Slide 1: Q3 2015 Financial Results: October 28, 2015
A X A LTA C O AT I N G S Y S T E M S Q3 2015 FINANCIAL RESULTS: OCTOBER 28, 2015
Slide 2: Notice Regarding Forward Looking Statements, Non-GAAP Financial Measures and Defined Terms
Notice Regarding Forward Looking Statements, Non-GAAP Financial Measures and Defined Terms 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
Slide 3: Q3 2015 Highlights
Q3 2015 Highlights Overall growth on track to achieve 2015 goals Net sales up 3% YoY, excluding currency 2% volume growth and incremental selling price increases primarily in Performance Coatings Adjusted EBITDA of $217 million, down 5% versus Q3 2014, largely due to currency translation imp
Slide 4: Delivering On Our Goals
Delivering On Our Goals Stated Objective Results Delivered • Volumes up 2% and price up 1% in Q3 2015 YoY Grow the Business • Achieving Adjusted EBITDA growth ex-FX and solid margin expansion in 2015 Launch New Business Wins • 32 new launches largely on track, 2 in China delayed into 2016 • Succ
Slide 5: Q3 Consolidated Results
Q3 Consolidated Results Financial Performance Commentary Q3 % Change Net sales increased 3.1% excluding ($ in millions) 2015 2014 Incl. F/X Excl. F/X currency Performance 601 664 (9.5%) 5.1% Volume and price growth from both Transportation 400 445 (10.3%) 0.2% segments and in most regions Net Sale
Slide 6: Q3 Performance Coatings Results
Q3 Performance Coatings Results Financial Performance Commentary Q3 % Change Net sales increased 5.1% excluding ($ in millions) 2015 2014 Incl. F/X Excl. F/X currency Refinish 427 478 (10.7%) 5.2% Successful price increases in Refinish Industrial 174 185 (6.3%) 4.7% across all regions in line with
Slide 7: Q3 Transportation Coatings Results
Q3 Transportation Coatings Results Financial Performance Commentary Q3 % Change Net sales increased 0.2% excluding ($ in millions) 2015 2014 Incl. F/X Excl. F/X currency Light Vehicle 304 343 (11.3%) (0.9%) Light Vehicle net sales increased in North Commercial Vehicle 96 103 (6.7%) 4.0% America an
Slide 8: Debt and Liquidity Summary
Debt and Liquidity Summary Capitalization Net Leverage ($ in millions) @ 9/30/2015 Maturity 5.6x Cash and Cash Equivalents $412 Debt(1): 5.1x Revolver ($400 million capacity) - 2018 5.0x First Lien Term Loan (USD) 2,094 2020 First Lien Term Loan (EUR) (2) 427 2020 4.6x 4.5x Senior Secured Notes (EUR
Slide 9: Full Year 2015 Guidance Update
Full Year 2015 Guidance Update Net Sales Growth: 5-7% excluding F/X; down mid-single digits as-reported Growth across all regions and end-markets, excluding F/X impact Performance Coatings drivers: Increased volumes, and selective price increases Transportation Coatings drivers: Light Vehicl
Slide 10: Appendix
APPENDIX
Slide 11: Full Year 2015 Assumptions
Full Year 2015 Assumptions Macroeconomic Assumptions Currency Assumptions Global GDP growth of 2014 2014 Feb ‘15 Aug ‘15 Oct ’15 % approximately 2.5% Change Currency % Axalta Avg. Guidance Guidance Guidance in F/X Net Sales Rate Rate Rate Rate Global industrial production Rate growth of approxim
Slide 12: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation LTM ($ in m illions) FY 2014 Q1 2014 Q2 2014 Q3 2014 Q1 2015 Q2 2015 Q3 2015 9/30/2015 Net Income (Loss) 35 (4) 56 (18) 47 (24) 36 60 Interest Expense 217 59 55 53 50 49 51 201 Provision (Benefit) for Income Taxes 2 12 (1) 8 1 30 18 32 Depreciation & Amortization 309 8
Slide 13: Adjusted EBITDA Reconciliation (cont'd)
Adjusted EBITDA Reconciliation (cont’d) A. During the three months ended June 30, 2015 and September 30, 2015, we recorded non-cash fair value inventory adjustments associated with our acquisitions. B. In connection with an amendment to the Senior Secured Credit Facilities in February 2014, we recog
Slide 14: AXALTA COATING SYSTEMS
AXALTA COATING SYSTEMS