Slide 1: Q4 & Full Year 2015 Financial Results
A X A LTA C O AT I N G S Y S T E M S Q4 & FULL YEAR 2015 FINANCIAL RESULTS FEBRUARY 10, 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: Q4 & Full Year 2015 Highlights
Q4 & Full Year 2015 Highlights Strong Q4 financial results Q4 2015 net sales up 4.5% versus Q4 2014, ex-currency Performance Coatings: 3.6% volume growth and 1.2% price increases Adjusted EBITDA of $213 million, up 4.0% YoY; Adjusted EBITDA margin of 21.2% versus 19.0% in Q4 2014 Operating
Slide 4: Q4 Consolidated Results
Q4 Consolidated Results Financial Performance Commentary Net sales increased 4.5% excluding Q4 % Change currency ($ in millions) 2015 2014 Incl. F/X Excl. F/X Volume growth from both segments and Performance 589 640 (8.1%) 4.8% most regions; ongoing price realization Transportation 415 438 (5.3%)
Slide 5: Q4 Performance Coatings Results
Q4 Performance Coatings Results Financial Performance Commentary Net sales increased 4.8% excluding Q4 % Change currency ($ in millions) 2015 2014 Incl. F/X Excl. F/X Price increases in Refinish across North Refinish 422 466 (9.6%) 4.8% America, EMEA, and Latin America Industrial 167 174 (4.2%) 4.
Slide 6: Q4 Transportation Coatings Results
Q4 Transportation Coatings Results Financial Performance Commentary Net sales increased 4.2% excluding Q4 % Change currency ($ in millions) 2015 2014 Incl. F/X Excl. F/X Volume growth in Light Vehicle in most Light Vehicle 327 339 (3.7%) 5.5% regions, partly offset by Latin America Commercial Vehi
Slide 7: FY 2015 Consolidated Results
FY 2015 Consolidated Results Financial Performance Commentary Net sales increased 5.3% excluding FY % Change currency ($ in millions) 2015 2014 Incl. F/X Excl. F/X Performance Coatings net sales driven by Performance 2,385 2,585 (7.7%) 5.2% volume growth across all regions and price Transportation
Slide 8: Debt and Liquidity Summary
Debt and Liquidity Summary Capitalization Net Leverage ($ in millions) @ 12/31/2015 Maturity 5.6x Cash and Cash Equivalents $485 Debt(1): 5.1x Revolver ($400 million capacity) - 2018 5.0x First Lien Term Loan (USD) 1,994 2020 First Lien Term Loan (EUR) (2) 418 2020 4.6x 4.5x Senior Secured Notes (EU
Slide 9: Key Goals For 2016
Key Goals For 2016 Stated Objective Comments Grow the Business • Net sales growth of 4-6% ex-currency • Expect to outgrow our end-markets Focus on Operating Improvement • New capacity ramps continue, opportunity to refine our operating strengths • Strong global foundation, see opportunity to Extend
Slide 10: Full Year 2016 Guidance
Full Year 2016 Guidance ($ 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 $900-940 Margin expansion expected to continue, driven by volume, price, and
Slide 11: Appendix
Appendix
Slide 12: Full Year 2016 Assumptions
Full Year 2016 Assumptions Macroeconomic Assumptions Currency Assumptions Global GDP growth of 2015 Feb 2016 2015 % Change approximately 2.9% Currency % Axalta Guidance Avg. Rate in F/X Rate Net Sales Rate Global industrial production growth of approximately US$ per Euro ~27% 1.11 1.05 (5.4%) 2.
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in m illions) FY 2015 FY 2014 Q4 2015 Q4 2014 Net Income $98 $35 $39 $1 Interest Expense 197 217 47 51 Provision (Benefit) for Income Taxes 63 2 15 (16) Depreciation & Amortization 308 309 82 80 Reported EBITDA $665 $563 $183 $116 A Financing costs and debt extingui
Slide 14: Adjusted EBITDA Reconciliation (cont'd)
Adjusted EBITDA Reconciliation (cont’d) A. In connection with the amendment to the Senior Secured Credit Facilities in February 2014, we recognized $3 million of costs. In addition to the credit facility amendment, we also incurred $3 million of losses on extinguishment of debt during both the years
Slide 15: Thank you
Thank you AXALTA COATING SYSTEMS