Slide 1: Q2 2016 Financial Results
A X A LTA C O AT I N G S Y S T E M S Q2 2016 FINANCIAL RESULTS July 26, 2016
Slide 2: Legal Notices
Legal Notices Forward-Looking Statements This presentation and the oral remarks made in connection herewith may contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including those relating to 2016 financial projections, including exec
Slide 3: Q2 2016 Highlights
Q2 2016 Highlights Solid Q2 financial results Solid net sales of $1,065.1 million – volume and price up 4.2% YoY, offset by foreign currency translation impact Net income attributable to Axalta of $48.5 million (Q2 2015 loss of $25.1 million); Adjusted EBITDA of $252.6 million versus $255.5 mi
Slide 4: Q2 Consolidated Results
Q2 Consolidated Results Financial Performance Commentary Q2 % Change Strong net sales performance ($ in millions) 2016 2015 Incl. F/X Excl. F/X Continued net sales growth in North Performance 632 639 (1.0%) 7.8% America and EMEA, while emerging Transportation 433 455 (4.9%) (0.7%) market economies
Slide 5: Q2 Performance Coatings Results
Q2 Performance Coatings Results Financial Performance Commentary Q2 % Change Solid net sales led by Refinish ($ in millions) 2016 2015 Incl. F/X Excl. F/X volumes Refinish 449 460 (2.5%) 9.3% Strong volume growth in Refinish across all Industrial 183 179 2.6% 3.7% regions; Industrial growth driven
Slide 6: Q2 Transportation Coatings Results
Q2 Transportation Coatings Results Financial Performance Commentary Q2 % Change Net sales pressured by Commercial ($ in millions) 2016 2015 Incl. F/X Excl. F/X volumes Light Vehicle 344 347 (0.8%) 1.5% Strong volume growth in North America Commercial Vehicle 89 108 (18.0%) (8.3%) and EMEA Light Ve
Slide 7: Debt and Liquidity Summary
Debt and Liquidity Summary Capitalization Net Leverage ($ in millions) @ 6/30/2016 Maturity Cash and Cash Equivalents $480 5.6x Debt: Revolver ($400 million capacity) - 2018 5.1x First Lien Term Loan (USD) 1,890 2020 5.0x First Lien Term Loan (EUR) (1) 420 2020 Senior Secured Notes (EUR) (1) 271 202
Slide 8: Full Year 2016 Guidance
Full Year 2016 Guidance ($ millions) 2015A 2016E Comments on Drivers Net Sales -6% @ 0% Net sales expected to be essentially flat as- reported based on anticipated currency Net Sales (Excl.-FX) +5% +4-6% headwinds; constant currency net sales expected to benefit from volume growth Adjusted EBITDA
Slide 9: Appendix
Appendix
Slide 10: Key Goals For 2016
Key Goals For 2016 Stated Objective Comments Grow the Business • Flat net sales; growth of 4-6% ex-currency • Expect to outgrow our end-markets Focus on Operating Improvement • New capacity ramps continue, opportunity to refine our operating strengths • Strong global foundation, see opportunity to E
Slide 11: Full Year 2016 Assumptions
Full Year 2016 Assumptions Macroeconomic Assumptions Currency Assumptions Global GDP growth of 2016 Rates Used in Rates Used in % Change approximately 2.5% Currency % Axalta Initial 2016 Current 2016 in F/X Rate Net Sales Guidance Guidance Global industrial production growth of approximately US$
Slide 12: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation LTM ($ in millions) FY 2015 Q1 2015 Q2 2015 Q1 2016 Q2 2016 6/30/2016 Net Income (Loss) $98 $47 (24) $31 $50 $156 Interest Expense 197 50 49 50 48 196 Provision for Income Taxes 63 1 30 15 20 67 Depreciation & Amortization 308 73 78 76 79 312 Reported EBITDA $665 $171
Slide 13: Adjusted EBITDA Reconciliation (cont'd)
Adjusted EBITDA Reconciliation (cont’d) A. In FY 2015 and 2Q 2016, we prepaid $100.0 million of the outstanding principal on the New Dollar Term Loan and recorded non-cash pre-tax losses on extinguishment of $3 million and $2 million, respectively. B. Eliminates foreign exchange gains and losses res
Slide 14: Thank you
Thank you AXALTA COATING SYSTEMS