Akzo Nobel N: AkzoNobel Reports Double-Digit First Quarter Revenue Growth; price in line with raw material inflation

Cetol products used in an eye-catching museum

Sustainable technology and responsible architecture come together in this visually stunning museum, which recently opened in Uruguay. Inspired by the shape of an arch and constructed of wood, the futuristic Atchugarry Museum of Contemporary Art (MACA) is surrounded by 40 acres of greenery. Our Cetol Woodcare brand has supplied over 1,000 liters of interior and exterior products, which help to protect the impressive structure. The eye-catching museum is considered a great example of how wood can be used for architectural purposes and not just for decorative applications.

Sustainability ratings reflect people. Planet. Painting. commitment

We are extremely proud to have been awarded Platinum status by EcoVadis, one of the leading providers of corporate sustainability ratings. This is the eighth consecutive year that we have received their highest rating. A key contributing factor was our ambitious science-based sustainability goal of halving our carbon footprint across the value chain by 2030. This follows Sustainalytics which awarded us our highest rating, with our sustainable portfolio, our carbon program and the reduction of waste and the use of hazardous substances among the strengths highlighted. These two ratings reflect our commitment to ensuring that everything we do starts with people. Planet. Painting.

Paint the Future winners sign letters of intent

Three startups have signed letters of intent to continue working together on sustainable business opportunities with AkzoNobel following our latest Paint the Future Global Startup Challenge. SolCold from Israel, Aerones from Latvia and SprayVision from the Czech Republic received their awards after an intense three-day training camp at our headquarters in Amsterdam, the Netherlands.

In-house resin production being scaled up

We are investing in expanding in-house resin manufacturing as part of the company’s Grow & Deliver strategy. The scale-up program, which is already underway, will help build resilience to supply disruptions while making a significant contribution to achieving our Scope 3 financial and carbon reduction ambitions (upstream ).

Take a quantum leap to accelerate innovation

We partnered with Microsoft to explore how quantum computing could help accelerate the development of more sustainable paints and coatings. Scientists from both parties will use Microsoft’s powerful Azure Quantum ecosystem to co-develop what will effectively be a virtual lab. The goal is to conduct experiments using quantum chemistry, which is capable of performing multiple complex processes with lightning speed and efficiency.

Outlook:

AkzoNobel aims to grow at or above its relevant markets, in line with the company’s Grow & Deliver strategy. Trends differ by region and segment, with inflation of raw materials and other costs (including freight) expected to gradually ease in the second half of 2022. AkzoNobel aims to continue to offset inflation of raw materials and other variable costs (including freight) through pricing initiatives. Market uncertainties have increased due to the sanctions against Russia and the resurgence of COVID-19 in China, among others. Assuming no further significant market disruptions, AkzoNobel aims to achieve the adjusted EBITDA target of €2 billion for 2023 and an average annual increase of 50 basis points in return on sales over the 2021-2023 period. AkzoNobel targets a leverage ratio of 1 to 2 times net debt/EBITDA and is committed to maintaining a strong investment grade credit rating.

The first quarter report can be viewed and downloaded https://akzo.no/results-q12022

1 Calculations at constant exchange rates exclude the impact of changes in exchange rates

2 Return on sales (ROS) is adjusted operating income as a percentage of revenue

3 Adjusted operating income = operating income excluding identified items

This press release covers the highlights of the quarter. We recommend that you read the press release in conjunction with the full quarterly report. The quarterly report provides additional information, including the IAS34 condensed consolidated financial statements. ROS, adjusted OPI and adjusted BPA are alternative performance measures (APM). AkzoNobel uses APM adjustments to IFRS measures to provide additional reporting information on underlying business developments. A reconciliation of alternative performance measures to the most directly comparable IFRS measures is available in AkzoNobel’s quarterly report.

All figures in AkzoNobel’s press release and quarterly report are unaudited. The condensed half-yearly consolidated financial statements were discussed and approved by the Management Board and the Supervisory Board. These summary financial statements have been authorized for issue.

This is a public announcement by Akzo Nobel NV pursuant to Article 17(1) of the EU Market Abuse Regulation (596/2014).

About AkzoNobel

We provide the sustainable and innovative paints and coatings that our customers, communities – and the environment – increasingly rely on. That’s why everything we do starts with people. Planet. Painting. Our portfolio of world-class brands – including Dulux, International, Sikkens and Interpon – are trusted by customers around the world. We are active in over 150 countries and aim to become the global industry leader. It’s what you expect from a pioneering paint company that is committed to science-based goals and taking real action to address challenges of global significance and protect future generations.