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
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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)
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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
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Under Bunch's watch, PPG's TSR outperformed peers handily through consistent EPS growth and aggressive portfolio
actions
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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
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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.
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