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2007 Annual Report
2007 Report Cover
Growing Green
11-Year Financial Highlights
Solid Financial Performance
Growth Opportunities
Contents
Letter from the CEO
What's New
Letters to the Editor
Acquisition News Briefs
Q & A with the CEO
Building a Balanced and Diversified Portfolio
Leveraging Efficiencies for Growth
Industrial Segment
Consumer Segment
Strong Values and Service
Management's Discussion and Analysis
Financial Statements
Notes to Financial Statements
Quarterly Stock Prices and Dividend Information
Management Report on Internal Control
Auditor's Report
Stockholder Information
Subsidiaries
Directors and Officers
Raising the Flag in World Markets
  

* Excluding asbestos charges of $140.0 million ($87.5 million after-tax) in 2003, $78.0 million ($49.5 million after-tax) in 2005 and $380.0 million ($244.3 million after-tax) in 2006. Excluding asbestos-related insurance settlement of $15.0 million ($9.7 million after-tax) in 2007.

Five keys to

Solid Financial

Performance
  1. Create a strong corporate culture. •  “Hire the best people you can find. Create an atmosphere that will keep them. Then let them do their jobs.” This philosophy is central to RPM’s corporate culture. Articulated by founder Frank C. Sullivan 60 years ago, it has stood the test of time. Over the years, it was also applied to the company’s acquisition program. Today, more than one-third of RPM operating companies are still managed by their founder or a member of the founding family.
  2. Embrace the value of 168 •  Another contribution of RPM’s founder was his favorite number, 168, literally the number of hours in a week. It is a reminder that time is precious and once gone, can never be recaptured. It results in RPM employees always giving their best effort, whether at work or with their families or communities.
  3. Build a portfolio balanced between consumer and industrial businesses •  The balance between RPM’s two business segments has been a cornerstone of its sustained growth, with periodic weaknesses in one segment being offset by strengths in the other.
  4. Combine internal growth with acquisitions •  These are the hallmarks of RPM’s growth strategy, a strategy that has created annual revenue increases that are typically more than twice the industry’s growth rate.
  5. Capitalize on emerging opportunities •  Whether it is today’s emphasis on “green,” or the rise of Russia and Eastern Europe, RPM strives to stay “ahead of the curve” on business opportunities by staying close to its customers and then developing new products, providing new services and entering new geographies that meet customer needs.

1Excluding the impact of $15.0 million ($9.7 million after-tax) asbestos-related insurance settlement, income before income taxes would have been $292.5 million; net income, $198.6 million; return on sales, 5.9%; return on stockholders’ equity, 17.7% and diluted earnings per share, $1.57.

2Excluding the impact of the $380.0 million ($244.3 million after-tax) asbestos charges, income before income taxes would have been $257.5 million; net income, $168.1 million; return on sales, 5.6%; return on stockholders’ equity, 14.9% and diluted earnings per share, $1.35.

3Excluding the impact of the $78.0 million ($49.5 million after-tax) asbestos charges, income before income taxes would have been $241.7 million; net income, $154.5 million; return on sales, 6.0%; return on stockholders’ equity, 15.0% and diluted earnings per share, $1.25.

See Note I to the Consolidated Financial Statements for discussion. Management believes that the inclusion of this non-GAAP financial data provides investors with additional insight into pertinent performance measures of the business, and that it should be viewed as supplemental data, rather than as substitutes or alternatives to GAAP measures of performance.

RPM INTERNATIONAL INC.
2628 Pearl Road | P.O. Box 777 | Medina, Ohio 44258
PHONE 330-273-5090 | FAX 330-225-8743 | E-MAIL info@rpminc.com
www.rpminc.com