morgan stanley global chemicals, agriculture & packaging

Morgan Stanley Global Chemicals, Agriculture & Packaging Conference

November 12, 2019

RPM International Inc.

Russell L. Gordon, Vice President & Chief Financial OfficerScott Copeland, Senior Director – Planning and

Financial Analysis

Forward-Looking Statements & Regulation G

This presentation contains “Forward-Looking Statements” as defined in the Private Securities Litigation ReformAct of 1995. Actual results may differ materially from expectations and are subject to certain risks anduncertainties such as those described in RPM’s periodic reports and statements filed with the Securities andExchange Commission and available through the company’s website, www.rpminc.com. We do not undertakeany obligation to publicly update or revise any forward-looking statements to reflect future events, informationor circumstances that arise after the date of this presentation.

This presentation includes certain company data that do not directly conform to generally accepted accountingprinciples, or GAAP, and certain company data that has been restated for improved clarity, understanding andcomparability, or pro forma. All non-GAAP data in this presentation are indicated by footnote. Tablesreconciling such data with GAAP measures are available through our website, www.rpminc.com under InvestorInformation/Presentations.

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A world leader in specialty coatings, sealants, building materials and related services.

MANUFACTURING FACILITIES IN 26 COUNTRIESFOUNDED: 1947

HEADQUARTERS: Medina, OH

STOCK LISTING: NYSE(Symbol: RPM)

FISCAL 2019 SALES: $5.6 Billion

SALES LOCATIONS: 171 countries and territories

EMPLOYEES: 15,000

DIVIDEND RECORD

STOCKHOLDERS(percent of total shares)

46consecutive years

of dividend increases

Institutional: 81%693 Institutions

Individual: 19%139,431 Individuals

Q U I C K FA C T S

RPM At A Glance

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HISTORY OF ENTREPRENEURIAL

GROWTH

Extraordinary 72-year history

of growth, innovation and value creation with the reputation as best

home for entrepreneurial companies

2020 MAP TO GROWTH

Transforming RPM into a more connected and

efficient company focused on operational

excellence and continuous improvement

BUILDING A BETTER RPM

Combining entrepreneurial legacy

and the discipline of continuous

improvement driving operational excellence

Positioning RPM for the Next Level of Growth & Value Creation

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Entrepreneurial Operating Philosophy • Competitive Advantage of Leading Brands • Balance Between Consumer and Industrial Markets • Growth Strategy Balanced Between Internal Investment and

Acquisitions • Connections Creating Value • Sustainable Shared Value

Industrial Segment $2.9 billion (52%)

Consumer Segment $1.9 billion (34%)

Specialty Segment $800 million (14%)

$5.6 billion (May 31, 2019)

World Leader in Coatings, Sealants and Building Materials

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CONSUMERGROUP

PERFORMANCECOATINGS GROUP

CONSTRUCTIONPRODUCTS GROUP

SPECIALTYPRODUCTS GROUP

Entrepreneurial Approach to Customers with Leading Brands Driving Innovation and GrowthCenter-Led in Operations and Administration, Driving Efficiency and Continuous Improvement

Value of 168: Transparency, Trust & Respect

FY19 SALES: $5.6 BILLION

Proforma Sales: $1.9 billion - 34%




Operating Groups Drive Growth & Efficiency Through Four Reportable Segments

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Construction Products GroupOverview

FISCAL 2019 PROFORMA SALES:

$1.9 BILLION34% of RPM total

PRODUCT CATEGORIES• Construction Sealants &

Adhesives• Coatings & Chemicals• Roofing Systems• Concrete Admixture & Repair

Products• Building Envelope Solutions• Insulated Cladding• Flooring Systems• Waterproofing Solutions

APPLICATIONS

Industrial, commercial and infrastructure

DISTRIBUTION

Sold to distributors, contractors and direct to

end-users

GEOGRAPHIC FOOTPRINT

Worldwide, with particular concentration in the Americas and Europe

BUILDING ENVELOPEAir | Moisture | Thermal

• 6 sides of the Building• Floor (seamless)

• Fire protection

INFRASTRUCTUREConcrete | Concrete Protection

• Bridge• Rail• Transit• Highway

• Tunnel• Water• Power

TARGET MARKETS

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Construction Products GroupLeading Brands

GLOBAL BRANDS

REGIONAL BRANDS

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APPLICATIONS

Industrial and commercial

DISTRIBUTION

Sold to contractors and distributors, as well as directly to

end-users through a unique supply-and-apply model serving

manufacturers, public institutions and commercial

customers


Worldwide, spanning approximately 120

countries and territories with 55-60% of sales in the

U.S.

Performance Coatings GroupOverview

PRODUCT CATEGORIES:• High-Performance Flooring

Solutions• Corrosion Control &

Fireproofing Coatings• Infrastructure Repair

Systems• Fiberglass Reinforced

Plastic Gratings• Drainage Systems

TARGET MARKETS:• Manufacturing • Bridge & Highway• Food & Beverage• Metals & Mining

• Commercial Spaces• Pharmaceutical• Power• Offshore Oil & Gas

• Petrochemical• Transportation• Marine• Healthcare

• Water Wastewater• Technology• Pulp & Paper• Renewable Energy

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Performance Coatings GroupLeading Brands

FIREPROOFING SYSTEMS FLOORS FOR COMMERCIAL SPACES BUILDING MAINTENANCE SERVICES RAILINGS

RESURFACING & REPAIRING BRIDGES FIBERGLASS REINFORCED PLASTIC GRATINGSSANITARY FLOORS FOOD & BEVERAGEPROTECTIVE COATINGS

COATINGS FLOOR SYSTEMS INFRASTRUCTURE FRP GRATING

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APPLICATIONS

Home maintenance and improvement

DISTRIBUTION

Sold through home improvement centers,

hardware and paint stores, mass merchants and craft

shops


Primarily in North America, with an increasing presence in Europe, Australia, South Africa and South America

Consumer GroupOverview



PRODUCT CATEGORIES:• Small-Project Paints & Coatings• Primers, Caulks & Sealants• Hobby & Craft Products• Specialty Coatings• Wood Stains & Finishes• Wall & Wood Repair Products• Household Cleaners & Stain Removers• Floor Finishing Systems• Plumbing & Water Cleanup Solutions

TARGET MARKETS:• Do-it-Yourself• Makers• Professionals

• Contractors• Architects• Designers

• Industrial• Property & facility

managers

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Consumer GroupLeading Brands

#1 Supplier in the Small Project

Paint Category Worldwide

#1 Caulk & Sealant Supplier in North America

Fastest Growing Supplier of Wood Finishes in North

America

#1 Primer Brand in Customer Satisfaction

among Professionals in North America

#1 Brand of Wall Repair and

Spackle in North America

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APPLICATIONS

Niche protection, restoration,

improvement and enhancement

DISTRIBUTION

Sold to contractors and distributors, as well as directly to end-users


Primarily in the United States, with a growing presence

throughout Europe

Specialty Products GroupOverview



PRODUCT CATEGORIES:• Fluorescent Pigments• Wood Stains, Finishes &

Treatments• Powder Coatings• Marine Coatings• Restoration & Cleaning

Solutions• Specialty OEM Coatings• Edible Coatings

TARGET MARKETS:• Food, Pharm,

Cosmetics• Furniture &

Cabinetry• Packaging, Safety

Equipment, Apparel

• Appliance, Auto, Marine, Construction

• Marine, Fuel, Furniture Protection, Cosmetics

• Agriculture, Forestry, Lumber

• Restoration & Cleaning Equipment & Chemicals

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Specialty Products GroupLeading Brands

#1 Supplier of Daylight

Fluorescent Colorants Worldwide

World Leading Distributor of Professional

Restoration and Cleaning Solutions

#1 in North America for Professional Touch-up and

Repair Products for Furniture and

Cabinetry

Global Market Leader in Water-

Based, Antifouling Paints for the

Marine Industry

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2020 MAP to Growth Overview

PURPOSETo position RPM for sustained, profitable growth creating superior value for its customers, entrepreneurs, associates and shareholders.

VISIONTo transform RPM into a more connected and efficient company focused on operational excellence and continuous improvement, while maintaining the strengths of its entrepreneurial culture.

Maintain Entrepreneurial Growth Culture

Align to Execute

Increase Operational Efficiency

• $6.25 bb Revenues

• $1.0 bb EBIT on an annualized run rate

• $1.5 bb Return of Capital

GOALSBy May 31, 2021, RPM is

targeting improvements to:

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Opportunities to improve: Yields with better package fill control and material composition of finished goods

OEE (Overall Equipment Effectiveness) via engineered availability improvement

Capacity usage and strengthen new product development, service and cost efficiency

Culture by focusing on continuous improvement

Optimize asset base: Fewer and more efficient plants

• Where appropriate, serving multiple companies across RPM operations and across groups

Human capital

Investment capital

Our Manufacturing Has Prioritized Obsessive Customer Service Over Efficiency

– We Can Do Both

Center-Led Manufacturing Strategy

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CENTER-LEDA central group to coordinate procurement, leverage spending, set policy, maintain master material lists and share leading practices.

Global Procurement

Operating Group Purchasing

These areas represent over $1.5 billion of addressable spend, presenting significant opportunities for margin improvement

Initiative Categories Key Levers

CHEMICALS Structured sourcing process, value engineering, specification standardization, in-sourcingPACKAGING

OTHER/INDIRECT New suppliers, MRO, facilities, and administrative spend

IN-FLIGHT PROJECTS Distributor consolidation, direct sourcing, price level

Center-Led Procurement Strategy

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4 IT CENTERS OF EXCELLENCE AREAS

1 IT EXECUTIVE OVERSIGHT COMMITTEE (ITEOC)

Corporate Driven Center-Led IT Expedite the integration

of our organization from 45 ERP platforms running

on 75 separate instances to 4 primary group centered

ERP systems

Corporate Driven Centralized and Regional Shared Service Centers

Reduce the number of -• Legal entities (364),• Auditable entities (163) and,• Accounting locations (104) to

centralized and regional accounting and administration centers

Center-Led Organizationworking with our

4 operating groups to reduce complexity, become more efficient, and improve

the control environment for finance, accounting and IT

Center-Led Accounting, IT and Administration Strategy

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MAP to Growth Wave 1 Key Achievements: Manufacturing

• Identified and executed on targeted $25 mm in annualized savings

• Closed 12 plants• Instituted common reporting process• Instilling continuous improvement culture

MANUFACTURING

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MAP to Growth Wave 1 Key Achievements: Procurement

• Identified and executed on $36 mm in annualized savings

• $16 mm ahead of target

• Formed team from core operations• Working with vendors on supply chain finance• Improved costs by becoming a stronger

partner with major suppliers

PROCUREMENT

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G&A

MAP to Growth Wave 1 Key Achievements: G&A

• Identified and executed on $41 mm in annualized savings

• $3 mm ahead of target

• Reduced more than 600 positions*• Closed 20 warehouses and non-plant locations• Implementation of shared service center• One-third of ERP consolidations complete

*Represents reductions across all functional areas

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$290

$25$20

$38

$25

$36

$41

WAVE 1Sept 2018 – May 2019

WAVE 2June 2019 – May 2020

WAVE 3June 2020 – Dec 2020 TOTAL

WAVES PLAN MAP 2020

Annualized Run Rate

$ in millions

$83 MM EBIT

Annualized Run Rate to Benefit 2021: $101 MM EBIT

Annualized Run Rate to Benefit 2022: $106 MM EBIT

INITIALTARGET

UPDATEDTARGET

TARGET

Annualized Run Rate to Benefit 2020:

TARGET TARGET

$102 MM EBIT

MANUFACTURING

PROCUREMENT

G&A

$101

$106

• Wave 1 completed ahead of initial target by 23%, or $19 mm• Procurement and G&A ahead of plan; manufacturing on plan• $7 mm originally targeted in manufacturing reclassified to G&A

• Some Wave 2 savings captured early

• Remain confident in total targeted savings of $290 mm

Waves Plan Summary: Wave 1 Exceeds Initial Target by 23%

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$53 Million Wave 1 Realized Savings Impact to FY19

Category Q1-Q3 FY 19 Q4 FY19 FY 19

Manufacturing $6 $5 $11

Procurement $4 $4 $8

G&A $22 $12 $34

TOTAL $32 $21 $53

• Figures show actual impact measured by financial performance from completed projects (not annualized run rate)

• $32 million realized during first nine months negated by continuing higher raw material costs that impacted RPM and its peers

$ in millions

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Fiscal 2019 Fourth-Quarter Adjusted Results

C O N S O L I D AT E D

Three mos. ended May 31 2019 2018 %

Sales $1,601 $1,558 +2.8%

Gross Profit $694 $656 +5.7%

SG&A $450 $459 (1.9)%

EBIT $241 $197 +22.4%

Net Income $163 $139 +17.5%

Diluted EPS $1.24 $1.02 +21.6%

C O N S U M E R


Sales $585 $548 +6.7%

EBIT $110 $73 +50.6%

S P E C I A L T Y


Sales $207 $197 +5.3%

EBIT $32 $34 (4.2)%

I N D U S T R I A L


Sales $809 $813 (0.5)%

EBIT $116 $109 +5.9%

($ in millions, except per share amounts)SEGMENT RESULTS

• The fourth quarters of fiscal 2019 and 2018 included restructuring and other charges of $36.8 million and $62.2 million, respectively. Excluding the charges in both periods, adjusted EBIT increased 22.4%

• Due to changes in accounting standards for marketable securities, the company excluded the impact of all realized and unrealized gains and losses from investments in marketable equity securities from adjusted EPS for both fiscal 2019 and 2018. Their inherent volatility is outside of management’s control and cannot be predicted with any level of certainty. These investments resulted in a net after-tax loss of $1.7 million for the fourth quarter of fiscal 2019 and an after-tax gain of $3.2 million during the same quarter last year. Excluding the restructuring and other charges, as well as investment gains and losses, adjusted diluted EPS increased 21.6%.

• Recent share repurchases and the retirement of RPM’s 2.25% convertible senior notes due in 2020 resulted in $0.05 per diluted share accretion for the quarter.

• Tables reconciling this non-GAAP data with GAAP measures are available through our website, www.rpminc.com under Investor Information/Presentations.

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$26 Million WAVE 1 Savings Impact to Q1 FY20

Category Q1 FY20

Manufacturing $7

Procurement $7

G&A $12

TOTAL $26

• Figures show actual impact measured by financial performance from completed projects (not annualized run rate)

$ in millions

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C O N S O L I D AT E D

Three mos. ended August 31 2019 2018 %

Sales $1,473 $1,460 +0.9%

Gross Profit $579 $556 +4.2%

SG&A $385 $402 +4.3%

EBIT $193 $154 +25.3%

Net Income $124 $103 +20.1%

Diluted EPS $0.95 $0.76 +25.0%

PERFORMANCE COATINGS GROUP


Sales $297 $296 +0.3%

EBIT $37 $28 +31.0%

CONSUMER GROUP


Sales $479 $477 +0.4%

EBIT $62 $52 +18.6%

($ in millions, except per share amounts)CONSTRUCTION PRODUCTS GROUP


Sales $536 $517 +3.6%

EBIT $87 $71 +23.1%

SPECIALTY PRODUCTS GROUP


Sales $160 $169 (5.1)%

EBIT $29 $26 +8.5%

SEGMENT RESULTS

• Reflects restructuring and other charges, all of which have been incurred in relation to our 2020 Margin Acceleration Plan initiatives.• Investment returns include realized net gains and losses on sales of investments and unrealized net gains and losses on equity securities, which are adjusted

due to their inherent volatility. Management does not consider these gains and losses, which cannot be predicted with any level of certainty, to be reflective of the company's core business operations.

• Adjusted EPS is provided for the purpose of adjusting diluted earnings per share for items impacting earnings that are not considered by management to be indicative of ongoing operations.

• Tables reconciling this non-GAAP data with GAAP measures are available through our website, www.rpminc.com under Investor Information/Presentations.

Fiscal 2020 First-Quarter Adjusted Results

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Reclassification of Shipping Costs Puts RPM SG&A on Par with Peers

• In Fiscal 2020, classified shipping costs to customers as part of COGS instead of SG&A

• Change does not impact EBIT• Puts RPM in line with peers and

other manufacturers

• Provides investors with a better point of comparison

• Had change been in effect in fiscal 2019 -- COGS would have increased by $173.6 million to $3.48 billion, SG&A expenses would have decreased by the same amount to $1.60 billion

• Supports MAP to Growth findings and focus areas

SG&A AS A PERCENT OF SALES

FISC

AL 1

9AS

REP

ORT

ED

FISC

AL 1

9RE

CLAS

SIFI

ED

31.8%

28.7%

GROSS PROFIT MARGIN

FISC

AL 1

9AS

REP

ORT

ED

FISC

AL 1

9RE

CLAS

SIFI

ED

40.6%

37.5%

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Why RPM is a Great Investment Opportunity

Values-driven entrepreneurial growth

culture drives innovation, customer

intimacy andmarket responsiveness

Continuous improvement culture focused on greater operational effectiveness

in manufacturing, procurement,

IT and G&A+

Proven strategy delivers sustainable organic and acquisition growth Portfolio of leading brands that customers know and trust Track record of superior long-term returns for shareholders Disciplined capital allocation for growth initiatives and shareholder returns

=Improved

competitiveness in markets served and ability

to generate greater shareholder returns

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Premium brand strategy that offers speed, service, customized and advanced formulations

Industry leading technical specialists with a focus on application efficiency and solving unique problems consistently anywhere in the world

Highly trained feet on the street provides the power to create and drive markets

Leverage highly differentiated internal strategic technology platforms across operating segments with mature, emerging and niche markets

Driver of category growth with leading market innovation and customer centric focus

Our Unique Products and Services Along With Deep Diversification Allow More Stable Growth

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Global Opportunities for RPM to Continue to Grow

Sustainability: Increasing demand for sustainable products that are user friendly, environmentally safe, stable and provide greater energy efficiency

Technology: Expanding demand for new fire protection and hygienic/sanitary technologies, increased performance and innovative design in commercial and industrial applications

Specialization: Increasing demand for customized formulations and applications

Infrastructure: The strains of population growth and migration, urbanization and climate change offer business opportunities to rehabilitate or repair aging infrastructure

Product Lifecyle: Higher demand for repair and restoration solutions

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“Hire the best people you can find. Create an atmosphere

that will keep them. Then let them do their jobs.”

Frank C. Sullivan, 1947

31

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