Slide 1: Second Quarter 2024 Financial Results
Second Quarter 2024 Financial Results July 18, 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: Second Quarter 2024 Highlights
Second Quarter 2024 Highlights Share Repurchases Record aerospace net sales; solid organic sales growth in architectural coatings – Americas and Asia Pacific ~$150MM Sluggish demand in Europe and soft Record automotive and industrial production Adjusted EPS Refinish organic sales negatively impacted
Slide 4: Second Quarter Net Sales
Second Quarter Net Sales Organic sales flat YOY in an increasingly challenging macro-economic environment Net Sales ($ in millions) $4,872 0% 0% $4,794 Selling prices: Flat with targeted increases offset -1% -1% by index-based pricing in certain customer contracts Volumes: Flat with growth in aerosp
Slide 5: Operating Environment Heading Into 3Q 2024
Operating Environment Heading Into 3Q 2024 Positives • Aerospace recovery and order backlog • Mexico economic growth 0 • Share gain in aerospace, packaging, and refinish • Price – targeted increases • Raw material availability Watching • Infrastructure spending • Geopolitical environment • Consumer
Slide 6: Performance Coatings 2Q'24
Performance Coatings 2Q’24 Organic sales up 2% driven by targeted price increases Segment 18.7% 0 Margin +100 bps YOY Net Sales ($ in millions) Organic Sales 2Q’24 3Q’24 2% 0% Results Outlook $3,041 $3,048 -1% -1% Aerospace DD DD Refinish MSD MSD Architectural LSD LSD 2Q'23 Price Volume Currency Div
Slide 7: Industrial Coatings 2Q'24
Industrial Coatings 2Q’24 Continued YOY margin improvement Segment 14.8% 0 +110 bps YOY Margin Net Sales ($ in millions) Organic Sales 2Q’24 3Q’24 $1,831 Results Outlook 0% $1,746 -3% -1% Auto OEM HSD HSD -1% Industrial LSD LSD 2Q'23 Price Volume Currency Other 2Q'24 Packaging MSD MSD Highlights Ind
Slide 8: Balance Sheet Metrics
Balance Sheet Metrics Solid progress on normalizing inventory 2Q’24 Activity Working Capital as Days of Inventory a Percent of Sales 17.9% $1.2B $5.2B 88 Cash balance Net debt June 30, 2024 June 30, 2024 17.3% 85 17.0% 83 ~$210MM ~$150MM 2Q'19 2Q'23 2Q'24 2Q'19 2Q'23 2Q'24 Inventory Reduction Share
Slide 9: ESG Report Issued in May 2024: Solid Progress in 2023
ESG Report Issued in May 2024: Solid Progress in 2023 12% 13% Reduction in Reduction in Water Intensity at Priority Sites Scope 3 in Water Scarce GHG Emissions Communities 10% 44% Reduction in Sales from Sustainably Scope 1 and 2 Advantaged Products GHG Emissions 97% 45% Key Suppliers Assessed to Pr
Slide 10: Third Quarter and Full-Year 2024 Financial Projections
Third Quarter and Full-Year 2024 Financial Projections Category Third Quarter 2024 Full Year Total organic sales (YOY) Flat to + LSD Flat to + LSD Adjusted EPS $2.10 - $2.20 per share $8.15 - $8.30 per share Raw material costs (YOY) Flat to - LSD - LSD Corporate expense ~$75MM to $80MM ~$300MM to $3
Slide 11: Appendix
Appendix
Slide 12: Segment Margin Reconciliation
Segment Margin Reconciliation $ in millions, except margin % 2023 2024 Performance Segment Q1 Q2 Q3 Q4 FY Q1 Q2 Segment Margin, As Reported 15.0% 17.7% 15.7% 12.4% 15.3% 15.4% 18.7% Net Sales $2,628 $3,041 $2,880 $2,615 $11,164 $2,614 $3,048 Segment Income 395 537 452 325 1,709 402 570 Amortization
Slide 13: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation $ in millions, except EPS Total PPG Second Quarter 2024 Net Income EPS(a) Net Income from Continuing Operations, As Reported $ 528 $ 2.24 Acquisition-related amortization expense 27 0.11 Business restructuring-related costs, net(b) 2 0.01 Portfolio optimization(c) 18 0.08
Slide 14: 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 14