Slide 1: Q2 2018 Financial Results
Q2 2018 Financial Results July 26, 2018
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 2018 financial projections, which incl
Slide 3: Q2 2018 Highlights
Q2 2018 Highlights ▪ Q2 2018 financial results ▪ Net sales of $1,206.5 million up 10.8% YoY; acquisition contribution of 5.6% ▪ Net income (attributable to Axalta) of $74.9 million versus a loss of $20.8 million in Q2 2017 ▪ Adjusted net income of $87.1 million versus $75.4 million in Q2 2017 ▪ Adju
Slide 4: Q2 Consolidated Results
Q2 Consolidated Results Financial Performance Commentary Q2 % Change Double-digit net sales growth; positive ($ in million) 2018 2017 Incl. F/X Excl. F/X price-mix momentum Performance 785 663 18.3 % 15.4 % ▪ Acquisitions contributed 5.6% to growth, Transportation 422 426 (0.8)% (2.4)% largely from
Slide 5: Q2 Performance Coatings Results
Q2 Performance Coatings Results Financial Performance Commentary Q2 % Change Strong net sales growth driven by ($ in million) 2018 2017 Incl. F/X Excl. F/X acquisition contribution, solid Industrial Refinish 447 421 6.1% 3.4% organic growth, and accelerated pricing Industrial 337 242 39.6% 36.3% ▪ D
Slide 6: Q2 Transportation Coatings Results
Q2 Transportation Coatings Results Financial Performance Commentary Q2 % Change Net sales impacted by price-mix, ($ in million) 2018 2017 Incl. F/X Excl. F/X including customer specific production Light Vehicle 329 334 (1.5)% (3.1)% impacts Commercial Vehicle 93 91 1.4 % 0.2 % ▪ Light Vehicle volume
Slide 7: Debt and Liquidity Summary
Debt and Liquidity Summary Capitalization Comments ($ in millions) @ 6/30/2018 Maturity ▪ Reduction in leverage ratio compared to Q1 2018 due to Cash and Cash Equivalents $ 551 ▪ Improved LTM EBITDA Debt: Revolver ($400 million capacity) - 2021 ▪ Lower Euro debt balances due to stronger Dollar-Euro
Slide 8: Full Year 2018 Guidance
Full Year 2018 Guidance ($ millions) Q1 Guidance Revised Comments on Revised Guidance ▪ Full year guidance has been revised to Net Sales 9-10% 8-9% reflect ~2% F/X benefit Net Sales, ex FX 6-7% 6-7% ▪ Net sales growth includes incremental M&A contribution of ~3% from completed Adjusted EBITDA $950-9
Slide 9: Appendix
Appendix AXALTA COATING SYSTEMS
Slide 10: Full Year 2018 Assumptions
Full Year 2018 Assumptions Macroeconomic Assumptions Currency Assumptions ▪ Global GDP growth of 2018 2017 USD % Impact approximately 3.3% 2017 Average Average Currency % Axalta of F/X Rate Rate Rate Net Sales Change Assumption ▪ Global industrial production growth of approximately 3.4% US$ per Euro
Slide 11: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation LTM ($ in millions) FY 2017 Q1 2017 Q2 2017 Q1 2018 Q2 2018 6/30/2018 Net Income (loss) $ 48 $ 66 $ (19) $ 71 $ 77 $ 149 Interest Expense, net 147 36 36 39 39 154 Provision for Income Taxes 142 10 10 12 22 156 Depreciation & Amortization 347 82 84 92 90 363 Reported EB
Slide 12: Adjusted EBITDA Reconciliation (cont’d)
Adjusted EBITDA Reconciliation (cont’d) A. During Q2 2017 and Q2 2018 we refinanced our term loans, resulting in losses of $12 million and $8 million, respectively. In addition, during 2017, we prepaid outstanding principal on our term loans, resulting in non-cash extinguishment losses of $2 million
Slide 13: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation ($ in millions) Q2 2017 Q2 2018 Net Income (loss) $ (19) $ 77 Less: Net income attributable to noncontrolling interests 2 2 Net income (loss) attributable to controlling interests (21) 75 A Debt extinguishment and refinancing related costs 12 8 B Foreign exchange r
Slide 14: Adjusted Net Income Reconciliation (cont’d)
Adjusted Net Income Reconciliation (cont’d) A. During Q2 2017 and Q2 2018 we refinanced our term loans, resulting in losses of $12 million and $8 million, respectively. We do not consider these items to be indicative of our ongoing operative performance. B. Eliminates foreign exchange losses resulti
Slide 15: Thank you
Thank you Investor Relations Contact: Chris Mecray Christopher.Mecray@axaltacs.com 215-255-7970