Akzo Nobel N.v. · EURONEXT:AKZA
Akzo Nobel — Q1 2025 Earnings Presentation
16 slides from Akzo Nobel's earnings presentation, Apr 23, 2025
Slide 1: Investor Update
Investor Update April 23, 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: Q1 2025 Highlights
Q1 2025 Highlights Adj. EBITDA flat YoY at CC on lower volumes, higher prices and strong cost reduction Q1 2025 YoY Highlights • Organic sales flat • OPEX flat YoY despite 8% wage + inflation • Volumes -2%, incl. Turkey in-year rebalancing - >70% of SG&A net reductions already achieved • Price/mix +
Slide 4: Volume development
Volume development Q1 -1% excl. Turkey rebalancing; NAM softer, Deco China improving Q1 2025 Deco EMEA Flattish excl. Turkey rebalancing; improved trends in Pro -LSD% Deco LATAM Brazil impacted by timing of price increase ] -MSD% Deco SE Asia India outperforming in softer market; Vietnam rebounding;
Slide 5: Tariff impact
Tariff impact Manageable cost impact given localized production; real risk is demand / macro RM + FG: €25m annualized EBITDA impact on US exports (after mitigation) RoW Customer exports to US Raw materials (RM) Deco: nil 90% locally sourced Coatings: limited Sales risk to Akzo < €50m Finished goods
Slide 6: SG&A actions – headcount and base pay
SG&A actions – headcount and base pay Neutralized 8% salary increase in ’24; < half expected in ’25 + further streamlining Number of employees Annualized base pay (indexed) 35,700 35,400 CLA ‘25 CLA ‘24 mitigated by lower FTEs 34,600 1,600 FTE reduction 34,100 102 Total commitment: 2,200 FTE reducti
Slide 7: Q1 business performance
Q1 business performance Good Coatings performance; Deco softer in Q1 (robust ‘24 comps + rebalancing) AkzoNobel Deco Coatings Q1 revenue development % YoY Q1 revenue development % YoY Q1 revenue development % YoY Organic sales: Organic sales: Organic sales: flat -1% +1% 2 2 (1) - (1) - (1) - - - - -
Slide 8: Operating results for Q1 2025
Operating results for Q1 2025 Underlying FCF rebound; adj. leverage at 2.8x on seasonality Return Operating on investment working capital (%) Operating WC (% rev) FCF (€m) Identified items cash out 13.8% 13.1% 18.0% 18.0% (211) (183) (132) (199) (51) Q1’24 Q1’25 Q1‘24 Q1’25 Q1‘24 Q1’25 8 Investor up
Slide 9: Outlook
Outlook Q2 visibility impacted by macro + FX translation; FY underpinned by pricing and savings 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: belo
Slide 10: Upcoming events and contacts
AkzoNobel Media Relations Upcoming events T +31 (0)88 - 969 7833 Annual General Meeting of shareholders April 25 Contact: Joost Ruempol Ex-dividend date of 2024 final dividend April 29 media.relations@akzonobel.com Record date of 2024 final dividend April 30 Payment date of 2024 final dividend May 7
Slide 11: Price/mix and volumes
Price/mix and volumes AkzoNobel Deco Coatings price/mix (% YoY) 1616 1919 12.5 14 1414 13 13 12 111111 11 11 5 10 3 3 1 7 3 2 10 2 2 0 1 2 2 8 -1 0 1 0 1 2 1 -2 5 5 -2 4 4 2 0 2 0 1 2 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 12: 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 13: 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 14: 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 15: Additional financial information
Additional financial information Consolidated statement of free cash flows Operating income to net income € million Q1’24 Q1’25 € million Q1’24 Q1’25 EBITDA 350 286 Operating income 261 192 Impairment losses — 3 Financing income and expenses (16) (30) Pre-tax results on acquisitions and divestments
Slide 16: Alternative performance measures
Alternative performance measures Average invested capital (€m) Operating income (€m) Q1’24 Q1’25 Δ% Adjusted EBITDA margin (%) Q1’24 Q1’25 Q1’24 Q1’25 Δ% April 2023 - March 2024/April 2024 - March Decorative Paints 116 77 (34%) Decorative Paints 14.8 14.3 2025 Decorative Paints 3,735 3,901 4% Perfor