Axalta Coating Systems Ltd. · NYSE:AXTA

Axalta Coating Systems — Investor Day (December 2015)

130 slides from Axalta Coating Systems's investor day presentation, Dec 4, 2015

1. Slide 1: Analyst & Investor Day December 4, 2015

   Axalta Coating Systems Ltd. Analyst & Investor Day December 4, 2015 Exhibit 99.2

2. Slide 2: Forward-Looking Statements

   PROPRIETARYAXALTA COATING SYSTEMS 2 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 sales, adjusted EBIT

3. Slide 3: Key Messages For The Day

   PROPRIETARYAXALTA COATING SYSTEMS 3 Key Messages For The Day  Axalta continues its transition from an operating segment to an independent, high-performing company  Axalta has made significant progress towards its goals, but there is far more still to come  We have multiple paths to create value i

4. Slide 4: Analyst & Investor Day Agenda

   PROPRIETARYAXALTA COATING SYSTEMS 4 9:00 AM Introduction and Agenda Chris Mecray, VP, Investor Relations 9:05 AM Axalta Overview & Business Outlook Charlie Shaver, Chairman & CEO 9:30 AM Financial Overview & Outlook Robert Bryant, EVP & CFO 9:50 AM Performance Coatings: Refinish Nigel Budden, VP, Gl

5. Slide 5: Axalta Overview and Business Outlook

   Axalta Overview and Business Outlook Charlie Shaver Chairman & CEO

6. Slide 6: Key Messages For The Day

   PROPRIETARYAXALTA COATING SYSTEMS 6  Axalta continues its transition from an operating segment to an independent, high-performing company  Axalta has made significant progress towards its goals, but there is far more still to come  We have multiple paths to create value including top line growth,

7. Slide 7: Axalta's Transition: The Carve-Out & Early Progress

   PROPRIETARYAXALTA COATING SYSTEMS Axalta’s Transition: The Carve-Out & Early Progress Axalta’s First Two Years Were Largely Focused on the Separation  Initial Separation  New leadership, talent upgrades  Early Operating Actions:  Stand up end-markets  Initial growth strategy  Launch ‘Fit-For-G

8. Slide 8: Axalta – A Global Leader In Coatings

   PROPRIETARYAXALTA COATING SYSTEMS Refinish $1.8 B Industrial $0.7 B Body Shops Light Vehicle $1.3 B CV $0.4 B Performance Coatings General Industrial, Electrical Insulation, Architectural Transportation Coatings Sales1 - $4,162 M Adjusted EBITDA1,2 - $859 M Adjusted EBITDA Margin2 - 20.6% Light Vehi

9. Slide 9: 2015 Progress: Delivering On Our Goals

   PROPRIETARYAXALTA COATING SYSTEMS Stated Objective Results Delivered Grow the Business Execute Productivity Initiatives Launch New Business Wins Increase Emerging Markets Presence  Volume and price up 5.5% for the 9 months YTD 2015  Solid margin expansion achieved in 2015  On track for ~$50 milli

10. Slide 10: Axalta Operates Fundamentally Strong Businesses

    PROPRIETARYAXALTA COATING SYSTEMS 10 Axalta Operates Fundamentally Strong Businesses A Global Leader in Our Markets Significant Competitive Advantages A Service-Led Business Model Structurally Attractive End Markets Highly Variable Cost Structure; Low Capital Intensity

11. Slide 11: A Global Leader In Our Markets

    PROPRIETARYAXALTA COATING SYSTEMS 11 A Global Leader In Our Markets Axalta’s Global Scale Enables Market Leadership ____________________________ 1. Mexico is included in Latin America 2. Includes 9 JV facilities.  36 manufacturing facilities  46 customer training sites  7 technology centers  ~12

12. Slide 12: A Global Leader In Our Markets

    PROPRIETARYAXALTA COATING SYSTEMS Peer 1 24% Axalta 19% Peer 2 18% Peer 3 13% Other 26% 12 A Global Leader In Our Markets ~90% of Sales from Markets Where Axalta Has #1 or #2 Global Share Axalta 25% Peer 1 20% Peer 2 11% Peer 3 11% Other 33% Performance Coatings: Refinish Transportation Coatings: Li

13. Slide 13: Significant Competitive Advantages

    PROPRIETARYAXALTA COATING SYSTEMS 13 Significant Competitive Advantages Differentiated Franchise with Global Scale and Strong Competitive Advantages  4+ million color variations  Hundreds of formulations in automotive & industrial  Deep coatings heritage since 1866  Broad brand portfolio  1,300

14. Slide 14: Well-Positioned to Benefit From Industry Trends

    PROPRIETARYAXALTA COATING SYSTEMS Industry Trends Axalta Technologies OEM Vehicle Light-Weighting  Broad substrate coating applicability for next generation materials Growth in Multi-Shop Operators (“MSO”)  Axalta’s waterborne technology improves MSO productivity and our national coverage enables

15. Slide 15: Axalta Employs A Service-Led Business Model

    PROPRIETARYAXALTA COATING SYSTEMS 15 Axalta Employs A Service-Led Business Model Critical Functionality at a Relatively Low Cost 1 Compelling Value Proposition Where Product Cost is Not the Main Driver Light & Commercial Vehicle: <1% of a new vehicle’s cost Industrial: Critical to function, durabili

16. Slide 16: Structurally Attractive Global End-Markets

    PROPRIETARYAXALTA COATING SYSTEMS 16 Structurally Attractive Global End-Markets Strong Coatings Growth Outlook Long Term Alignment With Global Growth  Refinish: Car parc, miles driven and collision rates  Light Vehicle: Emerging economies and middle classes; ongoing consumer strength in developed

17. Slide 17: Highly Variable Cost Structure And Low Capital Intensity

    PROPRIETARYAXALTA COATING SYSTEMS 17 Highly Variable Cost Structure And Low Capital Intensity  ~50% of COGS come from variable raw material inputs  Utilize temporary labor to enable wage structure flexibility  Toggle other costs as needed in a downturn, including both variable and semi-fixed Low

18. Slide 18: Key Messages For The Day

    PROPRIETARYAXALTA COATING SYSTEMS 18 Key Messages For The Day  Axalta continues its transition from an operating segment to an independent, high-performing company  Axalta has made significant progress towards its goals, but there is far more still to come  We have multiple paths to create value

19. Slide 19: We Are Driving Long Term Growth

    PROPRIETARYAXALTA COATING SYSTEMS 19 We Are Driving Long Term Growth 1.65 1.72 Organic Growth + FCF Deployment = Strong Topline Growth  Stable core growth assumed in the period, with strongest growth rate from Industrial  Free cash flow will likely be used to reduce net debt to EBITDA leverage to

20. Slide 20: Axalta Has Made Solid Progress To Date

    PROPRIETARYAXALTA COATING SYSTEMS 3.4% 2.7% 4.0% 5.5% 2012 2013 2014 Q3'15 YTD Axalta’s Has Made Solid Progress To Date Key Observations Building a Track Record of Strong Profitable Growth Axalta’s Growth Record Robust Net Sales Growth (YoY Net Sales, Excl. FX) Solid Adjusted EBITDA Growth (Adj. EBI

21. Slide 21: Updated Expectations For 2015

    PROPRIETARYAXALTA COATING SYSTEMS Updated Expectations For 2015 Full Year 2015 Targets Have Been Challenged by Several Persistent External Headwinds  Foreign currency pressure has continued to mount into Q4 beyond previously contemplated headwinds  Latin America results likely impacted by further

22. Slide 22: We Expect Progress To Continue In 2016

    PROPRIETARYAXALTA COATING SYSTEMS We Expect Progress To Continue In 2016 2016 Benefits from Ongoing Growth and Maturity of Productivity Programs  Organic sales growth expected to continue  Margin expansion expected to continue, driven by volume, price, cost reduction  Tailwinds from ongoing input

23. Slide 23: Key Messages For The Day

    PROPRIETARYAXALTA COATING SYSTEMS 23 Key Messages For The Day  Axalta continues its transition from an operating segment to an independent, high-performing company  Axalta has made significant progress towards its goals, but there is far more still to come  We have multiple paths to create value

24. Slide 24: Axalta's Future State: A Global, High-Performing, Coatings Leader

    PROPRIETARYAXALTA COATING SYSTEMS Axalta’s Future State: A Global, High-Performing, Coatings Leader Consistent Growth Margin Expansion Effective Capital Allocation Enhanced Shareholder Returns Axalta’s Vision To maximize our customers’ productivity and product functionality by offering them innovati

25. Slide 25: Axalta Aims To Grow The Business While Refining The Cost Structure

    PROPRIETARYAXALTA COATING SYSTEMS 25 Axalta Aims To Grow The Business While Refining The Cost Structure Visible Growth Supported by Clear Strategies & Enhanced Resources Focus on Emerging Markets for Long Term Opportunity Globalizing Existing Products to Reach Underserved Markets Optimizing Procurem

26. Slide 26: Cost Initiatives To Enhance Productivity & Efficiency

    PROPRIETARYAXALTA COATING SYSTEMS 26 Cost Initiatives To Enhance Productivity & Efficiency Fit-For-Growth (Europe): $100 million targeted savings • Right-size staffing levels + wage & benefit restructuring • Rationalize manufacturing and logistics • Invest in automation Initial carve-out actions: •

27. Slide 27: Effective Capital Deployment: The Driver Of Shareholder Returns

    PROPRIETARYAXALTA COATING SYSTEMS 5.6x 5.1x 5.0x 4.6x 4.5x 4.3x 4.1x 3.8x 4.0x 3.7x 3.7x At LBO Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 2015 27 Effective Capital Deployment: The Driver Of Shareholder Returns Capital Allocation Priorities Our Capital Allocation Targets Efficient Use of Capital to Max

28. Slide 28: Key Messages For The Day

    PROPRIETARYAXALTA COATING SYSTEMS 28 Key Messages For The Day  Axalta continues its transition from an operating segment to an independent, high-performing company  Axalta has made significant progress towards its goals, but there is far more still to come  We have multiple paths to create value

29. Slide 29: Axalta's Evolution Is Grounded In Fundamental Goals

    PROPRIETARYAXALTA COATING SYSTEMS 29 Axalta’s Evolution Is Grounded In Fundamental Goals Leverage our culture of accountability and focus on operational excellence Axalta’s Strategy Grow in targeted industrial coatings segments via organic growth and selective acquisitions Move into attractive adjac

30. Slide 30: Axalta's Strategy: Grow Core Products & Markets

    PROPRIETARYAXALTA COATING SYSTEMS 30 Axalta’s Strategy: Grow Core Products & Markets Refinish ____________________ Source: Axalta estimates Strong Momentum Driven by Customer-Centric Approach Axalta MSO Market Share 2013 Today Light Vehicle  Axalta is gaining share by partnering with market winners

31. Slide 31: Axalta's Strategy: Accelerate Growth In Emerging Markets

    PROPRIETARYAXALTA COATING SYSTEMS $14.3 $15.6 $17.1 $18.5 $20.1 2014E 2015E 2016E 2017E 2018E Emerging Markets, 31% 31 Axalta’s Strategy: Accelerate Growth In Emerging Markets China Example Light Vehicles, Per 1,000 People China Car Parc (thousands) 743 263 230 129 61 19 United States Central & East

32. Slide 32: Axalta's Strategy: Targeted Industrial Coatings Expansion

    PROPRIETARYAXALTA COATING SYSTEMS Architectural 32 Axalta’s Strategy: Targeted Industrial Coatings Expansion Growth from Leveraging Our Product Portfolio in Underserved Markets  Strong product portfolio in powder, liquid, and e-coat  Implemented global end-market business structure to capitalize o

33. Slide 33: Axalta's Strategy: Focus On Operating Excellence

    PROPRIETARYAXALTA COATING SYSTEMS Axalta’s Strategy: Focus On Operating Excellence  Balanced manufacturing footprint and capacity  Ongoing productivity investments  Salesforce reorganization  R&D / Technology enablers  Enhanced IT tools  Procurement roadmap  Process improvement Leadership and

34. Slide 34: Financial Overview and Outlook

    Financial Overview and Outlook Robert Bryant EVP & CFO

35. Slide 35: Connecting Performance To Shareholder Returns

    PROPRIETARYAXALTA COATING SYSTEMS 35 Axalta Is Focused On Connecting Performance To Shareholder Returns Underlying Market Growth Axalta Growth Initiatives Operational Improvements M&A Structural demand growth  Industry trends favor global suppliers Momentum driven by customer-centric approach  L

36. Slide 36: Our Results To Date Have Shown Solid Progress

    PROPRIETARYAXALTA COATING SYSTEMS Our Results To Date Have Shown Solid Progress Encouraging Margin Progress, but Currency Mutes Net Sales and EBITDA Net Sales Adjusted EBITDA ($ in millions) ($ in millions) 36 $3,500 $3,700 $3,900 $4,100 $4,300 $4,500 $4,700 2010 2011 2012 2013 2014 2015E Net Sales

37. Slide 37: Our Results To Date Have Shown Solid Progress

    PROPRIETARYAXALTA COATING SYSTEMS Our Results To Date Have Shown Solid Progress Net sales increased 5.5% excluding currency  Volume growth across all regions and global end-markets  Positive price contribution led by Latin America  11.6% FX impact a notable detractor and progressively greater hea

38. Slide 38: Our Financial Scorecard

    PROPRIETARYAXALTA COATING SYSTEMS 38 Our Financial Scorecard Is Focused On Growing The Business Profitably Grow The Business Grow Adjusted EBITDA 2015E Net Sales: +5%  Refinish: Stable global growth, North America MSO trend continues apace  Industrial: Acceleration begins with new resources applie

39. Slide 39: The Axalta Way: Driving Towards World Class Productivity

    PROPRIETARYAXALTA COATING SYSTEMS The Axalta Way: Driving Towards World Class Productivity Our Goal: $200 million of Adjusted EBITDA savings on a run-rate basis exiting 2017 Cumulative Productivity Initiative Savings ($ in millions) The Axalta Way: “A focused approach to doing business that drives p

40. Slide 40: The Axalta Way: Buckets Of Opportunity

    PROPRIETARYAXALTA COATING SYSTEMS The Axalta Way: Buckets Of Opportunity  Commercial process excellence  Dynamic pricing and consistent terms  Improved salesforce training / capability building The Axalta Way: 2016E 2016E savings: ~$40 million Commercial Operations / Procurement / Technology SG&A

41. Slide 41: The Axalta Way: Opportunity Evolution

    PROPRIETARYAXALTA COATING SYSTEMS 41 The Axalta Way: Opportunity Evolution  Headcount reduction  Indirect procurement  Initial commercial excellence  Business and support function overhead  Technology  Non-manufacturing footprint  Direct procurement  Ramp up of commercial excellence  Simpli

42. Slide 42: Our Financial Guiding Principles

    PROPRIETARYAXALTA COATING SYSTEMS 42 Our Financial Guiding Principles Managing the Capital: Capex Prioritization Metrics-Based Management: Driving the Business with Data Capital Allocation: Improved ROIC Financial Optimization

43. Slide 43: Prioritization Of Capital Spending; Focus On High IRR Capex

    PROPRIETARYAXALTA COATING SYSTEMS Prioritization Of Capital Spending; Focus On High IRR Capex  Maintenance capital: $60 million per year  Growth investments  4 capex projects on track to be completed in 2015  Wuppertal, Germany  Jiading, China  Mexico City, Mexico  Guarulhos, Brazil  Product

44. Slide 44: Effective Capital Allocation Should Drive Improved Returns

    PROPRIETARYAXALTA COATING SYSTEMS Effective Capital Allocation Should Drive Improved Returns Notes: 1) ROIC = Net Operating Profit After Tax (NOPAT) / (Total Debt + Preferred Stock + Minority Interest + Equity); 2) AXTA total capital excludes identified intangible assets; 3) Data as of LTM Q3 2015 

45. Slide 45: Capital Allocation: Best Uses Of Excess Cash Flow

    PROPRIETARYAXALTA COATING SYSTEMS Capital Allocation: Driving Returns With Best Uses Of Excess Cash Flow  Organic growth options: Generally the “highest and best use”  In-plant productivity investment  Growth with existing markets with strong incremental margins  M&A: Discipline is key to improv

46. Slide 46: Capitalization: Debt And Liquidity Summary

    PROPRIETARYAXALTA COATING SYSTEMS 5.6x 5.1x 5.0x 4.6x 4.5x 4.3x 4.1x 3.8x 4.0x 3.7x 3.7x At LBO Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 2015 Capitalization 46 Debt And Liquidity Summary (1) Retroactively adopted new accounting guidance, ASU 2015-03, to include deferred financing costs (2) Assumes ex

47. Slide 47: 2016 Preliminary Targets & Outlook

    PROPRIETARYAXALTA COATING SYSTEMS Stated Objective Results Expected Grow the Business Steady Working Capital Grow EBITDA Reduce Net Debt Leverage  Sales target: +4-6% pre-FX  4 Year sales objective: $6+ billion including M&A  Expect WC / sales at 13-15%  Solid medium-term potential to drive incr

48. Slide 48: Summary Of Our Investment Case

    PROPRIETARYAXALTA COATING SYSTEMS Summary Of Our Investment Case  Axalta operates a fundamentally strong set of businesses  The Refinish business provides Axalta with a strong foundation  We still have many layers of self-help to execute  We believe we can outgrow the market in each business ove

49. Slide 49: Performance Coatings: Refinish

    Performance Coatings: Refinish Nigel Budden VP, Global Customer Excellence

50. Slide 50: Axalta Refinish Investment Summary

    PROPRIETARYAXALTA COATING SYSTEMS  The global refinish market is structurally growing and well consolidated  End-market growth ~3% per year through 2019  The top four players hold two-thirds global market share  We are a global leader; refinish provides a strong foundation for Axalta  #1 player

51. Slide 51: The Global Refinish Market Is Growing

    PROPRIETARYAXALTA COATING SYSTEMS The Global Refinish Market Is Growing Projected Industry Sales ($ in billions) Asia Pacific EMEA North America 6.3% 0.8% 2.2% 2.6%$2.4 $2.5 $2.6 $2.6 $2.7 $3.2 $3.2 $3.3 $3.4 $3.5 $0.9 $1.0 $1.0 $1.0 $1.0 $1.6 $1.8 $1.9 $2.0 $2.1 2015E 2016E 2017E 2018E 2019E ’15 –

52. Slide 52: Axalta Has A Very Strong Position In Refinish Globally

    PROPRIETARYAXALTA COATING SYSTEMS Axalta Has A Very Strong Position In Refinish Globally Global Share Position Key Market Trends Axalta 25% Peer 1 20% Peer 2 11% Peer 3 11% Peer 4 5% Other 28% Refinish Industry Sales: ~$7.4 billion #1  Drivers include size of car parc, miles driven, and accident ra

53. Slide 53: The Refinish Market Uses A Sell Through Model

    PROPRIETARYAXALTA COATING SYSTEMS Direct Sales Coatings The Refinish Market Uses A “Sell Through” Model  Top 4 players ~67% market share  Historically stable industry dynamics with annual price increases  Database of millions of colors  Shift from solventborne to waterborne over long-term  Frag

54. Slide 54: The Refinish Process At A Glance

    PROPRIETARYAXALTA COATING SYSTEMS The Refinish Process At A Glance  Incident occurs, vehicle not totaled C o n s u me r B o d y Sh o p  Consumer contacts insurance company  May be directed to “preferred” shops nearby  Consumer drops off car, often provided a rental car by insurance Accident Call

55. Slide 55: Refinish Products: The Paint Layers

    PROPRIETARYAXALTA COATING SYSTEMS 55 Refinish Products: The Paint Layers Clearcoat  Protects basecoat from the elements  Gives automobile its lustrous look Basecoat  Creates automobile’s color and aesthetics  Provides corrosion protection  Waterborne and solventborne technology options Primer S

56. Slide 56: Axalta Basecoat Technologies

    PROPRIETARYAXALTA COATING SYSTEMS Axalta Basecoat Technologies Solventborne Low VOC Solventborne Waterborne Upfront Investment for Body Shop LOW LOW HIGH Paint Cost for Body Shop LOW MEDIUM HIGH Productivity MEDIUM MEDIUM HIGH Spray Application Difficulty NORMAL NORMAL MORE COMPLEX Typical Customers

57. Slide 57: Refinish North America: Industry Overview

    PROPRIETARYAXALTA COATING SYSTEMS  Industry repair revenue flattish in recent years, but body shops consolidating  90% of collision revenue is insurance paid  A highly fragmented customer base with opportunity to improve productivity  Stable demand driven by accident rates, and paid mainly by i

58. Slide 58: Refinish North America: Overview & Strategy

    PROPRIETARYAXALTA COATING SYSTEMS Refinish North America: Overview & Strategy Overview & Strategy Aligned with key industry trends  Extensive formulation databases needed for color match  Advanced technology used to protect and visually enhance the vehicle while meeting environmental regulations 

59. Slide 59: Refinish North America: Market Dynamics

    PROPRIETARYAXALTA COATING SYSTEMS ‘BIG 4’ GROWTH (LOCATIONS) DRP WORKFLOW ALLOCATED TO MSOs Refinish North America: Market Dynamics 58% 70% 75% 1995 2013 2019 1 ‘TOP 10’ INSURERS MARKET SHARE The insurance market continues to consolidate; Insurers continue to push Direct Repair Programs (DRPs) to lo

60. Slide 60: Refinish North America: Focus On Service

    PROPRIETARYAXALTA COATING SYSTEMS Axalta Actions Axalta Market Share with “Big 4” MSOs Axalta has gained share with these important customers  Key account management team set up to focus on MSOs  #1 market position with ‘Big 4’ MSOs  MSO customers are growing with regular acquisitions Refinish No

61. Slide 61: Refinish EMEA: A Foundational Business For Axalta

    PROPRIETARYAXALTA COATING SYSTEMS Refinish EMEA: A Foundational Business For Axalta 61 A Leader In The Region A Proven Strategy  The largest global refinish market (~$2.5 B)  Axalta is an EMEA refinish leader, including highly productive and innovative products, a strong distribution network, and

62. Slide 62: Refinish Asia Pacific: The China Opportunity

    PROPRIETARYAXALTA COATING SYSTEMS Refinish Asia Pacific: The China Opportunity Overview Axalta Refinish Sales Strong Fundamental Demand Light Vehicles Per Capita (2013) Car Parc Collision Rates (2011) (Car Parc in Millions) 2011A 2012A 2013A 2014A 2015E 2016E 2017E 50 62 77 93 110 129 149 170 193 21

63. Slide 63: Refinish Latin America: Building On A Market Leadership Position

    PROPRIETARYAXALTA COATING SYSTEMS Refinish Latin America: Building On A Market Leadership Position 63 A Leader In The Region A Proven Strategy  A $900 M regional Refinish market  Axalta is the market leader in premium coatings  We have a substantial share with high productivity body shops  We ar

64. Slide 64: Axalta Refinish Summary

    PROPRIETARYAXALTA COATING SYSTEMS Axalta Refinish Summary 64  A global market leader in a great business  Strong market presence enables expansion across all regions  Technology innovation supports competitiveness  Refinish benefits from favorable market dynamics  Positive drivers support proje

65. Slide 65: Performance Coatings: Industrial Coatings

    Performance Coatings: Industrial Coatings Michael Cash SVP, President, Industrial

66. Slide 66: Industrial Coatings Investment Summary

    PROPRIETARYAXALTA COATING SYSTEMS  Axalta’s industrial coatings markets are projected to grow 5% through 2019  The market is highly fragmented with broad-based demand drivers  Industrial coatings are adopting more environmentally-friendly coatings  Axalta is a relatively small player today  Foc

67. Slide 67: The Industrial Coatings Market

    PROPRIETARYAXALTA COATING SYSTEMS ’15-‘19E CAGR($ in billions) Asia Pacific EMEA North America 6.2% 4.0% 3.0% 3.5% 4.9% $6.8 $7.0 $7.3 $7.5 $7.8 $8.1 $10.0 $10.3 $10.6 $10.9 $11.3 $11.6 $1.7 $1.8 $1.8 $1.9 $2.0 $2.1 $21.2 $22.5 $23.9 $25.4 $27.0 $28.6 2015E 2016E 2017E 2018E 2019E 2020E $50.4 ______

68. Slide 68: Industrial Coatings: A $28 B Market Opportunity

    PROPRIETARYAXALTA COATING SYSTEMS General Industrial $15.0 Electrical Insulation $2.0 Architectual Extrusions $1.5 ACE $1.5 Oil & Gas $3.5 Coil $4.5 Industrial Coatings: A $28 B Market Opportunity For Axalta Product Examples Market Drivers General Industrial  Metal furniture  Appliances  Shelving

69. Slide 69: Industrial Coatings Product Milestones

    PROPRIETARYAXALTA COATING SYSTEMS 2014 - 2015 Globalize reach of Abcite™ and Alesta® powder coatings Launch Alesta® ZeroZinc powder products Celebrate 50 years of commercial powder coatings Launch new generation Voltatex® C6 electrical steel varnish Rebrand all Axalta electrocoat products under unif

70. Slide 70: Industrial Coatings Market Segments

    PROPRIETARYAXALTA COATING SYSTEMS Architectural Industr ial S e gment s Electrical Insulation Systems (EIS) Oil & Gas Pipelines Agriculture, Construction and Earth Moving Equipment (ACE) General Industrial Heavy Duty Coatings Metal Furniture & Playground Equipment Valves & Rebar LIQUIDPOWDER E-COAT

71. Slide 71: Industrial Coatings Technologies

    PROPRIETARYAXALTA COATING SYSTEMS  An economical, versatile and low-VOC coating solution commonly used in small and large paint shops around the world POWDER LIQUID E-COAT SPECIALTY COATINGS  Electrical Insulation Systems (EIS)  Wire Enamels insulate windings wire in electrical devices  Impregna

72. Slide 72: What Industrial Coatings Customers Value

    PROPRIETARYAXALTA COATING SYSTEMS  Live application support  Durability & corrosion protection  Lean manufacturing and quick response  Diverse set of technologies: E-Coat, Powder, Liquid  Ability to service customers consistently in all parts of the world What Industrial Coatings Customers Valu

73. Slide 73: Industrial Product Technologies

    PROPRIETARYAXALTA COATING SYSTEMS Segment Coatings Technology 1. Excludes decorative house paint (X%) Percentage of Axalta sales in segment Architectural extrusion1 General industrial Oil & Gas ACE Electrical insulation E-Coat (25%) (15%) PowderLiquid (10%) (10%) (100%) (60%) (90%) (65%) (25%) (100%

74. Slide 74: Axalta's Industrial Business Today

    PROPRIETARYAXALTA COATING SYSTEMS General Industrial 53% Architectural 16% EIS 14% ACE 10% Oil & Gas 7% Net Sales by Segment Business Overview Steady volume growth driven by global GDP  China growth expected to exceed 7.5%  Architectural market expected to grow steadily Supplier consolidation cont

75. Slide 75: Axalta Industrial Coatings: Manufacturing Sites

    PROPRIETARYAXALTA COATING SYSTEMS South AfricaMexico Colombia United Kingdom China USA Brazil IndiaAustralia Venezuela Guatemala Indonesia Malaysia Sweden GermanyArgentina Axalta Industrial Coatings: Manufacturing Sites 75

76. Slide 76: Global Industrial Growth & Innovation: Product Launches

    PROPRIETARYAXALTA COATING SYSTEMS AquaEC E-Coat 2000 / 6000 series Alesta Global Colors Collection 2nd Edition Global Industrial Growth & Innovation: Product Launches Architectural AAMA compliant coatings Next generation pipe coating and rebar products Mainstream wire enamel and impregnating resin p

77. Slide 77: Global Industrial Growth: Awards and Approvals

    PROPRIETARYAXALTA COATING SYSTEMS Global Industrial Growth: Awards and Approvals  Received 5 new Caterpillar approvals with AquaEC™ 3000 in Europe. These 5 products represent qualities that will significantly enhance our ability to go after Caterpillar and their sub suppliers in Europe  Axalta Coa

78. Slide 78: Global Industrial Growth: New Wins And Successes

    PROPRIETARYAXALTA COATING SYSTEMS Global Industrial Growth: New Wins And Successes Four new projects throughout China The Chong Qing Bei Jun Business Center, the Jinan Center, the Dongguan World Trade Center, and the Fuzhou MIXC Complex Panama Canal Four-year contract to supply industrial coatings a

79. Slide 79: Global Industrial Growth: New Wins And Successes

    PROPRIETARYAXALTA COATING SYSTEMS Weber Won six colors for Weber’s Q series grills  First time a Hi-Temp powder technology produced such unique colors  Leveraged Q series success to win Weber’s Hi-Temp frame business Shanghai Electric Group One of the largest mechanical and electrical equipment ma

80. Slide 80: Growth Priorities & Strategies

    PROPRIETARYAXALTA COATING SYSTEMS Growth Priorities & Strategies Axalta Industrial: Where We Are Going… Agriculture, Construction & Earth Moving Equipment (ACE)  Expand approval portfolio with all 3 technologies  Utilize global footprint to target new business in all regions Architectural  Market

81. Slide 81: Summary Of Key Messages

    PROPRIETARYAXALTA COATING SYSTEMS Summary Of Key Messages 81  Industrial coatings represents a great growth engine opportunity  Our growth will be both organic and acquisition-driven  We are building on strengths in technology and market access  We have built a customer-centric industrial sales

82. Slide 82: Transportation Coatings Overview

    Transportation Coatings Overview Steven R. Markevich EVP, President Transportation Coatings and Greater China

83. Slide 83: Segment Overview

    PROPRIETARYAXALTA COATING SYSTEMS Segment Overview Global co-lead supplier to OEMs Transportation Light Vehicle  Original Equipment Manufacturers  Plastics and composite materials  Metal coatings #1 global supplier to heavy duty truck and bus segments Commercial Vehicle  Commercial trucks  Rail

84. Slide 84: Delivering Value to Customers

    PROPRIETARYAXALTA COATING SYSTEMS Customer Value And Content Approximate Value Per Vehicle Customers Global 84 Productivity Color Service Environmental Delivering Value to Customers $20 $30 $20 $40 $150 $60 $225 $550 LV HDT Bus E-coat Primer Topcoat $100 $295 $700

85. Slide 85: Transportation Summary

    PROPRIETARYAXALTA COATING SYSTEMS  19% global light vehicle market share with strong OEM relationships in all regions  #1 player globally in heavy duty truck and bus  Extensive portfolio of technologies fit for purpose in each market  Showing results to date through business wins and global laun

86. Slide 86: Structurally Growing Markets

    PROPRIETARYAXALTA COATING SYSTEMS Structurally Growing Markets 86 Market Growth: Light Vehicle Market Growth: Commercial Vehicle _____________________________ Source: Orr & Boss; Axalta estimates Asia Pacific Latin America EMEA North America 3.6% 6.5% 2.6% 0.2% 3.0% 1.2 1.3 1.3 1.2 1.2 2.0 2.1 2.1 2

87. Slide 87: Key Market Trends

    PROPRIETARYAXALTA COATING SYSTEMS 87 Key Market Trends  Volatile organic compounds (VOCs)  Toxic substances  Coatings for new lightweight materials to improve fuel economy Government Regulations Emerging Markets Industry Globalization Demand for Productivity Color and Protection  Near-term uncer

88. Slide 88: Transforming A Global Coatings Supplier

    PROPRIETARYAXALTA COATING SYSTEMS Axalta 19% Transforming A Global Coatings Supplier Global Share 88 Axalta 31%  Axalta is a global leader in transportation coatings  Globalizing and harmonizing our coatings technology  Bringing brighter colors and more effects to color design  Aligning global R

89. Slide 89: Vision Is Above-Market Growth

    PROPRIETARYAXALTA COATING SYSTEMS Vision Is Above-Market Growth  Gain share with existing customers  Grow underserved customers and regions  Align product technology to evolving customer and market needs  Increase content per vehicle  Leverage “what good looks like” into new regions, customers

90. Slide 90: Segmenting Our Markets

    PROPRIETARYAXALTA COATING SYSTEMS Segmenting Our Markets Light Vehicle HDT Specialty OEM Bus Rail General Aviation Body Builders & Trailers Estimated Market Size $8,100M $500M $550M $200M $600M $45M $400M Product Examples Passenger cars Pick Ups / SUVs  Light commercial vehicles Component parts

91. Slide 91: Segment Specific Strategies In Our Target Markets

    PROPRIETARYAXALTA COATING SYSTEMS 91 We Are Growing With Segment Specific Strategies In Our Target Markets  China expansion to mainstream and economy segments  Leverage high speed rail success  SprayFlex FS interior floor coatings  Leverage global accounts  Gain share in tier part suppliers  C

92. Slide 92: Building Transportation Products And Brands

    PROPRIETARYAXALTA COATING SYSTEMS Corlar ™ Primer AquaEC™ Electrocoat Alesta® Powder Coatings Imron® Chassis Products Imron® Elite Topcoat CV Brands used in Aftermarket 92 Eco-concept Primerless System Vermeera™ SuperMar and Protect 2K Clear Gen ™ 4 and 5 1K Clear Harmonized Coating Technologies Bui

93. Slide 93: We Have Enablers To Meet Our Growth Goals

    PROPRIETARYAXALTA COATING SYSTEMS 93 We Have Enablers To Meet Our Growth Goals  Step change improvement in customer productivity  Color palette expansion  Corrosion enhancements in undercoats  Lower mainstream and economy products  Expand consolidated process for all markets  Meet future regul

94. Slide 94: Light Vehicle Production vs Axalta Volumes

    PROPRIETARYAXALTA COATING SYSTEMS 94 Light Vehicle Production vs Axalta Volumes CommentaryGrowth Outpaces LV Market  H1 2015 Light Vehicle growth significantly outpaced the global market due to launch activity and recent wins  Q3 volumes were impacted by the production pullback in China and shift

95. Slide 95: Productivity Case Study: 2-Wet Monocoat Technology

    PROPRIETARYAXALTA COATING SYSTEMS Productivity Case Study: 2-Wet Monocoat Technology  Background  Customer was preparing to launch compact 2-wet SB product for large vans  Two months prior to launch, Axalta was contacted for review and support of launch  Axalta had successfully launched this tec

96. Slide 96: Launch Service Case Study: Leading Product Technologies

    PROPRIETARYAXALTA COATING SYSTEMS 96 Launch Service Case Study: Leading Product Technologies  Background  High-demand luxury SUV was receiving poor ratings for overall paint appearance  Vehicle was being painted on 1980s era coating system  Production downtime to upgrade line would have been cos

97. Slide 97: Chinese Regulation Case Study: Commercial Truck

    PROPRIETARYAXALTA COATING SYSTEMS Chinese Regulation Case Study: Commercial Truck  Background  Existing supplier had difficulty meeting appearance specifications and cost targets  Resolution  Axalta worked with local supplier Kinlita to quickly develop solutions to both issues  Team provided a

98. Slide 98: Productivity Case Study: Imron Elite Productive

    PROPRIETARYAXALTA COATING SYSTEMS  Background  Existing paint system was a bottleneck to vehicle assembly  Solution needed without downtime or lost production  Resolution  Axalta developed coating system to meet these needs  Rapid launch of Axalta’s Imron® Elite Productive technology  To be u

99. Slide 99: Transition To Growth: Customer Recognition

    PROPRIETARYAXALTA COATING SYSTEMS 99 Transition To Growth: Customer Recognition GM Supplier of the Year China National Coatings Industry Top 100 Award Honda Preferred Supplier Quality Excellence Awards in Germany, China China National Coatings Industry Top 100 Enterprises Award Aligned Business Fram

100. Slide 100: Summary Of Key Messages

     PROPRIETARYAXALTA COATING SYSTEMS 100 Summary Of Key Messages The global transportation market is projected to grow ~3.4% CAGR through 2019 Axalta is actively transforming its business for profitable growth Axalta is a leading global OEM coatings provider Progress to date has been strong

101. Slide 101: Axalta's Procurement Roadmap

     Axalta’s Procurement Roadmap Martin Horneck SVP, Chief Procurement Officer

102. Slide 102: Axalta Procurement At A Glance

     PROPRIETARYAXALTA COATING SYSTEMS Axalta Procurement At A Glance  $2.1 billion in external buy addressed  93,500 SKUs  17,000 suppliers  197,000 purchase orders  600+ sourcing events per year Procurement Vision Statement “One global, world-class procurement organization driving a strategic adva

103. Slide 103: Why World Class Procurement?

     PROPRIETARYAXALTA COATING SYSTEMS 47% 53% Why World Class Procurement? Nearly 50% of Axalta’s Costs Are Related to External Suppliers Logistics & Packaging 13% Indirect 24% Direct Materials 63% Procurement Spend (% of Axalta Sales) Procurement Managed Spend Logistics & Packaging Indirect Direct63% 2

104. Slide 104: Axalta's Procurement Transformation

     PROPRIETARYAXALTA COATING SYSTEMS Axalta’s Procurement Transformation 2013 2014 2015+ Driving Procurement Performance Journey to World Class ProcurementTransition & Establish Organization • Complete transition • New global organization & talent upgrades • Enhance processes & systems • Introduce KPIs

105. Slide 105: The Procurement Toolbox

     PROPRIETARYAXALTA COATING SYSTEMS The Procurement ToolboxInputs Results Increased Quality Improved Service Access to Technology & Innovation Cost Savings & EBITDA Our Procurement Toolbox is Key to Our Strategic Plan and Ensures Consistent Results Axalta’s Procurement Toolbox Market Trends Business N

106. Slide 106: Strategic Procurement Initiatives Drive Incremental Value

     PROPRIETARYAXALTA COATING SYSTEMS Direct Materials Cost Modelling Global Price Benchmarking 1 3 Procurement Strategic Initiatives Business Collaboration Matched Pairs 2 4 Strategic Procurement Initiatives Drive Incremental Value For Axalta Raw material price aligned to shifts in markets Cross-functi

107. Slide 107: Structured Response to Market Opportunity

     PROPRIETARYAXALTA COATING SYSTEMS Structured Response to Market Opportunity Delivered Significant Benefits For Axalta Strategic Initiative: Raw Material Cost Modelling Change in Feedstock Price Cost Reduction Target Calculated Detailed Process & Governance Structure Benefits Realization 107

108. Slide 108: Procurement is Enabling Growth: Business Collaboration

     PROPRIETARYAXALTA COATING SYSTEMS Procurement is Enabling Growth by Strengthening Commercial Pursuits Strategic Initiative Case Study – Business Collaboration Phase Objectives & Outcomes Business Goal  Axalta goal to increase market share in North American electrical insulation market The Challenge

109. Slide 109: Raw Material Cost Outlook

     PROPRIETARYAXALTA COATING SYSTEMS Raw Material Short Term (0 – 12 mo.) Medium Term (12 – 24 mo.) Pricing Dynamics Pigments Additives Isocyanates Resins Monomers Solvents Cost IncreaseRelatively Flat Cost Decrease  Limited correlation to crude oil prices  Axalta procures some patented raw materials

110. Slide 110: Summary Of Key Messages

     PROPRIETARYAXALTA COATING SYSTEMS Summary Of Key Messages 110  Procurement manages largest cost block for Axalta  Transformation plan developed to create a world class procurement process  Procurement toolbox implemented to ensure value delivery  We are leading strategic initiatives to improve A

111. Slide 111: Axalta's Technology Advantage

     Axalta’s Technology Advantage Barry Snyder SVP, Chief Technology Officer

112. Slide 112: Technology Investment Is Our Foundation

     PROPRIETARYAXALTA COATING SYSTEMS 112  Superior, highly productive waterborne and solventborne systems  Best-in-class color matching and delivery  Cutting edge clearcoats 0 20 40 60 80 100 120 140 160 180 2013 2014 2015 T e c h n o lo g y S p e n d ( $ m ill io n s ) • ~$500 M invested in technol

113. Slide 113: Technology Investment Is Our Foundation

     PROPRIETARYAXALTA COATING SYSTEMS Research and Development Process and Raw Materials Technology Customer Support  1,300+ scientists, engineers and staff  Over $160 million in annual spend Shanghai, China Global Innovation Center (Philadelphia, 2017) Wuppertal, GermanyMt. Clemens MI Country Facilit

114. Slide 114: Axalta Connects Technology Innovation To Customer Requirements

     PROPRIETARYAXALTA COATING SYSTEMS 114 Customer End-User  Ease of use  Productivity  Compliance  Aesthetics  Durability  Protection Product Benefits Created At Two Value Chain StepsAxalta Technology Process Service Axalta Connects Technology Innovation To Evolving Customer Requirements

115. Slide 115: Our Competitive Advantage Comes From Three Levels Of Technology

     PROPRIETARYAXALTA COATING SYSTEMS Process Technology Service Technology Product Technology  Proprietary resins and additives  Over 1,100 patents  Leading formulation capabilities  Tailored solutions  Application equipment  Line design and interactions  Simulation capabilities  Vertical integ

116. Slide 116: Expand Competitive Advantage Strategy

     PROPRIETARYAXALTA COATING SYSTEMS 116  Set up for success  Facilities  Capabilities  Tools and processes  High-impact project portfolio  Strategic balance  Product technology roadmaps  Metrics  Leverage core strengths  Color  Chemistry  Customer productivity  Expand capabilities  New a

117. Slide 117: We Are Focused On Reducing Complexity

     PROPRIETARYAXALTA COATING SYSTEMS Macro drivers and complexity fields Processes Production/ supply chain Technologies Customer portfolio IT systems Materials/ components Organization Channels Markets/ segments Product portfolio Complexity fields Mergers & acquisitions Globalization External drivers

118. Slide 118: Axalta Builds Performance Into Each Coating Layer

     PROPRIETARYAXALTA COATING SYSTEMS Clearcoat Basecoat Primer Electrocoat  Appearance  Mar and UV resistance  Productivity  Color and effect delivery  Adhesion  Chip protection  Appearance  Corrosion resistance  Resin technology  Proprietary additives  Dispersion processes  Proprietary res

119. Slide 119: Axalta Technology Responds To Evolving Customer Needs

     PROPRIETARYAXALTA COATING SYSTEMS  Low temperature cure  Shorter cure cycles  1.5 coats  Combined layers  Wet-on-Wet  Color measurement and delivery  High performance clear coats  Water-based systems  High-solids solvent-based Evolving substrates Increased productivity Sustainable systems C

120. Slide 120: Technology Drives Business Growth: Case Examples

     PROPRIETARYAXALTA COATING SYSTEMS  $3.4 billion market  Easy to use product  Collision quality color Focus On Mainstream Segment Refinish  $1.2 billion market  Critical corrosion protection  Superior appearance Gain Share in E-Coat Light Vehicle  $1.0 billion market  High productivity  Wide

121. Slide 121: Axalta Technology Is Driving Regular Product Launches

     PROPRIETARYAXALTA COATING SYSTEMS Refinish Industrial Coatings National Rule (U.S.) Low VOC Audurra Refinish Accessory Products Chroma Lamp Multiple line extensions within our refinish brand families including putties, undercoats, basecoat mixing colors and clearcoats Regional introductions or line

122. Slide 122: Axalta Technology Is Driving Regular Product Launches

     PROPRIETARYAXALTA COATING SYSTEMS Transportation Coatings Spectramaster-3D™ Interactive Design Tool High-Chroma Technology Series 6100 Electrocoat 122 Axalta Technology Is Driving Regular Product Launches

123. Slide 123: We Have Detailed Roadmaps For Each Segment

     PROPRIETARYAXALTA COATING SYSTEMS Lower Cost Waterborne BC with significantly better application properties Low VOC Solventborne BC Technology for the NA Collision Market Enhanced Performance and Lower Cost Global Economy Line Third Generation Ultra Productive Waterborne BC Technology (3WB) Economy

124. Slide 124: Summary Of Key Messages

     PROPRIETARYAXALTA COATING SYSTEMS  Technology investment is our foundation  Axalta connects technology innovation to evolving customer requirements  Axalta builds performance into each coating layer  Technology drives business growth Summary Of Key Messages 124

125. Slide 125: Questions & Answers

     QUESTIONS & ANSWERS

126. Slide 126: Key Messages For The Day

     PROPRIETARYAXALTA COATING SYSTEMS 126 Key Messages For The Day  Axalta continues its transition from an operating segment to an independent, high-performing company  Axalta has made significant progress towards its goals, but there is far more still to come  We have multiple paths to create value

127. Slide 127: Appendix

     APPENDIX

128. Slide 128: Adjusted EBITDA Reconciliation

     PROPRIETARYAXALTA COATING SYSTEMS Adjusted EBITDA Reconciliation 128 ___________________________ Note: Numbers might not foot due to rounding. 1. Combined financials represent the combination of the Predecessor period from January 1, 2013 through January 31, 2013 and the Successor year ended Decembe

129. Slide 129: Adjusted EBITDA Reconciliation (cont'd)

     PROPRIETARYAXALTA COATING SYSTEMS 129 Adjusted EBITDA Reconciliation (cont’d) A. During the Successor year ended December 31, 2013, we recorded a non-cash fair value adjustment associated with our acquisition accounting for inventories. These amounts increased cost of goods sold by $104 million. Dur

130. Slide 130: Adjusted EBITDA Reconciliation (cont'd)

     PROPRIETARYAXALTA COATING SYSTEMS 130 Adjusted EBITDA Reconciliation (cont’d) L. Pursuant to Axalta’s management agreement with Carlyle Investment for management and financial advisory services and oversight provided to Axalta and its subsidiaries, Axalta was required to pay an annual management fee

Axalta Coating Systems — Investor Day (December 2015) on 6ix