Slide 1: Q2 2015 Financial Results: August 4, 2015
A X A LTA C O AT I N G S Y S T E M S Q2 2015 FINANCIAL RESULTS: AUGUST 4, 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: Q2 2015 Highlights
Q2 2015 Highlights Overall growth on track for 2015 goals Net sales up 8% YoY, excluding currency, with volume growth in both segments; robust Asia Pacific growth as expected Adjusted EBITDA of $255 million aided by strong volume growth, higher average selling prices, and reduced variable and
Slide 4: Delivering On Our Goals
Delivering On Our Goals Stated Objective Results Delivered • Volumes up 5% and price up 3% in Q2 2015 YoY Grow the Business • Adjusted EBITDA on track for mid- to high-single digit growth in 2015 Launch New Business • Light Vehicle launches ramping as planned to date Increase Emerging Markets •
Slide 5: Q2 Consolidated Results
Q2 Consolidated Results Financial Performance Commentary Q2 % Change Net sales increased 8.2% excluding ($ in millions) 2015 2014 Incl. F/X Excl. F/X currency Performance 639 665 (3.9%) 8.2% Strong volume growth across all regions Transportation 455 462 (1.4%) 8.1% and segments Net Sales 1,094 1,1
Slide 6: Q2 Performance Coatings Results
Q2 Performance Coatings Results Financial Performance Commentary Q2 % Change Net sales increased 8.2% excluding ($ in millions) 2015 2014 Incl. F/X Excl. F/X currency Refinish 460 471 (2.3%) 10.0% Refinish net sales grew in all regions Industrial 179 194 (7.9%) 3.8% Solid Industrial volume growt
Slide 7: Q2 Transportation Coatings Results
Q2 Transportation Coatings Results Financial Performance Commentary Q2 % Change Net sales increased 8.1% excluding ($ in millions) 2015 2014 Incl. F/X Excl. F/X currency Light Vehicle 347 364 (4.5%) 5.5% Light Vehicle net sales increases led by Commercial Vehicle 108 98 10.1% 17.9% Asia Pacific an
Slide 8: Cost Optimization Initiatives Progressing Well
Cost Optimization Initiatives Progressing Well Fit-For-Growth: $100 million savings plan is on budget Methodically tracking progress towards established goals $60 million incremental savings expected to be realized over 2015-2017 on linear path The Axalta Way: $100 million savings targeted
Slide 9: Debt and Liquidity Summary
Debt and Liquidity Summary Capitalization Net Leverage ($ in millions) @ 6/30/2015 Maturity 5.6x Cash and Cash Equivalents $308 Debt(1): 5.1x Revolver ($400 million capacity) - 2018 5.0x First Lien Term Loan (USD) 2,097 2020 First Lien Term Loan (EUR) (2) 428 2020 4.6x Senior Secured Notes (EUR) (2)
Slide 10: Full Year 2015 Guidance
Full Year 2015 Guidance Net Sales Growth: 5-7% excluding F/X; down low- to mid-single digits as- reported Growth across all regions and end-markets, excluding F/X impact, which is a significant headwind, though primarily translational with production and sales fairly balanced by region Perform
Slide 11: Appendix
APPENDIX
Slide 12: Full Year 2015 Assumptions
Full Year 2015 Assumptions Macroeconomic Assumptions Currency Assumptions Global GDP growth of Feb ‘15 Aug ‘15 % Change % Axalta 2014 approximately 3% Currency Guidance Guidance in F/X Net Sales Avg. Rate Rate Rate Rate Global industrial production growth of approximately 4% US$ per Euro ~30% 1.
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation LTM ($ in millions) FY 2014 Q1 2014 Q2 2014 Q1 2015 Q2 2015 6/30/2015 Net Income (Loss) $35 ($4) $56 $47 ($24) $5 Interest Expense 217 59 55 50 49 203 Provision (Benefit) for Income Taxes 2 12 (1) 1 30 22 Depreciation & Amortization 309 81 72 73 78 306 Reported EBITDA
Slide 14: Adjusted EBITDA Reconciliation (cont'd)
Adjusted EBITDA Reconciliation (cont’d) A. During the three and six months ended June 30, 2015, we recorded a non-cash fair value inventory adjustment associated with an acquisition. These amounts increased cost of goods sold by $1 million. B. In connection with an amendment to the Senior Secured Cr
Slide 15: Axalta Coating Systems
AXALTA COATING SYSTEMS