Sherwin-Williams Company (the) · NYSE:SHW

Sherwin-Williams Company (the) — The Sherwin-Williams Company — Investor Day (May 2012)

27 slides from Sherwin-Williams Company (the)'s investor day presentation, May 23, 2012

  1. Slide 1: Market Overview

    Market Overview Chris Connor Chairman & CEO THE SHERWIN-WILLIAMS COMPANY

  2. Slide 2: 2011 Coatings Industry

    2011 Coatings Industry Global Mix by Category Total Coatings Special 2011 Purpose 7.4 Billion Gallons (+5%) Architectural 21% ~99 Billion Dollars (+5%) 41% OEM Product Finishes 38%

  3. Slide 3: Coatings Demand by Region

    [Sis | Coatings Demand by Region Share of Global Volume by Category eS . OD AllCoatings (1 OEM Product Finishes @ Architectural Coatings © Special Purpose Coatings

  4. Slide 4: Coatings Industry Top Global Manufacturers - 2011

    SHERWIN WILLIAMS. Coatings Industry Top Global Manufacturers - 2011 * Top 10 suppliers account for ~57% in -Williams | global share Sherwin-Willl * More than 15,000 companies make up the balance Source: Kusumgar, Nerlfi & Growney, Company Data Financial Community Presentation — May 23, 20742

  5. Slide 5: U.S. Coatings Industry

    U.S. Coatings Industry Sales ($) Mix by Category Total Coatings Special 2011 Purpose 1.04 Billion Gallons (+1%) 16% 18.66 Billion Dollars (+5.3%) OEM Product | Finishes 26% Source: U.S. Department of Commerce; Segment Percents Based on Dollars

  6. Slide 6: U.S. Coatings Industry: Architectural Coatings Gallons

    U.S. Coatings Industry Architectural Coatings Gallons (Millions) 900 — 800 + i 760M — 800M 700 + Millions of Gallons 500 t t t +t t t t t t + t t +t 1 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: U.S. Department of Commerce MA325F Report

  7. Slide 7: U.S. Coatings Industry: Architectural Gallons Lost

    Millions of Gallons 800 700 5 U.S. Coatings Industry Architectural Coatings Gallons (Millions) >185 Million Gallons Lost 500 Source 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 e: US. Department of Commerce MA325F Report

  8. Slide 8: Favorable Customer Mix

    Favorable Customer Mix DIY — Contractor Shift will Continue if » =! ee -~ = Gs gm ems Cpr es remy Ce es Ce ts Qe Ce Poe pe pe mr es pe ee ee Pe ry rr py Fd OContractor BDIY Source: U.S. Dept of Commerce/Company Estimates

  9. Slide 9: DIY Channel Share, U.S.

    SHERWIN | >) WILLIAMS. DIY Channel Share, U.S. Most Recent Purchase by Store Type Home Centers 61% Mass Merchants 14% Lumber/ y Paint Stores Building Supply 15% 2% Hardware 9% Source: PCRP 2011

  10. Slide 10: Contractor Channel Share, U.S.

    C\ SHERWIN "| (yA) WILLIAMS. Contractor Channel Share, U.S. Primary Outlet by Store Type Paint Stores 90.2% Hardware 2 Zz 1.6% Home Centers 6.3% "—~ piscount / Other 1.9% Source: S-W Marketing: 2011 Financial Community Presentation — May 23, 2042

  11. Slide 11: U.S. Coatings Industry Demand Drivers

    U.S. Coatings Industry Demand Drivers * Architectural Paint — Residential — New / Turnover — Home Remodeling — Non-Residential — New / Maintenance

  12. Slide 12: U.S. Architectural Paint: Existing Home Sales

    U.S. Architectural Paint >), SHERWIN as) VVILLIAMS. ® i Existing Home Sales Dual Tax Credit Expiration + + ca) 2° i=) fm) a f=y lo 7,000 + 6,000 + 3,000 4 2,000 1,000 + wT SJIUN S000 Ul Sales aWOH Buysix3 Source: National Association of Realtors, U.S. Census Bureau oO inancial ¢ F

  13. Slide 13: U.S. Architectural Paint: New Home Sales

    Existing Home Sales in 000s Units SHERWIN WILLIAMS. 8,000 7,000 6,000 5,000 4,000 3,000 2,000 + 1,000 U.S. Architectural Paint New Home Sales = 71600 4 +1400 IL K, 44200 +1000 + 800 600 +400 + 200 SSS ASANO BOO ss STOW GO OOR RR ROD ODD BRRoOO0— 8 8 Se SSC SS SSS SS5555S8SS888 ee & Source: National

  14. Slide 14: U.S. Architectural Paint: Non-Residential

    U.S. Architectural Paint Non-Residential 2005 vs. 2004: (2006 vs. 2005:| 2007 vs. 2006: |2008 vs. 2007: | 2009 vs. 2008: | 2010 vs. 2009:) 2011 vs. 2010: 140,000 + gy 1% -5% -19% -46% -18% -2% 160,000 + 120,000 + 100,000 + 80,000 + 60,000 + Non-Residential Sq.Ft. in 000s 40,000 + 20,000 + 2005 2006

  15. Slide 15: U.S. Consumer Sentiment

    85.0 —- T 75.0 + 70.0 -- 65.0+ ; U.S. Consumer Sentiment —— Apr-12 m= «Oct-11 60.0 i T T i i i T i ] 4Q-11 1Q-12 2Q-12 3Q-12 4Q-12 1Q-13 2Q-13 3Q-13 4Q-13 Source: HIS Global Insights

  16. Slide 16: U.S. Housing Starts

    Millions of Starts U.S. Housing Starts Seasonally Adjusted Annual Rate Lys ap tout Sy 1.0 + —4— Apr-12 m= «Oct-11 0.7 + | | | | | | | | | 4Q-11 1Q-12 2Q-12 3Q-12 4Q-12 1Q-13 2Q-13 3Q-13 4Q-13 Source: HIS Global Insights

  17. Slide 17: U.S. Existing Home Sales

    Millions of Starts U.S. Existing Home Sales Seasonally Adjusted Annual Rate 5.5 + 5.3 + 4.9 -- 47> —— Apr-12 —m- Oct-11 4.3 + 4.1 | | | | | | | | | 4Q-11 1Q-12 2Q-12 3Q-12 4Q-12 1Q-13 2Q-13 3Q-13 4Q-13 Source: HIS Global Insights

  18. Slide 18: U.S. Coatings Industry Demand Drivers

    SHERWIN WILLIAMS. fe) U.S. Coatings Industry Demand Drivers * Architectural Paint — Residential — New / Turnover — Home Remodeling — Non-Residential — New / Maintenance * OEM Product Finishes — Industrial Production

  19. Slide 19: OEM Product Finishes Gallons

    Millions of Gallons 500 - 450 5 400 5 350 5 300 250 U.S. Coatings Industry OEM Product Finishes Gallons (Millions) 1 n n n n i 1 1 1 4 4 4 4 J 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: U.S. Department of Commerce MA325F Report

  20. Slide 20: U.S. Manufacturing Activity

    U.S. Manufacturing Activity 2012 2011 2010 2009 2008 Source: Institute for Supply Management

  21. Slide 21: U.S. Manufacturing Activity

    team] U.S. Manufacturing Activity April March Index 2012 2012 Change Direction Rate of Change PMI 54.8 53.4 +1.4 Growing Faster New Orders 58.2 54.5 +3.7 Growing Faster Production 61.0 58.3 +2.7 Growing Faster Employment 57:3 56.1 +1.2 Growing Faster Inventories 48.5 50.0 -1.5 Contracting From Flat

  22. Slide 22: U.S. Coatings Industry Demand Drivers

    SHERWIN LLIAMS. U.S. Coatings Industry Demand Drivers * Architectural Paint — Residential — New / Turnover — Home Remodeling — Non-Residential — New / Maintenance ¢ OEM Product Finishes — Industrial Production * Special Purpose — Infrastructure Investment — Light Vehicle Sales — Miles Driven

  23. Slide 23: Special Purpose Coatings Gallons

    U.S. Coatings Industry Special Purpose Coatings Gallons (Millions) Millions of Gallons —_ —_ = NO NO Ls) te a o f—] NO 7 o i—) So i—) o i—) 4 1 1 1 1 J - - ; - - - = nN o 4 T 100 + t t t t + t + + : : : : { 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: U.S. Department

  24. Slide 24: U.S. Infrastructure Investment

    Protective & Marine Coatings U.S. Infrastructure Investment _ Percent Change ° 2010 2011 2012p Commercial Manufacturing §Power/Comm. Mining © Non-Building Source: IHS Global Insight

  25. Slide 25: Light Vehicle Sales

    Gown | WILLIAMS. 1,400 + af 1200-7 a im 2 a2 ‘E 1,000 - = — S 00 4 To | 2) ji ° = 600 +12% YTD = a = |= 400 200 + Bila ) a Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr 2011 | 2012 Source: Wards Automotive

  26. Slide 26: U.S. Vehicle Miles Driven

    Trillions of Miles 3.0 2.8 | 2.6 2.4|++— 2.2 2.0 -++4- 1.8 16+ 1.4 a2 1.0 Source: Calculated Risk Economics U.S. Vehicle Miles Driven ~ Rolling12 Month Miles [ff Recession & 8 PP & oS OS FE FEF FEF ELS “s y FF ‘< s Ss “s - $ ~ s . FE LS <e

  27. Slide 27: Sherwin-Williams Perspective: Market Summary

    Sherwin-Williams Perspective Market Summary Remain Bullish on U.S. Market and Expect Pace of Growth to Exceed Rest of World U.S. Architectural Market Poised for a Multi-Year Rebound Painting Contractor Share is Stabilizing and will Grow with Market Volume Recovery OEM Product Finishes is Benefiting

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