Slide 1: Investor Update
Investor Update April 23, 2024
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: Q1 2024 Overview
Q1 2024 Overview Volume growth across AkzoNobel and continued margin expansion Q1 2024 YoY Highlights • Organic sales +2% • Investing for Powder growth: • Capacity expansion and modernization • Volumes +2% across all regions • Adj. EBITDA €363m (+19%) • Global innovation lab in the Netherlands • New
Slide 4: Q1 business volume update
Q1 business volume update Q1 volumes up 2% led by Powder and Deco South East Asia Q1 2024 Deco EMEA Progressive rebound towards 2019 level Flat Deco LATAM Continued growth in Brazil; share gains in Argentina ] Flat Deco China Solid Q1 despite tough comps, benefiting from product launches Deco SE Asi
Slide 5: Q1 business performance
Q1 business performance Continued profitability ramp-up, FX still a headwind, price/mix flat AkzoNobel Deco Coatings Q1 revenue development % YoY Q1 revenue development % YoY Q1 revenue development % YoY Organic sales: Organic sales: Organic sales: +2% +3% +2% - - - (3) 2 1 - (3) - - - (4) 2 (1) 1 1
Slide 6: Q1 operating results
Q1 operating results Strong rebound in ROI, Working Capital improving, FCF seasonal Return Operating on investment working capital (ROI) Operating working capital Free cash flow (FCF) (%) (% of revenue) (€m) 13.8% 18.6% 18.0% 9.4% (112) (211) Q1‘23 Q1’24 Q1‘23 Q1’24 Q1‘23 Q1’24 6 Investor update | Q
Slide 7: Outlook 2024
Outlook 2024 Solid start, on track to deliver 2024 ambitions Strategic priorities 2024 Outlook Sustainability-driven innovation • Adj. EBITDA: €1.50-1.65bn • CAPEX: €350m Growth in focus • Volumes: +LSD% • Net Debt/EBITDA: around 2.3x segments and markets • Industrial efficiency benefit: >€25m • Sta
Slide 8: Contacts and upcoming events 2024
AkzoNobel Media Relations T +31 (0)88 - 969 7833 Upcoming events 2024 Contact: Joost Ruempol Annual General Meeting of shareholders April 25 media.relations@akzonobel.com Ex-dividend date of 2023 final dividend April 29 Record date of 2023 final dividend April 30 AkzoNobel Investor Relations Payment
Slide 9: Price/mix and volumes
Price/mix and volumes AkzoNobel Paints Coatings price/mix (% YoY) 1616 1919 12.5 14 1414 13 13 12 111111 11 11 5 4 10 3 3 3 2 2 2 7 3 2 2 1 10 2 2 8 -1 1 -1 1 0 1 -2 5 5 0 1 0 -2 4 4 0 -4 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 10: Mid-term ambitions
Mid-term ambitions Expanding profitability underpinned by growth and industrial excellence Strategic priorities Targets Sustainability-driven Adj. EBITDA margin ROI innovation Growth in focus >16% 16-19% segments and markets Adj. EBITDA growth Industrial efficiency benefit CAGR: >6% €250m by 2027 In
Slide 11: Planning assumptions
Planning assumptions 2024 Mid-term Industrial efficiency benefit Adj. EBITDA €1.50-1.65bn CAGR ‘23-’27: >6% Margin: >16% 2024 Organic volumes +LSD% +LSD% 2025 Industrial efficiency benefit >€25m €250m 2026 Identified items €100-150m Industrial efficiency: €130-150m (‘24-’26) 2027 CAPEX €350m pa, inc
Slide 12: 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 13: Additional financial information
Additional financial information Consolidated statement of free cash flows Operating income to net income € million Q1’23 Q1’24 € million Q1’23 Q1’24 EBITDA 269 350 Operating income 182 261 Pre-tax results on acquisitions and divestments 3 1 Financing income and expenses (38) (16) Changes in working
Slide 14: Alternative performance measures
Alternative performance measures Operating income (€m) Q1’23 Q1’24 Δ% Adjusted earnings per share Average invested capital (€m) Decorative Paints 94 116 23% from continuing operations (€m) Q1’23 Q1’24 Apr’22-Mar’23/Apr’23-Mar’24 Q1’23 Q1’24 Δ% Performance Coatings 130 176 35% Profit from continuing