Sherwin Williams : Quarterly Reporting Document

2Q 2022 Results

July 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 natural disasters, including due to the impacts of climate change; and public health crises, including 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 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.

1

2Q 2022 Financial Performance Highlights

($ in millions,	2Q 2022	2Q 2021	% Change
except per share data)
Sales	$5,872.3	$5,379.8	9.2%
Gross Profit	$2,449.0	$2,411.4	1.6%
Gross Margin	41.7%	44.8%	-310 bps
Reported EPS	$2.21	$2.42	-8.7%
Adjusted EPS (1)	$2.41	$2.65	-9.1%

• Sales increased 9.2%, slightly below low end of guidance
• • Continued demand strength in professional architectural and North American industrial end markets
  • Low double-digit pricing partially offset by weak DIY volumes and slight FX headwinds
  • Significant softening of European demand and slower than expected demand recovery in China post COVID lockdowns
• Slower than anticipated improvement in raw material costs and higher labor and transportation costs
• • Further implementation of pricing actions to mitigate higher costs
• Gross margin impacted by lower sales volume, supply chain inefficiencies and broad cost inflation, which continued to outpace price increases near term
• • Consolidated gross margin improved sequentially from 1Q 2022
• SG&A as % of sales down 80 basis points - good cost control while continuing strategic long-term investments
• Adjusted EPS(1) decreased 9.1% year-over-year to $2.41/share vs. $2.65/share, inclusive of a $0.13 per share unfavorable impact in the Administrative segment

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

The Americas Group

• Sales increased 8.1% including low-double-digit pricing; same store sales increased 6.4%
• Growth in all pro customer segments, led by Property Maintenance and New Residential
• Residential Repaint up high-single digits versus a very strong double-digit comparison
• Pro customers reporting strong backlogs into back half of year
• Announced 10% price increase effective September 6, 2022
• Segment profit decreased to $700.4 million, and segment margin decreased to 21.0% - declines driven by lower DIY and Protective & Marine sales volumes and higher raw material costs
• Segment margin improved 420 basis points sequentially

($ in millions)	2Q 2022	2Q 2021	% Change
Sales	$3,343.1	$3,093.4	8.1%
Segment Profit	$700.4	$727.3	-3.7%
Segment Margin	21.0%	23.5%	-250 bps

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

2Q-22 sales vs. 2Q-21 sales (HSD/MSD/LSD = high, mid or low single digit %. DD = double digit %)

3

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

Consumer Brands Group

• Sales increased 0.9% - high-single-digit price realization nearly fully offset by weak DIY sales volume, tight supply of alkyd resins significantly impacting non-paint categories (aerosols and stains) in June, soft international sales and slight FX headwinds
• China down by a very high double-digit percentage due to COVID lockdowns; Europe also down high double-digits due to the slowing macroeconomic environment
• Strong growth in Pros Who Paint category
• Adjusted segment profit decreased to $82.6 million and adjusted segment margin decreased to 11.2% - declines driven by lower sales volume, supply chain inefficiencies and higher raw material costs
• Incremental price increases to mitigate raw material and other cost inflation

($ in millions)	2Q 2022	2Q 2021	% Change
Sales	$737.9	$731.5	0.9%
Reported Segment Profit	$63.5	$122.8	-48.3%
Reported Segment Margin	8.6%	16.8%	-820 bps
Adjusted Segment Profit (1)	$82.6	$144.1	-42.7%
Adjusted Segment Margin	11.2%	19.7%	-850 bps

+HSD	-DD	-DD

NORTH AMERICA	EMEAI	ASIA

2Q-22 sales vs. 2Q-21 sales (HSD/MSD/LSD = high, mid or low single digit %. DD = double digit %)

Note: All comparisons are to the second quarter of the prior year, unless otherwise noted	4
(1) Reconciliation from segment profit to adjusted segment profit provided in Appendix