Axalta Coating Systems Ltd. · NYSE:AXTA
Axalta Coating Systems — Q1 2015 Earnings Presentation
15 slides from Axalta Coating Systems's earnings presentation, May 6, 2015
Slide 1: Q1 2015 Conference Call
Axalta Coating Systems Ltd. Q1 2015 Conference Call May 6, 2015
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 Global Leader in Coatings
Axalta – A Global Leader in Coatings Net Sales 1 $4,362 million Adjusted EBITDA 1,2 $841 million Adjusted EBITDA Margin 2 19.3% Segments Performance Coatings 59% of Net Sales 21% Adjusted EBITDA Margin Transportation Coatings 41% of Net Sales 16% Adjusted EBITDA Margin End-Markets Focus Areas Key Cu
Slide 4: Q1 2015 Highlights
Q1 2015 Highlights Sales and margins on track for 2015 goals – Net sales up 5% YoY, excluding currency, with volume growth in both segments; reported net sales down 6%, impacted by currency translation – Adjusted EBITDA of $182 million aided by strong volume growth, down 3% versus Q1 2014 due primar
Slide 5: Delivering On Our Goals
Delivering On Our Goals Stated Objective Results Delivered Grow the Business Continue New Business Wins Increase Emerging Markets Presence Cost Structure & Commercial Alignment Improvement Pursue High IRR Opportunities Volumes up 5% in Q1 2015 YoY after 1% in Q4 2014 Adjusted EBITDA on track for mid
Slide 6: Q1 2015 Consolidated Results
Q1 2015 Consolidated Results Financial Performance Q1 % Change ($ in millions) 2015 2014 Incl. F/X Excl. F/X Performance 557 616 (9.6%) 2.5% Transportation 432 431 0.2% 9.1% Net Sales 989 1,047 (5.6%) 5.2% Adjusted EBITDA 182 187 (2.5%) % margin 18.4% 17.8% Commentary Net sales increased 5.2% exclud
Slide 7: Q1 2015 Performance Coatings Results
Q1 2015 Performance Coatings Results Financial Performance Q1 % Change ($ in millions) 2015 2014 Incl. F/X Excl. F/X Refinish 393 435 (9.7%) 2.7% Industrial 164 181 (9.3%) 1.9% Net Sales 557 616 (9.6%) 2.5% Adjusted EBITDA 107 125 (14.0%) % margin 19.2% 20.2% Commentary Net sales increased 2.5% excl
Slide 8: Q1 2015 Transportation Coatings Results
Q1 2015 Transportation Coatings Results Financial Performance Q1 % Change ($ in millions) 2015 2014 Incl. F/X Excl. F/X Light Vehicle 333 340 (1.9%) 7.4% Commercial Vehicle 99 92 7.6% 15.4% Net Sales 432 431 0.2% 9.1% Adjusted EBITDA 75 62 20.4% % margin 17.3% 14.4% Commentary Net sales increased 9.
Slide 9: Cost Optimization Initiatives Progressing Well
Cost Optimization Initiatives Progressing Well Fit-For-Growth: $100 million savings plan is on budget – Methodically tracking progress towards remainder of program – Expect $60 million cumulative savings to be realized by the end of 2015 Axalta Way: $100 million savings targeted – Detailed planning
Slide 10: Debt and Liquidity Summary
Debt and Liquidity Summary Net Leverage 5.6x 5.2x 5.0x 4.7x 4.7x 4.5x 4.2x 4.0x 4.1x At LBO Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Capitalization ($ in millions) @ 3/31/2015 Maturity Cash and Cash Equivalents $223 Debt: Revolver ($400 capacity) - 2018 First Lien Term Loan (USD) 2,16
Slide 11: Full Year 2015 Guidance Reiterated
Full Year 2015 Guidance Reiterated Net Sales Growth: + 5-7% excluding F/X; flat to slightly down on an as-reported basis – Growth across all regions and end-markets, excluding F/X impact, which is a significant headwind, though primarily translational with production and sales fairly balanced by reg
Slide 12: Appendix
AXALTA Appendix
Slide 13: Full Year 2015 Assumptions
Full Year 2015 Assumptions Currency Assumptions Currency % Axalta Net Sales 2014 Avg. Rate 2015 Avg. Guidance Rate % Change in F/X Rate US$ per Euro ~30% 1.33 1.10 (17.3%) Chinese Yuan per US$ ~11% 6.17 6.25 (1.3%) Mexican Peso per US$ ~6% 13.33 15.00 (12.5%) Brazilian Real per US$ ~5% 2.36 2.90 (22
Slide 14: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in millions) FY 2014 Q1 2014 Q1 2015 LTM 3/31/2015 Net Income (Loss) $35 (4) $47 $86 Interest Expense 217 59 50 208 Provision (Benefit) for Income Taxes 2 12 1 (9) Depreciation & Amortization 309 81 73 301 Reported EBITDA $563 $148 $171 $586 A Financing Costs and Ex
Slide 15: Adjusted EBITDA Reconciliation (cont'd)
Adjusted EBITDA Reconciliation (cont’d) A. In connection with an amendment to the Senior Secured Credit Facilities in February 2014, we recognized $3 million of costs during the three months ended March 31, 2014. In addition to the credit facility amendment, we also incurred a $3 million loss on ext
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