Axalta Coating Systems Ltd. · NYSE:AXTA

Axalta Coating Systems — Q3 2016 Earnings Presentation

15 slides from Axalta Coating Systems's earnings presentation, Oct 27, 2016

  1. Slide 1: Q3 2016 Financial Results

    A X A LTA C O AT I N G S Y S T E M S Q3 2016 FINANCIAL RESULTS October 27, 2016

  2. 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

  3. Slide 3: Q3 2016 Highlights

    Q3 2016 Highlights  Q3 financial results  Net sales of $1,023.4 million – volume and price up 4.4% YoY, offset by 2.1% negative foreign currency translation impact – includes 2.6% growth from acquisitions  Net loss attributable to Axalta of $10.7 million including refinancing charges of $81.9 mil

  4. Slide 4: Q3 Consolidated Results

    Q3 Consolidated Results Financial Performance Commentary Q3 % Change Net sales growth drivers ($ in millions) 2016 2015 Incl. F/X Excl. F/X  Positive pricing contribution from both Performance 619 601 3.1% 5.8% segments, led by Performance Transportation 404 400 1.1% 2.3% Coatings and most notably

  5. Slide 5: Q3 Performance Coatings Results

    Q3 Performance Coatings Results Financial Performance Commentary Q3 % Change Net sales led by Industrial including 2016 2015 Incl. F/X Excl. F/X ($ in millions) acquisition contribution Refinish 435 427 1.8% 4.9%  Pricing led by Refinish; Industrial Industrial 185 174 6.4% 8.2% remained stable Net

  6. Slide 6: Q3 Transportation Coatings Results

    Q3 Transportation Coatings Results Financial Performance Commentary Q3 % Change Net sales pressured by Commercial ($ in millions) 2016 2015 Incl. F/X Excl. F/X volumes Light Vehicle 321 304 5.7% 6.7%  Solid volume growth in Light Vehicle Commercial Vehicle 83 96 (13.5%) (11.9%) led by Asia Pacific

  7. Slide 7: Debt and Liquidity Summary

    Debt and Liquidity Summary Capitalization Net Leverage ($ in millions) @ 9/30/2016 Maturity Cash and Cash Equivalents $528 5.6x Debt: Revolver ($400 million capacity) - 2021 First Lien Term Loan (USD) 1,887 2020 5.1x 5.0x First Lien Term Loan (EUR) (1) 206 2020 Total Senior Secured Debt $2,093 4.6x

  8. Slide 8: Capitalization Summary

    Capitalization Summary Capitalization Pre-Refinancing @ 9/30/2016 Interest Interest ($ in millions) Rate Maturity USD Rate Maturity USD Revolver ($400mm Capacity) L + 325 2/1/2018 - L + 225 8/1/2021 - First Lien Term Loan - USD (1) L + 275 2/1/2020 1,925 L + 275 2/1/2020 1,925 First Lien Term Loan -

  9. Slide 9: Full Year 2016 Guidance

    Full Year 2016 Guidance ($ millions) 2015A 2016E Comments on Drivers Net Sales -6% ~0%  Net sales expected to be flat to down slightly, as-reported, based on anticipated Net Sales, ex FX +5% 4-6% currency headwinds; net sales, ex-FX, expected to come in at lower end of 4-6% Adjusted EBITDA $867 ~$9

  10. Slide 10: Appendix

    Appendix

  11. Slide 11: Key Goals For 2016

    Key Goals For 2016 Stated Objective Comments • Flat net sales; growth at lower end of ~4-6% ex- Grow the Business currency, including acquisitions • Expect to outgrow our end-markets Focus on Operating Improvement • New capacity ramps continue, opportunity to refine our operating strengths • Strong

  12. Slide 12: Full Year 2016 Assumptions

    Full Year 2016 Assumptions Macroeconomic Assumptions Currency Assumptions  Global GDP growth of 2015 Rates Used in Rates Used in % Change approximately 2.4% Currency % Axalta Initial 2016 Current 2016 in F/X Rate Net Sales Guidance Guidance  Global industrial production growth of approximately US$

  13. Slide 13: Adjusted EBITDA Reconciliation

    Adjusted EBITDA Reconciliation LTM ($ in millions) FY 2015 Q1 2015 Q2 2015 Q3 2015 Q1 2016 Q2 2016 Q3 2016 9/30/2016 Net Income (Loss) $98 $47 (24) $36 $31 $50 (10) $110 Interest Expense 197 50 49 51 50 48 43 188 Provision for Income Taxes 63 1 30 18 15 20 - 49 Depreciation & Amortization 308 73 78

  14. Slide 14: Adjusted EBITDA Reconciliation (cont'd)

    Adjusted EBITDA Reconciliation (cont’d) A. During FY 2015, 2Q 2016 and 3Q 2016, we prepaid outstanding principal on our Term Loans, resulting in non-cash pre-tax losses on extinguishment of $3 million, $2 million and $5 million, respectively. During 3Q 2016, we amended the terms of our Credit Agreem

  15. Slide 15: Thank you

    Thank you AXALTA COATING SYSTEMS

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