SHW Current IR Deck_4.1.08

Sean P. Hennessy Robert J. WellsSenior Vice President, Vice President,

Finance & CFO Corporate Communications& Public Affairs

The Sherwin-Williams Company – Full Year 2007

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 management’s 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 Company’s 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 Company’s 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 Company’s 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.


China9%

Eastern Europe

7%

North America28%

Latin America4%

Africa/Mideast

4%

Other Asia/ Pacific

15%

Japan8%

Western Europe

26%

Coatings IndustryGlobal Demand

Source: Euromonitor 2006

2006 Est.7.3 Billion Gallons88 Billion Dollars


Top 10 ManufacturersBy Rank, 2007 Est.

Source: Coatings World

1 Sherwin-Williams2 PPG3 Valspar4 Masco 5 ICI6 DuPont 7 RPM8 Comex 9 Akzo Nobel

10 Benjamin Moore

1 Akzo Nobel/ICI2 PPG/SigmaKalon3 Sherwin-Williams4 Dupont5 BASF6 Valspar7 RPM8 Nippon

Worldwide United States

Source: Paint & Coatings Industry


U.S. Coatings IndustrySales Mix by Category

Source: U.S. Department of Commerce; Segment Percents Based on Dollars

Architectural48%

Special Purpose

29%

Product Finishes

23%

20071.28 Billion Gallons

20.07 Billion Dollars


U.S. Coatings IndustryArchitectural Coatings - 2007

Source: Proprietary Paint Industry Data, S-W Marketing

New Construction- Residential- Commercial/

Institutional

20%

80%

Maintenance/Repaint- Residential- Commercial/

Institutional

2007 = $9.6 Billion


U.S. New ConstructionMix of Construction Put In Place – 2007

Source: U.S. Census Bureau - February, 2008

Residential 46%

Commercial &Institutional

54%

Total Value of Construction: $1,161.3 Billion


New ConstructionSherwin-Williams Sales vs Housing Starts

Source: U.S. Census Bureau - April, 2006

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

S-W Revenues Residential Starts

1Q-05 2Q-05 3Q-05 4Q-05 1Q-06 2Q-06 3Q-06 4Q-06 1Q-07 2Q-07

% In

cre a

s e/D

ecre

ase

3Q-07 4Q-07p


Architectural CoatingsGallons in Millions

2007 696 Million Gallons

DIY39%PC

61%

1987527 Million Gallons

DIY51%PC

49%

1997647 Million Gallons

DIY42%PC

58%

Source: U.S. Dept of Commerce MA28F Report/Internal Estimates


DIY Channel Share, U.S.Most Recent Purchase by Store Type

Mass Merchants

16%

Paint Stores

19%Hardware Stores

5%

Home Center / Lumber / Building Materials

60%

Source: Proprietary Paint Industry Data, S-W Marketing

2007


Contractor Channel Share, U.S.Primary Outlet by Store Type

Source: National Marketing Measures: 2007

Paint Stores92.3%

HomeCenters

2.4%

Discount / Other4.7%

Hardware Stores

0.6%

2007


Financial HighlightsThe Sherwin-Williams Company

Net Sales $8.01M $7,810MEBITDA $1,148M $1,050MIncome $616M $576M

% Sales 7.7% 7.4%Earnings Per Share $4.70 $4.19Return on Assets 12.7% 11.5%Return on Beginning Equity 30.9% 33.3%

2007 2006


Revenue by SegmentThe Sherwin-Williams Company - 2007

Consumer16%

Global22%

Paint Stores62%

$4.96 Billion $1.73 Billion

$1.31 Billion


Distribution MixThe Sherwin-Williams Company - 2007

Sales Through ControlledDistribution

Sales Through ExternalChannels

75%

25%


Operating Segment Profit Dollars & Percent of Sales - 2007

Consumer17.1%

Global9.3%

Paint Stores15.5%

$766.5 Million

$224.2 Million

$160.7 Million


Paint Stores Group

2007 Sales $4.96 Billion


Company Operated Distribution

North America 2007 Est. 2002 Est.

Sherwin-Williams 3,325 2,643ICI/Glidden 662 718PPG 450 250Pro Paint, Inc. 372 308Benjamin Moore* 154 68Kelly-Moore 164 160Cloverdale/Rodda 109 101Dunn Edwards 83 71Diamond Vogel 77 85Vista 46 46

Source: Company Websites, Rauch Guide & Chain Store Guide

* “Majority Owned”

Paint Stores


Diversified Customer Base

DIY Residential Repaint

New Residential Commercial

Property Management

Industrial & Marine

OEM Finishes

Architects & Designers


Consumer

• Manufacturing & Distribution Arm of Company

• Centralized Research & Development• Focus on Productivity• Operational Excellence – Six Sigma



DistributionTotal Coatings Outlets, U.S.

Sherwin-Williams Stores

56,000

3,200

38,000 Consumer SegmentCustomers

Total U.S. Paint &Coatings Outlets


Paint

Aerosols

Wood Care

Applicators

ConsumerLeading Brands for Each Category


Global

OEM Product Finishes

Automotive Finishes

International Coatings



1,7282,097 2,130 2,249 2,308 2,220 2,339 2,455

2,7013,080

3413 3,598

-300200700

1,2001,7002,2002,7003,2003,700

$ M

illio

ns

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

$ Gross Profit

44.943.742.844.2

45.445.143.844.344.9

43.243.041.8

% to Sales

Consolidated Gross Profit2007 Year-End Results


1,730 1,785 1,8822,069

2,3262,513 2,597

0

500

1,000

1,500

2,000

2,500

3,000

$ M

illio

ns

2001 2002 2003 2004 2005 2006 2007

$ SG&A

Selling, General & Admin Expense2007 Year-End Results

32.432.232.433.834.834.434.1

% to Sales


Working Capital Ratio(Accounts Receivable + Inventory – Payables)/Sales

16.3%

13.8%

11.5% 11.0%

13.8%12.5%

11.7%

0%2%4%6%8%

10%12%14%16%

18%

2000 2001 2002 2003 2004 2005 2006 2007

12.7%


Net Operating Cash

Uses of Cash

• Acquisitions

• Capital Expenditures

• Buy Back Stock

• Pay Dividends

0100200300400500600700800900

2003 2004 2005 2006 2007

Net Operating Cash less Cap.Ex. & DividendsNet Operating Cash

( $ i n

Mil li

ons)

558.9 544.7

716.7

351.7 340.9460.0 460.0

815.8874.8

546.6


Stock Repurchase

6.70 6.707.98

6.608.10

5.60

13.2

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Mill

ions

of S

hare

s

2001 2002 2003 2004 2005 2006 2007

Avg. Common Shares Outstanding 156.9 152.4 147.0 144.7 141.1 137.3 130.9(fully diluted / in millions)


Debt : EBITDA Ratio

678 745848

10471148

514738

621

875965

0

500

1000

1500

2003 2004 2005 2006 2007

Debt EBITDA

($ in

Milli

ons) 76% 99% 73%

83%84%


Dividends Per Share1979 – 2008E

.01 .04 .05 .06 .08 .10 .12.13 .14 .16 .18 .19 .21 .22 .25 .28 .32.35.40.45 .48 .54 .58 .60 .62 .68

.82

1.00

1.261.40

$0.00$0.10$0.20$0.30$0.40$0.50$0.60$0.70$0.80$0.90$1.00$1.10$1.20$1.30$1.40$1.50

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

E

* After adjustment for all common stock splits


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 Increases


Questions & Answers

Save the Date: 6.24.08Financial Community Presentation

Cleveland

Robert WellsVice President Corporate Communications and Public AffairsDirect: [email protected]

Mike ConwayDirector Corporate Communications and Investor RelationsDirect: 216.515.4393Pager: [email protected]

SHW Current IR Deck_4.1.08

Economy & Finance

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