EX-99.2 3 d52189dex992.htm EX-99.2

8/10/2015 RPM INTERNATIONAL INC. 1 RPM INTERNATIONAL INC. 1 8/10/2015 Investor Relations Presentation October 7, 2015 Exhibit 99.2

8/10/2015 RPM INTERNATIONAL INC. 2 Forward-Looking Statements & Regulation G This presentation contains “Forward-Looking Statements” as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from expectations and are subject to certain risks and uncertainties such as those described in RPM’s periodic reports and statements filed with the Securities and Exchange Commission and available through the company’s website, www.rpminc.com. The company does not intend to update any forward- looking statements made in this presentation. This presentation includes certain company data that do not directly conform to generally accepted accounting principles, or GAAP, and certain company data that has been restated for improved clarity, understanding and comparability, or pro forma. All non-GAAP data in this presentation are indicated by footnote. Tables reconciling such data with GAAP measures are available through our website, www.rpminc.com under Investor Information/Presentations.

8/10/2015 RPM INTERNATIONAL INC. 3 Industrial Segment (67%) Consumer Segment (33%) $4.6 billion 5/31/15 Entrepreneurial Operating Philosophy Competitive Advantage of Leading Brands Balance Between Consumer and Industrial Businesses Growth Strategy Balanced Between Internal Investment and Acquisitions

8/10/2015 RPM INTERNATIONAL INC. 4 Industrial Segment (53%) Consumer Segment (32%) As of August 31, 2015 Entrepreneurial Operating Philosophy Competitive Advantage of Leading Brands Balance Between Consumer and Industrial Businesses Growth Strategy Balanced Between Internal Investment and Acquisitions Specialty Segment (15%)

Fiscal 2016 First-Quarter Results ($ in millions, except per share amounts) Three Months Ended Aug. 31, Consolidated 2015 2014 % Sales $1,242 $1,203 +3.2% EBIT $161 $164 (1.9)% Net Income $100 $99 +0.7% Diluted EPS $0.74 $0.73 +1.4% Three Months Ended Aug. 31, Consumer 2015 2014 % Sales $396 $430 (8.0)% EBIT $66 $77 (13.8)% Three Months Ended Aug. 31, Specialty 2015 2014 % Sales $184 $80 +130.7% EBIT $28 $17 +64.7% Three Months Ended Aug. 31, Industrial 2015 2014 % Sales $663 $694 (4.5)% EBIT $84 $88 (4.4)% 8/10/2015 RPM INTERNATIONAL INC. 5

8/10/2015 RPM INTERNATIONAL INC. 6 North America YTD +7% Europe YTD -6% Sales Growth by Region August YTD FY16 vs FY15 - Actual Total $1,242 million YTD +3% South/Latin America YTD -14% Africa/ Middle East YTD +3% Asia/Pacific YTD +15% 8/10/2015 RPM INTERNATIONAL INC. 6

North America YTD +9% Europe YTD +10% Sales Growth by Region August YTD FY16 vs FY15 - at FY15 FX Rates Total $1,326 million YTD +10% South/Latin America YTD +15% Africa/ Middle East YTD +14% Asia/Pacific YTD +36% RPM INTERNATIONAL INC. 8/10/2015 7

Capital Allocation: Fiscal 2006-2015 Acquisitions Dividends Capex Asbestos TOTAL $1,226,622 $1,054,367 $673,215 $575,096 $3,529,300 Dividends 30% Capex 19% Asbestos 16% Acquisitions 35% 8/10/2015 RPM INTERNATIONAL INC. 8

Fiscal 2016 & Beyond: Competing & Winning in the Market by Accelerating Growth Investments CapEx increase from $85 million to $120 million; large investments Replicate successful Brazilian strategy in Malaysia Increase consumer advertising to expand market share AlphaGuard U.S. bottling and UK expansion Tuf-Strand macro fibers Construction chemicals Brazilian platform for Euclid, Tremco, Flowcrete and Carboline Tremco Roofing Kirker Euclid Euclid Latin Am. Viapol 1 3 2 8/10/2015 RPM INTERNATIONAL INC. 9

Growth Strategy Acquisitions • International Expansion • Product Innovation 8/10/2015 RPM INTERNATIONAL INC. 10

Acquisition Strategy “The Best Home for Entrepreneurial Companies” Key requirements: Acquisition Focus: Key Takeaways: • Niche market leaders • Strong GP margins • Retain entrepreneurial management team • Geographic expansion • New markets • New products • 150+ acquisitions • Few divestitures • Less than 1% impairment charge in history of RPM 8/10/2015 RPM INTERNATIONAL INC. 11

International Expansion: 2005 vs. 2015 North America 2005 2015 $2,202 $3,195 86% 70% Asia/Pacific 2005 2015 $27 $121 1.0% 2.6% Europe 2005 2015 $251 $942 10% 20% South/Latin America 2005 2015 $42 $251 1.7% 5.5% TOTAL 2005 2015 $2,556 $4,595 Africa/Middle East 2005 2015 $34 $86 1.3% 1.9% Dollars in millions 8/10/2015 RPM INTERNATIONAL INC. 12

Connections Creating Value: Model for Success in Developing World • Acquire platform company • Great management team • Market leader • Potential for rapid expansion • Established base of shared: • Manufacturing • Distribution • Technology FY 15 FY 16 More to Come FY 13 FY 15 FY 14 FY 15 8/10/2015 RPM INTERNATIONAL INC. 13

Connections Creating Value: Leveraging Shared Technologies 8/10/2015 RPM INTERNATIONAL INC. 14

8/10/2015 RPM INTERNATIONAL INC. 15 New Product Innovations AlphaGuard RoofTec

8/10/2015 RPM INTERNATIONAL INC. 16 Consistent Financial Performance

Balanced Business = Steady Growth Consolidated 2011 2012 2013 2014 2015 Sales +8.5% +11.7% +8.1% +7.2% +5.0% Net Income +16.1% +11.5% +14.5% +20.9% +10.7% Note: Specialty Products Holding Corp. (SPHC) was deconsolidated on May 31, 2010 and reconsolidated on Jan. 1, 2015. Net income and EBIT exclude one-time adjustments taken in FY2012, FY2013 and FY2015. Consumer 2011 2012 2013 2014 2015 Sales +3.4% +10.7% +16.1% +11.4% (0.2)% EBIT (0.9%) +9.7% +31.2% +19.5% +9.1% Industrial 2011 2012 2013 2014 2015 Sales +11.3% +12.2% +4.1% +5.0% +8.0% EBIT +15.4% +17.5% (0.7%) +11.1% +5.6% 8/10/2015 RPM INTERNATIONAL INC. 17

8/10/2015 RPM INTERNATIONAL INC. 18 Consistent Financial Performance: 30-Year Growth Profile $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Sales $0 $50 $100 $150 $200 $250 $300 $350 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Net Income 10.6% 30-yr. CAGR 11.9% 30-yr. CAGR Note: Specialty Products Holding Corp. (SPHC) was deconsolidated on May 31, 2010 and reconsolidated on Jan. 1, 2015 Note: Net income excludes one-time adjustments taken in FY2013 and 2015, and asbestos charges taken from FY2003-FY2008

8/10/2015 RPM INTERNATIONAL INC. 19 41 Consecutive Years of Dividend Increases $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 $1.10 '73 '75 '77 '79 '81 '83 '85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09 '11 '13 Dividend per share Acquired Yield on Original Investment Today 2.4% 10 yrs. 5.8% 25 yrs. 13.6% $1.8 billion Paid + 8.3% 10/9/14 • Only 45 of all 19,000 U.S. publicly traded companies have an equal or better record • The compounding benefit of reinvesting a growing cash dividend first envisioned by a $25 mm company in 1973 continues today in a $4.6 bb company paying out +$135 mm per year

8/10/2015 RPM INTERNATIONAL INC. 20 Consistent Financial Performance: Superior Shareholder Return 5/05 5/06 5/07 5/08 5/09 5/10 5/11 5/12 5/13 5/14 5/15 RPM International, Inc. 100.00 109.55 138.24 154.37 101.69 137.38 169.51 197.28 255.99 341.02 405.16 S&P 500 100.00 108.64 133.40 124.47 83.93 101.54 127.90 127.37 162.11 195.25 218.31 Peer Group 100.00 113.38 145.66 130.48 88.57 118.63 156.37 162.32 243.22 288.93 346.07 Ten-year comparison based on $100 invested on 5/31/05 in stock or index — including reinvestment of dividends. Fiscal year ending May 31. (Peer Group includes Akzo Nobel N.V., Ferro Corporation, H.B. Fuller Company, Masco Corporation, PPG Industries, Inc., The Sherwin-Williams Company and The Valspar Corporation.) Comparison of Cumulative Total Return Among RPM International Inc., the S&P 500 Index and a Peer Group Outperform: S&P 500 by 86% Peers by 17%

8/10/2015 RPM INTERNATIONAL INC. 21 Good Value in a Great Company “Hire the best people you can find. Create an atmosphere that will keep them. Then let them do their jobs.” Frank C. Sullivan, 1947