Slide 1: Q3 2018 Financial Results
Q3 2018 Financial Results October 25, 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: Q3 2018 Highlights
Q3 2018 Highlights ▪ Q3 2018 financial results ▪ Net sales of $1,139.3 million up 4.4%; driven by growth of 6.9% excluding FX impact ▪ Net loss (attributable to Axalta) of $13.1 million versus income of $54.9 million in Q3 2017 ▪ Adjusted net income of $77.5 million versus $65.0 million in Q3 2017 ▪
Slide 4: Q3 Consolidated Results
Q3 Consolidated Results Financial Performance Commentary Q3 % Change Solid organic net sales growth including ($ in million) 2018 2017 Incl. F/X Excl. F/X volume growth and continued price-mix Performance 755 694 8.9 % 11.1 % build Transportation 384 398 (3.5)% (0.4)% ▪ Strong volume growth in Refin
Slide 5: Q3 Performance Coatings Results
Q3 Performance Coatings Results Financial Performance Commentary Q3 % Change Strong net sales growth driven by ($ in million) 2018 2017 Incl. F/X Excl. F/X continued price-mix improvement and Refinish 441 395 11.5% 13.9% solid volume growth Industrial 314 298 5.4% 7.2% ▪ Strong Refinish volume growt
Slide 6: Q3 Transportation Coatings Results
Q3 Transportation Coatings Results Financial Performance Commentary Q3 % Change Net sales fairly flat ex-FX with lower ($ in million) 2018 2017 Incl. F/X Excl. F/X average price offsetting modest volume Light Vehicle 299 310 (3.4)% 0.1 % growth Commercial Vehicle 85 89 (4.0)% (2.2)% ▪ Continued disc
Slide 7: Debt and Liquidity Summary
Debt and Liquidity Summary Capitalization Comments ($ in millions) Interest @ 9/30/2018 Maturity ▪ Reduction in leverage rate vs Q2 2018 despite stronger Euro due to Cash and Cash Equivalents $ 588 ▪ Higher LTM EBITDA Debt: Revolver ($400 million capacity) Variable - 2021 ▪ Higher Cash Position Firs
Slide 8: Full Year 2018 Guidance
Full Year 2018 Guidance ($ millions) Q2 Guidance Revised Comments on Revised Guidance ▪ Full year net sales guidance has been Net Sales 8-9% ~8% revised to reflect ~1% FX benefit due to 2H headwinds Net Sales, ex FX 6-7% ~7% ▪ Net sales growth includes M&A contribution Adjusted EBITDA $950-980 $935-
Slide 9: Appendix
Appendix AXALTA COATING SYSTEMS
Slide 10: Full Year 2018 Assumptions
Full Year 2018 Assumptions Macroeconomic Assumptions Currency Assumptions ▪ Global GDP growth of 2018 2017 USD % Impact approximately 3.2% 2017 Average Average Currency % Axalta of FX Rate Rate Rate Net Sales Change Assumption ▪ Global industrial production growth of approximately 3.2% US$ per Euro
Slide 11: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation LTM ($ in millions) FY 2017 Q1 2017 Q2 2017 Q3 2017 Q1 2018 Q2 2018 Q3 2018 9/30/2018 Net Income (loss) $ 48 $ 66 $ (19) $ 56 $ 71 $ 77 $ (12) $ 81 Interest Expense, net 147 36 36 38 39 39 40 156 Provision for Income Taxes 142 10 10 2 12 22 14 168 Depreciation & Amorti
Slide 12: Adjusted EBITDA Reconciliation (cont’d)
Adjusted EBITDA Reconciliation (cont’d) A. During Q3 2017 and Q3 2018 we refinanced our term loans, resulting in losses of $12 million and $8 million, respectively. In addition, during 3Q 2017, we prepaid outstanding principal on our term loans, resulting in non-cash extinguishment losses of $1 mill
Slide 13: Adjusted Net Income (loss) Reconciliation
Adjusted Net Income (loss) Reconciliation ($ in millions) Q3 2017 Q3 2018 Net Income (loss) $ 56 $ (12) Less: Net income attributable to noncontrolling interests 1 2 Net income (loss) attributable to controlling interests 55 (13) A Debt extinguishment and refinancing related costs 1 — B Foreign exch
Slide 14: Adjusted Net Income (loss) Reconciliation (cont’d)
Adjusted Net Income (loss) Reconciliation (cont’d) A. During Q3 2017 we prepaid outstanding principal on our term loans, resulting in non-cash extinguishment losses of $1 million. We do not consider these items to be indicative of our ongoing operative performance. B. Eliminates foreign exchange los
Slide 15: Thank you
Thank you Investor Relations Contact: Chris Mecray Christopher.Mecray@axalta.com 215-255-7970