Axalta Coating : Strategy Day 2024 Presentation

May 15, 2024

STRATEGY DAY 2024

Forward-Looking Statement

Cautionary Statement Concerning 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, but not limited to, statements regarding the 2024 Transformation Initiative (as defined in Axalta's Quarterly Report on Form 10-Q filed on May 1, 2024), our acquisition of The CoverFlexx Group, our 2030 ESG goals, and our outlook, targets and/or guidance, which includes net sales, net sales growth, Adjusted EBITDA, Adjusted EBITDA growth, Adjusted EBITDA Margin, total net leverage ratio ("net leverage ratio" or "net leverage"), Return on Invested Capital ("ROIC"), operating cash flow, free cash flow, capital expenditures, the timing or amount of any future share repurchases, gross debt reduction, capital allocation, M&A activity, and the targets under our 2026 A-Plan, including net sales growth (including in each of our end- markets), Adjusted EBITDA, Adjusted EBITDA margin, margin growth in our Industrial end-market, net leverage, ROIC, and Adjusted Diluted EPS growth, and the related assumptions underlying the 2026 A-Plan targets, including organic and inorganic contributions, Adjusted EBITDA conversion, cost savings from operating improvements, additional gross debt reductions, capital expenditures, ROI thresholds, interest expense and tax rate, as well business dynamics in our end markets, including megatrends, industrial market growth, light vehicle production, and the North American Class 8 commercial vehicle market, and related growth expectations. Axalta has identified some of these forward-looking statements with words such as "guidance," "plan," "target," "targets," "expected," "next steps," "anticipated," "priorities," "goal," "goals," "expectation," "progression," "strategy," "will," "assumption," "estimated," "trend," "initiatives," and "outlook," and the negative of these words or other comparable or similar terminology. All of these statements are based on management's expectations as well as estimates and assumptions prepared by management that, although they believe to be reasonable, are inherently uncertain. These statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of Axalta's control, as well as risks related to the execution of the 2024 Transformation Initiative, 2026 A-Plan and the acquisition of The CoverFlexx Group, that may cause its business, industry, strategy, financing activities or actual results to differ materially. More information on potential factors that could affect Axalta's financial results is available in "Forward-Looking Statements," "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" within Axalta's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, and in other documents that we have filed with, or furnished to, the SEC. Axalta undertakes no obligation to update or revise any of the forward-looking statements contained herein, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

The historical financial information included in this presentation includes financial information that is not presented in accordance with generally accepted accounting principles in the United States ("GAAP"), including Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, net leverage ratio, and ROIC. Management uses these non-GAAP financial measures in the analysis of our financial and operating performance because they assist in the evaluation of underlying trends in our business. Adjusted EBITDA consists of EBITDA adjusted for (i) certain non-cash items included within net income, (ii) certain items Axalta does not believe are indicative of ongoing operating performance or (iii) certain nonrecurring, unusual or infrequent items that have not otherwise occurred within the last two years or we believe are not reasonably likely to recur within the next two years. We believe that making such adjustments provides investors meaningful information to understand our operating results and ability to analyze financial and business trends on a period-to-period basis. Our use of the terms Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, total net leverage ratio and ROIC may differ from that of others in our industry. Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, total net leverage ratio and ROIC should not be considered as alternatives to net sales, net income (loss), income (loss) from operations or any other performance measures derived in accordance with GAAP as measures of operating performance or operating cash flows or as measures of liquidity. Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, total net leverage ratio and ROIC have important limitations as analytical tools and should be considered in conjunction with, and not as substitutes for, our results as reported under GAAP. This presentation includes a reconciliation of certain non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP. Axalta does not provide a reconciliation for non-GAAP estimates for Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, total net leverage ratio, ROIC and Adjusted Diluted EPS on a forward-looking basis because the information necessary to calculate a meaningful or accurate estimation of reconciling items is not available without unreasonable effort. For example, such reconciling items include the impact of foreign currency exchange gains or losses, gains or losses that are unusual or nonrecurring in nature, as well as discrete taxable events. We cannot estimate or project these items and they may have a substantial and unpredictable impact on our GAAP results.

Organic Sales

Organic net sales are calculated by excluding the impact of the change in average exchange rates between the current and comparable period by currency denomination exposure of the comparable period amount.

Segment Financial Measures

The primary measure of segment operating performance is Adjusted EBITDA, which is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts and prior year financial results, providing a

measure that management believes reflects Axalta's core operating performance. As we do not measure segment operating performance based on net income, a reconciliation of this non-GAAP financial measure with the most directly comparable

financial measure calculated in accordance with GAAP is not available.

Rounding

Due to rounding the tables presented may not foot.

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Agenda

9-9:30AM

WELCOME AND REGISTRATION

9:30-11:30AM

PRESENTATION AND Q&A

11:30 AM-12:30PM

LUNCH

12:30-2PM

R&D TOUR

Chris Villavarayan

President

and Chief Executive Officer

Dr. Robert Roop

Senior Vice President

and Chief Technology Officer

Carl Anderson

Senior Vice President

and Chief Financial Officer

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Axalta-At-A-Glance

		Refinish 26%				PARTNERING WITH
		40%			90K
		Light Vehicle /
			26%	8%
		Commercial
	NET SALES	Vehicle					BODY SHOPS and	12,000
ALL TIME						4K
Industrial	40% 26%
	$5.2B
HIGH	SALES BY END MARKET	DISTRIBUTORS	EMPLOYEES
		ICONIC BRANDS

						SUPPLY THE TOP	1,300
$951M						13	SCIENTISTS,
ALL TIME	150				TECHNICAL EXPERTS
ADJUSTED EBITDA	HIGH	YEARS OF HERITAGE	OF 15 GLOBAL OEMs	AND ENGINEERS
		SALES BY GEOGRAPHY
		EMEA	34%		Latin	SERVE
				4,000
				11% America
$447M		North		15%		INDUSTRIAL	4 MAJOR /25 TOTAL
	America 40%	Asia-Pacific
		CUSTOMERS WITH
	140+COUNTRIES
	UNIQUE TOTAL
FREE CASH FLOW		SOLUTIONS PLATFORM	R&D CENTERS

4

Industry-Leading Positions

		Total	Global
	2023	Addressable
End Markets	Position1,2
Net Sales	Global Size1

Refinish		$2.1B	$6.8B	#1
A GLOBAL LEADER IN AFTERMARKET
AUTO REPAIR SEGMENT
	Light Vehicle	$1.4B	$7.7B	#2
	ACCRETIVE WINS DRIVING GROWTH WITH DIVERSIFIED
	CUSTOMER BASE
Commercial Vehicle3		$0.4B	$2.4B	#1
A GLOBAL LEADER IN HEAVY DUTY TRUCK WITH
OPPORTUNITIES IN CTS*
	Industrial	$1.3B	$69.1B	#4
	TOTAL SOLUTIONS PROVIDER
	TARGETING INNOVATIVE GROWTH

1. Source: management estimates
2. Light Vehicle share excludes interior coatings; #2 for North American Wood Coatings Supplier and Global Electrical Insulation Supplier
3. Commercial Vehicle includes truck, bus, recreational vehicles, and powersports

*CTS: Commercial Transportation Solutions-Formerly "Other Transportation"

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Focused Capital Allocation

• Accretive M&A and returns to shareholders

• Greatly improved balance sheet

Proven Execution - Meaningful Changes Underway

		Accelerated Cost &		Excellence in
		Operational Focus		End Markets
•	Procurement initiatives	• New product launches and
	drove improved performance	industry-recognized
•	Inventory reduction led to near	technology
	record free cash flow	• Significant customer wins

2023 Financial

Performance

• Record net sales and Adjusted EBITDA

• Price realization in all end markets

Create a Winning Culture

• Focus on safety and quality
• Strong management team
• Empowerment through right sizing and restructuring organization

Net Sales Trend ($ in billions)

$4.9	$5.2	$5.3

2022A

2023A

2024E1

Adjusted EBITDA ($ in millions) and Margin Trend

	$811	$951	$1,065
Adjusted	2022A	2023A	2024E1
EBITDA	16.6%	18.4%	~20%
Margin
Reduced Net Leverage to	Raised FY2024
2.8x as of Q1 2024 from 3.7x	Financial Guidance
	in the prior year		at Q1 Earnings

1.

Represents 2024 Guidance Midpoint

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CULTURAL

EFFECTIVE CAPITAL

2026 A Plan

TRANSFORMATION

ALLOCATION

OPERATIONAL	SUSTAINABLE
EXCELLENCE	INNOVATION

OPTIMIZED PORTFOLIO

GROWTH STRATEGY

Accelerating Performance

1. As compared to 2023 Actual Financial Results
2. Margin represented as Adj. EBITDA Margin

GROWTH

at attractive margins

>$500M Net Sales1

MARGIN2 ENHANCEMENT

through business simplification and operational excellence

>21% Target Margin

NET LEVERAGE

target range

2.0x to 2.5x

INVESTMENT DECISIONS

deliver strong

Return on Invested Capital

~15%

VALUE CREATION

and Shareholder Return

>60% Adjusted Diluted EPS Growth1

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Driving a Winning Culture

▪ Rebuilding organization to be proactive, responsive and agile

▪ Business units responsible for operations

▪ Accelerate decision- making process

▪ Accountability + Focus on

ONE Axalta

▪ Simplified incentive compensation structure

8

Operational Enhancements Driving Expected $125M Improvement

Actions Completed and In-Flight

Next Steps

• Requoted ~2/3 addressable ✓a
  PROCUREMENT spend

Exceeding benchmark	▪	Index-based agreements and
performance		longer duration contracts to
		reduce inflationary risk
INVENTORY	▪	Days and complexity reduction✓a

TRANSFORMATIONAL

INITIATIVES

$75M

Improvement

NETWORK

OPTIMIZATION

$25M

Improvement

• Lower cost base to improve financial performance
• Efficient structure
• Driving agility and better service to customers
• Warehouses - 87 company managed and 91 3PLs
• Optimized shipping lanes
• Regional focus

OPERATIONS

$25M

Productivity

2023

• Footprint consolidation
• CapEx allocated to offset

annual inflation

Operational Improvement - $125M

2024

2025

2026

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Net Sales Growth of >$500M Anticipated Through 2026

Refinish

Industrial

Light Vehicle

Commercial Vehicle

	+$250M Net Sales	+$50M Net Sales	+$150M Net Sales	+$50M Net Sales
		+400 bps Margin Improvement
	Drive Growth;	Rebalancing	Profitable Growth;	Market Leadership;
	Expand Adjacencies	Portfolio	Margin Stability	Opportunities In
				Commercial
				Transportation Solutions
	M&A Focus			M&A Focus
Net Sales growth target compared to 2023 Actual Financial Results		10