PPG Annual Report and 10K 2019

22 2019 PPG ANNUAL REPORT AND 10-K As reported, earnings per diluted share from continuing operations for the year ended December 31, 2019 decreased year- over-year. Refer to the Regulation G Reconciliations - Results from Operations for additional information. The Company’s earnings per diluted share and adjusted earnings per diluted share benefited from the 2.7 million and 15.9 million shares of stock repurchased in 2019 and 2018, respectively, in conjunction with the Company’s cash deployment objectives. Regulation G Reconciliations - Results from Operations PPG believes investor’s understanding of the Company’s performance is enhanced by the disclosure of net income from continuing operations, earnings per diluted share from continuing operations and PPG’s effective tax rate from continuing operations adjusted for certain items. PPG’s management considers this information useful in providing insight into the Company’s ongoing performance because it excludes the impact of items that cannot reasonably be expected to recur on a quarterly basis or that are not attributable to our primary operations. Net income from continuing operations, earnings per diluted share from continuing operations and the effective tax rate from continuing operations adjusted for these items are not recognized financial measures determined in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and should not be considered a substitute for net income, earnings per diluted share, the effective tax rate or other financial measures as computed in accordance with U.S. GAAP. In addition, adjusted net income, adjusted earnings per diluted share from continuing operations and the adjusted effective tax rate from continuing operations may not be comparable to similarly titled measures as reported by other companies. Income before income taxes from continuing operations is reconciled to adjusted income before income taxes from continuing operations, the effective tax rate from continuing operations is reconciled to the adjusted effective tax rate from continuing operations and net income from continuing operations (attributable to PPG) and earnings per share – assuming dilution (attributable to PPG) are reconciled to adjusted net income from continuing operations (attributable to PPG) and adjusted earnings per share – assuming dilution below: ($ in millions, except percentages and per share amounts) Income Before Income Taxes Tax Expense Effective Tax Rate Net income from continuing operations (attributable to PPG) Earnings per diluted share (2) Year-ended December 31, 2019 As reported, continuing operations $1,661 $392 23.6% $1,243 $5.22 Includes: Net charges related to business restructuring-related costs (1) 222 54 24.4% 168 0.71 Net charges related to environmental remediation 61 14 23.0% 47 0.20 Charges related to acquisition-related costs (3) 17 4 23.5% 13 0.05 Net charges related to litigation matters 12 3 24.1% 9 0.04 Adjusted, continuing operations, excluding certain items $1,973 $467 23.7% $1,480 $6.22 ($ in millions, except percentages and per share amounts) Income Before Income Taxes Tax Expense Effective Tax Rate Net income from continuing operations (attributable to PPG) Earnings per diluted share (2) Year-ended December 31, 2018 As reported, continuing operations $1,693 $353 20.9% $1,323 $5.40 Includes: Net tax benefit related to U.S. Tax Cuts and Jobs Act — 13 N/A (13) (0.05) Charges related to customer assortment changes 18 4 24.3% 14 0.05 Charges related to environmental remediation and other costs 77 19 24.3% 58 0.24 Net charges related to business restructuring-related costs (1) 75 22 29.3% 53 0.21 Charges related to litigation matters 24 5 24.3% 19 0.08 Charges related to acquisition-related costs (3) 6 2 25.5% 4 0.02 Charge related to brand rationalization 6 2 26.8% 4 0.02 Gain from the sale of a non-operating asset (26) (6) 24.3% (20) (0.08) Charge related to impairment of a non-manufacturing asset 9 2 24.3% 7 0.03 Adjusted, continuing operations, excluding certain items $1,882 $416 22.1% $1,449 $5.92 (1) Included in net charges related to business restructuring-related costs, are business restructuring charges, accelerated depreciation of certain assets and other related costs, offset by releases related to previously approved programs. (2) Earnings per diluted share is calculated based on unrounded numbers. Figures in the table may not recalculate due to rounding. (3) Acquisition-related costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred to effect acquisitions. These costs are included in Selling, general and administrative expense in the consolidated statement of income. Acquisition-related costs also include the impact for the step up to fair value of inventory acquired in certain acquisitions which are included in Cost of sales, exclusive of depreciation and amortization in the consolidated statement of income.

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