# DEAR FELLOW SHAREHOLDERS

_Source: `DeepSeekOCR_Ardian_pruned_1k/basic-materials-specialty-chemicals/NYSE_AXTA_2020/NYSE_AXTA_2020.mmd` · pages 3-9_

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DEAR FELLOW SHAREHOLDERS,

Looking back on 2020, I am proud of the tremendous accomplishments of our 13,000 team members who managed through the uncertainty and unprecedented challenges brought on by the global pandemic. Our top priority was, and still is, the health and safety of our people. At the same time, we remained focused on serving our customers, driving innovation, and operational excellence. In spite of the challenges, we continued to innovate, grow, and execute initiatives to create lasting value for all our stakeholders.

## PERFORMANCE

We entered 2020 with strong plans in place to capture growth opportunities, leverage innovation to create value for our customers, and generate strong cash flow and returns on capital.

Amid the significant change in our operating environment and end-markets, we quickly shifted gears and took swift action to position Axalta to weather the downturn and capture the recovery in our end-markets. We delivered $215 million of cost savings for the full year – including $65 million of incremental structural savings. Despite the decline in revenue and earnings for the full year, we delivered record cash flow in Q3 and record operating profit and cash flow in Q4 as our markets began to recover.

In addition, we put into motion plans that would set the Company up for accelerated growth post-recovery. We implemented an organizational realignment to a business unit led structure that accelerates decision making, improves execution, and increases accountability. This change further supports our ability to deliver sustained growth in new and existing geographies as well as in underpenetrated end-markets. We also augmented an already strong leadership team by adding world-class talent to lead two of our global business units and our strategy, M&A, and business development function.

While all of these changes were occurring in and outside our Company, we continued to focus on innovation and advancing our product and service offerings. Our R&D efforts focused on providing solutions for customers that improve productivity, deliver superior performance, and support sustainability and ESG objectives. We expanded product portfolios in every line of business and were recognized around the world by customers, industry groups, and the media for innovation, quality, and excellence in execution. We won the Gold Edison Award \( ^{™} \)  – one of the most prestigious accolades for excellence in new product and service development, marketing, design, and innovation in the world – for our Voltatex \( ^{®} \)  4224 product. We were also honored by customers and industry groups, including Honda, Daimler Trucks, AutoData, and Auto Business Review for achievements in quality and excellence.

We made important progress on ESG initiatives to meet stakeholder expectations and drive long-term shareholder value. Throughout 2020, we launched innovative products that both reduce the environmental impact from our own operations and enhance the sustainability efforts of our customers. We provided a safe working environment for our employees and achieved top decile safety performance in our industry. We also helped to strengthen the communities where we operate through our corporate social responsibility programs. I invite you to learn more about our many ESG initiatives in our latest Sustainability report (https://sustainability.axalta.com), which we issued in July 2020.

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## LOOKING AHEAD

Today, we are well positioned with advantaged technology solutions, strong customer relationships, and leading market positions. As we look ahead, we believe Axalta is poised to accelerate profitable growth and create substantial shareholder value by executing our growth strategy. We'll achieve these goals by:

• Driving innovation to deliver products and solutions that support our customers' current needs while helping them anticipate future requirements for their rapidly evolving industries

• Accelerating growth by rapidly commercializing new products and services

• Executing strategic acquisitions to support our growth plans both in our current markets and adjacencies

• Focusing on operational excellence through continuous improvement initiatives that advance our commitment to safety, quality, and reliability

I want to once again thank our entire organization who delivered for our customers, innovated to drive future growth, added major wins in every one of our businesses, and supported the communities where we live and work.

On behalf of the Axalta Board and our global team, thank you for your continued support and commitment to Axalta. We are excited about our future and the many opportunities ahead to accelerate growth and deliver value for you, our shareholders.

Sincerely,

## Robert W. Bryant

Robert W. Bryant

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