#1SWP COVER THE EARTH SHERWIN-WILLIAMS 2020 INVESTOR PRESENTATION#2Forward-Looking Statements SHERWIN-WILLIAMS. This presentation may contain certain "forward-looking statements," as defined under U.S. federal securities laws. These forward-looking statements are based upon management's current expectations, estimates, assumptions and beliefs concerning future events and conditions. Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of the Company that could cause actual results to differ materially from such statements and from the Company's historical results and experience. These risks, uncertainties and other factors include such things as: general business and economic conditions; the Company's ability to successfully integrate past and future acquisitions into its existing operations, as well as the performance of the businesses acquired; strengths of retail and manufacturing economies and the growth in the coatings industry; changes in the Company's relationships with customers and suppliers; changes in raw material availability and pricing; adverse weather conditions or impacts of climate change, natural disasters and public health crises, including the COVID-19 pandemic; the duration, severity and scope of the COVID-19 pandemic and the actions implemented by international, federal, state and local public health and governmental authorities to contain and combat the outbreak and spread of COVID-19, which may exacerbate one or more of the aforementioned and/or other risks, uncertainties and factors more fully described in the Company's reports filed with the Securities and Exchange Commission (SEC); and other risks, uncertainties and factors described from time to time in the Company's reports filed with the SEC. Since it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results, the above list should not be considered a complete list. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. 2#3Why Invest in SHW? } GROWTH OPPORTUNITIES INDUSTRY-LEADING BRAND PORTFOLIO DISTRIBUTION & SERVICE WORLD CLASS SUPPLY CHAIN INNOVATIVE PRODUCTS 3 ៣៦ SHERWIN-WILLIAMS BALANCE SHEET & CASH GENERATION ATTRACTIVE RETURNS SUCCESSFUL ACQUISITIONS EXPERIENCED MGMT & TALENT PIPELINE RESPONSIBLE CORPORATE CITIZEN#4Strategy and Values Providing The Right Solutions For Our Customers ло SHERWIN-WILLIAMS. While Creating Shareholder Value Guided by Our Values MD INNOVATION PERFORMANCE CUSTOMER FOCUSED INDUSTRY LEADING INNOVATION MARKET SHARE GROWTH IMPROVE ROS $ INTEGRITY GROWTH PEOPLE VALUE ADDED SERVICE & DIFFERENTIATED DISTRIBUTION EXPERTISE DRIVE RONAE DRIVE CASH GENERATION SERVICE QUALITY#5ABOUT US SHERWIN-WILLIAMS 2019 REVENUES $17.9 billion 15% 28% 57% THE AMERICAS GROUP PERFORMANCE COATINGS GROUP CONSUMER BRANDS GROUP SALES BY GEOGRAPHY 80% US / CANADA 20% REST OF WORLD (ROW) FOUNDED IN 1866 SHERWIN-WILLIAMS. 61,000+ EMPLOYEES 120+ COUNTRIES 4,750+ STORES INDUSTRY-LEADING PORTFOLIO OF BRANDS *SHERWIN WILLIAMS HGTV HOME QUALITY SINC Purdy MINWAX KRYLON PROFESSIONAL PAINTING TOOLS SHERWIN-WILLIAMS. valspar 5 147 MANUFACTURING & DISTRIBUTION FACILITIES Thompson's WaterSeal Cabot#6SHERWIN-WILLIAMS THE AMERICAS GROUP Results Segment Margin 20.2% 2019 Sales Sales 19.7% $10.2B Residential Repaint Protective & Marine Property Maintenance 19.4% $9.6B New Commercial A SHERWIN-WILLIAMS. $9.1B 2017 2018 2019 KEY DIFFERENTIATORS EL CUSTOMER RELATIONSHIPS TRADEMARK SERVICE EXCEPTIONAL PRODUCTS STORE LOCATIONS COLOR LEADERSHIP 6 DIY New Residential G DIGITAL EXPERIENCE#7SHERWIN-WILLIAMS THE AMERICAS GROUP A SHERWIN-WILLIAMS. SHERWIN Extreme C PAINTERS EDGE Captivate Supreme High Build Construccion Alta Emerald sant INTERIOR LATEX A SHERWIN-WILLIAMS. GROUP OVERVIEW 4,750+ STORES 3,550+ SALES REPS ProClassic E IDE ACRYLIC LATER INTERIOR ACRYLIC LAT tion 3,000+ 2,300+ 1,450+ DELIVERY TRUCKS DRIVERS MANAGEMENT TRAINEES HIRED IN 2019 7#82019 Sales SHERWIN-WILLIAMS Results Adjusted Segment Margin CONSUMER Sales 17.5% 15.5% 13.6% BRANDS GROUP EMEAI $2.7B $2.7B $2.2B KRYLON FUSION 华润漆 Ⓡ Cabot 純境7 F HGTV SHERWIN CAD HOME WILLIAMS INFINITY GOL valspar SIGNATURE Thompson's WaterSeal Signaline S MINWAX WOOD FINISH PENETRATING STAIN tands up to anything RED CHESTNUT 132 2017 2018 2019 KEY DIFFERENTIATORS 00 HERO BRANDS 盯 PREMIER CHANNEL PARTNERS ANZ APAC North America G CATEGORY MANAGEMENT FIELD SUPPORT TRAINING & DIGITAL LEADERSHIP#9SHERWIN-WILLIAMS CONSUMER BRANDS GROUP KRYLON FUSION 华润漆 Ⓡ Cabot 純境7 FIRS 249 SHERWIN HOME WILLIAMS INFINITY GOL valspar SIGNATURE as up to anything Thompson's WaterSeal Signaline S STRATEGIC CHANNEL PARTNERS MITRE 10 LOWE'S MITRE 10 MEGA ORGILL Worldwide Distribution & Retail Services WalmartMENARDS® HERO BRANDS Doit Best B&Q MINWAX WOOD FINISH PENETRATING STAIN RED CHESTNUT 132 valspar Purdy PROFESSIONAL PAINTING TOOLS PREMIUM WOODCARE Cabot HGTV HOME by SHERWIN WILLIAMS QUALITY SINCE 1866 KRYLON MINWAX Thompson's WaterSeal 9#10SHERWIN-WILLIAMS PERFORMANCE COATINGS GROUP valspar & POWDURA ATX 090510 PRETECTIVE & MARINE METALATEX 842 W111 378 U9120 PROCRAFT 9390 173 C90 Results Adjusted Segment Margin Sales 13.0% $3.7B 14.1% 2019 Sales 12.9% Protective $5.2B & Marine $5.0B 2017 2018 2019 KEY DIFFERENTIATORS Automotive Refinish Packaging Coil General Industrial Industrial Wood LOCAL SERVICE MODEL GLOBAL EXPERTISE PRODUCT INNOVATION COLOR SOLUTIONS CUSTOMER FOCUS 10#11SHERWIN-WILLIAMS PERFORMANCE COATINGS GROUP valspar &S POWDURA USB-CO-C ATX 090510 278 U9120 PRETECTIVE & MARINE COATINGS METALATEX 842 W PROCRAFT 9390 173 с 90 8 PROTECTIVE & MARINE COIL COATINGS GENERAL INDUSTRIAL 11 ກ AUTOMOTIVE REFINISH INDUSTRIAL WOOD PACKAGING#12RESEARCH & DEVELOPMENT SHERWIN-WILLIAMS END-TO-END SUPPLY CHAIN SHERWIN-WILLIAMS PAINTS SHERWIN-WILLIAMS PAINTS DRIVES CONTINUOUS IMPROVEMENT GLOBAL PROCUREMENT SUPPLY CHAIN MANAGEMENT MANUFACTURING DISTRIBUTION TRANSPORTATION CUSTOMER SHERWIN-WILLIAMS PAINTS SHERWIN WILLING 12 ERWIN-WILLIAMS PAINTS SHERWIN-WILLIAMS PAINTS SHERWIN-WILMS#13248 CANADA PAINT STORES 231 BRANCHES & FACILITIES 4,106 UNITED STATES PAINT 45 FACILITIES STORES 21 BRANCHES & FACILITIES 4 SHERWIN-WILLIAMS GLOBAL REACH FACILITIES 9 FACILITIES 43 BRANCHES 2 84 & FACILITIES FACILITIES PAINT STORES CARIBBEAN EMEAI The Americas Group Consumer Brands Group Performance Coatings Group Corporate Headquarters LATIN AMERICA/ SOUTH AMERICA 320 30 BRANCHES & FACILITIES PAINT STORES 18 FACILITIES Company operated branches serve automotive, general industrial, industrial wood and coil customers. Facilities include manufacturing facilities, blending facilites, and distribution centers. 13 ASIA-PACIFIC 8 FACILITIES 10 BRANCHES & FACILITIES !!!!!! / / / / / / / 5 FACILITIES 100 PAINT STORES AUSTRALIA/ NEW ZEALAND#14Innovation SHERWIN-WILLIAMS. World Class Research & Development Leads to World Class New Products Maintenance & Durability Visual Appearance Custom Solutions Sustainability The Painting Process Time & Labor 14 valspar & POWDURA ATX 090510 COATINGS METALATEX W 111 PROCRAFT 9390 SuperDe IR REFLECTIVE INTERIOLA TERCE da Emerald Extreme Co ROCENS PAINT&FR INTERIOR ACRYLI PAINTERS EDGE Captivate PAINT & FRIMER IN ONE 华润漆 Ⓡ DESIGNER EDITION 純境 2 HGTV -SHERWIN INTERIOR LATEX KRYLON FUSION 6A+ HOME WILLIAMS INFINITY U9120 Supreme High Build Construccion Alta Emerald sant e Cabot GOL valspare SIGNATURE HIGHHIDING PAINT PRES stands up to anything RECEPTIONAL Btant 173 C 90 merald AIN REFRESH ProClassic tion EXTERIOR ACRYLIC L LATEX Thompson's WaterSeal Simate Serie FlexTemp HEAT AND COLD MINWAX WOOD FINISH PENETRATING STAIN RED CHESTNUT 232 TERIOR ACRYLIC LATEX -PUT-#15Doing Business the Right Way ༧༢ The Employer PROVIDING A SAFE & INCLUSIVE WORK ENVIRONMENT The Citizen MAKING A DIFFERENCE IN OUR COMMUNITIES The Steward GROWING OUR BUSINESS WITH CARE 15 SHERWIN-WILLIAMS#16Sustainable Product Stewardship 9K Waterborne Basecoat System U9004 DEEP BLACK NOR PROFOND MURO PROFUNDO SHERWIN WILLIAMS SHERWIN WILLIAMS EcoSelect NEROUS. QT) ZERO EXTRA W voc INTERIOR INTERIO LATEX LATEX DINTERS FLAT/MATE/MAT WHITE/EXTRA BLANCO/EXTRA BLAN 6503-67386 Cont. Net./Net Cont. 124 FL OZ (3% U.S. QT) 3,66 3.66 SHERWW WILLIAMS ProMar 400 HVORNERO LATER/LATER PARA INTERIORES/ CON KRYLON INDUSTRIAL QUIK -MARK valPure Non-BPA Lining AQUAGUARD, 300 SHERWIN WILLIAMS Harmony SHERWIN POWDURA WILLIAMS PBSB-CO000-C50 GLOSS BLACK RYLIC ED WARRA FOR A BETTER FR ASK SHERWN BILLAS CAUTION MAY CA CAUSES FYE ATATION CAUSES Y CASSE SHERWIN-WILLIAMS SHERWIN WILLIAMS SuperDeck FEATURING PREMIUM DUCKBACK TECHNODOY IR REFLECTIVE EXTERIOR WALLPORNE DECK SHERWIN WILLIAMS ProMar 200 HP ZERO VOC INTERIOR ACRYLIC SOLID dh SUCKBACK Ultra 9KⓇ Waterborne Basecoat System EcoSelectⓇ Zero VOC Interior Latex ProMarⓇ 400 Zero VOC Primer Krylon Quik-TapTM Reusable Spray Device AquaGuardⓇ Coating Solutions Zinc-Free & Water-Based valPure® V70 Non-BPA Epoxy Powdura® ECO Powder Coatings Made from Recycled Plastic HarmonyⓇ Zero VOC Interior Acrylic Latex 16 ProMarⓇ 200 HP Zero VOC Interior Latex SuperDeckⓇ Waterborne Exterior Solid Color Deck Stain#17Financial Highlights Sales $ in billions Adjusted EBITDA $ in millions $11.9 $11.3 $11.1 $15.0 $17.5 $17.9 $1,521 $1,809 $2,007 $2,423 $2,822 $3,057 Adjusted EPS $15.07 $12.85 $11.16 $8.78 $21.12 $18.53 SHERWIN-WILLIAMS Net Operating Cash $ in millions $1,082 $1,447 $1,309 $1,944 $1,884 $2,321 14 15 16 17 18 19 5-Year CAGR = 10.0% 14 15 16 17 18 19 14 15 16 17 18 19 14 15 16 17 18 19 5-Year CAGR = 15.0% 5-Year CAGR = 19.2% 5-Year CAGR = 16.5% 17#18Consistent Capital Allocation CONSISTENT CAPITAL ALLOCATION PHILOSOPHY: WE WILL NOT HOLD CASH SHERWIN-WILLIAMS CAPEX Investment Modest Requirements (<2.0%] TARGET AS % OF SALES Dividend Target 30% of PY GAAP Earnings 41) | 41 CONSECUTIVE YEARS OF INCREASES Strategic M&A Clearly Defined Criteria Share Repurchase Absent Strategic M&A ( 14 14] ACQUISITIONS IN LAST DECADE 32 ] MILLION SHARES PURCHASED IN LAST DECADE 18#19Returning Cash to Shareholders Dividends Per Share 2019 WAS THE 41ST CONSECUTIVE YEAR OF DIVIDEND INCREASES $3.36 $3.40 $3.44 $2.68 $2.20 $2.00 $1.44 $1.46 $1.56 $5.36* 8 $4.52 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 *18.6% increase proposed 19 6 SHERWIN-WILLIAMS Stock Repurchases (millions of shares) -$6 BILLION INVESTED OVER LAST DECADE 4- 0 2 ..... 2010 2011 H 2012 2013 2014 2015 2016* 2017* 2018 2019 OVER THE LAST 10 YEARS, HAVE REDUCED OUR AVERAGE SHARES OUTSTANDING BY 14% OR 15 MILLION SHARES *No market purchases in 2016 and 2017 - focus on debt reduction following Valspar acquisition.#20Comparison of Cumulative Five-Year Total Return $250 $200 $150 $100 2014 2015 Assumes $100 invested on December 31, 2014 and reinvestment of dividends. 2016 2017 The Sherwin-Williams Company S&P 500 Index 20 2018 Peer Group SHERWIN-WILLIAMS 2019 SHERWIN WILLIAMS. Peer group of companies comprised of the following: Akzo Nobel N.V., BASF SE, Genuine Parts Company, H.B. Fuller Company, The Home Depot, Inc., Lowe's Companies, Inc., Masco Corporation, Newell Brands Inc., PPG Industries, Inc., RPM International Inc., Stanley Black & Decker, Inc., and USG Corporation#21Why Invest in SHW? } GROWTH OPPORTUNITIES INDUSTRY-LEADING BRAND PORTFOLIO DISTRIBUTION & SERVICE WORLD CLASS SUPPLY CHAIN INNOVATIVE PRODUCTS 21 ៣៦ SHERWIN-WILLIAMS BALANCE SHEET & CASH GENERATION ATTRACTIVE RETURNS SUCCESSFUL ACQUISITIONS EXPERIENCED MGMT & TALENT PIPELINE RESPONSIBLE CORPORATE CITIZEN#22AMS COVER EARTH SHERWIN-WILLIAMS Appendix SELECTED FINANCIAL & MARKET DATA 22#23Global Paints & Coatings Industry Top Global Manufacturers Coatings Industry 2019 Global Market Top 10 Suppliers ~51% All Others (Thousands of Firms) Sherwin-Williams SHERWIN-WILLIAMS. Paint & Coatings Industry Global Mix by Category (Based on $) Total Coatings 2019 PPG ~ 9.8 Billion Gallons Special Purpose Coatings 20% Architectural Paints 40% Akzo Nobel ~132 Billion Dollars Nippon Axalta Kansai BASF Jotun Asian Paints Masco 23 OEM Coatings 40% Source: KNG Research The use of KNG information in this presentation is for illustrative and consistency purposes only; SHW has not verified accuracy of KNG Research.#24U.S. Architectural Paint Industry SHERWIN-WILLIAMS New Non-Residential 6% (50M Gal) Residential Repaint (Pro) 30% (247M Gal) Non-Residential Repaint (Pro) 15% (126M Gal) New Residential 12% (100M Gal) DIY 37% (308M Gal) Sources: ACA, Department of Commerce, Dodge Data & Analytics, & Company Estimates ~831 Million Gallons in 2019 24#25500 Millions of Gallons 550 600 700 650 750 900 U.S. Architectural Paint Industry Architectural Paint Gallons 850 PRIOR PEAK 800 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2019 -831 Million (-2.0% YoY) 260,000 250,000 240,000 230,000 220,000 210,000 200,000 2000 2001 2002 2003 SHERWIN-WILLIAMS. Non-Residential & Residential Square Footage Sources: ACA, Department of Commerce, Dodge Data & Analytics & Company Estimates Source: Dodge Data & Analytics U.S. Building Stock Data 19% growth in square footage since prior peak should drive continued gallon growth due to larger repaint opportunity 25 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Non-Residential & Residential Sq. Ft in Thousands#2641% 1980 59% 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 DIY 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Contractor Shift Expected to Continue in U.S. & Canada SHERWIN-WILLIAMS 2004 2005 2006 2007 2008 2009 Sources: U.S. Commerce Department, Company Estimates Sherwin-Williams is well positioned to serve both segments 26 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 63% 37% DIY/ Remodeler Paint Contractor#27U.S. Demographics SILENT 1928-1945 BABY BOOMERS 1946-1964 SHERWIN-WILLIAMS GEN X 1965-1980 MILLENNIALS (GEN Y) 1981-1996 ¡GEN (GEN Z) 1997-2012 Transitioning to Senior Living Facilities Aging in place; driving remodeling spend Eventually will downsize Eventually will relocate to active adult facilities Move up creates churn and drives remodeling Most likely to hire contractors Forming households First time homebuyers Demand for entry level homes Driving multifamily and rentals Will further extend household formation Always connected, eComm 75-92 YEARS OLD (AS OF 2020) 23 MILLION 8% OF U.S. POPULATION 56-74 YEARS OLD (AS OF 2020) 72 MILLION 22% OF U.S. POPULATION 40-55 YEARS OLD (AS OF 2020) 65 MILLION 20% OF U.S. POPULATION 24-39 YEARS OLD (AS OF 2020) 72 MILLION 22% OF U.S. POPULATION 8-23 YEARS OLD (AS OF 2020) 78 MILLION 24% OF U.S. POPULATION 27 Source: PewResearch.org. Please Note: above estimates based on Census projections for 2019 US population. Percentages exclude those born before 1928 and after 2012. No chronological end date has been set for Gen-Z.#28Debt Summary (As of June 30, 2020) Maturities of Long-Term Debt $1,619 $25 EUR USD $660 $500 $650 $350 $800 ༔ ༔ ༔ ༔ ༔ ༔ ༔ ༔ ༔ ༔ ༔ $500 2042 $300 28 ... $650 $1,250 $550 $500 SHERWIN-WILLIAMS Fixed vs. Floating Rate Debt Fixed Floating $4 84 2097 6% 94%#29The Americas Group's Stores SHERWIN-WILLIAMS UNITED STATES Louisiana 72 Oregon 60 Newfoundland 2 Alabama 72 Maine 24 Pennsylvania 201 Nova Scotia 7 Alaska 7 Maryland 85 Rhode Island 12 Ontario 99 Arizona 69 Massachusetts 65 South Carolina 89 Prince Edward Island 1 CANADA Arkansas 46 Michigan 121 South Dakota 10 Quebec 40 California 270 Minnesota 67 Tennessee 92 Saskatchewan 7 UNITED STATES Colorado 81 Mississippi 58 Texas 349 CARIBBEAN 84 4,106 Connecticut 42 Missouri 77 Utah 38 LATIN AMERICA PAINT STORES Delaware 19 Montana 19 Vermont 11 Brazil 79 District of Columbia LO Nebraska 24 Virginia 125 Chile 56 Florida 323 Nevada 26 Washington 106 Ecuador 36 Georgia 164 New Hampshire 22 West Virginia 20 Mexico 138 Hawaii 13 New Jersey 98 Wisconsin 82 Uruguay 11 Idaho 28 New Mexico 24 Wyoming 12 TOTAL 4,758 Illinois 158 New York 146 CANADA Indiana 96 North Carolina 166 Alberta Iowa 44 North Dakota 9 British Columbia Kansas 47 Ohio 199 Manitoba 9 Kentucky 58 Oklahoma 55 New Brunswick 2525 28 50 29 248 PAINT STORES CARIBBEAN LATIN AMERICA/ SOUTH AMERICA 84 PAINT STORES 320 PAINT STORES#30Sherwin-Williams North American Paint Store Footprint BRITISH COLUMBIA ALBERTA SASKATCHEWAN Calgary ** MANITOBA * WASHINGTON NORTH DAKOTA MONTANA OREGON ORNIA NEVADA SOUTH DAKGA Los Angeles NEW MEXICO Phoenix San Diego Tijuana ** Juárez Pacific Ocean SONORA San Antonio Houston CHIHUAHUA Océano Arctic Ocean Beaufort Sea ALASKA ор YUKON * Gulf of Alaska Pacific Ocean Monterrey Pacific Ocean Gulf of Mexico Honolulu ONTARIO Ottawa Labrador Sea NEWFOUNDLAND AND LABRADOR QUEBEC Montreal Toronto Chicago New Philadelphia Brooklyn Washington Mar Caribe 30 Gulf of St Lawrence Atlantic Ocean Océano Atlántico Cabot Strait San Juan Saint Pierre **Charlotte Amalie Mar Caribe SHERWIN-WILLIAMS COLORSNAP STUDIO 1233 SHERWIN-WILAMS TRUSTED COLLECTIONS DESIGNER INSPIRI DESIGNER#31Non-GAAP Financial Measures SHERWIN-WILLIAMS Management utilizes certain financial measures (including adjusted segment margin, adjusted EBITDA and adjusted diluted net income per share) that are not in accordance with U.S. generally accepted accounting principles (US GAAP) to analyze and manage the performance of the business. The required disclosures for these non-GAAP measures are shown below. The Company provides such non-GAAP information in reporting its financial results to give investors additional data to evaluate the Company's operations. Management does not, nor does it suggest investors should, consider such non-GAAP measures in isolation from, or in substitution for, financial information prepared in accordance with US GAAP. Adjusted Segment Profit Management of the Company believes that investors' understanding of the Company's operating performance is enhanced by the disclosure of segment profit excluding Valspar acquisition-related costs and other adjustments. This adjusted segment profit measurement is not in accordance with US GAAP. It should not be considered a substitute for segment profit in accordance with US GAAP and may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA EBITDA is a non-GAAP financial measure defined as net income from continuing operations before income taxes and interest, depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure that excludes the Valspar acquisition and other adjustments. Management considers Adjusted EBITDA useful in understanding the operating performance of the Company. The reader is cautioned that the Company's Adjusted EBITDA should not be compared to similarly titled measures reported by other companies. Further, Adjusted EBITDA should not be considered an alternative to Net income or Net operating cash as an indicator of operating performance or as a measure of liquidity. Adjusted EPS Management of the Company believes that investors' understanding of the Company's operating performance is enhanced by the disclosure of diluted net income per share excluding Valspar acquisition-related costs and other adjustments. This adjusted earnings per share measurement is not in accordance with US GAAP. It should not be considered a substitute for earnings per share in accordance with US GAAP and may not be comparable to similarly titled measures reported by other companies. 31#32Adjustments to Segment Profit GAAP to Adjusted Pre-Tax Income by Segment SHERWIN-WILLIAMS Consumer Brands Group Performance Coatings Group ($ in millions) 2017 2018 2019 ($ in millions) 2017 2018 2019 Net external sales $ 2,154.7 $ 2,739.1 $ 2,676.8 Net external sales $ 3,706.1 $ 5,166.4 $ 5,049.2 Segment profit (as reported) $ % of sales (as reported) 202.8 $ 9.4% 261.1 $ 9.5% 373.2 13.9% Segment profit (as reported) % of sales (as reported) $ 262.8 $ 7.1% 452.1 $ 8.8% 379.1 7.5% Other adjustments Other adjustments Trademark impairment 5.1 Trademark impairment 117.0 Inventory accounting change 23.2 Inventory accounting change 35.7 Total other adjustments $ 23.2 $ $ 5.1 Total other adjustments $ 35.7 $ $ 117.0 Acquisition-related costs Acquisition-related costs Transaction and integration costs (1) (1) Transaction and integration costs Acquisition-related amortization (2) Total acquistion-related costs $ 107.6 107.6 $ 110.9 110.9 $ 91.2 91.2 Acquisition-related amortization (2) Total acquistion-related costs $ 183.1 183.1 $ 215.8 215.8 $ 215.5 215.5 Segment Profit (Adjusted) $ % of sales (as adjusted) 333.6 $ 15.5% 372.0 $ 13.6% 469.5 17.5% Segment Profit (Adjusted) $ % of sales (as adjusted) 481.6 $ 13.0% 667.9 $ 12.9% 711.6 14.1% (1) Transaction and integration costs consist primarily of professional service expenses, salaries and other employee-related expenses dedicated directly to the integration effort, and severance expense. These costs are included in Selling, general and administrative and other expenses and Cost of goods sold. (2) Acquisition-related amortization expense consists primarily of the amortization of intangible assets related to the Valspar acquisition and is included in Amortization. 32#33Regulation G Reconciliation Adjusted EBITDA SHERWIN-WILLIAMS. ($ in millions) Net income from continuing operations Interest expense Income taxes 2014 2015 2016 2017 2018 2019 865.9 $ 1,053.8 $ 1,132.7 $ 1,769.5 $ 1,108.7 $ 1,541.3 64.2 61.8 154.1 263.5 366.7 349.3 392.3 495.2 462.5 (300.2) 251.0 440.5 Depreciation 169.1 170.3 172.1 285.0 278.2 262.1 Amortization 29.9 EBITDA from continuing operations $ 1,521.4 $ 28.2 1,809.3 $ 25.4 206.8 318.1 312.8 1,946.8 $ 2,224.6 $ 2,322.7 $ 2,906.0 Trademark impairment Brazil indirect tax credit California litigation expense 122.1 (50.8) 136.3 (34.7) Domestic pension plan settlement 37.6 32.4 Environmental expense provision 167.6 Transaction and integration costs (1) Inventory accounting change Adjusted EBITDA 60.6 139.0 157.7 81.8 58.9 1,521.4 $ 1,809.3 $ 2,007.4 $ 2,422.5 $ 2,821.9 $ 3,056.8 (1) Transaction and integration costs consist primarily of professional service expenses, salaries and other employee-related expenses dedicated directly to the integration effort, and severance expense. These costs are included in Selling, general and administrative and other expenses and Cost of goods sold. 33#34Regulation G Reconciliation Adjusted EPS Diluted net income per share Trademark impairment Brazil indirect tax credit California litigation expense Solar tax credit investment loss Pension plan settlement expense Environmental expense provision Year Ended December 31, 2014 Tax Year Ended December 31, 2015 Year Ended December 31, 2016 Tax Year Ended December 31, 2017 SHERWIN-WILLIAMS Year Ended December 31, 2018 Year Ended December 31, 2019 Tax Tax Tax Tax Pre-Tax After-Tax (1) Pre-Tax Effect Effect (1) After-Tax Pre-Tax After-Tax Pre-Tax After-Tax Effect (1) Effect (1) Pre-Tax After-Tax Effect (1) Pre-Tax Effect (1) After-Tax $ 8.77 $ 11.15 $ 11.99 $ 18.64 $ 11.67 $ 16.49 1.31 0.31 1.00 (0.54) (0.18) (0.36) 1.44 0.35 1.09 (0.37) (0.09) (0.28) (0.79) 0.79 0.40 0.10 0.30 0.35 0.08 0.27 1.75 0.43 1.32 One-time benefit from deferred tax benefits 7.04 (7.04) Total other adjustments $ $ $ $ $ $ $ $ $ $ $ 7.04 $ (7.04) $ 3.59 $ 0.88 $ 2.71 $ 0.75 $ (0.67) $ 1.42 Transaction and integration costs (2) 1.41 0.55 0.86 1.46 0.58 0.88 1.65 0.10 1.55 Acquisition-related amortization expense (3) 3.06 0.94 2.12 3.44 0.84 2.60 0.88 3.29 0.19 0.77 0.69 2.52 Inventory accounting change 0.62 0.15 0.47 Total acquisition-related costs $ $ $ $ $ $ $ 1.41 $ 0.55 $ 0.86 $ 5.15 $ 1.68 $ 3.47 $ 5.09 $ 0.94 $ 4.15 $ 4.17 $ 0.96 $ 3.21 Adjusted diluted net income per share $ 8.77 $ 11.15 $ 12.85 $15.07 $ 18.53 $ 21.12 (1) The tax effect is calculated based on the statutory rate and the nature of the item, unless otherwise noted. (2) Transaction and integration costs consist primarily of professional service expenses, salaries and other employee-related expenses dedicated directly to the integration effort, and severance expense. These costs are included in Selling, general and administrative and other expenses and Cost of goods sold. (3) Acquisition-related amortization expense consists primarily of the amortization of intangible assets related to the Valspar acquisition and is included in Amortization. 34