Rpm International Inc. · NYSE:RPM
Rpm International — Q1 FY2016 Earnings Presentation
21 slides from Rpm International's earnings presentation, Oct 7, 2015
Slide 1: Investor Relations Presentation
RPM INTERNATIONAL INC. RPM INTERNATIONAL INC. Exhibit 99.2 Investor Relations Presentation October 7, 2015
Slide 2: Forward-Looking Statements & Regulation G
RPM INTERNATIONAL INC. Forward-Looking Statements & Regulation G This presentation contains “Forward-Looking Statements” as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from expectations and are subject to certain risks and uncertainties such
Slide 3: RPM at a glance: Industrial and Consumer segments
RPM INTERNATIONAL INC. Industrial Segment (67%) Consumer Segment (33%) Entrepreneurial Operating Philosophy Competitive Advantage of Leading Brands Balance Between Consumer and Industrial Businesses Growth Strategy Balanced Between Internal Investment and Acquisitions $4.6 billion
Slide 4: RPM segments as of August 31, 2015
RPM INTERNATIONAL INC. Industrial Segment (53%) Consumer Segment (32%) Entrepreneurial Operating Philosophy Competitive Advantage of Leading Brands Balance Between Consumer and Industrial Businesses Growth Strategy Balanced Between Internal Investment and Acquisitions Specialty Segment (15%) As of A
Slide 5: Fiscal 2016 First-Quarter Results
Fiscal 2016 First-Quarter Results ($ in millions, except per share amounts) Three Months Ended Aug. 31, Consumer 2015 2014 % Three Months Ended Aug. 31, Specialty 2015 2014 % Three Months Ended Aug. 31, Industrial 2015 2014 % RPM INTERNATIONAL INC. Three Months Ended Aug. 31, Consolidated % Sales $1
Slide 6: Sales Growth by Region August YTD FY16 vs FY15 - Actual
RPM INTERNATIONAL INC. Sales Growth by Region August YTD FY16 vs FY15 - Actual RPM INTERNATIONAL INC. North America YTD +7% Europe YTD -6% Total $1,242 million YTD +3% South/Latin America YTD -14% Africa/ Middle East YTD +3% Asia/Pacific YTD +15%
Slide 7: Sales Growth by Region August YTD FY16 vs FY15 - at FY15 FX Rates
Sales Growth by Region August YTD FY16 vs FY15 - at FY15 FX Rates RPM INTERNATIONAL INC. North America YTD +9% Europe YTD +10% Total $1,326 million YTD +10% South/Latin America YTD +15% Africa/ Middle East YTD +14% Asia/Pacific YTD +36%
Slide 8: Capital Allocation: Fiscal 2006-2015
Capital Allocation: Fiscal 2006-2015 Acquisitions Dividends Capex Asbestos TOTAL RPM INTERNATIONAL INC. $1,226,622 $1,054,367 $673,215 $575,096 $3,529,300 Dividends 30% Capex 19% Asbestos 16% Acquisitions 35%
Slide 9: Accelerating Growth Investments
Accelerating Growth Investments 1 3 2 RPM INTERNATIONAL INC. Fiscal 2016 & Beyond: Competing & Winning in the Market by CapEx increase from $85 million to $120 million; large investments Replicate successful Brazilian strategy in Malaysia Increase consumer advertising to expand market share AlphaGua
Slide 10: Growth Strategy
RPM INTERNATIONAL INC. Growth Strategy Acquisitions • International Expansion • Product Innovation
Slide 11: Acquisition Strategy
Acquisition Strategy RPM INTERNATIONAL INC. “The Best Home for Entrepreneurial Companies” Key requirements: Acquisition Focus: Key Takeaways: • Niche market leaders • Strong GP margins • Retain entrepreneurial management team • Geographic expansion • New markets • New products • 150+ acquisitions •
Slide 12: International Expansion: 2005 vs. 2015
International Expansion: 2005 vs. 2015 RPM INTERNATIONAL INC. North America $2,202 $3,195 86% 70% Asia/Pacific $27 $121 1.0% 2.6% Europe $251 $942 10% 20% South/Latin America $42 $251 1.7% 5.5% TOTAL $2,556 $4,595 Africa/Middle East $34 $86 1.3% 1.9% Dollars in millions
Slide 13: Connections Creating Value: Model for Success in Developing World
Connections Creating Value: Model for Success in Developing World • Acquire platform company • Great management team • Market leader • Potential for rapid expansion • Established base of shared: Manufacturing Distribution Technology RPM INTERNATIONAL INC. • • • FY 15 FY 16 More to Come FY 13 FY 15 F
Slide 14: Connections Creating Value: Leveraging Shared Technologies
Connections Creating Value: Leveraging Shared Technologies RPM INTERNATIONAL INC.
Slide 15: New Product Innovations
RPM INTERNATIONAL INC. New Product Innovations AlphaGuard RoofTec
Slide 16: Consistent Financial Performance
RPM INTERNATIONAL INC. Consistent Financial Performance
Slide 17: Balanced Business = Steady Growth
Balanced Business = Steady Growth RPM INTERNATIONAL INC. Consolidated Sales +8.5% +11.7% +8.1% +7.2% +5.0% Net Income +16.1% +11.5% +14.5% +20.9% +10.7% Note: Specialty Products Holding Corp. (SPHC) was deconsolidated on May 31, 2010 and reconsolidated on Jan. 1, 2015. Net income and EBIT exclude on
Slide 18: Consistent Financial Performance: 30-Year Growth Profile
RPM INTERNATIONAL INC. Consistent Financial Performance: 30-Year Growth Profile $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 Sales $0 $50 $100 $150 $200 $250 $300 $350 Net Income 10.6% 30-yr. CAGR 11.9% 30-yr. CAGR Note: Specialty Products Holding Corp. (SPHC) was deconsolidated o
Slide 19: Consecutive Years of Dividend Increases
RPM INTERNATIONAL INC. 41 Consecutive Years of Dividend Increases Acquired Yield on Original Investment + 8.3% 10/9/14 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 $1.10 '73 '75 '77 '79 '81 '83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09 '11 '13 Dividend per share Today
Slide 20: Superior Shareholder Return
RPM INTERNATIONAL INC. Consistent Financial Performance: Superior Shareholder Return Outperform: S&P 500 by 86% Peers by 17% RPM International, Inc. 100.00 109.55 138.24 154.37 101.69 137.38 169.51 197.28 255.99 341.02 405.16 S&P 500 100.00 108.64 133.40 124.47 83.93 101.54 127.90 127.37 162.11 195.
Slide 21: Good Value in a Great Company
RPM INTERNATIONAL INC. Good Value in a Great Company “Hire the best people you can find. Create an atmosphere that will keep them. Then let them do their jobs.” Frank C. Sullivan, 1947