Slide 1: Q3 2014 Conference Call
Axalta Coating Systems Ltd. Q3 2014 Conference Call December 4, 2014
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: Axalta – A Leader in Coatings
Axalta – A Leader in Coatings Net Sales1 $4,376 million Adjusted EBITDA1,2 $833 million Adjusted EBITDA Margin3 19.0% Performance Coatings Transportation Coatings Segments 59% of Sales 41% of Sales Refinish Industrial Light Commercial End- Vehicle Vehicle Markets (42% of Sales) (17% of Sales) (32% o
Slide 4: Q3 2014 Highlights
Q3 2014 Highlights • Initial Public Offering on November 12, 2014 represents an important milestone for Axalta – Listed on New York Stock Exchange under ticker symbol AXTA – All-secondary public offering raised approximately $1.1 billion • Net sales growth and earnings momentum – Q3 2014 net sales a
Slide 5: Q3 2014 Financial Summary
Q3 2014 Financial Summary Financial Performance Commentary ($ in millions, except per share data) Net sales growth of 3.2% year-over- Net Sales year $1,075 $1,109 • Volume growth across all end-markets +3.2% (+2.8%), moderate price increases (+1.9%) offset by currency headwinds in Latin America (-1.
Slide 6: Adjusted EBITDA Progression
Adjusted EBITDA Progression Consistent Adjusted EBITDA growth with six straight quarters of year-over-year increases starting with the first full quarter since the closing of the Acquisition ($ in millions) $833 $799 $784 $738 $662 $570 2011 * 2012 * 2013 * LTM 03/31/14 LTM 06/30/14 LTM 09/30/14 * A
Slide 7: Performance Coatings – Summary
Performance Coatings – Summary Financial Performance Commentary ($ in millions) Sales growth across all regions despite Net Sales currency headwinds 3.1% $644 $664 • Volume growth (+3.3%) as well as higher +2.3% $181 $185 average selling prices (+1.5%) contributed to +3.4% higher net sales offset by
Slide 8: Transportation Coatings – Summary
Transportation Coatings – Summary Financial Performance Commentary ($ in millions) Commercial Vehicle end-market Net Sales primarily drove 3Q 2014 sales growth 3.4% $431 $445 • Higher average selling prices (+2.5%) and +13.0% $91 $103 increased volumes (+2.1%) offset by +0.8% unfavorable currency ex
Slide 9: Update on Transition-Related Costs
Update on Transition-Related Costs • Incurred certain transition-related costs as we have separated from our Predecessor parent company • Majority of transition-related costs in Q3 2014 related to the completion of our Information Technology transition activities • Transition-related costs will be c
Slide 10: Debt and Liquidity Summary
Debt and Liquidity Summary Capitalization Net Leverage ($ in millions) 9/30/2014 Maturity 5.6x Cash and Cash Equivalents $233 Debt: Revolving Credit Facility ($400 million capacity) -- 2018 5.1x 5.0x First Lien Term Loan (USD), net 2,154 2020 First Lien Term Loan (EUR), net 501 2020 Senior Secured N
Slide 11: Appendix
AXALTA Appendix
Slide 12: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation LTM LTM LTM ($ in millions) FY 2011 FY 2012 FY 2013* 03/31/14 06/30/14 09/30/14 Q3 2013 Q3 2014 Net Income (Loss) $181 $248 ($210) ($66) $12 ($13) $6 ($18) Interest Expense - - 215 236 239 228 63 52 Provision (Benefit) from Income Taxes 121 145 (38) (18) (26) 8 (26) 8
Slide 13: Adjusted EBITDA Reconciliation (cont’d)
Adjusted EBITDA Reconciliation (cont’d) For definitions of defined terms used herein, refer to our quarterly report on Form 10-Q for the quarterly period ended September 30, 2014 filed with the SEC. A. During the Successor nine months ended September 30, 2013, we recorded a non-cash fair value adjus
Slide 14: Adjusted EBITDA Reconciliation (cont’d)
Adjusted EBITDA Reconciliation (cont’d) I. Represents costs for certain unusual or non-operational (gains) and losses and the non-cash impact of natural gas and currency hedge losses allocated to DPC by DuPont, stock-based compensation, asset impairments, equity investee dividends, indemnity (income
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