#1Axalta Coating Systems (AXTA) First Quarter 2021 Financial Results April 26, 2021 Introduction and Q1 Financial Highlights First Quarter 2021 Highlights Q1 2021 net sales increased 8.1% year-over-year to $1,064 million with positive contributions from all end-markets Income from operations of $53 million includes a significant operating charge; Adjusted EBIT increased 37.8% to $183 million, a record for first quarter results . ■ - ■ ■ - Diluted EPS of $0.06 versus $0.22 in Q1 2020; Adjusted diluted EPS of $0.50 versus $0.31 in Q1 2020 Cash flow from operations of $40 million in Q1 2021; free cash flow of $11 million . A AXALTA Q1 Business Conditions and Cost Structure Strong economic market conditions across the majority of end-markets; excellent first quarter adjusted profit despite volume headwinds related to semiconductor chip shortage, supply constraints due to severe weather in the U.S., and the persistence of pandemic-related demand impacts in Refinish Acquired Anhui Shengran Insulating Materials Co. Ltd., a Chinese producer of wire enamels for electric motors on April 1, 2021 Repurchased $64 million of stock during Q1 2021 at an average price of $27.94 Raw material inflation impacts relatively neutral impact during Q1, expected to ramp in Q2 and FY. Q1 benefited from carryover of cost savings from 2020 slightly ahead of expectations AXALTA Slide 3: Introduction and Q1 Financial Highlights Net Sales: Axalta saw continued net sales recovery across most end-markets served during the first quarter, including the third straight sequential increase in net sales in Industrial. Consolidated Q1 net sales increased 8.1% year-over-year (including a 3.2% FX tailwind). This result included a 4.6% overall volume increase (the first overall volume increase since the onset of the pandemic) and a 0.3% positive price-mix contribution. Broad-based recovery continued from most coatings end-markets globally, with Refinish remaining stable though still below pre-pandemic levels of accident rates and collision shop activity due to ongoing COVID-driven lockdowns in key countries served. Demand from Refinish appears to be recovering as certain lockdowns have eased and vaccination rates are increasing. Beyond Refinish, there were moderate headwinds in the quarter including the automotive semiconductor chip shortage and the severe winter weather in the U.S. impacting the coatings raw material supply chain, but which collectively had a moderate impact on overall volumes. Adjusted EBIT: Adjusted EBIT for the quarter, which excludes the impact of the $94 million operating charges associated with the Mobility Coatings operational matter, was reported at $183 million (versus $205 million in fourth quarter), a record level for first quarter and an increase of 37.8% year-over-year despite ongoing Refinish volume and other headwinds for the period. This result reflected strong continued cost savings benefits, fairly neutral variable cost contribution, and modest benefit from price- mix in the quarter. Sensitivity: Business Internal Balance Sheet & Cash Flows: Axalta reported strong cash flow in Q1, with cash flow from operations of $40 million and record first quarter free cash flow of $11 million compared with a use of $20 million in Q1 2020. First quarter free cash flow is historically the weakest of the year due to substantial annual outflows related to incentive compensation, tax payments as well as payments on bond interest and other factors. Strong operating results and improved year-over-year working capital drove the beat in Q1 year-over-year, while net debt at quarter end also ticked lower to 3.2x from 3.3x at year-end, which still includes the impact of the weak Q2 2020 earnings results in the trailing twelve month calculation on#2Adjusted EBITDA. Axalta closed the quarter with total liquidity of over $1.6 billion. During first quarter, Axalta repurchased $64 million of common shares under its share repurchase program at an average price of $27.94. Subsequent to the end of the quarter, Axalta announced the acquisition of Anhui Shengran Insulating Materials Co. Ltd., a Chinese producer of wire enamels used in electric motors. The deal is a substantial bolt-on boost to the Energy Solutions business within Industrial. Business Conditions: First quarter 2021 continued to see overall improvement across most industrial coatings markets given the solid recovering pace of the global economy from the pandemic. Recovering demand was evident in most businesses served, and volumes increased in all end-markets year-over-year. In Refinish, demand was largely stable despite pandemic-related restrictions beginning in late November and continuing through the quarter. Some ongoing pressure in western markets was offset by recovery from China which saw some Refinish impact due to COVID during Q1 2020. Industrial end-market demand remained intact, with nearly all end-businesses showing year-over-year growth and increases even excluding estimated impacts from COVID in the prior year period. Light Vehicle demand conditions also continued to improve, though the impact of the semiconductor chip shortage weighed on total production in the period. Commercial Vehicle demand also remained robust through the quarter, with notable strength in North America production and demand and heavy truck orders nearing record levels in the last few months. Cost Structure: Axalta continued to benefit from a combination of structural and temporary cost savings through first quarter, including temporary cost savings in the period above our initial guidance in addition to building Axalta Way structural savings as anticipated. The company continues to expect to see benefit from carry-over savings from 2020 classified as temporary as Axalta maintains cost discipline and overall activities including travel remain subdued relative to pre-pandemic levels. It is expected, however, that the majority of costs held out during 2020 will flow back in along with resumption of normal volume and business activity during the course of the next year plus. Regarding cost inflation, the impact of variable cost pressures was fairly neutral during first quarter, but Axalta expects to see the impact of ramping input costs during second quarter, and for such cost inflation to further ramp through the balance of the year. In aggregate, Axalta expects to see high single digit inflation during 2021 versus the prior year and is working diligently to offset such inflation via both passing through pricing in channels served as well as through ongoing cost measures as required. Sensitivity: Business Internal 2#3Q1 Consolidated Results ($ in millions, except per share data) Performance Coatings Mobility Coatings Net Sales Income from ops Adjusted EBIT % margin Diluted EPS Adjusted EPS $984 Financial Performance Q1 2020 4.6% 2021 707 356 1,064 Volume Sensitivity: Business Internal Q1 53 183 17.2% 0.06 0.50 0.22 0.31 Net Sales Variance 2020 0.3% 648 336 984 65 133 13.5% Price/Mix Incl. F/X 3.2% % Change FX 9.2 % 6.1 % 8.1 % (19.2)% 37.8% (72.7)% 61.3% Excl. F/X 8.1% 5.0 % 4.6% 4.9% $1,064 |· Slide 4: Q1 Consolidated Results Net sales of $1.1 billion increased 8.1% year-over-year for the first quarter. Organic constant currency net sales increased 4.9% overall during the period, with continued sequential volume recovery across most end-markets Axalta serves despite ongoing pandemic-driven impacts seen in Refinish. Notable continued strength was seen across most of Industrial, while commercial vehicle demand particularly in North America truck markets also remained strong. Automotive demand at the retail sales level was also solid, though production and Axalta's net sales volumes were impacted by the supply chain shortages for semiconductor chips. Q1 2021 Commentary Net sales increased YOY from continued volume recovery; China lapping Q1 2020 COVID impacts • Q1 net sales growth YOY across all end-markets; sequential growth versus Q4 2020 in Industrial and Commercial Vehicle despite seasonal headwinds YOY volume growth despite continued Refinish headwinds from COVID restrictions, semiconductor chip shortage, and U.S. severe weather supply chain effects . . FX tailwinds driven by the Euro and Chinese Renminbi, partly offset by Brazilian Real Impressive Adjusted EBIT for the first quarter Margin expansion of 370 bps driven by operating leverage from ongoing cost and productivity progress, improved sales volumes, and modest price-mix benefits Modest YOY product price-mix benefit driven by Light Vehicle; mix headwinds in Refinish and Industrial . 3 The 4.9% growth in first quarter organic net sales, before FX impacts, included a 5.0% increase from Performance Coatings and 4.6% contribution from Mobility Coatings. AXALTA The volume increase of 4.6% for the quarter was driven by rebounding net sales in China against the prior year pandemic-impacted quarter, as well as by Industrial growth globally and further supported by growth in North America in Commercial Vehicle. This was offset partially by continued Refinish headwinds including in North America, and by pressure in Light Vehicle from the supply chain-driven production cutbacks. Price-mix contribution was slightly positive in the aggregate (up 0.3%) principally driven by Light Vehicle which saw an increase in mid-single digits, offset by modestly negative price-mix in other end- markets. As with prior recent quarters, the principal driver for other end-markets has been product mix differences, largely within Performance Coatings, as pricing has remained positive. FX translation was a tailwind of 3.2%, driven by the stronger Euro and Chinese Renminbi, offset by weakness notably for the Brazilian Real - the same currency drivers as the fourth quarter. First quarter Adjusted EBIT was $183 million versus $133 million in the prior year quarter, an exceptionally strong result given ongoing Refinish volume headwinds in many markets. The substantial earnings growth was driven principally by operating cost reductions, coupled with volume drop-through benefit, as well as neutral income statement impact from variable input costs and by moderate FX#4tailwinds. First quarter Adjusted EBIT excludes the impact of the $94 million operating charges associated with the Mobility Coatings operational matter. Q1 Performance Coatings Results ($ in millions) Refinish Industrial Net Sales Adjusted EBIT % margin $648 Q1 2020 Financial Performance 6.2% 2021 2020 368 280 648 79 12.3% Net Sales Variance Volume Sensitivity: Business Internal Q1 399 308 707 117 16.6% (1.2)% Price/Mix % Incl. F/X 8.5 % 10.1% 9.2 % 47.6% 4.2% FX Excl. F/X 3.7 % 6.7 % 5.0 % 9.2% $707 Q1 2021 Commentary Stronger net sales driven by both Refinish and Industrial volume improvement ■ . ▪ 4 YOY volume growth driven by continued Industrial strength across most global markets, recovery in Refinish notably in China versus prior year pandemic effects, partly tempered by U.S. severe weather supply chain impacts and ongoing pandemic restrictions Modest price-mix headwinds in select Industrial businesses and mix in Refinish FX tailwinds driven by the Euro and Chinese Renminbi, partly offset by Brazilian Real Improved Adjusted EBIT and margins Continued cost productivity benefits and volume recovery drove impressive 430 bps Adjusted EBIT margin improvement with solid contribution from both end-markets Slide 5: Q1 Performance Coatings Results Performance Coatings Q1 net sales increased 9.2% year-over-year (increased 5.0% excluding a 4.2% FX tailwind). The result was driven principally by 6.2% higher volumes offset partly by a 1.2% decrease in average price-mix. AXALTA Refinish reported an 8.5% net sales increase (3.7% ex-FX), driven by improved volume primarily from China which saw pandemic impacts in the prior year quarter. While overall volumes in EMEA were stable, year-over-year volumes for Refinish coatings remained a headwind in western countries due to the continued impact on vehicle miles travelled from COVID-19 related restrictions and lockdowns. Price-mix in the period was a modest drag, including mix headwinds from geography, customer and product differences, offset partly by positive price versus the year ago period. Axalta continued to drive new product innovation in Refinish in the first quarter, continuing the launch of industry leading product systems. In Europe, Axalta launched two new Nason clearcoats for the value segment, while the rollout of Axalta's premium "fast cure" clearcoat also continued across the region. In Asia Pacific, growth of Axalta's new Spies Hecker waterborne clearcoat continued, showcasing the first premium Refinish clearcoat based on waterborne technology. Industrial net sales increased 10.1% year-over-year (6.7% ex-FX), driven largely by strong mid-single digit volume growth, with average price-mix a modest offsetting headwind. Demand trends in the end businesses served by Industrial remained supportive, with ongoing recovery seen for the third straight quarter for industrial coatings globally. All regions and end-businesses in Industrial saw positive volume and net sales comparisons in the quarter, with particular strength in Energy Solutions, powder coatings and Wood coatings. Axalta has also seen ongoing tailwinds in markets linked to North American housing and remodeling, including Wood and Coil. In Europe, Axalta's business has also recovered well across most markets, while in China all Industrial businesses appear to have recovered from#5earlier pandemic restriction effects, with notable strength continuing in Energy Solutions tied to wind energy customers. New product launches in Industrial Coatings also continued this quarter. The Energy Solutions business expanded its position in electronic transformer and small motor applications with the launch of a low VOC waterborne impregnating resin, Voltahyd 2251. The Wood business launched its newest range of waterborne UV curing primer/color systems designed for surfaces used in the construction of interior cabinets. In General Industrial, Imron 2100 HG-C; a high gloss, high solids, low 2.1 VOC clearcoat was introduced, featuring exceptional appearance, premium outdoor weatherability, and excellent ease of application. In Axalta's Powder business, we expanded the Alesta® product line with the introduction of the "Alesta ID Degassing" powder coating, offering premium performance on challenging anticorrosion treated metal (hot dipped galvanized) used across the fencing market. The Performance Coatings segment reported Q1 Adjusted EBIT of $117 million, a 47.6% increase versus $79 million in Q1 2020, driven by lower operating expenses, stronger volumes and associated drop-through to earnings, offset slightly by lower price-mix effects. The Adjusted EBIT margin for the segment increased from 12.3% in Q1 2020 to 16.6% in the first quarter, again highlighting the success in cost containment through the period while volumes have continued to rebound. Performance Coatings Demand Environment Refinish The refinish market in Q1 was variable but improved later in the period, particularly in North America Traffic indicators improving from bottom in January: - U.S. miles driven down -7%, body shop activity down -12%; insurance claims continue to lag " U.S. data showed solid sequential monthly recovery into April which may be first month of near-normal traffic since Q1 2020 " Europe miles driven down -15% in March, recovering in sequential months after a dip in January; body shop activity also recovered through March but dipping in April aligned with extended COVID restrictions For Asia, most countries have seen traffic above pre-COVID traffic levels since Q4 and stable during Q1 Industrial Latin America miles driven in Brazil slipped in Q1 with higher case count and restrictions; Mexico still -10% below normal Broad-based global industrial demand recovery; notable growth from Energy Solutions, Powder, and General Industrial Strong market backdrop with support from U.S. home building and remodeling, global automotive demand, and broader industrial recovery across sectors Slide 6: Performance Demand Environment Regarding the Performance Coatings demand environment, Axalta benefited from continued sequential recovery during first quarter, notably across broader industrial coatings markets while Refinish demand was largely stable sequentially. AXALTA In Refinish, U.S. vehicle traffic was approximately 7% below prior year levels in the quarter, with a stronger exit rate in March. U.S. collision claims were fairly consistent with the third and fourth quarter, down -24% suggesting that accidents have not translated to claims at a coincident rate. Gauged by body shop activity, Axalta saw approximately 12% declines across customer shops served, which is also consistent with the overall levels seen during the fourth quarter. Sensitivity: Business Internal 5#6In Europe, pandemic-related restrictions intensified in December and remained in effect for much of the first quarter, impacting vehicle miles driven and therefore Refinish demand, which was generally consistent with fourth quarter levels. Certain countries such as Germany extended restrictions a month further than initially planned, with easing expected to begin late April, though very country specific in terms of timelines with easing. In Latin America, Mexico miles driven remain around 10% below normal, while Brazil was around even with pre-COVID levels in Q1, perhaps weaker than the rate entering the quarter as case count for COVID increased and restrictions in Brazil have come back. In China and Asia Pacific, most countries continue to see traffic levels above pre-COVID levels through the first quarter, as was the case in fourth quarter. In China, after a slower fourth quarter, and increased activity starting in January, overall refinish volumes ended the quarter up fairly substantially for Axalta. In the Industrial end-market, Axalta's first quarter results indicated broad based demand strength through the period. All end-businesses as well as regions were either stable or increased over the prior year in the period, with Energy Solutions and General Industrial coatings including powder coatings both showing particular strength. Strength in U.S. home building and remodeling as well as global automotive demand both served as continued tailwinds for Axalta's Industrial business. Q1 Mobility Coatings Results ($ in millions) Light Vehicle Commercial Vehicle Net Sales Adjusted EBIT % margin $336 Q1 2020 Financial Performance Sensitivity: Business Internal 1.5% 2021 Volume Q1 279 77 356 39 11.0% 26 7.7% Net Sales Variance 2020 260 76 336 3.1% % Change Incl. F/X Excl. F/X 7.2 % 5.4 % 2.2% 2.1 % 6.1 % 51.9% 4.6 % Price/Mix 1.5% FX 6.1% $356 Q1 2021 Commentary Net sales growth driven by improved price-mix, low single digit volume growth, and FX benefit 6 ■ I . Volume improvement driven by recovery in China Light Vehicle and growth in North America Commercial Vehicle; semiconductor chip shortage hindered further upside for net sales ■ Positive price-mix contribution principally from Light Vehicle Modest FX tailwinds driven by the Euro and Chinese Renminbi, partly offset by the Brazilian Real Adjusted EBIT and margin expansion Margin improvement of 330 bps, which excludes impacts of the operational matter, driven by solid net sales improvement inclusive of positive price-mix benefit, coupled with ongoing structural cost and productivity progress Slide 7: Q1 Mobility Coatings Results In April, Axalta rebranded its former Transportation Coatings segment as Mobility Coatings. This change is to align our overall branding with a shift in strategic focus towards the broader mobility space, which is rapidly transforming in fundamental ways and may look quite different over the coming decade as shifts take place, such as adoption of new drive train technology and other new technology that this migration enables for vehicles. Axalta is leading the way in the coatings space in terms of positioning the company for shifting customer needs, and our new Mobility branding reflects this new alignment. AXALTA#7Mobility Coatings net sales increased 6.1% year-over-year in the quarter including a 1.5% currency tailwind driven by the Euro and Chinese Renminbi, partly offset by the Brazilian Real. Net sales were driven by 3.1% higher average price-mix and a 1.5% increase in volume. Light Vehicle first quarter net sales increased 7.2% (5.4% ex-FX). Volume increased low single digits, which was somewhat behind the global rate of production in the period due to specific customer and geographic exposures for Axalta. Average selling prices increased mid-single digits in the period, largely reflecting mix effects as opposed to pricing in the quarter. Commercial Vehicle first quarter net sales increased 2.2% before FX headwinds of 0.1%. This increase was driven by stronger but still uneven global truck production as well as solid production of certain other vehicle types served. Axalta saw volume increases in North America truck around in-line with industry pacing, while EMEA remained lower year-over-year aligned with the broader regional truck market. Price-mix for Commercial Vehicle was essentially neutral in the quarter versus the prior year period. Axalta's Mobility Coatings business continued to innovate during Q1. In the area of Core Mobility, Axalta continued the launch of its Lumeera 5220 clearcoat, providing best-in-class appearance and performance. The rollout also continued for the next generation Hydrotopcoat formulated for premium appearance and workability. In support of Advanced Mobility, Axalta expanded partnerships with both customers and applicator suppliers to drive the development of Digital Paint Application which we believe will offer improved productivity for unique color combinations and customization. Finally, Axalta scientists and engineers continued the optimization of Axalta's Radar Transmission Simulator (ARTS); an exclusive radar modeling software. With this capability, Axalta is leading the industry in support of Automotive Radar/LIDAR and Advanced Driver Assistance Systems (ADAS). Mobility Coatings reported first quarter Adjusted EBIT of $39 million, well above the $26 million profit reported in Q1 2020, excluding the impact of the operational matter and associated charges in the quarter. The Adjusted EBIT margin for the segment increased markedly from 7.7% in Q1 2020 to 11.0% in the first quarter, driven largely by strong price-mix contribution and ongoing cost reduction progress. Sensitivity: Business Internal 7#8Mobility Coatings Demand Environment Light Vehicle LV market recovery continued in Q1 globally with solid retail demand, though the semiconductor chip shortage has delayed ~2 million production units globally from 1H 2021 with much expected to be made up in 2H 2021 ■ " · ■ ■ " U.S. auto retail sales of 17.7 million units in March showed acceleration in demand and the strongest month since pre-pandemic period Commercial Vehicle The global truck market continues to recover with strong demand most notably in North America ■ Global LV production increased 14.0% YOY in Q1; forecasts call for 57.8% growth for Q2 and a 11.9% increase for FY 2021 (revised down from 13.4% in February due to the chip shortage) Axalta net sales largely aligned to Q1 production trends, outpacing the market in EMEA, Latin America, and Asia Pacific, but slightly lower in North America Global CV production excluding China increased 5.6% YOY in Q1; forecasts call for continued recovery with 79.5% and 22.6% increases for Q2 and FY 2021, respectively Non-truck CV markets remain strong led by North America including recreational vehicles, power sports, and truck body builders. Global bus production remains weak A AXALTA Slide 8: Mobility Demand Environment Axalta's Mobility Coatings segment is directly linked to global automotive and commercial vehicle OEM global production rates for the customers and plants served globally. Axalta generally expects to track the recovery rate of the global vehicle markets, and this has been the case in recent periods. In the first quarter, the Light Vehicle market recovery continued globally via solid retail sales demand, but the market was impacted fairly notably by the ongoing shortage of semiconductor chips which has caused line shutdowns and curtailments particularly since late January. This issue, linked to pandemic effects in the supply chain for these chips, has led to a forecast that suggests a loss of around 2 million vehicle production slots during the first half of 2020. Though much of this is expected to be made up during the second half, the magnitude of the impact has now clearly led to full year negative revisions as well as 1H effects. Despite near-term production constraints, retail sales demand remains firm. In the U.S., March auto sales (SAAR) were 17.7 million, topping all months since the start of the pandemic and approaching prior "peak" levels of monthly demand. This bodes well for the automotive outlook certainly in the U.S. and underscores the need to restock inventory at the dealer level, which is at historic lows due to the lost production in the period. In China, passenger car retail sales surged 69% to 5.1 million for the first quarter against the prior year pandemic-impacted period. First quarter sales were comparable to the first quarter of 2019, suggesting the market has rebounded from the pandemic, though the level remained substantially below 2018 when 5.7 million vehicles were sold in first quarter. In EMEA, first quarter retail sales of 4.9 million were up 3.6% from the prior year quarter, also suggesting a stable market overall in the region, which was not dramatically impacted by COVID-19 in first quarter last year. For the quarter, global light vehicle production increased 14.0% year-over-year, including a 32.6% increase in Asia Pacific and a 78.2% increase in China. North American production decreased 2.0% after a similar result in Q4 and driven largely by lower Canadian production (U.S. down 0.1%). Current 8 Sensitivity: Business Internal