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PPG Industries, Inc.



    Second Quarter Financial Results

                   William H. Hernandez
             Sr. Vice President, Finance,
             and Chief Financial Officer

Information current as of
     July 17, 2008
                                            1
Forward-Looking Statement
Statements contained herein relating to matters that are not historical facts are forward-looking statements
reflecting PPGโ€™s current view with respect to future events and financial performance. These matters
involve risks and uncertainties that may affect PPGโ€™s operations, as discussed in PPGโ€™s filings with the
Securities and Exchange Commission pursuant to Sections 13(a), 13(c) or 15(d) of the Securities
Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. Accordingly,
many factors may cause actual results to differ materially from the forward-looking statements contained
herein. Such factors include increasing price and product competition by foreign and domestic competitors,
fluctuations in cost and availability of raw materials and energy, the ability to maintain favorable supplier
relationships and arrangements, economic and political conditions in international markets, foreign
exchange rates and fluctuations in such rates, integration of acquisitions and achievement of expected
synergies therefrom, the impact of environmental regulations, unexpected business disruptions, and the
unpredictability of existing and possible future litigation, including litigation that could result if the asbestos
settlement discussed in PPGโ€™s filings with the Securities and Exchange Commission does not become
effective. However, it is not possible to predict or identify all such factors. Consequently, while the list of
factors presented here is considered representative, no such list should be considered to be a complete
statement of all potential risks and uncertainties. Unlisted factors may present significant additional
obstacles to the realization of forward-looking statements. Consequences of material differences in results
compared with those anticipated in the forward-looking statements could include, among other things,
business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any
of which could have a material adverse effect on PPGโ€™s consolidated financial condition, operations or
liquidity. All information in this presentation speaks only as of July 17, 2008, and any distribution of this
presentation after that date is not intended and will not be construed as updating or confirming such
information.



                                                                                                                      2
Highlights โ€“ Q2, 2008
 Strong financial performance
   Double-digit-percent growth in sales and segment earnings
   Adjusted earnings per share up 12 percent
   One of the largest selling price increases in years
   Year-to-date cash generation >$125 million ahead of prior year


 Past strategic actions paying dividends
   Portfolio shift minimizing impacts of weak regional end-markets
   Enhanced global presence aiding results
   SigmaKalon acquisition ahead of targets


 Automotive Glass and Services business sale
   Deal reached, closing pending
                                                                     3
Business Segment Results
Second Quarter
$MM (USD)

                                          Sales                 Segment Earnings
                                2008         2007     Chg.    2008    2007    Chg.
Performance Coatings          $   1,269    $    974    30%   $ 171   $ 159      8%
Industrial Coatings               1,152         943    22%     109     109      0%
Architectural Coatings EMEA         667           -      -       71       -      -
Optical & Specialty Mtls.           310         278    12%       76     71      7%
Commodity Chemicals                 495         380    30%       68     57     19%
Sub-Total                     $   3,893    $ 2,575     51%   $ 495   $ 396     25%
Glass
 Fiber Glass & P/Glazings     $     328   $   302      9%    $  20   $  28   -29%
 Auto Glass & Services              253       278     -9%       10      22   -55%
Grand-Total                   $   4,474   $ 3,155     42%    $ 525   $ 446    18%




  Double-digit-percent growth in sales and segment earnings

                                                                                 4
Adjusted Financial Results


 Adjusted Q2 Results **                                   2008           2007        Change

 Sales                                                         4,221      2,877             47%

 Segment income                                                  515        424             21%

 Net income                                                      269        242             11%


 Earnings per share, assuming                                    1.62      1.45             12%
 dilution



** Excludes operating results of Automotive Glass and Services business and unusual/one-time charges.

 Please refer to the presentation appendix for reconciliation details.
                                                                                                        5
Sales โ€“ United States & Canada
                                                         Growth continues
                   Q2 PPG Sales โ€“ U.S. & Canada
           2,250
                                                         Solid price gains;
                                                         flat volumes despite
                                          5%
                                                         challenged end-markets

                                                         Significant declines in
           2,000
                                                         U.S. Auto OEM & U.S.
MM - USD




                                                         Residential Construction

                                                         Strong volume gains
                                                         in Optical, Commodity
           1,750

                                                         Chemicals

                                                         Q3 pricing actions
                                                         underway
           1,500
                       2006        2007           2008

                                                                                  6
Organic Growth โ€“ Europe
                                                              Solid organic growth on
10.0%
                                                              top of difficult โ€œcompsโ€
                                                              the past two years
8.0%

                                                              Overall European sales
                                                              up $1B (140%) versus
6.0%
                                                              last year โ€“ SigmaKalon
                                                              acquisition
4.0%

                                                              Stable organic growth
2.0%
                                                              from SigmaKalon

0.0%
                                                              Q3 pricing actions
                                                              underway
-2.0%
        1Q   2Q   3Q   4Q       1Q   2Q   3Q   4Q   1Q   2Q

              2006                   2007           2008
                            Volume        Price
                                                                                         7
Organic Growth โ€“ Asia
                                                              Double-digit-percent
23.0%
                                                              (15%) organic growth

                                                              Achieved half-billion-
18.0%
                                                              dollar mark in quarterly
                                                              sales
13.0%
                                                              Region has one of
                                                              PPGโ€™s best operating
8.0%
                                                              margins

                                                              Broad growth across all
3.0%
                                                              Coatings businesses

-2.0%
                                                              Strong outlook
        1Q   2Q   3Q   4Q       1Q   2Q   3Q   4Q   1Q   2Q
                                                              continues
              2006                   2007           2008
                            Volume        Price
                                                                                         8
Macro Topics
                                    Coatings Raw Materials Inflation
          Natural Gas
                                   Percentage โ€“ 2008 (year over year)
  Q2, 2008 -   $10.50/MMBTU
                                                   Q1 Expected Range & Actual
  Q1, 2008 -   $8.50               2%         4%
  Q2, 2007 -   $7.75                                Q2 Expected Range & Actual
                                   2%         4%
  Q3, 2008 -   1/3 of needs
                                              4%          6%
               hedged @ $8.50                Q3 Expected Range

Incremental Transportation Costs        PPG Coatings Sales - 2008
                                                   Western
                                                   Europe
                                    Latin
                                                    37%
                                   America
                                     5%
                                                          U.S. &
                                                          Canada
                                   Eastern
                                                           30%
                                                   Asia
                                   Europe
                                                   15%
                                    13%
$MM
                                                                            9
Performance Coatings
  Second Quarter 2008                      $MM (USD)   Q208    Q207   Chg     %

   Very difficult U.S. Architectural       Sales       1,269    974    295   30%
   market continues                        Earnings      171    159     12    8%
   Offset with Aerospace, Asia and
   Protective & Marine volumes โ†‘
   Double-digit organic growth in
   acquired SigmaKalon business

                                       Yr. To Yr. % Change - Sales
                                  Sales Volume Price Currency Acq./Other
Total Performance Coatings         30%       -2%     2%        6%   24%

Architectural (Americas & Asia)     9%    -11%
                   Aerospace       11%      6%
         Automotive Refinish       17%      2%
         Protective & Marine      192%      6%     (Volume growth excludes SigmaKalon
                                                    acquired business)



                                                                                   10
Industrial Coatings
  Second Quarter 2008                    $MM (USD)   Q208    Q207   Chg   %

   Diverse, expanding global footprint   Sales       1,152    943   209   22%
   offsetting U.S. weakness
                                         Earnings     109     109     0   0%
   Auto OEM volumes โ†‘
   SigmaKalon nicely accretive



                                  Yr. To Yr. % Change - Sales
                             Sales Volume Price Currency Acq./Other
Total Industrial Coatings     22%        2%     0%        8%   12%

       Automotive OEM         11%        3%
             Industrial       44%        0%
            Packaging         15%        2%




                                                                                11
Architectural Coatings EMEA
Second Quarter 2008                    $MM (USD)   Q208   Q207    Chg    %

 Low- to mid-single-digit organic      Sales        667     n/a    n/a   n/a
 growth versus 2007
                                       Earnings      71     n/a    n/a   n/a
 Earnings include ~$20MM of
 non-cash intangible amortization
 and ~$20MM of depreciation




Overall SigmaKalon Acquisition Update
 Ahead of PPG mid-year financial expectations
 Solid, stable growth
 On pace for annual cost synergy targets
 Core element of PPG financial results and growth potential



                                                                               12
Optical & Specialty Materials
  Second Quarter 2008                $MM (USD)    Q208      Q207   Chg   %

   Strong Optical volume growth      Sales            310    278    32   12%
   25% segment operating margins     Earnings         76      71     5   7%
   European launch of new
   Transitions product accelerated
   from 2009 to Q4, 2008


                               Yr. To Yr. % Change - Sales
                          Sales Volume Price Currency Acq./Other

Total Optical &
Specialty Materials        12%       5%          1%           6%             0%




                                                                               13
Commodity Chemicals
  Second Quarter 2008                  $MM (USD)   Q208    Q207   Chg   %

   ~20% earnings improvement           Sales         495    380   115   30%
   Increased selling prices in Q2,     Earnings      68      57    11   19%
   2008 and announced for Q3, 2008
   Low inventory position



                             Yr. To Yr. % Change - Sales
                        Sales Volume Price Currency Acq./Other
Total Commodity
Chemicals                30%         15%       14%          1%           0%




                                                                              14
Glass
  Second Quarter 2008                      $MM (USD)   Q208   Q207   Chg   %

   Higher input costs                      Sales        581    580     1       0
   Difficult external market               Earnings      30     50   -20   -40%
   conditions likely to remain




                                       Yr. To Yr. % Change - Sales
                            Sales      Volume Price Currency Acq./Other
     Total Glass              0%           -3%      0%        3%    0%

   Performance Glazings           9%       6%
             Fiber Glass          5%      -3%
Automotive Glass & Svcs.         -7%      -7%




                                                                                   15
Cash Generation and Cash Uses
Cash From Operations:
 Solid Q2 and YTD performance
 YTD cash from operations >$350MM
 2008 YTD results ~60% higher than 2007

YTD Cash Uses:
 Continued to fund businesses, reward shareholders
 Debt repayment proceeding


                                                     16
For More Information


Thank you for your interest in PPG Industries, Inc.

                  Investors
         Vince Morales (412) 434-3740

                    Media
           Jack Maurer (412) 434-2181




                                                      17
Appendix




PPG Second Quarter Financial Results
    Regulation G Reconciliation




                                   18
Adjusted Q2, 2008 Results
Regulation G       Total PPG             Plus:                 Less:      Adjusted
                  (as Reported)
Reconciliation                          One-Time         โ€“   Automotive =   PPG
                                  +
- Results from                          Charges              Glass and     Total
Operations                              (including            Services
                                        asbestos)             Operating
                                                              Results*
Sales                 $   4,474            $         -        $    253       $   4,221
Segment
Income                      525                      -              10            515

Net Income                  250                  25 A                 6           269
Earnings per
common share
โ€“ assuming
dilution                   1.51                0.15 A              0.04           1.62


All amounts are reported in millions of dollars, except per-share amounts.
See notes.
                                                                                     19
Adjusted Q2, 2007 Results
Regulation G       Total PPG             Plus:                 Less:      Adjusted
                  (as Reported)
Reconciliation                          One-Time         โ€“   Automotive =   PPG
                                  +
- Results from                          Charges              Glass and     Total
Operations                              (including            Services
                                        asbestos)             Operating
                                                              Results*
Sales                 $   3,155            $         -        $    278       $   2,877
Segment
Income                      446                      -              22            424

Net Income                  249                      6B             13            242
Earnings per
common share
โ€“ assuming
dilution                   1.50                0.03 B              0.08           1.45


All amounts are reported in millions of dollars, except per-share amounts.
See notes.
                                                                                     20
Notes

* For purposes of comparing the current and historical operating results of the automotive glass and
services (AG&S) business, the tables reflect adjustment for the entire AG&S business. However, as
noted above, upon closing of the AG&S divestiture transaction, PPG will retain a minority ownership of
approximately 40 percent of this business, and this interest will be presented in PPGโ€™s future financial
statements in accordance with GAAP.

A โ€“ Income from continuing operations, net of tax, and Earnings per common share โ€“ assuming
dilution include one-time aftertax charges related to the pending sale of PPG's AG&S business of $11
million, or 7 cents per share, to reflect a catch-up of depreciation expense, which was suspended
when the business was classified previously as a discontinued operation, and $12 million, or 7 cents
per share, relating to the impact of benefit changes including accelerated vesting negotiated as part of
the sale. In addition, the company recorded an aftertax charge of $2 million, or 1 cent per share, to
reflect the net increase to current value of the company's obligation under its proposed asbestos
settlement agreement reported in May 2002, which is subject to pending court proceedings.

B โ€“ Income from continuing operations, net of tax, and Earnings per common share โ€“ assuming
dilution include an aftertax charge of $6 million, or 3 cents per share, to reflect the net increase in the
value of the company's obligation under its proposed asbestos settlement agreement.




                                                                                                              21

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2Q 2008 EARNINGS SLIDESFINAL

  • 1. PPG Industries, Inc. Second Quarter Financial Results William H. Hernandez Sr. Vice President, Finance, and Chief Financial Officer Information current as of July 17, 2008 1
  • 2. Forward-Looking Statement Statements contained herein relating to matters that are not historical facts are forward-looking statements reflecting PPGโ€™s current view with respect to future events and financial performance. These matters involve risks and uncertainties that may affect PPGโ€™s operations, as discussed in PPGโ€™s filings with the Securities and Exchange Commission pursuant to Sections 13(a), 13(c) or 15(d) of the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. Accordingly, many factors may cause actual results to differ materially from the forward-looking statements contained herein. Such factors include increasing price and product competition by foreign and domestic competitors, fluctuations in cost and availability of raw materials and energy, the ability to maintain favorable supplier relationships and arrangements, economic and political conditions in international markets, foreign exchange rates and fluctuations in such rates, integration of acquisitions and achievement of expected synergies therefrom, the impact of environmental regulations, unexpected business disruptions, and the unpredictability of existing and possible future litigation, including litigation that could result if the asbestos settlement discussed in PPGโ€™s filings with the Securities and Exchange Commission does not become effective. However, it is not possible to predict or identify all such factors. Consequently, while the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on PPGโ€™s consolidated financial condition, operations or liquidity. All information in this presentation speaks only as of July 17, 2008, and any distribution of this presentation after that date is not intended and will not be construed as updating or confirming such information. 2
  • 3. Highlights โ€“ Q2, 2008 Strong financial performance Double-digit-percent growth in sales and segment earnings Adjusted earnings per share up 12 percent One of the largest selling price increases in years Year-to-date cash generation >$125 million ahead of prior year Past strategic actions paying dividends Portfolio shift minimizing impacts of weak regional end-markets Enhanced global presence aiding results SigmaKalon acquisition ahead of targets Automotive Glass and Services business sale Deal reached, closing pending 3
  • 4. Business Segment Results Second Quarter $MM (USD) Sales Segment Earnings 2008 2007 Chg. 2008 2007 Chg. Performance Coatings $ 1,269 $ 974 30% $ 171 $ 159 8% Industrial Coatings 1,152 943 22% 109 109 0% Architectural Coatings EMEA 667 - - 71 - - Optical & Specialty Mtls. 310 278 12% 76 71 7% Commodity Chemicals 495 380 30% 68 57 19% Sub-Total $ 3,893 $ 2,575 51% $ 495 $ 396 25% Glass Fiber Glass & P/Glazings $ 328 $ 302 9% $ 20 $ 28 -29% Auto Glass & Services 253 278 -9% 10 22 -55% Grand-Total $ 4,474 $ 3,155 42% $ 525 $ 446 18% Double-digit-percent growth in sales and segment earnings 4
  • 5. Adjusted Financial Results Adjusted Q2 Results ** 2008 2007 Change Sales 4,221 2,877 47% Segment income 515 424 21% Net income 269 242 11% Earnings per share, assuming 1.62 1.45 12% dilution ** Excludes operating results of Automotive Glass and Services business and unusual/one-time charges. Please refer to the presentation appendix for reconciliation details. 5
  • 6. Sales โ€“ United States & Canada Growth continues Q2 PPG Sales โ€“ U.S. & Canada 2,250 Solid price gains; flat volumes despite 5% challenged end-markets Significant declines in 2,000 U.S. Auto OEM & U.S. MM - USD Residential Construction Strong volume gains in Optical, Commodity 1,750 Chemicals Q3 pricing actions underway 1,500 2006 2007 2008 6
  • 7. Organic Growth โ€“ Europe Solid organic growth on 10.0% top of difficult โ€œcompsโ€ the past two years 8.0% Overall European sales up $1B (140%) versus 6.0% last year โ€“ SigmaKalon acquisition 4.0% Stable organic growth 2.0% from SigmaKalon 0.0% Q3 pricing actions underway -2.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2006 2007 2008 Volume Price 7
  • 8. Organic Growth โ€“ Asia Double-digit-percent 23.0% (15%) organic growth Achieved half-billion- 18.0% dollar mark in quarterly sales 13.0% Region has one of PPGโ€™s best operating 8.0% margins Broad growth across all 3.0% Coatings businesses -2.0% Strong outlook 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q continues 2006 2007 2008 Volume Price 8
  • 9. Macro Topics Coatings Raw Materials Inflation Natural Gas Percentage โ€“ 2008 (year over year) Q2, 2008 - $10.50/MMBTU Q1 Expected Range & Actual Q1, 2008 - $8.50 2% 4% Q2, 2007 - $7.75 Q2 Expected Range & Actual 2% 4% Q3, 2008 - 1/3 of needs 4% 6% hedged @ $8.50 Q3 Expected Range Incremental Transportation Costs PPG Coatings Sales - 2008 Western Europe Latin 37% America 5% U.S. & Canada Eastern 30% Asia Europe 15% 13% $MM 9
  • 10. Performance Coatings Second Quarter 2008 $MM (USD) Q208 Q207 Chg % Very difficult U.S. Architectural Sales 1,269 974 295 30% market continues Earnings 171 159 12 8% Offset with Aerospace, Asia and Protective & Marine volumes โ†‘ Double-digit organic growth in acquired SigmaKalon business Yr. To Yr. % Change - Sales Sales Volume Price Currency Acq./Other Total Performance Coatings 30% -2% 2% 6% 24% Architectural (Americas & Asia) 9% -11% Aerospace 11% 6% Automotive Refinish 17% 2% Protective & Marine 192% 6% (Volume growth excludes SigmaKalon acquired business) 10
  • 11. Industrial Coatings Second Quarter 2008 $MM (USD) Q208 Q207 Chg % Diverse, expanding global footprint Sales 1,152 943 209 22% offsetting U.S. weakness Earnings 109 109 0 0% Auto OEM volumes โ†‘ SigmaKalon nicely accretive Yr. To Yr. % Change - Sales Sales Volume Price Currency Acq./Other Total Industrial Coatings 22% 2% 0% 8% 12% Automotive OEM 11% 3% Industrial 44% 0% Packaging 15% 2% 11
  • 12. Architectural Coatings EMEA Second Quarter 2008 $MM (USD) Q208 Q207 Chg % Low- to mid-single-digit organic Sales 667 n/a n/a n/a growth versus 2007 Earnings 71 n/a n/a n/a Earnings include ~$20MM of non-cash intangible amortization and ~$20MM of depreciation Overall SigmaKalon Acquisition Update Ahead of PPG mid-year financial expectations Solid, stable growth On pace for annual cost synergy targets Core element of PPG financial results and growth potential 12
  • 13. Optical & Specialty Materials Second Quarter 2008 $MM (USD) Q208 Q207 Chg % Strong Optical volume growth Sales 310 278 32 12% 25% segment operating margins Earnings 76 71 5 7% European launch of new Transitions product accelerated from 2009 to Q4, 2008 Yr. To Yr. % Change - Sales Sales Volume Price Currency Acq./Other Total Optical & Specialty Materials 12% 5% 1% 6% 0% 13
  • 14. Commodity Chemicals Second Quarter 2008 $MM (USD) Q208 Q207 Chg % ~20% earnings improvement Sales 495 380 115 30% Increased selling prices in Q2, Earnings 68 57 11 19% 2008 and announced for Q3, 2008 Low inventory position Yr. To Yr. % Change - Sales Sales Volume Price Currency Acq./Other Total Commodity Chemicals 30% 15% 14% 1% 0% 14
  • 15. Glass Second Quarter 2008 $MM (USD) Q208 Q207 Chg % Higher input costs Sales 581 580 1 0 Difficult external market Earnings 30 50 -20 -40% conditions likely to remain Yr. To Yr. % Change - Sales Sales Volume Price Currency Acq./Other Total Glass 0% -3% 0% 3% 0% Performance Glazings 9% 6% Fiber Glass 5% -3% Automotive Glass & Svcs. -7% -7% 15
  • 16. Cash Generation and Cash Uses Cash From Operations: Solid Q2 and YTD performance YTD cash from operations >$350MM 2008 YTD results ~60% higher than 2007 YTD Cash Uses: Continued to fund businesses, reward shareholders Debt repayment proceeding 16
  • 17. For More Information Thank you for your interest in PPG Industries, Inc. Investors Vince Morales (412) 434-3740 Media Jack Maurer (412) 434-2181 17
  • 18. Appendix PPG Second Quarter Financial Results Regulation G Reconciliation 18
  • 19. Adjusted Q2, 2008 Results Regulation G Total PPG Plus: Less: Adjusted (as Reported) Reconciliation One-Time โ€“ Automotive = PPG + - Results from Charges Glass and Total Operations (including Services asbestos) Operating Results* Sales $ 4,474 $ - $ 253 $ 4,221 Segment Income 525 - 10 515 Net Income 250 25 A 6 269 Earnings per common share โ€“ assuming dilution 1.51 0.15 A 0.04 1.62 All amounts are reported in millions of dollars, except per-share amounts. See notes. 19
  • 20. Adjusted Q2, 2007 Results Regulation G Total PPG Plus: Less: Adjusted (as Reported) Reconciliation One-Time โ€“ Automotive = PPG + - Results from Charges Glass and Total Operations (including Services asbestos) Operating Results* Sales $ 3,155 $ - $ 278 $ 2,877 Segment Income 446 - 22 424 Net Income 249 6B 13 242 Earnings per common share โ€“ assuming dilution 1.50 0.03 B 0.08 1.45 All amounts are reported in millions of dollars, except per-share amounts. See notes. 20
  • 21. Notes * For purposes of comparing the current and historical operating results of the automotive glass and services (AG&S) business, the tables reflect adjustment for the entire AG&S business. However, as noted above, upon closing of the AG&S divestiture transaction, PPG will retain a minority ownership of approximately 40 percent of this business, and this interest will be presented in PPGโ€™s future financial statements in accordance with GAAP. A โ€“ Income from continuing operations, net of tax, and Earnings per common share โ€“ assuming dilution include one-time aftertax charges related to the pending sale of PPG's AG&S business of $11 million, or 7 cents per share, to reflect a catch-up of depreciation expense, which was suspended when the business was classified previously as a discontinued operation, and $12 million, or 7 cents per share, relating to the impact of benefit changes including accelerated vesting negotiated as part of the sale. In addition, the company recorded an aftertax charge of $2 million, or 1 cent per share, to reflect the net increase to current value of the company's obligation under its proposed asbestos settlement agreement reported in May 2002, which is subject to pending court proceedings. B โ€“ Income from continuing operations, net of tax, and Earnings per common share โ€“ assuming dilution include an aftertax charge of $6 million, or 3 cents per share, to reflect the net increase in the value of the company's obligation under its proposed asbestos settlement agreement. 21