Adjustments for Non-Cash Items

Stock-Based Compensation [USD, Millions]

Changes in Working Capital

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

de73d4c80a70a47fbad8ecb63360197c2bc86e2be186642c59532dddffa95813

| Metric [USD Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Performance Coatings | **2,490**  **[0000079879-23-000002_exhibit99-4q2022earningsre.htm:2]**  | **2,628**  **[0000079879-23-000026_ppg-20230331.htm:27]**  | **3,041**  **[0000079879-23-000045_ppg-20230630.htm:27]**  | **2,880**  **[0000079879-23-000065_ppg-20230930.htm:28]**  | **2,615**  **[0000079879-24-000012_exhibit99-4q2023earningsre.htm:11]** **[0000079879-24-000012_exhibit99-4q2023earningsre.htm:2]**  | **2,614**  **[0000079879-24-000107_ppg-20240331.htm:26]**  | **3,048**  **[0000079879-24-000163_exhibit99-2q2024earningsre.htm:2]** **[0000079879-24-000163_exhibit99-2q2024earningsre.htm:0]** **[0000079879-24-000167_ppg-20240630.htm:26]** **[0000079879-24-000163_exhibit99-2q2024earningsre.htm:8]**  | **2,921**  **[0000079879-24-000217_ppg-20240930.htm:28]** **[0000079879-24-000213_exhibit99-3q2024earningsre.htm:2]** **[0000079879-24-000213_exhibit99-3q2024earningsre.htm:0]**  |
| Industrial Coatings  | **1,695**  **[0000079879-23-000002_exhibit99-4q2022earningsre.htm:2]**  | **1,752**  **[0000079879-23-000026_ppg-20230331.htm:27]**  | **1,831**  **[0000079879-23-000045_ppg-20230630.htm:27]**  | **1,764**  **[0000079879-23-000065_ppg-20230930.htm:28]**  | **1,735**  **[0000079879-24-000012_exhibit99-4q2023earningsre.htm:11]** **[0000079879-24-000012_exhibit99-4q2023earningsre.htm:2]**  | **1,697**  **[0000079879-24-000107_ppg-20240331.htm:26]**  | **1,746**  **[0000079879-24-000163_exhibit99-2q2024earningsre.htm:2]** **[0000079879-24-000163_exhibit99-2q2024earningsre.htm:0]** **[0000079879-24-000167_ppg-20240630.htm:26]** **[0000079879-24-000163_exhibit99-2q2024earningsre.htm:8]**  | **1,654**  **[0000079879-24-000217_ppg-20240930.htm:28]** **[0000079879-24-000213_exhibit99-3q2024earningsre.htm:2]** **[0000079879-24-000213_exhibit99-3q2024earningsre.htm:0]**  |
| Total Net Sales      | **4,185**  **[0000079879-23-000002_exhibit99-4q2022earningsre.htm:2]**  | **4,380**  **[0000079879-23-000026_ppg-20230331.htm:27]**  | **4,872**  **[0000079879-23-000045_ppg-20230630.htm:27]**  | **4,644**  **[0000079879-23-000065_ppg-20230930.htm:28]**  | **4,350**  **[0000079879-24-000012_exhibit99-4q2023earningsre.htm:11]** **[0000079879-24-000012_exhibit99-4q2023earningsre.htm:2]**  | **4,311**  **[0000079879-24-000107_ppg-20240331.htm:26]**  | **4,794**  **[0000079879-24-000163_exhibit99-2q2024earningsre.htm:2]** **[0000079879-24-000163_exhibit99-2q2024earningsre.htm:0]** **[0000079879-24-000167_ppg-20240630.htm:26]** **[0000079879-24-000163_exhibit99-2q2024earningsre.htm:8]**  | **4,575**  **[0000079879-24-000217_ppg-20240930.htm:28]** **[0000079879-24-000213_exhibit99-3q2024earningsre.htm:2]** **[0000079879-24-000213_exhibit99-3q2024earningsre.htm:0]**  |

04f4e27ed05102b6bd89de71cf1c1aca0b913543d3a1ae059c891a84b91e3a25

PPG Industries, Inc. is a multinational manufacturer specializing in the production of coatings and specialty materials. The company operates through two main business segments: Performance Coatings and Industrial Coatings, supplying a wide range of protective and decorative coatings, adhesives, sealants, and related chemicals **[0000079879-24-000107_ppg-20240331.htm:26]** **[0000079879-24-000217_ppg-20240930.htm:28]** **[0000079879-24-000040_ppg-20231231.htm:106]** **[0000079879-24-000040_ppg-20231231.htm:3]**. PPG's products are distributed globally, serving diverse markets such as industrial equipment, packaging, automotive, aerospace, and architectural applications **[0000079879-24-000040_ppg-20231231.htm:3]** **[0000079879-24-000040_ppg-20231231.htm:4]**.

1. **Performance Coatings** - Supplies protective and decorative coatings, adhesives, sealants, finishes, paint strippers, stains, and related chemicals. This segment includes automotive refinish coatings, aerospace coatings, architectural coatings (Americas, Asia Pacific, and EMEA), protective and marine coatings, and traffic solutions.
2. **Industrial Coatings** - Provides a variety of protective and decorative coatings and finishes, adhesives, sealants, metal pretreatment products, optical monomers and coatings, low-friction coatings, paint films, precipitated silicas, and other specialty materials. This segment includes automotive original equipment manufacturer (OEM) coatings, industrial coatings, packaging coatings, and specialty coatings and materials.

4568896f4f5d89d9afcb331319d365b546012e61429f5afa97e68bfe1af33567

fd73bace486c834d22f558056bddcbfee1ed15ca4a0b7fd2fd58b6a8af59f4ab

| Geographical Segment | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| United States and Canada (USD million) | **1,846**  **[0000079879-23-000002_exhibit99-4q2022earningsre.htm:12]**  | **1,776**  **[0000079879-23-000026_ppg-20230331.htm:29]**  | **2,059**  **[0000079879-23-000045_ppg-20230630.htm:26]**  | **1,941**  **[0000079879-23-000065_ppg-20230930.htm:27]**  | **1,872**  **[0000079879-24-000040_ppg-20231231.htm:104]**  | **1,742**  **[0000079879-24-000107_ppg-20240331.htm:29]**  | **2,039**  **[0000079879-24-000167_ppg-20240630.htm:25]**  | **1,929**  **[0000079879-24-000217_ppg-20240930.htm:27]**  |
| EMEA (USD million) | **1,364**  **[0000079879-23-000002_exhibit99-4q2022earningsre.htm:12]**  | **1,428**  **[0000079879-23-000026_ppg-20230331.htm:29]**  | **1,520**  **[0000079879-23-000045_ppg-20230630.htm:26]**  | **1,393**  **[0000079879-23-000065_ppg-20230930.htm:27]**  | **1,404**  **[0000079879-24-000040_ppg-20231231.htm:104]**  | **1,359**  **[0000079879-24-000107_ppg-20240331.htm:29]**  | **1,454**  **[0000079879-24-000167_ppg-20240630.htm:25]**  | **1,366**  **[0000079879-24-000217_ppg-20240930.htm:27]**  |
| Asia Pacific (USD million) | **705**  **[0000079879-23-000002_exhibit99-4q2022earningsre.htm:12]**  | **647**  **[0000079879-23-000026_ppg-20230331.htm:29]**  | **736**  **[0000079879-23-000045_ppg-20230630.htm:26]**  | **733**  **[0000079879-23-000065_ppg-20230930.htm:27]**  | **718**  **[0000079879-24-000040_ppg-20231231.htm:104]**  | **656**  **[0000079879-24-000107_ppg-20240331.htm:29]**  | **734**  **[0000079879-24-000167_ppg-20240630.htm:25]**  | **751**  **[0000079879-24-000217_ppg-20240930.htm:27]**  |
| Latin America (USD million) | **270**  **[0000079879-23-000002_exhibit99-4q2022earningsre.htm:12]**  | **529**  **[0000079879-23-000026_ppg-20230331.htm:29]**  | **557**  **[0000079879-23-000045_ppg-20230630.htm:26]**  | **577**  **[0000079879-23-000065_ppg-20230930.htm:27]**  | **356**  **[0000079879-24-000040_ppg-20231231.htm:104]**  | **554**  **[0000079879-24-000107_ppg-20240331.htm:29]**  | **567**  **[0000079879-24-000167_ppg-20240630.htm:25]**  | **529**  **[0000079879-24-000217_ppg-20240930.htm:27]**  |

4bd13826cdce26de1e3808c0f6f852a19274a0543cc995a0de9285ea25c1ea08

1. Given that general industrial activity in the U.S. and Europe was lackluster and your Industrial Coatings organic sales declined by a mid-single-digit percentage despite growth in China and India, what specific strategies are you implementing to reverse this trend and drive growth in these regions?  **[PPG_3403002_2]** 
2. With the divestiture of your Architectural Coatings U.S. and Canada business for $550 million and the announced restructuring program to eliminate stranded costs and rationalize your footprint, how confident are you in achieving the projected $175 million in savings, and what challenges do you foresee in fully realizing these savings?  **[PPG_3403002_2]** 
3. In the Aerospace business, despite your optimism for high single-digit growth in the fourth quarter and an outstanding year in 2025, how are you addressing potential risks such as customer strikes and supply chain disruptions that could impact your growth projections?  **[PPG_3403002_18]** 
4. Considering the decrease in insurance claims affecting your automotive refinish business due to factors like higher totals and consumers not turning in claims, what strategies are you employing to mitigate this impact and sustain growth in this market segment?  **[PPG_3403002_23]** 
5. With the recent thinning of your M&A pipeline and your commitment to only pursue acquisitions where you have a strong right to win, what specific criteria are you using to evaluate potential targets, and how will you ensure these acquisitions align with your strategic focus and deliver shareholder value?  **[PPG_3403002_9]** 

17a4375d450545ce35cfe5d29e57e0dc524c4a60afb5e9e11f19f22372077228

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024
- **Guidance**:
  1. **Raw Material Costs**: Expected to remain flat in Q4 2024.
  2. **Corporate Costs**: Structural corporate costs expected to be lower due to a cost reduction program.
  3. **Volume and Growth**: Anticipate a modest uptick in auto OEM builds and better performance in general industrial coatings.
  4. **Divestitures and Restructuring**: Sale of Architectural Coatings U.S. and Canada business and silicas products business; restructuring program expected to deliver $175 million in savings, with $60 million in 2025.
  5. **Shareholder Returns**: Plans to continue returning cash to shareholders through dividends and share repurchases  **[PPG_3403002_1]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024
- **Guidance**:
  1. **Organic Sales Growth**: Expected to be flat to low single-digit percentage growth.
  2. **Adjusted EPS**: Anticipated between **$2.10 and $2.20 per share**.
  3. **Selling Prices**: Expected to be flat.
  4. **Raw Material Costs**: Expected flat to low single-digit percentage deflation.
  5. **Operating Margins**: Improvement expected through sales volume growth leverage and cost control initiatives  **[PPG_3393637_3]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024
- **Guidance**:
  1. **Adjusted EPS**: Expected between **$2.42 and $2.52 per share**.
  2. **Sales Volumes**: Anticipated to be positive by a low single-digit percentage.
  3. **Raw Material Costs**: Expected to decrease by mid-single digits.
  4. **Selling Prices**: Expected to be flat to slightly positive.
  5. **Volume Growth**: Positive sales volumes expected in each remaining quarter of 2024.
  6. **Enterprise Growth Initiatives**: Focus on driving higher sales volumes.
  7. **Balance Sheet and Cash Flow**: Strong balance sheet providing flexibility  **[PPG_3380130_2]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: Q1 2024 and FY 2024
- **Guidance**:
  1. **Sales Volume**: Expected to be flat in Q1 2024, with growth in specific segments.
  2. **Selling Prices**: Anticipated to remain positive.
  3. **Earnings Growth**: Full-year earnings growth of around **10%** expected.
  4. **Adjusted EPS**: Expected to grow to a range of **$1.80 to $1.87** per share in Q1 2024.
  5. **Raw Materials and Costs**: Benefit from moderating input costs.
  6. **Volume and Price Dynamics**: Positive sales volume expected for FY 2024.
  7. **Tax Rate**: Higher year-over-year tax rate expected  **[PPG_3370514_2]** **[PPG_3370514_1]** **[PPG_3370514_3]** .

4aad121f78209e36d8930a4734295bfb2562059f9065d057b579199f4f76de6a

- Akzo Nobel N.V., mentioned as a global competitor in the industrial coatings segment  **[0000079879-24-000040_ppg-20231231.htm:5]** .
- Axalta Coating Systems Ltd., mentioned as a global competitor in the industrial coatings segment  **[0000079879-24-000040_ppg-20231231.htm:5]** .
- BASF Corporation, mentioned as a global competitor in the industrial coatings segment  **[0000079879-24-000040_ppg-20231231.htm:5]** .
- Kansai Paints, mentioned as a global competitor in the industrial coatings segment and as an alliance partner to serve Japanese-based automotive OEM customers in North America and Europe  **[0000079879-24-000040_ppg-20231231.htm:5]** .
- Nippon Paint, mentioned as a global competitor in the industrial coatings segment  **[0000079879-24-000040_ppg-20231231.htm:5]** .
- The Sherwin-Williams Company, mentioned as a global competitor in the industrial coatings segment  **[0000079879-24-000040_ppg-20231231.htm:5]** .

9c572f5d637e07c2606b61c872bc727cb35e3b39a3ba7e44160becc9f035627b

Performance Coatings

- Automotive Refinish

- Aerospace

- Architectural Americas/AP

- Architectural EMEA

- Protective and Marine

- Traffic Solutions

Industrial Coatings

- Automotive OEM

- Industrial

- Packaging

- Specialty Coatings

Glass

Total Revenue

0e08e55ba0f998c23fbbc81836bb87f150344aa96ecbccc5d8daec1ebea7bf05

United States and Canada

- United States

- Other Americas

EMEA

Asia Pacific

Latin America

91051c113a56631eaf8017d38a75090cd2c87ac1fa237ae4bbf51d8b649e9fbb

**Quarterly guidance for Q4 2024:**
- **Raw Material Costs**: Expected to remain flat  **[PPG_3403002_1]**  (lowered from "flat to low single-digit percentage deflation"  **[PPG_3393637_3]** )  
- **Corporate Costs**: Structural corporate costs expected to be lower  **[PPG_3403002_1]**  (no prior guidance)  
- **Volume and Growth**: Anticipate a modest uptick in auto OEM builds and better performance in general industrial coatings  **[PPG_3403002_1]**  (no prior guidance)  
- **Divestitures and Restructuring**: Sale of Architectural Coatings U.S. and Canada business and silicas products business; restructuring program expected to deliver $175 million in savings, with $60 million in 2025  **[PPG_3403002_1]**  (no prior guidance)  
- **Shareholder Returns**: Plans to continue returning cash to shareholders through dividends and share repurchases  **[PPG_3403002_1]**  (no prior guidance)  

03fbd3429a36eb10597c5eb8a6d43b403bbb324a4f80ca35f414e34a016e52fe

| Name                     | Position                                                      | Start Date         | Short Bio                                                                                                                                                                                                 |
|--------------------------|---------------------------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Timothy M. Knavish       | Chairman and Chief Executive Officer                          | October 1, 2023    | Timothy M. Knavish has been with PPG since **1987**. He was appointed as Chairman and CEO on **October 1, 2023**. He previously served as President and CEO from January 1, 2023, to September 30, 2023  **[0000079879-24-000040_ppg-20231231.htm:29]** **[0001558370-24-002695_tmb-20240418xdef14a.htm:19]** **[0001558370-24-001300_tmb-20240418xpre14a.htm:19]** .                             |
| Anne M. Foulkes          | Senior Vice President and General Counsel                     | September 2018     | Anne M. Foulkes has been serving as Senior Vice President and General Counsel at PPG since **September 2018**. She previously held various legal roles within the company since 2011  **[0000079879-24-000040_ppg-20231231.htm:29]** **[0000079879-23-000007_ppg-20221231.htm:26]** .                                                   |
| Vincent J. Morales       | Senior Vice President and Chief Financial Officer             | March 2017         | Vincent J. Morales has been serving as the Senior Vice President and CFO at PPG since **March 2017**. He has held various finance-related positions at PPG since 2007  **[0000079879-24-000040_ppg-20231231.htm:29]** **[0000079879-23-000007_ppg-20221231.htm:26]** .                                                                  |
| K. Henrik Bergström      | Senior Vice President, Architectural Coatings, Latin America, EMEA, and Asia Pacific | May 1, 2023        | K. Henrik Bergström has been in his current role since **May 1, 2023**. He previously served as Vice President for the same regions from February 2022 through April 2023  **[0000079879-24-000040_ppg-20231231.htm:29]** .                                                                  |
| Kevin D. Braun           | Senior Vice President, Industrial Coatings Segment            | May 1, 2023        | Kevin D. Braun began his career at PPG in **1991**. He was named Senior Vice President, Industrial Coatings Segment on **May 1, 2023**. He has held various roles in the company since 1994  **[0000079879-24-000197_exhibit99-pressreleasedate.htm:1]** **[0000079879-24-000040_ppg-20231231.htm:5]** .                                            |
| Amy R. Ericson           | Senior Vice President, Protective and Marine Coatings         | January 2023       | Amy R. Ericson has been serving as Senior Vice President, Protective and Marine Coatings since **January 2023**. She previously held leadership positions at other companies before joining PPG  **[0000079879-24-000040_ppg-20231231.htm:29]** **[0000079879-23-000007_ppg-20221231.htm:26]** .                                        |
| Chancey E. Hagerty       | Senior Vice President, Automotive Refinish Coatings           | May 1, 2023        | Chancey E. Hagerty has been in his current role since **May 1, 2023**. He previously served as Vice President, Global Automotive Refinish Coatings from January 2020 through April 2023  **[0000079879-24-000040_ppg-20231231.htm:29]** .                                                    |
| Ramaprasad Vadlamannati  | Senior Vice President, Operations                             | January 2023       | Ramaprasad Vadlamannati joined PPG in 1999 and has held various leadership roles. He was appointed Senior Vice President, Operations in January 2023 and will retire by December 31, 2024  **[0000079879-24-000220_ppg-20241022.htm:1]** **[0000079879-24-000197_exhibit99-pressreleasedate.htm:1]** **[0000079879-24-000197_ppg-20240920.htm:1]** .                                           |
| Kevin Braun              | Senior Vice President, Operations (effective October 1, 2024) | October 1, 2024    | Kevin Braun will become Senior Vice President, Operations effective **October 1, 2024**. He has been with PPG since 1991 and has held various roles, including Senior Vice President, Industrial Coatings Segment  **[0000079879-24-000197_exhibit99-pressreleasedate.htm:1]** .                         |

40bc67bab706b019b5ce1c8ac2ebddd852ae6d99368f89c2268e0906abd7227e

| Program Details          | Program 1          | Program 2          |
|--------------------------|--------------------|--------------------|
| Approval Date            | December 2017  **[0000079879-24-000217_ppg-20240930.htm:52]**   | April 2024  **[0000079879-24-000217_ppg-20240930.htm:52]**      |
| End Date/Duration        | No expiration  **[0000079879-24-000217_ppg-20240930.htm:52]**   | No expiration  **[0000079879-24-000217_ppg-20240930.htm:52]**   |
| Total additional amount  | **$2.5 billion**  **[0000079879-24-000217_ppg-20240930.htm:52]**  | **$2.5 billion**  **[0000079879-24-000217_ppg-20240930.htm:52]**  |
| Remaining authorization amount | N/A                | **22,726,533 shares**  **[0000079879-24-000217_ppg-20240930.htm:52]**  |
| Details                  | N/A                | N/A                |

2f1352335c20096d2171705f1a77cbc1b7454ac6b1c8a9896be717af2f22f0e9

7674cd90de8d27da7d3cc26016dfea8aeeeedcda7577bcea0a68bf74d202cd36

- Total Revenue: $2,165 million (**-50% YoY**)  **[0000079879-24-000040_ppg-20231231.htm:32]** **[0000079879-25-000016_exhibit99-4q2024earningsre.htm:12]**   
- Capital Expenditures (CapEx): $721 million (**+675% YoY**)  **[0000079879-24-000040_ppg-20231231.htm:57]** **[0000079879-24-000040_ppg-20231231.htm:56]** **[0000079879-25-000016_exhibit99-4q2024earningsre.htm:11]**   
- Dividend Payments: $622 million (-40% YoY)  **[0000079879-24-000040_ppg-20231231.htm:57]** **[0000079879-24-000040_ppg-20231231.htm:56]** **[0000079879-25-000016_exhibit99-4q2024earningsre.htm:11]**   

136442a37d93658be2217cd9cba0dc64002ef67bc7a3c9d637f1430a6694217f

- PPG has optimized its portfolio, resulting in **two segments with EBITDA margins at or above 20%**, enhancing profitability and positioning the company for growth. Management believes this reflects the value of their technology advantage products and services.  **[PPG_3413951_11]**
- The company expects to deliver adjusted EPS growth of **7%** in 2025 and remains confident in achieving **8% to 12%** EPS growth annually, driven by a more focused portfolio and strengthened organic growth capabilities.  **[PPG_3413951_11]** **[PPG_3413951_21]**
- PPG has secured over **$100 million** in annual share gains in its Industrial Coatings segment for 2025, representing deals already won, which positions the company for significant revenue growth as these are implemented.  **[PPG_3413951_21]**

f93102bc6e483afa79262fb6c39ca3616f741449e4c4c04e890dd3ad6c57ba44

- PPG **expects raw material inflation** due to **enacted tariffs** in Q1 2025, which may pressure margins, especially in the **Industrial Coatings segment**. They anticipate a **flat to low single-digit decline in volumes** in Q1, with volume improvements not expected until the second half of the year.  **[PPG_3413951_7]**
- Management acknowledges that **geopolitical uncertainties**, including potential stressors between the **U.S. and other countries** or within **Europe**, could pose risks to achieving their growth targets for **2025 and 2026**.  **[PPG_3413951_21]**
- The company is experiencing **weak demand** in the **Architectural Coatings EMEA** business due to **low consumer confidence**, with significant declines in key countries like **France** and the **Nordics**. They are not expecting a recovery but only **stabilization**, which may limit growth prospects in that segment.  **[PPG_3413951_14]**

f4fb82a10b05338c6408c96f5b887805e8e54321680a885de23e6843bef71f4f

1. **Earnings Guidance**  
   **Q:** What's the outlook for earnings growth and guidance?  
   **A:** Tim Knavish stated they're projecting **7% operational EPS growth** for 2025, with a softer first half and stronger second half. They remain confident in achieving **8% to 12% EPS growth** long-term, depending on macro conditions.  **[PPG_3413951_9]** ,  **[PPG_3413951_11]** ,   

2. **Margin Outlook**  
   **Q:** How will margins trend throughout the year?  
   **A:** Vince Morales indicated that margins will be down in Q1 due to raw material inflation from enacted tariffs but will improve as the year progresses. The company expects full-year segment margins to be up **50 basis points**, with stronger margins in the second half driven by volume recovery and restructuring benefits.  **[PPG_3413951_7]** ,  **[PPG_3413951_20]** 

3. **Capital Allocation and Share Buybacks**  
   **Q:** Are share buybacks expected, and what's the stance on M&A?  
   **A:** PPG completed a **$400 million** share buyback in Q1 using proceeds from divestitures, which is accretive to EPS. While M&A isn't their primary focus, they're open to strategic acquisitions but will prioritize shareholder returns through buybacks if it's the best use of cash.  **[PPG_3413951_10]** 

4. **Volume Expectations**  
   **Q:** What are the volume trends expected for 2025?  
   **A:** Volumes are anticipated to be negative in Q1, similar to Q4, then flatten and turn positive low single digits for the remainder of the year. Full-year positive volume growth of about **low single digits** is expected, driven by stabilization in end markets and approximately **$100 million** in share gains in the industrial segment.  **[PPG_3413951_12]** 

5. **China Auto Market**  
   **Q:** What's the outlook for China, especially in autos?  
   **A:** PPG experienced growth every quarter in China during 2024, with Q4 retail auto sales up **19%**. The company is gaining share with domestic automakers and sees the continued rise of EVs, which were **37%** of cars built in China at the end of 2024, as an opportunity for increased content.  **[PPG_3413951_16]** ,  **[PPG_3413951_15]** 

6. **Risks to Guidance**  
   **Q:** What risks could impact achieving your growth targets?  
   **A:** The primary risks are geopolitical uncertainties and macroeconomic factors. However, PPG feels confident in their full-year guidance due to strengthened organic growth initiatives and a robust commercial pipeline.   

7. **Pricing Strategy and Tariffs**  
   **Q:** How are you adjusting pricing in light of tariffs?  
   **A:** PPG expects raw material inflation of **low single digits** due to already enacted tariffs, mainly on TiO₂ and epoxies. Pricing in Q1 will be flat to slightly positive, with full-year positive pricing of low single digits across the board. They will remain flexible to adjust pricing as needed.  **[PPG_3413951_6]** ,  **[PPG_3413951_21]** 

8. **Portfolio Optimization**  
   **Q:** Are there any plans for further divestitures?  
   **A:** There are no additional divestitures planned at this time. PPG believes they have strong positions in their current businesses and see no need for further portfolio changes.  **[PPG_3413951_13]** 

9. **Capital Expenditures**  
   **Q:** How will CapEx evolve over the next few years?  
   **A:** Elevated CapEx of around **$750 million** in 2024 and 2025 is due to catch-up spending post-COVID and investments in growth areas like Mexico and Aerospace. PPG plans to return to a normal run rate of about **3% of sales** in CapEx going forward.  **[PPG_3413951_18]** 

10. **EMEA Architectural Coatings**  
    **Q:** What's the outlook for Architectural Coatings in EMEA?  
    **A:** Demand was weak in most regions during Q4, but PPG saw strong performance in Poland, the U.K., and Ireland. The company expects stabilization rather than recovery in Europe, driven by consistent pricing and selective share gains.  **[PPG_3413951_14]** 

11. **Growth in New Segments**  
    **Q:** How do you view growth rates in your new segments?  
    **A:** Global Architectural Coatings growth is tied to housing and construction, with added share gains due to strong market positions. Performance Coatings demand is steady, with opportunities for share gains from differentiated technology. Industrial Coatings follows industrial production, with additional growth from technology-driven share gains.  **[PPG_3413951_8]** 

12. **Latin America and India Growth**  
    **Q:** How are Latin America and India contributing to growth?  
    **A:** Latin America is outperforming with strong GDPs and consumer confidence, particularly in Mexico. In India, PPG's joint venture with Asian Paints is outgrowing the market due to technological advantages and strong partnerships.  **[PPG_3413951_15]** 

13. **Mexico and Tariff Risk**  
    **Q:** Is there tariff risk associated with your Mexico operations?  
    **A:** Nearly **100%** of products sold through Comex are for domestic use in Mexico, so tariff risk is minimal. Growth is driven by local demand and near-shoring benefits.  **[PPG_3413951_17]** 

14. **Industrial Segment Recovery**  
    **Q:** How will the Industrial segment perform in a recovery?  
    **A:** The Industrial segment is highly volume-sensitive. As volumes recover, PPG expects significant incremental leverage and margin improvement due to prior self-help actions and pricing strategies.  **[PPG_3413951_7]** ,  **[PPG_3413951_20]** 

15. **Pricing Contributions by Segment**  
    **Q:** Can you provide pricing expectations by segment for 2025?  
    **A:** Performance Coatings typically achieves the best pricing due to value-added services. Architectural Coatings maintain steady pricing, while Industrial Coatings' pricing depends on raw material inflation and market conditions.  **[PPG_3413951_21]** 

f72cfdfd9c12691ed8009cbcfdd76aa9303bdb152e0cc7fb3276de47d0c6b66b

PPG's streamlined portfolio drives two segments with EBITDA margins >20%, guiding 7% EPS growth in 2025 and 8–12% long term. Over $100M in Industrial Coatings deals boosts momentum, though tariffs may pressure Q1 margins.

e46edd6eb0fd1fa4d482a127f3806c7d93a425a392229ef8154ef362d1e96a33

**Quarterly guidance for Q1 2025:**
- **Segment margins**: decrease by 150 basis points  **[PPG_3413951_7]**  (no prior guidance)

**Annual guidance for FY 2025:**
- **Adjusted EPS**: $7.75–$8.05  **[PPG_3413951_5]**  (no prior guidance)  
- **EPS growth**: 7%  **[PPG_3413951_5]**  (no prior guidance)  
- **Segment margins**: increase by 50 basis points  **[PPG_3413951_7]**  (no prior guidance)  
- **Raw material inflation**: low single-digit  **[PPG_3413951_6]**  (no prior guidance)  
- **Pricing**: low single-digit positive  **[PPG_3413951_6]**  (no prior guidance)

6c90be941c5c90c5d50de1b8bf4b7cf820cc76f0833cfc47173fb61d27898048

| Name                          | Start Date | End Date | Reason for Change |
|-------------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP    | 2013  **[0000079879-24-000040_ppg-20231231.htm:53]**  | Present  | Current auditor   |

817def7dc6c3aea5880c0fd1e1d5d9bd59ba6481443aefe1f9149e2284ccfb28

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e04892e75025072058bb00cac6182c90a67bf47d6156fbd191710582e45c8d7a

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $4,575 million (-1% YoY)  **[0000079879-23-000065_ppg-20230930.htm:31]** **[0000079879-24-000217_ppg-20240930.htm:27]**   
- Performance Coatings: $2,921 million (+1% YoY)  **[0000079879-23-000065_ppg-20230930.htm:28]** **[0000079879-23-000065_ppg-20230930.htm:2]** **[0000079879-24-000217_ppg-20240930.htm:28]**   
- Industrial Coatings: $1,654 million (**-6%** YoY)  **[0000079879-23-000065_ppg-20230930.htm:28]** **[0000079879-23-000065_ppg-20230930.htm:2]** **[0000079879-24-000217_ppg-20240930.htm:28]**   
- United States & Canada: $1,929 million (-1% YoY)  **[0000079879-23-000065_ppg-20230930.htm:31]** **[0000079879-24-000217_ppg-20240930.htm:27]**   
- EMEA: $1,366 million (-2% YoY)  **[0000079879-23-000065_ppg-20230930.htm:31]** **[0000079879-24-000217_ppg-20240930.htm:27]**   
- Asia Pacific: $751 million (+2% YoY)  **[0000079879-23-000065_ppg-20230930.htm:31]** **[0000079879-24-000217_ppg-20240930.htm:27]**   
- Latin America: $529 million (**-8%** YoY)  **[0000079879-23-000065_ppg-20230930.htm:31]** **[0000079879-24-000217_ppg-20240930.htm:27]**   
- Capital Expenditures: $149 million in Q3 2024 vs. -$743 million in Q3 2023 (**+$892 million YoY**)  **[0000079879-23-000065_ppg-20230930.htm:6]** **[0000079879-24-000217_ppg-20240930.htm:6]** **[0000079879-24-000217_ppg-20240930.htm:4]** **[0000079879-24-000217_ppg-20240930.htm:2]**   
- Net Change in Cash: $12 million in Q3 2024 vs. -$337 million in Q3 2023 (+$349 million YoY)  **[0000079879-23-000065_ppg-20230930.htm:6]** **[0000079879-24-000217_ppg-20240930.htm:6]** **[0000079879-24-000217_ppg-20240930.htm:4]** **[0000079879-24-000217_ppg-20240930.htm:2]**   

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e4251975feb0ee95badb54498b1215576b333bcabc2b594c2e7ca5fb24e73d7d

7153374e472b103d6f745ca1186513d17c72d9d33fd7a7b0af39409df6590a7e

Operating working capital as a percentage of sales (percentage)

Days sales outstanding (days)

a7e120be4b8b98ca3cbe4636ed6e056e96e8ced714b856e6263603216b4623e5

- **PPG expects strong growth in China**, particularly in **automotive with double-digit growth expected in Q2**, as well as continued growth in **industrial coatings, refinish, and aerospace**.  **[PPG_3380130_19]**
- **The company is gaining market share** in segments such as **industrial, refinish, and packaging**, leading to anticipated **positive volume growth in Q2**.  **[PPG_3380130_6]**
- **PPG is confident in delivering a bold 10% EPS growth target** for 2024, supported by proven margin and cash management, and starting from a position of strength in **key markets** like **aerospace, Mexico, China, India, protective and marine coatings, and automotive**.  **[PPG_3380130_4]**

db55ffdfb12725a00425c660e984db352beeeb95fb4ecab0cdeea59e4343a74f

- **PPG has lowered its full-year EPS guidance due to weaker volumes, particularly in the global auto OEM segment and architectural Europe, reflecting challenges in key markets.**  **[PPG_3393637_13]** ,  **[PPG_3393637_19]**
- **Volume growth has been an ongoing issue for PPG for the last 11 quarters, indicating difficulty in growing sales volumes across their businesses.**  **[PPG_3393637_24]**
- **The automotive segment is facing deceleration, with further shutdowns in June, and PPG may face challenges passing through raw material cost increases in the auto OEM business, which is typically slow to adjust prices.**  **[PPG_3393637_25]** ,  **[PPG_3393637_11]**

72596f0141d0425df930249265613405c9bf4896aadf1d582b7111fabd65e4a4

1. **Architectural Business Sale**  
   **Q:** What are the details of the Architectural Coatings sale?  
   **A:** PPG is selling its U.S. and Canada Architectural Coatings business for **$550 million** at a **14x EBITDA multiple**.  **[PPG_3403002_4]** **[PPG_3403002_7]**  The business has **$2 billion in sales** and **low single-digit EBITDA margins**.  **[PPG_3403002_4]** **[PPG_3403002_7]**  The deal is a clean exit with no significant stranded costs, and includes ongoing exclusive supply agreements.  **[PPG_3403002_4]** **[PPG_3403002_7]** 

2. **2025 Growth Outlook**  
   **Q:** How do you see volume growth potential for 2025?  
   **A:** PPG expects momentum in several areas, including Performance Coatings and a flattening European market.  **[PPG_3403002_5]**  Auto builds are projected to be **marginally positive** next year per IHS, which would be better than this year.  **[PPG_3403002_5]**  Self-help initiatives announced will also contribute, resulting in a sharper, more focused PPG with higher growth and a higher margin profile in 2025.  **[PPG_3403002_5]** 

3. **Automotive OEM Outlook**  
   **Q:** What's the outlook for the Automotive OEM business?  
   **A:** PPG expects the downturn in auto builds to continue into Q4 but anticipates a modest uptick in 2025.  **[PPG_3403002_17]**  IHS projects **marginally positive builds** next year, improving from mid- to high-single-digit declines this year.  **[PPG_3403002_5]** **[PPG_3403002_17]**  Any volume recovery will bring leverage back to industrial margins.  **[PPG_3403002_6]** **[PPG_3403002_17]** 

4. **Raw Material Costs Outlook**  
   **Q:** Should we expect raw material costs to decline in 2025?  
   **A:** For Q4, raw materials are expected to remain flat, consistent with Q3.  **[PPG_3403002_12]**  It's too early to provide guidance for 2025 as negotiations with suppliers are just starting.  **[PPG_3403002_12]**  However, PPG enters the year-end with ample supply upstream, which could be favorable.  **[PPG_3403002_12]** 

5. **Aerospace Business Growth**  
   **Q:** What is the outlook for the Aerospace business?  
   **A:** PPG is not seeing a slowdown in Aerospace; backlogs are significant in OE and aftermarket, and military demand is **red hot**.  **[PPG_3403002_18]**  They project **high single-digit growth** in Q4 and expect another outstanding year in 2025.  **[PPG_3403002_18]** 

6. **Cost Savings Program**  
   **Q:** How will the $250 million charge and cost savings flow?  
   **A:** The $250 million charge will have cash outflows spread over three years, front-loaded in the first 15–18 months.  **[PPG_3403002_8]**  PPG expects **$60 million in savings** next year, with the remaining $175 million realized over the following years.  **[PPG_3403002_8]**  Structural changes to the footprint will take time, but there are quick-hitting items as well.  **[PPG_3403002_8]** 

7. **M&A Pipeline and Strategy**  
   **Q:** What is PPG's M&A strategy after the sale?  
   **A:** The M&A pipeline has been thinner over the last 1.5 years but is improving.  **[PPG_3403002_9]**  PPG does not exclude Architectural Coatings and will look at opportunities where they have a strong right to win.  **[PPG_3403002_9]**  They are focused on being targeted and investing where it adds shareholder value.  **[PPG_3403002_9]** 

8. **Protective and Marine Outlook**  
   **Q:** What's changing in the Protective & Marine outlook?  
   **A:** PPG's Protective & Marine business has seen its sixth straight quarter of volume growth.  **[PPG_3403002_24]**  While comps make Q4 look flat, the business benefits from infrastructure spending, marine aftermarket activity, and near-shoring.  **[PPG_3403002_24]**  They are bullish on its continued performance.  **[PPG_3403002_24]** 

9. **Refinish Business Dynamics**  
   **Q:** Why is Refinish guidance flat for Q4?  
   **A:** The flat guidance is due to inventory management by distributors and a prior-year pre-buy ahead of a price increase.  **[PPG_3403002_16]** **[PPG_3403002_20]**  Insurance claims are significantly down, but PPG is gaining about **500 net shop wins per quarter**.  **[PPG_3403002_16]** **[PPG_3403002_20]**  They look at Refinish over multiple quarters due to channel dynamics.  **[PPG_3403002_16]** **[PPG_3403002_20]** 

10. **Packaging Coatings Business**  
    **Q:** How is the Packaging Coatings business performing?  
    **A:** PPG has lapped prior share shifts and picked up share for the full year 2024.  **[PPG_3403002_25]**  They are confident in picking up more share heading into 2025.  **[PPG_3403002_25]**  Their technologies and services are the reasons for net share gains.  **[PPG_3403002_25]** 

11. **Divestiture Impact on Earnings**  
    **Q:** Will the U.S. and Canada divestiture be dilutive?  
    **A:** If PPG uses the net proceeds for share buybacks, the transaction will be **slightly accretive** next year.  **[PPG_3403002_15]**  There are about **$15 million** of stranded costs, but structural costs are expected to be lower due to cost programs.  **[PPG_3403002_15]** 

12. **Manufacturing Productivity Gains**  
    **Q:** What's driving lower COGS despite flat volumes and raws?  
    **A:** PPG has started to gain on manufacturing productivity, which is helping reduce COGS.  **[PPG_3403002_14]**  Index contracts are based on a basket of raw materials, not directly linked to energy prices.  **[PPG_3403002_14]** 

13. **Decorative Coatings Strategy**  
    **Q:** What is PPG's Deco strategy after exiting North America?  
    **A:** PPG will focus on countries where they are **#1 or strong #2**, such as in Europe where they're #1 in 10 countries.  **[PPG_3403002_25]**  They will stay in these businesses as long as they deliver good earnings, cash, and growth.  **[PPG_3403002_25]** 

14. **Impact of Insurance Claims on Refinish**  
    **Q:** Are lower insurance claims affecting Refinish sales?  
    **A:** The drop in insurance claims is due to higher totals, less repair claims, and some consumers not turning in claims.  **[PPG_3403002_23]**  PPG believes these factors are transitory and continues to gain market share.  **[PPG_3403002_23]** 

15. **Capital Allocation Post-Divestiture**  
    **Q:** How will PPG allocate proceeds from the sale?  
    **A:** PPG has a strong balance sheet and has been buying back shares in the last four quarters.  **[PPG_3403002_7]**  They will continue to deploy capital in ways that deliver shareholder value.  **[PPG_3403002_7]** 

16. **Lease Liabilities Transfer**  
    **Q:** How are lease liabilities handled in the store sale?  
    **A:** The leases and obligations are transferred with the business.  **[PPG_3403002_10]**  There's no change to PPG's debt profile as a result.  **[PPG_3403002_10]** 

17. **Industrial Margins Outlook**  
    **Q:** What's the trajectory for industrial margins?  
    **A:** Weakness was largely driven by volume declines, particularly in auto OEM and general industrial coatings.  **[PPG_3403002_6]**  Any volume increase will bring leverage back to margins.  **[PPG_3403002_6]** 

18. **Confidence in Growth Framework**  
    **Q:** Is the 8–12% EPS growth framework still achievable?  
    **A:** PPG remains confident in these goals over the cycle.  **[PPG_3403002_11]**  They acknowledge macros may cause fluctuations but feel good about momentum going into next year.  **[PPG_3403002_11]** 

19. **Cost Program Cash Flow**  
    **Q:** How will the $250 million charge cash flow?  
    **A:** Cash outlays will be spread over three years, front-loaded in the first 15–18 months.  **[PPG_3403002_8]**  Savings of $60 million are expected next year, with remaining savings over following years.  **[PPG_3403002_8]** 

20. **M&A Excluding Architectural Coatings**  
    **Q:** Will Architectural Coatings M&A be off the table?  
    **A:** PPG does not exclude Architectural Coatings opportunities.  **[PPG_3403002_9]**  They will consider any opportunity where they have a strong right to win.  **[PPG_3403002_9]** 

21. **Refinish Growth into 2025**  
    **Q:** What is the outlook for Refinish growth in 2025?  
    **A:** PPG continues to gain net shop wins and expects the positive momentum to carry into 2025.  **[PPG_3403002_16]** **[PPG_3403002_20]**  They monitor the business over multiple quarters due to distribution dynamics.  **[PPG_3403002_16]** **[PPG_3403002_20]** 

12cf88485114f21ab027642e9e35601073fa637e0d60810972c3f44aa2bb43b6

- **PPG is optimizing its portfolio by divesting non-core businesses**, selling the U.S. and Canada Architectural Coatings business for **$550 million** and the silicas products business for **$310 million**, improving its organic growth and financial return profiles for a **higher-growth and higher-margin company**.  **[PPG_3403002_1]**
- **Record performance in Aerospace Coatings**, with **double-digit percentage organic sales growth** and an order backlog of approximately **$290 million**, demonstrating strong demand and positioning PPG for continued growth in this sector.  **[PPG_3403002_19]** **[PPG_3403002_2]**
- **Strong balance sheet and commitment to shareholder value**, with approximately **$1 billion** returned to shareholders through dividends and share repurchases year-to-date, and plans to effectively allocate proceeds from asset sales to benefit shareholders and support growth initiatives in 2025.  **[PPG_3403002_2]** **[PPG_3403002_5]** **[PPG_3403002_7]**

7f9e9e6b7ecc5b26dcb8a6fa0be7510de8a02cb0669890ba63522e5603cd927d

- **PPG's Aerospace segment is experiencing strong demand, with a backlog of almost $300 million, and everything they can make is sold and shipped.** The company is adding capacity and improving productivity to meet this demand, which is expected to continue in the near future.  **[PPG_3393637_20]**
- **Confidence in continued growth and market share gains in the Packaging Coatings business, driven by innovative technologies in interior can and exterior coatings.** PPG expects to maintain and grow its share gains, which are independent of competitors' issues.  **[PPG_3393637_25]** **[PPG_3393637_24]**
- **Outperformance in key end markets and regions, including Automotive Refinish Coatings, where PPG continues to gain share through digital systems, and consistent growth in markets like Mexico, China, and India.** This positions PPG to outperform market growth rates in these areas.  **[PPG_3393637_8]**

e616db6f2f5da75ff3c45f24d3f22ae225c696684d65b4afd0edd9151d3970f1

- **PPG is exiting the North American decorative coatings market**, which may raise concerns about its strategic focus and potential loss of presence in this region.  **[PPG_3403002_25]**
- **Competitors are negative about the packaging market**, and there are risks if packaging share shifts back to competitors, potentially impacting PPG's growth in this segment.  **[PPG_3403002_25]**
- **PPG plans to implement self-help measures to improve profitability in Europe**, indicating challenges in maintaining margins in its European decorative coatings business.  **[PPG_3403002_25]**

4f9bfaa6f39c7b6089e15b93584985a6e3144fca58842ca7047e52b841d9c722

- **Potential pricing pressure in the Industrial Coatings segment due to expected modest price declines in the first quarter of 2024, partly driven by decreases in raw material costs.**  **[PPG_3370514_9]**
- **Decreasing raw material costs, such as titanium dioxide (TiO₂), may lead to reduced selling prices and impact margins. The company acknowledges that TiO₂ prices are decreasing and supply is ample.**  **[PPG_3370514_22]** **[PPG_3370514_13]**
- **First quarter earnings growth is expected to be moderate due to transitory items and difficult year-over-year comparisons, including nonrecurring customer load-ins and timing shifts like the Easter holiday, which may impact sales volume and profitability.**  **[PPG_3370514_3]** **[PPG_3370514_9]**

62a1b9d6100fa52b70c18167cf83632e841674c1456565f162aa37513b44ef17

1. **Earnings Guidance Confidence**  
   **Q:** What underlies confidence in 10% EPS growth guidance?  
   **A:** Management is confident in achieving a bold **10% EPS growth** target for the year, despite a challenging environment, due to strong margin improvements, positive volume momentum, ongoing pricing initiatives, manufacturing momentum, and optionality with capital deployment.  **[PPG_3380130_4]** 

2. **Price and Raw Material Dynamics**  
   **Q:** How will price and raw materials impact margins?  
   **A:** Raw material costs were down **high single digits** in Q1 and are expected to be down **mid-single digits** in Q2 and **low to mid-single digits** for the full year 2024. Management is confident in their pricing, with ongoing initiatives expected to offset costs like wage and logistics inflation.  **[PPG_3380130_5]** **[PPG_3380130_17]** **[PPG_3380130_20]** 

3. **Volume Growth Outlook**  
   **Q:** Will volumes turn positive in Q2?  
   **A:** Management expects positive volume growth in Q2 and for the rest of the year, building on sequential improvements from prior quarters. They cite share gains launching in packaging, refinish, and industrial coatings, and are confident based on early orders and shipments in April.  **[PPG_3380130_6]** **[PPG_3380130_20]** 

4. **U.S. Architectural Business Review**  
   **Q:** What is the status of the U.S. architectural review?  
   **A:** The company has seen minimal disruption since announcing the review and reports strong interest in the assets. Management aims to be definitive on the path forward by Q3, considering all options to maximize long-term shareholder value, including partnerships to accelerate growth and improve profitability.  **[PPG_3380130_8]** **[PPG_3380130_10]** **[PPG_3380130_14]** 

5. **Share Buyback Plans**  
   **Q:** Will there be more share buybacks in guidance?  
   **A:** The full-year guidance does not assume additional share repurchases beyond the **$150 million** bought back in Q1. Future buyback decisions will be made in real time, depending on cash deployment priorities and acquisition opportunities that create shareholder value.  **[PPG_3380130_7]** **[PPG_3380130_15]** 

6. **Refinish Business Performance**  
   **Q:** How is the refinish business performing post-COVID?  
   **A:** The refinish business faced weaker volumes in Q1 due to lower industry collision claims, especially in March, which were down **low double digits**, partly due to mild winter weather reducing accidents. Management expects a return to normal growth in the second half of 2024 and continues to gain market share through digital tools.  **[PPG_3380130_13]** 

7. **European Market Outlook**  
   **Q:** What is driving the softness in Europe?  
   **A:** Europe was softer than expected in Q1, particularly in architectural coatings in France and the Nordics, and weaker automotive sales. Management sees early signs of improvement in April and expects incremental improvements ahead, with potential for good leverage due to prior cost actions.  **[PPG_3380130_16]** 

8. **China Growth Momentum**  
   **Q:** How is growth in China progressing?  
   **A:** China showed growth in Q1, with strong performance in automotive, industrial coatings, and refinish. Management expects this momentum to continue into Q2, anticipating **high single-digit to double-digit** growth, supported by increased industrial activity and record travel in aerospace.  **[PPG_3380130_19]** 

9. **Capital Expenditures and Growth Investments**  
   **Q:** Why has CapEx increased, and will this level continue?  
   **A:** CapEx is higher due to spillover from last year and additional growth investments in Mexico and India. Over the midterm, CapEx is expected to return to the normal range of **2.5% to 3%** of sales after catching up from COVID-related delays.  **[PPG_3380130_11]** **[PPG_3380130_22]** 

10. **Portfolio Restructuring and M&A Strategy**  
    **Q:** How confident is management in remaining businesses and M&A?  
    **A:** Management is confident that the remaining businesses will deliver higher growth and margin profiles. They intend to continue pruning smaller parts of the portfolio and making focused acquisitions that align with performance targets and growth strategy, ensuring each business earns its place in the portfolio.  **[PPG_3380130_9]** **[PPG_3380130_23]** 

12912697f57a60d4d5c3d9499e8f37472f0e84d551360a7f6830f69ac3f76c1c

- PPG expects **positive sales volume growth in 2024**, including benefits from China, India, and Mexico, particularly in their **Auto OEM** business where they are well-positioned in China with strong positions with **electric vehicle OEMs**. They anticipate a **multi-year recovery** in automotive with **content per EV built up by 20% in 2023**.  **[PPG_3370514_7]** **[PPG_3370514_19]**
- PPG has **significant spare capacity** and expects to improve operating margins through **volume leverage** and ongoing **manufacturing productivity initiatives**, including modernization, automation, and digitization of operations, which are projected to yield **manufacturing productivity gains of $150 million to $200 million**.  **[PPG_3370514_22]** **[PPG_3370514_18]**
- PPG expects to deliver around **10% earnings growth** in 2024, driven by **positive pricing**, **volume growth**, **manufacturing productivity gains**, and benefits from their **enterprise growth initiatives** that delivered around **$150 million of incremental sales in 2023**.  **[PPG_3370514_15]** **[PPG_3370514_18]** **[PPG_3370514_20]**

6375ab96d374ccf6e18d63049f6b19cc4cdc96c1e8f32520d22362083ecbae18

1. **U.S./Canada Architectural Coatings Sale**  
   **Q:** Is there increased likelihood of selling the U.S./Canada architectural business?  
   **A:** PPG has received strong and diverse interest in their U.S./Canada architectural coatings business, including full sale, joint ventures, and partnerships. They are making good progress and remain on schedule to determine a path forward, but it's too early to say which option will prevail.  **[PPG_3393637_5]**  They had a very good quarter with **mid-single-digit growth** in this business, with no significant disruptions or market share losses due to the strategic review.  **[PPG_3393637_9]**  The best transaction for shareholders will balance immediate proceeds with the long-term strategic value of any retained interests.  **[PPG_3393637_13]** 

2. **Auto OEM Outlook and Downtime**  
   **Q:** Why did PPG's auto OEM volumes underperform, and is it a recession signal?  
   **A:** PPG's auto OEM business underperformed due to increased summer downtimes at specific assembly plants in the U.S. and Europe, and cautious production plans in China following EV tariff announcements.  **[PPG_3393637_6]** **[PPG_3393637_7]**  This is seen as a transitory issue rather than a foreshadowing of a recession, with adjustments driven by inventory levels and consumer affordability concerns.  **[PPG_3393637_14]** **[PPG_3393637_16]** 

3. **European Volumes and Architectural Challenges**  
   **Q:** What caused the volume decline in Europe, and what's the outlook?  
   **A:** European volumes declined more than expected, particularly in June, due to softness in the decorative business and auto OEM sector.  **[PPG_3393637_7]**  France, a key market, experienced a slowdown due to unique situations, while Eastern Europe showed strength.  **[PPG_3393637_7]** **[PPG_3393637_17]**  Some competitive price pressures have emerged in architectural EMEA, but overall pricing is holding up due to higher wage and benefit inflation.  **[PPG_3393637_19]**  Sequential improvement is expected in Q3, but volumes may still be down versus prior year.  **[PPG_3393637_17]** 

4. **Raw Materials and TiO₂ Pricing**  
   **Q:** Will Chinese TiO₂ tariffs impact PPG's costs, and how will they manage?  
   **A:** PPG foresees no impact from Chinese TiO₂ tariffs in **2024** due to contractual coverage.  **[PPG_3393637_16]**  For **2025**, they plan to reduce TiO₂ consumption per batch, leverage increased sourcing flexibility, and, if necessary, offset costs with price increases, especially in the decorative business.  **[PPG_3393637_16]**  They are neither advantaged nor disadvantaged compared to competitors and have production outside the EU not affected by tariffs.  **[PPG_3393637_16]** **[PPG_3393637_18]** 

5. **Aerospace Business Capacity Constraints**  
   **Q:** How significant are the aerospace capacity constraints and plans to expand?  
   **A:** PPG's aerospace business has a backlog of almost **$300 million**, with everything they can make being sold and shipped.  **[PPG_3393637_21]**  They are adding capacity through productivity improvements and incremental capital investments and are assessing the need for larger-scale expansion due to strong demand across commercial, general aviation, and military sectors.  **[PPG_3393637_21]** 

6. **Refinish Business Growth and Digital Tools**  
   **Q:** What is driving growth in the refinish business, and what's the outlook?  
   **A:** PPG continues to gain market share in refinish by rolling out digital productivity tools like **MoonWalk** and **LINQ**, which have been widely accepted.  **[PPG_3393637_8]** **[PPG_3393637_15]**  With penetration rates still in single digits globally, they see significant runway for growth, especially outside Europe where the rollout is in early stages.  **[PPG_3393637_15]**  Order patterns are also favorable for the second half due to last year's pricing dynamics.  **[PPG_3393637_15]** 

7. **Packaging Coatings Share Gains**  
   **Q:** Can PPG sustain its packaging coatings share gains?  
   **A:** PPG is confident in retaining and growing its share gains in packaging coatings, achieved through technological advancements rather than competitors' disruptions.  **[PPG_3393637_8]** **[PPG_3393637_25]**  They are gaining share across various applications, including inside the can, outside the can, easy-open ends, and food lines, independent of isolated industry incidents.  **[PPG_3393637_25]** 

8. **Capital Allocation Strategy**  
   **Q:** Will PPG prioritize share repurchases or acquisitions with excess cash?  
   **A:** PPG prefers shareholder value–accretive acquisitions but acknowledges that the acquisition pipeline is currently thin.  **[PPG_3393637_20]**  They have been buying back shares over the last **three quarters** and will continue to deploy excess cash through share repurchases if suitable acquisitions are not available.  **[PPG_3393637_20]** 

9. **Specialty Business and Silica Sale**  
   **Q:** What is the status of the silica sale, and how does PPG view its specialty portfolio?  
   **A:** The silica sale is on track, potentially ahead of the architectural business review, with good interest received.  **[PPG_3393637_10]**  PPG values its remaining specialty businesses, which have leadership positions and high technology content aligning with their R&D strengths, contributing to growth in **Q2**.  **[PPG_3393637_10]** 

10. **Volume Growth Strategies**  
    **Q:** How is PPG addressing volume growth challenges and incentivizing sales?  
    **A:** PPG has modified incentive compensation to drive more organic growth, with some measures already in place and others being implemented.  **[PPG_3393637_25]**  This is part of a multifaceted strategy to enhance their organic growth profile and address volume growth issues experienced over the past quarters.  **[PPG_3393637_25]** 

11. **Impact of Chinese EV Tariffs**  
    **Q:** How are Chinese EV tariffs affecting PPG's business?  
    **A:** PPG saw a step-down in China auto production plans after EV tariff announcements, as customers adopted a cautious approach due to export uncertainties.  **[PPG_3393637_6]** **[PPG_3393637_16]**  However, they believe this is moderating the growth curve rather than changing its trajectory, with EV production in China still projected to grow by **14%** in **2024**.  **[PPG_3393637_23]** 

9d830665c99ce5d95dd8957d852597f8c63c11de9978530207847ed2c6115f0e

- **Weaker-than-expected performance in Europe**, particularly in decorative ("deco") and automotive segments, with **Q1 results below expectations** and uncertainty about recovery. Management noted that Europe was softer than expected, especially in France and the Nordics, and they are not seeing significant improvement yet.  **[PPG_3380130_12]**
- **Higher wage inflation and logistics expenses** are putting pressure on margins, and while the company aims to offset these costs with targeted price increases, these expenses are **higher than expected**, potentially challenging profitability.  **[PPG_3380130_17]**
- The company's ambitious guidance of **10% EPS growth** relies heavily on volume growth and productivity gains in the second half of the year, which may be **challenging to achieve given the uncertain macro environment**, particularly considering **higher upstream input costs such as energy trending higher**.  **[PPG_3380130_20]**

05b49f20f4ab3be43668998159f64df777f64058ee71d499ee441a69907df9d9

1. **2024 Pricing Outlook**  
   **Q:** Will total company pricing be up in 2024?  
   **A:** Yes, PPG expects **positive company pricing for the full year 2024**, largely driven by Performance Coatings, with targeted increases beyond that. Big box pricing is mostly contractual, so significant movements are not expected.  **[PPG_3370514_4]** 

2. **Raw Material Costs Impact**  
   **Q:** How will raw material costs impact margins in 2024?  
   **A:** Raw material costs remain **significantly higher on a multi-year basis**, but PPG expects **incrementally beneficial invoice pricing** as raw materials moderate. Suppliers have ample capacity, focusing on volume, which should improve PPG's P&L throughout the year.  **[PPG_3370514_5]** 

3. **Maintaining Price Increases**  
   **Q:** Can PPG maintain price increases despite raw material trends?  
   **A:** PPG is **confident in holding onto price increases in 2024**, not due to mix changes, but because raw materials, while moderating, remain elevated compared to 2019. In Performance Coatings, price increases are secured due to unique value propositions, and they don't expect upstream supply dynamics to change dramatically.  **[PPG_3370514_6]** 

4. **Auto OEM Outlook**  
   **Q:** Why is Auto OEM guidance down for Q1?  
   **A:** PPG expects **low single-digit declines in Auto OEM volumes in Q1** due to strong double-digit comps from Q1 2023 and some index pricing rollbacks. However, they remain **bullish on auto for the full year 2024**, anticipating volume leverage and content growth in EVs.  **[PPG_3370514_7]** 

5. **Cash Flow and Inventory**  
   **Q:** Should we expect cash flow to move with EBITDA?  
   **A:** Generally, EBITDA serves as a proxy for cash flow. PPG anticipates cash flow to be commensurate with EBITDA growth, with working capital movements influencing cash flow. They plan to **work down a couple hundred million dollars** of excess raw materials inventory in 2024, positively impacting cash flow.  **[PPG_3370514_7]** 

6. **Home Depot Partnership**  
   **Q:** Is the partnership with Home Depot meeting expectations?  
   **A:** The relationship and progress on the Pro program are **going as expected**, with good sell-out in the fourth quarter. However, challenges in the DIY segment are offsetting gains, affecting overall performance in the architectural coatings business.  **[PPG_3370514_8]** 

7. **China Sales Strength**  
   **Q:** Is China's strength primarily domestic or export-driven?  
   **A:** PPG's China strength is **both domestic and export-driven**, but the majority of vehicles painted in China **stay in China**. The largest EV producer in China is beginning to export, providing **incremental upside**.  **[PPG_3370514_9]** 

8. **Titanium Dioxide Pricing**  
   **Q:** What is the outlook for TiO2 prices?  
   **A:** PPG is seeing **very good availability** of TiO₂, with **modestly lower pricing** compared to last year. Prices are not down as much as other raw materials but are definitely lower than last year. PPG continues to **reduce TiO₂ content in formulations by about 1% per formula** without sacrificing performance.  **[PPG_3370514_11]** 

4799d4c8deb7051edc9c3edeffc25b428d6095dc6cd7b9c1b210d32b5ec6a5e2

PPG Industries Inc (PPG)

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