RPM International 8K RPM Reports Fiscal 2016 First-quarter Results | RPM 7 Oct 15

8/10/2015

RPM INTERNATIONAL INC.

8/10/2015

Investor Relations Presentation

October 7, 2015

Exhibit 99.2

8/10/2015

RPM INTERNATIONAL INC.

Forward-Looking Statements & Regulation G

This presentation contains “Forward-Looking Statements” as defined in the Private Securities

Litigation Reform Act of 1995. Actual results may differ materially from expectations and are

subject to certain risks and uncertainties such as those described in RPM’s periodic reports and

statements filed with the Securities and Exchange Commission and available through the

company’s

website,

www.rpminc.com.

The

company

does

not

intend

update

any

forward-

looking statements made in this presentation.

This

presentation

includes

certain

company

data

that

not

directly

conform

generally

accepted

accounting

principles,

GAAP,

and

certain

company

data

that

has

been

restated

for

improved

clarity,

understanding

and

comparability,

pro

forma.

All

non-GAAP

data

this

presentation

are

indicated

footnote.

Tables

reconciling

such

data

with

GAAP

measures

are

available

through

our

website,

www.rpminc.com

under

Investor

Information/Presentations.

8/10/2015

RPM INTERNATIONAL INC.

Industrial Segment

(67%)

Consumer Segment

(33%)

$4.6 billion

5/31/15

Entrepreneurial Operating Philosophy

Competitive Advantage of Leading Brands

Balance Between Consumer and Industrial Businesses

Growth Strategy Balanced Between Internal Investment and Acquisitions

8/10/2015

RPM INTERNATIONAL INC.

Industrial Segment

(53%)

Consumer Segment

(32%)

As of August 31, 2015

Entrepreneurial Operating Philosophy

Competitive Advantage of Leading Brands

Balance Between Consumer and Industrial Businesses

Growth Strategy Balanced Between Internal Investment and Acquisitions

Specialty Segment

(15%)

Fiscal 2016 First-Quarter Results

($ in millions, except per share amounts)

Three Months

Ended Aug. 31,

Consolidated

2015

2014

Sales

$1,242

$1,203

+3.2%

EBIT

$161

$164

(1.9)%

Net

Income

$100

$99

+0.7%

Diluted EPS

$0.74

$0.73

+1.4%

Three Months

Ended Aug. 31,

Consumer

2015

2014

Sales

$396

$430

(8.0)%

EBIT

$66

$77

(13.8)%

Three Months

Ended Aug. 31,

Specialty

2015

2014

Sales

$184

$80

+130.7%

EBIT

$28

$17

+64.7%

Three Months

Ended Aug. 31,

Industrial

2015

2014

Sales

$663

$694

(4.5)%

EBIT

$84

$88

(4.4)%

8/10/2015

RPM INTERNATIONAL INC.

8/10/2015

RPM INTERNATIONAL INC.

North America

YTD +7%

Europe

YTD

-6%

Sales Growth by Region

August YTD FY16 vs FY15 -

Actual

Total

$1,242 million

YTD

+3%

South/Latin

America

YTD

-14%

Africa/

Middle East

YTD

+3%

Asia/Pacific

YTD +15%

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RPM INTERNATIONAL INC.

North America

YTD +9%

Europe

YTD

+10%

Sales Growth by Region

August YTD FY16 vs FY15 -

at FY15 FX Rates

Total

$1,326 million

YTD

+10%

South/Latin

America

YTD

+15%

Africa/

Middle East

YTD

+14%

Asia/Pacific

YTD +36%

RPM INTERNATIONAL INC.

8/10/2015

Capital Allocation: Fiscal 2006-2015

Acquisitions

Dividends

Capex

Asbestos

TOTAL

$1,226,622

$1,054,367

$673,215

$575,096

$3,529,300

Dividends

30%

Capex

19%

Asbestos

16%

Acquisitions

35%

8/10/2015

RPM INTERNATIONAL INC.

Fiscal 2016 & Beyond: Competing & Winning in the Market by

Accelerating Growth Investments

CapEx

increase from $85 million to

$120 million; large investments

Replicate successful Brazilian

strategy in Malaysia

Increase consumer advertising

to expand market share

AlphaGuard

U.S. bottling

and

UK expansion

Tuf-Strand

macro fibers

Construction

chemicals

Brazilian

platform for Euclid,

Tremco, Flowcrete

and Carboline

Tremco

Roofing

Kirker

Euclid

Euclid Latin Am.

Viapol

8/10/2015

RPM INTERNATIONAL INC.

Growth Strategy

Acquisitions • International Expansion • Product Innovation

8/10/2015

RPM INTERNATIONAL INC.

Acquisition Strategy

“The Best Home for

Entrepreneurial Companies”

Key requirements:

Acquisition Focus:

Key Takeaways:

•

Niche market leaders

•

Strong GP margins

•

Retain entrepreneurial

management team

•

Geographic expansion

•

New markets

•

New products

•

150+ acquisitions

•

Few divestitures

•

Less than 1% impairment

charge in history of RPM

8/10/2015

RPM INTERNATIONAL INC.

International Expansion: 2005 vs. 2015

North America

2005

2015

$2,202

$3,195

86%

70%

Asia/Pacific

2005

2015

$27

$121

1.0%

2.6%

Europe

2005

2015

$251

$942

10%

20%

South/Latin America

2005

2015

$42

$251

1.7%

5.5%

TOTAL

2005

2015

$2,556

$4,595

Africa/Middle East

2005

2015

$34

$86

1.3%

1.9%

Dollars in millions

8/10/2015

RPM INTERNATIONAL INC.

Connections Creating Value:

Model for Success in Developing World

•

Acquire platform company

•

Great management team

•

Market leader

•

Potential for rapid expansion

•

Established base

of shared:

•

Manufacturing

•

Distribution

•

Technology

FY 15

FY 16

More to

Come

FY 13

FY 15

FY 14

FY 15

8/10/2015

RPM INTERNATIONAL INC.

Connections Creating Value:

Leveraging Shared Technologies

8/10/2015

RPM INTERNATIONAL INC.

8/10/2015

RPM INTERNATIONAL INC.

New Product Innovations

AlphaGuard

RoofTec

8/10/2015

RPM INTERNATIONAL INC.

Consistent Financial Performance

Balanced Business = Steady Growth

Consolidated

2011

2012

2013

2014

2015

Sales

+8.5%

+11.7%

+8.1%

+7.2%

+5.0%

Net

Income

+16.1%

+11.5%

+14.5%

+20.9%

+10.7%

Note: Specialty Products Holding Corp. (SPHC) was deconsolidated on May 31, 2010 and reconsolidated on Jan. 1, 2015.

Net income and EBIT exclude one-time adjustments taken in FY2012, FY2013 and FY2015.

Consumer

2011

2012

2013

2014

2015

Sales

+3.4%

+10.7%

+16.1%

+11.4%

(0.2)%

EBIT

(0.9%)

+9.7%

+31.2%

+19.5%

+9.1%

Industrial

2011

2012

2013

2014

2015

Sales

+11.3%

+12.2%

+4.1%

+5.0%

+8.0%

EBIT

+15.4%

+17.5%

(0.7%)

+11.1%

+5.6%

8/10/2015

RPM INTERNATIONAL INC.

8/10/2015

RPM INTERNATIONAL INC.

Consistent Financial Performance:

30-Year Growth Profile

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

Sales

$50

$100

$150

$200

$250

$300

$350

Net Income

10.6%

30-yr. CAGR

11.9%

30-yr. CAGR

Note: Specialty Products Holding Corp. (SPHC) was deconsolidated on May 31, 2010 and reconsolidated on Jan. 1, 2015

Note: Net income excludes one-time adjustments taken in FY2013 and 2015, and asbestos charges taken from FY2003-FY2008

8/10/2015

RPM INTERNATIONAL INC.

41 Consecutive Years of Dividend Increases

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

$1.10

'73

'75

'77

'79

'81

'83

'85

'87

'89

'91

'93

'95

'97

'99

'01

'03

'05

'07

'09

'11

'13

Dividend per share

Acquired

Yield

Original

Investment

Today

2.4%

yrs.

5.8%

25 yrs.

13.6%

$1.8 billion

Paid

+ 8.3%

10/9/14

•

Only 45

of all 19,000 U.S. publicly traded companies have an equal or better record

•

The compounding benefit of reinvesting a growing cash dividend first envisioned by a

$25 mm company in 1973 continues today in a $4.6 bb company paying out

+$135 mm per year

8/10/2015

RPM INTERNATIONAL INC.

Consistent Financial Performance:

Superior Shareholder Return

5/05

5/06

5/07

5/08

5/09

5/10

5/11

5/12

5/13

5/14

5/15

RPM International, Inc.

100.00

109.55

138.24

154.37

101.69

137.38

169.51

197.28

255.99

341.02

405.16

S&P 500

100.00

108.64

133.40

124.47

83.93

101.54

127.90

127.37

162.11

195.25

218.31

Peer Group

100.00

113.38

145.66

130.48

88.57

118.63

156.37

162.32

243.22

288.93

346.07

Ten-year comparison based on $100 invested on 5/31/05 in stock or index

—

including reinvestment of dividends. Fiscal year ending May 31.

(Peer

Group

includes

Akzo

Nobel

N.V.,

Ferro

Corporation,

H.B.

Fuller

Company, Masco Corporation, PPG Industries, Inc., The Sherwin-Williams

Company and The Valspar Corporation.)

Comparison of Cumulative Total Return

Among RPM International Inc.,

the S&P 500 Index and a Peer Group

Outperform:

S&P 500

by 86%

Peers

by 17%

8/10/2015

RPM INTERNATIONAL INC.

Good Value

in a Great Company

“Hire the best people you can find.

Create an atmosphere

that will keep them.

Then let them do their jobs.”

Frank C. Sullivan, 1947

RPM International (RPM) 8-KRPM Reports Fiscal 2016 First-quarter Results