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SHW Current IR Deck_4.1.08

May 30, 2015

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  • 1. Sean P. Hennessy Robert J. Wells Senior Vice President, Vice President,Finance & CFO Corporate Communications & Public Affairs

2. Forward-Looking Statements This presentation today will contain certain forward-looking statements, as defined under U.S. federal securities laws, with respect to sales, earnings and other matters. These forward-looking statements are based upon managements current expectations, estimates, assumptions and beliefs concerning future events and conditions. 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 Companys historical results and experience. These risks, uncertainties and other factors include such things as: general business conditions, strengths of retail and manufacturing economies and the growth in the coatings industry; changes in the Companys relationships with customers and suppliers; changes in raw material availability and pricing; unusual weather conditions; and other risks, uncertainties and other factors described from time to time in the Companys reports filed with the Securities and Exchange Commission. 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.The Sherwin-Williams Company Full Year 2007 3. Coatings IndustryGlobal Demand Africa/2006 Est.Mideast North America 7.3 Billion Gallons4% 28%Western88 Billion DollarsEurope 26% Latin America4% Eastern EuropeOther Asia/China 7%Japan Pacific 9% 8%15%Source: Euromonitor 2006The Sherwin-Williams Company Full Year 2007 4. Top 10 ManufacturersBy Rank, 2007 Est. United States Worldwide1 Akzo Nobel/ICI 1Sherwin-Williams 2 PPG/SigmaKalon 2PPG 3 Sherwin-Williams 3Valspar 4 Dupont 4Masco 5 BASF 5ICI 6 Valspar6DuPont 7 RPM7RPM 8 Nippon 8Comex9Akzo Nobel 10Benjamin Moore Source: Coatings WorldSource: Paint & Coatings Industry The Sherwin-Williams Company Full Year 2007 5. U.S. Coatings Industry Sales Mix by Category2007Special1.28 Billion Gallons Purpose 20.07 Billion Dollars 29%Architectural48%Product Finishes 23% Source: U.S. Department of Commerce; Segment Percents Based on Dollars The Sherwin-Williams Company Full Year 2007 6. U.S. Coatings Industry Architectural Coatings - 2007 2007 = $9.6 BillionNew Construction- Residential20%- Commercial/ Institutional80%Maintenance/Repaint- Residential- Commercial/Institutional Source: Proprietary Paint Industry Data, S-W MarketingThe Sherwin-Williams Company Full Year 2007 7. U.S. New Construction Mix of Construction Put In Place 2007Commercial &Institutional 54% Residential 46%Total Value of Construction: $1,161.3 BillionSource: U.S. Census Bureau - February, 2008 The Sherwin-Williams Company Full Year 2007 8. New ConstructionSherwin-Williams Sales vs Housing Starts 40%30% % Increase/Decrease 20%10% 0%-10%-20%-30%-40%1Q-05 2Q-05 3Q-05 4Q-05 1Q-06 2Q-06 3Q-06 4Q-06 1Q-07 2Q-07 3Q-07 4Q-07pS-W RevenuesResidential Starts Source: U.S. Census Bureau - April, 2006 The Sherwin-Williams Company Full Year 2007 9. Architectural Coatings Gallons in MillionsDIY DIYPC 39% PC51%DIY49%42% 61%PC58%19872007 527 Million Gallons696 Million Gallons1997 647 Million GallonsSource: U.S. Dept of Commerce MA28F Report/Internal EstimatesThe Sherwin-Williams Company Full Year 2007 10. DIY Channel Share, U.S.Most Recent Purchase by Store Type2007Home Center /MassLumber / MerchantsBuilding 16%Materials60% PaintStoresHardware Stores 19%5% Source: Proprietary Paint Industry Data, S-W MarketingThe Sherwin-Williams Company Full Year 2007 11. Contractor Channel Share, U.S.Primary Outlet by Store Type2007Paint Hardware StoresStores 92.3%0.6% HomeCenters 2.4% Discount / Other4.7%Source: National Marketing Measures: 2007 The Sherwin-Williams Company Full Year 2007 12. Financial HighlightsThe Sherwin-Williams Company 2007 2006Net Sales $8.01M$7,810M EBITDA $1,148M$1,050M Income $616M $576M % Sales 7.7%7.4% Earnings Per Share$4.70$4.19 Return on Assets12.7% 11.5% Return on Beginning Equity 30.9%33.3% The Sherwin-Williams Company Full Year 2007 13. Revenue by SegmentThe Sherwin-Williams Company - 2007 Consumer16% Paint Stores62% $1.31 Billion$4.96 Billion $1.73 Billion Global22%The Sherwin-Williams Company Full Year 2007 14. Distribution Mix The Sherwin-Williams Company - 2007 Sales Through ControlledDistribution 75% SalesThroughExternalChannels 25% The Sherwin-Williams Company Full Year 2007 15. Operating Segment ProfitDollars & Percent of Sales - 2007 Consumer17.1%Paint Stores $224.2 Million15.5%Global $766.5 Million $160.7 Million 9.3% The Sherwin-Williams Company Full Year 2007 16. Paint Stores Group2007 Sales $4.96 Billion The Sherwin-Williams Company Full Year 2007 17. Paint Stores Company Operated Distribution North America2007 Est.2002 Est. Sherwin-Williams3,325 2,643ICI/Glidden 662 718PPG 450 250Pro Paint, Inc. 372 308Benjamin Moore* 15468Kelly-Moore 164 160Cloverdale/Rodda109 101Dunn Edwards 8371Diamond Vogel7785Vista4646* Majority OwnedSource: Company Websites, Rauch Guide & Chain Store GuideThe Sherwin-Williams Company Full Year 2007 18. Diversified Customer BaseResidentialNewDIY Commercial Repaint ResidentialPropertyIndustrial &OEM Architects & Management MarineFinishes DesignersThe Sherwin-Williams Company Full Year 2007 19. Consumer2007 Sales $1.31 Billion Manufacturing & Distribution Arm of Company Centralized Research & Development Focus on Productivity Operational Excellence Six SigmaThe Sherwin-Williams Company Full Year 2007 20. DistributionTotal Coatings Outlets, U.S.56,000 Total U.S. Paint & Coatings OutletsConsumer Segment 38,000CustomersSherwin-Williams Stores3,200The Sherwin-Williams Company Full Year 2007 21. ConsumerLeading Brands for Each CategoryPaintAerosolsWood CareApplicatorsThe Sherwin-Williams Company Full Year 2007 22. Global 2007 Sales $1.73 Billion OEM Product FinishesInternational CoatingsAutomotive FinishesThe Sherwin-Williams Company Full Year 2007 23. Consolidated Gross Profit2007 Year-End Results3,598$ Gross Profit3,700 3413 % to Sales3,0803,2002,7012,4552,700 2,3392,308 2,2202,130 2,2492,097 $ Millions2,2001,7281,70045.1 45.444.9 44.944.2 44.3 43.843.743.042.8 43.21,200 41.8700 200 -3001996 19971998 19992000 20012002 2003 2004 2005 20062007 The Sherwin-Williams Company Full Year 2007 24. Selling, General & Admin Expense 2007 Year-End Results$ SG&A3,0002,597 % to Sales2,5132,3262,5002,069 1,8821,7852,0001,730 $ Millions1,50034.434.834.1 33.8 32.4 32.232.41,00050002001 2002 2003 2004 20052006 2007The Sherwin-Williams Company Full Year 2007 25. Working Capital Ratio (Accounts Receivable + Inventory Payables)/Sales18%16.3% 16%13.8% 13.8% 14% 12.7%12.5%11.7%11.5%11.0% 12% 10%8%6%4%2%0% 2000 200120022003 2004 200520062007 The Sherwin-Williams Company Full Year 2007 26. Net Operating Cash900874.8 800815.8 Uses of Cash 700 716.7 Acquisitions ($ in Millions) 600558.9 544.7 Capital Expenditures 500 546.6 400 Buy Back Stock460.0460.0 300351.7340.9 Pay Dividends 200 100 0 2003 2004 2005 2006 2007Net Operating Cash less Cap.Ex. & Dividends Net Operating Cash The Sherwin-Williams Company Full Year 2007 27. Stock Repurchase13.2 14.0012.00Millions of Shares 10.008.10 7.988.00 6.70 6.70 6.60 5.606.00 4.00 2.00 0.00 2001 20022003 200420052006 2007Avg. Common Shares Outstanding156.9152.4 147.0144.7 141.1 137.3130.9 (fully diluted / in millions) The Sherwin-Williams Company Full Year 2007 28. Debt : EBITDA Ratio1500 84%83%1148 73%99% ($ in Millions)1047 1000 76%965 848875 745678 73850062151402003 2004200520062007 EBITDADebt The Sherwin-Williams Company Full Year 2007 29. Dividends Per Share 1979 2008E$1.501.40 $1.40 1.26 $1.30 $1.20 $1.10 1.00 $1.00 .82 $0.90 $0.80 .68 .60 .62 $0.70 .54 .58 .48 $0.60.40.45 $0.50 .32.35 $0.40 .25 .28 .18 .19 .21 .22 $0.30 .13 .14 .16 .10 .12 $0.20 .05 .06 .08 $0.10 .01 .04 $0.001979 19801981 19821983 19841985 19861987 19881989 19901991 19921993 19941995 19961997 19981999 20002001 20022003 20042005 20062007 2008E * After adjustment for all common stock splits The Sherwin-Williams Company Full Year 2007 30. Summary Positioned for Growth Controlled Distribution Technological & Marketing Innovation Strong Brands Sales & Marketing Organization Balance Sheet Liquidity Strong Cash Flow Growth Initiatives Improved Earnings Consistent Dividend IncreasesThe Sherwin-Williams Company Full Year 2007 31. Questions & Answers Save the Date: 6.24.08Financial Community PresentationClevelandRobert Wells Vice President Corporate Communications and Public Affairs Direct: 216.566.2244 [email protected] Conway Director Corporate Communications and Investor Relations Direct: 216.515.4393 Pager: 216.422.3751 [email protected] The Sherwin-Williams Company Full Year 2007

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