PPG Industries, Inc. · NYSE:PPG
PPG Industries — Shareholder Meeting (April 2009)
19 slides from PPG Industries's shareholder meeting presentation, Apr 16, 2009
Slide 1: 2009 Annual Meeting of Shareholders
2009 Annual Meeting of Shareholders PPG Industries, Inc. April 16, 2009
Slide 2: Safety Trends
Safety Trends 1.4 PPG Injury & Illness Rate 1.24 (incidents per 100 workers) 1.2 1.15 0.96 1 0.88 0.79 0.8 0.68 0.6 .46 0.46 0.4 0.2 0 2002 2003 2004 2005 2006 2007 2008
Slide 3: Environmental Trends
Environmental Trends 10 Average Spills and Releases (per 2 million work hours) 8 6 4 3.4 3 3.2 3.2 2 0 2006 2007 2008
Slide 4: Sustainability Report
Sustainability Report ♦ PPG’s first Corporate Sustainability Report ♦ Focus on: ► Business Performance ► Environmental, Health & Safety ► Employees & Workplace ► Community Involvement & Social Performance
Slide 5: PPG's Vision
PPG’s Vision To continue to be the leading coatings and specialty products company
Slide 6: SigmaKalon
SigmaKalon ♦ A leading global producer of decorative, marine & protective and industrial coatings ♦ Completed acquisition in January 2008 ♦ Architectural paint, protective and marine coatings and industrial coatings businesses ♦ Presence in Western Europe; growing positions in emerging regions. ♦ Ac
Slide 7: Auto Glass & Services
Auto Glass & Services ♦ Divested business in September 2008 ♦ Reduces PPG’s exposure to U.S. automotive industry ♦ Pittsburgh Glass Works LLC is owned 60 percent by Kohlberg & Company; approximately 40 percent by PPG
Slide 8: Coatings/Specialty Growth
Coatings/Specialty Growth First Quarter First Quarter 2006 Sales 2009 Sales Glass 7% Glass 21% Chemicals 13% Coatings Optical & Chemicals Specialty Coatings 55% 71% 15% 9% Optical & Specialty 9%
Slide 9: Geographic Balance
Geographic Balance First Quarter First Quarter Eastern 2006 Sales 2009 Sales Europe Eastern 3% ROW Europe ROW Eastern 4% 3% Asia 3% Europe Asia 6% Eastern 6% Europe 13% 5% Western U.S. & Europe U.S. & Canada Canada 18% 48% 70% Western Europe 29%
Slide 10: Segment Sales
Segment Sales 16.0 15.849 Sales ($billions) 12.220 12.0 10.938 8.0 4.0 0.0 2006 2007 2008 Performance Coatings Industrial Coatings Architectural Coatings EMEA Optical & Specialty Materials Commodity Chemicals Glass
Slide 11: Segment Earnings
Segment Earnings 2.0 Earnings ($billions) 1.513 1.549 1.589 1.5 1.0 0.5 0.0 2006 2007 2008 Performance Coatings Industrial Coatings Architectural Coatings EMEA Optical & Specialty Materials Commodity Chemicals Glass
Slide 12: Restructuring
Restructuring ♦ First Restructuring Initiative ► Announced in September 2008 ► Cost savings of $100 million annually ► Closure of • Geldermalsen, Netherlands • Clarkson, Canada • Owen Sound, Canada ► Employment reduction of approximately 1,300
Slide 13: Quarterly Comparison
Quarterly Comparison Segment Income ($millions) 600.0 400.0 352 217 200.0 0.0 1Q 2Q 3Q 4Q 2007 2008
Slide 14: Restructuring
Restructuring ♦ Second Restructuring Initiative ► Announced in March 2009 ► Cost savings of $140 million annually ► Closure of manufacturing and distribution facilities ► Broad-based employment reduction of approximately 2,500
Slide 15: 1Q09 Segment Results
1Q09 Segment Results In $ millions Sales Earnings SEGMENT 1Q09 1Q08 1Q09 1Q08 Performance Coatings 928 1,114 89 120 Industrial Coatings 644 1,058 (16) 95 Architectural Coatings EMEA 409 536 3 9 Optical and Specialty Materials 245 295 60 74 Commodity Chemicals 361 423 83 68 Glass 196 536 (27) 30 Tota
Slide 16: Cash
Cash 1600 Cash Generation 600 First Quarter ($millions) Cash on Hand 1400 500 ($millions) 1200 400 1000 800 300 600 200 400 100 200 0 0 2006 2007 2008 2007 2008 2009
Slide 17: Annual Dividends Per Share
Annual Dividends Per Share $2.50 $2.00 $ per share $1.50 $1.00 $0.50 $0.00 1983 1988 1993 1998 2003 2008
Slide 18: Priorities for 2009
Priorities for 2009 ♦ Improve overall cost position ♦ Leverage global capabilities ♦ Focus on cash flow ♦ Continue to adapt to market conditions ♦ Continue to execute transformational strategy
Slide 19: Slide 19