Akzo Nobel N.v. · EURONEXT:AKZA
Akzo Nobel — Q2 2025 Earnings Presentation
15 slides from Akzo Nobel's earnings presentation, Jul 22, 2025
Slide 1: Investor Update
Investor Update July 22, 2025 1
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: Q2 2025 Highlights
Q2 2025 Highlights EBITDA margin rises to 15% on pricing and efficiency programs, despite FX headwind Q2 2025 YoY H1 2025 YoY • Organic sales flat • Organic sales flat • Volumes -1%, Pricing +2%, Mix -1% • Net OPEX savings of €35m • Adj. EBITDA at €393m • SG&A actions done; 5 site closures announced
Slide 4: Delivering on strategic commitments
Delivering on strategic commitments India transaction signed, cost ramp down progressing - value unlock accelerating Portfolio review SG&A program complete Industrial program ahead of plan • Sale of Akzo Nobel India to JSW • Program fully implemented • 5 closures announced YTD • Closing expected in
Slide 5: Volume development
Volume development Deco China rebound underway; Coatings impacted by NAM weakness Q2 2025 Deco EMEA Growth in West Europe; South Europe soft -LSD% Deco LATAM Brazil performance improving with impact from price increases easing -LSD% ] Deco China Solid rebound with continued price stability +HSD% Dec
Slide 6: Q2 business performance
Q2 business performance Organic sales flat; solid margin expansion led by Deco; FX translation -5% AkzoNobel Deco Coatings Q2 revenue development % YoY Q2 revenue development % YoY Q2 revenue development % YoY Organic sales: Organic sales: Organic sales: flat +1% flat 1 1 2 - - - - (1) (5) (6) (5) (
Slide 7: Operating results for Q2 2025
Operating results for Q2 2025 ROI impacted by FX; strong FCF despite €49m incidentals cash-out Return Operating on investment working capital (%) Trade WC1 (% rev) FCF (€m) 162 13.7% 13.2% 17.3% 17.0% 77 (134) (21) H1’24 H1’25 Q2‘24 Q2’25 Q2‘24 Q2’25 H1‘24 H1’25 7 Investor update | Q2 2025 1. Trade
Slide 8: Outlook
Outlook Guidance in CC unchanged with structural savings driving performance; FX headwinds FY2025 Outlook Adj. EBITDA • Gross savings: +€170m >€1.48bn • Identified items / cash out: ~€220m (at end of June FX) • CAPEX: €350m Volumes • Net Debt/adj. EBITDA: below 2.5x Flat/– • Net Debt/EBITDA: below 2
Slide 9: Contact and upcoming events
AkzoNobel Media Relations Upcoming events T +31 (0)88 - 969 7833 Contact: Joost Ruempol Q3 results October 22 media.relations@akzonobel.com AkzoNobel Investor Relations T +31 (0)88 - 969 0139 Contact: Kenny Chae investor.relations@akzonobel.com Alternative performance measures (APM) AkzoNobel uses A
Slide 10: Price/mix and volumes
Price/mix and volumes AkzoNobel Deco Coatings price/mix (% YoY) 16 16 19 19 13 13 12 11 11 11 14 14 8 7 5 5 5 3 4 3 3 2 0 1 0 1 2 1 2 2 0 1 2 2 1 2 0 2 0 1 2 2 2022 2023 2024 2025 2022 2023 2024 2025 2022 2023 2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 11: 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 12: Planning assumptions
Planning assumptions 2025 Mid-term Adj. EBITDA >€1.48bn at end of June FX CAGR ‘23-’27: >6%; Margin: >16% Organic volumes Flat/- +LSD% Gross savings €170m >€450m (vs 2023) Industrial transformation €70m Industrial transformation €300m SG&A actions €100m SG&A actions >€150m Identified items Efficienc
Slide 13: 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 EBITDA is operating income excluding depreciation, amortization and identified items
Slide 14: Additional financial information
Additional financial information Consolidated statement of free cash flows Operating income to net income Q2’24 Q2’25 € million H1’24 H1’25 Q2’24 Q2’25 € million H1’24 H1’25 362 306 EBITDA 712 592 270 214 Operating income 531 406 — 4 Impairment losses — 7 (31) (50) Financing income and expenses (47)
Slide 15: Alternative performance measures
Alternative performance measures Adjusted earnings per share EBITDA (€m) Q2’24 Q2’25 Δ% Operating income (€m) H1’24 H1’25 Δ% Q2’24 Q2’25 H1’24 H1’25 Q2’24 Q2’25 from continuing operations (€m) Jul’23 – Jun'24/Jul'2024 – Jun'25 121 101 -17% Decorative Paints 237 178 -25% 191 135 Profit from continuin