Slide 1: Q3 2017 Financial Results
Q3 2017 Financial Results October 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 net
Slide 3: Q3 2017 Highlights
Q3 2017 Highlights ▪ Net sales and Adjusted EBITDA results ✓ Net sales of $1,091.8 million; acquisition growth of 9.7% versus Q3 2016 ✓ Net income (attributable to Axalta) of $54.9 million versus $6.6 million loss in Q3 2016; Adjusted net income of $65.0 million versus $81.6 million in Q3 2016 ✓ Adj
Slide 4: Q3 Consolidated Results
Q3 Consolidated Results Financial Performance Commentary Q3 % Change Net sales growth driven by acquisitions ($ in millions) 2017 2016 Incl. F/X Excl. F/X ▪ Acquisitions provided +9.7% growth in Performance 694 617 12.5% 10.4% Performance Coatings, mainly in North Transportation 398 404 (1.4%) (2.8%
Slide 5: Q3 Performance Coatings Results
Q3 Performance Coatings Results Financial Performance Commentary Q3 % Change Strong net sales growth led by M&A ($ in millions) 2017 2016 Incl. F/X Excl. F/X contribution Refinish 395 432 (8.4%) (10.6%) ▪ 16.1% growth from M&A, driven by Industrial 298 185 61.4% 59.5% recent Industrial acquisitions
Slide 6: Q3 Transportation Coatings Results
Q3 Transportation Coatings Results Financial Performance Commentary Q3 % Change Net sales led by Commercial Vehicle ($ in millions) 2017 2016 Incl. F/X Excl. F/X ▪ Solid Light Vehicle volume growth in Light Vehicle 310 321 (3.6%) (4.9%) Latin America, offset by North America Commercial Vehicle 89 83
Slide 7: Debt and Liquidity Summary
Debt and Liquidity Summary Capitalization Comments ($ in millions) @ 9/30/2017 Maturity ▪ Leverage ratio stable relative to last Cash and Cash Equivalents $589 quarter due primarily to: Debt: ✓ Increased debt balances from Euro denominated instruments from Revolver ($400 million capacity) - 2021 con
Slide 8: Full Year 2017 Guidance
Full Year 2017 Guidance ($ millions) Q2 Guidance Revised Comments on Revised Guidance ▪ Full year guidance has been revised to Net Sales 7-8% 6-7% reflect impacts from distributor working capital adjustments, raw material costs, and Net Sales, ex FX 8-9% 6-7% recent natural disasters ▪ Net sales gro
Slide 9: Appendix
Appendix AXALTA COATING SYSTEMS
Slide 10: Full Year 2017 Assumptions
Full Year 2017 Assumptions Macroeconomic Assumptions Currency Assumptions ▪ Global GDP growth of 2016 2017 Average USD % Impact 2016 Average approximately 3.1% Currency % Axalta Rate Rate of F/X Rate Net Sales Assumption Change ▪ Global industrial production growth of approximately 3.0% US$ per Euro
Slide 11: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation LTM ($ in millions) FY 2016 Q1 2016 Q2 2016 Q3 2016 Q1 2017 Q2 2017 Q3 2017 9/30/2017 Net Income (loss) $45 $33 $52 (5) $66 (19) $56 $68 Interest Expense, net 178 50 48 43 36 36 38 147 Provision for Income Taxes 38 14 17 (8) 10 10 2 37 Depreciation & Amortization 322 7
Slide 12: Adjusted EBITDA Reconciliation (cont’d)
Adjusted EBITDA Reconciliation (cont’d) A. During the year ended December 31, 2016 we amended our Credit Agreement and refinanced our indebtedness, resulting in losses of $88 million, and prepaid principal on our term loans, resulting in non-cash extinguishment losses of $10 million. In 2Q and 3Q 20
Slide 13: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation ($ in millions) Q3 2016 Q3 2017 Net Income (loss) (5) $56 Less: Net income attributable to noncontrolling interests 2 1 Net income (loss) attributable to controlling interests (7) 55 A Debt extinguishment and refinancing related costs 82 1 B Foreign exchange remeas
Slide 14: Adjusted Net Income Reconciliation (cont’d)
Adjusted Net Income Reconciliation (cont’d) A. In 3Q 2016, we prepaid outstanding principal on our term loans, resulting in a non-cash loss on extinguishment of $4 million. We also amended our Credit Agreement and refinanced our indebtedness, resulting in additional losses of $78 million. During 3Q
Slide 15: Thank you
Thank you Investor Relations Contact: Chris Mecray Christopher.Mecray@axaltacs.com 215-255-7970