Slide 1: Axalta Coating Systems Q2 2017 Financial Results
Axalta Coating Systems Q2 2017 FINANCIAL RESULTS August 3, 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: Q2 2017 Highlights
Q2 2017 Highlights Q2 financial results Net sales of $1,088.5 million – driven primarily by 6.5% acquisition contribution Net loss attributable to Axalta of $20.8 million versus $50.7 million of income in Q2 2016, driven by Venezuela deconsolidation and M&A transaction and integration costs
Slide 4: Key Goals & Priorities For 2017
Key Goals & Priorities For 2017 Stated Objective Results Expected Status • New product introductions, broader global Outgrow our End-markets market penetration, benefit from consolidation in key end-markets and regions Execute on Structural Savings with • Complete our programs for $200 million total
Slide 5: Q2 Consolidated Results
Q2 Consolidated Results Financial Performance Commentary Q2 % Change Net sales led by acquisition growth ($ in millions) 2017 2016 Incl. F/X Excl. F/X Net sales pressured by lower volumes in Performance 663 631 5.1% 6.9% Latin America Refinish and EMEA Light Transportation 426 433 (1.7%) (0.7%) Ve
Slide 6: Q2 Performance Coatings Results
Q2 Performance Coatings Results Financial Performance Commentary Q2 % Change Strong net sales growth led by ($ in millions) 2017 2016 Incl. F/X Excl. F/X Industrial M&A contribution Refinish 421 447 (5.8%) (4.3%) Solid Industrial organic volume growth Industrial 242 183 31.9% 34.4% across all regi
Slide 7: Q2 Transportation Coatings Results
Q2 Transportation Coatings Results Financial Performance Commentary Q2 % Change Net sales led by Commercial Vehicle ($ in millions) 2017 2016 Incl. F/X Excl. F/X Solid Light Vehicle volume growth in Light Vehicle 334 344 (2.9%) (2.1%) Asia Pacific as well as Latin America, Commercial Vehicle 91 89
Slide 8: Debt and Liquidity Summary
Debt and Liquidity Summary Capitalization Comments ($ in millions) @ 6/30/2017 Maturity Upsized and modified USD Term Loan to Cash and Cash Equivalents $482 finance the acquisition of Valspar’s North Debt: American Industrial Wood Coatings business and Spencer Coatings Group Revolver ($400 million
Slide 9: Full Year 2017 Guidance
Full Year 2017 Guidance ($ millions) Original Revised Comments on Revised Guidance Net sales growth includes incremental M&A Net Sales 1-3% 7-8% contribution of 6-7% from completed acquisitions Net Sales, ex FX 4-6% 8-9% Headwinds to margins from input cost Adjusted EBITDA $930-980 $940-970 infl
Slide 10: Appendix
Appendix
Slide 11: Full Year 2017 Assumptions
Full Year 2017 Assumptions Macroeconomic Assumptions Currency Assumptions Global GDP growth of 2016 2017 Average USD % Impact approximately 3.0% 2016 Average Currency % Axalta Rate of F/X Rate Rate Net Sales Assumption Change Global industrial production growth of approximately 2.9% US$ per Euro
Slide 12: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation LTM ($ in millions) FY 2016 Q1 2016 Q2 2016 Q1 2017 Q2 2017 6/30/2017 Net Income (loss) $45 $33 $52 $66 (19) $7 Interest Expense, net 178 50 48 36 36 152 Provision for Income Taxes 38 14 17 10 10 27 Depreciation & Amortization 322 76 79 82 84 333 Reported EBITDA $583 $
Slide 13: Adjusted EBITDA Reconciliation (cont’d)
Adjusted EBITDA Reconciliation (cont’d) A. During the year ended December 31, 2016 we amended our Credit Agreement and refinanced our indebtedness, resulting in losses of $88 million, and prepaid principal on our term loans, resulting in non-cash extinguishment losses of $10 million. In 2Q 2016, we
Slide 14: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation ($ in millions) Q2 2016 Q2 2017 Net Income (loss) $52 (19) Less: Net income attributable to noncontrolling interests 2 2 Net income (loss) attributable to controlling interests 51 (21) A Debt extinguishment and refinancing related costs 2 12 B Foreign exchange reme
Slide 15: Adjusted Net Income Reconciliation (cont’d)
Adjusted Net Income Reconciliation (cont’d) A. In 2Q 2016, we prepaid $100 million of the outstanding principal on the 2023 Dollar Term Loans and recorded a non-cash loss on extinguishment of $2 million. In connection with the refinancing of our Dollar Term Loans during 2Q 2017, we recorded losses o
Slide 16: Thank you
Thank you Investor Relations Contact: Chris Mecray Christopher.Mecray@axaltacs.com 215-255-7970