Ppg Industries, Inc. · NYSE:PPG
Ppg Industries — PPG Global Supplier Webinars (October 2021)
27 slides from Ppg Industries's conference presentation, Oct 14, 2021
Slide 1: We protect and beautify the world
We protect and beautify the world
Slide 2: PPG Global Supplier Webinars
PPG Global Supplier Webinars Melanie Barth – Global Quality Director July 1, 2021 October 14th 2021
Slide 3: Agenda
Agenda Global Procurement Key Messages Christine Camsuzou – Global Procurement Director Marketing OEM Expectations Luis Aragon – Global Account Director PSA & Renault PPG Quality Expectations Davide Bariona – Quality Director EMEA Q&A 3 3
Slide 4: Expected Outcomes for this Webinar
Expected Outcomes for this Webinar Questions and Key Messages Growth Answers for you Partnership Questions and answers You will hear important In this very complex and collected from Slido messages and dynamic environment we were integrated to the expectations from the need to work together to curre
Slide 5: PPG Global Procurement
PPG Global Procurement Christine Camsuzou – Global Procurement Director July 1, 2021 October 14th 2021
Slide 6: We are One PPG
ad Fi » a .. We are “ONE PPG Les jachlan to te WORLD te cncare Mutual ~~ J Py - | TODAY raw Yesterpar- © _We TRUST oup EveRYDAY ey PEOPLE Every Day iw EVERY WAY
Slide 7: The PPG Way
How we behave, work and operate to achieve success The PPG Way Every single day at PPG: We partner with customers We are “One PPG” to the world. We trust our people to create mutual value. We are better and stronger every day, in every way. We are insightful, dedicated together. We leverage our scal
Slide 8: PPG is the most active market consolidator
PPG is the most active market consolidator ($ in millions) +6.1% PPG Y-O-Y Net Sales Trend Selling Price Increase Progression (excluding currency impacts) vs Last Inflation Cycle *0.6% 2Q21: Volume recovery continues Pricing realization ahead of prior inflation cycle * This Cycle = Q1 2021 – Q3 2021
Slide 9: PPG is well positioned to sustain growth
PPG is well positioned to sustain growth PPG volume performance by major coatings vertical vs. prior year and end-use market demand U.S. and Canada Europe / Middle East / Africa Asia-Pacific Latin America Aerospace Above Market At Market At Market Above Market Automotive Refinish Above Market Above
Slide 10: Key highlights of PPG's ESG Focus and Progress
Key highlights of PPG’s ESG Focus and Progress We protect and beautify the world through our Environmental, Social and Governance initiatives. A sampling of sustainable PPG products Low-Temperature Cure SIGMAGLIDE 1290 PR-1776MB Basecoat / Clearcoat Premium Hull Coating Solution Low Weight Fuel Auto
Slide 11: PPG sustainability goals 2021
PPG sustainability goals 2021 11 Meeting PPG sustainability goals can only be achieved through meeting our quality objectives
Slide 12: PPG needs Quality
PPG needs Quality AREAS OF CONCERN Supply chain disruption Personnel changes Replacement solutions SUPPORT NEEDED Consistent materials Back up facilities with similar quality systems Dedication to training 12
Slide 13: PPG Automotive OEM Coatings
PPG Automotive OEM Coatings Luis Aragon – Global Account Director PSA & Renault July 1, 2021 October 14th 2021
Slide 14: PPG Automotive Customers
PPG Automotive Customers 14 PPG provides coatings solutions for major OEMs and sub suppliers
Slide 15: Automotive Market
Automotive Market Production Trend About a car plant +2,0% • Production volume 340.000 cars/year Million Units 100 94 97 99 • Car lenght 4,23 m 91 93 81 21 21 21 21 • Lining up all cars built last year in this one plant 80 75 20 17 would make a line 1.438 km long 15 23 23 60 23 23 23 18 20 This woul
Slide 16: Automotive Trends
Automotive Trends Autonomous Electrification Connectivity driving Low Battery pack Two tone & temperature solutions chromatic colors 16 We partner with customer to create mutual value
Slide 17: What is MOST important for our Automotive customers?
What is MOST important for our Automotive customers? Customer requirements Quality Management System • On-time performance • Every supply incident is reported in the Quality Portal and • Robustness is ranked as yellow or red card depending on severity • Quality • Containment action is requested with
Slide 18: What do WE need from OUR suppliers?
What do WE need from OUR suppliers? Cost Proposition on Quality and Sustainability CO2 protocols Competitive innovation Delivery Value for the customer Develop products or Reliable Quality and Sustainability improves CO2 protocols at no created not only with services that bring Delivery. OTIF and OK
Slide 19: PPG Quality Expectations
PPG Quality Expectations Davide Bariona – Quality Director EMEA July 1, 2021 October 14th 2021
Slide 20: Where we are…
Where we are… 20 PPG CONFIDENTIAL
Slide 21: PPG Quality Policy
PPG Quality Policy PPG will provide products and services to our interested parties that fully meet their requirements. We are dedicated to continuous improvements in every area of our business and to doing the job right the first time, so as to achieve total satisfaction to our interested parties.
Slide 22: 2020-2021 Results: What went well?
2020-2021 Results: What went well? 0 33% 20 Non-conformities Non-conformities closed Supplier audits related to supplier with a strong RC performed with no major management from third analysis non-conformities party audits. 22
Slide 23: 2020-2021 Results: What must improve?
2020-2021 Results: What must improve? 64% 37% 5 Non-conformities with Major line customer Increase of high severity no response received disruptions due to issues vs 2019 supplier issues 23
Slide 24: Results: What did we observe?
Results: What did we observe? Supplier CAIR Severity Distribution Top Supplier Related Issues 2020-2021 +64% +8% -6% -5% Out of Specs 651 614 10% Contaminated Product 586 Container incorrect/ 10% damaged Low Severity Service Late/Incomplete High Severity 40% COA missing/ late Incorrect 14% 159 172 9
Slide 25: 2020-2021 Results: What did we observe?
2020-2021 Results: What did we observe? Top Supplier-Categories with non conformities Supplier Responsiveness to PPG Issues Carrier-logistic service 5% Poor: 15% 15% Response not received Resins Fair: Solvent Slow or inadequate response Additives 37% Good: 12% 33% Response with RC 15% Pigment Excell
Slide 26: PPG Expectations
PPG Expectations • Reduce Cost of Poor • Ensure supplier non- • Proactivity instead of • Minimum ISO9001 reactivity – implement Certification Quality by providing conformities are quality products and addressed and resolved. lesson learned • Adherence to the services • Close communication • Understa
Slide 27: We protect and beautify the world
ppc We protect and beautify the world”
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