Sherwin Williams : Quarterly Reporting Document

4Q and Full Year 2021 Results

January 27, 2022

Forward-Looking Statements

This presentation may contain certain "forward-looking statements," as defined under U.S. federal securities laws. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "could," "plan," "goal," "target," "potential," "seek," "intend," "aspire" or "anticipate" or the negative thereof or comparable terminology. These forward-looking statements are based upon current expectations, predictions, estimates, assumptions and beliefs concerning future events and conditions. Readers are cautioned not to place undue reliance on any forward-looking statements. Forward- looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of the Company that could cause actual results to differ materially from such statements and from the Company's historical results, performance and experience. These risks, uncertainties and other factors include such things as: general business and economic conditions; the Company's ability to successfully integrate past and future acquisitions into its existing operations, as well as the performance of the businesses acquired; strengths of retail and manufacturing economies and the growth in the coatings industry; changes in the Company's relationships with customers and suppliers; changes in raw material availability and pricing; adverse weather conditions or impacts of climate change, natural disasters and public health crises, including the COVID-19 pandemic; the duration, severity and scope of the COVID-19 pandemic and the actions implemented by international, federal, state and local public health and governmental authorities to contain and combat the outbreak and spread of COVID-19, which may exacerbate one or more of the aforementioned and/or other risks, uncertainties and factors more fully described in the Company's reports filed with the Securities and Exchange Commission (SEC); and other risks, uncertainties and factors described from time to time in the Company's reports filed with the SEC. Since it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results, the above list should not be considered a complete list. Any forward- looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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2021 Full Year Financial Performance Highlights

($ in millions,	2021	2020	2019	% Change
except per share data)	'21 vs. '20	'21 vs. '19
Sales	$19,944.6	$18,361.7	$17,900.8	8.6%	11.4%
Gross Profit	$8,542.7	$8,682.6	$8,036.1	-1.6%	6.3%
Gross Margin	42.8%	47.3%	44.9%	-450 bps	-210 bps
Reported EPS	$6.98	$7.36	$5.50	-5.2%	26.9%
Adjusted EPS (1)	$8.15	$8.19	$7.04	-0.5%	15.8%
Net Operating Cash	$2,244.6	$3,408.6	$2,321.3	-34.1%	-3.3%

• Sales increased 8.6% driven by strength in professional architectural and industrial end markets
• Raw material availability issues negatively impacted sales by an estimated mid-single-digit percentage
• Significant decline in gross margin due to raw material cost inflation and industry-wide supply chain inefficiencies
• Significant pricing actions to mitigate industry-wide higher raw material costs
• SG&A as % of sales decreased - good cost control while continuing strategic growth investments
• Adjusted EPS(1) decreased 0.5% to $8.15/share vs. $8.19/share
• Generated net operating cash of $2.24 billion - announced three acquisitions and purchased 10.1 million shares at an average price of $273.18

Note: All comparisons are to the same period of the prior year, unless otherwise noted	2
(1) Reconciliation from reported EPS to adjusted EPS provided in Appendix

4Q 2021 Financial Performance Highlights

($ in millions,	4Q 2021	4Q 2020	4Q 2019	% Change
except per share data)	'21 vs. '20	'21 vs. '19
Sales	$4,762.1	$4,488.8	$4,114.4	6.1%	15.7%
Gross Profit	$1,879.7	$2,128.7	$1,894.0	-11.7%	-0.8%
Gross Margin	39.5%	47.4%	46.0%	-790 bps	-650 bps
Reported EPS	$1.15	$1.49	$0.89	-22.8%	29.2%
Adjusted EPS (1)	$1.34	$1.70	$1.42	-21.2%	-5.6%
Net Operating Cash	$193.9	$844.8	$659.9	-77.0%	-70.6%

• Sales increased 6.1% - raw material availability issues negatively impacted sales by an estimated high-single-digit percentage
• Continued underlying demand strength in professional architectural and industrial end markets
• Significant decline in gross margin due to lower sales volume, raw material cost inflation and industry-wide supply chain inefficiencies
• Continued implementation of pricing actions to mitigate higher industry-wide raw material costs
• SG&A as % of sales decreased - good cost control with continued strategic growth investments
• Adjusted EPS(1) decreased 21.2% to $1.34/share vs. $1.70/share

Note: All comparisons are to the fourth quarter of the prior year, unless otherwise noted	3
(1) Reconciliation from reported EPS to adjusted EPS provided in Appendix

The Americas Group

• Sales increased 3.0% including high-single-digit pricing; same store sales increased 1.0%
• Pro demand remains robust; projects delayed amid raw material availability and COVID related headwinds
• All pro customer segments delivered growth
• DIY sales decreased against difficult prior year comparisons and normalizing demand
• All regions grew led by Eastern division, followed by South Western, South Eastern, Canada and Mid Western divisions
• Announced 12% price increase effective February 1, 2022, to mitigate raw material inflation
• Segment profit decreased to $400.3 million, and segment margin decreased to 15.1%
• Full year sales growth of 8.0% with 20.0% segment margin

($ in millions)	4Q 2021	4Q 2020	4Q 2019	% Change
'21 vs. '20	'21 vs. '19
Sales	$2,653.5	$2,575.7	$2,362.8	3.0%	12.3%
Segment Profit	$400.3	$558.7	$449.4	-28.4%	-10.9%
Segment Margin	15.1%	21.7%	19.0%	-660 bps	-390 bps

+LSD	+MSD	+LSD	+MSD	-DD	+DD
Res Repaint	New	Commercial	Property	DIY	Protective &
Residential	Maintenance	Marine

4Q-21 sales vs. 4Q-20 sales (HSD/MSD/LSD = high, mid or low single digit %. DD = double digit %)

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Note: All comparisons are to the fourth quarter of the prior year, unless otherwise noted