ANNUAL MEETING OF STOCKHOLDERS - RPM INTERNATIONAL INC

Explicit Guidance:

• Full-year 2027 fiscal year (ending May 31, 2027): Management forecasts "another record year in sales and earnings," though no specific numerical ranges for revenue, EPS, or margins are provided in the transcript.
• Operating improvement programs (SG&A focused): Targeting $75 million in cost improvements for the 2027 fiscal year.
• Greenbelt program pipeline: Additional $25 million in cost savings identified in the pipeline for future realization.
• Dividend increase: Board approved a 5.6% increase to $2.28 per share annually ($0.57 per quarter), effective immediately for future quarters.

Business-Segment Outlook:

• Geographic Expansion (Southern Hemisphere): Sales in developing southern hemisphere markets (currently ~8% of total) are expected to continue their "dramatic growth" trajectory, up from <5% a few years ago.
• North America (Roofing): Acquisition of Calzip (German specialty aluminum/metal roofing) will be additive to the existing $40M/year Tremco roofing business in North America; technology transfer to the US is underway.
• North America (Wood Stains): Ready Seal (acquired by Rust-Oleum) is projected to continue expanding its presence and distribution across North America.
• Construction/Industrial (Data Centers): Through Euclid Chemical, Tremco, Carbline, and Stoneheart, the company is on target to generate over $100 million in annualized revenue from data center products; this sector is anticipated to be a "growth area for the coming years."
• Europe & US (Waterproofing): Acquisition of Volteco (Italy-based) is expected to double in size through continued European growth and expansion of below-grade waterproofing systems into US construction markets via Tremco.

Market and Competitive Outlook:

• Market Volatility: Acknowledges that "volatile times" may impact future performance, citing difficulty in outperforming the broader S&P 500 market recently due to AI/technology sector concentration.
• Product Innovation: Focus on architecturally stunning and unique product lines (e.g., Calzip roof lines, Volteco below-grade systems) to maintain competitive advantage in specialized construction niches.
• Distribution: Continued expansion of distribution networks for wood stains and protective products in North America.

Macro / Industry Outlook:

• Global Economy/Construction: Outlook tied to continued global investment in infrastructure and building construction, specifically noting "buildings that continue to be invested in" and the rise in data center construction worldwide.
• Industrial Manufacturing: Anticipation of sustained demand for products that protect, beautify, and repair structures and buildings.

Strategic Initiatives:

• M&A Integration:
  • Calzip (Germany): Completed acquisition to complement US roofing portfolio; technology transfer ongoing.
  • Volteco (Italy): Strategic acquisition to bring unique below-grade systems to the US market; integration and growth target is to "double the size of that business."
• Capacity Additions:
  • New manufacturing facility opening in Mumbai, India (current year).
  • Previous opening of facility in Malaysia (past year) sets precedent for expansion in Asian markets.
• Operational Excellence:
  • Expansion of operating improvement initiatives (SG&A and Greenbelt) across "other functional areas" beyond the current focus.
  • Continued "simplifying of product lines and reviewing of portfolios" to optimize results.
  • Upcoming Investor Day scheduled for November 9 in Maple Shade, NJ, to present a long-term strategic plan out to 2030.
• Capital Allocation: 53rd consecutive year of dividend increases; commitment to share repurchases and dividend growth as part of the "Value 168" strategy.

Risks and Headwinds to Outlook:

• Market Volatility: "Volatile times" and market fluctuations may cause deviations from the forward outlook.
• Concentrated Market Rises: Recent outperformance difficulty noted where S&P 500 gains were driven by specific sectors (AI/Tech), suggesting potential correlation risks or relative underperformance in the short term.
• Execution Risk: Implicit risk regarding the successful integration of new acquisitions (Calzip, Volteco) and the delivery of $75M SG&A and $25M Greenbelt cost savings.

Management Tone on the Future:

• Confidence: High confidence in achieving "record" 2027 results, driven by a workforce of "more than 17,000 associates."
• Commitment: Strong emphasis on long-term shareholder value, highlighted by 53 consecutive years of dividend increases and a track record of outperforming peers in coatings and construction chemicals.
• Strategic Focus: Tone is entrepreneurial and aggressive on growth ("huge opportunity," "dramatic growth," "exciting acquisition"), balanced with a focus on efficiency and operational excellence.

Miscellaneous:

• Board Governance: Election of 12 directors for one-year terms expiring at the 2027 Annual Meeting; approval of audit committee appointment of Deloitte & Touche LLP for fiscal year 2027.
• Corporate Values: Reiteration of "Value 168" (transparency, trust, respect) and the mission to "build a better world" as a driver for future strategy.
• Employee Benefits: Continued maintenance of an active pension plan for U.S. frontline workers, projecting 85–115% pre-retirement income replacement for 30-year retirees.