Slide 1: Q4 & FY 2018 Financial Results
Exhibit 99.2 Q4 & FY 2018 Financial Results January 30, 2019
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 2019 financial projections, which incl
Slide 3: Q4 & Full Year 2018 Highlights
Q4 & Full Year 2018 Highlights ▪ Q4 2018 financial results ▪ Net sales of $1,158 million down 0.6% YoY; growth of 2.7% ex-FX driven by price and mix improvement ▪ Net income (attributable to Axalta) of $75 million vs. a loss of $62 million in Q4 2017; Adjusted net income of $80 million vs. $90 milli
Slide 4: Q4 & Full Year 2018 Highlights (cont'd)
Q4 & Full Year 2018 Highlights (cont'd) ▪ Quarterly end-market observations ▪ Refinish: Strong price-mix outcome ▪ Industrial: Ongoing organic growth, strong price-mix ▪ Light Vehicle: Growth in North America; price-mix turned positive; pressure from slowing economy in China and Europe evident ▪ Com
Slide 5: Q4 Consolidated Results
Q4 Consolidated Results Financial Performance Commentary Q4 % Change Low single-digit ex-FX net sales growth ($ in million) 2018 2017 Incl. FX Excl. FX driven by solid price-mix gains Performance 758 732 3.4 % 6.4 % ▪ Continued price momentum in Refinish Transportation 401 433 (7.4)% (3.7)% and Indu
Slide 6: Q4 Performance Coatings Results
Q4 Performance Coatings Results Financial Performance Commentary Q4 % Change Net sales growth ex-FX driven by strong ($ in million) 2018 2017 Incl. FX Excl. FX price-mix improvement Refinish 454 440 3.1% 6.3% ▪ Continued price contribution across both Industrial 304 292 3.9% 6.6% end-markets and ben
Slide 7: Q4 Transportation Coatings Results
Q4 Transportation Coatings Results Financial Performance Commentary Q4 % Change Net sales down moderately ex-FX with ($ in million) 2018 2017 Incl. FX Excl. FX volume declines offsetting average price Light Vehicle 312 339 (7.9)% (3.9)% and mix benefits Commercial Vehicle 89 94 (5.5)% (3.3)% ▪ Volum
Slide 8: FY Consolidated Results
FY Consolidated Results Financial Performance Commentary FY % Change Solid net sales growth including ($ in million) 2018 2017 Incl. FX Excl. FX acquisition contribution, favorable price- Performance 3,026 2,675 13.1 % 12.0 % mix, and modest volume growth Transportation 1,644 1,678 (2.0)% (1.9)% ▪ S
Slide 9: Debt and Liquidity Summary
Debt and Liquidity Summary Capitalization Comments ($ in millions) Interest @ 12/31/2018 Maturity ▪ Net leverage slightly lower vs. Q3 2018 due to: Cash and Cash Equivalents $ 694 ▪ Higher Cash Position Debt: Revolver ($400 million capacity) Variable - 2021 ▪ Modestly lower Euro First Lien Term Loan
Slide 10: Comments on 2019 Guidance
Comments on 2019 Guidance ($ millions) 2018A 2019E Comments on 2019 Guidance ▪ Net sales growth largely in Performance Coatings, Net Sales +7.3% ~1-2% improved price-mix across all end-markets Net Sales, ex FX +6.7% ~2-3% ▪ 2018 net sales included 3.5% acquisition contribution while minimal assumed
Slide 11: Appendix
A AXALTA Appendix AXALTA COATING SYSTEMS
Slide 12: Full Year 2019 Assumptions
Full Year 2019 Assumptions Macroeconomic Assumptions Currency Assumptions ▪ Global GDP growth of ~2.9% 2019 2018 USD % Impact 2018 Average Average Currency % Axalta of FX Rate ▪ Global industrial production Net Sales Rate Rate Change Assumption growth of ~2.6% ▪ Global auto build growth of US$ per E
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in millions) FY 2018 FY 2017 Q4 2018 Q4 2017 Net Income (loss) $ 213 $ 48 $ 77 $ (56) Interest Expense, net 160 147 41 38 Provision for Income Taxes 54 142 6 120 Depreciation & Amortization 369 347 94 92 Reported EBITDA $ 796 $ 684 $ 218 $ 194 A Debt extinguishment
Slide 14: Adjusted EBITDA Reconciliation (cont'd)
Adjusted EBITDA Reconciliation (cont’d) A. During Q4 2018, FY 2018 and FY 2017 we refinanced our indebtedness, resulting in losses of $1 million, $10 million and $13.0 million, respectively. In addition, during Q3 2017 we prepaid outstanding principal on our term loans, resulting in non-cash extingu
Slide 15: Adjusted Net Income (loss) Reconciliation
Adjusted Net Income (loss) Reconciliation ($ in millions) FY 2018 FY 2017 Q4 2018 Q4 2017 Net Income (loss) $ 213 $ 48 $ 77 $ (56) Less: Net income attributable to noncontrolling interests 6 11 1 6 Net income (loss) attributable to controlling interests $ 207 $ 37 $ 75 $ (62) A Debt extinguishment a
Slide 16: Adjusted Net Income (loss) Reconciliation (cont'd)
Adjusted Net Income (loss) Reconciliation (cont’d) A. During Q4 2018, FY 2018 and FY 2017 we refinanced our indebtedness, resulting in losses of $1 million, $10 million and $13.0 million, respectively. In addition, during Q3 2017 we prepaid outstanding principal on our term loans, resulting in non-c
Slide 17: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ in millions) FY 2018 FY 2017 Q4 2018 Q4 2017 Cash provided by operating activities $ 496 $ 540 $ 251 $ 234 Purchase of property, plant and equipment (143) (125) (34) (38) Interest proceeds on swaps designated as net investment hedges 9 — 4 — Free cash flow $ 362 $ 41
Slide 18: Adjusted EBIT Reconciliation
Adjusted EBIT Reconciliation ($ in millions) FY 2018 Net income $ 213 Interest expense, net 160 Provision for income taxes 54 Reported EBIT $ 427 A Debt extinguishment and refinancing related costs 10 B Termination benefits and other employee related costs 82 C Offering and transactional costs 1 D A
Slide 19: Thank you
Thank you Investor Relations Contact: Chris Mecray Christopher.Mecray@axalta.com 215-255-7970