Slide 1: Q1 2017 Financial Results
Axalta Coating Systems Q1 2017 FINANCIAL RESULTS April 26, 2017
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 2017 financial projections, including exec
Slide 3: Q1 2017 Highlights
Q1 2017 Highlights Q1 financial results Net sales of $1,007.8 million – volume growth of 8.9% YoY includes 4.5% acquisition contribution Net income attributable to Axalta of $64.1 million versus $30.9 million in Q1 2016 Adjusted net income attributable to Axalta of $63.1 million versus $43.0
Slide 4: Key Goals & Priorities For 2017
Key Goals & Priorities For 2017 Stated Objective Results Expected Status • New product introductions, broader global Outgrow our End-markets market penetration, benefit from consolidation in key end-markets and regions Execute on Structural Savings with • Complete our programs for $200 million total
Slide 5: Q1 Consolidated Results
Q1 Consolidated Results Financial Performance Commentary Q1 % Change Net sales led by volume growth ($ in millions) 2017 2016 Incl. F/X Excl. F/X Solid volume growth across both Performance 586 543 8.0% 11.0% segments in all regions Transportation 421 413 2.1% 3.2% Net Sales 1,008 956 5.5% 7.7%
Slide 6: Q1 Performance Coatings Results
Q1 Performance Coatings Results Financial Performance Commentary Q1 % Change Net sales led by Industrial including ($ in millions) 2017 2016 Incl. F/X Excl. F/X acquisition contribution Refinish 389 379 2.6% 5.7% Strong volume growth in both Industrial 198 164 20.4% 23.3% Industrial and Refinish i
Slide 7: Q1 Transportation Coatings Results
Q1 Transportation Coatings Results Financial Performance Commentary Q1 % Change Net sales driven by Light Vehicle ($ in millions) 2017 2016 Incl. F/X Excl. F/X Solid volume growth in Light Vehicle Light Vehicle 340 329 3.2% 4.0% across all regions and modest Commercial Vehicle 81 83 (2.2%) 0.1% in
Slide 8: Debt and Liquidity Summary
Debt and Liquidity Summary Capitalization Comments ($ in millions) @ 3/31/2017 Maturity Debt principal levels consistent with Cash and Cash Equivalents $439 December 31, 2016 Debt: Interest rate hedges: New caps Revolver ($400 million capacity) - 2021 First Lien Term Loan (USD) 1,514 2023 execut
Slide 9: Full Year 2017 Guidance
Full Year 2017 Guidance ($ millions) 2016A 2017E Comments on Drivers Net Sales (0.3%) 1-3% Net sales growth includes incremental M&A contribution of 2-3% from completed Net Sales, ex FX 4.3% 4-6% transactions Margin expansion driven by volume, price, Adjusted EBITDA $907 $930-980 and ongoing cos
Slide 10: Appendix
Appendix
Slide 11: Full Year 2017 Assumptions
Full Year 2017 Assumptions Macroeconomic Assumptions Currency Assumptions Global GDP growth of 2016 2017 Average approximately 2.9% 2016 Average % Change Currency % Axalta Rate Rate in F/X Rate Net Sales Assumption Global industrial production growth of approximately 2.9% US$ per Euro ~28% 1.11
Slide 12: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation LTM ($ in millions) FY 2016 Q1 2016 Q1 2017 3/31/2017 Net Income $48 $32 $66 $82 Interest Expense, net 178 50 36 164 Provision for Income Taxes 40 13 10 37 Depreciation & Amortization 322 76 82 328 Reported EBITDA $588 $171 $194 $611 A Debt extinguishment and refinanci
Slide 13: Adjusted EBITDA Reconciliation (cont'd)
Adjusted EBITDA Reconciliation (cont’d) A. During the year ended December 31, 2016 we prepaid principal on our term loans, resulting in non-cash extinguishment losses of $10 million. Additionally, we amended our Credit Agreement and refinanced our indebtedness, resulting in additional losses of $88
Slide 14: Thank you
Thank you Investor Relations Contact: Chris Mecray Christopher.Mecray@axaltacs.com 215-255-7970