PPG Annual Report 2017

This focus, which begins with the performance of our business, was a key to our success in 2017. With the dedication of our 47,000 employees and the trust of our customers, we have continued to strengthen our position as a global leader in the paint and coatings industry. PPG in 2017 delivered adjusted earnings diluted per share growth; we continued to aggressively manage costs; and we completed the multi-year strategic transformation of our business portfolio by divesting our North American fiber glass business. Today, PPG is entirely focused on innovating paints, coatings and specialty materials to deliver growth and value in our business. We further strengthened our portfolio by completing four acquisitions during the year. We have also continued our legacy of returning cash to shareholders, Our Valued Shareholders, Thanks to our employees and customers, PPG delivered a solid performance in 2017. As I travel to PPG facilities around the world, I am always impressed by our people and their focus on strengthening our company, serving our customers’ needs, and bringing life to our purpose and promise: We protect and beautify the world. with more than $1.2 billion returned in 2017 through share repurchases and dividends. We take great pride in having paid annual dividends for 118 consecutive years, including a 13 percent per-share increase last July that marked 46 consecutive years of increased per share payouts. PPG maintained excellent financial flexibility with cash and short-term investments of about $1.5 billion at year-end. We have committed to deploy a minimum of $2.4 billion of cash in 2018 on acquisitions and share repurchases as part of our previously communicated target to deploy $3.5 billion in 2017 and 2018 combined. (continued next page) A Message from Our Chairman Michael H. McGarry Chairman and Chief Executive Officer FINANCIAL HIGHLIGHTS Net sales, up more than 3 percent versus 2016 Adjusted earnings per diluted share from continuing operations, representing an increase of nearly 4 percent year-over-year Reported net income from continuing operations, or $5.32 per diluted share Organic sales growth over 2016 $ 14.8B $ 5.87 * $ 1.4B 1.4 % * See footnote 2 at the bottom of page 3.