Slide 1: Axalta Coating Systems Q1 2024 Financial Results
Axalta Coating Systems Q1 2024 Financial Results May 1, 2024
Slide 2: Legal Notices
Legal Notices Forward-Looking Statements This presentation and the oral remarks made in connection herewith may contain certain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 regarding Axalta and its subsidiaries including, but not limited
Slide 3: First Quarter 2024 Key Highlights
First Quarter 2024 Key Highlights $1.3B $259M 20.0% ■ 4% net sales growth YoY in Refinish Net Sales Adjusted EBITDA Adjusted EBITDA Margin and Light Vehicle +1% YoY +22% YoY +340 bps YoY ■ 20% Adjusted EBITDA margin Record First Quarter ■ Expanded Adjusted EBITDA and diluted EPS by 22% and 37% respe
Slide 4: First Quarter Business Review
First Quarter Business Review Q1 End Market Environment Recent Highlights Net Sales Recognized With Multiple Prestigious R&D Awards YoY Received awards for innovative and sustainable solutions associated Refinish with the launch of Irus Mix, Raptor™ Flameproof, and Voltatex™ Positive price-mix and A
Slide 5: First Quarter 2024 Consolidated Results
First Quarter 2024 Consolidated Results Financial Results Net Sales Variance ($ in millions) (0.3%) 0.4% 0.7% 0.8% ($ in millions, except per share data) Q1 2024 Q1 2023 % Change $1,284 $1,294 Net Sales 1,294 1,284 1% Income From Ops(1) 121 125 (3%) Adjusted EBITDA 259 213 22% Q1 2023 Volume Price/M
Slide 6: First Quarter 2024 Performance Coatings Results
First Quarter 2024 Performance Coatings Results Financial Results Net Sales Variance ($ in millions) ($ in millions) Q1 2024 Q1 2023 % Change (1.6%) 1.1% 0.7% 0.2% Refinish 519 498 4% $847 $848 Industrial 329 349 (6%) Organic Sales Net Sales 848 847 0% Refinish: +LSD% Industrial: (MSD%) Adjusted EBI
Slide 7: First Quarter 2024 Mobility Coatings Results
First Quarter 2024 Mobility Coatings Results Financial Results Net Sales Variance ($ in millions) ($ in millions) Q1 2024 Q1 2023 % Change 2.3% (1.0%) 0.7% 2.0% Light Vehicle 342 329 4% $437 $446 Commercial Vehicle 104 108 (4%) Organic Sales Net Sales 446 437 2% LV: +MSD% CV: (MSD%) Adjusted EBITDA
Slide 8: Focused Capital Allocation Drives Shareholder Value
Focused Capital Allocation Drives Shareholder Value Seasonally Strong Q1 Total Net Leverage Ratio(1) Board Authorized Free Cash Flow Progression $700M Share ($ in millions) Repurchase +$103M 4.2x Program 4.1x 3.8x 3.7x $15M 3.6x 3.2x 2.9x 2.8x ($88M) Replaces current remaining Q1 Q1 authorization 20
Slide 9: Raising Full Year 2024 Earnings Guidance
Raising Full Year 2024 Earnings Guidance Net Sales Adjusted EBITDA (% Change YoY) ($ in millions) Q2 2024 FY 2024 Q2 2024 FY 2024 3% - 5% +LSD% ~$275 $1,050 - $1,080 Prior Guidance: $1,010 - $1,050 Adjusted Diluted EPS Free Cash Flow ($ Per Share) ($ in millions) Q2 2024 FY 2024 FY 2024 ~$0.50 $1.90
Slide 10: Save The Date: Axalta Strategy Day 2024
Save The Date Axalta Strategy Day 2024 15 May 15th 2024 | 9:30AM - 11:30AM Axalta's management team will present three-year financial targets and a refreshed strategic plan to achieve attractive growth Speakers: ■ Chris Villavarayan, CEO & President ■ Carl Anderson, CFO & Senior Vice President ■ Dr.
Slide 11: Appendix
Appendix Appendix Continued To Srengthen Balance Sheet
Slide 12: Full Year 2024 Modeling Assumptions
Full Year 2024 Modeling Assumptions Axalta does not provide a reconciliation for non-GAAP estimates for tax rate, as adjusted, on a forward-looking basis because the information necessary to calculate a meaningful or accurate estimation of reconciling items is not available without unreasonable effo
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation LTM ($ in millions) 3/31/2024 Q1 2024 Q1 2023 FY 2023 Net income $ 247 $ 39 $ 61 $ 269 Interest expense, net 219 54 48 213 Provision for income taxes 91 20 15 86 Depreciation and amortization 274 68 70 276 EBITDA $ 831 $ 181 $ 194 $ 844 A Debt extinguishment and refina
Slide 14: Adjusted EBITDA Reconciliation (cont'd)
Adjusted EBITDA Reconciliation (cont’d) A Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance. B Represents expenses and associated changes to e
Slide 15: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation (in millions, except per share data) Q1 2024 Q1 2023 Net income $ 39 $ 61 Less: Net loss attributable to noncontrolling interests (2) — Net income attributable to common shareholders $ 41 $ 61 A Debt extinguishment and refinancing-related costs 3 2 B Termination be
Slide 16: Adjusted Net Income Reconciliation (cont'd)
Adjusted Net Income Reconciliation (cont’d) A Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance. B Represents expenses and associated changes
Slide 17: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ in millions) Q1 2024 Q1 2023 Cash provided by (used for) operating activities $ 34 $ (52) Purchase of property, plant and equipment (22) (42) Interest proceeds on swaps designated as net investment hedges 3 6 Free cash flow $ 15 $ (88) 17
Slide 18: Adjusted EBIT Reconciliation
Adjusted EBIT Reconciliation ($ in millions) Q1 2024 Q1 2023 Income from operations $ 121 $ 125 Other expense, net 8 1 Total $ 113 $ 124 A Debt extinguishment and refinancing-related costs 3 2 B Termination benefits and other employee-related costs 55 — C Acquisition and divestiture-related costs 2
Slide 19: Adjusted EBIT Reconciliation (cont'd)
Adjusted EBIT Reconciliation (cont’d) A Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance. B Represents expenses and associated changes to est
Slide 20: Capitalization Table
Capitalization Table ($ in millions) Interest @ 3/31/2024 Maturity Cash and Cash Equivalents $ 624 Debt: Revolver ($550 million capacity) Variable — 2026 First Lien Term Loan (USD) Variable 1,689 2029 Total Senior Secured Debt $ 1,689 Senior Unsecured Notes (USD) Fixed 496 2027 Senior Unsecured Note
Slide 21: Thank You
Thank You Investor Relations Contact: Chris Evans Christopher.Evans@axalta.com 484-724-4099