Axalta Coating Systems Ltd. (NYSE:AXTA) Q4 2020 Earnings Conference Call February 18, 2021 8:00 AM ET Company Participants Chris Mecray - Vice President, Investor Relations Robert Bryant - Chief Executive Officer Sean Lannon - Chief Financial Officer Conference Call Participants Ghansham Panjabi - Baird David Begleiter - Deutsche Bank Bob Koort - Goldman Sachs Chris Parkinson - Credit Suisse P.J. Juvekar - Citi Steve Haynes - Morgan Stanley Mike Sison - Wells Fargo John Roberts - UBS Kevin McCarthy - Vertic ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 001-36733 AXALTA COATING SYSTEMS LTD. (Exact name of registrant as specified in its charter) Bermuda 2851 98-1073028 (State or other jur ...

Axalta Coating Systems Ltd. (NYSE:AXTA) Q3 2020 Earnings Conference Call October 22, 2020 8:00 AM ET Company Participants Chris Mecray - VP, IR Robert Bryant - CEO Sean Lannon - CFO Conference Call Participants Ghansham Panjabi - Baird Paul Staudinger - KeyBanc Capital Markets David Huang - Deutsche Bank Arun Viswanathan - RBC Capital Markets Josh Spector - UBS Bob Koort - Goldman Sachs Mike Harrison - Seaport Global Securities Luke Washer - Bank of America Steve Haynes - Morgan Stanley Harris Fein - Credit ...

Financial Data and Key Metrics Changes - Total net sales for Q2 2020 decreased by 39.7% before foreign exchange and M&A impacts [9] - Consolidated adjusted EBIT for the quarter was a loss of $12 million, reflecting extreme volume pressure [10] - Adjusted EBIT results included unfavorable accounting charges related to COVID-19 totaling $45 million [10] - Free cash flow for Q2 totaled a use of $18 million, despite a 44% decline in net sales [21] Business Line Data and Key Metrics Changes - Performance Coatings net sales decreased by 32.3% on a constant currency organic basis, with Refinish down 38.7% and industrial down 23.2% [9] - Transportation Coatings net sales decreased by 53.7% year-over-year, with light vehicle down 54.9% and commercial vehicle down 50.1% [9] - Adjusted EBIT for Performance Coatings was $2 million, significantly pressured by lower volume and average price/mix [10] Market Data and Key Metrics Changes - In June, overall constant currency net sales were down 24% from prior year levels, recovering 82% from the low point in April [8] - In China, total net sales in June were up 4% from the prior year, with significant production recovery across all vehicle markets [13][16] - U.S. traffic levels rebounded solidly, closing the gap with pre-COVID levels by early June, but remained approximately 15% to 20% below prior year levels [12] Company Strategy and Development Direction - The company initiated a global organizational restructuring expected to generate annualized savings of approximately $50 million [11] - Axalta aims to position itself for profitable growth across higher growth segments of the coatings market [11] - The company continues to focus on maintaining employee safety, operational flexibility, and financial flexibility during the pandemic [8] Management's Comments on Operating Environment and Future Outlook - Management expects net sales in Q3 to be down approximately 15% to 20% from the prior year quarter [21] - The company anticipates a gradual recovery in demand, particularly in the Refinish business, as traffic and accident rates improve [12][27] - Management remains cautious due to uncertainties related to the pandemic and its impact on various markets [70] Other Important Information - The company achieved total savings of $75 million during Q2, exceeding its target, and increased its full-year savings target to at least $130 million [19] - Axalta's liquidity position remains strong, with total liquidity of approximately $1.5 billion [20] Q&A Session Summary Question: What is the current performance in the Refinish business? - Management noted that miles driven and accident rates are recovering, with U.S. and Europe still about 15% to 20% below pre-COVID levels, while China shows a strong rebound [27] Question: How should the market view decrementals for Q3? - Management indicated that decrementals were around 42% in Q2 and expected to improve slightly in Q3, depending on sales recovery [33][34] Question: What is the outlook for the Refinish business regarding market share? - Body shop activity is recovering, with MSO customers buying a richer mix of products, and management expects continued improvement as miles driven increase [36][80] Question: How are raw material prices expected to trend? - Management expects a moderate uptick in raw material pricing as demand recovers, but overall raw material costs are anticipated to be down year-over-year [66] Question: What are the expectations for the Transportation segment? - Management noted that while the recovery in Europe has been slower, China is showing signs of a strong second half of the year [30][31]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 001-36733 | --- | --- | --- | |----------------------------------------------------------------------------|--------------------------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 001-36733 | --- | --- | --- | |----------------------------------------------------------------------------|-------------------------------- ...