Axalta Coating Systems (axta) First Quarter 2021 Financial Results

Mobility 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

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