(dvw 0rolqh ,oolqrlv - investor.ppg.com/media/files/p/ppg-ir/presentations/investor... · 33*...

81
PPG Industrial Coatings – Information Session East Moline, Illinois May 14, 2018

Upload: others

Post on 24-Sep-2019

2 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

PPG Industrial Coatings – Information SessionEast Moline, Illinois

May 14, 2018

Page 2: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Forward-Looking StatementsThe Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of the Company. 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. Forward-looking statements are identified by the use of the words “aim,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “outlook,” “forecast” and other expressions that indicate future events and trends. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update any forward looking statement, whether as a result of new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our reports to the Securities and Exchange Commission. Also, note the following cautionary statements:

Many factors could cause actual results to differ materially from the Company’s forward-looking statements. Such factors include global economic conditions, increasing price and product competition by foreign and domestic competitors, fluctuations in cost and availability of raw materials, the ability to achieve selling price increases, the ability to recover margins, the ability to maintain favorable supplier relationships and arrangements, the timing of and the realization of anticipated cost savings from restructuring initiatives, difficulties in integrating acquired businesses and achieving expected synergies therefrom, economic and political conditions in international markets, the ability to penetrate existing, developing and emerging foreign and domestic markets, foreign exchange rates and fluctuations in such rates, fluctuations in tax rates, the impact of future legislation, the impact of environmental regulations, unexpected business disruptions and the unpredictability of existing and possible future litigation. However, it is not possible to predict or identify all such factors. Consequently, while the list of factors presented here and under Item 1A of PPG’s 2017 Form 10-K is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in the results compared with those anticipated in the forward-looking statements could include, among other things, lower sales or earnings, business disruption, operational problems, financial loss, legal liability to third parties, other factors set forth in Item 1A of PPG’s 2017 Form 10-K and similar risks, any of which could have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity.

All of this information speaks only as of May 14, 2018, and any distribution of this presentation after that date is not intended and will not be construed as updating or confirming such information. PPG undertakes no obligation to update any forward-looking statement, except as otherwise required by applicable law.

2

Page 3: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

PPG Investor Relations “Deep Dive” Program

3

Year Topic(s) Location

2007 PPG Aerospace PPG aerospace facility Huntsville, AL

2008 SigmaKalon Acquisition Overview Offsite

2010 PPG Asia and PPG Auto OEM Coatings BMW facility Greenville, SC

2011 PPG Automotive Refinish Penske Racing facility Charlotte, NC

2012 PPG Industrial Coatings Harley Davidson facility York, PA

2013 PPG Packaging Coatings Ball Container facility Williamsburg, VA

2014 PPG Architectural CoatingsPPG company-owned stores, Lowes & The Home Depot locations Dallas, Texas

2015 PPG Comex Cabo San Lucas, Mexico

2016 PPG Research and Development Allison Park, PA

2018 PPG Industrial Coatings PPG/John Deere facilities, East Moline, IL

Page 4: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

4

No financial updates will be provided during today’s

presentation.

Page 5: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

5

Today’s Presentation Agenda

2:00pm Industrial Coatings Landscape

Business Segments

Technology and Capabilities

Growth Opportunities

Conclusion

3:45pm Additional Q&A / Wrap-up

Page 6: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

PPG Speakers & Attendees

Tim Knavish Senior Vice President

Industrial Coatings

Jeff OravitzVice President

PPG Coatings Services

Vince MoralesSenior Vice President

& CFO

John BrunoDirector

Investor Relations

6

Page 7: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Operations

70 countriesin nearly

Founded in1883

Headquarters inPittsburgh, PA

47,000+employees Innovation • Color • Sustainability

Global Maker

Paints, CoatingsSpecialty Materialsand

of

Global Leader in:

Industrial

Transportation

Consumer Products

Construction Markets

Aftermarkets

Serving these markets:

2017

$14.8BRevenue

7

Page 8: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Industrial Coatings Landscape

Page 9: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Automotive OEM

Automotive Refinish

Marine

Packaging

Other Transportation

Wood

Powder

CoilGeneral

Industrial

Architectural

Protective

Total Coatings Industry

Market Size $140B

Industrial Coatings

Source: IPPIC Global Market Analysis (2015 – 2020)

Global industrial production growth 3-4% in 20189

Page 10: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

AkzoNobel

Sherwin-Williams

Axalta

Beckers

BASF

NipponHenkel

FRAGMENTED

Industrial Coatings Competitive Landscape

PPG Industrial Coatings

• 10 consecutive quarters of above-market volume growth

• CAGR 6% growth (2007 – 2017)

• Recent acquisitions include: • Crown (2017)

• MetoKote (2016)

• IVC Coatings (2015)

Source: PPG Estimates

Market Size $25 - $30B

Industry fragmentation offers opportunity for growth10

Page 11: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Regional Industrial Production Trends

0.80

0.85

0.90

0.95

1.00

1.05

1.10

1.15

2014 2015 2016 2017 2018 2019 2020

US & Canada

0.80

0.85

0.90

0.95

1.00

1.05

1.10

1.15

1.20

2014 2015 2016 2017 2018 2019 2020

Europe

0.80

0.85

0.90

0.95

1.00

1.05

2014 2015 2016 2017 2018 2019 2020

Latin America

0.80

0.90

1.00

1.10

1.20

1.30

1.40

2014 2015 2016 2017 2018 2019 2020

Asia Pacific

Source: IHS Markit; Indexed to 2014

Global economics forecasted to remain strong11

Page 12: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Industrial Coatings Regional Overview

US & Canada

Europe, Middle East & Africa (EMEA)

Asia Pacific

Latin America

Industry by Region PPG Industrial Sales by Region

US & Canada

Europe, Middle East & Africa (EMEA)

Asia Pacific

Latin America

Source: PPG Estimates

PPG expansion opportunities in Asia Pacific / EMEA12

Page 13: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Selecting a Technology

Technology Decision Factors

Pretreatment

• Used in critical adhesion applications

• Metal substrates• Applied prior to

other coatings layers

Electrocoat

• Superior coverage, adhesion, appearance

• Corrosion resistance

• Metal substrates

Liquid

• All substrates• Best color flexibility• Highest design

options

Powder

• Environmentally friendly

• High efficiency• Multiple substrates

DecisionFactors

SafetyEnvironmental impactAppearance

Substrate protectionCapital investment

Total operating costThroughput

Maximum flexibility to provide solutions to meet customer needs13

Page 14: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

PPG Technology: Bringing Value to our Customers

We Protect and Beautify the World™

Pretreatment Electrocoat Liquid Powder

Functional Properties

Surface Cleaning / Preparation ✔Corrosion Protection ✔ ✔ ✔ ✔

Edge Coverage ✔ ✔ ✔

Heat Resistance / Protection ✔ ✔ ✔

UV Protection ✔ ✔ ✔

Formability After Paint ✔ ✔

Decorative Properties

Vast Color Library ✔ ✔

Vibrant Color Capability ✔ ✔

Array of Textures ✔ ✔

14

Page 15: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Industrial Coatings Technology Offerings

Liquid Electrocoat Powder Pretreatment Coatings Services

North America Europe Asia Pacific South America

AkzoNobel

Sherwin-Williams

Axalta

Beckers

Selected Competitive Offerings

Only PPG offers all technologies globally15

Page 16: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

PPG Provides Value Throughout Entire Process

Design

Product Development

Technology

Start-up

Operating Efficiency

• Color design centers• Color styling

• End-user, Voice of Customer research

• Paint process design

• Speed to market• Customer specifications

• Coatings research• Analytical capabilities

• Certified parts testing• Formula optimization

• Product customization• OEM product approvals

• Pretreatment• Electrocoat

• Liquid• Powder

• Specialty products• Resin design & production

• Secure Launch Excellence™• Rapid production ramp-up• Operator training

• Global supply chain• Environmental permitting

• Inventory management• Coatings Services

• Line support• Cost reduction projects

• Statistical analysis

16

Page 17: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

PPG Industrial Coatings Business Segments

Page 18: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

18

PPG’s Primary End-Uses Served

Building Products Interior

Transportation

Building Products Exterior

Coil Electronic Materials General Finishes

Heavy-Duty Equipment

AppliancesAuto Parts &Accessories

Functional (APAF)

Page 19: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

PPG Industrial Coatings Segment Overview

Heavy Duty Equipment

TransportationBuilding

Products -Exterior

CoilElectronicMaterials

General Finishes

ApplianceAutomotive

Parts -Functional

Building Products -

Interior

Estimated SegmentSize

$1B $1B $2B $3B $2B $7B $1B $3B $6B

Top 3 Share %

35-40% 30-35% 30-35% 40-45% 10-15% 30-35% 30-35% 30-35% 20-25%

Number of Customers

Hundreds Thousands Thousands Hundreds ThousandsTens of

ThousandsHundreds Thousands Thousands

Macro Drivers

• Populationgrowth

• Infrastructure growth

• Farm income

• Emerging region growth

• Rise in logistics demand

• Non-resconstruction

• Non-res construction

• Residential construction

• Technologyadvances

• Consumer preferences

• Mobility trends

• Global GDP• Industrial

Production

• Residentialconstruction

• Emerging middle class

• Automotive builds

• Emergingregion growth

• Residentialconstruction

• Furniture growth

• Design changes

Technologies Used

Source: PPG Estimates

PPG portfolio enables opportunities across many end uses19

Liquid Electrocoat Powder Pretreatment Coatings Services

Page 20: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Heavy Duty Equipment

Segment

• Only PPG provides all technologies• Expertise with OEMs / approvals• Global reach• On-site technical support• Coatings Services

PPG Value Proposition

• ~$1 billion industry; recovering• Agricultural and lawn• Construction and mining• Fork trucks, cranes, equipment

PPG is capitalizing in recovering and globalizing industry 20

Page 21: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

PPG SPECTRACRON®

Direct-to-Metal (DTM) Topcoats

PPG SPECTRACRON® HPPPrimerGroundbreaking corrosion control

Robust application with fewer passes required

Driving advanced solutions in a mature industry21

Page 22: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Segment

• Corrosion protection• Ultraviolet durability• Leverage PPG scale, technologies• Global reach and service

PPG Value Proposition

• ~$1 billion industry• Flatbeds and truck trailers• Rail, containers• Motorcycle (depicted next)

Transportation Coatings

Utilizing expertise across PPG Automotive, Refinish and Industrial businesses22

Page 23: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Motorcycle Coatings: Diversity of ApplicationsSpeedHandle

HandleSeat

MufflerCover

Muffler

Side stand

StartSwitch

CycleBody

Fender

Hub

Shock Absorber

Wheel

High-growth segment in emerging markets23

Page 24: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Segment

• Industry leading PPG Duranar TM

• Full range of finishes, colors, glosses• Color match capability• Engineered to meet industry specs

PPG Value Proposition

• ~$2 billion industry• External building walls• Siding panels and accents• Poles and railings

Building Products Exterior

Strong macroeconomic trends supporting commercial construction24

Page 25: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Coatings are optimal for building restoration• High-performance product used in industry for

30 years• Superior weathering characteristics• Benefits of the powder coatings process

PPG CORAFLON®

Portfolio responsive to changes in commercial building specifications25

Page 26: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Segment

• Industry-leading color database• World-class color match• Good-better-best portfolio• Global reach

PPG Value Proposition

• ~$3 billion industry• Transportation• Roofing, gutters• HVAC, garage doors

Coil Products

Diversity of product offerings to penetrate many segment and geographies26

Page 27: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Coil Building Products Protect the Exterior

OR

27

Page 28: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Coil: Value-Tier Building and Construction

End Uses

• Trim coil

• Siding

• Gutters

• Downspouts

• Flashing

PPG Products Supplied

Good

28

Page 29: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Coil: Middle-Tier Building and Construction

End Uses

• Roof and side walls for

commercial and

residential buildings

BetterPPG Products Supplied

29

Page 30: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Coil: High-End Building and Construction

End Uses

• Roofing

• Siding

• Architectural panels for

building facades

BestPPG Products Supplied

30

Page 31: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Electronic Materials

Segment

• Rapid product innovation • Integrated styling and design support• Partnering with complex supply chain• Global support for OEMs

PPG Value Proposition

• ~$2 billion industry• Asia-based supply chain• Decorative, conductive, transparent• Laptops, tablets, mobile phones• Wearable and smart home devices

Touchscreens and mobility accelerate future growth31

Page 32: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Electronic Materials

PPG can enhance and protect almost every surface of your touchscreen device

1

3

Cover Lens

Frame Bezel

Back Cover/ Battery Cover

High-Definition Display

4

5

2Touch

Sensor

Fingerprint Sensor

Anti-SmudgeCoating

With PPG Coating

No coating

Water beads

Water pools

Minimal smudging

Pronounced smudging

PPG has technology and innovations for all layers32

Page 33: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Appliance

Segment

• Color vibrancy• Improve customer productivity• Global reach• Low curing temperatures

PPG Value Proposition

• ~$1 billion industry • Household and commercial appliances• Electrical boxes, HVAC equipment

Focus on global customers and high-value segments33

Page 34: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

PPG ENVIROCRONTM

EXtreme Mar Resistance (XMR)• High mar and scratch resistance• Cost-effective customer solution• Ideal for highly handled parts

34

Page 35: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Automotive Parts & Accessories

Segment

• Only PPG provides all technologies• High corrosion and heat resistance• Meet extreme durability requirements• Mixed-metal substrates• Leverage PPG OEM relationships

PPG Value Proposition

• ~$3 billion industry• Frames, functional items, trim, interior• Aluminum and steel wheels

Focus on global customers and high value segments35

Page 36: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

PPG POWERCRON® & PPGFRAMECOATTM Electrocoat

50% of the world’s carsare protected by PPG’s Powercron products

• World-class corrosion protection• High-edge coverage• Low-VOC• Improved customer productivity

Industry-leading Electrocoat technology36

Page 37: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Building Products - Interior

Segment

• Low-VOC and water-based offerings• Global reach / relationships• Solutions for total finishing process

PPG Value Proposition

• ~$6 billion industry• Flooring, windows, doors, molding• Furniture• Evolving substrates

Historical focus on higher value wood segments37

Page 38: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Wood Coatings Layers

Stains: PPG RAYCRONTM &PPG ENVIRONTM

Primers: PPG DURAGRIP &Fillers: PPG RAYCRONTM

Abrasion-Resistant Sealers: PPG RAYCRONTM & PPG DURETHANETM &PPG CLARITAGETM

Sanding Sealers: PPG RAYCRONTM & PPG DURETHANETM and

Tinted Sealers: PPG RAYCRONTM

Topcoats: PPG RAYCRONTM & PPG DURETHANETM & PPG CLARITAGETM

Full portfolio to meet needs of wood flooring customers38

Page 39: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

General Finishes

• Only PPG provides all technologies• Small-batch manufacturing capability• Global footprint / supply position

PPG Value Proposition

Segment

• ~$7 billion industry• Highly diverse end-uses (depicted next)

• Diverse customers / many competitors

Color match capabilities to meet critical needs of diverse customer base39

Page 40: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

General Finishes Segmentation

Office Furniture Pipe & Tube Electrical Wire

Tools Fasteners Enclosures Shelving

Solar Trailer Hitches Light-Duty Equipment Sports & Recreation

40

Page 41: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

PPG Technology and Capabilities

Page 42: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

PPG Coatings Innovation CenterAllison Park, PA

250+ researchers focused on developing market-changing coatings technology

500+ patents in past 10 years

• Synthesis

• Formulation

• Application

• Analytical Capability

Core Activities

42

Page 43: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

PPG Application Labs Serve Customers Globally

Liquid Coatings

Powder Coatings

Electrocoat

Pretreatment

USCALocations

LALocations

Asia-Pacific Locations

Countries supported by labs

PPG lab

EMEA Locations

43

Page 44: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Example: PPG Industrial Coatings Global Wood Application Center

Capability to replicate any wood industry process

44

Page 45: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

PPG Color Resources Deliver Value

PPG Services

• Color styling: color design / development• Color show: presentation of color trends• Styling kit: coated panels demonstrating

trends; released annually• Color workshop: customer is onsite for

design-oriented color development

PPG Value Proposition

• Data-driven focus• Convey trends across industries• Real-time color development• Drives process efficiency

45

Page 46: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Phase I Phase II Phase III Phase IV

Documenting Customer Requirements

Product Development and Application Validation

Product Trial Planning and Execution

Product Commercialization and Production Review

PPG’s four-phase process that accelerates the development of new coatings, colors and formulations, and transitions them quickly and seamlessly into customer manufacturing processes

Differentiated service strengthens customer partnerships46

Page 47: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

PPG KNOWLEDGE COLLEGETM Courses and Seminars

Liquid Coatings

Powder Coatings Electrocoat Pretreatment

PPG experts engage and educate customers to optimize performance47

Page 48: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Liquid CoatingsValue and product offerings

Products

A complete line of alkyds, urethanes, epoxies and acrylics, including:

• SPECTRACRON® Solvent-based primers and topcoats

• AQUACRONTM Water-based primers and topcoats

• VELVECRONTM Soft-touch coatings

• RAYCRONTM UV-cured coatings

48

Page 49: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Liquid Highlight: PPG DURASTARTM ULTRA-COOLTM Coatings

Product Value Proposition

• Application for metal roofing and side walls

• Enables lower building temperature

• Reduces energy usage (lower air conditioning costs)

• Retains color and gloss levels

• Many colors meet the cool roof requirements for LEED® and ENERGY STAR®

PPG DURASTARTM ULTRA-COOLTM coatings provide an alternative to traditional materials49

Page 50: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Powder CoatingsValue and product offerings

Products

Comprehensive mix of acrylic, epoxy, polyester,epoxy polyester hybrid and urethane coatings, including:

• DURANARTM PVDF fluoropolymer coating

• CORAFLON® FEVE fluoropolymer coating

• ENVIROCRONTM Polyester powder coating

• ENVIRACRYL® Acrylic powder coating

• VIVATITM Blending toners

50

Page 51: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Powder Highlight: PPG Envirocron® EXTREME PROTECTION

Product Value Proposition

• Innovative dual-coat powder coating system

• Surpasses automotive industry standards for cyclical corrosion

• Market-leading chip resistance

• Exceptional application transfer efficiency; consistent film builds

• Allows for reclaim & recycle, providing cost and environmental advantages

PPG Envirocron® EXTREME PROTECTION provides market-leading chip resistance51

Page 52: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

ElectrocoatValue and product offerings

Products

Comprehensive mix of anodic and cathodic products, including epoxies and acrylics.

• POWERCRON® Industry-leading electrocoatthat delivers uniform film build and high yieldrates

• FRAMECOATTM II Specially formulated for automotive parts and accessories and other complex parts

• ELECTROCOLOR® Coatings for electronics

52

Page 53: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

53

Electrocoat Highlight: PPG Powercron® AdvantEdge™

Product Value Proposition

• Best in class edge corrosion resistance

• Excellent throwpower

• Low cure temperature provides energy savings and reduced carbon emissions

• Reduced environmental impact

• Applications for automotive parts and accessories, heavy duty equipment and fasteners

Page 54: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Pretreatment ProductsValue and product offerings

Products

Complete line of pretreatment products and a variety ofother solutions that strengthen, protect and enhance theproduction and presentation of products.

• Cleaners

• Phosphates

• Sealers

• Solvents

• Engineered products

• Specialty and booth maintenance products

54

Page 55: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Pretreatment Highlight: PPG ZIRCOBOND® Industrial Treatment

Zirconium-based thin-film pretreatment system

Zircobond Zn Phosphate

Traditional Zinc Phosphate

Degreasing DI Rinse

Empty

Sealer

DI Rinse

Phosphate

Zircobond

Degreasing

Degreasing

Zircobond Treatment (ExistingLine)

Zircobond DI Rinse

Zircobond Treatment (Greenfield)

Product Value Proposition• Light-weighting enabled• Reduced applied costs• Sustainability

• Lower water & energy usage• Less waste generation

Energy efficient solution over multiple substrates55

Page 56: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Sustainability: Our Vision / 2025 Goals

To be the world’s leading coatings company by consistently delivering high-quality, innovative and sustainable solutions that customers trust to protect and beautify their surroundings.

56

Products

reduction in energy consumption intensity from a 2017 baseline

Page 57: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Looking Ahead to Mobility Changes

Advantaged Battery Performance

Comfort & Utilityon Shared Interiors

Light-Weight Vehicle and Increased

Functionality

ImprovedLIDAR, Radar, InfrastructureCommunication

57

Page 58: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Only PPG provides all technologies globally

PPG technology initiatives are aligned with evolving customer requirements and regulations

PPG provides full range of support services to our customers

PPG provides global reach and leverage from all PPG businesses

PPG Industrial Coatings Technology Summary

58

Page 59: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Growth Opportunities

Page 60: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

2010 2017

PPG Industrial Coatings Delivers Consistent Growth

Sales Growth9% CAGR

*Stated in constant currency

Growth Drivers

• Geographic expansion

• New product launches

• Expanding customer relationships

• Developing new segments

• Global infrastructure spending

• Acquisitions

Demonstrated historical above-industry growth60

Page 61: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

• Global business covering mature markets plus all key emerging markets

• Attractive customer mix, ranging from global OEMs to local manufacturers

• Many different segments & sub-segments

• Diversity of technology offerings

• Ten+ application methods

• Fast-changing environmental standards

• Industry participants are highly fragmented

Industry Complexity = PPG Opportunity

61

Page 62: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Customer Relationships

• Solve problems for our customers

• PPG Coatings Services opportunities

• Build long-term relationships / partnerships

• Utilize PPG’s scale / geographic reach

PPG Growth Strategy: Make Choices, Focus, Deliver

High-Growth Opportunities

• Build strength in high growth opportunity segments:• Electronic Materials

• General Finishes

• Transportation

Geographic Expansion:

• Leverage footprint of other PPG businesses

• Invest for growth: India, China, Vietnam

• Leverage scale / geographic reach

Acquisitions:

• Expand track record of successful Industrial Coatings acquisitions

• Leverage PPG integration expertise

Focus in a complex industry drives growth62

Page 63: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

• Support global PPG customers providing equipment, coatings and service

• Strengthen customer relationships

PPG Coatings Services

Strategic Fit

Growth Potential

• Expand in emerging markets: China, India, Southeast Asia

• Leverage automation to improve application efficiency and lower cost

• Grow with the combination of the MetoKote (2016) and Crown Group acquisitions (2017)

• Grow by leveraging multiple platforms: coatings, services and equipment

63

Page 64: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Oil

Auto

Construction

Equipment

Agriculture

Truck

Extrusion

Consumer

Appliance

Furniture

Recreation

Military Flooring

Other

Coatings Services Industry

$45 - $50 billion services industry

• Focus segments* align well with Industrial Coatings

• Services are supplied from a diverse, fragmented base of coaters globally

• Outsourcing of the coatings process is growing

*Circled industries are PPG focus areas

Coatings services provides additional industry access 64

Source: PPG Estimates

Page 65: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Coatings Services Line Example

Parts arrive from customer

Pallets unloaded from truck

and unpacked

Parts are scheduled

and staged for processing

Parts are racked

onto line

Parts processed per customer specification:PretreatmentElectrocoat

LiquidPowder

Parts unrackedfrom line and into

containers

Parts shipped to customer or next process

Containers palletized

for shipping

Pallets loaded

onto truck

Parts are monitored and managed by proprietary internal tracking system

PPG tracks and processes >2 million parts per day65

Page 66: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

PPG Coatings Services Footprint

US Locations

25 locations:

Customer Sites

General Purposes

Asia PacificLocations

Taiwan

Mexico Locations

8 locations:

Customer Sites

General Purposes

Europe Locations

7 locations:

Customer Sites

General Purposes

Significant growth opportunities remain66

Page 67: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

PPG Coatings Services Capabilities

• Perform coating of customer parts as an outsourcing solution

• Manage entire coating application process• Compliments the supply of coatings• Sold to OEMs and tier component suppliers

Application Services

PPG Value Proposition

• High quality and performance• Delivery speed and efficiency• Proprietary inventory tracking, data

collection and process control systems• Lower total landed cost for our customers

67

Page 68: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Services are Supplied Through Multiple Channels

• PPG located inside or close to customer facility

• Process parts used by the specific customer assembly plant

• PPG manages the entire coatings process & multiple technologies

• Greatly reduces supply chain costs and turnaround time

Customer Specific Service Centers

PPG: 13 Locations

General Purpose Service Centers

Technology Specific Service Centers

• PPG located inside or close to customer facility

• PPG uses advanced coatings technologies and application capabilities for specific customer requirements

• Frequently provide additional value-added services beyond coating

• Customer sends parts to coater location for processing

• PPG processes parts and either returns them to customer or sends them to next assembly process

• Geographic proximity

PPG: 7 Locations PPG: 21 Locations

68

Page 69: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Coatings Services Equipment Design

• Leverages in-house expertise• Solve customer problems with design and

supply of application equipment• Compliments the supply of coatings and

services

Application Equipment

PPG Value Proposition

• High operating efficiency and uptime• Modular, re-deployable engineering designs

increase flexibility of equipment solutions• Ease of operation and maintenance reduce

customer complexity and costs• Capability across all coatings technologies

69

Page 70: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Customer Relationships

• Solve problems for our customers

• PPG Coatings Services opportunities

• Build long-term relationships / partnerships

• Utilize PPG’s scale / geographic reach

PPG Growth Strategy: Make Choices, Focus, Deliver

High-Growth Opportunities

• Build strength in high growth opportunity segments:• Electronic Materials

• General Finishes

• Transportation

Geographic Expansion

• Leverage footprint of other PPG businesses

• Invest for growth: India, China, Vietnam

• Leverage scale / geographic reach

Acquisitions

• Expand track record of successful Industrial Coatings acquisitions

• Leverage PPG integration expertise

Successful track record with bolt-on acquisitions70

Page 71: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

PPG Industrial Acquisitions Since 2000

APPG JV (India)

BASF NA Coil

Spraylat Coatings

IVC Coatings

MetoKote

The Crown Group

2000 2017

SigmaKalon

2010

Ameron / Dongju (Korea)

AkzoNobel

Sherwin-Williams

Axalta

Beckers

BASF

NipponHenkel

FRAGMENTED

Source: PPG Estimates

Market Size $25 - $30B

Variety of acquisition opportunities remain71

Page 72: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

PPG IVC Acquisition Facts• Acquired in 2015

• Sales over $100MM

• Privately held company

• Six manufacturing facilities

• New plant in southern China

• Southeast Asia presence

• 70% powder / 30% liquid

Update• Focus in metal office furniture

• Sales exceeding expectations

• Expanded powder capabilities

• Expanding southern China plant

• Exceeding cost synergies

Sales and cost synergies exceeding expectations72

Page 73: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Customer Relationships

• Solve problems for our customers

• PPG Coatings Services opportunities

• Build long-term relationships / partnerships

• Utilize PPG’s scale / geographic reach

PPG Growth Strategy: Make Choices, Focus, Deliver

High-Growth Opportunities

• Build strength in high growth opportunity segments:• Electronic Materials

• General Finishes

• Transportation

Geographic Expansion

• Leverage footprint of other PPG businesses

• Invest for growth: India, China, Vietnam

• Leverage scale / geographic reach

Acquisitions

• Expand track record of successful Industrial Coatings acquisitions

• Leverage PPG integration expertise

PPG continues to make significant organic growth investments73

Page 74: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Sriperumbudur, India

Vietnam Powder Investment

Zhangjiagang, China Resin

Monterrey, Mexico

Investing for the FutureLipetsk, Russia

74

Dahej, India

Page 75: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

2012 2017

Industrial Coatings Growth in China

8% CAGR

*Stated in constant currency

PPG China Sales GrowthChina Industrial Production

100%

110%

120%

130%

140%

150%

160%

170%

2012 2013 2014 2015 2016 2017 2018 2019 2020

5% CAGR

Source: IHS Markit; Indexed to 2011

PPG outpacing industry growth rate75

Page 76: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Finally, Our People …….

My confidence in executioncomes from our people

Dedicated Industrial Coatings associates safely deliver world-class products and service to our customers 365 days a year.

76

Page 77: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

77

Summary

Industrial is the second largest segment within the coatings industry at $25-$30B

PPG’s scale positions us well for growth

Global footprint supports growth in emerging regions

Consistent, global product and service supply valued by multi-national customers

Investment in innovation enables PPG to provide differentiated solutions

Only PPG offers all technologies globally

Technology portfolio and resources aligned with evolving regulations

Complexity of end-uses, technologies and application methods provide opportunity for growth

Page 78: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Thank you for time and interest!

Spectracron, Coraflon, Enviracryl, Powercron, Zircobond, Electrocolor, and Colorful Communities are registered trademarks of PPG Industries Ohio, Inc.

The PPG Logo, Claritage, Secure Launch Excellence, Ultra-Cool, Duranar, Durastar, Environ, Plasticron, Duraform, Envirocron, Framecoat, Raycron, Durethane, Aquacron, Vivati, and Velvecron are trademarks of PPG Industries Ohio, Inc.

John Deere and the Deer Logo are registered trademarks of Deere & Company.

NHL, and the NHL Shield are registered trademarks of the National Hockey League.

© 2018 PPG Industries, Inc. All Rights Reserved

Page 79: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

Additional Q&A / Wrap-up

Page 80: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

PPG Executive Profiles

Timothy M. KnavishSenior Vice President,Industrial Coatings

Timothy M. Knavish is senior vice president, industrial coatings, PPG. In addition to global leadership of PPG’s industrial coatings, packaging coatings and coatings services businesses, Knavish is responsible for the global supply management function and operations in PPG’s Asia Pacific region.

Knavish joined PPG in flat glass engineering in 1987, based at the corporate headquarters in Pittsburgh. He then advanced through roles including process engineer, supervisor of technical services, manager of operations planning and scheduling, and superintendent of production in PPG’s flat glass and former automotive glass businesses before joining the architectural coatings business in 2000, as plant manager for the East Point, Georgia, manufacturing facility.

In 2002, Knavish returned to Pittsburgh as director, supply chain, for the former automotive replacement glass business, and in 2004, he became global director, manufacturing and supply chain, for the automotive refinish coatings business. He moved to Australia in 2005 as managing director, Australia and New Zealand coatings, and general manager, automotive refinish. In 2007, Knavish assumed responsibility in Troy, Michigan, as general manager, automotive coatings, Americas, and in early 2010, he was named a vice president with the same scope of responsibility. He relocated to Pittsburgh in 2012 as global vice president, protective and marine coatings, and he returned to Troy in March 2016 as senior vice president, automotive coatings. Knavish returned to Pittsburgh in his current role in October 2017.

A native of Pittsburgh, Knavish earned both a bachelor’s degree in mechanical engineering and an MBA from the University of Pittsburgh.

Jeffrey J. OravitzVice President, PPG Coatings Services and President, MetoKote PPG

Since July 1, 2016, Mr. Oravitz has served as vice president, PPG coatings services and president, MetoKote at PPG, a leading coatings and specialty products and services company. He is responsible for more than 3,000 global employees and 40 coatings service centers worldwide. Mr. Oravitz spent over 11 years with MetoKote Corporation, Lima, Ohio, a coatings services company which applies coatings to customers’ manufactured parts and assembled products throughout North America and Europe, which PPG acquired in 2016. He was president and chief executive officer, MetoKote from 2011 to June, 2016; global vice president, business development from 2009 to 2011; vice president, North American operations from 2008 to 2009; and vice president, North American in-plant businesses from 2005 to 2007. He also served on the board of directors of MetoKote Corporation from 2011 to 2016. Previously, Mr. Oravitz served at PPG for 20 years from 1985 to 2005 in a variety of increasingly responsible technical, commercial, and management roles in several coatings businesses.

Mr. Oravitz holds a bachelor in science degree in chemistry and a master of business administration degree from the University of Pittsburgh, Pittsburgh, Pennsylvania, both with Honors.

Since March 2017, Mr. Oravitz is a member of the board of directors of The Ohio Manufacturers’ Association and he previously was a member of the board of directors of The Electrocoat Association from 1997 to 1999.

80

Page 81: (DVW 0ROLQH ,OOLQRLV - investor.ppg.com/media/Files/P/PPG-IR/presentations/investor... · 33* 3urylghv 9doxh 7kurxjkrxw (qwluh 3urfhvv 'hvljq 3urgxfw 'hyhorsphqw 7hfkqrorj\ 6wduw

PPG Executive Profiles

Vincent J. MoralesSenior Vice President and Chief Financial Officer

Vince Morales is senior vice president and chief financial officer of PPG. He serves on the company’s executive and operating committees.

Morales joined PPG in the corporate controller’s office, Pittsburgh headquarters, in 1985. He then advanced through finance and accounting assignments at PPG facilities such as supervisor, shared accounting services, at the Chillicothe, Ohio, shared services center and director, information and financial services, at the former PPG glass plant in Mount Zion, Illinois.

Morales returned to Pittsburgh in 2000 as manager, chemical revenue recognition, and then became director, internal financial reporting, in 2001. He was named director, investor relations, in 2004 and then promoted to vice president in 2007. Morales added responsibility as corporate treasurer in 2015. He was appointed vice president, finance, in June 2016, and he assumed his current role in March 2017.

A native of Pittsburgh, Morales earned a bachelor’s degree in accounting from Robert Morris University and a Master of Business Administration from the Ohio State University.

John BrunoDirector, InvestorRelations

Since July 1, 2017, John Bruno has served as director, investor relations at PPG, a leading coatings and specialty products and services company based in Pittsburgh, Pennsylvania. He oversees all of PPG’s interactions with the investment community.

Bruno has broad financial and leadership experience in his over 20 years with PPG since 1995. Before his current role, he was located in Hong Kong as chief financial officer, Asia Pacific, from November 2013 to June 2017, responsible for all finance matters in the region and overseeing approximately 300 employees. Prior to that, Bruno was located in Pittsburgh as director, corporate audit services, including an appointment as the Secretary of the Audit Committee of the PPG Board of Directors from December 1, 2009 to November 1, 2013, and an additional interim chief compliance officer role from April to November 2013. From 2007 to 2009, he was located in Rolle, Switzerland to support the integration of PPG’s SigmaKalonacquisition and then serving as corporate controller, Europe, Middle East and Africa. His previous roles included senior finance positions in the automotive replacement glass, insurance and services businesses and in corporate development. Prior to joining PPG, Bruno spent six years in financial positions at United States Steel Corporation from 1989 to 1995 and was an adjunct accounting professor at Duquesne University, Pittsburgh, Pennsylvania, from 2000 to 2007.

Bruno holds bachelor of science in finance and master of business administration degrees from Duquesne University and is an active certified public accountant.

81