Ppg Industries, Inc. · NYSE:PPG
Ppg Industries — Q3 2024 Earnings Presentation
13 slides from Ppg Industries's earnings presentation, Oct 17, 2024
Slide 1: Third Quarter 2024 Financial Results
Third Quarter 2024 Financial Results October 16, 2024
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 2024 Highlights
Third Quarter 2024 Highlights Share Repurchases Strong organic sales growth in aerospace, refinish and architectural coatings – Americas and Asia Pacific ~$200MM Sluggish demand in Europe and soft Record automotive OEM and industrial production Adjusted EPS $2.13 Performance Coatings segment volume
Slide 4: Third Quarter Net Sales
Third Quarter Net Sales Organic sales flat YOY in a challenging macro-economic environment Net Sales ($ in millions) $4,644 0% 0% $4,575 Selling prices: Flat with targeted increases offset -1% by index-based pricing in certain customer contracts Volumes: Flat with growth in aerospace, architectural
Slide 5: Operating Environment Heading Into 4Q 2024
Operating Environment Heading Into 4Q 2024 Positives • Aerospace demand and order backlog 0 • Mexico economic growth • Price – targeted increases • Raw material availability • Infrastructure spending Watching • Geopolitical environment • Consumer spending • European demand recovery • Supplier anti-d
Slide 6: Performance Coatings
Performance Coatings 3Q’24 Organic sales up 3% driven by volume growth Segment 17.6% 0 Margin +190 bps YOY Net Sales ($ in millions) Organic Sales 3Q’24 4Q’24 2% Results Outlook 1% $2,921 $2,880 -1% Aerospace DD HSD -1% Refinish MSD Flat Architectural 3Q'23 Price Volume Currency Divestitures 3Q'24 E
Slide 7: Industrial Coatings
Industrial Coatings 3Q’24 Organic sales challenged by soft automotive and industrial market Segment 12.0% 0 -190 bps YOY Margin Net Sales ($ in millions) Organic Sales 3Q’24 4Q’24 $1,764 Results Outlook 0% $1,654 Auto OEM DD HSD -3% -3% Industrial MSD LSD 3Q'23 Price Volume Currency 3Q'24 Packaging
Slide 8: Balance Sheet and Cash
Balance Sheet and Cash Increasing returns to shareholders 3Q’24 YTD Activity Return to Shareholders Cash Balance ($ in millions) ($ in billions) $400 $1.8 $350 $1.6 $1.3B $1.1B $300 $1.4 Cash balance Operating Cash Flow September 30, 2024 $1.2 $250 $1.0 $200 $0.8 $150 $0.6 $100 $0.4 $5.2B $1.0B $50
Slide 9: Full-Year 2024 Financial Projections
Full-Year 2024 Financial Projections Category Full Year 2024 Total organic sales (YOY) Flat Adjusted EPS Low end of $8.15 - $8.30 per share Raw material costs (YOY) - LSD Corporate expense ~$300MM to $305MM Net interest expense ~$70MM to $75MM Restructuring savings (incremental) ~$35 MM Capital expe
Slide 10: Appendix
Appendix
Slide 11: Segment Margin Reconciliation
Segment Margin Reconciliation $ in millions, except margin % 2023 2024 Performance Segment Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Segment Margin, As Reported 15.0% 17.7% 15.7% 12.4% 15.3% 15.4% 18.7% 17.6% Net Sales $2,628 $3,041 $2,880 $2,615 $11,164 $2,614 $3,048 $2,921 Segment Income 395 537 452 325 1,709 402 5
Slide 12: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation $ in millions, except EPS Total PPG Third Quarter 2024 Net Income EPS(a) Net Income from Continuing Operations, As Reported $ 468 $ 2.00 Acquisition-related amortization expense 24 0.10 Portfolio optimization(b) 8 0.03 Adjusted Net Income Attributable to PPG $ 500 $ 2.13
Slide 13: Thank You For Your Interest In PPG
Thank You For Your Contact Information: Interest In PPG INVESTORS: Alex Lopez phone: +1.412.434.3466 email: alejandrolopez@ppg.com MEDIA: Mark Silvey phone: +1.412.434.3046 email: silvey@ppg.com 13