PPG Industries, Inc. · NYSE:PPG
PPG Industries — Q2 2022 Earnings Presentation
15 slides from PPG Industries's earnings presentation, Jul 21, 2022
Slide 1: Second Quarter 2022 Financial Results
Second Quarter 2022 Financial Results Michael H. McGarry, Chairman and CEO Tim M. Knavish, COO Vince J. Morales, CFO John Bruno, VP Investor Relations All content within is proprietary to PPG. Information current as of July 21, 2022.
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: Second Quarter 2022 Financial Highlights
Second Quarter 2022 Financial Highlights Net sales • Selling prices +12% (~15% 2-yr stack); acquisition-related sales +4% up 8% • Sales volumes decreased 4%; Europe demand & China COVID • Order backlogs ~$200 million: aerospace & automotive refinish Adjusted earnings • Raw material cost inflation pe
Slide 4: PPG Second Quarter Net Sales
PPG Second Quarter Net Sales ($ in millions) $5,000 +12% -4% -4% +4% 4,691 $4,500 4,359 $4,000 2Q'21 Price Volume Currency Acquisitions 2Q'22 PPG Y-O-Y Net Sales Trend Selling Price Increase Progression (excluding currency impacts)* vs Last Inflation Cycle This Cycle Selling Price* 2 Year Stack** La
Slide 5: July 2022: PPG Supply Chain and Manufacturing Disruption Trends
July 2022: PPG Supply Chain and Manufacturing Disruption Trends Sequential Quarterly Trend Issue 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 Outlook Severe Severe Slightly Ongoing improvement, Raw material availability Further improvement shortages shortages improving but not to normal levels Further improvement,
Slide 6: Supply deficit continues in Automotive OEM and Aerospace
Supply deficit continues in Automotive OEM and Aerospace Global Light Vehicle Builds 100,000 Comments: 95,000 90,000 • ’20-’22 avg 77 million builds versus 90-95 million pre-pandemic 85,000 • 2022 projection down ~10% from 2019 and ~16% from 2017 (000's) 80,000 75,000 • U.S. dealer inventories & fle
Slide 7: Performance Coatings 2nd Quarter Highlights
Performance Coatings 2nd Quarter Highlights $MM (USD) 2Q22 2Q21 Chg % • Selling price increases of about 15% on a two-year stack basis Net Sales 2,929 2,749 +180 +7% • Sequential improvement in raw material availability and logistics Segment Income 446 454 -8 -2% • Sharply lower Architectural DIY an
Slide 8: Industrial Coatings 2nd Quarter Highlights
Industrial Coatings 2nd Quarter Highlights $MM (USD) 2Q22 2Q21 Chg % • Selling prices increases – up 14% YOY; sequentially higher than 1Q 2022 Net Sales 1,762 1,610 +152 +9% • Segment margins improved sequentially Segment Income 156 190 -34 -18% • Automotive OEM production levels remain well below p
Slide 9: Balance Sheet and Cash
Balance Sheet and Cash Second Quarter Cash and Debt ($ in billions) Second Quarter 2022 Activity and Liquidity 2Q 2022 approximate cash uses $8 7.2 7.1 • Working capital increase due to raw material cost inflation in inventory $7 and higher selling prices in receivables 6.3 6.1 • Capital spending: $
Slide 10: Third Quarter 2022 Financial Projections
Third Quarter 2022 Financial Projections ($ in millions unless otherwise stated) Category Projection Total company sales volumes (YOY) Flat to down a low-single-digit percentage *Adjusted earnings-per-diluted share $1.75 - $2.00 (including ~$0.10 foreign currency impact) Divesture-related net sales
Slide 11: PPG committed to reducing greenhouse gas emissions across the value chain
PPG committed to reducing greenhouse gas emissions across the value chain Scopes 1 and 2 Emission Reduction Roadmap Energy Renewable Asset efficiency energy sourcing electrification • New energy management • Direct investment • Conversion of technologies system standard • Power purchase agreements t
Slide 12: Additional materials and appendix
Additional materials and appendix
Slide 13: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation $ in millions, except EPS Total PPG Second Quarter 2022 Net Income EPS(a) Net Income from Continuing Operations, As Reported $ 443 $ 1.86 Acquisition-related amortization expense 32 0.13 Business restructuring-related costs, net(b) 6 0.03 Transaction-related costs(c) 9 0.
Slide 14: Historical ROS Segment Margin and Adjusted EPS Excluding Amortization
Historical ROS* Segment Margin and Adjusted EPS Excluding Amortization $ in millions, except ROS % 2020 2021 2022 Performance Segment Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 ROS Margin, As Reported 13.5% 17.5% 18.9% 13.8% 16.0% 16.6% 16.5% 14.8% 9.7% 14.4% 12.4% 15.2% Amortization 26 21 22 23 92 29 30 3
Slide 15: 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 15