Sherwin-Williams Company (the) · NYSE:SHW
Sherwin-Williams Company (the) — The Sherwin-Williams Company — Financial Community Presentation 2014
19 slides from Sherwin-Williams Company (the)'s conference presentation, May 22, 2014
Slide 1: Company Overview
Company Overview John Morikis President & Chief Operating Officer
Slide 2: Financial Highlights (Non-GAAP)
Company Overview Financial Highlights (Non-GAAP) 20121 20132 % Chg. Net Sales $9.53B $10.07B +5.6% EBITDA $1,209M $1,413M +16.8% Net Income $680M $787M +15.8% % Sales 7.1% 7.8% Earnings Per Share $6.49 $7.60 +17.1% Net Operating Cash $937M $1,119M +19.4% Dividends Per Share $1.56 $2.00 +28.2% Return
Slide 3: Financial Highlights 1Q-14 vs 1Q-13 (GAAP)
Company Overview Financial Highlights 1Q-14 vs 1Q-13 (GAAP) 1Q-13 1Q-14 % Chg. Net Sales $2.17B $2.37B +9.2% EBITDA $230.3M $231.4M +0.5% Net Income $116.2M $115.5M -0.6% % Sales 5.4% 4.9% Earnings Per Share $1.11 $1.14 +2.7% Financial Community Presentation – May 22, 2014
Slide 4: Financial Highlights 1Q-14 vs 1Q-13 (Non-GAAP)
Company Overview Financial Highlights 1Q-14 vs 1Q-13 (Non-GAAP) 1Q-13 1Q-141 % Chg. Net Sales $2.17B $2.27B +4.7% EBITDA $230.3M $250.6M +8.8% Net Income $116.2M $127.5M +9.7% % Sales 5.4% 5.6% Earnings Per Share $1.11 $1.26 +13.5% 1 Figures exclude NA Comex Stores Financial Community Presentation –
Slide 5: Reportable Segments
Reportable Segments Paint Stores Group Consumer Group Global Supply Chain Diversified Brands Latin America Coatings Group Global Finishes Group Automotive Finishes Protective & Marine Product Finishes Financial Community Presentation – May 22, 2014
Slide 6: Revenue & Profit by Segment - 2013
Company Overview Revenue & Profit by Segment - 2013 20% Segment Revenues: $10.17B Segment Profit: $1.44B 15% Average: 14.2% Profit as a % of Sales Latin America 10% Global Finishes Paint Stores Consumer 5% 0% 20% 40% 60% 80% 100% Share of Revenue Financial Community Presentation – May 22, 2014 Note:
Slide 7: Key Points
Key Points ◆ Global Expansion ◆ Controlled Distribution ◆ Pricing Discipline ◆ Brand Power ◆ Leading Technology ◆ Talent Supply Chain ◆ Acquisitions Financial Community Presentation – May 22, 2014
Slide 8: Global Expansion
Global Expansion PSG/Consumer - Architectural - P&M - OEM Finishes Global Finishes - Auto Finishes - Protective & Marine - OEM Finishes Latin America Coatings Group - Architectural - P&M - OEM Finishes - Auto Finishes Financial Community Presentation – May 22, 2014
Slide 9: Controlled Distribution
Controlled Distribution Controlled Distribution Accounts for ~75% of Consolidated Sales Financial Community Presentation – May 22, 2014
Slide 10: Controlled Distribution Advantages
Controlled Distribution Advantages ◆ Direct Relationship with Customer / End-User ◆ Control Over Brands, Pricing, Inventory, Staffing ◆ Control Pace and Place of Growth Financial Community Presentation – May 22, 2014
Slide 11: Pricing Discipline
Pricing Discipline $ Gross Profit % of Sales Raw Material Index 5,000 4,617 $4,617 4,222 $4,222 4,500 $3,598 3,745 $3,745 4,000 3,413 $3,413 3,598 3,499 $3,499 $3,481 3,481 3,263 $3,263 3,500 $ Millions 3,000 46.0 44.8 44.3 45.3 1.6 44.9 2,500 43.7 43.8 42.7 2,000 1.4 1,500 1,000 1.2 500 1.0 0 2006
Slide 12: Brand Power
Brand Power Leading U.S. Brand Awareness #1 Architectural Paint Brand #1 Stain & Protective Finish Brand #1 Aerosol Paint Brand Awareness #1 Auto Specialty Paint Brand #1 Painting Tool Brand #1 Wood Sealer Brand Financial Community Presentation – May 22, 2014
Slide 13: Growing North American Brand Portfolio
Brand Power Growing North American Brand Portfolio Financial Community Presentation – May 22, 2014
Slide 14: Growing Global Brand Portfolio
Brand Power Growing Global Brand Portfolio Financial Community Presentation – May 22, 2014
Slide 15: Leading Technology
Leading Technology Total Technical Expenditures 160 140 144 140 130 120 101 102 106 102 103 91 95 100 88 $ Millions 80 60 40 20 0 % of 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Sales 1.7 1.6 1.5 1.3 1.3 1.3 1.4 1.3 1.5 1.5 1.4 Financial Community Presentation – May 22, 2014
Slide 16: People Development
People Development Talent Supply Chain In 2013 we… ◆ Hired 1,400 Management Trainees Company Wide ◆ Retained More Than 92% of our Global Workforce ◆ Filled More Than 93% of Openings Internally Financial Community Presentation – May 22, 2014
Slide 17: Keys to Success
Keys to Success ◆ Focus on Market Share Growth and Profit Improvement in Core Businesses ◆ Successful Integration of U.S. and Canada Stores Acquired from Comex ◆ Grow Distribution Organically and by Acquisition ◆ Expand Product Offering through R&D and Acquisitions Financial Community Presentation –
Slide 18: Comex Mexico Update
Comex Mexico Update April 1, 2014: ◆ Seller Notified Sherwin-Williams of Alleged Breach of Our Obligation to Use All Commercially Reasonable Efforts to Secure Regulatory Approval in Mexico April 3, 2014: ◆ Sherwin-Williams Terminated Purchase Agreement and Filed Suit in New York Court Seeking Declar
Slide 19: Introductions
Introductions… Jay Davisson Cheri Phyfer Joel Baxter President President & GM, Diversified Brands President & GM, Global Supply Chain Paint Stores Group Consumer Group Consumer Group Tim Knight George Heath President President Latin America Coatings Group Global Finishes Group Financial Community Pr
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