SHW_JPMorgan_060408

Christopher M. ConnorChairman & CEO

The Sherwin-Williams Company – 1st Quarter 2008

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.


Coatings IndustryGlobal Demand

7.3 Billion Gallons81 Billion Dollars

United States26%

Latin America

11%

Europe32%

Asia Pacific23%

Canada4%

Other4%

Source: U.S. Census Bureau, July 2007/CHEMARK


Coatings IndustryTop Manufacturers

Source: Coatings World

1 Sherwin-Williams2 PPG3 Valspar4 Masco 5 ICI6 DuPont 7 RPM8 Comex 9 Akzo Nobel

10 Benjamin Moore

1 Akzo Nobel/ICI2 PPG/SigmaKalon3 Sherwin-Williams4 Dupont5 Valspar 6 RPM 7 BASF8 Kansai9 Nippon

10 Sika

Worldwide United States

Source: Paint & Coatings Industry


U.S. Coatings IndustrySales ($) Mix by Category

Source: U.S. Department of Commerce; Segment Percents Based on Dollars

ArchitecturalCoatings

48%

Special Purpose

29%

OEM Finishes

23%

20071.28 Billion Gallons

20.07 Billion Dollars


U.S. Architectural CoatingsGallons in Millions

2007 696 Million Gallons

DIY39%PC

61%

1987527 Million Gallons

DIY51%PC

49%

1997647 Million Gallons

DIY42%PC

58%

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


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

Mass Merchants

16%

Paint Stores

19%Hardware Stores

5%

Home Center / Lumber / Building Materials

60%

Source: Proprietary Paint Industry Data, S-W Marketing

2007


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

Source: National Marketing Measures: 2007

Paint Stores92.3%

HomeCenters

2.4%

Discount / Other4.7%

Hardware Stores

0.6%

2007


Company OverviewFinancial Highlights

Net Sales $8.01M $7,810MEBITDA $1,148M $1,050MIncome $616M $576M

% Sales 7.7% 7.4% Earnings Per Share $4.70 $4.19 Net Operating Cash $875M $816MDividend Per Share $1.26 $1.00Return on Assets 12.7% 11.5%

2007 2006


Company OverviewRevenue & Profit by Segment - 2007

Sales: $4.96 BillionProfit: $767 MillionProfit %: 15.5%

Sales: $1.31 BillionProfit: $224.2 MillionProfit %: 17.1%

Sales: $1.73 BillionProfit: $160.7 MillionProfit %: 9.3%

Paint StoresGlobal

Consumer

Controlled Distribution Accounts for 75% of Sales


Competitive Strengths

• Diversified Customer Base• Controlled Distribution• Channel/Brand Strategy• Leading Technology• People Development & Retention• Growth from Acquisitions• Financial Strength


Architectural Coatings

• Residential DIY• Residential Repaint (Pro)• New Residential• New Commercial &

Institutional• Property Maintenance• Architects & Designers

Diversified Customer BaseResidential-Commercial-Industrial

Special Purpose Coatings

• Industrial Maintenance • Traffic Marking• Automotive Refinish• Marine• Aerosol Paints• Miscellaneous Special Purpose

OEM Finishes

• Kitchen Cabinets• Residential Furniture• Office Furniture• Wood Building Products• Metal Building Products• Heavy Equipment• Electronics• Military


3,325 2,643

ICI/Glidden 662 718PPG 450 250Comex/Pro Paint, Inc. 372 308Kelly-Moore 164 160Benjamin Moore 154 68 Cloverdale/Rodda 109 101Dunn Edwards 83 71Diamond Vogel 77 85Vista 46 46

Gap: +1,208 +836

Source: Company Websites, Rauch Guide & Chain Store Guide

Controlled DistributionTop 10 Paint Store Chains – North America

2007 Est. 2002 Est.

2,117 1,807


Paint

Aerosols

Wood Care

Applicators

Channel-Brand Strategy Leading Brands by Category and Channel

Sherwin-Williams Paint Store

Paint Dealer/Hardware

Mass Merchant/Department Specialty

PAINT STORES GROUP CONSUMER GROUP


53.462.6

73.4 78.283.6 86.2 88.7 88.3 91.3 95.4 101.0 102.0

0102030405060708090

100110

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Leading TechnologyTotal Technical Expenditures$

Mill

ions

% of Sales 1.3 1.3 1.5 1.6 1.6 1.7 1.7 1.6 1.5 1.3 1.3 1.3


Leading TechnologyNew Product Development

• Productivity Enhancing

• Sustainability

• Color Technology

• Safety and Security


People Development & RetentionRecognized Employer of Choice

FORTUNE FORTUNE ““100 Best Companies 100 Best Companies

to Work Forto Work For””2005, 2006 & 20082005, 2006 & 2008

The PrincetonThe PrincetonReviewReview

““Best Entry LevelBest Entry LevelJobsJobs””

2005, 2006, 20072005, 2006, 2007& 2008& 2008

BusinessWeekBusinessWeek““100 Best Places to 100 Best Places to Launch A CareerLaunch A Career””

2007 & 20082007 & 2008


Growth by Acquisition

• Completed 7 Transactions in 2007 for a Total Investment of $282 Million Generating Over $258 Million in Sales

• Completed 13 Transactions Over Last Five Years for a Total Investment of $940 Million Generating Over $870 Million in Sales


Profit Before & After Tax

PBT % to Sales 9.7 9.5 9.1 10.7 11.4 PAT % to Sales 6.1 6.4 6.4 7.4 7.7

-5050

150250350450550650750850950

1050

$ M

illio

ns

2003 2004 2005 2006 2007

Profit Before TaxProfit After Tax

580.2

393.3

522.9

332.1

656.2

463.3

834.3

576.1

913.0

616.0


Net Operating Cash

Uses of Cash

• Acquisitions

• Capital Expenditures

• Buy Back Stock

• Manage Debt

• Pay Dividends

0100200300400500600700800900

2003 2004 2005 2006 2007

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

( $ i n

Mil li

ons)

558.9 544.7

716.7

351.7 340.9460.0 460.0

815.8874.8

546.6


Stock Repurchase

6.70 6.707.98

6.608.10

5.60

13.2

4.1

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00M

illio

ns o

f Sha

res

2001 2002 2003 2004 2005 2006 2007 2008Avg. Common Shares Outstanding 156.9 152.4 147.0 144.7 141.1 137.3 130.9 122.1(fully diluted / in millions)

(1Q)


Debt : EBITDA Ratio

678 745848

10471148

514738

621

875965

0

500

1000

1500

2003 2004 2005 2006 2007

Debt EBITDA

($ in

Milli

ons) 76% 99% 73%

83%84%


Dividends Per Share1979 – 2008E

.01 .04 .05 .06 .08 .10 .12.13 .14 .16 .18 .19 .21 .22 .25 .28 .32.35.40.45 .48 .54 .58 .60 .62 .68

.82

1.00

1.261.40

$0.00$0.10$0.20$0.30$0.40$0.50$0.60$0.70$0.80$0.90$1.00$1.10$1.20$1.30$1.40$1.50

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

E

Questions & Answers

Save the Date:Financial Community PresentationCleveland, OhioJune 24, 2008

SHW_JPMorgan_060408

Economy & Finance

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