Investor Presentation - Sherwin Williams

Investor Presentation

2010 Coatings IndustryGlobal Mix by CategoryTotal CoatingsArchitectural41%Special 2010Purpose66Billi 6.6 Billion Gallons (+4%)21%~90 Billion Dollars (+5%)OEM ProductFinishes38%Source: Kusumgar, Nerlfi & Growney; Segment Percents Based on DollarsThe Sherwin-Williams Company - 2nd Quarter 2011

2010 Coatings IndustryGlobal Demand (US$)Europe29%29%Americas28%33%Asia-Pacific40%36%All CoatingsArchitectural CoatingsRest of World3%2%The Sherwin-Williams The Sherwin-Williams Company Company - 2nd -Quarter 2 nd Quarter 2011 2011

U.S. Coatings IndustryIndustrial Coatings Demand DriversOEM Product FinishesIndustrial Production1Q11 vs. 1Q101Q11 vs. 4Q10Special PurposeInfrastructure Investment (P&M)Vehicle Miles Driven (Auto Refinish)The Sherwin-Williams Company - 2nd Quarter 2011

Company OverviewFinancial Highlights2009 2010Net Sales $7.09M $7.78MEBITDA $834M $924MIncome $436M $462M% Sales 6.1% 5.9%Earnings Per Share $3.78 $4.21Net Operating Cash $859M $707MDividend Per Share $1.42 $1.44Return on Assets 10.1% 8.9%Return on Shareholder Equity 27.1% 31.0%The Sherwin-Williams Company - 2nd Quarter 2011

Company OverviewRevenue & Profit by Segment - 2010Paint StoresSales: $4.38 BillionProfit: $619.6 6 MillionProfit %: 14.1Sales: $2.09 BillionProfit: $123.7 MillionProfit %: 5.9GlobalSales: $1.30 BillionProfit: $204.0 MillionProfit %: 15.7ConsumerControlled Distribution Accounts for 75% of SalesThe Sherwin-Williams Company - 2nd Quarter 2011

Paint Stores GroupTop 10 Paint Store Chains – North AmericaCountYE 2010 Est.1 Yr Change3,390 +36Akzo Nobel/ICI/Glidden 495 -12PPG 392 +2Comex/Pro Paint, Inc. 334 +1Kelly-Moore 162 -1Cloverdale/Rodda 111 1,784 +10 +3Dunn Edwards 108 +5Diamond Vogel 68 -1Benjamin Moore 65 -2Vista 49 +1Gap: +1,606 +33Source: Independent Research, Company Websites, Rauch Guide, Chain Store GuideThe Sherwin-Williams Company - 2nd Quarter 2011

Paint Stores GroupStore PenetrationHouseholds per StoreOver 50,00040,000 - 50,00030,000 - 40,000Under 30,000The Sherwin-Williams Company - 2nd Quarter 2011

Paint Stores GroupVoluntary TurnoverManager 2.9%Assistant Mgr. 8.0%Sales Rep 4.8%The Sherwin-Williams Company - 2nd Quarter 2011

Consumer GroupEnd to End Supply Chain• 26 Manufacturing Sites• 10 Distribution Service Centers• 400 Tractors / 1,200 Trailers• More than 6,000 EmployeesThe Sherwin-Williams Company - 2nd Quarter 2011

Consumer GroupRaw Material BreakdownContainers (14%)Metal or PlasticSolvents (12%)Resins/Latex (36%)Acrylic (Latex Paints)Alkyd (Oil Paints)Epoxy (Epoxy Paints)Pigments (29%)Titanium DioxidePigmentsPaint FillersExtendersAdditives (9%)The Sherwin-Williams Company - 2nd Quarter 2011

Brand PowerLeading U.S. Brand Awareness#1 Architectural Paint Brand#1 Stain & Protective ti Finish i Brand#1 Aerosol Paint Brand#1 Auto Specialty Paint Brand#1 Painting Tool Brand#1 Wood Sealer BrandThe Sherwin-Williams Company - 2nd Quarter 2011

Consumer GroupU.S. Outlet Penetration56,000Total U.S. Paint &Coatings Outlets38,000Consumer SegmentCustomers3,400Sherwin-Williams StoresThe Sherwin-Williams Company - 2nd Quarter 2011

Global Finishes GroupAutomotiveAerospaceArchitecturalProtectiveMarineOEM FinishesThe Sherwin-Williams Company - 2nd Quarter 2011

Global Finishes GroupExpanding Global Platform• Protective & Marine• OEM Product Finish• Automotive• Aerospace• Architectural• Protective & Marine• OEM Product Finish• Automotive• Automotive• OEM Product Finish• Architectural• Industrial Wood Coatings• Protective & Marine• OEM Product Finish• Automotive• Architectural• Protective & Marine• OEM Product Finish• AutomotiveThe The Sherwin-Williams Company - 2nd - 2Quarter nd 2011 2011

Consolidated Gross Profit$ Gross Profit% of Sales4,0003,5003,0803,4133,5983,4993,2633,481Millions$3,0002,5002,0001,5002,45545.42,70144.244.942.843.743.846.044.81,00050002003 2004 2005 2006 2007 2008 2009 2010The Sherwin-Williams Company - 2nd Quarter 2011

Consolidated Gross Profit4,0003,500$ Gross Profit% of SalesRaw Material Index3,0803,4133,5983,4993,2633,481Millions$3,0002,5002,0001,5002,45545.42,70144.244.942.843.743.846.044.81.816 1.61.41,00050012 1.202003 2004 2005 2006 2007 2008 2009 2010 20111.0The Sherwin-Williams Company - 2nd Quarter 2011

Selling, General & Admin Expense3,0002,500$ SG&A% to Sales2,0692,3262,513 2,597 2,6442,5352,728$ Millions2,0001,5001,00033.832.4 32.2 32.433.135.735.150002004 2005 2006 2007 2008 2009 2010The Sherwin-Williams Company - 2nd Quarter 2011

Working Capital Ratio(Accounts Receivable + Inventory – Payables)/Sales20%15%13.8%12.5% 12.7%11.5% 11.7%11.0%11.5%10.7% 11.9%10%5%0%2002 2003 2004 2005 2006 2007 2008 2009 2010The Sherwin-Williams Company - 2nd Quarter 2011

Uses of Cash2006-2010 ($ Millions)5-Year Net Operating Cash: $4,132.3Capital Expenditures$709.5Treasury StockPurchases$2,473.0$781.7Cash Dividends$715.9AcquisitionsThe Sherwin-Williams Company - 2nd Quarter 2011

Stock Repurchase14.0013.2012.00Millions of Shares10.007.98800 8.00 660 6.606.004.008.105.607.259.005.002.000.002003 2004 2005 2006 2007 2008 2009 2010Avg. CommonShares Outstanding 147.0 144.7 141.1 137.3 130.9 119.3 115.4 108.2Avg. Price/Share $30.28 $40.00 00 $44.14 $54.49 49 $65.39 $54.28 $58.93 $75.14The Sherwin-Williams Company - 2nd Quarter 2011

Total Debt : EBITDA Ratio83% 84% 88% 98% 113%($ in Mi illions)1200100080060040087510479651148946834 818834104592420002006 2007 2008 2009 2010Total DebtEBITDAThe Sherwin-Williams Company - 2nd Quarter 2011

Dividends Per Share1979 – 2010$1.50$1.40$1.30$1.20$1.10$1.00$0.90$0.80$0.70$0.60$0.50$0.40$0.30$0.20$0.10$0.00.82.68.48 .54 .58 .60 .62.21 .22 .25 .28 .32 .35 .40.45.01 .04 .05 .06.08 .10 .12 .13 .14 .16 .18 .191.001.261.401.42 1.441979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009The Sherwin-Williams Company - 2nd Quarter 2011