Sherwin-Williams Company (the) · NYSE:SHW
Sherwin-Williams Company (the) — The Sherwin-Williams Company — Investor Day (May 2013)
20 slides from Sherwin-Williams Company (the)'s investor day presentation, May 2013
Slide 1: Company Overview
Company Overview John Morikis President & COO Financial Community Presentation – Thursday, Financial Community May Presentation 12,23,2011 – May 2013
Slide 2: Financial Highlights 2012 vs 2011
Company Overview Financial Highlights 2012 2011 % Chg. Net Sales $9.53M $8.77M 8.8% EBITDA $1,129M $965M 17.0% Income $631M2 $442M1 42.8% % Sales 6.6% 5.0% Earnings Per Share $6.022 $4.141 45.4% Net Operating Cash $888M $736M1 20.6% Dividend Per Share $1.56 $1.46 Return on Assets 10.1% 8.4% Return o
Slide 3: Financial Highlights 1Q-13 vs 1Q-12
Company Overview Financial Highlights 1Q-13 vs 1Q-12 1Q-13 1Q-12 % Chg. Net Sales $2.17M $2.14M 1.4% EBITDA $215M $197M 9.1% Income $116M $100M 16.0% % Sales 5.4% 4.7% Earnings Per Share $1.11 $.95 16.8% Financial Community Presentation – Thursday, Financial Community May Presentation 12,23,2011 – M
Slide 4: Reportable Segments
Reportable Segments Paint Stores Group Consumer Group Diversified Brands Paint & Coatings Latin America Coatings Group Global Finishes Group Automotive Finishes Protective & Marine Product Finishes Financial Community Presentation – Thursday, Financial Community May Presentation 12,23,2011 – May 201
Slide 5: Revenue & Profit by Segment - 2012
Company Overview Revenue & Profit by Segment - 2012 Global Paint Stores Sales: $1.96 Billion Sales: $5.41 Billion Profit: $147.2 Million Profit: $861.8 Million Profit %: 7.5 Profit %: 15.9 Sales: $1.32 Billion Profit: $216.4 Million Profit %: 16.4 Sales: $836 Million Profit: $81.2 Million Profit %:
Slide 6: Key Points
Key Points • Global Expansion • Controlled Distribution • Pricing Discipline • Brand Power • Leading Technology • Talent Supply Chain • Acquisitions Financial Community Presentation – Thursday, Financial Community May Presentation 12,23,2011 – May 2013
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 – Thursday, Financial Community May Presentation
Slide 8: Controlled Distribution
Controlled Distribution Controlled Distribution Accounts for ~75% of Consolidated Sales Financial Community Presentation – Thursday, Financial Community May Presentation 12,23,2011 – May 2013
Slide 9: Controlled Distribution
Controlled Distribution Advantages • Direct Relationship with Customer / End-User • Control Over Brands, Pricing, Inventory, Staffing • Control Pace and Place of Growth Financial Community Presentation – Thursday, Financial Community May Presentation 12,23,2011 – May 2013
Slide 10: Pricing Discipline
Pricing Discipline $ Gross Profit % of Sales Raw Material Index 4,222 3,745 4,000 3,598 3,413 3,499 3,481 3,080 3,263 3,500 3,000 $ Millions 2,500 46.0 1.6 2,000 44.9 44.8 44.3 42.8 43.7 43.8 42.7 1,500 1.4 1,000 1.2 500 1.0 0 2005 2006 2007 2008 2009 2010 2011 2012 Financial Community Presentation
Slide 11: Brand Power
Brand Power Leading U.S. Brand Awareness #1 Architectural Paint Brand #1 Stain & Protective Finish Brand #1 Aerosol Paint Brand #1 Auto Specialty Paint Brand #1 Painting Tool Brand #1 Wood Sealer Brand Financial Community Presentation – Thursday, Financial Community May Presentation 12,23,2011 – May
Slide 12: Brand Power
Brand Power Growing Global Brand Portfolio Financial Community Presentation – Thursday, Financial Community May Presentation 12,23,2011 – May 2013
Slide 13: Leading Technology
Leading Technology Total Technical Expenditures 140.0 130.0 140 130 120 101.3 102.4 105.9 101.8 102.7 110 95.4 88.7 88.3 91.3 100 90 80 $ Millions 70 60 50 40 30 20 10 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 % of Sales 1.7 1.7 1.6 1.5 1.3 1.3 1.3 1.4 1.3 1.5 1.5 Financial Community
Slide 14: People Development
People Development “Human Resource Supply Chain” In 2012 we… • Hired 1,087 New MTPs • Retained More Than 92% of our Global Workforce • Filled More Than 93% of Openings Internally Financial Community Presentation – Thursday, Financial Community May Presentation 12,23,2011 – May 2013
Slide 15: Acquisitions
Acquisitions • Acquisition Announced November 12, 2012 • Perfect Fit: Strategically, Culturally and Operationally Financial Community Presentation – Thursday, Financial Community May Presentation 12,23,2011 – May 2013
Slide 16: Who is Comex?
Who is Comex? • Founded in Mexico in 1952 • Total company sales of $1.4 Billion • 66% in Latin America, 34% in U.S. and Canada • Respected family of brands • Second largest paint store organization in the Western Hemisphere - Over 3,300 points of sale in Mexico operated by 750 independent concession
Slide 17: Comex Regulatory Process
Comex Regulatory Process • Regulatory Review Process Complete in U.S. and Canada • Mexico Review Similar to U.S. with Longer Timeline • Satisfied All Information Requests by Mexico Government • Await Determination of Next Steps Financial Community Presentation – Thursday, Financial Community May Pre
Slide 18: Sherwin-Williams Revenue by Segment
Sherwin-Williams Revenue by Segment ($8.766 Billion) Paint Stores Group Global Finishes Consumer Latin America Financial Community Presentation – Thursday, Financial Community May Presentation 12,23,2011 – May 2013
Slide 19: Sherwin-Williams + Comex
Sherwin-Williams + Comex Pro Forma 2011 Revenues: $10.2 Billion Paint Stores Group Global Finishes Consumer Latin America • Strengthens our U.S. & Canadian Paint Stores business • Doubles our Latin American coatings business • Controlled Distribution & Concessionaires account for 75% of combined sal
Slide 20: Sherwin-Williams + Comex
Sherwin-Williams + Comex Paint Stores Group Global Supply Chain Latin America Coatings Group Financial Community Presentation – Thursday, Financial Community May Presentation 12,23,2011 – May 2013
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