Financial Data and Key Metrics Changes - PPG Industries reported record financial results for Q2 2023, with sales of $4.9 billion and adjusted earnings per diluted share of $2.25, representing a 24% increase compared to Q2 2022 [26] - The company achieved an aggregate segment margin of approximately 16%, which is 330 basis points higher than Q2 2022 [7][34] - Year-to-date cash generation reached about $620 million, with a significant increase of $750 million year-over-year [28] Business Line Data and Key Metrics Changes - Record second quarter sales were achieved in five of the nine business segments, including aerospace, automotive, automotive refinish, PPG Comex, and protective and marine coatings [27] - The Performance Coatings segment delivered margins near 18%, the highest since 2016 [7] - The architectural business in Europe is expected to stabilize, while DIY demand in the US remains low, with a modest decline anticipated in pro-contractor residential repaint activity [12] Market Data and Key Metrics Changes - Demand for aerospace and auto OEM coatings products is expected to remain robust, as both are still below 2019 demand levels [29] - The company noted that international flights remain 10% below pre-pandemic levels, and there is an estimated supply deficit of about 40 million cars in the automotive sector [29] - Economic conditions in Mexico are robust, with significant nearshoring-related growth expected to benefit the company [10][30] Company Strategy and Development Direction - PPG's enterprise growth strategy focuses on partnering with customers to enhance productivity and sustainability [31] - The company is actively working on restructuring initiatives, expecting an incremental $15 million year-over-year earnings benefit in Q3 [13] - PPG aims to reduce greenhouse gas emissions by 50% by 2030 for scope 1 and 2, and by 30% for scope 3 emissions [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in margin recovery as input costs are expected to moderate, with a significant reduction in supply chain disruptions [33] - The outlook for global industrial production remains cautious, with expectations of lower levels in Q3, but certain industries like aerospace and automotive are anticipated to remain resilient [32] - The company raised its full-year earnings guidance, expecting segment margins to be higher year-over-year for the fourth consecutive quarter [34] Other Important Information - PPG has trimmed about 50% of the excess raw material inventory that it started the year with, with plans to continue reducing inventory levels [66] - The company is seeing a significant amount of nearshoring activity in Mexico, with $48 billion in nearshoring investments in Q1 2023, three times the amount from Q1 2022 [121] Q&A Session Summary Question: Outlook for Industrial Coatings segment margins - Management indicated that segment margins in Industrial are on a recovery journey, with expectations for continued improvement as price versus cost recovery progresses [16][18] Question: Volume outlook for 2023 - Management noted that the recovery in China is slower than anticipated, but they expect continued improvement in industrial activity [54] Question: SG&A as a percent of sales and gross margin - Higher SG&A costs were attributed to performance-based incentives and increased sales leading to higher SG&A expenses [58] Question: Weakness in Pro contractor volumes - Management described a slight sequential decline in Pro contractor volumes, but noted that commercial and maintenance work remains resilient [59] Question: State of the Chinese TiO2 industry - Management confirmed that they are utilizing Chinese TiO2 in various markets, although tariffs make it less cost-effective in the US [61] Question: EPS guidance for Q3 and Q4 - Management explained that the year-over-year EPS improvement is expected to decline in the back half of the year due to lapping strong price quarters from the previous year [82] Question: Impact of wage inflation - Management indicated that wage inflation remains elevated, with an average of about 3% in mature markets and higher in emerging markets [100]

12 Reconciliation: ROS Segment Margin and Adjusted EPS Excluding Amortization | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |---------------------------------------------------|-------|-------|-------------|-------|-------|-------|-------|-------------|-------|-------------------------------------------------------------------------------------------------|-------| | $ in millions, except ROS % \nPerformance Segment | Q1 | Q2 | 2021 \nQ3 | Q4 | FY | Q1 | Q2 | 2022 \nQ3 | Q4 | FY ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ––––––––––––––––––––––––––––––––––––––––––––––––– FORM 10-Q ––––––––––––––––––––––––––––––––––––––––––––––––– ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission file number 1-1687 ––––––––––––––––––– ...

Tim Knavish, President and Chief Executive Officer Vince Morales, Senior Vice President and Chief Financial Officer John Bruno, Vice President Investor Relations We protect and beautify the world® 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 ...

PPG Industries, Inc. (NYSE:PPG) Q1 2023 Earnings Conference Call April 21, 2023 8:00 AM ET Company Participants John Bruno - VP, IR Timothy Knavish - President & CEO Vince Morales - SVP & CFO Conference Call Participants Duffy Fischer - Goldman Sachs Ghansham Panjabi - Baird Stephen Byrne - Bank of America Merrill Lynch John McNulty - BMO Christopher Parkinson - Mizuho David Begleiter - Deutsche Bank Jeff Zekauskas - JPMorgan Vincent Andrews - Morgan Stanley Josh Spector - UBS Aleksey Yefremov - KeyBanc Mic ...

Financial Performance - Net sales for 2022 increased to $17,652 million, up 5.06% from $16,802 million in 2021 [223]. - Net income attributable to PPG for 2022 was $1,026 million, a decrease of 28.8% compared to $1,439 million in 2021 [223]. - Earnings per share from continuing operations, net of tax, was $4.35 in 2022, down 27.6% from $5.98 in 2021 [223]. - Total comprehensive income for 2022 was $981 million, a decline of 24.8% from $1,304 million in 2021 [224]. - Cash from operating activities decreased to $963 million in 2022 from $1,562 million in 2021, reflecting a decline of 38.4% [229]. Assets and Liabilities - Total current assets rose to $7,173 million in 2022, up from $6,774 million in 2021 [225]. - Total liabilities decreased to $14,035 million in 2022, down from $14,940 million in 2021 [225]. - Shareholders' equity attributable to PPG increased to $6,592 million in 2022, compared to $6,286 million in 2021 [225]. - As of December 31, 2022, total receivables amounted to $3,303 million, an increase from $3,152 million in 2021 [279]. - The company's total inventories were valued at $2,272 million as of December 31, 2022, compared to $2,171 million in 2021 [279]. Cash Flow and Investments - Cash and cash equivalents increased to $1,099 million in 2022, compared to $1,005 million in 2021 [225]. - Cash used for investing activities was $461 million in 2022, a significant decrease from $2,404 million in 2021 [229]. - The net increase in cash and cash equivalents for 2022 was $94 million, contrasting with a decrease of $821 million in 2021 [229]. - The company paid dividends totaling $570 million in 2022, compared to $536 million in 2021, marking a 6.3% increase [229]. - Capital expenditures increased to $518 million in 2022 from $371 million in 2021, reflecting a 39.7% rise [229]. Impairment and Charges - The company reported an impairment and other related charges of $245 million in 2022, significantly higher than $21 million in 2021 [223]. - The company recorded impairment charges of $124 million related to indefinite-lived intangible assets and $23 million for definite-lived intangible assets due to the impact of the Ukraine conflict [256]. - In Q1 2022, the company recognized $290 million in impairment and other related charges, including $201 million for long-lived asset impairment and $89 million for other related charges due to the impact of the Russian invasion of Ukraine [290]. - The long-lived asset impairment charges included $124 million related to indefinite-lived intangible assets, $54 million for property, plant, and equipment, and $23 million for definite-lived intangible assets [291]. - The company reported a total of $245 million in impairment and other related charges in 2022, compared to $21 million in 2021 [229]. Debt and Financing - PPG had non-U.S. dollar denominated debt outstanding of $2.6 billion as of December 31, 2022, compared to $1.6 billion in 2021 [202]. - The company’s long-term debt increased to $6.806 billion in 2022 from $6.575 billion in 2021, with a weighted average interest rate of 4.4% [304]. - As of December 31, 2022, PPG had outstanding borrowings of $1.1 billion under the Term Loan Credit Agreement, down from $1.4 billion in 2021 [309]. - PPG's Credit Agreement provides for a $2.2 billion unsecured revolving credit facility, with no amounts outstanding as of December 31, 2022 [314]. - Long-term debt maturities include $303 million in 2023 and $1.396 billion in 2024 [321]. Currency and Interest Rate Exposure - A 10% increase in the value of the euro to the U.S. dollar would have reduced the fair value of PPG's U.S. dollar to euro cross currency swap contracts by $73 million as of December 31, 2022 [201]. - A weakening of the U.S. dollar by 10% against European currencies would have resulted in unrealized translation losses of $293 million as of December 31, 2022 [202]. - The fair value of foreign currency forward contracts was a net asset of $24 million as of December 31, 2022 [200]. - PPG uses interest rate swaps to manage exposure to changing interest rates, with a liability of $20 million for these swaps at December 31, 2022 [331]. - The indicative borrowing rate on a one-month, U.S. dollar denominated borrowing was 4.4% at December 31, 2022 [314]. Pension and Employee Benefits - The projected benefit obligation (PBO) for defined benefit pension plans decreased from $3.534 billion in 2021 to $2.386 billion in 2022, a reduction of approximately 32.5% [361]. - The accumulated benefit obligation (ABO) for all defined benefit pension plans was $2.3 billion as of December 31, 2022, down from $3.5 billion in 2021, representing a decline of 34.3% [361]. - The net periodic benefit cost for pensions in 2022 was a benefit of $18 million, compared to a cost of $14 million in 2021, indicating a positive shift in the financial position [365]. - The market value of plan assets decreased from $2.975 billion in 2021 to $1.974 billion in 2022, a decline of approximately 33.6% [361]. - The company recognized a non-cash pension settlement charge of $50 million in 2021 due to the purchase of group annuity contracts, which reduced pension projected benefit obligations by approximately $175 million [358]. Taxation - The total income tax expense for 2022 was $325 million, a decrease from $374 million in 2021 [346]. - The effective income tax rate for 2022 was 23.5%, an increase of 2.9% from the prior year [346]. - The total amount of unrecognized tax benefits as of December 31, 2022, was $145 million, down from $158 million in 2021 [354]. - The Company recognized a gain of $38 million in Other Comprehensive Income (OCI) related to cross currency swaps in 2022 [338]. - The Company had $4.6 billion of undistributed earnings from non-U.S. subsidiaries as of December 31, 2022 [351].

Tim Knavish, President and Chief Executive Officer Vince Morales, Senior Vice President and Chief Financial Officer John Bruno, Vice President Investor Relations We protect and beautify the world® Forward-Looking Statements All of this information speaks only as of January 19, 2023, 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 othe ...

Financial Data and Key Metrics Changes - The company's Q4 2022 sales reached $4.2 billion, close to record levels from 2021, despite adverse foreign currency translation [9] - Adjusted earnings per diluted share from continuing operations were $1.22, exceeding the midpoint of the guidance provided in October [19] - For the full year 2022, the company achieved record sales of $17.7 billion, although it did not meet its own earnings expectations [24] Business Line Data and Key Metrics Changes - The automotive refinish coatings business gained over 2,000 net new body shop wins, indicating strong demand for its product technology and services [10] - The aerospace business experienced organic sales growth of over 20% year-over-year, driven by a recovering global order book and military-related growth [11] - PPG Comex in Mexico achieved record sales and earnings, surpassing $1 billion in annual sales [18] Market Data and Key Metrics Changes - In Europe, despite soft demand, earnings remained stable due to effective selling price realization and cost management [20] - The company anticipates coatings demand stabilization in Europe beginning in Q2, which is expected to result in higher year-over-year earnings [17] - The U.S. market is expected to benefit from the recovery of aerospace and automotive refinish businesses, supported by strong order books [17] Company Strategy and Development Direction - The company is focused on enhancing its relationship with Home Depot and has launched a new U.S. architectural Pro program [14] - PPG plans to introduce additional sustainable products and unveil new 2030 sustainability goals [16] - The company aims to recover its historical margin profile and achieve mid- to high-teen percentage segment margins [29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in 2022, including cost inflation, geopolitical issues, and supply chain disruptions, but expressed confidence in future earnings growth catalysts [13][25] - The company expects Q1 demand to remain similar to Q4, with potential improvements in supply chain and raw material costs flowing through to the P&L starting in Q2 [25] - Management remains cautious about the impact of a potential second wave of COVID-19 in China on Q1 performance [36][86] Other Important Information - The company has made progress in reducing SG&A as a percentage of sales, achieving a decrease of about 100 basis points [15] - PPG is actively working on cost savings initiatives, particularly in Europe, to address the challenging macroeconomic environment [21] Q&A Session Summary Question: Can the company achieve the consensus EPS target for the full year? - Management is focused on Q1 due to uncertainties but sees multiple potential earnings growth catalysts for 2023 [35] Question: What is the volume outlook for cyclical and less cyclical markets? - The biggest impact is expected from China, with a significant recovery anticipated starting in Q2 [37][39] Question: How is the pricing environment evolving? - The company has maintained pricing momentum, with an 11% increase in Q4 and expects additional price increases in Q1 [44] Question: How does the company view the U.S. architectural market? - The company sees a bifurcation in the market, with strong performance in commercial and maintenance segments despite a slowdown in DIY and new housing construction [48][50] Question: What are the expectations for raw material costs? - Management expects modest raw material deflation in Q1, with significant impacts on the P&L anticipated in Q2 [63][93] Question: How is the backlog in aerospace and other segments? - Aerospace backlogs are historically strong, and the company sees high backlogs in refinish and commercial segments as well [121]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ––––––––––––––––––––––––––––––––––––––––––––––––– FORM 10-Q ––––––––––––––––––––––––––––––––––––––––––––––––– ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission file number 1-1687 ––––––––––––––– ...

PPG Industries, Inc. (NYSE:PPG) Q3 2022 Earnings Conference Call October 20, 2022 8:00 AM ET Company Participants John Bruno - Vice President, Investor Relations Michael McGarry - Chairman & Chief Executive Officer Tim Knavish - Incoming Chief Executive Officer & Chief Operating Officer Vince Morales - Senior Vice President & Chief Financial Officer Conference Call Participants Christopher Parkinson - Mizuho Ghansham Panjabi - Baird Josh Spector - UBS John McNulty - BMO Capital Markets Stephen Byrne - Bank ...