Trian Partners Activist Presentation Deck
Paint Store ROICs Seem to Well Exceed Cost of Capital
North American Paint Store Return on Invested Capital (Estimated ROIC)
9%
PPG
WACC
10%
PPG Store ROIC
Conservative Case
24%
PPG Store ROIC
Base Case
31%
Sherwin-Williams Store
ROIC
With so little transparency on the paint store business, investors don't know what
PPG's returns on capital are. Trian estimates that "Base Case" after-tax returns are
likely about triple the company's cost of capital
Note: WACC = Weighted Average Cost of Capital
Source: SEC filings for PPG and peers, and Trian estimates based on industry diligence.
Key assumptions on PPG: Base Case -- $1.3mm AUV, 12% contribution margin, $500k build cost, Conservative Case -- $1.3mm AUV, 5% margin, $500k build cost
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