Slide 1: Second Quarter 2020 Financial Results
Second Quarter 2020 Financial Results Michael H. McGarry, Chairman and Chief Executive Officer Vincent J. Morales, Senior Vice President and Chief Financial Officer John Bruno, Director, Investor Relations All content within is proprietary to PPG. Information current as of July 16, 2020
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: PPG Response to COVID-19 Pandemic
PPG Response to COVID-19 Pandemic • Rapidly implemented global health and safety protocols based on CDC and WHO protocols • Manufacturing hand sanitizer and surface disinfectants at factories in each major region to support our employees and customers • Frequent employee communications by PPG’s CEO
Slide 4: Second Quarter 2020 Financial Highlights
Second Quarter 2020 Financial Highlights Net sales down ~22% Adjusted earnings per Cash deployment in constant currencies diluted share* of $0.99 and liquidity • Net sales totaled $3 billion; sales • EPS was lower versus prior year, • Cash and short-term volumes declined versus the prior primarily d
Slide 5: PPG Second Quarter Net Sales
PPG Second Quarter Net Sales ($ in millions) $4,600 4,024 +1.7% -24% $3,800 -3.3% +0.6% 3,015 $3,000 $2,200 2Q'19 Price Volume Currency Acq./Div. 2Q'20 PPG Y-O-Y Net Sales Trend Foreign Currency Rate Trends vs. U.S. Dollar (excluding currency impacts) (indexed to Q2’18) 5.9% 4.8% 2.9% 1.6% 10% 1.9%
Slide 6: Second Quarter Sales Volumes
Second Quarter Sales Volumes 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 At Market Automotive Refinish At Market At Market At Market At M
Slide 7: 2020 Net Sales Trend by Reporting Segment and Major Regions
2020 Net Sales Trend by Reporting Segment and Major Regions Reporting Segment Sales Trends* Regional Sales Trends* 20% 20% 0% 0% -20% -20% -40% -40% -60% -60% Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Performance Coatings Industrial Coatings Total PPG USCA E
Slide 8: Second Quarter PPG End-Use Sales Volumes Trends (YOY)
Second Quarter PPG End-Use Sales Volumes Trends (YOY) April May June Total PPG -35% -27%* -12%* DIY - Australia DIY - USCA DIY - USCA > 10% DIY - EMEA DIY - EMEA DIY - Australia DIY - Australia Packaging Packaging Packaging > -5% to +10% DIY - USCA Arch - Mexico Arch - Mexico Arch - Trade Arch - Tra
Slide 9: PPG Coatings Margin Trends
PPG Coatings Margin Trends 2008/2009 Margin % 2019/2020 Margin % 20.0% 20.0% 15.0% 15.0% 10.0% 10.0% 5.0% 5.0% 0.0% 0.0% -5.0% -5.0% Performance* Industrial Segment Total Coatings Performance Industrial Segment Total Reportable Segment Segments Segment Segments Q1 2008 Q1 2009 Q2 2019 Q2 2020 Volume
Slide 10: Performance Coatings
Performance Coatings $MM (USD) 2Q20 2Q19 Chg % Select Net Sales Detail Volume Currency Acquisition Net Sales 2,069 2,430 -361 -15% 2Q Y-O-Y Change -15% -4% +1% Income 362 425 -63 -15% Margin % 17.5% 17.5% -- -- Business 2th Quarter Results 3rd Quarter Outlook Lower sales volumes driven by COVID-19
Slide 11: Industrial Coatings
Industrial Coatings Regional Auto Production Forecast (million units)* $MM (USD) 2Q20 2Q19 Chg % 6.0 5.0 4.0 Net Sales 946 1,594 -648 -41% 3.0 Income 34 235 -201 -86% 2.0 Margin % 3.6% 14.7% -- -- 1.0 Select Net Sales Detail Volume FX Acquisition N. America EMEA China 2Q Y-O-Y Change -38% -3% +0.2%
Slide 12: Balance Sheet and Cash
Balance Sheet and Cash Second Quarter Cash and Short- Second Quarter 2020 Activity and Liquidity Term Investments ($ in millions) 2Q 2020 approximate cash uses ~$2,300 • Capital spending $55 million • Dividends $120 million Liquidity ~$1,600 • $2.3 billion cash and short-term investments at end of J
Slide 13: Third Quarter 2020 Financial Assumptions
Third Quarter 2020 Financial Assumptions ($ in millions unless otherwise stated) Category Projection Performance Coatings Segment Sales Volumes (Y-O-Y) Lower 8% - 14% Industrial Coatings Segment Sales Volumes (Y-O-Y) Lower 10% - 15% Raw material costs (Y-O-Y) Moderating Unfavorable foreign currency
Slide 14: Additional materials and appendix
Additional materials and appendix
Slide 15: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation $ in millions, except EPS Total PPG Second Quarter 2020 Net Income EPS(a) Net Income from Continuing Operations, As Reported $ 99 $ 0.42 Business restructuring-related costs, net(b) 128 0.54 Debt extinguishment charge 5 0.02 Environmental remediation charges 3 0.01 Adjust
Slide 16: Thank You For Your Interest In PPG
Thank You For Your Interest In PPG Contact Information: INVESTORS: John Bruno phone: +1.412.434.3466 email: jbruno@ppg.com MEDIA: Mark Silvey phone: +1.412.434.3046 email: silvey@ppg.com 16