PPG Industries, Inc. · NYSE:PPG
PPG Industries — Q4 2017 Earnings Presentation
15 slides from PPG Industries's earnings presentation, Jan 18, 2018
Slide 1: PPG – Fourth Quarter and Full Year 2017 Financial Results
PPG – Fourth Quarter and Full Year 2017 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 January 18, 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: Fourth Quarter 2017 Financial Highlights
Fourth Quarter 2017 Financial Highlights Net sales up nearly 8 percent; local currency sales increased over 4 percent • Sales volumes increased 3 percent year-over-year; balanced across all regions • Aggregate selling prices improved sequentially for the third consecutive quarter • Favorable foreign
Slide 4: PPG Fourth Quarter Net Sales
PPG Fourth Quarter Net Sales* ($ in millions) $3,750 +0.7% 3,682 +3.3% +3.0% $3,500 3,417 +0.6% $3,250 4Q'16 Price Volume Currency Acq./Div. 4Q'17 PPG Y-O-Y Volume Trends** Foreign Currency Rate Trends vs. U.S. Dollar (excl. price, currency and acquisition/divestiture impacts) (indexed to Q4’15) 15%
Slide 5: Fourth Quarter Net Sales Volumes
Fourth Quarter Net Sales Volumes PPG volume performance by major coatings vertical vs. prior year and end-use market demand U.S. & Canada Europe / Middle Asia-Pacific Latin America East / Africa Aerospace Above Market At Market Above Market At Market Automotive Refinish Above Market Above Market At
Slide 6: PPG Full Year Net Sales (continuing operations)
PPG Full Year Net Sales (continuing operations) ($ in millions) $15,500 +1.4% 14,750 +1.3% +0.4% $14,500 14,270 +0.2% $13,500 FY'16 Price Volume Currency Acq./Div. FY'17 2017 Net Sales by Major Region 2017 Net Sales by Business Segment Latin America 10% All Other Asia- 17% Pacific 43% United States
Slide 7: PPG Earnings Per Diluted Share (continuing operations)
PPG Earnings Per Diluted Share (continuing operations)* -10 cents impact Fourth Quarter Full Year from natural disasters $1.25 1.19 $6.25 5.87 1.14 1.16 5.67 5.33 $1.00 0.95 $5.00 4.67 $0.75 $3.75 $0.50 $2.50 $0.25 $1.25 $0.00 $0.00 4Q '14 4Q '15 4Q '16 4Q '17 2014 2015 2016 2017 * Adjusted EPS – se
Slide 8: Performance Coatings
Performance Coatings $MM (USD) 4Q16 4Q17 Chg % Year 2016 Year 2017 Chg % Net Sales 1,980 2,124 144 +7% 8,580 8,732 152 +2% Income 239 260 21 +9% 1,314 1,323 9 +1% Margin % 12.1% 12.2% -- -- 15.3% 15.2% -- -- Select Net Sales Detail Total Volume Currency Select Net Sales Detail Total Volume Currency
Slide 9: Industrial Coatings
Industrial Coatings $MM (USD) 4Q16 4Q17 Chg % Year 2016 Year 2017 Chg % Net Sales 1,437 1,558 121 +8% 5,690 6,018 328 +6% Income 236 212 -24 -10% 1,042 972 -70 -7% Margin % 16.4% 13.6% -- -- 18.3% 16.2% -- -- Select Net Sales Detail Total Volume Currency Select Net Sales Detail Total Volume Currency
Slide 10: Cash
Cash ($ in millions) Cash and Short Term Investments 2017 Cash Returned to Shareholders $2,000 $1,863 $1,491 $1,750 $1,455 ~$1,560 $1,500 $1,183 $1,500 $1,000 ~$1,250 $1,250 $500 Dividends Cash ~$435 $0 $1,000 From 2014 2015 2016 2017 Continuing $750 Operations* Approximate 2017 Cash Uses Share $500
Slide 11: 2018 Financial Assumptions
2018 Financial Assumptions Full Year Pre- Category Full Year Sales Comments: Tax Income ($ in millions unless stated otherwise) At or below segment 2017 - 2018 Acquisitions Phasing of incremental sales follows 2017 ~$125 average earnings (acquired or announced) and 2018 acquisition closure timeline
Slide 12: 2017 Full Year Summary
2017 Full Year Summary Financial and operational performance • Net sales up 3 percent in local currencies; sales volume growth of over 1 percent and acquisition- related growth of over 1 percent • Adjusted earnings per diluted share of $5.87*, up nearly 4 percent versus prior year • Operating workin
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
Slide 14: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation 4th Quarter Reporting Period $ in millions, except EPS Continued Operations Discontinued Operations Total PPG Net Income EPS Net Income EPS Net Income EPS Fourth Quarter 2017 Net Income Attributable to PPG as Reported $ 184 $ 0.72 $ -- $ -- $ 184 $ 0.72 Net tax charge for
Slide 15: PPG Adjusted Earnings Per Share Trend Reconciliation
PPG Adjusted Earnings Per Share Trend Reconciliation Adjusted EPS from Continuing Operations Period 2014 2015 2016 2017 1Q $0.98 $1.10 $1.23 $1.33 2Q 1.40 1.58 1.73 1.83 3Q 1.33 1.53 1.52 1.52 4Q 0.95 1.14 1.16 1.19 Full Year* $4.67 $5.33 $5.67 $5.87 Year over year percentage increase in EPS *Full y