On this page of StockholderLetter.com we present the latest annual shareholder letter from Axalta Coating Systems Ltd. — ticker symbol AXTA. Reading current and past AXTA letters to shareholders can bring important insights into the investment thesis.
A CC E L E R AT I N G PERFORMANCE 2023 ANNUAL REPORT
2023 I N N OVAT I N G S M A RTE R SURFACE SOLUTIONS FOR BETTER LIVING A N D A S U S TA I N A B LE FUTURE DEAR SHAREHOLDERS: Thank you again for your ownership of, and confidence in, Axalta. Reflecting on my first year, I am incredibly proud of the team s achievements and excited about the incredible opportunities that lie ahead. The enterprise delivered on our goal to drive profitable growth and made significant strides towards restoring our historical margins. We believe we are well positioned to deliver on our commitments, and I expect our momentum will continue. RECORD PERFORMANCE IN 2023 Axalta had a tremendous year. We achieved record net sales of $5.2 billion, with positive price-mix growth in all end-markets, record adjusted EBITDA* of $951 million, and near-record levels of free cash flow*. While we faced some challenges, we executed well specifically pricing for the value we provide to our customers, right-sizing costs and driving working capital performance. These actions contributed to our financial results and will continue to be priorities for us in 2024. We also continued our push for growth. All four end-markets delivered improved earnings and profitability versus 2022. We had terrific volume growth in Mobility Coatings supported by normalization of global auto production and new business wins, particularly in China. We made substantial investments to support growth with Chinese OEMs over the past several years including the opening of our new manufacturing site in Jilin. We also delivered in Performance Coatings. We completed our acquisition of Andr Koch, a Swiss distributor, and gained more than 2,500 net body shop wins in Refinish. In addition, our opportunities in wood coatings and energy solutions are providing us with a great platform for expansion in Industrial. *Non-GAAP financial metrics
R E C O G N I Z E D F O R I N N O VAT I O N In 2023, our global technology team continued to focus on improving processes and developing smarter and more efficient products and solutions. Axalta once again introduced fantastic innovations that are critical to support our long-term growth ambitions and help our customers solve problems. We launched Axalta Irus Mix, a fast and efficient, fully automated and completely hands-free mixing machine for the automotive refinish industry. This technology enables customers to automate and mix color like never before all while gaining sustainability benefits. Global demand for Irus Mix continues to build. We also partnered with Xaar, a leading manufacturer of drop-on-demand inkjet technologies. Together, we introduced Axalta NextJet , a sustainable digital paint technology for the transportation industry. This exclusive partnership brings together unique capabilities to better enable Mobility customers to provide two-tone paint options and ultimately more patterns, details and images. We were also honored with several innovation awards that help further differentiate us in the industry. We received well respected Edison Awards for Axalta s Abcite 2060 Flame Spray Powder Coating, Self-Priming Kitchen Cabinet Coating and AquaEC Flex product. We also won a 2023 R&D 100 award for our next generation Imron coating technology that delivers sustainability benefits and improves production cycle time for transportation customers. More recently, we earned 2024 Big Innovation Awards for our Voltatex 7345 A ECO Wire Enamel and Raptor Flameproof Coating, presented by the Business Intelligence Group (BIG). Innovation and sustainability are core to our business. I m excited for how we will continue to drive both to make a positive impact for our customers and on the world. WE WERE ALSO HONORED WITH SEVERAL INNOVATION AWARDS THAT HELP FURTHER LOOKING AHEAD We are committed to focusing on what we can control and pursuing profitable growth initiatives that reinforce Axalta s foundation. Longer-term, we will continue to strengthen our core, drive growth, and enhance our portfolio. We are also working to enhance our values based, ONE Axalta culture. We are prioritizing what matters most, simplifying how we work, and acting with a sense of urgency. I m confident that together as a team we will advance our Purpose of innovating smarter surface solutions for better living and a sustainable future. I strongly believe that we are only just beginning to unlock the potential of the enterprise. We had a transformational 2023 and I m excited for what s next in 2024 and beyond. Chris Villavarayan CEO & President 2 0 2 3 D I F F E R E N T I AT E U S I N T H E I N D U S T RY. The enterprise delivered on our goal to drive profitable growth and made significant strides towards restoring our historical margins.
AT A GLANCE We inn ovate s m art e r s u rf ace s o l u t io n s for bett e r l i vi n g a n d a s u st ai n abl e f u t u re. Earning $5.2B Valuing Products sold in employees countries ~12K in net sales >140 Partnering with Supply the 90,000 Body Shops Top 10 OEM Manufacturers I N N O V A T I O N 15 prestigious R&D awards since 2021 80% of new technology targeted to have sustainable benefit by 2030 ~770 active patents 4 ~470 trademarks M A J O R R & D C E NTE R S ~1.3K scientists, engineers & technical experts
MARKETS & CUSTOMERS WE SERVE: P E R F O R M A N C E C O AT I N G S $ 2 . 1 B I L L I O N ( Net Sales 2023) $ 1 . 3 B I L L I O N ( Net Sales 2023) RE F I N ISH I N DUST RI AL Body Shops Building Products Independent Shops Construction Multi-Shop Operators Battery Solutions Light Vehicle Dealerships Transportation Our Company Owned Stores in EMEA & Central America General Metal Finishing M O B I L I T Y C O AT I N G S $ 1 . 3 B I L L I O N ( Net Sales 2023) $ 0 . 4 B I L L I O N ( Net Sales 2023) LI GH T VE HIC LE CO M M E RC I AL VE H I C LE Automotive Original Equipment Manufacturers Heavy & Medium Duty Trucks Automotive Plastics Suppliers Bus, Rail, & Motorcycles Marine & Aviation Trailers Recreational & Personal Sport Vehicles
 • shareholder letter icon 4/24/2024 Letter Continued (Full PDF)
 • stockholder letter icon 4/25/2023 AXTA Stockholder Letter
 • stockholder letter icon More "Construction Materials & Machinery" Category Stockholder Letters
 • Benford's Law Stocks icon AXTA Benford's Law Stock Score = 98


AXTA Shareholder/Stockholder Letter Transcript:

A CC E L E R AT I N G
PERFORMANCE
2023 ANNUAL REPORT

2023
I N N OVAT I N G S M A RTE R
SURFACE SOLUTIONS
FOR BETTER LIVING
A N D A S U S TA I N A B LE
FUTURE
DEAR SHAREHOLDERS:
Thank you again for your ownership of, and confidence in, Axalta. Reflecting on my first year, I am
incredibly proud of the team   s achievements and excited about the incredible opportunities that lie
ahead. The enterprise delivered on our goal to drive profitable growth and made significant strides
towards restoring our historical margins. We believe we are well positioned to deliver on our
commitments, and I expect our momentum will continue.
RECORD PERFORMANCE IN 2023
Axalta had a tremendous year. We achieved record net sales of $5.2 billion, with positive price-mix growth
in all end-markets, record adjusted EBITDA* of $951 million, and near-record levels of free cash flow*.
While we faced some challenges, we executed well     specifically pricing for the value we provide to our
customers, right-sizing costs and driving working capital performance. These actions contributed to our
financial results and will continue to be priorities for us in 2024.
We also continued our push for growth. All four end-markets delivered improved earnings and profitability
versus 2022. We had terrific volume growth in Mobility Coatings supported by normalization of global auto
production and new business wins, particularly in China. We made substantial investments to support growth
with Chinese OEMs over the past several years including the opening of our new manufacturing site in Jilin.
We also delivered in Performance Coatings. We completed our acquisition of Andr   Koch, a Swiss distributor,
and gained more than 2,500 net body shop wins in Refinish. In addition, our opportunities in wood coatings
and energy solutions are providing us with a great platform for expansion in Industrial.
*Non-GAAP financial metrics

R E C O G N I Z E D F O R I N N O VAT I O N
In 2023, our global technology team continued to focus
on improving processes and developing smarter and
more efficient products and solutions. Axalta once again
introduced fantastic innovations that are critical to
support our long-term growth ambitions and help our
customers solve problems.
We launched Axalta Irus Mix, a fast and efficient, fully
automated and completely hands-free mixing machine for
the automotive refinish industry. This technology enables
customers to automate and mix color like never before    
all while gaining sustainability benefits. Global demand
for Irus Mix continues to build.
We also partnered with Xaar, a leading manufacturer of
drop-on-demand inkjet technologies. Together, we introduced
Axalta NextJet   , a sustainable digital paint technology
for the transportation industry. This exclusive partnership
brings together unique capabilities to better enable
Mobility customers to provide two-tone paint options and
ultimately more patterns, details and images.
We were also honored with several innovation awards that
help further differentiate us in the industry. We received
well respected Edison Awards    for Axalta   s Abcite   2060
Flame Spray Powder Coating, Self-Priming Kitchen Cabinet
Coating and AquaEC   Flex product. We also won a 2023
R&D 100 award for our next generation Imron    coating
technology that delivers sustainability benefits and
improves production cycle time for transportation
customers. More recently, we earned 2024 Big Innovation
Awards for our Voltatex   7345 A ECO Wire Enamel and
Raptor   Flameproof Coating, presented by the Business
Intelligence Group (BIG).
Innovation and sustainability are core to our business.
I   m excited for how we will continue to drive both to make
a positive impact for our customers and on the world.
WE WERE ALSO HONORED WITH SEVERAL
INNOVATION AWARDS THAT HELP FURTHER
LOOKING AHEAD
We are committed to focusing on what we can control and pursuing profitable
growth initiatives that reinforce Axalta   s foundation. Longer-term, we will
continue to strengthen our core, drive growth, and enhance our portfolio.
We are also working to enhance our values based, ONE Axalta culture.
We are prioritizing what matters most, simplifying how we work, and
acting with a sense of urgency. I   m confident that together as a team
we will advance our Purpose of innovating smarter surface solutions
for better living and a sustainable future.
I strongly believe that we are only just beginning to unlock the potential
of the enterprise. We had a transformational 2023 and I   m excited for
what   s next in 2024 and beyond.
Chris Villavarayan
CEO & President
2 0 2 3
D I F F E R E N T I AT E U S I N T H E I N D U S T RY.
The enterprise delivered
on our goal to drive
profitable growth and
made significant strides
towards restoring our
historical margins.

AT A GLANCE
We inn ovate s m art e r s u rf ace s o l u t io n s
for bett e r l i vi n g a n d a s u st ai n abl e f u t u re.
Earning
$5.2B
Valuing
Products sold in
employees
countries
~12K
in net sales
>140
Partnering with
Supply the
90,000 Body Shops
Top 10 OEM Manufacturers
I N N O V A T I O N
15
prestigious R&D awards
since 2021
80%
of new technology
targeted to have
sustainable
benefit by 2030
~770
active patents
4
~470
trademarks
M A J O R R & D C E NTE R S
~1.3K
scientists, engineers
& technical experts

MARKETS & CUSTOMERS WE SERVE:
P E R F O R M A N C E C O AT I N G S
$ 2 . 1 B I L L I O N ( Net Sales 2023)
$ 1 . 3 B I L L I O N ( Net Sales 2023)
RE F I N ISH
I N DUST RI AL
    Body Shops
    Building Products
    Independent Shops
    Construction
    Multi-Shop Operators
    Battery Solutions
    Light Vehicle Dealerships
    Transportation
    Our Company Owned Stores in
EMEA & Central America
    General Metal Finishing
M O B I L I T Y C O AT I N G S
$ 1 . 3 B I L L I O N ( Net Sales 2023)
$ 0 . 4 B I L L I O N ( Net Sales 2023)
LI GH T VE HIC LE
CO M M E RC I AL VE H I C LE
    Automotive Original Equipment Manufacturers
    Heavy & Medium Duty Trucks
    Automotive Plastics Suppliers
    Bus, Rail, & Motorcycles
    Marine & Aviation
    Trailers
    Recreational & Personal Sport Vehicles



shareholder letter icon 4/24/2024 Letter Continued (Full PDF)
 

AXTA Stockholder/Shareholder Letter (Axalta Coating Systems Ltd.) | www.StockholderLetter.com
Copyright © 2023 - 2024, All Rights Reserved

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.