Trian Partners Activist Presentation Deck slide image

Trian Partners Activist Presentation Deck

Trian's Recommendations to Unlock Value* Strengthen management by immediately bringing back Chuck Bunch as Chairman/CEO PPG's TSR and growth, both organic sales and EPS, have underperformed under current management Investors, analysts, and employees appear to have lost confidence in PPG's leadership team after losing key customers and poor oversight of accounting irregularities/financial restatements ■ ■ Once the management change has been completed, we would ask Chuck Bunch to consider the following initiatives: Improve capital structure efficiency; take advantage of attractive financing markets PPG is the least leveraged multi-national coatings company that is domiciled in the US Two closest peers are ~4x levered vs. PPG's ~1.7x(¹) H ■ Commence a strategic review of the portfolio (consider a separation) Consider separating into two more focused companies: a Global Architectural Coatings company and a Global OEM/Industrial company - Under Bunch's watch, PPG's TSR outperformed peers handily through consistent EPS growth and aggressive portfolio actions ■ ■ The North American architectural coatings business needs strategic attention, as it is losing market share and missing growth opportunities A more focused architectural coatings company will no longer have to compete for capital with OEM customer facing businesses - No industrial logic to the current portfolio structure of one global "coatings" company which is comprised of at least 12 underlying businesses with disparate distribution channels, supply chains and market dynamics Despite its scale as the second largest global coatings company, PPG is valued like a commoditized, sub-scale materials company Improve the ESG Profile A separation may allow opportunity for shareholders to benefit from prudent consolidation as there are logical strategic partners for each respective business Eliminate staggered Board Bring corporate governance in line with other S&P 500 companies and ensure compensation is aligned with performance * Neither Trian Partners nor any of its affiliates has any intention, either alone, or as part of a group, to directly or indirectly seek to acquire "control" of PPG or to otherwise put PPG "in play" through any means. For purposes of the foregoing sentence, "control" shall mean the power, whether or not exercised, to direct or cause the direction of the management and policies of an entity through the ownership of voting shares, by contract or otherwise. (1) Source: SEC filings and annual reports. - 16-
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