Sherwin-williams Company (the) · NYSE:SHW

Sherwin-williams Company (the) — The Sherwin-Williams Company — Q4 2023 Earnings Presentation

15 slides from Sherwin-williams Company (the)'s earnings presentation, Jan 25, 2024

  1. Slide 1: 4Q and Full Year 2023 Results

    4Q and Full Year 2023 Results January 25, 2024

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements This presentation contains "forward-looking statements," as defined under U.S. federal securities laws, with respect to sales, earnings and other matters. Forward-looking statements can be identified by the use of forward-looking words such as "believe," "expect," "estimat

  3. Slide 3: 2023 Full Year Financial Performance Highlights

    2023 Full Year Financial Performance Highlights ($ in millions, 2023 2022 % Change  Sales increased 4.1% driven by effective pricing and a except per share data) LSD contribution from acquisitions, net of divestitures Sales $23,051.9 $22,148.9 4.1%  Gross margin expanded to 46.7% and into our curr

  4. Slide 4: 4Q 2023 Financial Performance Highlights

    4Q 2023 Financial Performance Highlights ($ in millions, 4Q 2023 4Q 2022 % Change  Sales increased 0.4% with price and volume except per share data) essentially flat, acquisitions and divestitures Sales $5,252.2 $5,230.5 0.4% offsetting each other and favorable foreign exchange Gross Profit $2,548.

  5. Slide 5: Paint Stores Group (PSG)

    Paint Stores Group (PSG)  Sales increased 2.3% against a 15.7% comparison, driven by volume growth – Sales growth led by Protective & Marine, Commercial and Residential Repaint – Property Maintenance down against a challenging comparison – New Residential down as expected but continuing to outperfo

  6. Slide 6: Consumer Brands Group (CBG)

    Consumer Brands Group (CBG)  Sales decreased 7.1% driven by lower volumes and divestitures – North America DIY consumer remained under pressure; continued growth in Pros Who Paint category – Continued strength in Europe and Latin America  Continued investments in growth and customer services  Rep

  7. Slide 7: Performance Coatings Group (PCG)

    Performance Coatings Group (PCG)  Sales up slightly (+0.4%) – growth from acquisitions and favorable foreign exchange partially offset by choppy demand resulting in lower volume  LDD growth in Europe, LSD growth in Latin America, LSD decline in Asia Pacific and MSD decline in North America  Sales

  8. Slide 8: Guidance

    Guidance First Quarter 2024 Full Year 2024 Sales Sales  Up or down low-single-digit percentage  Up low to mid-single-digit percentage  Segments  Foreign Exchange: < -1.0%  PSG: up low to mid-single-digit percentage  Segments  PSG: up low to mid-single-digit percentage  CBG: up or down low-si

  9. Slide 9: Strong Financial Position

    Strong Financial Position Operating Cash Flow ($ in millions) Near-Term Debt Maturities (1) ($ in millions) $918.6 $1,500 $641.0 $1,100 $1,050 $350 4Q 2023 4Q 2022 2024 2025 2026 2027 2028 Cash & Liquidity Position ($ in millions) Selected Financial Ratios 12/31/2023 12/31/2023 Cash $276.8 Total Deb

  10. Slide 10: Appendix

    Appendix

  11. Slide 11: Enterprise Strategic Priorities

    Enterprise Strategic Priorities Talent & Culture Supply Chain Resilience Above Market Growth Digitization Simplification Sustainability Continue Driving Profitable Growth While Investing in Our Business 4Q and Full Year 2023 Results (January 25, 2024) 10

  12. Slide 12: Debt Summary (as of December 31, 2023)

    Debt Summary (as of December 31, 2023) 12/31/2023 $ in millions Balance Int. Rate Short-Term: Maturities of Long-Term Debt Domestic $ 347.7 5.51% Non-Domestic: 26.5 3.55% USD $1,500 Total Short-Term Borrowings $ 374.2 5.37% EUR Long-Term: $1,250 7-year, 3.125% notes due (1) 2024 500.0 1.39% $1,100 2

  13. Slide 13: Regulation G Reconciliation: Adjustments to Segment Profit – 4Q & Full Year

    Regulation G Reconciliation: Adjustments to Segment Profit – 4Q & Full Year Three Months Ended December 31, 2023 Three Months Ended December 31, 2022 Performance Performance Paint Stores Consumer Coatings Paint Stores Consumer Coatings ($ in millions) Group Brands Group Group Admin Consolidated Grou

  14. Slide 14: Regulation G Reconciliation: Adjusted EPS – 4Q & Full Year

    Regulation G Reconciliation: Adjusted EPS – 4Q & Full Year Three Months Ended Three Months Ended Year Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Tax Tax Tax Tax (1) (1) Pre-Tax Effect After-Tax Pre-Tax Effect After-Tax Pre-Tax Effect (1) After-Tax Pre-Ta

  15. Slide 15: Regulation G Reconciliation: Adjusted EBITDA – 4Q & Full Year

    Regulation G Reconciliation: Adjusted EBITDA – 4Q & Full Year Three Months Ended Three Months Ended Year Ended Year Ended ($ in millions) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Net income $ 356.2 $ 386.3 $ 2,388.8 $ 2,020.1 Interest expense 94.6 108.3 417.5 390.8 Inc

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