Coatings World - July 2014

Sales of PPG Industries’ three coatings business segments – Performance Coatings, Industrial Coatings and Architectural Coatings EMEA – combined for $12.78 billion in revenue in 2013, up from $11.48 billion the year before.

“Thanks to our customers and employees throughout the world,
2013 was one of the most successful years in our company’s 130-
year history, both financially and strategically,” said Charles Bunch,
chairman and CEO. “As we look forward, a key focus is to achieve
further growth in each of our businesses and regions. To help drive
our growth, we are continuing to evaluate potential acquisitions,
are expanding our organic capital funding, including several key
projects like a new coatings manufacturing facility in Russia, are
emphasizing our new product development pipeline, and are invest-
ing more in PPG’s brands.”
Performance Coatings, comprised of the refinish, aerospace, pro-
tective and marine and architectural – Americas and Asia Pacific
coatings businesses, reported net sales increased $1.12 million to
$5.87 million primarily due to net sales from businesses acquired
and modestly higher pricing partially offset by lower sales vol-
umes. Automotive refinish volumes were level with the prior year as
growth in the Asia Pacific and Latin American regions offset volume
declines in Europe, while the North American refinish volumes were
consistent with 2012. Offsetting the segment sales volume gains was
a decline in volume in the protective and marine coatings business
due to further, notable weakness in the Asian marine new-build
market reflecting lower global demand. U.S. and Canada architec-
tural coatings sales volume declined by low-single-digit percent-
ages with mid-to-high single digit percentage same store growth in
company-owned stores, lower sales in national retail accounts and
lower sales in the independent dealer channel.

Industrial Coatings, which includes automotive OEM, industrial
coatings and packaging coatings, saw net sales increase $466 mil-
lion from the prior year, to $4.86 million primarily due to volume
growth and net sales from acquired businesses. In 2013, PPG’s
global automotive OEM coatings sales volumes grew 10 percent,
outpacing global industry auto production growth of approximately
three percent year-over-year. The industrial coatings business ex-
perienced varied sales volume results by region compared with the
prior year, as strong improvements across emerging regions and
modestly higher volumes in North America were offset by weak
demand in Europe.
Architectural Coatings – EMEA net sales decreased to $85 mil-
lion due to lower sales volumes as economic conditions worsened
in most European countries. However, market demand improved
somewhat in the second half of the year but remained negative over-
all and mixed across the region. Poor weather conditions in the first
half of 2013 were also a contributor to the decline in sales volumes.
The decline in sales volumes was partially offset by the impacts of
favorable pricing and foreign currency translation.
PPG Industries

Pittsburgh, Pennsylvania/USA
www.ppg.com02

KEY EXECUTIVES

Charles E. Bunch, chairman and CEO; Michael H. McGarry, executive VP; Viktor R. Sekmakas, executive VP; Cynthia A. Niekamp, senior VP, automotive OEM coatings; Bryan Iams, VP, corporate communications, marketing, and government and community affairs; Charles F.

Kahle II, VP, coatings research and development
and CTO; Barry N. Gillespie, VP, Aerospace
Products; Timothy M. Knavish, VP, Protective and
Marine Coatings; John R. Outcalt, VP, Global
Automotive Refinish; Douglas S. Pegg, VP,
Packaging Coatings; Michael Horton, president,
PPG Asia Pacific and VP, Automotive Refinish and
Architectural Coatings, Asia Pacific; Jean-Marie
Greindl, president, PPG EMEA and VP, Automotive
Coatings, EMEA; Gregory B. Benckart, VP,
Automotive Refinish, Americas; Gary R. Danowski,
VP, Automotive Refinish, EMEA; John C. Richter,
VP, Operations, Coatings, Asia Pacific; Vincent
Robin, VP, Automotive Coatings, Asia Pacific;
Scott B. Sinetar, VP, Architectural Coatings, North
America; James G. Stutelberg, VP, Automotive
Coatings, Americas; Ram Vadlamannati, VP,
Architectural Coatings – EMEA; Willie Wu
(Chunping), VP, Industrial Coatings, Asia Pacific;
Pauline Yuen, VP, Refinish Coatings, Asia; Richard
J. Zoulek, VP, Industrial Coatings, Americas.

PUBLIC COMPANY YEAR ESTABLISHED: 1883

REVENUE: $12.78 billion s (2012: $11.48 billion)

SEGMENT BREAKDOWN

• Aerospace coatings • Packaging coatings • Automotive OEM coatings • Industrial coatings • Automotive refinish coatings • Protective and Marine coatings • Architectural coatings

Key Developments 2013

• Finalized the separation of PPG’s former commodity chemicals business.

• Completed the acquisition of the North American architectural coatings business of AkzoNobel.

• Acquired certain assets of specialty coatings provider Deft Inc., enhancing PPG’s aerospace coatings product portfolio.

• Opened a new electronic materials group manufacturing cell at PPG’s Springdale, PA facility, positioning PPG in the fast-growing global electronics market for conductive inks and coatings.

• Opened a new automotive OEM coatings development and application center in Tianjin, China.

• Inaugurated a new manufacturing facility for the production of heavy-duty equipment coatings in Tianjin, China • Established a new North American architectural coatings headquarters in Cranberry Township, PA and announced expansion of PPG’s technology center in Harmar Township, PA.