PPG Capital

Markets UpdateVince MoralesSenior Vice President

and Chief Financial Officer

CITI BASIC MATERIALS CONFERENCE

DECEMBER 3, 2019

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 the use of the words “aim,” “believe,” “expect,” “anticipate,”

“intend,” “estimate,” “project,” “outlook,” “forecast” and other expressions that indicate future events and trends. Any forward-

looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation

to update any forward looking statement, whether as a result of new information, future events or otherwise. You are advised,

however, to consult any further disclosures we make on related subjects in our reports to the Securities and Exchange

Commission. Also, note the following cautionary statements:

Many factors could cause actual results to differ materially from the Company’s forward-looking statements. Such factors

include global economic conditions, increasing price and product competition by foreign and domestic competitors,

fluctuations in cost and availability of raw materials, the ability to achieve selling price increases, the ability to recover

margins, customer inventory levels, our ability to maintain favorable supplier relationships and arrangements, the timing of

and the realization of anticipated cost savings from restructuring initiatives, the ability to identify additional cost savings

opportunities, difficulties in integrating acquired businesses and achieving expected synergies therefrom, economic and

political conditions in the markets we serve, the ability to penetrate existing, developing and emerging foreign and domestic

markets, foreign exchange rates and fluctuations in such rates, fluctuations in tax rates, the amount of future dividends, the

impact of future legislation, the impact of environmental regulations, unexpected business disruptions, the effectiveness of

our internal control over financial reporting, the unpredictability of existing and possible future litigation, including asbestos

litigation, and governmental investigations. However, it is not possible to predict or identify all such factors. Consequently,

while the list of factors presented here and under Item 1A of PPG’s 2018 Form 10-K is considered representative, no such list

should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present

significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in the

results compared with those anticipated in the forward-looking statements could include, among other things, lower sales or

earnings, business disruption, operational problems, financial loss, legal liability to third parties, other factors set forth in

Item 1A of PPG’s 2018 Form 10-K and similar risks, any of which could have a material adverse effect on the Company’s

consolidated financial condition, results of operations or liquidity.

All of this information speaks only as of December 3, 2019, 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 otherwise required by applicable law.

Forward Looking Statements

2

A global maker of paints, coatings and

specialty materials, with net sales of

$15.4 billion (2018)

Corporate Social Responsibility Awards

• Ranked #31 on the U.S. 500 Newsweek Green Rankings (2018)

• Forbes Best Employers for Diversity (2019)

Product and Process Awards

Earned R&D 100 Awards for two technologies in mechanical devices / materials category (2018)

Customer Awards

Named Supplier of the Year by Home Depot

(2018)

• Recipient of Uni-Select’s Diamond Award (2018)

How We Rank

Our employees protect and beautify the world

Ranked among the “World’s Most Admired Companies” by

Fortune Magazine in 2018

Who We Are

A leader in all our markets: construction,

consumer products, industrial and

transportation markets and aftermarkets

Headquartered in Pittsburgh,

Pennsylvania, with operations in more

than 70 countries

Founded in 1883

Fortune 500: Ranked 191 (2018)

PPG Background and Recent Accolades

3

2018 PPG Net Sales & Adjusted EBITDA Margin

PPG Business Segments

Performance Coatings

• Automotive Refinish Coatings

• Aerospace Coatings

• Protective & Marine Coatings

• Architectural Coatings Americas & Asia

Pacific

• Architectural Coatings EMEA (Europe,

Middle-East and Africa)

Industrial Coatings

• Automotive OEM Coatings

• Industrial Coatings

• Packaging Coatings

• Specialty Coatings & Materials

~60% / 17.3%

~40% /15.9%

Performance CoatingsIndustrial Coatings

Broad coatings industry participation / 2019 focus on margin recovery 4

See detailed reconciliation in appendix

• Strong operating margin improvement: third quarter +220bps

• PPG above-market sales performance in Aerospace, Marine,

and Protective Coatings

• Broad and weakening macro industrial demand in second half

• Six consecutive quarters of greater than +2% pricing

• Self-help execution of cost savings ~$80 - $85 million

• Closed multiple acquisitions: annualized revenue ~$500 million

• Strong balance sheet flexibility remains

2019 Summary

Record reported and adjusted earnings per diluted share in

third quarter, 20195

PPG: Creating Shareholder Value

Growth

Orientation

• Profitable organic growth led by innovation

• Aim to match or exceed coatings end-use markets

and/or regional growth rates

• Expand presence in key emerging regions

Operational

Excellence

Cash

Deployment

• Aggressively manage all elements of cost structure

• Maximize free cash flow - continuous improvement in

working capital

• Manage impact / risk of legacy items, (i.e. pensions)

• Balance cash deployment focused on business growth

and shareholder returns

• Maintain heritage of annual per share dividend increases

• Prioritize value creating M&A, including synergy capture,

with excess cash utilized for share repurchases

Drive earnings improvement through profitable growth and cash deployment 6

Environmental Formulation Application Functionality Color

7

Innovation Levers at PPGDriving innovation across all aspects of coatings technology

2016

R&D 100 Finalist

2018

R&D 100 Finalist

Low Temperature

Cure

Coating System

for Ferrari

DESOTHANE ®

Solar Heat

Management

Coatings

Innovation Levers

2019

R&D 100 Winner

Powercron ® 160

Anodic Epoxy

Electrocoat

OLYMPIC ®

SMARTGUARD,

Multisurface

Waterproofer

2018

R&D 100 Winner

2017

R&D 100 Winner

LIQUID NAILS®

Fuze*It®

Aerospace: Technology Driving Sales Growth

Environment

• Cooler interior cabin temperature

• Reduce energy costs

Heat Management - Airplane

Lightweight: Windshields• Extend flight range and improve operating efficiency

• Composite windshields reduce aircraft weight by

more than 100 lbs.

Aerospace’s strong 2019 growth driven by leading technologies 8

9

PMC: Advantaged Technology

PPG PITT-CHAR® NX

Passive Fire Protection

Next generation flexible fire protectionReduced coating thickness and weight

Faster coating application

PPG PSX Product Line

Infrastructure Corrosion Protection

Advanced Epoxy Polysiloxane (PSX)Two coat system saves time and money

Easy cleaning and touch-up extends service life

• On track to exceed initial 2019 cost savings target of $70 million

• TiO2 reformulation: 2% reduction in usage in 2019

• Low functional costs as a percent of sales

• Corporate cost below industry averages

• Strong cash generation led by working capital reduction

Operational ExcellenceFocused on execution and results across all operations and functions

Expect further operating margin improvement in 2020

10

Diverse portfolio contributes to industry leading

margins and return on capital

Adjusted EBITDA margin percent of sales (FY18)

19%16% 16%

13%11%

See detailed reconciliation in appendix

~15%

~13% ~12%

~8%

~5%

• Investment flexibility via access to extensive coatings M&A pipeline

• Experienced acquirer with leading adjusted return on capital including benefit from

M&A synergy capture

• Leading industry margins aided by ability to share innovation/technologies across

broad business portfolio

Industry leading 2018 adjusted return on capital

15%

8%

12%13%

5%

11

See detailed reconciliation in appendix

PPG aggressively manages cost structure

SG&A as % of sales Corporate cost as % of sales

Recent PPG Cost Savings Programs

Date Focus Target

Savings

Status

Q4, 2016 Reduce Europe operational footprint, marine coatings

business unit cost structure, acquisition synergy capture

~$125 million Complete

Q2, 2018 Adjust cost structure following U.S. architectural customer

assortment changes

~$85 million Underway

Q2, 2019 Continue to optimize global cost structure ~$125 million Underway

Source: Annual company filingsSource: Annual company filings

12

Acquisitions contribute to sales growth

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Acquisition Sales Growth Over Prior Year

Estimated

annualized sales*

Notable acquisitions:

2008 – SigmaKalon

2013 – AkzoNobel Arch. NA

2014/5 – Comex (partial years)

~3% average sales

growth from

acquisitions

(USD MM)

Acquisitions supplement organic growth

*Incremental bar represents estimated annualized sales from acquisitions completed in 2019

13

Recent Acquisitions

Hemmelrath (April 2019)

• Automotive OEM Coatings

• Technology & manufacturing

• Waterborne primers

Whitford (March 2019)

• General industrial coatings

• Technology / new product line

• Low friction coatings

SEM (December 2018)

• Automotive Refinish Coatings

• Lead manufacturer of niche

products that eliminate repair

steps and require less labor

14

2018

Expanded Cash Deployment

• Generated ~$1.5B of cash from

continuing operations

• $2.2B returned to shareholders

• $1.7B repurchases

• $0.5B dividends

• 7% quarterly dividend increase

• Completed 4 acquisitions

• Higher operating cash flow of

~$1.3B compared to prior year

• 6% quarterly dividend increase

• Completed 4 acquisitions

through November 2019

• Strong balance sheet remains

$0

$1,000

$2,000

$3,000

$4,000

'09 '11 '13 '15 '17 ‘18

Increased

Average

M&A Share repurchases

$MM

Cas

h d

ep

loym

en

t

Average

~$800MM

~$1.8MM

Q3 YTD 2019

15

Sustainability Initiatives

2018 Progress 2025 Goals

PPG recently earned EcoVadis Gold rating for corporate social responsibility 16

• Strong and balanced portfolio of coatings, paints, and specialty

materials businesses driving industry leading financial metrics

• Continue to invest in technology to differentiate and support

our customers’ growth

• Margin improvement is expected to continue in 2020

• Disciplined deployment of free cash flow focused on

shareholder value creation through accretive acquisitions and

share repurchases

• Well positioned for earnings growth and strong cash flow

generation

Summary

17

www.ppg.com

Thank you for your interest in PPG

Industries, Inc.

Contact Information:

Investors:

John Bruno

(412) 434-3466

18

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Appendix

2018 Adjusted return on capital reconciliation

(in millions, except percentages)PPG**

Sherwin-

WilliamsAkzoNobel RPM

Axalta

Coatings

Systems

Currency USD USD Euro USD USD

Net Earnings as Reported 1,323 1,109 455 338 207

Total Net Adjustments, after-tax (see details

below)

126 379 107 47 79

Adjusted Net Earnings 1,449 1,488 562 385 286

Net Interest Expense (after-tax)* 92 279 58 79 121

Adjusted Net Earnings + Net Interest Expense 1,541 1,767 620 464 407

Capital (Average Debt & Average Equity) as

Reported

9,675 13,606 11,685 3,666 5,130

Net Adjustments (see above) 126 379 107 47 79

Adjusted Average Capital 10,048 13,985 11,792 3,713 5,209

Adjusted Return on Capital 15% 13% 5% 12% 8%

Sources for Summary of Net Adjustments:

PPG: Net income impact of non-recurring items as disclosed in the 2018 Form 10-K p. 31.

Sherwin-Williams: Net income impact of non-recurring items of integration costs, environmental expenses, California litigation expense, and pension plan settlement expense as noted in the Fourth

Quarter 2018 Earnings Press Release p. 5 (assuming a tax rate of 24%). This calculation does not include the adjustment for purchase accounting impacts.

AkzoNobel: Net income impact of non-recurring identified items mainly related to transformation cost and one-off non-cash pension costs as noted in the Q4 and full-year 2018 results presentation p. 3.

RPM: Net income impact of non-recurring items of inventory-related charges, restructuring expense, charge to exit Flowcrete China, corporate governance professional fees, and ERP consolidation plan

as noted in the Reconciliation of Non-GAAP for 4th Quarter 2018 presentation slide 8 (assuming a tax rate of 24%).

Axalta Coatings Systems: Net income impact of non-recurring items of termination benefits, debt extinguishment and refinancing related costs, and offering and transaction costs as noted in the Fourth

Quarter and Full Year 2018 Financial Results presentation, slide 15.

*Tax impact calculated using a 24% tax rate

**Does not foot due to the rounding effect of net adjustments

20

2018 Adjusted EBITDA reconciliation

(in millions, except percentages)

PPG Sherwin-

WilliamsAkzoNobel RPM

Axalta

Coatings

Systems

Currency USD USD Euro USD USD

Sales 15,374 17,534 9,256 5,322 4,670

Income before taxes 1,693 1,360 573 417 268

Unusual or Infrequent Charges* 189 499 193 62 92

Interest, net 95 367 52 84 160

Depreciation & Amortization 497 596 239 128 369

EBITDA, adjusted 2,474 2,822 1,057 691 889

% of Sales 16% 16% 11% 13% 19%

Adjusted EBITDA as % of Sales:

Amounts in millions, except percentages, reflect most recent year-end. Compiled from publically available segment disclosures.

PPG results from continuing operations, as disclosed in the most recent 10-K and Annual Report

Akzo Nobel results from continuing operations as disclosed in the Q4 2018 earnings release

*Unusual or Infrequent Charges:

PPG: Pre-tax impact of certain items as disclosed in the 2018 Form 10-K p. 31.

Sherwin-Williams: Mainly related to integration costs, environmental expenses, California litigation expense, and pension plan settlement expense.

AkzoNobel: Mainly related to transformation costs and one-off non-cash pension costs.

RPM: Inventory-related charges, restructuring expense, charge to exit Flowcrete China, corporate governance professional fees, and ERP consolidation plan.

Axalta Coatings Systems: Termination benefits, debt extinguishment and refinancing related costs, and offering and transaction costs

21

22

2018 PPG Segment EBITDA ReconciliationSegment EBITDA as % of Sales:

($ in millions, except percentages)

Performance

Coatings

Industrial

Coatings

Corporate/Non-

Segment ItemsTotal PPG

Net sales* $9,087 $6,287 $0 $15,374

Segment Income* $1,300 $818 N/A $2,118

Corporate Unallocated* N/A N/A (146) $(146)

Legacy Items* N/A N/A 5 5

Depreciation & Amortization* 274 181 42 $497

EBITDA, adjusted $1,574 $999 $(99) $2,474

% of Sales 17.3% 15.9% N/A 16.1%

*Source of information is Footnote 20 – Reportable Business Segment Information in the 2018 Form 10-K (pgs. 90 and 91)