466 $110 23.5%