Axalta Coating Systems Ltd. · NYSE:AXTA
Axalta Coating Systems — Q1 2016 Earnings Presentation
14 slides from Axalta Coating Systems's earnings presentation, Apr 28, 2016
Slide 1: Q1 2016 Financial Results
A X A LTA C O AT I N G S Y S T E M S Q1 2016 FINANCIAL RESULTS April 28, 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: Q1 2016 Highlights
Q1 2016 Highlights Strong Q1 financial results Q1 2016 net sales up 3.0% versus Q1 2015, ex-currency Adjusted EBITDA of $195 million, up 7.0% YoY Adjusted EBITDA margin of 20.4% versus 18.4% in Q1 2015 Operating progress highlights Mexico project completed for expanded resin production c
Slide 4: Q1 Consolidated Results
Q1 Consolidated Results Financial Performance Commentary Net sales increased 3.0% excluding Q1 % Change currency ($ in millions) 2016 2015 Incl. F/X Excl. F/X Continued net sales growth in North Performance 543 557 (2.5%) 4.8% America and EMEA, while emerging Transportation 413 432 (4.5%) 0.7% mar
Slide 5: Q1 Performance Coatings Results
Q1 Performance Coatings Results Financial Performance Commentary Net sales increased 4.8% excluding Q1 % Change currency ($ in millions) 2016 2015 Incl. F/X Excl. F/X Strong Refinish volume growth in Asia Refinish 379 393 (3.7%) 5.3% Pacific offset by lower volumes in Latin Industrial 164 164 0.2%
Slide 6: Q1 Transportation Coatings Results
Q1 Transportation Coatings Results Financial Performance Commentary Net sales increased 0.7% excluding Q1 % Change currency ($ in millions) 2016 2015 Incl. F/X Excl. F/X Volume growth led by North America and Light Vehicle 329 333 (1.1%) 3.6% Asia Pacific Light Vehicle, offset by lower Commercial
Slide 7: Debt and Liquidity Summary
Debt and Liquidity Summary Capitalization Net Leverage ($ in millions) @ 3/31/2016 Maturity Cash and Cash Equivalents $420 5.6x Debt: Revolver ($400 million capacity) - 2018 5.1x First Lien Term Loan (USD) 1,991 2020 5.0x First Lien Term Loan (EUR) (2) 425 2020 Senior Secured Notes (EUR) (2) 273 202
Slide 8: Key Goals For 2016 Unchanged
Key Goals For 2016 Unchanged Stated Objective Comments Grow the Business • Net sales growth of 4-6% ex-currency • Expect to outgrow our end-markets Focus on Operating Improvement • New capacity ramps continue, opportunity to refine our operating strengths • Strong global foundation, see opportunity
Slide 9: Full Year 2016 Guidance
Full Year 2016 Guidance ($ millions) 2015A 2016E Comments on Drivers Net sales expected to be flat to down Net Sales (Excl.-FX) +5% +4-6% slightly as-reported based on anticipated currency headwinds Adjusted EBITDA $867 $900-940 Margin expansion expected to continue, driven by volume, price and
Slide 10: Appendix
Appendix
Slide 11: Full Year 2016 Assumptions
Full Year 2016 Assumptions Macroeconomic Assumptions Currency Assumptions Global GDP growth of 2015 Feb 2016 Apr 2016 % YoY 2015 approximately 3.1% Currency % Axalta Guidance Guidance Change in Avg. Rate Net Sales Rate Rate F/X Rate Global industrial production growth of approximately US$ per Eu
Slide 12: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Successor LTM ($ in m illions) FY 2015 Q1 2015 Q1 2016 3/31/2016 Net Income $98 $47 $31 $82 Interest Expense 197 50 50 197 Provision for Income Taxes 63 1 15 77 Depreciation & Amortization 308 73 76 311 Reported EBITDA $665 $171 $171 $665 A Financing costs and debt ext
Slide 13: Adjusted EBITDA Reconciliation (cont’d)
Adjusted EBITDA Reconciliation (cont’d) A. In 2015, we incurred a $3 million loss on the extinguishment of debt, which resulted directly from the pro-rata write off of unamortized deferred financing costs and original issue discounts associated with the pay-down of $100 million of principal on the N
Slide 14: Thank you
Thank you AXALTA COATING SYSTEMS
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