Slide 1: Q2 2019 Financial Results
Exhibit 99.2 Q2 2019 Financial Results July 25, 2019
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 our 2019 financial projections, which incl
Slide 3: Q2 2019 Highlights
Q2 2019 Highlights ▪ Q2 2019 financial results ▪ Net sales of $1.2 billion down 4.5% YoY (decrease of 0.1% ex-FX and China JV sale) ▪ Positive price-product mix in both segments, including notable acceleration in Light Vehicle ▪ Income from operations of $158 million increased 7.8% YoY; Adjusted EBI
Slide 4: Q2 Consolidated Results
Q2 Consolidated Results Financial Performance Commentary ($ in millions, except Q2 % Change Net sales stable excluding FX and China per share data) 2019 2018 Incl. F/X Excl. F/X JV sale - continued strong price-mix Performance 757 786 (3.7)% (0.2)% Transportation 401 426 (6.0)% (2.4)% ▪ Volume decli
Slide 5: Q2 Performance Coatings Results
Q2 Performance Coatings Results Financial Performance Commentary Q2 % Change Solid net sales growth ex-FX and JV sale ($ in millions) 2019 2018 Incl. F/X Excl. F/X driven by strong price contribution Refinish 447 448 (0.2)% 3.6 % ▪ Refinish volume down modestly Industrial 309 338 (8.4)% (5.3)% press
Slide 6: Q2 Transportation Coatings Results
Q2 Transportation Coatings Results Financial Performance Commentary Q2 % Change Light Vehicle volume impacting net ($ in millions) 2019 2018 Incl. F/X Excl. F/X sales, but price increases accelerating Light Vehicle 306 333 (8.2)% (4.3)% ▪ Light Vehicle volume pressure driven by Commercial Vehicle 95
Slide 7: Debt and Liquidity Summary
Debt and Liquidity Summary Capitalization Comments ($ in millions) Interest @ 6/30/2019 Maturity ▪ Net leverage lower versus Q1 end due to: Cash and Cash Equivalents $ 577 ▪ Higher cash position Debt: Revolver ($400 million capacity) Variable - 2024 ▪ Slightly higher LTM Adjusted EBITDA First Lien T
Slide 8: Full Year 2019 Guidance
Full Year 2019 Guidance ($ millions, except per share data) Apr. Guide 2019E Comments Net Sales ~0-1% ~(2%) ▪ Earnings phasing (% of midpoint Adjusted EBIT guidance): Q3 ~25%, Q4 ~26% Net Sales, ex FX1 ~1-2% ~0% ▪ Net sales guidance reflects May disposition of consolidated China powder coatings JV w
Slide 9: Appendix
A AXALTA Appendix AXALTA COATING SYSTEMS
Slide 10: Full Year 2019 Assumptions
Full Year 2019 Assumptions Macroeconomic Assumptions Currency Assumptions ▪ Global GDP growth of 2019 2018 USD % Impact approximately ~2.8% 2018 Average Average Currency % Axalta of FX Rate Rate Rate Net Sales Change Assumption ▪ Global industrial production growth of approximately US$ per Euro ~27%
Slide 11: Adjusted EBIT Reconciliation
Adjusted EBIT Reconciliation ($ in millions) Q2 2019 Q2 2018 Income from operations $ 158 $ 147 Other (income) expense, net (1) 8 Total $ 159 $ 138 A Debt extinguishment and refinancing related costs — 8 B Termination benefits and other employee related costs 3 (1) C Consulting and advisory 1 — D Of
Slide 12: Adjusted EBIT (cont’d)
Adjusted EBIT (cont’d) A. Represents expenses associated with the restructuring and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance. B. Represents expenses and associated changes to estimates related to employee termination benefits and other
Slide 13: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation ($ in millions, except per share data) Q2 2019 Q2 2018 Net Income $ 100 $ 77 Less: Net income attributable to noncontrolling interests 2 2 Net income attributable to controlling interests 98 75 A Debt extinguishment and refinancing related costs — 8 B Termination b
Slide 14: Adjusted Net Income Reconciliation (cont’d)
Adjusted Net Income Reconciliation (cont’d) A. Represents expenses associated with the restructuring and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance. B. Represents expenses and associated changes to estimates related to employee terminati
Slide 15: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ in millions) Q2 2019 Q1 2019 Q2 2018 Q1 2018 Cash provided by (used in) operating activities $ 127 $ (58) $ 142 $ (21) Purchase of property, plant and equipment (27) (21) (35) (40) Interest proceeds on swaps designated as net investment hedges 4 4 — — Free cash flow
Slide 16: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation LTM ($ in millions) 6/30/2019 Q2 2019 Q1 2019 Q2 2018 Q1 2018 FY 2018 Net income $ 209 $ 100 $ 44 $ 77 $ 71 $ 213 Interest expense, net 163 41 41 39 39 160 Provision for income taxes 53 18 14 22 12 54 Depreciation and amortization 367 89 92 90 92 369 EBITDA $ 792 $ 248
Slide 17: Adjusted EBITDA Reconciliation (cont’d)
Adjusted EBITDA Reconciliation (cont’d) A. During Q2 2018 and FY 2018 we refinanced our indebtedness, resulting in losses of $8 million and $10 million, respectively. We do not consider these items to be indicative of our ongoing operating performance. B. Eliminates foreign exchange losses resulting
Slide 18: Thank you
Thank you Investor Relations Contact: Chris Mecray Christopher.Mecray@axalta.com 215-255-7970