Sherwin-Williams Company (the) · NYSE:SHW

Sherwin-Williams Company (the) — The Sherwin-Williams Company — Investor Presentation (July 2013)

26 slides from Sherwin-Williams Company (the)'s investor presentation, July 2013

  1. Slide 1: Investor Presentation

    Investor Presentation THE SHERWIN-WILLIAMS COMPANY

  2. Slide 2: Forward Looking Statements

    Forward-Looking Forward Looking Statements This presentation today will contain certain “forward forward-looking looking statements” statements , as defined under U.S. federal securities laws, with respect to sales, earnings and other matters. These forward-looking statements are based upon manageme

  3. Slide 3: Discussion Outline

    Discussion Outline • Coatings Market Overview • Sherwin-Williams Overview – Paint Stores Group – Consumer Group – Latin America Coatings Group – Global Finishes Group • Sherwin-Williams Financial Overview The Sherwin-Williams Company - 2nd Quarter 2013

  4. Slide 4: Coatings Demand by Region

    g Demand byy Region Coatings g Share of Global Volume by Category EMEA N. America 28% 24% 31% 26% 33% 19% 24% Asia‐Pacific Asia‐ 22% 37% 30% South America 7% 42% 49% 9% 4% 4% ROW ~ 4% All Coatings OEM Product Finishes Architectural Coatings Special Purpose Coatings The Sherwin-Williams Company - 2nd

  5. Slide 5: Coatings Industry: Top Global Manufacturers - 2012

    Coatings Industry Top Global Manufacturers - 2012 • Top 10 Suppliers Account for ~ 57% Global Share All Others (>15,000 firms) • More M Th Than 15 15,000 000 Companies Make Up the Balance Source: Kusumgar, Nerlfi & Growney, Company Data The Sherwin-Williams Company - 2nd Quarter 2013

  6. Slide 6: U.S. Coatings Industry

    U.S. Coatings Industry Sales ($) Mix by Category Total Coatings Special 2012 Purpose p 1.18 Billion Gallons (+13%) 14% 20.68 Billion Dollars (+11%) Architectural 57% OEM Product Finishes 29% Source: American Coatings Association; Segment Percents Based on Gallons The Sherwin-Williams Company - 2nd Q

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

    U.S. Coatings g Industry y Architectural Coatings Gallons (Millions) 850 800 Milliions of Gallons 750 Sustainable Market Demand ~ 740 – 760 million 700 ~ 65 651 Million o 650 ~ 636 Million 600 550 ~ ACA Estimate ~ S-W Estimate 500 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

  8. Slide 8: Favorable Customer Mix

    Favorable Customer Mix DIY Contractor Shift will Continue 43% 59% 57% 41% Contractor DIY Source: U.S. Dept of Commerce/ACA/Company Estimates The Sherwin-Williams Company - 2nd Quarter 2013

  9. Slide 9: U.S. Channel Share

    U.S. Channel Share Most Recent Purchase by Store Type Do-It-Yourself Contractor Hardware 1.6% Home Centers Paint Stores 61% Mass 90.2% Home Merchants Centers 14% % 6.3% Discount / Other Paint Stores 1.9% Lumber/ 15% Hardware Building Supply 9% 2% Source: PCRP 2011 Source: S‐W Marketing: 2012 The She

  10. Slide 10: Company Overview: 2012 Financial Highlights

    Company Overview 2012 Financial Highlights (Non-GAAP) 12/31/122 12/31/111 % Chg. Net Sales $9 53B $9.53B $8 77B $8.77B 8 8% 8.8% EBITDA $1,209M $965M 25.3% Income $680M $517M 31.5% % Sales 7.1% 5.9% Earnings Per Share $6.49 $4.84 45.4% 1 Excluding IRS Settlement 2 Excluding DOL Settlement The Sherwi

  11. Slide 11: Company Overview: 1H 2013 Financial Highlights

    Company Overview 1H - 2013 Financial Highlights 6/30/13 6/30/12 % Chg. Net Sales $4 88B $4.88B $4 $4.71B 71B 3 6% 3.6% EBITDA $672.1M $579.2M 16.0% Income $373.5M $328.0M 13.9% % Sales 7.7% 7.0% Earnings Per Share $3.57 $3.13 14.1% The Sherwin-Williams Company - 2nd Quarter 2013

  12. Slide 12: Revenue & Profit by Segment - 2012

    Company Overview Revenue & Profit by Segment - 2012 Global Paint Stores Sales: $5.41 Billion Sales: $1.96 Billion Profit: $861.8 $861 8 Million Profit: $147.2 $147 2 Million Profit %: 15.9 Profit %: 7.5 Sales: $1.32 Billion Profit: $216.4 Million Profit %: 16.4 Sales: $836 Million Profit: $81.2 Mill

  13. Slide 13: Paint Stores Group: Top Paint Store Chains

    Paint Stores Group Top 10 Paint Store Chains – North America YE 2012 Est. Est Count 1 Yr Change 3,520 +70 Akzo Nobel/ICI/Glidden 559 +1 PPG 377 ‐2 Comex/Pro / Paint,, Inc. 318 0 Kelly‐Moore 142 ‐8 Dunn Edwards 111 1,801 +2 ‐13 Cloverdale/Rodda 104 0 Diamond Vogel 66 ‐1 1 Benjamin Moore 80 ‐4 Vista 4

  14. Slide 14: Paint Stores Group: Store Penetration

    Paint Stores Group Store Penetration The Sherwin-Williams Company - 2nd Quarter 2013

  15. Slide 15: Consumer Group: End to End Supply Chain

    Consumer Group End to End Supply Chain • 32 Manufacturing Sites • 7 Distribution Service Centers • 400 Tractors / 1,200 Trailers • M More than h 6 6,000 000 E Employees l The Sherwin-Williams Company - 2nd Quarter 2013

  16. Slide 16: Brand Power

    Brand Power Leading U.S. Brand Awareness #1 Architectural Paint Brand #1 Stain St i & Protective P t ti Fi Finish i hBBrand d #1 Aerosol Paint Brand #1 Auto Specialty Paint Brand #1 Painting Tool Brand #1 Wood Sealer Brand The Sherwin-Williams Company - 2nd Quarter 2013

  17. Slide 17: Latin America Coatings Group

    Latin America Coatings Group Architectural Protective & Marine Product Finishes S‐W Stores Dealers Home Centers The Sherwin-Williams Company - 2nd Quarter 2013

  18. Slide 18: Latin America Coatings Group

    Latin America Coatings Group Mexico Venezuela El Salvador Ecuador Perú Brazil Ur g a Uruguay Chile Argentina S-W Operations S-W Licensees The Sherwin-Williams Company - 2nd Quarter 2013

  19. Slide 19: Global Finishes Group

    Global Finishes Group Automotive Aerospace Protective Marine OEM Finishes The Sherwin-Williams Company - 2nd Quarter 2013

  20. Slide 20: Global Finishes Group

    Global Finishes Group The Sherwin-Williams Company - 2nd Quarter 2013

  21. Slide 21: Consolidated Gross Profit

    Consolidated Gross Profit $ Gross Profit % of Sales Raw Material Index 4 222 4,222 3,745 4,000 3,598 3,413 3,499 3,481 3,080 3,263 3,500 3,000 $ Millions 2,500 46.0 1.6 2 000 2,000 44 9 44.9 44.8 44 3 44.3 42.8 43 7 43.7 43.8 42.7 1,500 1.4 1,000 1.2 500 1.0 0 2005 2006 2007 2008 2009 2010 2011 2012

  22. Slide 22: Selling, General & Admin Expense

    Selling, General & Admin Expense $ SG&A % of Sales 3,500 3,196 2,961 3,000 2,597 2,644 2,728 2 513 2,513 2 535 2,535 2,326 $ Millions 2,500 2,000 35 7 35.7 35.1 1,500 33.1 33.8 33.5 32.4 32.2 32.4 1,000 500 0 2005 2006 2007 2008 2009 2010 2011 2012 The Sherwin-Williams Company - 2nd Quarter 2013

  23. Slide 23: Uses of Cash

    Uses of Cash 2008-2012 ($ Millions) 5 Year Net Operating Cash: $4 5-Year 064 2 $4,064.2 Capital Expenditures $644.6 Treasury Stock Purchases $798 5 $798.5 C h Di Cash id d Dividends $2,224.1 $525.9 Acquisitions The Sherwin-Williams Company - 2nd Quarter 2013

  24. Slide 24: Stock Repurchase

    Stock Repurchase 13.20 14.00 12.00 9.00 Shares 10.00 8.10 7.25 8 00 8.00 Millions of S 5.60 5.00 6.00 4.70 4.60 4.00 M 2.00 0.00 2005 2006 2007 2008 2009 2010 2011 2012 Avg. Common Shares Outstanding 141.1 137.3 130.9 119.3 115.4 108.2 103.4 103.3 A Avg. P Price/Share i /Sh $44 14 $44.14 $54 $54.49

  25. Slide 25: Total Debt : EBITDA Ratio

    Total Debt : EBITDA Ratio 84% 88% 98% 113% 103% 141% 1800 1,704 1600 1400 1148 1 209 1,209 Millions 1200 946 924 965 1000 834 $M 800 965 1045 993 600 834 818 400 200 0 2007 2008 2009 2010 2011 2012 Total Debt EBITDA The Sherwin-Williams Company - 2nd Quarter 2013

  26. Slide 26: Dividends Per Share 1979 - 2013E

    Dividends Per Share $2.20 1979 – 2013 2.00 $2.00 $1.80 $1.60 1.46 1.56 1.421.44 1.40 $1.40 1 26 1.26 $1.20 1.00 $1.00 .82 $0 80 $0.80 .68 .60 .62 $0.60 .54 .58 .45 .48 .40 $0.40 .32 .35 .25 .28 14 .16 16 18 .19 .21 .22 .18 $0.20 .06 .08 .10 .12 .13 .14 .01 .04 .05 $0.00 2013E 1979 1980 1981 1982 198

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