Akzo Nobel N.v. · EURONEXT:AKZA
Akzo Nobel — Q4 2024 Earnings Presentation
19 slides from Akzo Nobel's earnings presentation, Jan 29, 2025
Slide 1: Investor Update
Investor Update January 29, 2025
Slide 2: Forward-looking statements
Forward-looking statements This presentation1 does not constitute or form a part of any offer to sell, or any invitation or other solicitation of any offer, to buy or subscribe for any securities in the United States or any other jurisdiction. Some statements in this presentation are 'forward-lookin
Slide 3: Q4 and FY 2024 Highlights
Q4 and FY 2024 Highlights EBITDA at consensus, leverage higher on lower payables and restructuring Q4 2024 YoY FY 2024 YoY • Organic sales +1% • Organic sales +2% • Volumes flat • Volumes +1% • Price/mix +1% • Adj. gross margin +130 bps • OPEX flat in CC • Adj. EBITDA € 1,506m or 14.1% €1,478m post
Slide 4: Volume development
Volume development Q4 volume growth +2% ex. Deco China; growth to continue in 2025 Q4 2024 2025 Deco EMEA West Europe slightly soft in small Q; flattish trends to continue -LSD% ~Flat Deco LATAM Brazil continues to drive performance; Colombia & Argentina stabilizing +MSD% ] +MSD% Deco SE Asia Solid
Slide 5: Industrial transformation
Industrial transformation New measures drive higher benefit, more site closures in ‘25 and ‘26 Total benefit in 20271 Total benefit Progress update3 €300m >€250m Benefit • New opportunities identified Efficiency €100m • Total benefit re-confirmed at higher level: €300m gains • ~2/3 cost savings • ~1
Slide 6: SG&A actions
SG&A actions Program expanded and accelerated resulting in higher savings Number of employees Strategic commitment 35,700 • Net reduction increased to 2,200 FTE 35,200 • Annualized gross savings of >€150m, run-rate realized by 2025YE 34,600 • Implementation cost ~€140m 1,100 reduction (net of 200 in
Slide 7: Efficiency programs summary
Efficiency programs summary Gross savings €170m in ’25 (provisions €160m, restructuring cash out €170m) Industrial (€m) 2024 2025 2026 2027 TOTAL Benefit 30 70 90 110 300 Restructuring cost 30 100 70 ~200 Restructuring cash out 15 50 90 20 175 CAPEX 50 50 50 150 SG&A (€m) 2024 2025 (H1/H2) 2026 TOTA
Slide 8: Q4 business performance
Q4 business performance Q4 profit growth driven by Coatings, particularly Marine & Protective AkzoNobel Deco Coatings Q4 revenue development % YoY Q4 revenue development % YoY Q4 revenue development % YoY Organic sales: Organic sales: Organic sales: +1% flat +2% 3 4 4 2 4 - 3 - 1 1 1 2 - (1) - - - (
Slide 9: Operating results for Q4 and FY 2024
Operating results for Q4 and FY 2024 FCF impacted by lower payables from inventory reductions Operating working capital (OWC) Free cash flow (FCF) Operating working capital (% of revenue) (€m) 18.0% 840 17.3% 17.7% 15.7% 15.1% 460 367 284 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q4‘23 Q4’24 FY 23 FY 24 9 Inves
Slide 10: Leverage
Leverage Higher ND/EBITDA reflects accelerated restructuring impact; underlying 2.6x Leverage 3.8x Adj. EBITDA vs guidance: • higher restructuring (0.1x) 3.5x • lower payables (0.2x) 3.0x Net Debt/EBITDA <2.9x Net Debt/adj. EBITDA 2.7x 2.6x 2.6x <2.5x 2022 2023 2024 2025 10 Investor update | Q4 2024
Slide 11: Profit expansion
Profit expansion Profitable growth continues; adj. EBITDA >€1.55bn in 2025 Operating Returnworking on investment capital (ROI) Adj. EBITDA (€bn) >1.55 13.0% 13.3% 1.48 1.43 1.40 9.8% 1.16 2022 2023 2024 2022 2023 2024 2025 11 Investor update | Q4 2024
Slide 12: Outlook
Outlook FY EBITDA ramp-up based on self help and volume growth; Q1 slightly below Q1’24 FY2025 Outlook Adj. EBITDA • Gross savings: +€170m above €1.55 billion • Identified items / cash out: ~€220m • CAPEX: €350m Volumes • Net Debt/adj. EBITDA: below 2.5x Flat to +LSD% • Net Debt/EBITDA: below 2.9x •
Slide 13: Mid-term ambitions
Mid-term ambitions Expanding profitability underpinned by growth and operational efficiencies Strategic priorities Targets Sustainability-driven Adj. EBITDA margin ROI innovation Growth in focus >16% 16-19% segments and markets Adj. EBITDA growth Industrial transformation benefit Industrial excellen
Slide 14: Contact and upcoming events
AkzoNobel Media Relations Upcoming events T +31 (0)88 - 969 7833 Publication annual report 2025 February 26 Contact: Joost Ruempol Q1 results April 23 media.relations@akzonobel.com Annual General Meeting of shareholders April 25 Ex-dividend date of 2024 final dividend April 29 AkzoNobel Investor Rel
Slide 15: Price/mix and volumes
Price/mix and volumes AkzoNobel Deco Coatings price/mix (% YoY) 16 16 19 19 12.5 14 14 14 13 13 12 11 11 11 11 11 5 10 3 3 1 7 3 2 10 2 2 0 1 2 8 -1 0 1 0 1 1 -2 5 5 -2 4 4 2 0 2 0 1 2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 16: Planning assumptions
Planning assumptions 2025 Mid-term Adj. EBITDA >€1.55bn CAGR ‘23-’27: >6%; Margin: >16% Organic volumes Flat to +LSD% +LSD% Gross savings €170m >€450m (vs 2023) Industrial transformation €70m Industrial transformation €300m SG&A actions €100m SG&A actions >€150m Identified items Efficiency programs
Slide 17: Performance measures
Performance measures Definitions of alternative performance measures • Adjusted earnings per share are the basic earnings per share from continuing operations, excluding Identified items and taxes thereon • Adjusted gross profit is revenue less cost of sales, excluding identified items • Adjusted gr
Slide 18: Additional financial information
Additional financial information Consolidated statement of free cash flows Operating income to net income Q4’23 Q4’24 € million 2023 2024 Q4’23 Q4’24 € million 2023 2024 307 221 EBITDA 1,386 1,288 214 127 Operating income 1,029 917 2 — Impairment losses 4 — (121) (36) Financing income and expenses (
Slide 19: Alternative performance measures
Alternative performance measures Adjusted earnings per share Average invested capital (€m) Q4’23 Q4’24 Δ% Operating income (€m) 2023 2024 Δ% Q4’23 Q4’24 2023 2024 Q4’23 Q4’24 Δ% from continuing operations (€m) Jan'23 – Dec'23/Jan'24 – Dec'24 99 41 -59% Decorative Paints 500 405 -19% 51 36 Profit fro