PPG ARCHITECTURAL COATINGS UK LIMITED

All qualifying contracts can be categorised as follows

Raw Material- 90 days from invoice date

Goods For Resale- 45 days from invoice date

Packaging- 90 days from end of month

General Purchasing - 60 days from invoice date

Logistics - 45 days from end of month

Intercompany- 30 days from invoice date

The Company does not currently have in place a system to capture for all invoices the date of receipt of each invoice. As a consequence the Company has decided to use as the start date the date of invoice.

Similarly, the Company’s systems do not have the functionality to identify for all invoices the actual date that the supplier received payment. Also, the Company’s payment systems are set up only to pay invoices on the due date for payment. Accordingly, in its calculation of the time taken to pay each invoice, the Company has added (in accordance with the UK Government’s guidance) the standard time it takes for a payment to clear in the supplier’s bank account (depending on the method of payment).

This approach has no doubt contributed to an artificial inflating of the number of days it takes to pay invoices. Accordingly, this should be borne in mind when reviewing the Company’s responses to 1A, 1B and 1C above.

Regarding the response to question 1C, if the Company was able to re-set the date of payment 3 days earlier than the payment due date (to ensure each supplier received payment of its invoice in cleared funds), then the actual statistic would be reduced to 15% for this reporting period.

The Company is committed to dealing with its suppliers in a fair, honest and professional manner while seeking best value for the business. We seek to resolve queries as quickly as possible to everyone’s satisfaction prior to payment being made. Our suppliers can contact AP department via email: accountspayable.acuk@ppg.com and should receive reply within 2 working days. These contact details can be found on the purchase orders