Axalta Coating Systems Ltd. · NYSE:AXTA

Axalta Coating Systems — Investor Day (February 2017)

112 slides from Axalta Coating Systems's investor day presentation, Feb 22, 2017

  1. Slide 1: 2017 Capital Markets Day: Technology Drives Axalta's Performance

    2017 Capital Markets Day Technology Drives Axalta’s Performance February 22, 2017 Axalta Coating Systems Exhibit 99.1

  2. Slide 2: Legal Notices

    2 PROPRIETARYAXALTA COATING SYSTEMS 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 f

  3. Slide 3: Capital Markets Day Agenda

    3 PROPRIETARYAXALTA COATING SYSTEMS Capital Markets Day Agenda 9:00 AM Introduction & Agenda Chris Mecray, VP, Investor Relations 9:05 AM Axalta’s Technology Journey: CEO Perspective Charlie Shaver, Chairman & CEO 9:40 AM Technology Drives Axalta’s Performance Barry Snyder, SVP & CTO 10:10 AM Perfor

  4. Slide 4: Axalta's Technology Journey: The CEO Perspective

    Axalta’s Technology Journey: The CEO Perspective Charles W. Shaver Chairman and CEO

  5. Slide 5: Axalta's Global Breadth and Scope

    5 PROPRIETARYAXALTA COATING SYSTEMS Axalta’s Global Breadth and Scope $4.1 Billion in Sales 13,000+ People 42 ManufacturingCenters 130 Countries 4 R&DCenters 46 TrainingCenters 100,000+ Customers 4,000+ Distributors 30+ Laboratories 150 Years in the Industry 50+ Brands Durable coatings that protect,

  6. Slide 6: Axalta's Customer Focused Organization

    6 PROPRIETARYAXALTA COATING SYSTEMS Axalta’s Customer Focused Organization • Global and local customers • Global Axalta strategy • Strong regional execution • Global OEM customers • Global Axalta strategies and support teams • Regionally specific aspects of customer support SEGMENTS END MARKETS  Au

  7. Slide 7: Axalta – A Global Leader In Coatings

    7 PROPRIETARYAXALTA COATING SYSTEMS Refinish $1.7 B (41%) Industrial $0.7 B (18%) Body Shops Light Vehicle $1.3 B (33%) CV $0.4 B (8%) Performance Coatings General Industrial, Electrical Insulation, Architectural Transportation Coatings Adjusted EBITDA1,2 - $554 M (23% Margin) Adjusted EBITDA1,2 - $

  8. Slide 8: A Global Leader In Our Markets

    8 PROPRIETARYAXALTA COATING SYSTEMS Peer 1 Axalta Peer 2 Peer 3 Other A Global Leader In Our Markets ~90% of Sales from Markets Where Axalta Has #1 or #2 Global Share Axalta Peer 1 Peer 2 Peer 3 Other Performance Coatings: Refinish Transportation Coatings: Light Vehicle #1 __________________________

  9. Slide 9: Structurally Attractive Global End-Markets

    9 PROPRIETARYAXALTA COATING SYSTEMS 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 m

  10. Slide 10: Axalta's Foundation: A Product Development Timeline

    10 PROPRIETARYAXALTA COATING SYSTEMS NYSE: AXTA Axalta’s Foundation: A Product Development Timeline 1866 2016 Herberts Dulux Sand mills revolutionize pigment dispersion New tinting technology 1900s 2000 20131950s 1st Color popularity report L, a, b color equations Acquire EFX spectrophotometer Axalt

  11. Slide 11: Key Achievements in 2016

    11 PROPRIETARYAXALTA COATING SYSTEMS Key Achievements in 2016 Grow the Business Productivity Initiatives Improve Cost Structure Focus on Operating Improvement Extend Core Strengths & Globalize  Net sales growth 4% ex-currency, including acquisitions  Outgrew our end-markets  Exceeded expectations

  12. Slide 12: 2016 Consolidated Results

    12 PROPRIETARYAXALTA COATING SYSTEMS 2016 Consolidated Results Financial Performance Net Sales Variance 20162015 $4,074$4,087 PriceVolume FX +1.7% +2.6% (4.6%) (0.3%)  4.3% net sales growth, ex-FX  110 basis point Adjusted EBITDA margin expansion  Strong continued progress on productivity initiat

  13. Slide 13: 2016 Highlights

    13 PROPRIETARYAXALTA COATING SYSTEMS 2016 Highlights Wins  28 million OEM vehicles painted  100+ OEM coating systems launched  900+ new Industrial accounts  Continued gains with multi-shop and independent refinish customers Products  225+ new products, line extensions or fit-for- purpose techno

  14. Slide 14: Key Goals For 2017

    14 PROPRIETARYAXALTA COATING SYSTEMS Key Goals For 2017 Outgrow our End-markets Stated Objective Expected Results Drive Excellent Customer Service & Innovation Maintain Active Operating Cost Discipline Execute on Structural Savings Disciplined Capital Allocation Continue FCF and Financial Discipline

  15. Slide 15: Axalta's Journey For Shareholder Value Creation

    15 PROPRIETARYAXALTA COATING SYSTEMS Axalta’s Journey For Shareholder Value Creation GROWTH  Re-invest in the business  Adapt culture & incentives  Focus on customer PRODUCTIVITY  “Fit-for-growth” initial savings  Axalta Way broader global effort  New operating system for 2017  Imbedded Lean

  16. Slide 16: Grow the Business; Invest to Outgrow our End-markets

    16 PROPRIETARYAXALTA COATING SYSTEMS Grow the Business; Invest to Outgrow our End-markets Invest in Technology Invest in Capacity  Meet and anticipate global demand for liquid and powder coatings  7 major completed projects  2 projects in the pipeline  7 new or expanded customer training centers

  17. Slide 17: Continue to Adapt our Culture & Incentives

    17 PROPRIETARYAXALTA COATING SYSTEMS Continue to Adapt our Culture & Incentives Employee Values and Behaviors to Drive Performance We are driven to perform every day We innovate with purpose We succeed as a united team We put our customers first We take ownership in everything we do Clear Values Get

  18. Slide 18: We Are Driving Long Term Growth

    18 PROPRIETARYAXALTA COATING SYSTEMS We Are Driving Long Term Growth 1.65 1.72 Organic Growth + FCF Deployment = Strong Topline Growth  Mid-single digit core growth assumed in the period  Seeking to redeploy growing free cash flow in return accretive opportunities  Improving ROIC from strong capi

  19. Slide 19: Axalta's Journey For Shareholder Value Creation

    19 PROPRIETARYAXALTA COATING SYSTEMS Axalta’s Journey For Shareholder Value Creation GROWTH  Re-invest in the business  Adapt culture & incentives  Focus on customer PRODUCTIVITY  “FIT-FOR-GROWTH” INITIAL SAVINGS  AXALTA WAY BROADER GLOBAL EFFORT  NEW OPERATING SYSTEM FOR 2017  IMBEDDED LEAN

  20. Slide 20: The Axalta Way: Driving Towards World Class Productivity

    20 PROPRIETARYAXALTA COATING SYSTEMS The Axalta Way: Driving Towards World Class Productivity Cumulative Productivity Savings ($ millions) The Axalta Way: “A focused approach to doing business that drives profitability by improving our efficiency, productivity and growth opportunities every day, whe

  21. Slide 21: Axalta's Journey For Shareholder Value Creation

    21 PROPRIETARYAXALTA COATING SYSTEMS Axalta’s Journey For Shareholder Value Creation GROWTH  Re-invest in the business  Adapt culture & incentives  Focus on customer PRODUCTIVITY  “Fit-for-growth” initial savings  Axalta Way broader global effort  New operating system for 2017  Imbedded Lean

  22. Slide 22: Capital Allocation: Optimizing our Deployment

    22 PROPRIETARYAXALTA COATING SYSTEMS Capital Allocation: Optimizing our Deployment Debt Reduction Organic Investment Capex / R&D M & A Dividends Share Repurchases Leverage in excess of target and no immediate investment? Investment opportunity that exceeds hurdle rate? Share price greater than fair

  23. Slide 23: Axalta's Journey For Shareholder Value Creation

    23 PROPRIETARYAXALTA COATING SYSTEMS Axalta’s Journey For Shareholder Value Creation GROWTH  Re-invest in the business  Adapt culture & incentives  Focus on customer PRODUCTIVITY  “Fit-for-growth” initial savings  Axalta Way broader global effort  New operating system for 2017  Imbedded Lean

  24. Slide 24: 2016 M&A: Leveraging a Consolidating Coatings Sector

    24 PROPRIETARYAXALTA COATING SYSTEMS Metalak - Benelux Refinish ChemSpec - North America Refinish High Performance Coatings Southeast Asia Refinish Duwest - Central America Refinish • Industrial • Architectural Dura Coat North America Industrial Coil Coatings United Paint North America Automotive In

  25. Slide 25: M&A: Leveraging a Consolidating Coatings Sector

    25 PROPRIETARYAXALTA COATING SYSTEMS M&A: Leveraging a Consolidating Coatings Sector Examples of Technology Acquired  Solvent- and waterborne rigid plastic coating systems for a variety of substrates  Economy segment refinish formulations and capacity  Low VOC paint systems for value segments  L

  26. Slide 26: Axalta's Journey For Shareholder Value Creation

    26 PROPRIETARYAXALTA COATING SYSTEMS Axalta’s Journey For Shareholder Value Creation GROWTH  Re-invest in the business  Adapt culture & incentives  Focus on customer PRODUCTIVITY  “Fit-for-growth” initial savings  Axalta Way broader global effort  New operating system for 2017  Imbedded Lean

  27. Slide 27: Significant Competitive Advantages

    27 PROPRIETARYAXALTA COATING SYSTEMS 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 global brand portfolio

  28. Slide 28: What Is The Role of Technology at Axalta?

    28 PROPRIETARYAXALTA COATING SYSTEMS What Is The Role of Technology at Axalta? 2013 2014 2016 June 2014 Technology & Innovation Products Process Productivity Value Creation Technology is the Axis of Value Creation for Axalta  Technology can drive enhanced returns, not just defend the castle  Measu

  29. Slide 29: Axalta's Future Rests On A Foundation Of Technology Investment

    29 PROPRIETARYAXALTA COATING SYSTEMS Axalta’s Future Rests On A Foundation Of Technology Investment Axalta Success is Driven by the Axis of Product Systems and Focus on the Customer We have an active product pipelineSignificant technology investment Note: Peer data is FY 2015; Axalta is FY 2016  We

  30. Slide 30: Thank You

    Thank You

  31. Slide 31: Technology Drives Axalta's Performance

    Technology Drives Axalta’s Performance Barry Snyder SVP, Chief Technical Officer

  32. Slide 32: Technology Is The Foundation Of Axalta's Success

    32 PROPRIETARYAXALTA COATING SYSTEMS Technology Is The Foundation Of Axalta’s Success  150+ year track record of coatings innovation  ~4% of sales is invested in technology annually  4-year Vitality Index >45%  Comprehensive product range  ~10,000 SKUs tailored to customer needs  Broad and dee

  33. Slide 33: Axalta Automotive Coatings: We Build Performance Into Each Layer

    33 PROPRIETARYAXALTA COATING SYSTEMS Clearcoat Basecoat Primer Electrocoat Axalta Automotive Coatings: We Build Performance Into Each Layer  Appearance  Mar and UV resistance  Color and effect delivery  Productivity  Adhesion  Chip protection  Corrosion resistance  Appearance  Resin technol

  34. Slide 34: Technology Strategy - Driving Differentiation

    34 PROPRIETARYAXALTA COATING SYSTEMS Technology Strategy - Driving Differentiation  Infrastructure  Facilities  Tools and processes  Organization  Capabilities  Focus  Core strengths  Color  Polymer chemistry  Customer applications  Fit-for-purpose products  Tailored solutions  Rapid tu

  35. Slide 35: Technology Investment Is Our Foundation

    35 PROPRIETARYAXALTA COATING SYSTEMS Research & Development Production & Raw Materials Technology Customer Technical Support Technology Investment Is Our Foundation  1,300+ scientists, engineers and staff  $165+ million annual spend; ~4% of net sales Shanghai, China Global Innovation Center (Phila

  36. Slide 36: Axalta Connects Technology Innovation To Evolving Customer Requirements

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

  37. Slide 37: Unique Technology Capabilities Create Competitive Advantage

    37 PROPRIETARYAXALTA COATING SYSTEMS  Proprietary resins and additives  Over 800 patents  Leading formulation capabilities  Process modeling  Manufacturing process development  Design for quality  Application equipment and experience  Line design and interactions  Simulation capabilities Un

  38. Slide 38: Improving Axalta's Technology Function

    38 PROPRIETARYAXALTA COATING SYSTEMS Improving Axalta’s Technology Function Innovation Philosophy Laboratory Footprint Organization & People Metrics Quality Process Improvement GlobalizationCompetitiveness Technology Base Business Integration Infrastructure Processes & SystemsApproach Evolving  Bal

  39. Slide 39: The Axalta Way: Improving Technology Capabilities and Operations

    39 PROPRIETARYAXALTA COATING SYSTEMS The Axalta Way: Improving Technology Capabilities and Operations  Portfolio Management  Project Management  Change Management  Integrated Facilities  Global Platforms  Complexity Management  Flawless Launch  Design for Quality Processes Productivity Outpu

  40. Slide 40: Portfolio Management & Roadmaps Drive Axalta Innovation

    40 PROPRIETARYAXALTA COATING SYSTEMS Portfolio Management & Roadmaps Drive Axalta Innovation Balanced Approach to Delivering Solutions for Today’s and Tomorrow’s Customer Needs Color/Appearance Protection Productivity Application Compliance Cost Current Generation Next Generation Lighthouse  65-75%

  41. Slide 41: Metrics Drive Performance Improvement In Technology

    41 PROPRIETARYAXALTA COATING SYSTEMS Metrics Drive Performance Improvement In Technology  Cost control  Align investments with growth targets and Axalta Way business improvement Input Productivity Output Budget Strategic Focus  Growth  Defense  Improve Project On-Time Delivery Resource Intensit

  42. Slide 42: Axalta Coating Technologies – Tailored Solutions

    42 PROPRIETARYAXALTA COATING SYSTEMS Refinish Industrial Coatings Coatings Axalta Coating Technologies – Tailored Solutions To Meet Customer Needs Transportation Coatings Liquid Coatings Light Vehicle Color Tools Powder Coatings Commercial Vehicle  Color Modeling  Effect Modeling  Match and Formu

  43. Slide 43: Axalta Technology Is Driving Hundreds Of Product Launches

    43 PROPRIETARYAXALTA COATING SYSTEMS Refinish Industrial Coatings Axalta Technology Is Driving Hundreds Of Product Launches Transportation Coatings Series 6100 Electrocoat Low VOC Solventborne Basecoat Mainstream Easy Application Waterborne Basecoat Economy Basecoat Ultra Productive Primer Premium C

  44. Slide 44: Technology Summary

    44 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, enhanced returns, and protects our competitive moat Techno

  45. Slide 45: Thank You

    Thank You

  46. Slide 46: Refinish Technology

    Refinish Technology Michael Carr VP, President, North America

  47. Slide 47: Axalta Is The Leader In Global Refinish Coatings

    47 PROPRIETARYAXALTA COATING SYSTEMS Axalta, 25% Peer 1, 20% Peer 2, 11% Peer 3, 11% Peer 4, 5% Other, 28% Axalta Is The Leader In Global Refinish Coatings #1 Refinish End-Market Share $6.9 Billion Sales A Strong Position in a Growing Industry  Leading market share position; industry estimated to g

  48. Slide 48: The Global Refinish Market Is Attractive And Dynamic

    48 PROPRIETARYAXALTA COATING SYSTEMS The Global Refinish Market Is Attractive And Dynamic  Growing eco-regulations require innovations  Performance needs drive technology improvements  Consolidation trend supported by field sales model Industry Dynamics Align with our Core Competencies Market Req

  49. Slide 49: The Market Opportunity In Global Refinish

    49 PROPRIETARYAXALTA COATING SYSTEMS  Strong market access through leading brands and distributors  Diverse region with both mature and developing markets  Environmental regulations driving waterborne adoption North America EMEA  Axalta benefits from MSO consolidation  Leading VOC-compliant pro

  50. Slide 50: The Refinish Process At A Glance

    50 PROPRIETARYAXALTA COATING SYSTEMS The Refinish Process At A Glance Consumer Body Shop Accident Call Insurance Car to Body Shop Repair Performed Vehicle Returned Prepare Surface Primer Surfacer Color Match Basecoat Clearcoat Paint Mixed Customer Satisfaction Depends on Quick, High-Quality, Cost-Ef

  51. Slide 51: The Refinish Market Uses A Sell-Through Model

    51 PROPRIETARYAXALTA COATING SYSTEMS The Refinish Market Uses A Sell-Through Model Axalta maintains direct body shop relationships  Field service team facilitates shop conversions  Technical team provides training, performance management  Call center manages customer inquiries & requests Product

  52. Slide 52: Axalta Had Many Successes In 2016

    52 PROPRIETARYAXALTA COATING SYSTEMS Axalta Had Many Successes In 2016 Ultra-Productive, Low-Energy Clearcoats Ultra-Productive PrimerEasy Application Waterborne Basecoat40,000th Spectrophotometer Shipped MSO Growth Drives Axalta Market Share GainNew Training Center in Charlotte Motorsports Partners

  53. Slide 53: Axalta's Product Technology Addresses Customer Challenges

    53 PROPRIETARYAXALTA COATING SYSTEMS  Insurance KPI performance  Cycle time (car delivery)  Productivity and facility utilization  Organic growth (same store sales) Customer Challenges Axalta’s Product Innovation Response  Quality – customer satisfaction  Color Match and final Appearance  Lab

  54. Slide 54: Refinish Product Example: High Productivity Primer

    54 PROPRIETARYAXALTA COATING SYSTEMS Refinish Product Example High Productivity Primer  Axalta primer improving productivity by close to 3x  Direct to metal application improves cycle time  Axalta primer improves profitability and sustainability

  55. Slide 55: 55 PROPRIETARYAXALTA COATING SYSTEMS

    55 PROPRIETARYAXALTA COATING SYSTEMS

  56. Slide 56: Refinish Product Example: High Productivity Clearcoat

    56 PROPRIETARYAXALTA COATING SYSTEMS Refinish Product Example  Clearcoat technology requires 33% less energy  Axalta cure time is 66% less than competitive products  Superior appearance appeals to customers; won Renault supplier award  Gained significant market share in first two years High Prod

  57. Slide 57: 57 PROPRIETARYAXALTA COATING SYSTEMS

    57 PROPRIETARYAXALTA COATING SYSTEMS

  58. Slide 58: Axalta's Refinish Service Model Delivers Innovation

    58 PROPRIETARYAXALTA COATING SYSTEMS Axalta’s Refinish Service Model Delivers Innovation Customer Challenges Service & Digital Innovation DATA INTEGRATION SOLUTIONS FOCUSED PERFORMANCE PROCESSES DEDICATED PERFORMANCE TEAMS  Insurance KPI performance  Cycle time (car delivery)  Productivity and fa

  59. Slide 59: Axalta Differentiates Through Services and Support

    59 PROPRIETARYAXALTA COATING SYSTEMS Axalta Differentiates Through Services and Support Leverage Information Technology to Improve Productivity  Management System  Collect Sales Data  Key Input for Performance  Color Retrieval System  Find and Match Color Fast  Mix Calculator based on Sales 

  60. Slide 60: Refinish Service Example

    60 PROPRIETARYAXALTA COATING SYSTEMS Refinish Service Example  Most critical customer attribute  Simple color retrieval for painters  Improves cycle time and productivity  Best in Class spectrophotometers allow fast, easy access to color formulas Color Match

  61. Slide 61: 61 PROPRIETARYAXALTA COATING SYSTEMS

    61 PROPRIETARYAXALTA COATING SYSTEMS

  62. Slide 62: Axalta Differentiates Through Services and Support

    62 PROPRIETARYAXALTA COATING SYSTEMS Axalta Differentiates Through Services and Support  In Shop or On Demand  Tailored Content by Customer  Technical and Business  Online Content with Usage  Focus on Account Management  Act on data not collect data  Process and Product Usage  Productivity a

  63. Slide 63: The Future Roadmap

    63 PROPRIETARYAXALTA COATING SYSTEMS The Future Roadmap Today10 Years Ago Productivity Environmental Color & Aesthetics  Perfect color match for new vibrant colors  Unique pigments  Improved gloss  Next generation productive basecoats  Faster cure clearcoats and primers  Lower complexity, easy

  64. Slide 64: M&A Activities and Accomplishments

    64 PROPRIETARYAXALTA COATING SYSTEMS M&A Activities and Accomplishments  Global M&A is a key component of the Axalta growth strategy  Target profile: Attractive, bolt-on businesses offering new technology, incremental channels and/or expanded market access Targeted M&A To Complement Organic Growth

  65. Slide 65: Refinish Summary

    65 PROPRIETARYAXALTA COATING SYSTEMS Refinish Summary  Axalta is the global market leader in the growing refinish market  Our strong market presence enables growth opportunities in every region  Innovative product technology differentiates Axalta and drives body shop productivity  Customer-focus

  66. Slide 66: Thank You

    Thank You

  67. Slide 67: Performance Coatings: Industrial

    Performance Coatings: Industrial Michael Cash SVP, President, Industrial

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

    68 PROPRIETARYAXALTA COATING SYSTEMS Industrial Coatings: A $28 Billion Market Opportunity For Axalta Industrial Coatings Drivers Volume growth driven by global GDP and Industrial Production  China drives >40% of global industrial coatings consumption  Commercial architectural market has seen ongo

  69. Slide 69: Axalta's Industrial Business Today

    69 PROPRIETARYAXALTA COATING SYSTEMS Axalta’s Industrial Business Today Product Examples Market Drivers General Industrial  Metal furniture  Appliances  Shelving/racking  Electrical boxes  GDP  Industrial Production Electrical Insulation  Electric motors  Transformers  Electric motor produc

  70. Slide 70: Industrial Coatings: Axalta's Currently Served Markets

    70 PROPRIETARYAXALTA COATING SYSTEMS Industrial Coatings: Axalta’s Currently Served Markets Established Target Segments Architectural Electrical Insulation Oil & GasACE General IndustrialCoil LIQUIDPOWDER E-COAT #2 Global Powder Coatings Supplier #2 Global Electrical Motor Sector Supplier #2 Global

  71. Slide 71: Industrial Coatings: Source of Revenue by Product Technology

    71 PROPRIETARYAXALTA COATING SYSTEMS Industrial Coatings: Source of Revenue by Product Technology Axalta Revenue Per Segment Architectural Electrical Insulation Oil & GasACE General IndustrialCoil  60% Liquid  25% Powder  15% E-coat  30% Liquid  70% Powder  99% Liquid  1% Powder  99% Liquid

  72. Slide 72: Industrial Coatings: Key Business Drivers

    72 PROPRIETARYAXALTA COATING SYSTEMS Industrial Coatings: Key Business Drivers 0 200 400 600 800 1000 2014 2015 2016 541 817 932 New Accounts 0 20 40 60 80 100 120 140 2014 2015 2016 70 95 135 New Products

  73. Slide 73: Our Competitive Advantages: The Moat

    73 PROPRIETARYAXALTA COATING SYSTEMS Our Competitive Advantages: The Moat  Product innovation to meet exacting customer specs  Wide range of sustainable product solutions  Breadth of technology for OEM’s and sub-suppliers  Fit-for-purpose products Product Process Service  Global reach, scale an

  74. Slide 74: Agricultural, Construction, and Earthmoving (ACE) Equipment

    74 PROPRIETARYAXALTA COATING SYSTEMS Agricultural, Construction, and Earthmoving (ACE) Equipment #  Topcoats approved for Direct-to-Plastics  Tufcote epoxy primer for local China market  21 new approvals from global OEMs to increase our total to 99 achieved to-date  Launched AquaEC 6100: Tin-fre

  75. Slide 75: Oil & Gas

    75 PROPRIETARYAXALTA COATING SYSTEMS Oil & Gas  Adapted Abcite technology to supply to water pipe projects (Berlin)  Successfully launched Nap-Gard ID internal pipe coating  Awarded Pakistan 3LPE project due to global responsiveness  Launched Procor HS (Pemex)  Awarded pipeline projects for CNP

  76. Slide 76: 76 PROPRIETARYAXALTA COATING SYSTEMS

    76 PROPRIETARYAXALTA COATING SYSTEMS

  77. Slide 77: Electrical Insulation

    77 PROPRIETARYAXALTA COATING SYSTEMS Electrical Insulation #  Maintained flow of product innovation - 50 active development projects  Built leading position in the Electric Vehicle (EV) market  Introduced two new impregnating resin product lines, including Voltahyd, the first waterborne IR line o

  78. Slide 78: General Industrial

    78 PROPRIETARYAXALTA COATING SYSTEMS General Industrial #  Coated Rio Olympic torches which became inspiration for Alesta Iconica collection  Introduced next-gen Nap-Gard FBE Rebar products  Expanded offering for metal auto parts  Awarded business for unique two-layer application of our AquaEC 6

  79. Slide 79: 79 PROPRIETARYAXALTA COATING SYSTEMS

    79 PROPRIETARYAXALTA COATING SYSTEMS

  80. Slide 80: Architectural

    80 PROPRIETARYAXALTA COATING SYSTEMS Architectural King Abdulaziz International AirportSignature Tower in Kuala Lumpur  Launched Global Warranty program for Alesta  Awarded 25+ major building projects around the world  Acquired brands to add liquid technology to our architectural portfolio  Inve

  81. Slide 81: 81 PROPRIETARYAXALTA COATING SYSTEMS

    81 PROPRIETARYAXALTA COATING SYSTEMS

  82. Slide 82: Coil Coatings

    82 PROPRIETARYAXALTA COATING SYSTEMS Coil Coatings #  Introduced Kryptstone wrinkle finishes for steel roofing  Launched high durability acrylic system DurAcryl and became leading supplier of coil coatings in the truck, trailer and RV siding industry  Spray PVDF for improved flow and ease of appl

  83. Slide 83: 83 PROPRIETARYAXALTA COATING SYSTEMS

    83 PROPRIETARYAXALTA COATING SYSTEMS

  84. Slide 84: The Role of M&A

    84 PROPRIETARYAXALTA COATING SYSTEMS The Role of M&A  Industry leading coil and architectural extrusion coating products  Low-VOC top coats  Extensive Industrial primers  Structural steel coatings  Industrial top coats Acquisitions

  85. Slide 85: The Future Roadmap for Industrial Coatings

    85 PROPRIETARYAXALTA COATING SYSTEMS The Future Roadmap for Industrial Coatings  Less energy consumption  Lower VOC emissions  Adhesive properties for electrical motor coatings  Coatings to enable longer lasting products  Easier access to colors and broader color ranges  Low cure powder coatin

  86. Slide 86: Thank You

    Thank You

  87. Slide 87: Transportation Coatings

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

  88. Slide 88: Segment Overview

    88 PROPRIETARYAXALTA COATING SYSTEMS Segment Overview #2 global supplier to light vehicle OEMs Axalta Transportation Light Vehicle  Original Equipment Manufacturers  Plastics and composite materials  Metal coatings  Interior coatings  Accessories #1 global supplier to heavy duty truck and bus s

  89. Slide 89: Transportation Global Coatings Market

    89 PROPRIETARYAXALTA COATING SYSTEMS Market InsightsGlobal Share Position Projected Industry Sales 2016 Industry Sales: $10 billion Transportation Global Coatings Market  Axalta has leading positions across our markets  Customer focused global teams with single point of contact for quick, coordina

  90. Slide 90: Our Vision Is Above Market Growth

    90 PROPRIETARYAXALTA COATING SYSTEMS Our Vision Is Above Market Growth  Gain share with existing customers  Grow underserved regions and customers including JOEMs, KOEMs, domestic OEMs  Redefine and increase content per vehicle  Leverage “what good looks like” into new regions, customers and mar

  91. Slide 91: Transportation: Recent Wins And Launches

    91 PROPRIETARYAXALTA COATING SYSTEMS Transportation | Recent Wins And Launches Won business around the world. . . . . .and launched products at 100 sites Focused Growth New business underscores key customer value drivers:  Global service capability and consistency  Productive systems  Energy and

  92. Slide 92: Transition To Growth: Customer Recognition

    92 PROPRIETARYAXALTA COATING SYSTEMS Transition To Growth: Customer Recognition China National Coatings Industry Top 100 Award Honda Preferred Supplier Quality Excellence Awards in Germany, China China National Coatings Industry Recognition Aligned Business Framework Best Supplier Quality Performanc

  93. Slide 93: Axalta's Value Is More Than A "Can Of Paint"

    93 PROPRIETARYAXALTA COATING SYSTEMS  Line Service Excellence  Continuous improvement and problem solving capability  Optimized for customers’ environment and processes  Flawless launch Axalta’s Value Is More Than A “Can Of Paint”  Multi-layered system solutions  Global consistency and color c

  94. Slide 94: Axalta Value Proposition Case Studies

    94 PROPRIETARYAXALTA COATING SYSTEMS Axalta Value Proposition Case Studies

  95. Slide 95: The Leader In Harmonized Coatings Technologies

    95 PROPRIETARYAXALTA COATING SYSTEMS 30% 18 Harmonized Coatings patents in the United States and Europe 3 Automotive News PACE Award recognitions The Leader In Harmonized Coatings Technologies™ CLEAR COAT BASE COAT PRIMER SAND PRIMER BAKE TRANSFER FLASH BAKE 3-WET BASECOAT (2nd Coat) BASE COATPRIMER

  96. Slide 96: High Solid Solvent borne 3-Wet: Video

    96 PROPRIETARYAXALTA COATING SYSTEMS High Solid Solvent borne 3-Wet: Video

  97. Slide 97: Harmonized Coatings Technologies Drive Efficiency In China

    97 PROPRIETARYAXALTA COATING SYSTEMS Harmonized Coatings Technologies Drive Efficiency In China  3-Wet technology jointly developed with the customer  30% reduction in material consumption  50% reduction in VOC emissions  Lowered energy consumption  Earned SURCAR 2016 award for environmental fo

  98. Slide 98: Axalta Provides Mass Color Customization Solutions

    98 PROPRIETARYAXALTA COATING SYSTEMS  Brand Color  Favorite from past  Favorite object  Select from Axalta library of colors  Formula library  Color formulating algorithms  Proprietary formula software  Engineered intermediates  Standard process  Strict quality criteria  Quick delivery 

  99. Slide 99: Imron Elite EY- Video

    99 PROPRIETARYAXALTA COATING SYSTEMS Imron Elite EY- Video

  100. Slide 100: Axalta's Imron Is The Choice For Ambulance Builder

    100 PROPRIETARYAXALTA COATING SYSTEMS Axalta’s Imron™ Is The Choice For Ambulance Builder  Axalta’s Imron™ brand adds value to the customer’s offering  Manufacturer increased line production without an increased footprint  Reduced emissions by 40 percent; lower oven temperature saves costs and en

  101. Slide 101: Corrosion Resistance For Lasting Protection

    101 PROPRIETARYAXALTA COATING SYSTEMS  Electrodeposition coating is one of the most efficient coating methods  Provides excellent coverage to all metallic parts of the vehicle  AquaEC™ brand family meets the needs of today’s transportation customers  Excellent throw power  Formulated to meet re

  102. Slide 102: Aqua-EC

    102 PROPRIETARYAXALTA COATING SYSTEMS Aqua-EC

  103. Slide 103: AquaEC Performance

    103 PROPRIETARYAXALTA COATING SYSTEMS AquaEC™ Performance  Tin-free formulation  Lower cure temperature saved energy  Less waste water generated  Lower bake off losses  Less residual dust created in ovens  Fewer defects  Clean edges  Improved yield  Lower emissions Many benefits recognized

  104. Slide 104: Leading the Way in Coating Alternative Substrates

    104 PROPRIETARYAXALTA COATING SYSTEMS  Automakers are looking to light weight materials  Meet fuel economy and CO2 emission regulations  Improve vehicle performance  Axalta provides solutions  Uniform appearance across multiple substrates  Corrosion protection for new and mixed material constr

  105. Slide 105: Coatings for Lightweight Substrates: Video

    105 PROPRIETARYAXALTA COATING SYSTEMS Coatings for Lightweight Substrates: Video

  106. Slide 106: Axalta Unifies Substrates On Iconic Sports Car

    106 PROPRIETARYAXALTA COATING SYSTEMS Axalta Unifies Substrates On Iconic Sports Car  Automakers worldwide are introducing new designs, materials and joining methods to achieve weight reduction, cost reduction, process optimization, production repeatability and improved performance Fuel Door Nylon

  107. Slide 107: No Matter What the Future Brings, Coatings Will Play A Key Role

    107 PROPRIETARYAXALTA COATING SYSTEMS No Matter What the Future Brings, Coatings Will Play A Key Role  Autonomous  Shared  High Chroma  New effect colors  Mass color customization  Light weighting – coatings for multiple substrates  Corrosion protection for mixed materials  Lower cure temper

  108. Slide 108: Transportation Summary

    108 PROPRIETARYAXALTA COATING SYSTEMS Axalta’s advanced coatings technologies will enable growth and value creation Recent wins and awards are evidence of success Leading global transportation coatings systems provider Strong products and great service drive customer value Transportation Summary

  109. Slide 109: Thank you

    AXALTA COATING SYSTEMS Thank you

  110. Slide 110: Appendix

    Appendix

  111. Slide 111: Adjusted EBITDA Reconciliation

    111 PROPRIETARYAXALTA COATING SYSTEMS Adjusted EBITDA Reconciliation Note: Numbers might not foot due to rounding. ($ 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

  112. Slide 112: Adjusted EBITDA Reconciliation (cont'd)

    112 PROPRIETARYAXALTA COATING SYSTEMS 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.

Axalta Coating Systems — Investor Day (February 2017) on 6ix