SHW_4Q_YE_2008

Christopher M. Connor Robert J. Wells
Chairman & CEO Senior Vice President,
Corporate Communications
& Public Affairs

Forward-Looking Statements
This presentation today will contain certain “forward-looking statements”, as defined
under U.S. federal securities laws, with respect to sales, earnings and other matters.
These forward-looking statements are based upon management’s current expectations,
estimates, assumptions and beliefs concerning future events and conditions. Forward-
looking statements are necessarily subject to risks, uncertainties and other factors,
many of which are outside the control of the Company, that could cause actual results
to differ materially from such statements and from the Company’s 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 the Company’s relationships with customers
and suppliers; changes in raw material availability and pricing; unusual weather
conditions; and other risks, uncertainties and other factors described from time to time
in the Company’s reports filed with the Securities and Exchange Commission. 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 the Company undertakes no obligation to update or revise any forward-
looking statement, whether as a result of new information, future events or otherwise.

The Sherwin-Williams Company – 4th Quarter / YE 2008

Discussion Outline

• Coatings Market Overview
• Sherwin-Williams Overview
• Sherwin-Williams Investment Rationale
– Diversified Customer Base
– Controlled Distribution
– Channel/Brand Strategy
– Leading Technology
– People Development & Retention
– Growth from Acquisitions
– Financial Strength


Coatings Industry
Global Demand (US$)
2008
Europe
6.9 Billion Gallons (-5.5%)
Asia Pacific 31% 89 Billion Dollars (-3.9%)
35%

Latin Other
America 6%
Canada
5% United States
3% 20%

Source: International Paint & Printing Ink Council, Orr & Boss, December 2008, Company Data


Coatings Industry
Top Manufacturers - 2007

United States
Worldwide

1 Akzo Nobel/ICI 1 Sherwin-Williams
2 PPG/SigmaKalon 2 PPG
3 Sherwin-Williams 3 Valspar
4 Dupont 4 Masco
5 Valspar 5 ICI
6 RPM 6 DuPont
7 BASF 7 RPM
8 Kansai 8 Comex
9 Nippon 9 Akzo Nobel
10 Sika 10 Benjamin Moore
Source: Paint & Coatings Industry
Source: Coatings World


U.S. Coatings Industry
Sales ($) Mix by Category

2008
1.20 Billion Gallons (- 9%)
Special
18.48 Billion Dollars (- 4%)
Purpose
Architectural 31%
Coatings
45%
OEM
Finishes
24%

Source: Est. based on 3Q U.S. Department of Commerce data; Segment Percents Based on Dollars


U.S. Construction Market
Annual Growth Rates by Market (sq. ft.)
30%
20%
10%
% Increase/Decrease

0%
-10%
-20%
-30%
-40%
-50%
-60%
-70%
2004
2003 2005 2006 2007 2008 Jan. 2009

Residential Commercial/Ind. Institutional

Source: DODGE Construction Potentials Bulletin – December 2008 & January 2009


U.S. Existing Home Sales
Seasonally Adjusted
8,000 30%

7,000

Percentage change over Previous Year
20%

Percentage Change Over previous year
Sales in Thousands of Units

6,000
Sales in thousands of units

10%
5,000

4,000 0%

3,000
-10%

2,000

-20%
1,000

0 -30%
. Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08

EH Sales % Change in sales over previous year
Source: National Association of Realtors


U.S. Architectural Coatings
Gallons in Millions

DIY
DIY
PC 39%
PC
51% DIY
49% 61%
42%
PC
58%

1987 2007
527 Million Gallons 756 Million Gallons
1997
647 Million Gallons

Source: U.S. Dept of Commerce MA28F Report/Internal Estimates


DIY Channel Share, U.S.
Most Recent Purchase by Store Type

2007
Home Center
Mass
Lumber
Merchants
Building
16%
Materials
60%

Paint
Stores
Hardware Stores
19%
5%

Source: Proprietary Paint Industry Data, S-W Marketing


Contractor Channel Share, U.S.
Primary Outlet by Store Type

2007
Paint Hardware
Stores Stores
92.3% 0.6%

Home
Centers
2.4%

Discount /
Other
4.7%

Source: National Marketing Measures: 2007


Company Overview
Financial Highlights

2008 2007
Net Sales $7.980M $8.005M
EBITDA $946M $1,148M
Income $477M $616M
% Sales 6.0% 7.7%
Earnings Per Share $4.00 $4.70
Net Operating Cash $876M $875M
Dividend Per Share $1.40 $1.26
Return on Assets 10.8% 12.7%


Company Overview
Revenue & Profit by Segment - 2008

Consumer

Sales: $1.27 Billion
Profit: $140.2 Million
Paint Stores Profit %: 11.0
Global
Profit %: 13.4
Profit %: 8.2

Controlled Distribution Accounts for 75% of Sales


Diversified Customer Base
Residential-Commercial-Industrial

Special Purpose Coatings
Architectural Coatings OEM Finishes
• Residential DIY • Kitchen Cabinets
• Industrial Maintenance
• Residential Repaint (Pro) • Residential Furniture
• Traffic Marking
• New Residential • Office Furniture
• Automotive Refinish
• New Commercial &
• Wood Building Products
• Marine
Institutional
• Metal Building Products
• Aerosol Paints
• Property Maintenance
• Miscellaneous
• Architects & Designers • Heavy Equipment
• Electronics
• Military


Controlled Distribution
Competitive Advantages

• Direct Relationship with
Customer / End-User
• Control Over Brands, Pricing,
Inventory, Staffing
• Control Pace and Place of
Growth


Top 10 Paint Store Chains – North America

2008 Est. 2002 Est.
3,346 2,643

ICI/Glidden 579 718
PPG 409 250
Comex/Pro Paint, Inc. 319 308
Kelly-Moore 165 160
1,872 1,807
Dunn Edwards 103 71
Cloverdale/Rodda 102 101
Diamond Vogel 79 85
Benjamin Moore 70 68
Vista 46 46

Gap: +1,474 +836

Source: Independent Research, Company Websites, Rauch Guide, Chain Store Guide


Global Group

• Company-Operated Branches
for Architectural, Automotive
and OEM Finishes
• Added 22 Net New Locations
in 2008 for a Total of 541
Branches


Channel-Brand Strategy
Leading Brands by Category and Channel
PAINT STORES GROUP CONSUMER GROUP
Paint Dealer/ Mass Merchant/
Sherwin-Williams
Specialty
Hardware Department
Paint Store

Paint

Aerosols

Wood Care

Applicators


Leading Technology
Total Technical Expenditures
101.0 102.0 106.0
110
95.4
91.3
86.2 88.7 88.3
100
83.6
78.2
90
73.4
80
62.6
$ Millions

70
60
50
40
30
20
10
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
% of
1.3 1.3 1.5 1.6 1.6 1.7 1.7 1.6 1.5 1.3 1.3 1.3
Sales


Leading Technology
New Product Development

• Productivity Enhancing

• Sustainability

• Color Technology

• Safety and Security


People Development & Retention
Recognized Employer of Choice

The Princeton
Review
“Best Entry Level
Jobs”
2005 - 2008
FORTUNE
BusinessWeek
“100 Best Companies
“100 Best Places to
to Work For”
Launch A Career”
2007 & 2008 2005, 2006 & 2008


Successful Recruiting Effort

New MTP Hires in 2008:
• Paint Stores Group 568
• Automotive Finishes 80
• Chemical Coatings 20

Total 668


Voluntary Turnover

Manager 4.4%
Assistant Mgr. 9.3%
Sales Rep 6.9%


Growth by Acquisition

• Completed 12 Transactions in the Last 24 Months for a Total Investment
of $342 Million Generating Over $338 Million in Sales


Consolidated Gross Profit

$ Gross Profit 3598 3,499
3,700 3,413
% to Sales
3,080
3,200
2,701
2,455
2,700
2,249 2,308 2,220 2,339
2,097 2,130
$ Millions

2,200
45.4
1,700 45.1 44.9
44.9 44.2
44.3 43.7
43.8 43.8
43.2
43.0 42.8
1,200

700

200
-300
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008


Selling, General & Admin Expense

$ SG&A
3,000
2,644
2,597
% to Sales 2,513
2,326
2,500
2,069
1,882
1,785
2,000
$ Millions

1,500
34.8
34.4 33.8 33.1
32.4
32.2
32.4
1,000

500

0
2002 2003 2004 2005 2006 2007 2008


Working Capital Ratio
(Accounts Receivable + Inventory – Payables)/Sales

20%
16.3%

13.8% 13.8%
15% 12.7%
12.5%
11.7%
11.5% 11.0% 11.2%

10%

5%

0%
2000 2001 2002 2003 2004 2005 2006 2007 2008


Net Operating Cash

900
Uses of Cash
874.8 876.2
800 815.8
• Acquisitions
700 716.7
($ in Millions)

600 • Capital Expenditures
544.7
500 593.9
• Buy Back Stock
546.6
400 460.0 460.0
• Manage Debt
300 340.9
• Pay Dividends
200
100
0
2004 2005 2006 2007 2008

Net Operating Cash less Cap. Ex. & Dividends
Net Operating Cash


Stock Repurchase
13.20
14.00

12.00
Millions of Shares

10.00
8.10
7.98
7.25
8.00 6.70
6.70 6.60
5.60
6.00

4.00

2.00

0.00
2001 2002 2003 2004 2005 2006 2007 2008
Avg. Common
Shares Outstanding 156.9 152.4 147.0 144.7 141.1 137.3 130.9 116.8
(fully diluted / in millions)


Total Debt : EBITDA Ratio

1500
84%
83%
88%
99%
73% 1148
($ in Millions)

1047
1000 745 946
965
848
875 834
738
500 621

0
2004 2005 2006 2007 2008

Total Debt EBITDA


Dividends Per Share
1979 – 2009E

1.40 1.42
$1.50
$1.40
1.26
$1.30
$1.20
$1.10 1.00
$1.00
.82
$0.90
$0.80 .68
.60.62
$0.70 .54 .58
.48
$0.60
.40.45
$0.50
.32.35
$0.40 .25 .28
.18 .19 .21 .22
$0.30
.12 .13 .14 .16
$0.20 .08 .10
.04 .05 .06
$0.10 .01
$0.00
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2008E

Summary
• Sherwin-Williams Investment Rationale
– Diversified Customer Base
– Controlled Distribution
– Channel/Brand Strategy
– Leading Technology
– People Development & Retention
– Growth from Acquisitions
– Financial Strength


SHW_4Q_YE_2008

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