Slide 1: Q4 & Full Year 2016 Financial Results
A X A LTA C O AT I N G S Y S T E M S Q4 & FULL YEAR 2016 FINANCIAL RESULTS February 8th, 2017
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 2017 financial projections, including exec
Slide 3: Q4 & Full Year 2016 Highlights
Q4 & Full Year 2016 Highlights Q4 financial results Net sales of $1,029.4 million – volume and price up 5.6% YoY, offset by 3.0% negative FX translation impact Net loss attributable to Axalta of $36.5 million; Adjusted net income attributable to Axalta of $68.6 million Adjusted EBITDA of $22
Slide 4: Key Goals & Priorities For 2017
Key Goals & Priorities For 2017 Stated Objective Results Expected • New product introductions, broader global market penetration, Outgrow our End-markets benefit from consolidation in key end-markets and regions Execute on Structural Savings with • Complete our programs for $200 million total saving
Slide 5: Q4 Consolidated Results
Q4 Consolidated Results Financial Performance Commentary Q4 % Change Net sales growth drivers ($ in millions) 2016 2015 Incl. F/X Excl. F/X Solid growth from North America Performance 609 589 3.4% 7.7% Refinish, Asia Pacific region, and Transportation 421 415 1.3% 2.7% Light Vehicle in most region
Slide 6: Q4 Performance Coatings Results
Q4 Performance Coatings Results Financial Performance Commentary Q4 % Change Net sales led by Industrial, including ($ in millions) 2016 2015 Incl. F/X Excl. F/X acquisition contribution Refinish 422 422 0.1% 4.9% Volume growth includes 4.3% from Industrial 186 167 11.8% 14.8% acquisitions Net Sal
Slide 7: Q4 Transportation Coatings Results
Q4 Transportation Coatings Results Financial Performance Commentary Q4 % Change Net sales driven by Light Vehicle ($ in millions) 2016 2015 Incl. F/X Excl. F/X Solid volume growth in Light Vehicle Light Vehicle 343 327 5.0% 6.6% led by Asia Pacific, North America, Commercial Vehicle 78 89 (12.2%)
Slide 8: FY Consolidated Results
FY Consolidated Results Financial Performance Commentary FY % Change Solid net sales growth excluding ($ in millions) 2016 2015 Incl. F/X Excl. F/X currency Performance 2,403 2,385 0.8% 6.6% Strong net sales growth in Industrial Transportation 1,670 1,702 (1.9%) 1.1% driven by North America, EMEA,
Slide 9: Debt and Liquidity Summary
Debt and Liquidity Summary Capitalization Net Leverage ($ in millions) @ 12/31/2016 Maturity 4.0x Cash and Cash Equivalents $535 Debt: 3.7x 3.7x Revolver ($400 million capacity) - 2021 First Lien Term Loan (USD) 1,517 2023 3.5x First Lien Term Loan (EUR) (1) 414 2023 Total Senior Secured Debt $1,931
Slide 10: Full Year 2017 Guidance
Full Year 2017 Guidance ($ millions) 2016A 2017E Comments on Drivers Net Sales (0.3%) 1-3% Net sales growth includes incremental M&A contribution of 2-3% from completed Net Sales, ex FX +4.3% 4-6% transactions Margin expansion driven by volume, price, Adjusted EBITDA $907 $930-980 and ongoing co
Slide 11: Appendix
Appendix
Slide 12: Full Year 2017 Assumptions
Full Year 2017 Assumptions Macroeconomic Assumptions Currency Assumptions Global GDP growth of 2016 2017 Average approximately 2.8% 2016 Average % Change Currency % Axalta Rate Rate in F/X Rate Net Sales Assumption Global industrial production growth of approximately 2.4% US$ per Euro ~28% 1.11
Slide 13: Capitalization Summary
Capitalization Summary Capitalization @ 9/30/2016 @ 12/31/2016 Interest Interest ($ in millions) Rate Maturity USD Rate Maturity USD Revolver ($400mm Capacity) L + 225 8/1/2021 - L + 225 8/1/2021 - First Lien Term Loan - USD (1) L + 275 2/1/2020 1,925 L + 250 2/1/2023 1,545 First Lien Term Loan - EU
Slide 14: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in millions) FY 2016 FY 2015 Q4 2016 Q4 2015 Net Income (Loss) $48 $98 (34) $39 Interest Expense 178 197 37 47 Provision for Income Taxes 40 63 16 15 Depreciation & Amortization 322 308 86 82 Reported EBITDA $588 $665 $106 $183 A Debt extinguishment and refinancing
Slide 15: Adjusted EBITDA Reconciliation (cont'd)
Adjusted EBITDA Reconciliation (cont’d) A. During the three months and years ended December 31, 2016 and 2015 we prepaid principal on our term loans, resulting in non-cash extinguishment losses of $3 million, $10 million, $3 million and $3 million, respectively. During the three months and year ende
Slide 16: Thank you
Thank you Investor Relations Contact: Chris Mecray Christopher.Mecray@axaltacs.com 215-255-7970