Axalta Coating Systems Ltd. (AXTA) 2023 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to Axalta's Q4 and Full Year 2023 Earnings Call. (Operator Instructions). A question-and-answer session will follow the presentation by management.

各位女士、先生，感謝您稍候。歡迎參加 Axalta 2023 年第四季暨全年財報電話會議。（接線員指示）管理階層簡報結束後將進行問答環節。

Today's call is being recorded, and a replay will be available through February 15. Those listening after today's call should please note that the information provided in the recording will not be updated and therefore may no longer be current.

今天的電話會議將被錄音，並將提供重播至 2 月 15 日。於今日會議後收聽重播者請注意，錄音中提供的資訊不會更新，因此可能不再是最新資訊。

I will now turn the call over to Chris Evans. Please go ahead, sir.

現在我將把電話會議交給 Chris Evans。先生，請開始。

Thank you, and good morning. This is Chris Evans, VP of Investor Relations. We appreciate your continued interest in Axalta and welcome you to our fourth quarter and full year 2023 financial results conference call. Joining me today are Chris Villavarayan, CEO and President; and Carl Anderson, CFO.

謝謝，大家早安。我是 Chris Evans，投資人關係副總裁。我們感謝各位持續關注 Axalta，並歡迎各位參加我們 2023 年第四季暨全年財務結果電話會議。今天與我一同出席的有執行長兼總裁 Chris Villavarayan，以及財務長 Carl Anderson。

We released our quarterly financial results this morning and posted a slide presentation to the Investor Relations section of our website at axalta.com, which we will be referencing during this call.

我們今天早上已發布季度財務結果，並在 axalta.com 網站的投資人關係專區上傳了簡報投影片，本次電話會議將引用該簡報內容。

Our prepared remarks, the slide presentation and our discussion today may contain forward-looking statements, reflecting the company's current view of future events and their potential effect on Axalta's operating and financial performance. These statements involve uncertainties and risks, and actual results may differ materially from those forward-looking statements. Please note that the company is under no obligation to provide updates to these forward-looking statements.

我們的事先準備講稿、投影片簡報以及今天的討論可能包含前瞻性陳述，反映公司目前對未來事件及其對 Axalta 營運與財務表現之潛在影響的看法。這些陳述涉及不確定性與風險，實際結果可能與前瞻性陳述有重大差異。請注意，公司沒有義務就這些前瞻性陳述提供更新。

Our remarks and the slide presentation also contain various non-GAAP financial measures. In the appendix of the slide presentation, we've included reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures. For additional information regarding forward-looking statements and non-GAAP financial measures, please refer to our filings with the SEC.

我們的發言與投影片簡報亦包含多項非 GAAP 財務衡量指標。在投影片簡報的附錄中，我們已提供這些非 GAAP 財務衡量指標與最直接可比的 GAAP 財務衡量指標之調節表。關於前瞻性陳述與非 GAAP 財務衡量指標的更多資訊，請參閱我們向 SEC 提交的文件。

I will now turn the call over to Chris.

現在我將把電話會議交給 Chris。

Thank you, Chris, and good morning, everyone. This was another great quarter for Axalta. I'm pleased that we met or exceeded all targets for our full year guidance, and I want to thank the entire global team for their dedication and strong execution.

謝謝你，Chris，各位早安。這對 Axalta 來說又是一個非常出色的季度。我很高興我們達成或超越了全年財測指引的所有目標，並要感謝全球團隊的投入與強勁執行力。

Q4 net sales increased 5% year-over-year to $1.3 billion with positive contributions from both segments. Volumes improved 2% year-over-year, led by a 9% growth in Mobility Coatings. This represents our seventh consecutive quarter of mobility volumes growth as auto productions have normalized from historic lows, and we have successfully repositioned our portfolio with some of the fastest-growing automotive OEMs.

第四季淨銷售額年增 5% 至 13 億美元，兩大事業部皆有正向貢獻。銷量年增 2%，主要由 Mobility Coatings（移動塗料）9% 的成長帶動。這是我們連續第七個季度移動領域銷量成長，因汽車產量已自歷史低點回歸常態，同時我們也成功重新定位產品組合，切入部分成長最快的汽車 OEM。

Price-mix was a 1% year-over-year improvement, with pure pricing approximately 3% better year-over-year when excluding mix effects and onetime pricing realization. All end markets contributed to better year-over-year pricing gains.

價格/組合（price-mix）年增改善 1%；若排除組合效應與一次性價格實現因素，純價格（pure pricing）約較去年同期提升 3%。所有終端市場均對年增的定價提升有所貢獻。

This was a great achievement for our commercial teams and a demonstration on our ongoing emphasis on pricing realization. Going forward, we will remain disciplined as we face pressure from higher labor costs and strive to restore margins to historical levels.

這是我們商務團隊的一項重大成果，也展現我們持續強調價格落地（pricing realization）的努力。展望未來，面對更高的人力成本壓力，我們將維持紀律，並致力於將利潤率恢復至歷史水準。

Adjusted EBITDA increased 21% year-over-year to $251 million, and adjusted EBITDA margins improved by 250 basis points to 19.3%.

調整後 EBITDA 年增 21% 至 2.51 億美元，調整後 EBITDA 利潤率提升 250 個基點至 19.3%。

I would like to now review some of our key accomplishments from the past year on Slides 4 and 5. 2023 was a tremendous year for Axalta, in which we achieved record net sales and adjusted EBITDA. 2023 net sales were $5.2 billion, 6% better versus 2022, with all end markets reporting positive price mix growth.

接下來我想在投影片第 4 與第 5 頁回顧過去一年我們的一些關鍵成果。2023 年對 Axalta 而言是非常卓越的一年，我們創下淨銷售額與調整後 EBITDA 的歷史新高。2023 年淨銷售額為 52 億美元，較 2022 年提升 6%，且所有終端市場皆呈現正向的價格/組合成長。

Mobility Coatings volumes growth of 10.6% was supported by normalization of global auto production and further supplemented by new business wins, particularly in China. We have made substantial investments to support growth with local Chinese OEMs over the past several years, as exemplified with the opening of our new manufacturing site in Jilin. We continue to see this region as an attractive long-term opportunity for the business.

Mobility Coatings 銷量成長 10.6%，受惠於全球汽車產量常態化，並由新業務得標進一步挹注，尤其是在中國。過去數年我們已投入大量資本以支持與中國本土 OEM 的成長，例如我們在吉林新製造基地的啟用即為明證。我們持續將該地區視為本業務具吸引力的長期機會。

However, strong growth in Mobility Coatings was balanced by volume weakness in Performance Coatings that were centered around soft construction activity within our industrial end market, yet Refinish remains a very attractive and resilient market. The team delivered another excellent year with over 2,500 net body shop wins, expanding on our leading position. Altogether, we remain focused on what we can control and are committed to profitable growth initiatives that reinforce the foundation of Axalta.

然而，Mobility Coatings 的強勁成長，部分被 Performance Coatings（性能塗料）銷量疲弱所抵銷；該疲弱主要集中於我們工業終端市場中較為疲軟的建築活動。不過，修補漆（Refinish）仍是非常具吸引力且具韌性的市場。團隊再度交出亮眼成績，淨新增超過 2,500 家鈑噴廠客戶，進一步鞏固我們的領先地位。整體而言，我們仍專注於可控事項，並致力於推動獲利成長計畫，以強化 Axalta 的根基。

To that end, I'm excited that during 2023, the technology team was honored with several awards for the incredible new innovations we produced for our customers. New offerings, such as Axalta Irus and NextJet, are critical to support our long-term growth ambitions.

為此，我很振奮地分享：在 2023 年，我們的技術團隊因為為客戶打造的卓越新創新而獲得多項獎項肯定。Axalta Irus 與 NextJet 等新產品，對於支持我們長期成長企圖心至關重要。

And lastly, we completed the acquisition of Andre Koch, a Swiss refinish distributor. This strategic acquisition positions us well in the attractive Swiss auto aftermarket and gets us closer to our body shop customers. Early results have been promising. We're on track with the integration plan and see lots of opportunity for growth, including in non-paint accessories.

最後，我們完成了對瑞士修補漆經銷商 Andre Koch 的收購。這項策略性收購使我們在具吸引力的瑞士汽車售後市場中占據有利位置，並讓我們更貼近鈑噴廠客戶。初期成果令人鼓舞。我們正按計畫推進整合，並看到大量成長機會，包括非塗料配件等領域。

My main focus since joining Axalta has been to drive improved efficiency and performance across the enterprise. We have made progress on both these fronts this year. I'm excited to report record annual adjusted EBITDA of $951 million, an improvement of 17% year-over-year. This was an incredible achievement for the team and an early reflection of the transformational journey underway.

自我加入 Axalta 以來，我的主要重點是推動全企業效率與績效的提升。今年我們在這兩方面都取得進展。我很高興報告年度調整後 EBITDA 創下 9.51 億美元的新高，年增 17%。這是團隊令人驚豔的成就，也反映我們轉型旅程已在早期展現成果。

All 4 end markets delivered improved earnings and profitability versus 2022. Refinish had another solid performance, with the third consecutive year achieving record sales and earnings. In both Light and Commercial Vehicle, we have made incredible progress after several years of market challenges. Mobility Coatings second half adjusted EBITDA is now consistent with 2019 run rate, setting us up well for 2024. And lastly, Industrial earnings improved versus 2022, despite volumes being almost 20% below 2021 levels.

四個終端市場的獲利與盈利能力皆較 2022 年改善。修補漆再度表現穩健，連續第三年創下銷售與獲利新高。在輕型車與商用車領域，歷經數年的市場挑戰後，我們已取得顯著進展。Mobility Coatings 下半年調整後 EBITDA 已與 2019 年的運行水準一致，為 2024 年奠定良好基礎。最後，儘管工業領域銷量仍較 2021 年水準低近 20%，其獲利仍較 2022 年改善。

The entire enterprise is delivering on our stated goal to drive profitable growth, and we're making progress towards a return to historic margins. Full year adjusted EBITDA margins improved by 180 basis points to 18.4%. During the year, we drove urgency and speed with our productivity and purchasing initiatives, which we believe accelerated the capture of incremental benefits, in addition to deflationary gains. We're driving growth in areas with attractive returns, while selectively shedding others that don't meet our margin threshold.

整個企業正落實我們所宣示的獲利成長目標，並朝回到歷史利潤率邁進。全年調整後 EBITDA 利潤率提升 180 個基點至 18.4%。今年我們透過生產力與採購計畫推動緊迫感與速度，我們相信這加速了增量效益的取得，並疊加了通縮帶來的收益。我們在具吸引力報酬的領域推動成長，同時有選擇地退出未達我們利潤率門檻的業務。

Free cash flow was another bright spot. We ended the year at near record levels and drove inventory reduction and benefited from increased operating earnings. 2023 adjusted diluted EPS of $1.57 improved by 6% year-over-year. For the first time in the history of Axalta, we ended the fiscal year with net leverage below 3x and plan to continue to strengthen the balance sheet going forward.

自由現金流也是另一個亮點。我們在接近歷史高點的水準結束年度，並推動庫存下降，同時受惠於營運獲利提升。2023 年調整後稀釋每股盈餘（EPS）為 1.57 美元，年增 6%。Axalta 歷史上首次在會計年度結束時將淨槓桿降至 3 倍以下，並計畫未來持續強化資產負債表。

We demonstrated significant improvements in our operating performance and ended the year significantly more profitable than we started. While Axalta's transformation is just beginning, I am encouraged by the pace of progress. Our teams are focused on the right objectives, and we're winning together as one Axalta.

我們展現了營運表現的顯著改善，並以遠較年初更高的獲利能力結束年度。雖然 Axalta 的轉型才剛開始，但我對進展速度感到鼓舞。我們的團隊聚焦於正確的目標，並以「同一個 Axalta」的精神共同贏得成果。

As we exit 2023, I am encouraged by the trajectory of our core market and excited about the investments being made across the business. I believe we're well set up as we head into 2024 after a solid fourth quarter and a transformational 2023.

在結束 2023 年之際，我對核心市場的走勢感到樂觀，也對公司各項投資感到振奮。在穩健的第四季與轉型性的 2023 年之後，我相信我們已為邁入 2024 年做好充分準備。

I will now hand the call off to Carl to review our financial results.

現在我將把電話會議交給 Carl，請他回顧我們的財務結果。

Thank you, Chris, and good morning, everyone. Before reviewing our financial results in more detail, I would like to highlight that we have changed our primary reporting metric from adjusted EBIT to adjusted EBITDA. The change was made to reflect the way we measure the financial performance of our two segments and allocate resources as well as more closely aligned to the design of our long-term incentive plans. We have provided historical reconciliations in the appendix of the press release.

謝謝你，Chris，各位早安。在更詳細檢視財務結果之前，我想先強調：我們已將主要揭露指標由調整後 EBIT 改為調整後 EBITDA。此變更是為了反映我們衡量兩大事業部財務表現與資源配置的方式，並使其更貼近我們長期激勵計畫的設計。我們已在新聞稿附錄中提供歷史調節表。

Let's turn to Slide 6. Fourth quarter net sales increased 5% year-over-year to $1.3 billion, with positive sales contributions from both segments. Consolidated volumes were up 2% year-over-year as strong Mobility Coatings growth more than offset declines in Performance Coatings.

讓我們看第 6 張投影片。第四季淨銷售額年增 5% 至 13 億美元，兩大事業部門皆對銷售帶來正向貢獻。合併出貨量年增 2%，行動塗料（Mobility Coatings）的強勁成長，足以抵銷性能塗料（Performance Coatings）的下滑。

Price-mix improved by 90 basis points compared to the prior year period. The pure pricing benefit was approximately 300 basis points higher compared to last year, but was partially offset by negative mix and a challenging comparison from the fourth quarter of 2022.

與去年同期相比，價格/組合（price-mix）改善 90 個基點。純粹定價帶來的效益較去年約高出 300 個基點，但部分被不利的產品組合以及 2022 年第四季的高比較基期所抵銷。

Adjusted EBITDA in the quarter was $251 million, a 21% increase from $208 million in the prior year period. Adjusted EBITDA margin improved by 250 basis points to 19.3%.

本季調整後 EBITDA 為 2.51 億美元，較去年同期的 2.08 億美元成長 21%。調整後 EBITDA 利潤率提升 250 個基點至 19.3%。

Unit rate variable costs were approximately 12% lower year-over-year, with improvements across nearly all categories, marking the third consecutive quarter of realized deflation. Supply/demand imbalances in isocyanates, monomers and epoxy resins helped drive a large portion of the benefit. We are also pleased with the additional savings driven by the productivity initiatives we launched last year, which enabled us to improve negotiating flexibility in contract terms.

單位費率變動成本約較去年同期下降 12%，幾乎所有類別皆有改善，這是連續第三季實現通縮效益。異氰酸酯、單體與環氧樹脂的供需失衡，推動了相當大部分的效益。我們也對去年啟動的生產力提升計畫所帶來的額外節省感到滿意，該計畫使我們在合約條款談判上具備更高的彈性。

We believe that the favorable raw material environment will continue into 2024, with comparisons strongly benefiting the first half of the year. Yet as Chris highlighted earlier, we will remain disciplined in managing our cost structure as we go forward. And finally, adjusted diluted earnings per share increased 13% year-over-year to $0.43, despite significantly higher interest expense.

我們認為有利的原物料環境將延續至 2024 年，且比較基期將使上半年明顯受惠。然而，如同 Chris 先前所強調，我們未來仍將在成本結構管理上保持紀律。最後，儘管利息費用顯著上升，調整後稀釋每股盈餘仍年增 13% 至 0.43 美元。

Moving to Slide 7. Performance Coatings fourth quarter net sales improved by 4% year-over-year to $849 million. Refinish organic net sales improved by a mid-single-digit percent compared to the prior year period with positive price-mix and volume. This was the 12th consecutive quarter of positive year-over-year net sales growth, and we ended the year with record annual Refinish earnings.

接著看第 7 張投影片。性能塗料第四季淨銷售額年增 4% 至 8.49 億美元。修補漆（Refinish）有機淨銷售額較去年同期以中個位數百分比成長，價格/組合與出貨量皆為正向。這是連續第 12 季淨銷售額年增為正，我們也以創紀錄的年度修補漆獲利結束本年度。

Industrial organic net sales were mid-single-digit percent lower year-over-year as positive price-mix was more than offset by lower volumes, principally due to weaker activity in the North America construction market and from the strategic decision to exit certain customers. We see early signs of stabilization. However, demand appears at this time to be relatively muted in the early parts of 2024. Despite lower reported volumes amid a soft macroeconomic backdrop, the industrial team improved margins considerably year-over-year through cost management and pricing discipline.

工業塗料（Industrial）有機淨銷售額年減中個位數百分比，正向的價格/組合被較低的出貨量所抵銷，主要原因為北美建築市場活動轉弱，以及策略性決定退出部分客戶。我們看到初步的穩定跡象；然而，目前看來 2024 年初期需求仍相對疲弱。儘管在偏弱的總體經濟背景下，報告出貨量下降，工業團隊仍透過成本管理與定價紀律，使利潤率較去年同期大幅改善。

Performance Coatings fourth quarter adjusted EBITDA was $192 million versus $169 million in the prior year period, with solid contributions from both end markets. Segment adjusted EBITDA margins improved by 200 basis points, led by favorable price-cost dynamics, which more than offset lower volumes in industrial and higher variable labor costs.

性能塗料第四季調整後 EBITDA 為 1.92 億美元，去年同期為 1.69 億美元，兩個終端市場皆有穩健貢獻。事業部調整後 EBITDA 利潤率提升 200 個基點，主要受惠於有利的價格與成本動態，足以抵銷工業端出貨量下降以及較高的變動人工成本。

Turning to Mobility Coatings results on Slide 8. Fourth quarter Mobility Coatings net sales increased 7% to $449 million year-over-year. Light Vehicle organic net sales increased by a mid-single-digit percent compared to the prior year period. Volumes were once again very strong, led primarily by above-market growth in China. The UAW strike in North America ultimately had limited impact in the quarter.

接著看第 8 張投影片的行動塗料表現。第四季行動塗料淨銷售額年增 7% 至 4.49 億美元。輕型車（Light Vehicle）有機淨銷售額較去年同期以中個位數百分比成長。出貨量再次非常強勁，主要由中國高於市場的成長所帶動。北美 UAW 罷工最終對本季影響有限。

Our expectation for global light vehicle production in 2024 is relatively stable, following the strong recovery in builds over the past 2 years. Over this time, the team has done a great job in diversifying our sales mix and positioning us favorably with the fastest-growing OEMs.

我們對 2024 年全球輕型車產量的預期相對穩定，因過去兩年組裝量已強勁復甦。在此期間，團隊在多元化我們的銷售組合方面表現出色，並使我們在成長最快的 OEM 客戶中具備有利定位。

Price-mix declined year-over-year driven by negative mix impacts and the absence of a onetime price benefit we realized in the fourth quarter of 2022. However, pure pricing was up low single digits versus the prior year. Commercial Vehicle organic net sales improved by a high single-digit percentage compared to the fourth quarter of 2022. The year-over-year improvement was led by low-teens volume growth in Latin America, with sustained strong demand in North America. We expect North America Class 8 truck demand will decline modestly in 2024, as we are encouraged by elevated backlogs and positive comments from our large customers who see less downside than third-party industry forecasters.

價格/組合年減，主要受不利的組合影響，以及 2022 年第四季一次性定價效益不再。然純粹定價相較去年仍為低個位數成長。商用車（Commercial Vehicle）有機淨銷售額較 2022 年第四季以高個位數百分比成長。年增改善主要由拉丁美洲出貨量低十位數成長所帶動，北美需求亦持續強勁。我們預期 2024 年北美 Class 8 卡車需求將小幅下滑；不過，我們對偏高的訂單積壓（backlog）以及大型客戶的正面回饋感到鼓舞，客戶認為下行風險小於第三方產業預測機構所估。

Mobility Coatings adjusted EBITDA improved to $59 million from $39 million, a 50% increase year-over-year. Adjusted EBITDA margin improved by 380 basis points to 13.2% driven by lower variable input costs and robust volume growth.

行動塗料調整後 EBITDA 由 3,900 萬美元提升至 5,900 萬美元，年增 50%。調整後 EBITDA 利潤率提升 380 個基點至 13.2%，主要受惠於較低的變動投入成本與強勁的出貨量成長。

Turning to Slide 9 for a review of our full year results. Net sales grew 6% year-over-year to $5.2 billion, a new company record. Net sales improvement was driven primarily by positive price-mix contributions across every end market. Volumes were down modestly on a full year basis, as growth in Mobility Coatings was offset by a slight decline in Performance Coatings.

接著看第 9 張投影片，回顧全年表現。淨銷售額年增 6% 至 52 億美元，創公司新高。淨銷售額改善主要來自各終端市場皆有正向的價格/組合貢獻。全年出貨量小幅下滑，因行動塗料的成長被性能塗料的些微下滑所抵銷。

Adjusted EBITDA was $951 million, a $141 million improvement and a new company record, as favorable price and raw material trends offset headwinds from increased productivity investments and higher variable labor expenses. The contribution from Mobility Coatings to adjusted EBITDA growth was substantial, improving by nearly $100 million versus the prior year period.

調整後 EBITDA 為 9.51 億美元，增加 1.41 億美元並創公司新高；有利的價格與原物料趨勢抵銷了生產力投資增加及較高的變動人工費用等逆風。行動塗料對調整後 EBITDA 成長的貢獻相當顯著，較去年同期提升近 1 億美元。

Adjusted EBITDA margin improved by 180 basis points to 18.4%, with a notable step-up in the second half of the year to 19.6% versus 17% in the first half.

調整後 EBITDA 利潤率提升 180 個基點至 18.4%，其中下半年明顯躍升至 19.6%，相較上半年為 17%。

Adjusted diluted earnings per share increased by 6% to $1.57, despite a $74 million interest expense headwind, a modestly higher tax expense and $23 million in exchange losses stemming from revaluation of assets denominated principally in the Argentinian peso and Turkish lira. We have recently taken action that is intended to mitigate foreign exchange risk in Argentina going forward.

調整後稀釋每股盈餘成長 6% 至 1.57 美元，儘管面臨 7,400 萬美元的利息費用逆風、稅費小幅增加，以及因以阿根廷披索與土耳其里拉計價資產重估所產生的 2,300 萬美元匯兌損失。我們近期已採取措施，旨在降低未來在阿根廷的外匯風險。

Free cash flow of $447 million increased by 174% compared to the prior year, led by higher operating profit and targeted working capital reductions stemming from midyear productivity initiatives. As a result of the stronger operating results, we ended the year with a substantially improved balance sheet.

自由現金流為 4.47 億美元，較去年成長 174%，主要受惠於較高的營業獲利，以及年中生產力計畫帶動的營運資金定向降低。由於營運成果更強勁，我們在年底的資產負債表顯著改善。

Turning to Slide 10. We ended the year with $1.2 billion in total liquidity, including a cash balance of approximately $700 million. Our total net leverage ratio ended the year at 2.9x, nearly a full turn below last year and our best ever year-end leverage ratio. Capital outlays in 2023 amounted to over $500 million, balanced between $214 million of gross debt reduction, a $138 million in capital expenditures, $106 million in M&A and $50 million in share repurchases.

接著看第 10 張投影片。我們年底總流動性為 12 億美元，其中現金餘額約 7 億美元。年底總淨槓桿比為 2.9 倍，較去年降低接近整整 1 倍，亦為我們歷來最佳的年底槓桿比。2023 年資本支出合計超過 5 億美元，配置相對均衡：其中 2.14 億美元用於總債務減少、1.38 億美元資本支出（CapEx）、1.06 億美元併購（M&A），以及 5,000 萬美元庫藏股回購。

Going forward, we expect to modestly increase internal investments in CapEx, net of a significant decline in ERP-related spending in 2024, with an emphasis on improving return on invested capital. We see many value creation avenues for capital allocation, including further gross debt reduction, opportunistic share buybacks and accretive M&A and strategic opportunities.

展望未來，我們預期在 2024 年 ERP 相關支出大幅下降後，將在扣除該因素的基礎上小幅提高內部 CapEx 投資，並著重提升投入資本報酬率（ROIC）。我們看到許多資本配置的價值創造途徑，包括進一步降低總債務、把握時機進行股票回購，以及具增益性的併購與策略性機會。

During the fourth quarter, we refinanced our 2025 senior notes set to mature in January of '25, with approximately $500 million of new notes with a maturity date of February 2031. As a result of this refinancing, we do not have another bond maturity until 2027. Our plan is to keep interest expense flat in 2024, despite the net increase in interest associated with the bond refinancing. Available offsets include gross debt reduction, interest rate derivatives and the option to reprice our term loan at potentially favorable rates.

在第四季，我們為原定於 2025 年 1 月到期的 2025 年期優先票據進行再融資，發行約 5 億美元的新票據，到期日為 2031 年 2 月。透過此次再融資，我們在 2027 年之前將不再有債券到期。我們的計畫是在 2024 年將利息費用維持持平，儘管因債券再融資導致利息淨額增加。可用的抵銷方式包括降低總債務、利率衍生性商品，以及以可能更有利的利率重新定價我們的定期貸款（term loan）的選項。

We intend to continue to strengthen our balance sheet and believe deleveraging is one of the most important value creation levers for Axalta in the near term. The high end of our target net leverage of 2.5x should be achievable in 2024 through natural deleveraging and disciplined capital allocation.

我們打算持續強化資產負債表，並相信在短期內，去槓桿（deleveraging）是 Axalta 最重要的價值創造槓桿之一。透過自然去槓桿與嚴謹的資本配置，我們目標淨槓桿 2.5 倍區間的上緣應可在 2024 年達成。

I will now turn the call back to Chris for our 2024 financial guidance and closing remarks.

我現在把電話交回給 Chris，請他說明我們 2024 年的財務指引並做結語。

Thanks, Carl.

謝謝，Carl。

Let's turn to Slide 11. I'm proud of the team for executing well and driving record 2023 financial performance. I see considerable opportunity to build from here and fully expect us to achieve another record year of earnings in 2024.

我們來看第 11 頁投影片。我為團隊的出色執行感到自豪，並推動 2023 年創紀錄的財務表現。我看到從這裡繼續成長的巨大機會，並完全預期我們在 2024 年將再度達成創紀錄的獲利年度。

Net sales in the first quarter are expected to be approximately flat year-over-year. We project volumes and price-mix growth to be modest and roughly balanced for the period.

第一季淨銷售額預期與去年同期大致持平。我們預估本期的銷量與價格/組合（price-mix）成長將較為溫和，且大致相互抵銷、維持平衡。

First quarter adjusted EBITDA is projected to be roughly 13% year-over-year to approximately $240 million, with the majority of the improvement supported by margin growth.

第一季調整後 EBITDA 預計較去年同期成長約 13%，約為 2.40 億美元，其中大部分改善將由毛利率提升所支撐。

First quarter adjusted diluted EPS is expected to be roughly $0.40. Full year net sales are expected to grow by a low single-digit percent year-over-year, with positive contributions from both segments.

第一季調整後稀釋每股盈餘（EPS）預期約為 0.40 美元。全年淨銷售額預期將較去年同期成長低個位數百分比，且兩個事業部門皆將有正向貢獻。

As for the end markets, we assume a stable refinish environment, with upside opportunity for Axalta as we continue to drive body shop wins and further penetrate nonpaint accessories. In Industrial, we expect volumes to remain at current run rates through the year as we do not yet see signs of an upturn. For Light Vehicle, we assumed flat global build rates following a strong production recovery in 2023 and expect Axalta to slightly overperform driven by the business wins and mix. Price-mix is expected to be positive, net of any RMI impacts. And lastly, in Commercial Vehicle, we assume North American Class 8 builds will begin to slow midyear before demand ramps back up in 2025 and '26, ahead of new emission standards being implemented in 2027.

就終端市場而言，我們假設修補漆（Refinish）環境穩定；隨著我們持續推動鈑噴廠（body shop）勝出並進一步滲透非塗料配件，Axalta 仍有上行機會。在工業（Industrial）方面，由於我們尚未看到復甦跡象，預期全年銷量將維持目前的運行水準。在輕型車（Light Vehicle）方面，繼 2023 年產量強勁復甦後，我們假設全球整車產量持平，並預期 Axalta 將在業務勝出與組合帶動下略優於市場。價格/組合預期為正，並已扣除任何 RMI 影響。最後，在商用車（Commercial Vehicle）方面，我們假設北美 8 級卡車（Class 8）產量將於年中開始放緩，之後在 2025 年與 2026 年需求再度回升，並領先於 2027 年將實施的新排放標準。

Full year adjusted EBITDA is expected to be between $1.01 billion and $1.05 billion, equating to adjusted diluted EPS between $1.80 and $1.95. We foresee a typical quarterly earnings cadence with seasonal strength in the middle of the year. Guidance includes a mid-single-digit variable cost deflation tailwind that is first half weighted.

全年調整後 EBITDA 預期介於 10.1 億至 10.5 億美元之間，對應調整後稀釋 EPS 介於 1.80 至 1.95 美元。我們預期獲利將呈現典型的季度節奏，年中因季節性因素較強。指引包含中個位數的變動成本通縮（deflation）順風，且主要集中在上半年。

Full year free cash flow is expected to be between $400 million and $450 million in 2024. The midpoint of our range assumes increased capital expenditures and less of an improvement from working capital after a significant onetime benefit of reductions we saw in 2023.

2024 年全年自由現金流預期介於 4.00 億至 4.50 億美元。我們區間中值假設資本支出增加，且在 2023 年因一次性減少而帶來顯著效益後，營運資金改善幅度將較小。

I believe that we are well positioned to deliver on these commitments as we continue to drive Axalta to new record levels of sales and earnings. I'd like to invite everyone to an event on May 15, where we intend to introduce our 3-year strategy. For more details and registration information, please refer to our IR website and the save-the-date included in our Q4 presentation materials.

我相信，隨著我們持續推動 Axalta 的銷售與獲利再創新高，我們已具備良好條件來兌現這些承諾。我想邀請各位參加 5 月 15 日的活動，屆時我們將介紹我們的 3 年策略。更多細節與報名資訊，請參考我們的投資人關係（IR）網站，以及我們在第四季簡報資料中所附的預留日期（save-the-date）。

Thank you for joining us today. This concludes our prepared remarks. Operator, please open the lines for Q&A.

感謝各位今天加入。本次預先準備的發言到此結束。接線員，請開放電話線進行問答。

(Operator Instructions) Our first question is from David Begleiter with Deutsche Bank.

（接線員指示）我們的第一個問題來自德意志銀行（Deutsche Bank）的 David Begleiter。

Chris, can you discuss in Refinish your expectations for pricing in 2024?

Chris，你能談談在修補漆（Refinish）方面，你對 2024 年定價的預期嗎？

Yes. David, we're still planning to had, let's call it, mid-single digits -- low to mid-single digits pricing as we think about how we performed last year and where we see '24.

可以。David，我們仍然規劃，姑且稱之為中個位數——低到中個位數的漲價幅度，這是基於我們去年表現以及我們對 2024 年的看法。

Very good. And can you discuss just also anywhere in the portfolio you're seeing pricing pressure that might impact 2024?

很好。另外，你能談談在產品組合中是否有任何地方出現定價壓力，可能影響 2024 年嗎？

That's a great question. So far, as I see the portfolio, I think we're seeing that the industry is being quite disciplined. I think we're all facing the same pressures, whether it's labor and also uncertainties going forward. And I think a lot of the recovery we have seen in pricing and making sure that we're all pricing for value, we can see that benefit.

這是個很好的問題。就目前我看到的產品組合而言，我認為整個產業相當自律。我想我們都面臨相同的壓力，不論是人力成本，或是未來的不確定性。而且我們在定價上的回復、以及確保我們都以價值定價（pricing for value），我們可以看到其帶來的效益。

That said, I would say on the Industrial side, we are seeing some pressure in Europe. But as I think about our portfolio, we're going to stay focused on driving for the value we provide for our customers.

不過我會說，在工業（Industrial）端，我們在歐洲確實看到一些壓力。但就我們的產品組合而言，我們會持續專注於推動並體現我們為客戶提供的價值。

Our next question is from John McNulty with BMO Capital Markets.

下一個問題來自 BMO Capital Markets 的 John McNulty。

Seems like in addition to the price raws mix, you've made some decent headway early on in kind of efficiency improvements and that type of thing. I guess, can you call out some of the bigger items there and how we should be thinking about how that may continue as we look through 2024?

看起來除了價格與原物料組合（price raws mix）之外，你們在效率改善等方面也在早期取得了不錯的進展。我想問，你能點出其中一些較大的項目嗎？以及我們在展望 2024 年時，應該如何看待這些改善是否會持續？

That's a great question, John. I think coming onboard a year ago, we talked about some of the purchasing initiatives that we had in place. And that certainly paid dividend, especially if you look at Q4 and our performance of 12% on material performance.

這是個很好的問題，John。我認為我在一年前加入時，我們談到了一些已在推動的採購計畫。這些確實帶來了成果，特別是如果你看第四季，我們在材料表現上達到 12% 的表現。

And if you take a look at, let's call it, half of it being what the industry is calling as deflation, we certainly did better than that. And especially when I compare with our peers that I would call being 3 to 4x our size, it's great to see the performance coming through and was really worth the purchasing teams sitting down with our suppliers and driving some of that -- those actions to really price ourselves back to where we saw.

如果你把其中一半視為產業所稱的通縮（deflation），我們的表現確實優於此。尤其當我與我認為規模約為我們 3 到 4 倍的同業相比，看到這樣的成果非常好；這也證明採購團隊與供應商坐下來推動一些——那些行動，讓我們的採購價格回到我們所預期的水準，是非常值得的。

As you know, we took about $650 million of incremental cost through the last 2 years, and it was really resetting a bit of that and driving that cost benefit through. Now this started, I would call it, midyear. And so we -- as we talked about in previous calls, it was really about burning through that inventory, and we saw that benefit certainly hit us in Q4.

如你所知，過去兩年我們承受了約 6.50 億美元的增量成本，而這主要是在把其中一部分重新調整回來，並把成本效益推動出來。我會說這大約從年中開始。因此我們——如同先前電話會議所談，重點在於消化那批庫存，而我們確實看到這項效益在第四季明顯反映出來。

As I think about '24, it's really how are we structuring agreements, so that we could be more resilient as we see, let's call it, fluctuations in the market. And that's certainly how we're playing it. But I would call it, as we -- as you can see in our guide, what we're seeing is we're driving, I would call, mid-single digits -- low to mid-single-digits expectations for deflation going through '24.

展望 2024 年，重點在於我們如何設計合約，使我們在面對市場波動時能更具韌性。我們確實是以這樣的方式在運作。但我會說，正如你在我們的指引中所看到的，我們預期 2024 年將出現中個位數——低到中個位數的通縮。

Got it. Fair enough. And then just maybe like a small one. On the Industrial side, it sounds like you walked away from some business. I guess, how should we think about what that sales impact would be as we look at 2024? Is that something of note where it's a few percent? Or is it kind of a rounding error? How should we think about it?

了解，合理。再問一個小問題：在工業（Industrial）端，聽起來你們放棄了一些業務。我想問，從 2024 年的角度，我們應該如何看待對銷售的影響？這會是幾個百分點、值得注意的影響嗎？還是只是四捨五入的誤差？應該怎麼看？

I would call it low to -- flat to low mid-single digits. You would -- as you can look at our guide and in terms of volume, we're essentially calling it overall the business growing by flat to mid-single digits up, mostly mid-single digits up.

我會說是低到——持平到低中個位數。你可以看我們的指引，就銷量而言，我們基本上預期整體業務成長介於持平到中個位數上升，且多數情況是中個位數上升。

And the difference there is we believe we'll continue to grow on Refinish. We'll certainly grow on auto. Even though the market is flat, we believe that on the auto side, we will gain in China as we continue to win there. But in Industrial, we expect that to be low single digits down as well as the CV impact at the back end of the year.

差異在於，我們相信修補漆（Refinish）將持續成長；汽車（auto）也會成長。即使市場持平，我們仍相信在汽車端，隨著我們持續在中國贏得訂單，我們將在中國取得增量。但在工業（Industrial）方面，我們預期將下滑低個位數，另外還有商用車（CV）在年底的影響。

Our next question is from Kevin McCarthy with Vertical Research Partners.

下一個問題來自 Vertical Research Partners 的 Kevin McCarthy。

Yes. Chris, can you speak to the amount of variable cost deflation in the fourth quarter and what your outlook would be for raw materials and variable costs in 2024?

是的。Chris，你能談談第四季變動成本通縮的幅度，以及你對 2024 年原物料與變動成本的展望嗎？

So I'm going to start and then probably hand it over to Carl. I mean, we certainly saw, I would call it, a low single-digit -- a double-digit performance in variable cost performance, 12%, as I said in the prepared remarks.

我先回答，然後可能交給 Carl。我們確實看到，我會稱之為低個位數——雙位數的變動成本表現，達到 12%，正如我在預先準備的發言中所說。

But I'll turn it over to Carl as to how -- what we see going forward.

不過接下來我把問題交給 Carl，請他說明——我們對未來的看法。

Yes. Kevin, yes, as we look for 2024, we're expecting probably about mid-single digits deflation in most of our commodity spend. And I think that will be front weighted, so I think we'll probably do a little bit better in the front half of the year. And the comps will get tougher as we think about Q3 and Q4 going forward. But for the full year, we are expecting about a mid-single-digit deflationary benefits from our spend.

是的。Kevin，是的，展望 2024 年，我們預期在大多數大宗商品採購支出上，可能會出現約中個位數的通縮。我認為這會前置發生，所以我想我們在上半年可能會表現得更好一些。隨著我們往後看 Q3 和 Q4，可比基期會變得更具挑戰。但就全年而言，我們預期我們的支出將帶來約中個位數的通縮效益。

Very good. And then as a second question, Carl, you noted in your prepared remarks the progress that you've made on the balance sheet. What are your latest thoughts on capital allocation in terms of kind of reinvigorating some repurchase activity, what you're seeing in the private market, but also potential to establish a common dividend at some point?

很好。那第二個問題，Carl，你在事先準備的發言中提到你們在資產負債表方面取得的進展。你對資本配置的最新想法是什麼？例如重新啟動一些回購活動、你在私募市場看到的情況，以及未來某個時間點建立普通股股利的可能性？

Well, I think -- well, first, obviously, we're very pleased with having leverage sub-3 at 2.9x. I think if you just do -- look at the guidance we provided, we'll be right in line at the top end of our target range by the end of this year. So it does provide us a little bit more flexibility and optionality in how we deploy capital.

嗯，我想——嗯，首先，顯然我們對槓桿率降到 3 倍以下、達到 2.9 倍感到非常滿意。我想如果你只是——看看我們提供的指引，到今年年底我們將會正好落在目標區間的上緣。因此，這確實讓我們在資本部署方式上有更多彈性與選擇性。

So we will -- I think share repurchases will definitely be part of the overall strategy and as well as M&A. As Chris pointed out, we had the acquisition we did in the fourth quarter in Switzerland. And I think where we can see those types of very accretive deals, especially more in refinish, we would look to deploy capital there as well. But we're overall just pleased because I think the balance sheet now will provide us a lot of flexibility going forward.

所以我們會——我認為股票回購肯定會是整體策略的一部分，併購也會。如 Chris 所指出，我們在第四季於瑞士完成了一項收購。我認為在我們能看到這類高度增益（accretive）的交易時，特別是在修補漆（refinish）領域，我們也會考慮把資本部署到那裡。但整體而言我們很高興，因為我認為現在的資產負債表將在未來提供我們很大的彈性。

Our next question is from Steve Byrne with Bank of America.

下一個問題來自美國銀行（Bank of America）的 Steve Byrne。

Is the 9% EBIT margin in Mobility where you're presenting it as more of a 13% EBITDA margin, seems like it's back to where it was historically, is this the new normal? Is this -- does this have some meaningful upside, in your view, from something other than just projecting auto build rates and commercial vehicle build?

Mobility 部門 9% 的 EBIT 利潤率，你們呈現為約 13% 的 EBITDA 利潤率，看起來已回到歷史水準，這是新的常態嗎？在你看來，除了僅僅假設汽車與商用車的產量之外，這裡是否還有顯著的上行空間？

If there's anything that you're doing in mobility that could drive a real change, whether it's technology or some kind of a structural change that you're doing internally, anything that you would highlight is giving you more optimism than just a 9% EBIT margin.

在 Mobility 方面，你們是否有在做任何能帶來實質改變的事情——不論是技術、或某種內部結構性調整——有沒有什麼你會特別強調、讓你比僅僅 9% 的 EBIT 利潤率更樂觀的因素？

It's a great question, Steve. It's certainly -- I wouldn't call it the new normal. Just looking back at Axalta over the last 4, 5 years, I would say we have grown by $1 billion of revenue, just under $1 billion of revenue. But the challenge has been to convert on it back to historical margins.

這是個很好的問題，Steve。確實——我不會稱它為新的常態。回顧 Axalta 過去 4、5 年，我會說我們的營收成長了 10 億美元，接近 10 億美元。但挑戰在於，如何把這些成長轉化回歷史水準的利潤率。

So if I look at that business, I do believe there's more upside in what we can do both structurally, both in growth in other regions as well as, as you put the investment, we've talked about a $35 million increase in capital investment, what we can do to drive productivity initiatives in this business. And so this is part of what we plan to discuss or show you in our May strat meeting is what more we can do with this business.

所以如果我看這個業務，我確實相信我們還有更多上行空間，無論是在結構性改善上、在其他地區的成長上，以及如你所提到的投資——我們談過資本投資增加 3,500 萬美元——我們能做些什麼來推動這個業務的生產力提升計畫。因此，這也是我們計畫在 5 月策略會議上與你們討論或展示的內容：我們還能如何進一步提升這個業務。

And then one question for you on the industrial exposure in construction. Do you have visibility into distributor inventory levels of products that your coatings were a part of? Do you have a view as to whether those inventory levels in the channel are normal now? Or is there a share loss or gain? Anything that you can comment on that.

另外一個問題是關於建築領域的工業曝險。你們是否能掌握經銷商端、包含你們塗料在內的產品庫存水位？你們是否認為通路端的庫存水位現在已回到正常？或者有市占流失或增加？有任何可以評論的嗎？

Consistently, with the exception of the businesses we have decided to exit, I would say we are -- our share has been pretty much in line with what we had previously. That said, inventories that are at our customers or at distributors are low from where we have seen historically. There's only -- as I look at it, if this market picks up, especially in North America, there is only upside here.

一貫而言，除了我們已決定退出的業務之外，我會說我們的市占大致上與先前持平。話雖如此，我們在客戶端或經銷商端看到的庫存，相較於歷史水準偏低。就我看來，如果這個市場回升，特別是在北美，這裡只有上行空間。

And the good news here is that, especially when we think about our wood coatings business, you can see all our major customers investing heavily on capacity. I mean, if I look over the last 6 months to 9 months, we have seen announcements of about $1 billion being put into investments to build plants.

而這裡的好消息是，特別是當我們想到木器塗料業務時，你可以看到我們所有主要客戶都在大幅投資產能。我的意思是，如果我看過去 6 到 9 個月，我們看到大約 10 億美元的投資公告，用於興建工廠。

So as this market recovers, there's just all I see here, especially on our wood siding business. You just believe there's got to be upside with all the investment that is being put in place. And that's certainly what we're doing as well is to prepare for this upturn at some point.

因此，隨著市場復甦，我在這裡看到的——特別是在我們的木質外牆板（wood siding）業務——就是你會相信，在這些已到位的投資之下，必然會有上行空間。而我們正在做的也是為了在某個時間點的上行循環做好準備。

Our next question is from Ghansham Panjabi with Baird.

下一個問題來自 Baird 的 Ghansham Panjabi。

Chris, can you just give us a sense to the market conditions for auto refinish across your major regions? I know you commented about expecting a little bit of volume growth in 2024. What was that being driven by? Is it just better uptake, easier comparisons, technology? What's going on across your major markets there?

Chris，你能否就你們主要區域的汽車修補漆（auto refinish）市場狀況給我們一些概況？我知道你提到 2024 年預期會有一些銷量成長。那是由什麼驅動的？只是滲透率提升、可比基期較容易、技術因素？你們主要市場到底發生了什麼？

Well, I would say it's flat to up about 2% to 3% is what we're predicting going forward into '24, and I'll just walk you through the markets, to your question.

嗯，我會說我們對 2024 年的預測是持平到成長約 2% 到 3%。我會依你問題帶你快速走過各個市場。

North America is incredibly strong but limited in the sense of, just as you've always heard, the ability for body shops to get labor. So there's inventory sitting at the body shops for work to be done. It's just getting the labor to be able to drive that. And that's a great case for Axalta because our story has consistently been the efficiency that we provide to our body shops.

北美非常強勁，但在某種程度上也受限，原因如你一直聽到的：鈑噴廠（body shops）招不到人。因此有一些待修的車輛/工作量堆在鈑噴廠那裡。關鍵只是要有勞動力來推動處理。這對 Axalta 來說是很好的情境，因為我們一直以來的主張就是我們能為鈑噴廠提供效率。

If I think about Europe, Europe is what I would call stable to flat. Here, where as you -- if you look at our guide and what we are showing as a slight increase, it's really the new wins, whether it's the wins with BMW that we announced last quarter or with the Andre Koch acquisition. There's opportunity here to grow.

如果我想到歐洲，歐洲我會稱之為穩定到持平。在這裡，正如你——如果你看我們的指引以及我們所呈現的些微成長，主要來自新的得標/新案子，不論是我們上季宣布與 BMW 的合作勝出，或是 Andre Koch 的收購。這裡有成長機會。

And China or Asia has been weak or flat to down is what we have seen. So -- but the only part of that is China is also a small part of our business. But overall, I would call it flat to slightly up, Ghansham.

而中國或亞洲則偏弱，或我們看到的是持平到下滑。所以——但其中一點是，中國在我們業務中也只占較小部分。整體而言，我會稱之為持平到小幅成長，Ghansham。

Okay. Great. And then in terms of the consumer uptake for EVs, I mean, the narrative seems to have shifted in the market just based on the trade price, et cetera, after all the outsized growth over the last few years. Can you just touch base on what you're seeing in terms of developments, et cetera, on EVs and if that dynamic shift will impact you in any meaningful way?

好的，很好。那就消費者對電動車（EV）的接受度而言，我的意思是，市場敘事似乎已經轉變，主要是基於交易價格等等，在過去幾年超高速成長之後。你能否談談你們在 EV 方面看到的發展等情況，以及這種動態轉變是否會以任何有意義的方式影響你們？

Yes, absolutely. I think, first of all, there's -- the overall element for Axalta is we're EV-agnostic. I mean, I think most of our coatings are on the outside of cars, so we don't really care if it's EV or ICE. In that sense, it's overall been not so much of an issue.

是的，當然。我想首先，對 Axalta 而言，整體上我們對 EV 是中立的（EV-agnostic）。我的意思是，我們大多數的塗料都在車身外部，所以我們其實不太在意是 EV 還是燃油車（ICE）。在這個意義上，整體而言並不是什麼大問題。

The good news, though, for us is if we look at our growth, especially if you look at last quarter, overall, Axalta growing by mid-single digits, but Mobility growing by 9%. A lot of that is our growth also in China. And in China, we're growing at 2 to 3x the rate of the overall market, and it's primarily because of our growth in EV.

不過，對我們來說的好消息是，如果我們看成長，特別是看上一季，整體 Axalta 以中個位數成長，但 Mobility 成長了 9%。其中很大一部分也來自我們在中國的成長。而在中國，我們的成長速度是整體市場的 2 到 3 倍，主要是因為我們在 EV 的成長。

We are with a lot of local players that are in the EV space that are growing. And the great news there is, as you know, with China investing $70 billion of incentives through -- over the next 4 years, that's driving the local market. but it's also creating a great platform to use that to move into, let's call it, Southeast Asia. So we see that as a growth platform.

我們與許多在 EV 領域成長的本土業者合作。那裡的好消息是，如你所知，中國在未來 4 年將投入 700 億美元的激勵措施，這正在帶動本地市場。但同時也創造了一個很好的平台，讓我們可以利用這個基礎進一步拓展到——我們姑且稱之為——東南亞。因此我們把它視為一個成長平台。

And the other element that's helping us there is the fact that we've -- over the last few years, we put investment in there for manufacturing, whether it's waterborne capability at Jiading or our new plant that we just launched last quarter with Jilin, with just the capacity and the ramp-up is just in line. So it's really driving the growth that we saw in Q4.

而另一個正在幫助我們的因素是，過去幾年我們已在製造端投入資本，不論是嘉定的水性塗料產能，或是我們與吉林合作、在上一季剛投產的新工廠，其產能與爬坡進度都符合預期。因此，這確實推動了我們在第四季看到的成長。

Our next question is from Michael Sison with Wells Fargo.

下一個問題來自富國銀行（Wells Fargo）的 Michael Sison。

Nice outlook for the year for '24. Just on the pricing, you'd mentioned that it would be positive for both segments. And a little bit of color, fourth quarter was down for Mobility. You talked about a lot of one-offs there. So do you think it turns the corner in the first quarter for pricing? And then -- well, actually, do you need to announce price increases? Or are those already...

對 2024 年的展望不錯。關於定價，你提到兩個事業部門都會是正向。再請你補充一些細節：第四季 Mobility 的價格是下滑的，你提到那裡有很多一次性因素。那你認為第一季定價會轉正嗎？另外——嗯，實際上，你們需要宣布漲價嗎？還是那些已經……

Yes. Thanks, Michael. Yes, I think as we look at Mobility in the fourth quarter, I think as we referenced in the prepared remarks, a little bit more than half of that really related to a comparison we had from the fourth quarter of 2022, with the rest of that being mix as an impact.

是的。謝謝你，Michael。是的，我認為我們看 Mobility 的第四季表現時，正如我們在事先準備的講稿中提到的，其中略多於一半其實是與 2022 年第四季的比較因素有關，其餘則是產品組合（mix）帶來的影響。

So as we fast forward for the first quarter and for the full year, we do see pricing being positive in both of our segments. And specifically, as we think about our Refinish business, the team is already a couple of weeks ago actually launched and executed new pricing. So we're already beginning to see the benefits of that.

因此，往第一季以及全年來看，我們確實看到兩個事業部門的定價都會是正向。特別是就我們的 Refinish（修補漆）業務而言，團隊其實在幾週前就已推出並執行新的定價，所以我們已開始看到其帶來的效益。

Just a follow-up. In the first quarter, flat sales growth. Sales growth sort of throughout the year, is it in second quarter better, third quarter, fourth quarter better? Just trying to get a feel of how we ramp up the low single digits.

再追問一下。第一季銷售成長持平。那全年各季的銷售成長走勢會是第二季較好、第三季、第四季更好嗎？我只是想了解一下低個位數成長是如何逐步拉升的。

Yes. Our expectations, as you start getting into the second quarter, you should definitely see an increase kind of in that low single-digit kind of percentage increases, which would really kind of roughly carry in the next several quarters thereafter. So it's really just the first quarter where, at least the initial guide, is we're holding it flat. But you should start seeing that step up in the second quarter.

是的。我們的預期是，進入第二季後，你應該會明顯看到低個位數百分比的成長提升，而這大致會延續到接下來的幾個季度。因此，主要就是第一季——至少在我們初步指引中——我們維持持平；但你應該會在第二季開始看到那個向上的台階。

Our next question is from Aleksey Yefremov with KeyBanc Capital Markets.

下一個問題來自 KeyBanc Capital Markets 的 Aleksey Yefremov。

Could you give us some thoughts on your bridge for Q1 from Q4? More often than not, EBITDA is about flat sequentially from Q1 to Q4 -- from Q4 to Q1, and you're guiding to flat sales. So what are some of the other factors here?

你能否談談你們從第四季到第一季（Q4 到 Q1）的橋接（bridge）？通常 EBITDA 從第一季到第四季——呃，從第四季到第一季——多半是季比大致持平，而你們指引是銷售持平。所以這裡還有哪些其他因素？

Yes. As we look at the bridge, we're going to be down about $11 million of EBITDA Q4 to Q1. We referenced what we saw as it relates to just revenue being down slightly. Obviously, you have the conversion impact as it relates to that. And it's also really -- it's just the seasonality that we have within our business, specifically in Refinish. So that tends -- the first quarter for us tends to be the low point for Refinish, just based off of especially what we see here in North America and a little bit more in Europe.

是的。就橋接來看，我們的 EBITDA 從第四季到第一季大約會下降 1,100 萬美元。我們提到過，收入會略微下滑，當然也會有相應的轉換（conversion）影響。此外，主要原因其實是我們業務的季節性，特別是在 Refinish（修補漆）。對我們而言，第一季通常是 Refinish 的低點，主要是基於我們在北美看到的情況，以及歐洲也稍微更明顯一些。

So those are -- it's more a mix story as well that impacts us on a sequential basis. And then we also have in China, with the Chinese New Year, that also has an implication too for the first quarter, specifically for our Light Vehicle business there.

所以這些——同時也更多是一個組合（mix）的故事，會在季比上影響我們。另外，在中國，農曆新年也會對第一季造成影響，特別是我們在當地的 Light Vehicle（乘用車）業務。

And turning to Industrial. You're talking about softer North American construction volumes. Could you maybe discuss residential, nonresidential exposure? Any potential benefit from infrastructure spending? And any other factors?

再談到 Industrial（工業）方面。你們提到北美建築量較疲弱。你能否談談住宅與非住宅的曝險？基礎建設支出是否可能帶來一些好處？以及其他因素？

So yes, absolutely. So I would call it a split between residential and nonresidential, whether you look at our wood business or our building products business or our GI business. In terms of -- as we forecast forward, again, we're showing residential being muted or down with where interest rates and where we see building comps coming out.

好的，當然可以。我會說住宅與非住宅大致各半，不論你看我們的木器（wood）業務、建材（building products）業務或 GI 業務。就我們往前的預測而言，我們仍預期住宅端會偏弱或下滑，這與利率水準以及我們看到的建築比較基期（comps）變化有關。

But that said, on the Industrial side, on the GI side, the question is how infrastructure spend, especially this year with elections, would play out in the back end. So at this point, we're forecasting this to be flat to down slightly, and it's primarily just to continue to drive the focus on building the foundation on the business and making sure that we have the right cost structure for when we pick up again.

但即便如此，在工業端、在 GI 端，問題在於基礎建設支出會如何發酵，尤其今年有選舉，可能會在下半年有所表現。就目前而言，我們的預測是持平到小幅下滑，主要是為了持續聚焦於打好業務基礎，並確保在需求回升時我們具備正確的成本結構。

Our next question is from Mike Leithead with Barclays.

下一個問題來自 Barclays 的 Mike Leithead。

First question for Chris. I think you made a comment in the prepared remarks around potentially pruning some areas that don't meet your margin threshold. I guess, can you talk a little bit more. You've been there for about a year now, your observations where your portfolio currently stands. And is it just pruning? Or is there any bigger portfolio actions worth exploring?

第一個問題給 Chris。我想你在事先準備的講稿中提到，可能會修剪一些未達到你們毛利率門檻的領域。我想請你多談一點。你到任大約一年了，你對目前投資組合的觀察是什麼？這只是修剪而已嗎？還是有任何更大的投資組合動作值得探索？

No. It's just -- I think the starting point is just pruning, and a perfect example of that is if you look -- think about our Light Vehicle business, last year, we announced getting out of our plastics interiors business, a small portion of that where obviously we didn't have scale.

不，主要就是——我認為起點就是修剪。一個很好的例子是，如果你看——想想我們的 Light Vehicle（乘用車）業務，去年我們宣布退出塑膠內裝業務，其中一小部分我們顯然沒有規模優勢。

That said, as I look forward into '24, there are segments of the business within -- let's call it, across all 3 portfolios, whether it's our Industrial, a bit of our Mobility and then even in some sense in some of our regions in Refinish that we might be looking at.

話雖如此，當我展望 2024 年，在業務內部仍有一些區塊——我們就說橫跨三大產品組合，不論是 Industrial（工業）、部分 Mobility（交通運輸），甚至在某種程度上 Refinish（修補漆）的一些區域——我們可能都會評估。

Again, the focus for me is as I think about it, we grew by $1 billion of revenue, if you think through the last 4 or 5 years. The first thing is just returning the base case to historical margins. That alone has about $100 million to $150 million of incremental opportunity.

再次強調，對我而言的重點是：如果回顧過去 4 到 5 年，我們的營收成長了 10 億美元。第一件事就是把基本盤（base case）拉回到歷史毛利率水準。光是這一點，就有大約 1 億到 1.5 億美元的增量機會。

As you can see in what we have given as the guide for '24, heading north of this $1 billion, we are on path to get back there, but we are not there yet. So for me, I think the first set is looking at all 4 end markets and seeing what more we can do to drive this back. And then we'll start thinking about if there is any portfolio mix beyond that.

如你在我們提供的 2024 年指引中所見，朝著超過 10 億美元這個水準前進，我們正走在回到那裡的路上，但目前還沒完全達成。所以對我而言，第一步是檢視四個終端市場，看看我們還能做些什麼把它拉回來；之後我們才會開始思考，是否需要在此之外進一步調整投資組合組合（portfolio mix）。

Great. That's super helpful. And then as a follow-up, I apologize, a bit of a technical question for Carl. I think earlier this year, Axalta took a fairly large charge from the Argentine peso that was included in your adjusted EBIT.

很好，這非常有幫助。接著追問一下，抱歉，這是給 Carl 的一個比較技術性的問題。我想今年稍早，Axalta 因阿根廷披索而提列了一筆相當大的費用，且被納入你們的調整後 EBIT。

I think you briefly mentioned an FX charge in the remarks, but I don't see it mentioned anywhere in the release. So did Axalta take a charge from Argentine peso deval this quarter? And was it included or excluded from your adjusted earnings results?

我想你在講稿中簡短提到外匯費用，但我在新聞稿裡沒有看到任何提及。所以 Axalta 這一季是否因阿根廷披索貶值而提列費用？而這筆費用是被納入還是排除在你們的調整後獲利結果之外？

Yes. So we did it for the fourth quarter for -- specifically for Argentina. So it's not included in EBITDA, but it is included in our EBIT -- adjusted EBIT number, so -- which is in the reconciliation.

是的。我們在第四季針對——特別是阿根廷——做了這件事。所以它沒有納入 EBITDA，但有納入我們的 EBIT——調整後 EBIT 數字中——也就是在調節表（reconciliation）裡。

Our next question is from Jeff Zekauskas with JPMorgan.

下一個問題來自 JPMorgan 的 Jeff Zekauskas。

I think your SG&A was up by about 11% on an adjusted basis, maybe it's 8% unadjusted. And your R&D was up a little bit more than 11%. Those are relatively high numbers for 2024. Do you have expectations about your growth in overhead costs?

我想你們的 SG&A 在調整後口徑大約成長 11%，未調整口徑可能是 8%。而你們的 R&D 成長略高於 11%。對 2024 年來說，這些都是相對偏高的數字。你們對管理費用（overhead costs）的成長有什麼預期？

Yes. Jeff, if you look at SG&A, about half of that impact for at least for '24, whether you look at even the fourth quarter or the full year for SG&A, really related to variable compensation expense, with the remaining half of that being just kind of, I would call it, just more inflationary labor type of cost. And so as we look forward into 2024, that is an area of focus for us, where we would be looking to drive that rate of increase down considerably on a year-over-year basis.

是的，Jeff，如果你看 SG&A，至少就 2024 年而言，不論你看第四季或全年 SG&A，其中大約一半的影響其實與變動薪酬費用（variable compensation expense）有關，剩下的一半則是我會稱之為較偏通膨性的勞動成本。因而展望 2024 年，這會是我們的重點關注領域之一，我們會努力在年對年基礎上大幅降低其增幅。

Great. Can you remind us what percentage of your Light Vehicle business roughly is China now and maybe where it was 2 or 3 years ago?

很好。您能提醒我們，目前您的輕型車業務中，中國大約占比多少？以及兩到三年前大概是多少？

Yes. It's about -- maybe I'll quote in revenue basis. It's about $250 million of revenue for China.

可以。大約——我可能用營收口徑來說。中國約有2.5億美元的營收。

Our next question is from Mike Harrison with Seaport Research Partners.

下一個問題來自 Seaport Research Partners 的 Mike Harrison。

We saw the nice improvement that you guys delivered in inventory levels during 2023. Are those inventories where you want them to be at this point in the year? And I guess, is there any way for you to quantify the impact?

我們看到你們在2023年庫存水準方面有很不錯的改善。目前這個時間點，庫存已經達到你們希望的水準了嗎？另外，你們是否能量化其影響？

Presumably, if you're working down inventory, you were running your plants more slowly. Can you quantify the impact of lower fixed cost absorption last year? And presumably, you'll make some of that up this year if you're running your plants a little bit harder.

推測如果你們在去化庫存，工廠運轉速度應該會比較慢。你們能量化去年因固定成本吸收較低所造成的影響嗎？而且推測如果今年工廠運轉更滿一些，你們應該能把其中一部分補回來。

Sure, I'll take that. So in terms of -- as I think about quantifying the improvement, we certainly saw a significant onetime improvement. If you take our improvement in free cash flow, I would call it, just less than half of that was driven by that performance.

當然，我來回答。就量化改善而言，我們確實看到一次性的顯著改善。如果看我們自由現金流的改善，我會說其中略低於一半是由這項表現所帶動。

Looking forward into 2024, we're not obviously signaling that we would get too much better than that, though, as there are pockets of the business that we can improve.

展望2024年，我們顯然不會釋出訊號說能比這個再好很多，不過業務中仍有一些區塊可以改善。

Maybe I'll break it down by business. If you look at the 4 end markets, my perspective is, especially with where we are forecasting volumes to be possibly lower especially on our Industrial business, that is certainly something that we are looking at further opportunities. In inventory reduction as well, that's probably an area where we're also looking at fixed cost absorption.

我也許按業務拆開來說。如果看四個終端市場，我的看法是，特別是我們預測的量可能會下降，尤其在工業業務上，這確實是我們正在進一步尋找機會的地方。在降低庫存方面也是如此，那可能也是我們同時在關注固定成本吸收的領域。

So that's something that the team -- the Industrial team is very focused on as we look forward on what extra opportunity there is in terms of utilization of the facilities we have, with the understanding that this volume will obviously pick -- be needed at some point. So that's certainly something that we're focused on.

因此，團隊——工業團隊——在這方面非常專注。我們在展望未來時，會看在我們現有設施的利用率上還有什麼額外機會，同時也理解這些量在某個時間點顯然會回升——到時會需要。這確實是我們關注的重點。

Across the rest of the platform, I think we're at a good point in terms of efficiency. There is probably something more that we can do in terms of utilization, but that will be probably something that we would work through the year because we are showing 2 of the businesses going up slightly in volume.

在平台其餘部分，我認為就效率而言我們處於不錯的位置。利用率方面可能還能再做一些，但那大概會是我們在今年逐步推進的事情，因為我們預期其中兩項業務的量會小幅上升。

Yes. Michael, and maybe just to add to that as well. As I just look at the top of the house from our conversion on the incremental revenue, so in 2023, we had about $300 million of higher revenue, and our EBITDA was up $140 million. So it's about a 47% conversion on the incremental revenue.

是的，Michael，我也補充一下。從整體來看我們對增量營收的轉換率：2023年我們營收增加約3億美元，而EBITDA增加1.4億美元，所以增量營收的轉換率約47%。

And as you look to 2024, we're expecting to have conversion on incremental revenue about 60% to 65%, if you just look at what we put out for a guide perspective. So I do think, as what Chris alluded to, we kind of like where we are. But there's always more productivity, and there's more efficiencies we can get. And I think you're seeing a pretty healthy conversion as we enter into this year.

展望2024年，如果只看我們提供的指引，我們預期增量營收的轉換率約60%到65%。所以我確實認為，如Chris所提到的，我們對目前的位置感到滿意。但生產力永遠還有提升空間，也還能取得更多效率。我想你也看到，我們在進入今年時有相當健康的轉換率。

All right. And then just curious in the Refinish business. I don't see that there's an acquisition contribution line in there. Can you comment on how much of the volume that you saw in the quarter or revenue in the quarter was from that Andre Koch acquisition?

好的。接著我想問一下修補漆（Refinish）業務。我沒有看到其中有併購貢獻的項目。你能評論一下，本季你們看到的量或本季營收中，有多少來自收購Andre Koch？

Yes. We had about $14 million of revenue in the fourth quarter that related to the recent acquisition of Andre Koch.

可以。第四季約有1,400萬美元的營收與近期收購Andre Koch相關。

Our next question is from Arun Viswanathan with RBC Capital Markets.

下一個問題來自 RBC Capital Markets 的 Arun Viswanathan。

Congrats on the '23 progress. I guess, I just wanted to get your perspective on where you are in your evolution. So I think you've mentioned long-term margin targets several times on this call, but that you're not necessarily there.

恭喜你們在2023年的進展。我想了解你們對目前所處發展階段的看法。我認為你們在這通電話中多次提到長期的利潤率目標，但你們不一定已經達到。

So obviously, you had very good progress in '23, up 180 basis points on a consolidated basis to the 18.4%. And Refinish now -- or at least Performance Coatings, I know it's being dragged down a little bit by Industrial, but it appears that you're potentially closer to that normalized level within Refinish at least over 20%.

顯然你們在2023年有非常好的進展，合併口徑利潤率提升180個基點至18.4%。而修補漆現在——或者至少是高性能塗料（Performance Coatings），我知道工業業務有些拖累——但看起來你們在修補漆內部可能已更接近正常化水準，至少超過20%。

So how much more do you think there is on the margin front? Do you expect to kind of approach 20% on a consolidated basis over the next couple of years? And is that $100 million that you referenced kind of the main driver of that coming back to you?

那麼你認為在利潤率方面還有多少提升空間？你是否預期未來幾年合併口徑能逐步接近20%？另外，你提到的那1億美元是否是推動回升的主要動力？

That's a good question, Arun. If I give you the answer to that, you might not show up in May. So -- but I'll give it to you. I'll break it down a bit more.

Arun，這是個好問題。如果我把答案告訴你，你可能五月就不來了。所以——不過我會告訴你。我會再拆得更細一點。

I think if you -- to your point, the progress in '23, we jumped up 180 basis points. If you take where we're heading for '24, it's that, call it, 100 basis points. But I think there's been a lot of questions about Q1 to Q2, Q3 jump up. But if you look at how the guide would work through Q1 to Q2, Q3 and Q4, Q2 and Q3 have always been our stronger quarters as we have been somewhat cyclical. And you would argue, Q2 and Q3 would need to get to that 20% almost to be able to hit where we have guided. To your point, that essentially means we're coming back very close.

我想如果你——如你所說，2023年的進展我們提升了180個基點。若看我們對2024年的走向，大概是再提升100個基點。但我認為大家對Q1到Q2、Q3的跳升有很多問題。不過如果看指引在Q1到Q2、Q3與Q4的推演，Q2與Q3一直是我們較強的季度，因為我們帶有一定的循環性。你也可以說，Q2與Q3幾乎需要達到20%才能達成我們所給的指引。依你所說，這基本上意味著我們回到非常接近的水準。

I still believe there's more opportunity here. If we look at the earnings potential of this company, going back to just converting on the incremental sales, as Carl answered to that last question, I do believe that there's more opportunity here, and that's what you will see in May.

我仍然相信這裡還有更多機會。如果我們看這家公司的獲利潛力，回到對增量銷售的轉換率——如Carl在上一題所回答——我確實相信還有更多機會，而你們會在五月看到。

We want to lay out a 3-year target with what we are going to accomplish year-over-year, to see what more we can do to drive the earnings potential. And on top of that, even if we look at, let's call it, this low single digits or mid-single-digit growth, what more we can accomplish with that. And so across the growth and the earnings potential, I think there's a lot of value that we can drive to shareholders, and that's certainly what we'll lay out for you in May.

我們希望提出一個三年目標，說明我們每一年要達成什麼，看看我們還能做什麼來推動獲利潛力。此外，即便只看低個位數或中個位數的成長，我們還能在此基礎上達成什麼。因此，無論是成長或獲利潛力，我認為我們能為股東創造很多價值，而這也正是我們會在五月向你們說明的。

That's great. And then maybe I can just ask a similar question as a follow-up on free cash flow. So you're converting over 40% of your EBITDA into free cash flow. And given what you've said so far with your incremental margins going up, it looks like you're probably going to be headed higher on that conversion as well.

很好。接著我想用類似的問題追問自由現金流。你們把超過40%的EBITDA轉換為自由現金流。根據你們目前所說，隨著增量利潤率上升，看起來你們的轉換率也可能會往上走。

So over the next couple of years, with your leverage down under 3 now and free cash flow maybe approaching $500-plus million in the next couple of years, is that kind of normalized free cash flow? And if so, how do you expect to spend that once you reach that level?

那麼在未來幾年，隨著槓桿率降到3以下，而自由現金流在未來幾年可能接近5億美元以上，這是否可視為正常化的自由現金流？如果是，一旦達到那個水準，你們預期會如何運用這些現金？

Yes. I think we would view that as normalized cash flow, especially being over $500 million as we get into 2025 and beyond. I think we will be -- as I mentioned, leverage will be right where we want from a target perspective at the end of this year. And so we will have optionality in front of us.

是的。我認為我們會把那視為正常化的現金流，特別是當我們在2025年及之後達到超過5億美元時。我想我們——如我提到的——從目標角度來看，到今年年底槓桿率會落在我們希望的水準。因此，我們將擁有更多選擇。

And so I think we will be looking to deploy some of that capital as -- and looking at share repurchases as well as we will be evaluating -- continue to evaluate M&A-related opportunities that we believe will be accretive for the company.

因此，我們會考慮部署其中一部分資本——也會考慮股票回購，同時我們也會評估——持續評估我們認為能為公司帶來增益（accretive）的併購相關機會。

So those are kind of the 2 areas that we will be focused on. And I think we're definitely going to be looking to continue the momentum that we had in '23 into '24 and getting leverage where -- to the target range that we outlined.

所以這大概是我們會聚焦的兩個方向。我也認為，我們一定會希望把2023年的動能延續到2024年，並把槓桿率降到——降至我們所提出的目標區間。

Our next question is from Vincent Andrews with Morgan Stanley.

我們的下一個問題來自摩根士丹利（Morgan Stanley）的 Vincent Andrews。

This is Steve Haynes on for Vincent. Maybe I just wanted to come back to the guide for a sec. So I think, historically, your first quarter is maybe 22% or 23% of what you do annually. So if we were to kind of use that to annualize your first quarter guide, it suggests something a bit above the midpoint of where you've guided the full year.

我是代替 Vincent 的 Steve Haynes。也許我想再回到指引談一下。我認為，從歷史上看，你們第一季大概占全年表現的 22% 或 23%。所以如果我們用這個比例把你們第一季的指引年化，會顯示的水準略高於你們全年指引區間的中位數。

So is there something different in the phasing this year? Or are you being a bit conservative in the back half that's, I guess, maybe causing some of this or maybe there's just something else in the math that we're missing there?

所以今年在時點分布上有什麼不同嗎？或者你們在下半年是否比較保守，因而造成這種情況？又或者我們在計算上漏掉了什麼？

No, I mean, I think you're looking at it the right way. I mean, simplistically, if you take the $240 million EBITDA divided by 0.23, you get about $1.43 billion, which is kind of right in the guidance range that we provided, albeit a little bit at the higher end versus the midpoint. But no, I think the seasonality that we expect this quarter and for this full year is similar to what we've had in the past.

沒有，我是說，我覺得你的看法是對的。簡單來說，如果你把 2.40 億美元的 EBITDA 除以 0.23，你會得到大約 14.3 億美元，這基本上就在我們提供的指引區間內，只是相較於中位數略偏高一些。但沒有，我們預期本季以及全年季節性與過去相近。

Okay. And then also in the 2023 numbers, there's some elevated costs tied to ERP and other investment. What does the 2024 guide, I guess, assuming the bridge in terms of further costs related to either of those things?

好的。另外在 2023 年的數字裡，有一些與 ERP 以及其他投資相關的較高成本。那 2024 年的指引，在銜接上是否假設仍會有與這些事項相關的進一步成本？

Yes. So we had about $40 million of cost related to ERP as well as consulting cost for some of the productivity initiatives that we had this year. As we look into 2023 (sic) [2024], I would expect that to drop down by at least $30 million. So kind of that new run rate of costs in '24 would be, call it, in that $10 million -- maybe $5 million to $10 million type of range.

是的。我們今年大約有 4,000 萬美元的成本與 ERP 相關，另外還有一些顧問費用，與我們今年推動的部分生產力提升計畫有關。展望 2023（原文如此）[2024]，我預期這部分至少會下降 3,000 萬美元。所以 2024 年新的成本常態水準大概是 1,000 萬美元左右——大概 500 萬到 1,000 萬美元的區間。

Our next question is from Josh Spector with UBS.

我們的下一個問題來自瑞銀（UBS）的 Josh Spector。

If I go back earlier in the year, I mean, when you guys had the production issue that impacted Refinish, you talked about a couple of hundred million dollar backlog. Where is that now? Does that still exist? Does that really matter as we look into 2024?

如果我回到今年稍早，你們在發生影響 Refinish 的生產問題時，曾提到有幾億美元的積壓訂單。現在情況如何？那個積壓還存在嗎？在我們看 2024 年時，這還重要嗎？

Yes. Josh, I'll take this one. So you certainly won't hear us talking about S/4 going forward. I think in terms of where we finished the year, I would say all our North American plants are back to preimplementation run rates, and our facility in West Virginia has done a stellar job of bringing the backlog back to what we have normalized pre the implementation of S/4.

是的，Josh，這題我來回答。你們之後肯定不會再聽到我們談 S/4。我想就我們年末的狀況而言，我會說我們所有北美工廠都已回到導入前的運轉水準，而我們西維吉尼亞州的廠也做得非常出色，已把積壓訂單恢復到 S/4 導入前的正常化水準。

And as we think about -- going forward, as you think about Q1, we don't show -- there is no upside or we don't see any benefit from, let's call it, a backlog improvement. We are back to where we are.

而往前看，當你思考第一季時，我們不會呈現——也就是說，沒有任何上行空間，或我們看不到任何來自積壓改善的效益。我們已回到原本的水準。

We do believe there's more efficiency that we can get from our S/4 system, so that is something that the IT and the operational teams are working on, but certainly not something that should drive something meaningful through, let's call it, the front half of the year. The objective there is just to get the efficiency in the system working great before we roll that out into smaller chunks into -- over the next several years in the rest of the world.

我們確實相信可以從 S/4 系統取得更多效率，因此 IT 與營運團隊正在處理這件事，但這當然不會在上半年帶來什麼顯著的推動。那裡的目標只是先把系統效率做到位、運作得很好，之後在未來幾年再以較小的區塊逐步推展到世界其他地區。

And just a quick follow-up on the acquisition. So I mean, you cited earlier it's maybe 1% or so of performance. Did you report that in volumes? And I guess, is that how you plan to report M&A forward? I guess, why not separate it out to make the organic volume more clear? So...

另外針對收購案快速追問一下。你們先前提到它可能約占表現的 1% 左右。你們有把它計入銷量（volumes）嗎？以及，我想問你們未來打算如何呈現併購（M&A）？為什麼不把它拆分出來，讓有機銷量更清楚？所以……

Yes. I mean, it is reported in volumes as well. And given the size of that particular acquisition, it was relatively small. Obviously, depending on where we end up on the next one, we would have -- we would evaluate and most likely break that out for you.

是的，它也有計入銷量。由於那筆收購的規模相對較小。當然，取決於我們下一筆收購最後的規模，我們會——我們會評估，並且很可能會為你們把它拆分揭露。

Our next question is from John Roberts with Mizuho.

我們的下一個問題來自瑞穗（Mizuho）的 John Roberts。

Chris, I think the prior management switched from EBITDA to adjusted EBIT back in 2019 to get the organization focused on reinvestment and growth and to have some capital allocation in the earnings numbers. Why the switch back to EBITDA right now?

Chris，我記得前任管理層在 2019 年把指標從 EBITDA 改為調整後 EBIT，是為了讓組織聚焦再投資與成長，並在盈餘數字中反映一些資本配置。為什麼現在又切回 EBITDA？

Yes. I'll start, and this is Carl. I can turn it to Chris. As we look at just how we manage the business across our business units, it is on -- it's more on an EBITDA basis. I think one of the key items that we are really going to be driving the organization is return on invested capital performance. And we will be kind of using that.

是的，我先開始回答，我是 Carl，之後我可以交給 Chris。就我們如何在各事業單位管理業務而言，我們更偏向以 EBITDA 為基礎。我認為我們真正要推動組織的一個關鍵項目，是投入資本報酬率（ROIC）的表現，而我們會以此作為主要運用指標。

As we approve new capital investments in the business, we're going to be attacking that, if you would, on the front end of the process as opposed to -- especially given that all of the team now is in place, we have operations kind of running up and being run by each of the BU presidents.

當我們核准新的資本投資時，我們會在流程前端就去強力把關，而不是——尤其在目前整個團隊都已到位、營運也由各 BU 總裁負責並逐步上軌道的情況下。

So that's how we kind of run it. I would -- but I would tell you that we'll have a very keen interest and we will be highly focused on getting our return on invested capital to levels, candidly, the company has not achieved before.

所以我們大致是這樣運作的。不過我也要告訴你，我們會非常關注，並高度聚焦於把投入資本報酬率提升到坦白說公司過去從未達到的水準。

And maybe -- I think Carl has captured most of it, but maybe just stepping out and maybe just to level off. And overall, the perspective I have is some of those choices that were made in the past of growth for the sake of growth is something that we have to change. And really, that ROIC metric and driving it into EBITDA became more significant as I thought -- as we repivot the company. And I think that's where we really drove the decision to first drive the operational teams into the P&L and have the BU teams run it as one unit and be responsible for the choices that we make.

另外——我想 Carl 已經涵蓋大部分，但也許我再退一步、把話說平一些。整體而言，我的觀點是，過去某些「為了成長而成長」的選擇，是我們必須改變的。而我認為 ROIC 這個指標、以及把它導入到 EBITDA 的管理中，在我們重新調整公司方向時變得更重要。我想這就是我們做出決定的原因：先讓營運團隊深入損益表（P&L），並讓 BU 團隊以一個整體單位來經營，對我們所做的選擇負責。

And as we can see with our first acquisition under the Refinish team, we certainly are seeing that performance come through. And that's how we'd like to manage going forward.

而且從我們在 Refinish 團隊之下完成的第一筆收購來看，我們確實看到績效展現出來。這也是我們未來希望採用的管理方式。

And then were Powder Coatings volumes up in the quarter? Or were they down in line with the overall industrial coatings segment?

另外，粉末塗料（Powder Coatings）本季的銷量是成長嗎？還是跟整體工業塗料部門一樣下滑？

That was roughly in line with the overall segment itself.

大致上與整體部門的表現一致。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。您現在可以掛線。感謝您的參與。