Specialist
Former senior executive from Axalta Coating Systems Ltd
Agenda
- Axalta Coating Systems' (NYSE: AXTA) industrial business segments
- Key industry dynamics including M&A activity
- Coronavirus impacts – supply chain and potential risks
- 12-month outlook
Questions
1.
What is your updated perspective on the paints and coatings market? What are some of the most relevant macro trends?
2.
What is your competitive analysis of Axalta’s positioning and what do you view as its overall strengths and weaknesses in the market?
3.
Could you outline each of the segments under the industrial umbrella, the end markets they serve, and key demand drivers within each of those end markets?
4.
Are the segments roughly equal in size, or do one or two of them dominate?
5.
What other elements do competitors typically compete on? We have innovation, pricing, distribution and availability. Where do you view Axalta competing and what are the key competitive differences in these markets?
6.
You mentioned a couple of competitors. Does Axalta hold the number one market position in any of those five segments? Who is the key competitor in each of those five categories?
7.
How much pricing power is there in the industrial coatings industry? How should we be thinking about the leverage in the relationship and how much pricing power Axalta has when dealing with customers?
8.
Are contracts or pricing structured differently depending on segments? Is it typically done via site or by the gallonage? How does pricing typically work out in industrial end markets?
9.
What rate of price growth do you think we could expect? Is there anything anecdotal while you were with Axalta that you could share on the price growth you were able to establish?
10.
Where do you feel Axalta has been on this upside, where, over the next several years, we could expect some above-market growth stemming from Axalta within the industrial end markets?
11.
It sounds like Axalta is making strategic inroads to Asia and China specifically. Can you describe that process? Is the competitive landscape greatly different in China, and what has typically been the strategy for penetrating a new market such as China?
12.
How formidable are the domestic competitors in China? Is there a major technology gap?
13.
What are your thoughts on PPG specifically in competition in industrial end markets? Are there any key differentiators between Axalta and PPG when it comes to their industrial segments? Is there any competitive edge or key points of differentiation that you would highlight between the two?
14.
There has been mention of the potential thought of PPG making an acquisition of Axalta or some consolidation scenario between the two. What are your thoughts there? Does it make sense for Axalta to consolidate with another large player such as PPG?
15.
Do you have any additional commentary on the auto, specifically the OEM side of Axalta’s business? You mentioned that might be an area where it is considered to be a bit weaker.
16.
Is there anything that you want to highlight or expand on that we perhaps have not covered?
17.
What do you feel should be the strategic one or two priorities for the industrial end market leaders in paints and coatings, specifically at Axalta, over the next couple of months? What would you be emphasising, if you were in your former role, to navigate some of the volatility presented by coronavirus over the next several months?
