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EXHIBIT 99.5
RPM, INC. RETIREMENT SAVINGS TRUST AND PLAN
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FINANCIAL STATEMENTS
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MAY 31, 1995
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[LOGO] CIULLA 6364 PEARL ROAD
STEPHENS & CO. CLEVELAND, OHIO 44130
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CERTIFIED PUBLIC ACCOUNTANTS (216) 884-2036
Independent Auditor's Report
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To the Administrator of
the RPM, Inc. Retirement Savings Trust and Plan
We have audited the accompanying statements of net assets available
for benefits of the RPM, Inc. Retirement Savings Trust and Plan, as of May 31,
1995 and May 31, 1994, and the related statement of changes in net assets
available for benefits for the years then ended. These financial statements
are the responsibility of the Plan's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the net assets available for benefits of the
RPM, Inc. Retirement Savings Trust and Plan as of May 31, 1995 and 1994, and
the changes in net assets available for benefits for the years then ended in
conformity with generally accepted accounting principles.
/s/ Ciulla Stephens & Co.
September 5, 1995
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RPM, INC. RETIREMENT SAVINGS TRUST AND PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
MAY 31, 1995
(With Comparative Totals for 1994)
<Caption
401 (K) OPTIONS
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Prism Prism Prism Prism Employer Prism
Money Balanced Stock GNMA Reserve Stock Magic
Market Fund Fund Fund Fund Fund Fund
----------- ----------- ----------- ----------- ----------- ----------- -----------
ASSETS
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Investments at Fair Value $13,684,762 $0 $0 $0 $0 $5,587,061 $4,590,842
Contribution Receivable 87,049 0 0 0 0 44,078 24,302
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total Assets $13,771,811 $0 $0 $0 $0 $5,631,139 $4,615,144
=========== =========== =========== =========== =========== =========== ===========
LIABILITIES
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Excess Contributions Due to
Participants $32,332 $0 $0 $0 $0 $0 $0
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Assets Available for $13,739,479 $0 $0 $0 $0 $5,631,139 $4,615,144
Benefits =========== =========== =========== =========== =========== =========== ===========
401 (K) OPTIONS
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American American Fidelity Fidelity Fidelity Victory Templeton
Government Washington Advisor Income Magellan Contra Special Foreign
Securities Mutual Fund & Growth Fund Fund Fund Growth Fund
----------- ----------- ----------- ----------- ----------- ----------- -----------
ASSETS
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Investments at Fair Value $1,978,289 $4,273,388 $4,722,351 $10,218,466 $5,575,462 $997,066 $5,732,913
Contribution Receivable 16,612 28,712 38,766 70,691 51,556 12,484 54,888
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total Assets $1,994,901 $4,302,100 $4,761,117 $10,289,157 $5,627,018 $1,009,550 $5,787,801
=========== =========== =========== =========== =========== =========== ===========
LIABILITIES
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Excess Contributions Due to
Participants $0 $0 $0 $0 $0 $0 $0
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Assets Available for $1,994,901 $4,302,100 $4,761,117 $10,289,157 $5,627,018 $1,009,550 $5,787,801
Benefits =========== =========== =========== =========== =========== =========== ===========
401 (K) OPTIONS
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Prism
Loan 1995 1994
Fund Total Total
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ASSETS
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Investments at Fair Value $2,321,536 $59,682,136 $31,847,711
Contribution Receivable 0 429,138 275,841
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Total Assets $2,321,536 $60,111,274 $32,123,552
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LIABILITIES
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Excess Contributions Due to
Participants $0 $32,332 $0
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Net Assets Available for $2,321,536 $60,078,942 $32,123,552
Benefits =========== =========== ===========
<FN>
See Notes to Financial Statements.
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RPM, INC. RETIREMENT SAVINGS TRUST AND PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED MAY 31, 1995
(With Comparative Totals for 1994)
401 (K) OPTIONS
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Prism Prism Prism Prism Employer Prism American
Money Balanced Stock GNMA Reserve Stock Magic Government
Market Fund Fund Fund Fund Fund Fund Securities
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ADDITIONS
Investment income
Interest $459,372 $138 $140 $85 $74 $8,665 $1,400 $489
Dividends 0 203,735 115,263 271,620 0 107,712 0 43,184
Contributions
Employees 614,479 531,980 452,843 313,516 291,172 455,972 129,980 90,307
Unrealized appreciation
(depreciation) in aggregate
fair value of investments 0 0 0 0 0 454,106 94,180 77,120
Gain (loss) on sale of assets 0 (125,362) 4,412 (223,118) 109,045 8,246 3,551 452
----------- --------- --------- --------- --------- ---------- ---------- ----------
Total Additions 1,073,851 610,491 572,658 362,103 400,291 1,034,701 229,111 211,552
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DEDUCTIONS
Benefits paid to participants 438,440 449,975 325,385 648,810 466,918 242,595 50,361 0
Administrative expenses 38,398 5,135 (1,720) 1,141 37,991 5,992 7,180 0
----------- --------- --------- --------- --------- ---------- ---------- ----------
Total Deductions 476,838 455,110 323,665 649,951 504,909 248,587 57,541 0
----------- --------- --------- --------- --------- ---------- ---------- ----------
Net Additions 597,013 155,381 248,993 (287,848) (104,618) 786,114 171,570 211,552
Net Assets Available for Benefits
at Beginning of Period 0 8,035,381 5,685,235 6,835,088 7,654,956 3,121,217 0 0
Assets Transferred From
Trustees of Predecessor Plans 14,127,799 0 0 0 0 16,872 7,871 2,624
Transfers Among 401(K) Plans (985,333) (8,190,762) (5,934,228)(6,547,240) (7,550,338) 1,706,936 4,435,703 1,780,725
----------- --------- --------- --------- --------- ---------- ---------- ----------
Net Assets Available for
Benefits at End of Period $13,739,479 $0 $0 $0 $0 $5,631,139 $4,615,144 $1,994,901
=========== ========= ========= ========= ========= ========== ========== ==========
401 (K) OPTIONS
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American Fidelity Fidelity Fidelity Victory Templeton Prism
Washington Advisor Income Magellan Contra Special Foreign Loan
Mutual Fund & Growth Fund Fund Fund Growth Fund Fund
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ADDITIONS
Investment income
Interest $847 $1,815 $5,531 $2,851 $301 $2,027 $85,908
Dividends 27,186 34,270 42,579 0 612 0 0
Contributions
Employees 165,678 210,128 371,501 281,206 66,170 319,092 0
Unrealized appreciation
(depreciation) in aggregate
fair value of investments 493,602 223,812 1,355,449 595,997 73,757 351,751 0
Gain (loss) on sale of assets 5,297 718 54,752 4,914 706 5,875 0
----------- ---------- ----------- ---------- --------- ---------- ----------
Total Additions 692,610 470,743 1,829,812 884,968 141,546 678,745 85,908
----------- ---------- ----------- ---------- --------- ---------- ----------
DEDUCTIONS
Benefits paid to participants 14,464 5,578 11,854 4,642 758 5,939 57,268
Administrative expenses 0 0 0 0 0 0 0
----------- ---------- ----------- ---------- --------- ---------- ----------
Total Deductions 14,464 5,578 11,854 4,642 758 5,939 57,268
----------- ---------- ----------- ---------- --------- ---------- ----------
Net Additions 678,146 465,165 1,817,958 880,326 140,788 672,806 28,640
Net Assets Available for Benefits
at Beginning of Period 0 0 0 0 0 0 791,675
Assets Transferred From
Trustees of Predecessor Plans 2,624 3,936 5,896,567 53,273 0 23,702 1,358,136
Transfers Among 401(K) Plans 3,621,330 4,292,016 2,574,632 4,693,419 868,762 5,091,293 143,085
----------- ---------- ----------- ---------- --------- ---------- ----------
Net Assets Available for
Benefits at End of Period $4,302,100 $4,761,117 $10,289,157 $5,627,018 $1,009,550 $5,787,801 $2,321,536
=========== ========== =========== ========== ========= ========== ==========
401 (K) OPTIONS
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1995 1994
Total Total
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ADDITIONS
Investment income
Interest $569,643 $480,521
Dividends 846,161 67,986
Contributions
Employees 4,294,024 3,414,653
Unrealized appreciation
(depreciation) in aggregate
fair value of investments 3,719,774 (623,095)
Gain (loss) on sale of assets (150,512) 561,181
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Total Additions 9,279,090 3,901,246
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DEDUCTIONS
Benefits paid to participants 2,722,987 2,693,969
Administrative expenses 94,117 166,644
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Total Deductions 2,817,104 2,860,613
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Net Additions 6,461,986 1,040,633
Net Assets Available for Benefits
at Beginning of Period 32,123,552 3,217,963
Assets Transferred From
Trustees of Predecessor Plans 21,493,404 27,864,956
Transfers Among 401(K) Plans 0 0
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Net Assets Available for Benefits
at End of Period $60,078,942 $32,123,552
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<FN>
See Notes to Financial Statements.
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RPM, INC. RETIREMENT SAVINGS TRUST AND PLAN
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ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
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MAY 31, 1995
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FEDERAL ID #34-6550851 PLAN 011 Schedule 1
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(a) (b) & (c) (d) (e)
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Current
Identity of Issue & Description Cost Value
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1) Key Corp Money Market Fund $13,684,762 $13,684,762
2) Key Corp Magic Fund 4,496,661 4,590,842
3) American Government Securities Fund 1,901,169 1,978,289
4) American Washington Fund 3,779,783 4,273,388
5) Fidelity Advisor Income and Growth Fund 4,498,538 4,722,351
6) Fidelity Magellan 8,986,693 10,218,466
7) Fidelity Contra Fund 4,979,465 5,575,462
8) Victory Special Growth Fund 923,309 997,066
9) Templeton Foreign Fund 5,381,161 5,732,913
10) Employer Stock Fund 4,562,709 5,587,061
11) Loan Fund (5.32% to 10.50%) 2,321,536
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RPM, INC. RETIREMENT SAVINGS TRUST AND PLAN
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ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
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MAY 31, 1995
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FEDERAL ID # 34-6550857 PLAN 011 Schedule 2
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(h)
Current
(c) (d) Value At (i)
(a) & (b) Purchase Selling Transaction Net Gain
Identity of Party Involved Price Price Date Or (Loss)
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Series Transactions:
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American Funds Income Ser. U.S. Gov't.
Guaranteed Securities Fund $ 1,934,300 $ 1,934,300
Employee Benefits Money Market Fund 64,032,712 64,032,712
Employee Benefits Money Market Fund 50,426,285 $50,426,285 50,426,285 $ -
Employee Benefits Reserve Fund 7,316,594 8,251,754 8,251,754 935,160
Fidelity Advisor Income & Growth Fund 4,539,267 4,539,267
Fidelity Contra Fund Common 5,043,391 5,043,391
Fidelity Magellan Fund Common 3,938,956 3,938,956
RPM, Inc. Ohio Common 2,287,796 2,287,796
Society National Bank EB Magic Fund 4,730,711 4,730,711
Templeton Foreign Fund Common 5,596,340 5,596,340
Victory Balanced Fund - The Society
Balanced Fund Discretionary 9,180,630 8,768,858 8,768,858 (411,772)
Victory Government Mortgage Fund - The
Society US Government Income Fund
Discretionary Portfolio 7,900,500 7,250,942 7,250,942 (649,558)
Victory Stock Index Fund - The Society
Stock Index Fund Discretionary 6,484,124 6,427,656 6,427,656 ( 56,468)
Washington Mutual Investors Fund Inc.
Common 3,846,821 3,846,821
Individual Transactions:
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None
The above transactions were carried out by the trustee, Society National Bank.
No expenses were incurred as a result of these transactions.
See Accountant's Report.
See notes to financial statements.
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RPM, INC. RETIREMENT SAVINGS TRUST AND PLAN
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NOTES TO FINANCIAL STATEMENTS
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MAY 31, 1995 AND 1994
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NOTE A - SIGNIFICANT ACCOUNTING POLICIES
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The assets of the Plan, as reflected in the accompanying statements,
are stated at current market value as of the statement date. The Plan
has no investments in assets not having a readily determinable market
value.
NOTE B - DESCRIPTION OF THE PLAN
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The Plan is a defined contribution savings plan covering substantially
all non-union employees of participating subsidiaries of RPM, Inc.
(the Parent). The Plan is subject to the Employee Retirement Income
Security Act of 1974 (ERISA).
Participating employees may make voluntary contributions which are
generally limited to 15% of the participant's salary up to a maximum
amount ($9,240 in calendar year 1994). The contributions may be
invested by the employee in any of ten funds: Vesting is immediate
for contributions and earnings.
Further information may be obtained from the Plan Administrator.
NOTE C - INVESTMENTS
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The Plan's investments are held by a bank-administered trust fund.
Financial information regarding the assets and related income,
contributions and distributions of assets held by the
bank-administered trust fund is included in the financial statements.
NOTE D - ASSETS TRANSFERRED FROM OTHER PLANS
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During the year the Plan received transfers of approximately
$21,000,000 of assets from trustees of RPM Inc. subsidiaries'
predecessor plans.
NOTE E - INCOME TAX STATUS
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The Plan obtained its latest determination letter on June 27, 1995, in
which the Internal Revenue Service stated that the Plan, as then
designed, was in compliance with the applicable requirements of the
Internal Revenue Code. The Plan has been amended since receiving the
determination letter. However, the Plan administrator and the Plan's
tax counsel believe that the Plan is currently designed and being
operated in compliance with the applicable requirements of the
Internal Revenue Code. Therefore, they believe that the Plan was
qualified and the related trust was tax-exempt as of the financial
statement date.