Ppg Industries, Inc. · NYSE:PPG
Ppg Industries — Q1 2024 Earnings Presentation
14 slides from Ppg Industries's earnings presentation, Apr 19, 2024
Slide 1: First Quarter 2024 Financial Results
First Quarter 2024 Financial Results April 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: First Quarter 2024 Highlights
First Quarter 2024 Highlights Share Announced strategic review of architectural coatings Repurchases U.S. and Canada to maximize shareholder value ~$150MM Solid organic sales growth and order backlogs in aerospace and protective and marine coatings Adjusted EPS Above market, double-digit sales growt
Slide 4: First Quarter Net Sales
First Quarter Net Sales Organic sales down 2% YOY impacted by PY customer load-in and Easter timing Net Sales ($ in millions) $4,380 Selling prices: Targeted increases offset 0% 0% $4,311 -1% by index pricing and non-recurring prior-year -1% energy surcharge Volumes: Solid aerospace, protective and
Slide 5: Operating Environment Heading Into 2Q 2024
Operating Environment Heading Into 2Q 2024 Positives • Aerospace recovery and order backlog 0 • Double-digit percentage PPG sales growth in China • Mexico economic growth • Raw material availability • Infrastructure spending Watching • Geopolitical environment • Consumer spending • European demand r
Slide 6: Performance Coatings
Performance Coatings 1Q’24 Organic sales impacted by PY customer load-in and Easter timing Segment 15.4% 0 Margin +40 bps YOY Net Sales ($ in millions) Organic Sales 1Q’24 2Q’24 $2,628 1% $2,614 Results Outlook 1% -3% Aerospace MSD HSD Refinish FLAT MSD Architectural MSD LSD 1Q'23 Price Volume Curre
Slide 7: Industrial Coatings
Industrial Coatings 1Q’24 Continued year over year margin improvement Segment 14.7% 0 +100 bps YOY Margin Net Sales ($ in millions) Organic Sales 1Q’24 2Q’24 $1,752 Results Outlook 0% $1,697 -2% -1% Auto OEM LSD LSD Industrial MSD FLAT 1Q'23 Price Volume Currency 1Q'24 Packaging FLAT LSD Highlights
Slide 8: Balance Sheet Metrics
Balance Sheet Metrics Solid progress on normalizing inventory 1Q’24 Activity Working Capital as Days of Inventory a Percent of Sales 18.4% $1.2B $5.0B 98 Cash balance Net debt March 31, 2024 March 31, 2024 18.0% 94 17.8% 91 ~$270MM ~$150MM 1Q'19 1Q'23 1Q'24 1Q'19 1Q'23 1Q'24 Inventory Reduction Shar
Slide 9: Strategic Portfolio Review Update
Strategic Portfolio Review Update Creating a higher-margin, faster growing company Silica Products Business Architectural U.S. and Canada Business Objective Objective Divestiture to maximize shareholder value and streamline Divestiture, partnership or JV to maximize shareholder value and PPG’s busin
Slide 10: Second Quarter and Full-Year 2024 Financial Projections
Second Quarter and Full-Year 2024 Financial Projections Category Second Quarter 2024 Full Year Total organic sales (YOY) + LSD + LSD Adjusted EPS $2.42 - $2.52 per share $8.34 - $8.59 per share Raw material costs (YOY) - MSD - LSD to - MSD Corporate expense ~$80MM to $85MM ~$320MM to $340MM Net inte
Slide 11: Appendix
Appendix
Slide 12: Segment Margin and Adjusted EPS Excluding Amortization
Segment Margin and Adjusted EPS Excluding Amortization Reconciliation: $ in millions, except margin % 2023 2024 Performance Segment Q1 Q2 Q3 Q4 FY Q1 Segment Margin, As Reported 15.0% 17.7% 15.7% 12.4% 15.3% 15.4% Net Sales $2,628 $3,041 $2,880 $2,615 $11,164 $2,614 Segment Income 395 537 452 325 1,
Slide 13: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation Reconciliation: $ in millions, except EPS Total PPG First Quarter 2024 Net Income EPS(a) Net Income from Continuing Operations, As Reported $ 400 $ 1.69 Acquisition-related amortization expense 29 0.12 Business restructuring-related costs, net(b) 8 0.03 Portfolio optimiza
Slide 14: Thank You For Your Interest In PPG
Thank You For Your Contact Information: Interest In PPG INVESTORS: Jonathan Edwards phone: +1.412.434.3466 email: jonathanedwards@ppg.com MEDIA: Mark Silvey phone: +1.412.434.3046 email: silvey@ppg.com 14