Sherwin-williams Company (the) · NYSE:SHW
Sherwin-williams Company (the) — The Sherwin-Williams Company — Q4 2020 Earnings Presentation
17 slides from Sherwin-williams Company (the)'s earnings presentation, Jan 28, 2021
Slide 1: 4Q 2020 Results & 2021 Outlook
4Q 2020 RESULTS & 2021 OUTLOOK JANUARY 28, 2021
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation may contain certain "forward-looking statements," as defined under U.S. federal securities laws. These forward-looking statements are based upon management's current expectations, estimates, assumptions and beliefs concerning future events and conditions.
Slide 3: Record Full Year Results
Record Full Year Results ($ in millions, except per share data) 2020 2019 Change • Sales increased 2.6% to record $18.4 billion, Sales $18,361.7 $17,900.8 2.6% driven by strength in DIY, residential repaint, new residential, packaging and coil • 240 basis point improvement in gross margin Gross Prof
Slide 4: 4Q 2020 Financial Performance Highlights
4Q 2020 Financial Performance Highlights ($ in millions, except per share data) 4Q 2020 4Q 2019 Change • Sales increased 9.1%, driven by strong Sales $4,488.8 $4,114.4 9.1% growth in DIY, residential repaint and new residential; and growth in industrial businesses Gross Profit $2,128.7 $1,894.0 12.4
Slide 5: The Americas Group
($ in millions) 4Q 2020 4Q 2019 Change Sales $2,575.7 $2,362.8 9.0% Segment Profit $558.7 $449.4 24.3% THE AMERICAS Segment Margin 21.7% 19.0% 270 bps GROUP • Same store sales increased 9.3% • Strong growth in DIY, residential repaint and new residential • Commercial and property management slightly
Slide 6: Consumer Brands Group
($ in millions) 4Q 2020 4Q 2019 Change Sales $612.8 $539.4 13.6% Reported Segment Profit $60.4 $29.7 103.4% CONSUMER Reported Segment Margin 9.9% 5.5% 440 bps (1) Adjusted Segment Profit $83.4 $58.0 43.8% BRANDS GROUP Adjusted Segment Margin 13.6% 10.8% 280 bps • Sales increased 13.6% as strong Nort
Slide 7: Performance Coatings Group
($ in millions) 4Q 2020 4Q 2019 Change Sales $1,299.7 $1,211.2 7.3% Reported Segment Profit $133.7 ($7.4) n/m PERFORMANCE Reported Segment Margin 10.3% -0.6% 1,090 bps Adjusted Segment Profit (1) $187.6 $162.7 15.3% COATINGS GROUP Adjusted Segment Margin 14.4% 13.4% 100 bps • Sales increased 7.3% ye
Slide 8: Guidance
Guidance FIRST QUARTER 2021 FULL YEAR 2021 • Consolidated sales: up high-single-digits percentage Sales • Increase by mid to high-single-digit percentage year-over-year • TAG: up high-single-digits percentage • Segments • CBG: up mid-teens percentage • TAG: up mid to high-single-digits percentage •
Slide 9: Strong Financial Position
Strong Financial Position Operating Cash Flow Near Term Debt Maturities (1) ($ in millions) ($ in millions) $844.8 $660 $650 $659.9 $500 $25 4Q 2020 4Q 2019 2021 2022 2023 2024 2025 Cash & Liquidity Position Selected Financial Ratios ($ in millions) 12/31/2020 Cash $226.6 12/31/2020 Liquidity Total
Slide 10: Appendix
APPENDIX
Slide 11: Debt Summary
Debt Summary (as of December 31, 2020) Maturities of Long-Term Debt Q4 2020 $1,619 EUR Balance Int. Rate Short-Term: USD Domestic - 0.00% Non-Domestic: 0.1 0.15% $1,250 Short-Term: 0.1 0.15% Long-Term: 4-year EUR, .92% notes due 2021 24.4 0.92% 5-year, 2.75% notes due 2022 260.2 2.75% 10-year, 4.20%
Slide 12: Adjustments to Segment Profit
Adjustments to Segment Profit Three Months Ended December 31, 2020 Three Months Ended December 31, 2019 Performance Performance The Americas Consumer Coatings The Americas Consumer Coatings ($ in millions) Group Brands Group Group Admin Consolidated Group Brands Group Group Admin Consolidated Net ex
Slide 13: Adjustments to Segment Profit
Adjustments to Segment Profit Year Ended December 31, 2020 Year Ended December 31, 2019 Performance Performance The Americas Consumer Coatings The Americas Consumer Coatings ($ in millions) Group Brands Group Group Admin Consolidated Group Brands Group Group Admin Consolidated Net external sales $ 1
Slide 14: Regulation G Reconciliation
Regulation G Reconciliation Adjusted EPS Three Months Ended Three Months Ended December 31, 2020 December 31, 2019 Tax After- Tax After- Pre-Tax Pre-Tax Effect (1) Tax Effect (1) Tax Diluted net income per share $ 4.46 $ 2.66 Trademark impairment - - - 1.31 0.31 1.00 Brazil indirect tax credit - - -
Slide 15: Regulation G Reconciliation
Regulation G Reconciliation Adjusted EPS Year Ended Year Ended December 31, 2020 December 31, 2019 Tax After- Tax After- Pre-Tax Pre-Tax Effect (1) Tax Effect (1) Tax Diluted net income per share $ 22.08 $ 16.49 Trademark impairment - - - 1.31 0.31 1.00 Brazil indirect tax credit - - - (0.54) (0.18)
Slide 16: Regulation G Reconciliation
Regulation G Reconciliation Adjusted EBITDA Three Months Ended Three Months Ended ($ in millions) December 31, 2020 December 31, 2019 Net income $ 407.0 $ 248.6 Interest expense 82.8 83.8 Income taxes 96.9 48.8 Depreciation 68.0 67.1 Amortization 79.2 78.4 EBITDA $ 733.9 $ 526.7 Trademark impairment
Slide 17: Regulation G Reconciliation
Regulation G Reconciliation Adjusted EBITDA Year Ended Year Ended ($ in millions) December 31, 2020 December 31, 2019 Net income $ 2,030.4 $ 1,541.3 Interest expense 340.4 349.3 Income taxes 488.8 440.5 Depreciation 268.0 262.1 Amortization 313.4 312.8 EBITDA $ 3,441.0 $ 2,906.0 Trademark impairment
The Sherwin-Williams Company — Q4 2020 Earnings Presentation on 6ix