Slide 1: Axalta Coating Systems Q1 Investor Overview
Axalta Coating Systems Q1 Investor Overview 1
Slide 2: Legal Notices
Legal Notices Forward-Looking Statements This presentation and the oral remarks made in connection herewith may contain certain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 regarding Axalta and its subsidiaries including our outlook and/
Slide 3: Axalta's CEO, CFO and VP of Investor Relations
Axalta’s CEO, CFO and VP of Investor Relations Chris Villavarayan Sean Lannon Chris Evans Chief Executive Officer Chief Financial Officer And Vice President, and President Senior Vice President Investor Relations 3
Slide 4: Compelling Investment Thesis
Compelling Investment Thesis 1 Strong core markets and unique positioning in coatings industry 2 Above market growth in profitable segments 3 Driving margins to pre COVID-19 levels supported by productivity and pricing execution 4 Delivering cash; returning to normalized unlevered cash conversion le
Slide 5: A Leading Global Coatings Company With A 150 Year Legacy
A L e a d i n g G l o b a l C o a t i n g s C o m p a n y W i t h A 1 5 0 Ye a r L e g a c y REFINISH INDUSTRIAL M O B I L I T Y C O AT I N G S Largest Provider of Aftermarket Total Coatings Solution Provider Coatings Solutions for Future Auto Coatings and Accessories Across a Diverse and Global Mob
Slide 6: Strategic and Complementary Businesses
Strategic and Complementary Businesses 2022 NET SALES $4.9B BY GEOGRAPHY Latin America Refinish Light Vehicle 11% North 40% 41% America 24% Asia Pacific 15% 8% Commercial 28% Vehicle 33% EMEA Industrial Performance Coatings Mobility Coatings Refinish Industrial Light Vehicle Commercial Vehicle ▪ Ind
Slide 7: Driving Innovation With Some Of The Most Iconic Brands In The Coatings Industry
Driving Innovation With Some Of The Most Iconic Brands In The Coatings Industry KEY STATISTICS 50+ BRANDS 150+ 140+ Years in Coatings Countries ~1,300 25 Scientists, technical Global Laboratories experts and engineers ~80% Of new technology to ~12,000 have sustainable benefit Employees by 2030 ~750
Slide 8: Growth and Diversity from M&A Program
Growth and Diversity from M&A Program Track Record of Successful Acquisitions 25 Acquisitions Since 2015 ~$1.4B Total M&A spend 2016-2022 ~$780M Annual Revenues1 2015 2016 2017 2018 2019 2020 2021 2022 1. Annual Revenues based on TTM at time of closing 8
Slide 9: Well-Positioned for Favorable Macro Trends and Drivers
W e l l - P o s i t i o n e d f o r F a v o r a b l e M a c r o Tr e n d s a n d D r i v e r s Trends 2022 Net Sales Total Addressable Market Position1 Market1 ▪ Robust multi-year outlook driven by a return to #1 1 secular growth and aided by share gains with REFINISH fast growing customers $1.9B $6
Slide 10: Refinish Overview
Refinish Overview BREAKDOWN BY CUSTOMER SEGMENT1 P $2.8B 40% AXTA 65% AXTA SIZE SHARE NET SALES PREMIUM M $2.2B 19% AXTA 25% AXTA SIZE SHARE NET SALES M AI N S T R E AM DRIVERS NEAR TERM LONG TERM E $1.8B 9% AXTA 10% AXTA SIZE SHARE NET SALES ECONOMY OFFICE GROWING VOLUME PER PREMIUM ACCESSORIES OCC
Slide 11: Industrial Overview
Industrial Overview BREAKDOWN BY SEGMENT1 $43B 4% 65% GI SIZE AXTA SHARE INDUSTRIAL 2022 NET SALES G E N E R AL Total solution provider: leading powder, liquid, and I N D U S T R I AL e-coat $10B 4% 25% BP SIZE AXTA INDUSTRIAL 2022 SHARE NET SALES BUILDING PRODUCTS Broad range of sustainable interio
Slide 12: Mobility Coatings Overview
Mobility Coatings Overview BREAKDOWN BY SEGMENT1 LV $9B 76% $1.2B LIGHT 2022 MOBILITY 2022 SIZE NET SALES NET SALES VEHICLE CV 24% $377M $4B 2022 MOBILITY 2022 C O M M E R C I AL SIZE NET SALES NET SALES VEHICLE 2016 – 2025 Global LV Builds(2) 2021 – 2026 CV Builds Class 4-8(2)(3) (Builds in million
Slide 13: Select Financial Metrics
Select Financial Metrics Adj. EBITDA Free Cash Flow ($ in millions) ($ in millions) COVID-19 WEAKNESS & RAWS HYPERINFLATION 937 939 475 455 885 848 442 811 415 760 362 163 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Cumulative Price-Cost(1) Navigating Unprecedented Headwinds 2020-202
Slide 14: Debt and Liquidity Summary
Debt and Liquidity Summary Capitalization Commentary ($ in millions) Interest @ 3/31/2023 Maturity Focused capital allocation Cash and Cash Equivalents $ 512 Revolver ($550 million capacity) Variable — 2026 ▪ Paid down $75 million of long term debt in Q1 2023, with First Lien Term Loan (USD) Variabl
Slide 15: 2023 Priorities
2023 Priorities Expected Catalysts ▪ Upside From Normalizing End-Market Activity Price-Cost Raw Materials ▪ Targeted Pricing Actions Recovery & Productivity ▪ Improving Raw Material Environment Near Term Focus ▪ Accelerating Productivity Benefits Operational & Improve Free Supply Chain Cash Flow and
Slide 16: Select Q1 2023 Financial Results Slides
Select Q1 2023 Financial Results Slides 16
Slide 17: Q1 2023 Key Highlights
Q1 2023 Key Highlights ■ Adjusted EBIT increased 25% YoY to $149 million and exceeded the top end of Q1 2023 guidance ■ Pricing momentum continued in all end-markets, resulting in an overall price-mix increase of 9% ■ Above-market volume growth in Mobility Coatings offset macroeconomic headwinds imp
Slide 18: Q1 Consolidated Results
Q1 Consolidated Results Financial Performance Commentary ($ in millions, except Q1 % Change Net sales growth year-over-year driven primarily by price per share data) 2023 2022 Incl. F/X Excl. F/X realization and modest volume growth Performance Coatings 847 814 4.0 % 6.9 % Mobility Coatings 437 360
Slide 19: Q1 Performance Coatings Results
Q1 Performance Coatings Results Financial Performance Commentary Q1 % Change Net sales grew 7% year-over-year (ex-FX) as double digit price- ($ in millions) 2023 2022 Incl. F/X Excl. F/X mix growth in both end-markets was partially offset by lower Refinish 498 461 7.8 % 10.9 % Industrial volumes Ind
Slide 20: Q1 Mobility Coatings Results
Q1 Mobility Coatings Results Financial Performance Commentary Q1 % Change Net sales growth of 24% (ex-FX) from above market volume ($ in millions) 2023 2022 Incl. F/X Excl. F/X growth and strong price-mix in both end-markets Light Vehicle 329 276 19.2 % 22.1 % ▪ Light Vehicle and Commercial Vehicle
Slide 21: Financial Guidance & Market Commentary
Financial Guidance & Market Commentary Axalta does not provide a reconciliation for non-GAAP estimates for constant currency net sales growth, Adjusted EBIT, Adjusted EBITDA, Adjusted Diluted EPS, free cash flow and tax rate, as adjusted, on a forward-looking basis because the information necessary
Slide 22: Appendix
Appendix 22
Slide 23: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation A Represents expenses and associated changes to estimates related to the prepayment, restructuring and refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance Year Ended December 31, B Represents expenses and associated
Slide 24: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Year Ended December 31, ($ in millions) 2017 2018 2019 2020 2021 2022 Cash provided by operating activities $540 $496 $573 $509 $559 $294 Purchase of property, plant and equipment (125) (143) (113) (82) (122) (151) Interest proceeds on swaps designated as net investment
Slide 25: Adjusted EBIT Reconciliation
Adjusted EBIT Reconciliation Q1 2023 Q1 2022 A Represents expenses and associated changes to estimates related to the prepayment, restructuring, and ($ in millions) refinancing of our indebtedness, which are not considered indicative of our ongoing operating performance. $125 $86 Income from operati
Slide 26: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation A Represents expenses and associated changes to estimates related to the prepayment, restructuring, and refinancing of our ($ in millions, except per share data) Q1 2023 Q1 2022 indebtedness, which are not considered indicative of our ongoing operating performance.
Slide 27: Thank You
Thank You Investor Relations Contact: Chris Evans Christopher.Evans@axalta.com 484-724-4099 27