Ppg Industries, Inc. · NYSE:PPG
Ppg Industries — Q1 2020 Earnings Presentation
14 slides from Ppg Industries's earnings presentation, Apr 28, 2020
Slide 1: First Quarter 2020 Financial Results
First Quarter 2020 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 27, 2020
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: First Quarter 2020 Financial Highlights
First Quarter 2020 Financial Highlights Net sales down nearly 5% in constant currencies • Sales volumes unfavorable versus the prior year by 8 percent; mostly relating to lower demand from COVID-19 pandemic (estimated ~$225 million unfavorable impact) • Selling prices increased more than 1% • Acquis
Slide 4: Balance Sheet and Cash
Balance Sheet and Cash First Quarter Cash and Short-Term First Quarter 2020 Activity and Liquidity Investments ($ in millions) 1Q 2020 approximate cash uses: $2,500 • Capital spending $40 million • Dividends $120 million $2,000 $1,936 Liquidity: • $1.9 billion cash at end of March 2020 • In Apri
Slide 5: PPG First Quarter Net Sales
PPG First Quarter Net Sales ($ in millions) $3,800 +1.4% -8.0% 3,624 $3,600 -2.1% +2.2% 3,377 $3,400 $3,200 $3,000 1Q'19 Price Volume Currency Acq./Div. 1Q'20 PPG Y-O-Y Net Sales Trend Foreign Currency Rate Trends vs. U.S. Dollar (excluding currency impacts) (indexed to 1Q’18) 0% 8% 5.9% 4.8% 2.9% -
Slide 6: First Quarter Sales Volumes
First Quarter 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 Above Market Above Market Below Market Automotive Refinish At Market At Market At Marke
Slide 7: Performance Coatings
Performance Coatings $MM (USD) 1Q20 1Q19 Chg % Net Sales 2,008 2,108 -100 -5% Select Net Sales Detail Volume Currency Acquisition Income 272 297 -25 -8% 1Q Y-O-Y Change -6% -2% +1% Margin % 13.5% 14.1% -0.6% -- Business 1st Quarter Results 2th Quarter Outlook Segment Estimated unfavorable sales vo
Slide 8: Industrial Coatings
Industrial Coatings 7.5 Regional Auto Production Forecast (million units) $MM (USD) 6.5 1Q20 1Q19 Chg % 5.5 Net Sales 1,369 1,516 -147 -10% 4.5 Income 181 218 -37 -17% 3.5 Margin % 13.2% 14.4% -1.2% -- 2.5 N. America EMEA China Select Net Sales Detail Vol FX Acq 1Q Y-O-Y Change 1Q'18 1Q'19 1Q'20 2Q'
Slide 9: Q2 PPG Expected Demand / Volume Impact
Q2 PPG Expected Demand / Volume Impact Least Coatings Vertical PPG-Specific Comments Packaging Increases in certain canned goods demand Unfavorable Volume Impact DIY Architectural More resilient; shift from trade and historically somewhat counter-cyclical to high unemployment Marine New build late c
Slide 10: China Operations and Consumer Activity
China Operations and Consumer Activity • PPG operations in China were fully shut-down for two weeks in February • Measured, safe ramp-up in March based on customer demand • In April, recovery of consumer spending progressing • Certain auto-related government incentives beginning PPG China Weekly Fac
Slide 11: Historical PPG Trends (2008 – 2010)
Historical PPG Trends (2008 – 2010) Coatings Segments Only Segment Earnings vs Prior Year* 250% 200% 150% 100% 50% 0% -50% -100% 2008 2009 2010 PPG YOY Volumes* +2% 0% -2% -14% -21% -18% -12% -6% +7% +7% +3% +5% *Quarter-to-date information provided 11 Swift recovery from great recession downturn
Slide 12: Second Quarter 2020 Financial Assumptions
Second Quarter 2020 Financial Assumptions Category Projection ($ in millions unless stated otherwise) • Moderating; significantly lower raw Raw material costs (Y-O-Y) material purchases due to finished goods inventory draw down Unfavorable foreign currency (Y-O-Y) • $140 - $150 Net sales Based on cu
Slide 13: 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 13
Slide 14: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation $ in millions, except EPS Total PPG Net Income EPS(a) First Quarter 2020 Net Income Attributable to PPG as Reported $ 243 $ 1.02 Increase in allowance for doubtful accounts related to COVID-19 23 0.10 Business restructuring-related costs, net(b) 10 0.04 Environmental reme