Axalta Coating Systems Ltd. · NYSE:AXTA
Axalta Coating Systems — Q1 2018 Earnings Presentation
15 slides from Axalta Coating Systems's earnings presentation, Apr 25, 2018
Slide 1: Q1 2018 Financial Results
Q1 2018 Financial Results April 25, 2018
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 savings from our refinancing transactions
Slide 3: Q1 2018 Highlights
Q1 2018 Highlights ▪ Q1 2018 financial results ✓ Net sales of $1,165.8 million up 15.7% YoY; M&A contribution 8.4%, FX tailwinds of 6.3% ✓ Net income (attributable to Axalta) of $69.9 million versus $64.1 million in Q1 2017 ✓ Adjusted net income of $65.4 million versus $63.1 million in Q1 2017 ✓ Adj
Slide 4: Q1 Consolidated Results
Q1 Consolidated Results Financial Performance Commentary Q1 % Change Net sales growth driven largely by ($ in millions) 2018 2017 Incl. F/X Excl. F/X acquisitions, currency tailwinds, and Performance 729 586 24.3% 17.0% positive price-mix Transportation 437 421 3.7% (1.3%) ▪ Acquisitions provided 8.
Slide 5: Q1 Performance Coatings Results
Q1 Performance Coatings Results Financial Performance Commentary Q1 % Change Strong net sales growth led by ($ in millions) 2018 2017 Incl. F/X Excl. F/X acquisition contribution, solid Industrial Refinish 413 389 6.2% (1.2%) organic growth, and currency tailwinds Industrial 316 198 59.8% 52.6% ▪ St
Slide 6: Q1 Transportation Coatings Results
Q1 Transportation Coatings Results Financial Performance Commentary Q1 % Change Net sales benefiting from FX and ($ in millions) 2018 2017 Incl. F/X Excl. F/X Commercial Vehicle growth Light Vehicle 350 340 2.8% (2.3%) ▪ Solid Commercial Vehicle growth from Commercial Vehicle 88 81 7.6% 2.9% truck m
Slide 7: Debt and Liquidity Summary
Debt and Liquidity Summary Capitalization Comments ($ in millions) @ 3/31/2018 Maturity ▪ Seasonal uptick in leverage ratio due to Cash and Cash Equivalents $600 ✓ Cash use in Q1 2018 driven by working Debt: capital and acquisitions Revolver ($400 million capacity) - 2021 ✓ Higher Euro debt balances
Slide 8: Full Year 2018 Guidance
Full Year 2018 Guidance ($ millions) Feb. Guide 2018E Comments ▪ Full year guidance has been revised to Net Sales ~8-9% ~9-10% reflect stronger FX benefit, updated profit outlook and modest other adjustments Net Sales, ex FX ~6-7% ~6-7% ▪ Net sales growth includes incremental M&A Adjusted EBITDA $94
Slide 9: Appendix
Appendix AXALTA COATING SYSTEMS
Slide 10: Full Year 2018 Assumptions
Full Year 2018 Assumptions Macroeconomic Assumptions Currency Assumptions ▪ Global GDP growth of 2017 2018 Average USD % Impact 2017 Average approximately 3.4% Currency % Axalta Rate Rate of F/X Rate Net Sales Assumption Change ▪ Global industrial production growth of approximately US$ per Euro ~28%
Slide 11: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Note: Numbers might not foot due to rounding. PROPRIETARY 11
Slide 12: Adjusted EBITDA Reconciliation (cont’d)
Adjusted EBITDA Reconciliation (cont’d) A. During 2017, we refinanced our indebtedness, resulting in losses of $13 million. In addition, during 2017, we prepaid outstanding principal on our term loans, resulting in non-cash extinguishment losses of $1 million. We do not consider these items to be in
Slide 13: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation Note: Numbers might not foot due to rounding. PROPRIETARY 13
Slide 14: Adjusted Net Income Reconciliation (cont’d)
Adjusted Net Income Reconciliation (cont’d) A. Eliminates foreign exchange gains resulting from the remeasurement of assets and liabilities denominated in foreign currencies, net of impacts of our foreign currency instruments used to hedge our balance sheet exposures. B. Represents expenses and asso
Slide 15: Thank you
Thank you Investor Relations Contact: Chris Mecray Christopher.Mecray@axaltacs.com 215-255-7970
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