Business, Governance, & Corporate Responsibility

BUSINESS, GOVERNANCE, & CORPORATE RESPONSIBILITY UPDATE

August 2019

1 Forward-Looking Statement

The update contains certain “forward-looking statements," within the meaning of the federal securities laws, with respect to anticipated future performance (including sales and earnings), expected growth, future business plans and other matters. These statements may be identified by the use of words and phrases such as "believe," "expect," "may," "will," "should," "project," "could," "plan," "goal," "potential," "seek," "intend" or "anticipate" or the negative thereof or comparable terminology. These statements are based upon management's current expectations, 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 our control that could cause actual results to differ materially from such statements and from our 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 raw material and energy supplies and pricing; changes in our relationships with customers and suppliers; our ability to successfully integrate past and future acquisitions into our existing operations, including Valspar, as well as the performance of the businesses acquired; risks inherent in the achievement of anticipated cost synergies resulting from the acquisition of Valspar and the timing thereof; competitive factors, including pricing pressures and product innovation and quality; the nature, cost, quantity and outcome of pending and future litigation and other claims, including the lead pigment and lead-based paint litigation, and the effect of any legislation and administrative regulations relating thereto; adverse weather conditions and natural disasters; and other risks, uncertainties and factors described from time to time in our 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 we undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

2 Executive Summary

Company • Committed to building long-term, sustainable shareholder value Overview

Corporate • Experienced Board comprised of diverse thought and business leaders Governance • 10 of 11 directors are independent

Executive • Program designed to create “pay-for-performance” culture that Compensation rewards leadership for delivering results

Environmental & Social Responsibility • Core values embedded in Sherwin-Williams’ culture and business practices

3 COMPANY OVERVIEW

4 Why SHW?

GROWTH OPPORTUNITIES BALANCE SHEET & CASH GENERATION

GREAT BRAND PORTFOLIO ATTRACTIVE RETURNS

STRATEGIC PARTNERSHIPS DISTRIBUTION & SERVICE INTEGRATION SUCCESS

WORLD CLASS SUPPLY CHAIN EXPERIENCED MGMT & TALENT PIPELINE

INNOVATIVE PRODUCTS RESPONSIBLE CORPORATE CITIZEN

5 OVERVIEW

GLOBAL FOOTPRINT 2018 REVENUES $17.5 billion

The Americas Group Consumer Brands Group Performance Coatings Group Corporate headquarters 60,000+ EMPLOYEES 120+ ~4,700 COUNTRIES STORES 6 SHW Reportable Segments

55% 16% 29% of total FY18 of total FY18 of total FY18 Sales Sales Sales

The Americas Group Consumer Brands Group Performance Coatings Group

Operates the exclusive outlets for Sells one of the industry’s most recognized Sells a broad range of coatings and finishing Sherwin-Williams® branded paints, stains, and portfolios of branded and private-label products solutions to general industrial, industrial wood, supplies in the United States, Canada and the through retailers across North America and in protective and marine, automotive, packaging and Caribbean. Also sells across Latin America parts of Europe, China, Australia and New Zealand. coil & extrusion customers in 120+ countries. through company-operated stores, dedicated Also operates our highly efficient global supply dealers and selected retailers. chain.

7 Financial Highlights

Sales (In Millions) Net Income from Continuing Operations (In Millions)

10 Year CAGR 8.8% 10 Year CAGR 8.2%

$17,534.5 $1,108.7

$7,979.7 $476.9

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* 2018 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* 2018

GAAP Diluted net income per common share from cont. operations Net Operating Cash (In Millions) 10 Year CAGR 8.3%

10 Year CAGR 11.3% $1,943.7

$11.67

$876.2

$4.00

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* 2018 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* 2018

8 * Valspar Corporation acquired June 1, 2017 Consistent Capital Allocation

CONSISTENT CAPITAL ALLOCATION PHILOSOPHY: WE WILL NOT HOLD CASH

CAPEX Dividend Strategic Share Investment Target 30% of M&A Repurchase Modest PY GAAP Clearly Defined Absent Strategic Requirements Earnings Criteria M&A

<2.0% 40 14 40 TARGET AS CONSECUTIVE ACQUISITIONS MILLION SHARES % OF SALES YEARS OF IN LAST PURCHASED IN INCREASES DECADE LAST DECADE

9 Comparison of Cumulative Five-Year Total Return

Assumes $100 invested on December 31, 2013 and reinvestment of dividends.

$250

$200

$150

$100 2013 2014 2015 2016 2017 2018

Peer group of companies comprised of the following: Akzo Nobel N.V., BASF SE, H.B. Fuller Company, Genuine Parts Company, The Home Depot, Lowe’s Companies, Masco Corporation, Newell Brands, PPG Industries, RPM 10 International, Stanley Black & Decker and USG Corporation CORPORATE GOVERNANCE

11 Sound Corporate Governance

HIGH ETHICAL STANDARDS IN THE BEST INTEREST OF OUR SHAREHOLDERS

Annual election of all directors Executive sessions of independent directors are held at each regular board meeting Majority voting standard and director resignation policy for directors in uncontested elections Directors have complete access to management

Independent lead director has significant Stringent restrictions on pledging and hedging of governance responsibilities our stock

10 of 11 directors are independent Significant director and executive stock ownership guidelines Board committees are comprised entirely of independent directors Board oversight of risk management

Mandatory retirement age of 72 for directors Proxy access rights available to 3-year, 3% shareholders for up to 20% of Board Annual board and committee self-assessment evaluations (Conducted by an outside independent advisor in 2018)

12 Board of Directors: Diverse group providing valuable insight and effective oversight.

KERRII B. ANDERSON JOHN G. MORIKIS Retired, Former CEO & President Chairman & CEO Wendy’s International Sherwin-Williams Director of Sherwin-Williams since 2019 Director of Sherwin-Williams since 2015

ARTHUR F. ANTON CHRISTINE A. POON Chairman & CEO Executive in Residence, The Max M. Fisher Swagelok Company College of Business - The Ohio State University Director of Sherwin-Williams since 2006 CHAIR Director of Sherwin-Williams since 2014 CHAIR

JEFF M. FETTIG MICHAEL H. THAMAN Retired, Former Chairman & CEO Chairman, President & CEO Whirlpool Corporation Owens Corning Director of Sherwin-Williams since 2019 Director of Sherwin-Williams since 2017

DAVID F. HODNIK MATTHEW THORNTON III Retired, Former President & CEO Exec.Vice President & COO, FedEx Freight Ace Hardware Corporation FedEx Corporation Director of Sherwin-Williams since 2005 Director of Sherwin-Williams since 2014

RICHARD J. KRAMER STEVEN H. WUNNING - Lead Director since 2019 Chairman of the Board, CEO & President Retired, Former Group President The Goodyear Tire & Rubber Company Caterpillar Inc. Director of Sherwin-Williams since 2012 Director of Sherwin-Williams since 2015

SUSAN J. KROPF COMMITTEES Retired, Former President & COO COMPENSATION NOMINATING Avon Products, Inc. & MANAGEMENT AUDIT & CORPORATE Director of Sherwin-Williams since 2003 CHAIR DEVELOPMENT GOVERNANCE

13 Board of Directors: Experiences, Qualifications, Attributes and Skills

SENIOR MANAGEMENT EXPERIENCE 11 DIRECTORS INDEPENDENCE 10 FINANCIAL EXPERTISE 9 MANUFACTURING; DISTRIBUTION 11 TECHNICAL; RESEARCH & DEVELOPMENT 9 INTERNATIONAL OPERATIONS 11 MARKETING; SALES 11 RETAIL OPERATIONS 4 DIVERSITY 4

14 Risk Management and Oversight

AUDIT NOMINATING & CORPORATE COMPENSATION & COMMITTEE GOVERNANCE COMMITTEE MANAGEMENT DEVELOPMENT

• Integrity of financial statements • Future Board member identification • Executive compensation • Internal controls effectiveness • Board and committee composition • Nonemployee director compensation • Independent auditor performance • Governance guidelines & practices • Succession planning • Internal audit performance • Annual Board self-assessment • Legal & regulatory compliance • ESG

Code of Conduct Global Annual Global Regional & Anti-Bribery Ethics ERM Internal Audit & Loss Corporate Ethics Anti-Corruption Hotline Risk Assessment Prevention Function Committees

Incorporated into Strategic Annual Global Training Continuous Monitoring 150 Professionals Meet Quarterly Planning Process

15 EXECUTIVE COMPENSATION

16 Responsible Executive Compensation Practices

WHAT WE DO WHAT WE DON’T DO

Performance-Based Pay No Employment Agreements* Independent Compensation Committee No Dividend Equivalents for Unvested Independent Compensation Consultant RSU Awards Balanced Compensation Structure No Repricing or Replacing of Underwater Stock Options Target Median No Hedging Responsibly Administered Incentive No Pledging Compensation Programs No Speculative Trading Clawback and Recapture Policy No Excessive Perquisites Double-Trigger Change in Control No Excessive Risk-Taking Significant Stock Ownership Requirement No Above-Market Earnings on Deferred Compensation Annual Say on Pay Vote

17 *One exception related to Valspar acquisition, expiring August 1, 2019 Compensation Components Foster Pay-For-Performance Culture

Component Key Characteristics

• Provides base compensation for day-to-day performance of job Base Salary responsibilities. 11%

• Rewards performance based on the achievement of annual 15%

Annual Cash Incentive performance goals. (2018) Compensation • Based on performance metrics including Sales, EPS, Free Cash Flow, Return on Net Assets Employed and Business Unit specific targets. 74%

• Encourages improvement in the long-term performance of our company. CHIEF EXECUTIVE EXECUTIVE CHIEF OFFICER Long-Term Equity • Aligns the financial interests of our executives and our shareholders. • Serves as an executive retention tool. Incentive • Stock Options (40% allocation). Compensation • Performance-based RSUs – EPS metric (40%). • Performance-based RSUs – RONAE metric (20%).

• The Compensation Committee utilizes a peer group of companies to assess whether our executive compensation program is competitive in the market. • Our peer group now consists of the following 23 companies: 23%

Air Products and Chemicals, Inc. Eastman Chemical Company Johnson Controls International plc Newell Brands Inc. (2018) Akzo Nobel N.V. Eaton Corporation plc Kimberly-Clark Corporation PPG Industries, Inc. 59% 18%

Ball Corporation Ecolab Inc. Linde plc Stanley Black & Decker, Inc. OF AVG. OTHER Colgate-Palmolive Company Honeywell International Inc. LyondellBasell Industries N.V. 3M Company NAMED EXECUTIVES Cummins Inc. Huntsman Corporation Masco Corporation Whirlpool Corporation Deere & Company Illinois Tool Works Inc. Mohawk Industries, Inc. 18 ENVIRONMENTAL & SOCIAL RESPONSIBILITY

19 The Company We Keep

Active engagement with organizations that value sustainable practices as much as we do. • American Coatings Association • PaintCare® Program • British Coatings Federation • UL Environmental • CLEARCorps USA • The Carbon Disclosure Project™ • ECOLABEL - European Union • The Coatings Care® Program • EcoVadis • The Global Alliance to Eliminate • EPA SmartWay® Fuel Efficient Lead in Paint Transportation Program • The Green Chemistry in Commerce • GREENGUARD Certification Council (GC3) from UL Environment • The U.S. Green Building Council® • Household & Commercial Products (USGBC) LEED™ Program Association (HCPA) • The Sustainability Accounting • National Association of Home Builders Standards Board SASB (NAHB) National Green Building • Water Disclosure Project Program™ • NSF International

20 S-W Cares: Our Corporate Responsibility Philosophy

OSHA OHSAS VOLUNTARY S-W FLEET DIVERSITY IN SAFETY 18001 PROTECTION ACCIDENTS MANAGEMENT RECORDABLE CERTIFIED PROGRAM (VPP) PER MILLION TRAINING RATE PROVIDING A SAFE & INCLUSIVE SITES CERTIFIED MILES PROGRAM WORK ENVIRONMENT SITES

VOLUNTEER TRACKED NUMBER OF US SUPPLIER ANTI-HUMAN HOURS / NON CONTRIBUTIONS EMPLOYEES ON CODE OF TRAFFICKING PROFIT BOARD MILITARY LEAVE CONDUCT POLICY MAKING A DIFFERENCE SERVICE

IN OUR COMMUNITIES SELECTED METRICS SELECTED

NON CARBON HAZARDOUS HAZARDOUS SUSTAINABLE ELECTRICITY PERFORMANCE SOLID & LIQUID WASTE PRODUCTS PERFORMANCE GROWING OUR BUSINESS (CO2e) WASTE PERFORMANCE WITH CARE PERFORMANCE

21 The Employer: Providing a safe & inclusive work environment

Safety Recordable Rate Manufacturing Sites Recognized for OSHA VPP STAR Recordable Case Rates Safety & Health Management Systems OHSAS 18001 Number of Sites 2.45 2.22 1.97 14.0 14.0 1.58 13.0 12.0 12.0 12.0 1.32 1.38

32.0 28.0 28.0 29.0 27.0 30.0

2013 2014 2015 2016 2017 2018 62 GSC Sites Achieved Zero Recordables in 2018 2013 2014 2015 2016 2017 2018 Reportable Fleet Accidents per Million Miles Accidents per Million Miles 0.86 0.59 0.61 0.55 0.49 *

0.57 0.55 0.43 0.51 0.49 0.45

2013 2014 2015 2016 2017 2018

Data reflects the United States Department of Transportation Reportable Accident Rate.

22 *2018 Industry Benchmark Data not available at time of production The Employer: Fostering a diverse and inclusive work environment

Culture Building Activities in Action: • Joined CEO Action on Diversity & Inclusion Coalition • Conscious Inclusion Education & Training • CEO Forums on Inclusion • Employee Networks • Engagement & Inclusion Index

PROGRESS TALENT DEVELOP & ENGAGE TALENT FILL THE PIPELINE EDUCATE & COMMUNICATE

ACTION PLANNING | MEASUREMENT & ACCOUNTABILITY LEADERSHIP COMMITMENT

23 The Citizen: Making a difference in our communities

Charitable Giving $8,178,038 Operating Divisions Donations $7,698,622 Sherwin-Williams Foundation Grants Employee Matching Fund Submission Employee Pledge Campaign Donations $6,637,749

$5,636,657 $5,240,827 $4,876,612

$3,879,019 $3,752,465 $3,691,174

2010 2011 2012 2013 2014 2015 2016 2017 2018

24 The Citizen: Making a difference in our communities

National Painting Week HomeWork Program As a company, we look for ways to help the community at every turn, utilizing the skills of our Every year, our employees from more than people and the performance of our products. One of our flagship 4,300 neighborhood Sherwin-Williams endeavors is the nationally recognized HomeWork Program, started at Sherwin-Williams in 2004 and staffed nationally by a team of stores across North America partner with S-W retirees. As of December 2018, more than 7,056 people have local organizations to find projects that could been trained and 66.8 percent of those trainees secured use a fresh coat of paint. In 2018 alone, employment following completion of the HomeWork Program. Sherwin-Williams donated 9,000 gallons of The Sherwin-Williams’ HomeWork Program Provides: • Professional painter training for minorities and low-income paint and its employees volunteered nearly housing residents 34,000 hours of their time to make a colorful • Job placement assistance with local contractors & unions impact in their communities. • EPA Renovate, Repair & Painting (RPP) Certification instruction • Since April 2010, we have sponsored RRP Training and Certified over 43,000 contractors and their workers • Deeply discounted materials to expand healthy homes & lead-safe property maintenance

25 The Steward: Growing our business with care

Total Indirect Electricity Consumption Global Supply Chain CO2e Emissions Total Direct Pounds per 100 lbs of Production Sales/Admin Pounds per 100 lbs of Production 26.7 2020 26.1 24.8 23.3† Goal 22.5 21.2* 10.9 10.6 10.2 2020 20.9 9.7 Goal 13.1 8.5 8.3 13.0 12.1 7.9* 11.4 12.0 5.8 5.7 5.6 12.5 11.3 5.3 3.1 3.1 2.9

13.6 13.1 12.7 11.9 5.1 4.9 4.6 4.4 5.4 5.2 5.0 10.5 8.4 9.9

2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020 HISTORIC S-W S-W+VALSPAR HISTORIC S-W S-W+VALSPAR *Goal 2.0% reduction per year from 2017 baseline. † US Indirect CO2 emissions calculations based on *The 2020 goal is based on a 2.5% annual reduction from the 2017 baseline value. EPA eGRID2016, February 2018 factors for 2018, EPA eGRID2010 Version 1.0, March 2011 for 2013 - 2017 Hazardous Waste: Treatment & Disposal Hazardous Waste: Reuse & Recycle Pounds per 100 lbs of Production 2020 Pounds per 100 lbs of Production 0.94 Goal 0.88* 1.28 0.81*** 1.17 1.06 1.08 0.71 0.70 0.71 0.98** 0.63 0.63** 0.76* 0.71

2013 2014 2015 2016 2017 2017 2018 2019 2020 2013 2014 2015 2016 2017 2017 2018 HISTORIC S-W S-W+VALSPAR HISTORIC S-W S-W+VALSPAR * Sherwin-Williams acquired Valspar on June 1, 2017. Hazardous waste data from all GSC facilities were included. * Sherwin-Williams acquired Valspar on June 1, 2017. Hazardous material data from all GSC facilities were included. ** The non-hazardous solid waste generation rate from the historic Sherwin-Williams GSC facilities was 0.63 pounds per 100 pounds ** The hazardous material reuse & recycle rate from the historic Sherwin-Williams GSC facilities was 0.98 pounds per 100 pounds of production. *** The 2020 goal is based on a 2.5% annual reduction from the new 2017 baseline value. of production. 26 The Steward: Growing our business with innovative products

EcoSelect® AquaGuard® ProMar® 200 HP Zero VOC Coating Solutions Zero VOC Interior Latex Zinc-Free & Water-Based Interior Latex

Ultra 9K™ ProMar® 400 Harmony® SuperDeck® Waterborne Zero VOC Zero VOC Waterborne Basecoat System Primer Interior Acrylic Latex Exterior Solid Color Deck Stain