PPG Industries, Inc. · NYSE:PPG
PPG Industries — Q4 2015 Earnings Presentation
16 slides from PPG Industries's earnings presentation, Jan 21, 2016
Slide 1: PPG Industries, Inc. – Fourth Quarter 2015 Financial Results
PPG Industries, Inc. – Fourth Quarter 2015 Financial Results Michael H. McGarry, President and Chief Executive Officer Frank S. Sklarsky, Executive Vice President and Chief Financial Officer Vincent J. Morales, Vice President Investor Relations and Treasurer Scott A. Minder, Director Investor Relati
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements contained herein relating to matters that are not historical facts are forward-looking statements reflecting PPG’s current view with respect to future events and financial performance. These matters within the meaning of Section 27A of the Securities Act of 1933
Slide 3: Fourth Quarter 2015 Financial Highlights
Fourth Quarter 2015 Financial Highlights • Sales up 7 percent in local currencies aided by higher volumes Aggregate sales volumes increased nearly 2 percent year-over-year; highest 2015 quarterly growth rate Acquisition-related sales contributed 5 percent, including 1 month of Comex (acquired in
Slide 4: PPG Fourth Quarter Net Sales
PPG Fourth Quarter Net Sales $4,000 +0.0% +1.5% -6.8% 3,707 +5.0% 3,696 $3,750 $3,500 $3,250 ($ in millions) 4Q'14 Price Volume Currency Acq./Div. 4Q'15 PPG Y-O-Y Volume Trends Dollar/Euro Conversion Rate (excl. price, currency and acquisition/divestiture impacts) (Quarter rate = 3-month average) 6%
Slide 5: Net Sales Volume Trends – Coatings Segments
Net Sales Volume Trends – Coatings Segments PPG Coatings Y-O-Y Regional Volume Trends 4Q 2015 Commentary Y-O-Y (versus 4Q 2014): (excl. price, currency and acquisition/divestiture impacts) U.S. & Canada: 3Q’14 Sales volumes slightly unfavorable versus strong prior year 5% quarterly growth of 5 perce
Slide 6: PPG Full Year Net Sales
PPG Full Year Net Sales $16,000 +0.9% -7.4% 15,360 +0.2% +6.1% 15,330 $15,000 $14,000 ($ in millions) FY'14 Price Volume Currency Acq./Div. FY'15 2015 Net Sales Mix by Major Region PPG Coatings Volume Trend* Latin (indexed to 2008) America 30% 25% 10% 20% All Other 16% 10% Asia 46% United 0% -6% 1%
Slide 7: PPG Adjusted Earnings Per Diluted Share
PPG Adjusted Earnings Per Diluted Share* Fourth Quarter Full Year $1.50 $6.00 5.69 +17% +17% 1.23 4.88 1.05 $4.50 $1.00 3.83 0.84 2.92 $3.00 0.57 $0.50 $1.50 $0.00 $0.00 4Q '12 4Q '13 4Q '14 4Q '15 2012 2013 2014 2015 Results up 17% versus record prior year CAGR = 24% * Adjusted EPS – see presentati
Slide 8: Performance Coatings
Performance Coatings $MM (USD) 4Q14 4Q15 Chg % Year 2014 Year 2015 Chg % Net Sales 2,091 2,060 -31 -2% 8,698 8,765 67 1% Earnings 239 250 11 5% 1,205 1,302 97 8% Margin % 11.4% 12.1% -- -- 13.9% 14.9% -- -- Select Net Sales Detail Total Volume Currency Select Net Sales Detail Total Volume Currency 4
Slide 9: Industrial Coatings
Industrial Coatings $MM (USD) 4Q14 4Q15 Chg % Year 2014 Year 2015 Chg % Net Sales 1,344 1,371 27 2% 5,552 5,476 -76 -1% Earnings 223 240 17 8% 951 985 34 4% Margin % 16.6% 17.5% -- -- 17.1% 18.0% -- -- Select Net Sales Detail Total Volume Currency Select Net Sales Detail Total Volume Currency 4Q Y-O
Slide 10: Glass
Glass $MM (USD) 4Q14 4Q15 Chg % Year 2014 Year 2015 Chg % Net Sales 272 265 -7 -3% 1,110 1,089 -21 -2% Earnings 33 38 5 15% 81 137 56 33% Margin % 12.1% 14.3% -- -- 7.3% 12.6% -- -- Select Net Sales Detail Total Volume Currency Select Net Sales Detail Total Volume Currency 4Q Y-O-Y Change 2015 Y-O-Y
Slide 11: Cash
Cash ($ in millions) Cash and Short Term Investments 2015 Cash Returned to Shareholders $3,000 $2,393 $2,000 $2,500 ~$1,840 $2,000 $1,745 $1,750 $1,455 $1,500 $1,183 $1,000 $1,500 $500 $1,250 ~$1,135 $0 Cash 2012 2013 2014 2015 From $1,000 Continuing Dividends ~$385 Operations Approximate 2015 Cash
Slide 12: 2016 Financial Assumptions
2016 Financial Assumptions Full Year Pre- Category Full Year Sales Comments: Tax Income ($ as millions of USD unless stated otherwise) At or below 2015 Acquisition Carry- ~ $250 incremental Phasing of incremental sales follows 2015 segment average Over Impact vs. 2015 acquisition closure timeline ea
Slide 13: 2015 Full Year Summary
2015 Full Year Summary Robust operational and financial performance Record full-year adjusted earnings per diluted share up 17 percent year-over-year Segment income up 14 percent in local currencies; improved results in each segment Strong results despite unfavorable currency translation on
Slide 14: Additional Materials and Appendix
Additional Materials and Appendix www.ppg.com Thank you for your interest in PPG Industries, Inc. 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 Year 2015 Net Income Attributable to PPG as Reported $ 314 $ 1.16 $ - $ - $ 314 $ 1.16 Transaction-related costs 11 0.04 - - 11 0.04 Equity aff
Slide 16: PPG Adjusted Earnings Per Share Trend Reconciliation
PPG Adjusted Earnings Per Share Trend Reconciliation Y-O-Y Change in Adjusted EPS from Continuing Adjusted EPS from Continuing Operations Operations Period 2011 2012 2013 2014 2015 2012 vs. 2011 2013 vs. 2012 2014 vs. 2013 2015 vs. 2014 1Q $ 0.44 $ 0.62 $ 0.69 $ 0.99 $ 1.18 $ 0.18 $ 0.07 $ 0.30 $ 0.