SHAREHOLDER RETURN 2004 2002 2001 1997 2000 et : gquard ™Samare. Tin ais VheatersScal FLEX BN Le AN 0 5 10 15 20 25 30 35 2004 2003 2002 2001 2000 29.3 28.0 26.0 33.5 30.9 TOTAL DEBT TO CAPIT ALIZATION (percent) 0 30 60 90 120 150 2004 2003 2002 2001 2000 82.6 126.5 116.5 132.8 106.8 CAPITAL EXPENDITURES (millions of dollars) 0 1 2 3 4 5 6 7 8 2004 2003 2002 2001 2000 6.70 6.70 7.98 6.80 6.60 COMMON STOCK PURCHASE  (millions of shares) 17 DEBT STOCK PURCHASE DIVIDEND GROWTH CAPITAL EXPENDITURES As a result of short-term borrowing to fund acquisitions, our total debt to capitalization rose to 30.9 percent in 2004. At this level, the Company still has ample debt capacity to fund viable acquisitions in the future. Barring any large acquisitions, we will use a portion of our net operating cash to reduce debt and expect our total debt to capitalization to decline to the mid twenty percent range in the coming year. During 2004, we purchased 6.6 million shares of our common stock in the open market for the treasury. As we have done in years past, we intend to continue pur- chasing shares opportunistically on the open market, as we believe Sherwin-Williams stock is a good investment. This practice serves to increase shareholder value by In 2004, we completed our 26th consecutive year of increased cash dividends on common stock paid to our shareholders. It remains our policy to pay 30% of trailing earnings in the form of a cash dividend to shareholders. In short, we reward shareholders of Sherwin-Williams stock by returning to them a portion of the cash we are able to generate. Cash dividend payments in 2004 totaled $96.9 million. Our capital expenditures in 2004 exceeded $100 million dollars and helped us sustain our position of industry and market leadership. We added capacity, improved systems, enhanced productivity and invested in technology.  preventing ownership dilution due to the grant and exercise of stock options.  Selected branded acquisitions 1980-2004