2017 Annual Report The PPG Logo and Colorful Communities are registered trademarks and PPG Science Pavilion and We protect and beautify the world are trademarks of PPG Industries Ohio, Inc. Fortune is a registered trademark of Time, Inc. Forbes is a registered trademark of Forbes, LLC. Corporate Equality Index is a registered trademark of Human Rights Campaign Foundation Corporation. IndustryWeek is a registered trademark of Penton Media, Inc. The Wall Street Journal and Barron's are registered trademarks of Dow Jones. UniversalPHOLED is a registered trademark of Universal Display Corporation. ©2018 PPG Industries, Inc. All rights reserved. A Message from Our Chairman From hardtops to rooftops, Our Valued Shareholders, we’ve got you covered. Thanks to our employees and customers, PPG delivered a solid performance in 2017. As I travel to PPG facilities around the world, I am always impressed by our people and their focus on strengthening our company, serving our customers’ needs, and bringing life to our purpose and promise: We protect and beautify the world. Michael H. McGarry Chairman and Chief Executive Officer FINANCIAL This focus, which begins with the with more than $1.2 billion returned HIGHLIGHTS performance of our business, in 2017 through share repurchases was a key to our success in 2017. and dividends. We take great pride With the dedication of our 47,000 in having paid annual dividends for $ employees and the trust of our 118 consecutive years, including a 14.8B customers, we have continued 13 percent per-share increase last Net sales, up more than to strengthen our position as a July that marked 46 consecutive 3 percent versus 2016 global leader in the paint and years of increased per share coatings industry. payouts. * PPG in 2017 delivered adjusted PPG maintained excellent financial $ earnings diluted per share flexibility with cash and short-term 5.87 growth; we continued to investments of about $1.5 billion Adjusted earnings per diluted share from continuing operations, aggressively manage costs; and at year-end. representing an increase of nearly we completed the multi-year We have committed to deploy a 4 percent year-over-year strategic transformation of our minimum of $2.4 billion of cash business portfolio by divesting in 2018 on acquisitions and our North American fiber glass share repurchases as part of our % business. Today, PPG is entirely previously communicated target 1.4 focused on innovating paints, Organic sales growth over 2016 to deploy $3.5 billion in 2017 and coatings and specialty materials 2018 combined. to deliver growth and value in our $ business. We further strengthened (continued next page) 1.4B our portfolio by completing four Reported net income from acquisitions during the year. continuing operations, We have also continued our legacy or $5.32 per diluted share At PPG, our scientists develop innovative paints and coatings of returning cash to shareholders, that protect automobiles from highway to driveway. The same commitment to innovation is inside every gallon of PPG paint * See footnote 2 at the bottom of page 3. you use to protect your home. And that’s a commitment that’s hard to top. Today, PPG is entirely " focused on innovating paints, coatings and specialty materials to deliver growth and value in our business." PPG ANNUAL REPORT AND FORM K i A Message from Our Chairman 135 years of heritage, committed to the future As we begin 2018, our 135th year in operation, the focus on our purpose has never been stronger and extends beyond the economic boundaries of our business to ensure the long-term sustainability of PPG. There is no better example than the investments we are making in communities where we operate. Recently, I was privileged to join PPG’s top 100 global leaders at an elementary school in Miami to truly personalize our mission. As part of PPG’s COLORFUL COMMUNITIES® initiative, we painted murals, brightened the school’s library and cafeteria, and created an outdoor learning classroom. It was a special opportunity to help the school create a brighter, more vibrant learning environment. Supporting communities PPG and the PPG Foundation collaborate with our employees and community partners to breathe continuous life into our mission: We protect and beautify the world. We dedicate financial resources, apply our products and use the power of our passionate employee- volunteers to address the needs of communities – and to help transform lives in the process. Through the Colorful Communities initiative and other community engagement programs, we invested more than $10.5 million in 2017, supporting hundreds of organizations across 29 countries. Committed volunteers contribute their time and apply PPG paint products to help transform community assets – from painting classrooms, to bringing color to a maternity ward and redesigning a playground. Since 2015, PPG has completed more than 125 Colorful Communities projects, improving life for more than 4 million people. I encourage you to visit ppg.com to view our videos that show how these projects positively impact the many children and their families. Enduring commitment to innovation and sustainability Our commitment to innovation is intertwined with growth and sustainability. It covers a wide range of products and services that provide environmental, safety and other benefits to our customers. Our products contribute to lighter, more fuel-efficient vehicles, airplanes and ships, and they help our customers reduce their energy consumption, conserve water and reduce waste. Our technologies are helping manufacturers to protect their assets and products from corrosion, and we are sharing those technologies across our businesses. Our goal is to achieve 25 percent of total sales from products introduced in the last four years. In 2017, we invested nearly $500 million in research and development. Examples include PPG’s award-winning waterborne technologies, our compact painting process for vehicles, and new coatings for lithium batteries needed for electric cars. ii PPG ANNUAL REPORT AND FORM K A Message from Our Chairman Our technologies are helping " manufacturers to protect their assets and products from corrosion, and we are sharing those technologies across our businesses. " Emerging opportunities We’re continuously focused on emerging trends, working alongside customers to create innovative solutions. We’re embracing new ways of thinking and trying new approaches. A prime example is our newly formed mobility team, which is focused on developing and commercializing growth opportunities in the emerging, global market for autonomous and electric vehicles. We are preparing for a future of shared and connected vehicles. In addition, we are leveraging digital initiatives across our businesses. We are focused on the future and constantly preparing to take advantage of evolutions in our markets. Growing long-term value with sustainable business practices PPG’s culture of continuous improvement underpins our approach and commitment to sustainability. Whether it’s increasing the efficiency of our operations or developing our people, our improvement efforts naturally extend to many areas that impact our sustainability performance. Our employees continued to enhance and strengthen our sustainable operations. During the year, we recognized more than 200 projects through our internal sustainability awards initiative. These projects, which we estimate saved more than $17 million, helped us reduce our energy consumption, waste, water use and emissions. As PPG’s portfolio has continued to evolve, we are evaluating our business and striving to achieve even more. With the release of our Corporate Sustainability Report in April 2018, we will announce new, aggressive goals that will guide our company in increasing the use of sustainable business practices. (continued next page) SUSTAINABILITY HIGHLIGHTS 32% -22% -25% -4% Of sales from sustainable- Energy Greenhouse gas Waste disposal advantaged products, an intensity emission intensity intensity increase of 12% reduction reduction reduction since 2012 PPG ANNUAL REPORT AND FORM K iii A Message from Our Chairman The value of diverse perspectives One of PPG’s greatest strengths is the diversity of our people, EXTERNAL who represent wide-ranging nationalities, cultures, languages, RECOGNITIONS religions, ethnicities, lifestyles and professional and educational backgrounds. PPG’s ongoing diversity and inclusion efforts #1 on FORTUNE® World’s Most Admired begin at the highest levels of our company. We are proud of the Companies in the chemicals sector diversity represented in our 11-member board of directors. Our board plays an instrumental role in our focus, strategic direction and path forward. FORBES® World’s Best Employers Through extensive, new recruiting and hiring efforts, we are committed to attracting, hiring and retaining future Human Rights Campaign Foundation’s generations of diverse and talented employees. In 2017, we CORPORATE EQUALITY INDEX® achieved a 100-percent score on the Human Rights Campaign Foundation’s Corporate Equality Index and were recognized by THE WALL STREET JOURNAL® Forbes Magazine on its list of “World’s Best Employers.” Management Top 250 We firmly believe that our company and communities benefit when we provide equal opportunities for diverse suppliers to #1 on Coatings World’s compete for our business. So through a variety of supplier- Top 100 Companies list diversity programs, we seek out small businesses and businesses owned by veterans, minorities