Ppg Industries, Inc. · NYSE:PPG
Ppg Industries — Q4 2016 Earnings Presentation
17 slides from Ppg Industries's earnings presentation, Jan 19, 2017
Slide 1: PPG – Fourth Quarter and Full Year 2016 Financial Results
PPG – Fourth Quarter and Full Year 2016 Financial Results Michael H. McGarry, Chairman and Chief Executive Officer Frank S. Sklarsky, Executive Vice President and Chief Financial Officer Vincent J. Morales, Vice President, Finance Scott A. Minder, Director, Investor Relations Information current as
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 2016 Financial Highlights
Fourth Quarter 2016 Financial Highlights Reported sales down more than one percent, local currency sales increased one percent • Aggregate sales volumes increased 1.5 percent year-over-year, led by growth in emerging markets and aggregate coatings segment growth of 1.7 percent • Acquisition-related
Slide 4: PPG Fourth Quarter Net Sales (continuing operations)
PPG Fourth Quarter Net Sales (continuing operations)* $3,750 3,552 -0.7% +1.5% -2.7% 3,497 +0.4% $3,500 $3,250 ($ in millions) 4Q'15 Price Volume Currency Acq./Div. 4Q'16 PPG Y-O-Y Volume Trends** Foreign Currency Rate Trends vs. U.S. Dollar (excl. price, currency and acquisition/divestiture impacts
Slide 5: Fourth Quarter Coatings Net Sales Volumes
Fourth Quarter Coatings 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 At Market At Market At Market At Market Automotive Refinish At Market At Market Above
Slide 6: PPG Full Year Net Sales (continuing operations)
PPG Full Year Net Sales (continuing operations) $15,500 14,766 -0.3% +1.0% -2.6% 14,751 +1.9% $14,500 $13,500 ($ in millions) FY'15 Price Volume Currency Acq./Div. FY'16 2016 Net Sales by Major Region 2016 Net Sales by Business Segment Latin Glass* America 3% 10% All Asia- Other 17% Pacific 44% Unit
Slide 7: PPG Earnings Per Diluted Share (continuing operations)
PPG Earnings Per Diluted Share (continuing operations)* Fourth Quarter Full Year $1.25 1.19 $6.25 1.16 5.82 5.43 0.99 $1.00 $5.00 4.75 0.81 3.78 $0.75 $3.75 $0.50 $2.50 $0.25 $1.25 $0.00 $0.00 4Q '13 4Q '14 4Q '15 4Q '16 2013 2014 2015 2016 * Adjusted EPS – see presentation appendix for reconciliati
Slide 8: Performance Coatings
Performance Coatings $MM (USD) 4Q15 4Q16 Chg % Year 2015 Year 2016 Chg % Net Sales 2,060 1,980 -80 -4% 8,765 8,580 -185 -2% Income 250 239 -11 -4% 1,302 1,314 12 +1% Margin % 12.1% 12.1% -- -- 14.9% 15.3% -- -- Select Net Sales Detail Total Volume Currency Select Net Sales Detail Total Volume Curren
Slide 9: Industrial Coatings
Industrial Coatings $MM (USD) 4Q15 4Q16 Chg % Year 2015 Year 2016 Chg % Net Sales 1,371 1,437 66 +5% 5,476 5,690 214 +4% Income 240 236 -4 -2% 985 1,042 57 +6% Margin % 17.5% 16.4% -- -- 18.0% 18.3% -- -- Select Net Sales Detail Total Volume Currency Select Net Sales Detail Total Volume Currency 4Q
Slide 10: Glass
Glass $MM (USD) 4Q15 4Q16 Chg % Year 2015 Year 2016 Chg % Net Sales 121 80 -41 -34% 525 481 -44 -8% Income 11 12 1 9% 38 53 15 +39% Margin % 9.1% 15.0% -- -- 7.2% 11.0% -- -- Select Net Sales Detail Total Volume Currency Select Net Sales Detail Total Volume Currency 4Q Y-O-Y Change -34% -3% 0% 2016
Slide 11: Cash
Cash ($ in millions) Cash and Short Term Investments 2016 Cash Returned to Shareholders $2,000 $1,863 $1,745 $1,750 $1,500 $1,455 $1,183 ~$1,465 $1,500 $1,000 ~$1,250 Dividends $1,250 ~$415 $500 $0 $1,000 Cash 2013 2014 2015 2016 From Continuing $750 Operations* Approximate 2016 Cash Uses Share $500
Slide 12: 2017 Financial Assumptions
2017 Financial Assumptions Full Year Pre- Category Full Year Sales Comments: Tax Income ($ in millions unless stated otherwise) 2017 Acquisition: ~$180 At or below Phasing of incremental sales follows 2016 Acquisition/Divestiture Divestiture: ~$140 segment average acquisition and divestiture closure
Slide 13: 2016 Full Year Summary
2016 Full Year Summary Financial and operational performance • Sales up about 3 percent in local currencies; sales volume growth of 1 percent and acquisition- related growth of approximately 2 percent • Adjusted earnings per diluted share of $5.82*, up 7 percent versus prior year, including unfavora
Slide 14: Additional Materials and Appendix
Additional Materials and Appendix Thank you for your interest in PPG Contact Information: Investors: Scott Minder - (412) 434-3466 Media: Mark Silvey - (412) 434-3046
Slide 15: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation 4th Quarter Reporting Period Continued Operations Discontinued Operations Total PPG Net Income EPS Net Income EPS Net Income EPS Fourth Quarter 2016 Net Income Attributable to PPG as Reported $ 77 $ 0.29 $ 267 $ 1.01 $ 344 $ 1.30 Business restructuring charge 146 0.55 - -
Slide 16: PPG Adjusted Earnings Per Share Trend Reconciliation
PPG Adjusted Earnings Per Share Trend Reconciliation YOY Change in Adjusted EPS from Continuing Adjusted EPS from Continuing Operations Operations Period 2012 2013 2014 2015 2016 2013 vs. 2012 2014 vs. 2013 2015 vs. 2014 2016 vs. 2015 1Q $ 0.64 $ 0.69 $ 1.00 $ 1.13 $ 1.27 $ 0.05 $ 0.31 $ 0.13 $ 0.14
Slide 17: Regulation G Reconciliation
Regulation G Reconciliation Three Months Ended December 31, 2016 Income Before Income Taxes Tax (Benefit) Expense Effective Tax Rate Effective tax rate, continuing operations $140 $59 42.1% Business restructuring charge 197 51 25.8% Environmental remediation charge 82 31 37.6% Loss on divestiture of