GCP Applied Technologies Q4 2016 Investor Highlights March 2, 2017 - PowerPoint PPT Presentation

GCP Applied Technologies Q4 2016 Investor Highlights March 2, 2017

Forw ard Looking Statements This document contains, and our other public communications may contain, forward-looking statements, that is, information related to future, not past, events. Such statements generally include the words "believes," "plans," "intends," "targets," "will," "expects," "suggests," "anticipates," "outlook," "continues" or similar expressions. Forward-looking statements include, without limitation, statements about the proposed transaction and the anticipated timing thereof; expected financial positions; results of operations; cash flows; financing plans; business strategy; operating plans; capital and other expenditures; competitive positions; growth opportunities for existing products; benefits from new technology and cost reduction initiatives, plans and objectives; and markets for securities. Like other businesses, we are subject to risks and uncertainties that could cause our actual results to differ materially from our projections or that could cause other forward-looking statements to prove incorrect. Factors that could cause actual events to materially differ from those contained in the forward-looking statements include, without limitation: the possibility that the transaction will not be completed, or if completed, not completed in the expected timeframe, and the potential that the expected strategic benefits or opportunities from the transaction may not be realized, or may take longer to realize than expected; risks related to foreign operations, especially in emerging regions; the cost and availability of raw materials and energy; the effectiveness of GCP's research and development and growth investments; acquisitions and divestitures of assets and gains and losses from dispositions; developments affecting GCP’s outstanding indebtedness; developments affecting GCP's funded and unfunded pension obligations; GCP's legal and environmental proceedings; uncertainties related to the Company’s ability to realize the anticipated benefits of the spin-off / separation from W.R. Grace; the inability to establish or maintain certain business relationships and relationships with customers and suppliers or the inability to retain key personnel; costs of compliance with environmental regulation and those factors set forth in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which have been filed with the Securities and Exchange Commission ("SEC") and are available on the Internet at www.sec.gov. Our reported results should not be considered as an indication of our future performance. Readers are cautioned not to place undue reliance on our projections and forward-looking statements, which speak only as of the date thereof. We undertake no obligation to publicly release any revisions to the projections and forward- looking statements contained in this document, or to update them to reflect events or circumstances occurring after the date of this document. Non-GAAP Financial Measures These slides contain certain “non-GAAP financial measures”. Please refer to the Appendix for definition of the non-GAAP financial measures used herein and a reconciliation of those non-GAAP financial measures to their most comparable GAAP measures. 2

Participants Greg Poling President and Chief Executive Officer Dean Freeman Vice President and Chief Financial Officer 3

Full Year and Fourth Quarter 2016 Results  2016 Net sales down 4.4% Y/Y to $1,356M, up 2.3% Y/Y ex-FX to $1,379M (1) − 4Q16 Net sales flat at $332.9M and flat ex-FX at $331.3M (1,2)  Construction businesses sales (1,2) up 2.7% in 2016 and 0.5% in 4Q16  Darex sales (1,2) up 0.9% in 2016, down 0.7% in 4Q16  Adjusted EBIT (1,3) up 6.9% in 2016 to $211.1M, down 7.6% to $46.5M in 4Q16 − Construction businesses Adjusted EBIT (1,3) up 17.4% in 2016 and down 1.2% in 4Q16  2016 Net income of $72.8M, Diluted EPS of $1.02, Adjusted EPS of $1.41 (3) − 4Q16 Net income of $3.4M, Diluted EPS of $0.05, Adjusted EPS of $0.29 (3)  2016 Cash from operating activities of $127.9M; Adjusted FCF (3) of $114.3M (1) Excludes the impact of Venezuela. (2) In constant currency. (3) Refer to Appendix for reconciliations between GAAP and non-GAAP measures. 4

2016 Financial Summary $ in millions. Net Sales As Reported Ex. Venezuela $1,418.6 $1,378.6 $1,355.8 $1,348.1 (1) Adjusted YTD Free Cash Flow +2.3% $126.7 Constant Currency $114.3 2015 2016 2015 2016 (1) Adjusted EBIT $226.7 Ex. Venezuela $213.8 $211.1 $197.4 2015 2016 -20 bps +110 bps 16.0% 15.8% 15.7% 14.6% 2015 2016 2015 2016 (1) Refer to Appendix for reconciliations between GAAP and non-GAAP measures. 5

Specialty Construction Chemicals Markets, sells and manufactures concrete admixtures, cement additives and concrete production management systems $ in millions. • Constant currency sales (1) decrease 3% Y/Y Q4 2016 $/% Delta YOY - Concrete sales increase in North America offset by Net Sales (1) $154.0 (3)% declines in EMEA and Asia Pacific regions - Cement sales grow in EMEA and in Asia Pacific Net Sales (1) (Constant Currency) (2) $155.2 (3)% Adjusted Gross Margin (1)(2) • Adjusted Gross Margin (1,2) increases 280 bps 36.6% 280 bps - Margin expansion reflects price, raw material deflation Adjusted EBIT (1)(2) $17.1 4% and productivity programs partially offset by FX Adjusted EBIT Margin (1)(2) 11.1% 80 bps • Adjusted EBIT (1,2) up 4% Y/Y - Increase largely reflects improvement in Adjusted Gross Margin Factors Impacting Sales (1) (2.7)% 0.3% (0.7)% $159.1 $159.0 $154.0 $154.0 $154.0 Q4 2015 Volume Mix Price Currency Q4 2016 (1) Excludes the impact of Venezuela. 6 (2) Refer to Appendix for reconciliations between GAAP and non-GAAP measures.

Specialty Building Materials Markets, sells and manufactures building envelope, residential and specialty construction products $ in millions. • Constant currency sales (1,2) increase 5% Y/Y Q4 2016 $/% Delta YOY - Building envelope and residential strength in North America Net sales $104.2 4% partially offset by EMEA and Asia Pacific softness Net Sales (Constant Currency) (1) $105.6 5% • Gross margin decreases 100 bps Gross margin 45.1% (100) bps - Favorable price and raw material deflation offset by lower margin mix, FX and impact of Halex acquisition Segment operating income (1) $25.1 (5)% Segment operating margin (1) • Segment operating margin (1) decreases 210 bps 24.1% (210) bps - Margin decline driven by lower margin mix, investments in sales and marketing initiatives and impact of Halex acquisition Factors Impacting Sales (1.4)% 1.7% 3.4% $104.2 $100.5 $98.0 $96.0 $96.0 Q4 2015 Volume Mix Price Currency Q4 2016 (1) Includes the results of Halex Corporation 7 (2) Refer to Appendix for reconciliations between GAAP and non-GAAP measures.

Darex Packaging Technologies Markets, sells and manufactures sealants and coatings for use in beverage and food containers and other consumer and industrial applications $ in millions. • Constant currency sales (1) decrease 1% Y/Y Q4 2016 $/% Delta YOY - Closures growth offset by lower market demand for Net Sales (1) $69.4 (2)% Sealants and Coatings - Solid performance in Latin America and Asia Pacific Net Sales (1) (Constant Currency) (2) $70.5 (1)% - BPA-NI formulations continue to gain acceptance Adjusted Gross Margin (1)(2) 34.6% 50 bps • Adjusted GM (1,2) increased 50 bps due to raw Adjusted EBIT (1)(2) $12.1 (27)% material deflation and productivity programs Adjusted EBIT Margin (1)(2) 17.4% (600) bps • Adjusted EBIT (1,2) decreased 27% due to higher corporate expenses and 4Q15 operating asset sale gain Factors Impacting Sales (1) (0.3)% (0.4)% (1.6)% $71.0 $69.4 Q4 2015 Volume Mix Price Currency Q4 2016 (1) Excludes the impact of Venezuela. 8 (2) Refer to Appendix for reconciliations between GAAP and non-GAAP measures.

Regional Outlook % 2016 Region GCP Sales 2017 Regional Outlook  Expect continued growth across construction segments NA North America 42%  Additional infrastructure stimulus would extend cycle 58% World  Expect moderate growth in Core Europe 24% EMEA EMEA  Middle East dependent on continued infrastructure spending World 76%  Modest growth, particularly in China Asia 24%  Asia Pacific Pacific Growth varies depending on specific country in emerging Asia World 76%  10% Latin Should see growth accelerating in second half of 2017 as lap Latin America America year over year declines in 2016 World 90% 9

2017 Annual Guidance  Revenue growth 4% - 6% (1)  Adjusted EBIT growth 5% - 9%  Tax rate 32% - 33%  Adjusted EPS $1.48 - $1.57 (2)  Adjusted Free Cash Flow ~$100 million (1) 2017 GCP guidance assumes January 2017 FX rates carried forward into the guidance period (2) Assumes 71.7M shares outstanding. 10