SHW Investor Presentation - Sherwin-Williams
SHW Investor Presentation - Sherwin-Williams
SHW Investor Presentation - Sherwin-Williams
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Discussion Outline• Coatings Market Overview• <strong>Sherwin</strong>-<strong>Williams</strong> Overview– Paint Stores Group– Consumer Group– Latin America Coatings Group– Global l Finishes i Group• <strong>Sherwin</strong>-<strong>Williams</strong> Financial OverviewThe <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012
U.S. Coatings IndustrySales ($) Mix by CategoryArchitectural58%SpecialPurpose16%OEM ProductFinishes26%Total Coatings20111.04 Billion Gallons (+1%)18.66 Billion Dollars (+5.3%)Source: U.S. Department of Commerce; Segment Percents Based on DollarsThe <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012
Contractor Channel Share, U.S.Primary Outlet by Store TypePaintStores90.2% Hardware1.6%HomeCenters6.3%Discount /Other1.9%Source: S‐W Marketing: 2011The <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012
Company OverviewFinancial Highlights2011 2010 % Chg.Net Sales $8.77M $7.78M 12.7%EBITDA $965M $924M 4.4%Income $442M* $462M (4.3%)% Sales 5.0% 5.9%Earnings Per Share $4.14 14* $4.21 (1.7%)Net Operating Cash $736M** $707M 4.1%Dividend Per Share $1.46 $1.44Return on Assets 8.4% 8.9%Return on Equity 27.5% 31.0%* Includes IRS Settlement of $75M or Approximately $.70 per Diluted Common Share** Includes $70M Increase in Cash Taxes from IRS SettlementThe <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012
Company OverviewAdjusted Earnings & Net Operating Cash2011 2010 % Chg.Net Sales $8.77M $7.78M 12.7%EBITDA $965M $924M 4.4%Income $517M $462M 11.9%% Sales 5.9% 5.9%Earnings Per Share $4.84 $4.21 15.0%Net Operating Cash $806M $707M 14.0%Dividend Per Share $1.46 $1.44Return on Assets 8.4% 8.9%Return on Equity 27.5% 31.0%The <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012
Company Overview2012 Financial HighlightsYTD YTD9-30-12 9-30-11 % Chg.Net Sales $7.31B $6.70B 9.2%EBITDA $977M $781M 25.1%Income $563M $427M 31.8%% Sales 7.7% 6.4%Earnings Per Share $5.37 $3.98 34.9%The <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012
Company OverviewRevenue & Profit by Segment - 2011Paint StoresSales: $4.78 BillionProfit: $645.7 MillionProfit %: 13.5Sales: $1.88 BillionProfit: $90.3 MillionProfit %: 4.8GlobalSales: $.828 BillionProfit: $75.5 MillionProfit %: 9.1Sales: $1.27 BillionProfit: $173.7 7 MillionProfit %: 13.6ConsumerLatin AmericaControlled Distribution Accounts for 75% of SalesThe <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012
Paint Stores GroupTop 10 Paint Store Chains – North AmericaCountYE 2011 Est.1 Yr Change3,450 +60Akzo Nobel/ICI/Glidden 558 +4PPG 393 +2Comex/Pro Paint, Inc. 317 ‐21Kelly‐Moore 154 ‐9Dunn Edwards 109 1,831 +1 ‐26Cloverdale/Rodda 104 +2Diamond Vogel 67 ‐11Benjamin Moore 84 0Vista 45 ‐4Gap: +1,619 +86Source: Independent Research, Company Websites, Rauch Guide, Chain Store GuideThe <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012
Paint Stores GroupStore PenetrationThe <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012
Paint Stores GroupVoluntary TurnoverManager 4.2%Assistant Mgr. 89% 8.9%Sales Rep 4.0%The <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012
Consumer GroupEnd to End Supply Chain• 32 Manufacturing Sites• 7 Distribution Service Centers• 400 Tractors / 1,200 Trailers• More than 6,000 EmployeesThe <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012
Consumer GroupRaw Material BreakdownContainers (14%)Metal or PlasticSolvents (12%)Resins/Latex (36%)Acrylic (Latex Paints)Alkyd (Oil Paints)Epoxy (Epoxy Paints)Pigments (29%)Titanium DioxidePigmentsPaint FillersExtendersAdditives (9%)The <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012
Brand PowerLeading U.S. Brand Awareness#1 Architectural Paint Brand#1 Stain & Protective ti Finish i Brand#1 Aerosol Paint Brand#1 Auto Specialty Paint Brand#1 Painting Tool Brand#1 Wood Sealer BrandThe <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012
MexicoLatin America CoatingsEl SalvadorVenezuelaEcuadorPerúBrazilChileUruguayArgentinaS-W OperationsS-W LicenseesThe <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012
Latin America CoatingsArchitectural Protective & Marine Product FinishesS-W Stores Dealers Home Centers/MassThe <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012
Latin America CoatingsControlled Distribution & Dedicated Dealers255 Company-operated operatedstores throughout the RegionDedicated Dealersin Mexico & ArgentinaThe <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012
Global Finishes GroupAutomotiveAerospaceProtectiveMarineOEM FinishesThe <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012
Consolidated Gross Profit$ Millions4,0003,5003,0002,5002,0001,500$ Gross Profit% of Sales3,4133,5983,4993,0802,70144.242.8 43.744.9 43.83,26346.03,48144.83,74542.71,00050002004 2005 2006 2007 2008 2009 2010 2011The <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012
Consolidated Gross Profit$ Millions4,0003,5003,0002,5002,0001,5001,0005000$ Gross Profit% of SalesRaw Material Index3,7453,5983,4133,4993,4813,2633,0802,7011.844.246.044.9 42.8 43.743.844.842.71.61.41.21.02004 2005 2006 2007 2008 2009 2010 2011The <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012
Selling, General & Admin Expense3,0002,500$ SG&A% of Sales2,3262,0692,513 2,597 2,6442,5352,7282,961$ Millions2,0001,5001,00033.832.4 32.2 32.4 33.135.7 35.133.850002004 2005 2006 2007 2008 2009 2010 2011The <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012
Working Capital Ratio(Accounts Receivable + Inventory – Payables)/Sales20%13.8% 15% 12.5% 12.7%11.7% 11.5% 11.9% 10.7% 10.9%10%5%0%2004 2005 2006 2007 2008 2009 2010 2011The <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012
Uses of Cash2007-2011 ($ Millions)5-Year Net Operating Cash: $4,052.44Capital Expenditures$653.4Treasury StockPurchases$2,529.4$799.9Cash Dividendsid d$709.1AcquisitionsThe <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012
Stock Repurchase14.0013.20Millions of Shares12.0010.00800 8.00 660 6.606.004.008.105.607.259.005.00 4.702.000.002004 2005 2006 2007 2008 2009 2010 2011Avg. CommonShares Outstanding 144.7 141.1 137.3 130.9 119.3 115.4 108.2 103.4Avg. Price/Share $40.00 00 $44.14 $54.49 49 $65.39 $54.28 $58.93 $75.14 $78.16The <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012
Total Debt : EBITDA Ratio($ in Millions)1200100080060040096584% 88% 98% 113% 103%1148946834 818834924 9651045 99320002007 2008 2009 2010 2011Total DebtEBITDAThe <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012
1.42 1.441.46 1.56$1.60$1.40$1.20$1.00$0.80Dividends Per Share1979 – 20121.40.82.62 .68 .58 .60.54.45.48.40.32.35.25.281.26100 1.00$0.60$0.40.01 .04 .05 .06 .08 .10 .12 .13 .14 .16 .18 .19$0.20$0.0016 18 .19 .21 .229799809819829839849859869879889899909919929939949959969979989992000200120022003200420052006200720082009201020112012The <strong>Sherwin</strong>-<strong>Williams</strong> Company - 3 rd Quarter 2012111111111111111111111
Change language