Akzo Nobel N : Investor update presentation - Q1 (investor update q1 2026 akzonobel)

About this update from Akzo Nobel N.v.

Investor Update April 22, 2026 Q1 2026 Highlights Consensus beat, margin expansion on pricing and cost actions Q1 2026 YoY Org. Sales -1%; Revenue -9% including India disposal (-3%) and FX (-5%) Price +1%, mix -1%, volumes -1% Adj. Gross Margin 42.5%, +110bps Adj. EBITDA margin 14.5%, +80bps Adj. EBITDA €345m, +7% at comparable scope (-€13m) and FX (-€23m) YoY Highlights Industrial program on track to be completed by year end: 3 sites closed in Q1 Deco Asia portfolio review: Pakistan sold for 14x EV/EBITDA, EV €50m. Closing in H2 €1.1bn dual tranche bond issued in March Proposed merger with Axalta on schedule Volume development Growth in Asia and South America, NAM and Europe still slow Q1'26 Powder Coatings Continued growth in Asia; higher Architectural and Auto +LSD% Marine & Protective Protective strong in Asia; Marine lower on high comps -LSD% Automotive & Specialty Aero continues outperformance; NAM Refinish stable, growing in Asia Flat Industrial Coatings Growth in Coil; Packaging down -LSD% Deco EMEA Slow start to quarter, accelerated in March -LSD% Deco LATAM Brazil returned to growth, Colombia up +LSD% Deco China Solid performance throughout quarter +MSD% Deco SE Asia Outperformance in Vietnam continues; Indonesia improving +HSD% AkzoNobel -1% Organic volumes YoY Q1 business performance Deco performing well, Coatings impacted by geopolitical instability AkzoNobel Coatings Deco (10) Q1 revenue development % YoY Q1 revenue development % YoY Q1 revenue development % YoY Organic sales: -1% (1) - (5) - Organic sales: -3% (2) (1) (3) (2) (5) - Organic sales: +2% - 2 Volumes Price/ mix (7) (5) (4) - Volumes Price/ mix M&A FX Other Revenue Volumes Price/ (9) mix M&A FX Other Revenue M&A FX Other Revenue Q1'25 Q1'26 Revenue (€m) 2,613 2,386 comparable scope, FX (1) 321 345 Adj. EBITDA (€m) 357 345 Q1'25 Q1'26 Revenue (€m) 1,583 1,427 comparable scope, FX (1) 210 196 Adj. EBITDA (€m) 231 196 Q1'25 Q1'26 Revenue (€m) 1,030 959 comparable scope, FX (1) 127 166 Adj. EBITDA (€m) 147 166 Adj. EBITDA margin (%) 13.7 14.5 Adj. EBITDA margin (%) 14.6 13.7 Adj. EBITDA margin (%) 14.3 17.3 Q1 business performance Significant FCF improvement; adjusted leverage at 2.1x Q1'26 Q1'25 16.8% 18.0% Trade WC (% rev) Q1'26 Q1'25 13.6% 13.1% Return on investment (%) Q1'26 Q1'25 FCF (€m) (144) (183) Middle East impact - raw material inflation vs. pricing Price increases announced to fully offset ME impact; strong recent track record Raw Material (RM) basket: 50% oil-linked Oil-linked Other Additives Pigments, colorants, minerals Resins (incl. monomers) Packaging Solvents Other Proven track record: inflation fully offset in '21/'22 (€m) Current cycle: pricing offset underway 400 200 0 -200 -400 Q1 Q2 Q3 Q4 2021 Total pricing €2.3bn Price vs RM Total RM inflation €2bn Q1 Q2 Q3 Q4 Q1 Q2 2022 2023 Current YTG assumptions: oil $110 (1) , chemical value chain significantly disrupted = YTG RM inflation high-teens % Difference vs. last cycle: more abrupt, faster pricing response Actions: announced mid single-digit to low-teens price increases to fully offset inflation Pricing implementation : ramping up in Q2, full impact in Q3 2026 outlook Q2 adj. EBITDA expected around €400m Adj. EBITDA: ≥€1.47bn €1.44bn ≥€1.47bn scope (1) (€40m) (€35m) FX (2) step-up €100m 2025 2026 Volumes: Flat Pricing to fully offset raw material and logistics inflation Net industrial program benefit: €90m (SG&A reduction to offset inflation) Identified items cash out: €170m CAPEX: €350m Leverage: ~2x Stable dividend Subject to ongoing market uncertainties and at exchange rates as of the end of 2025. Outlook is on a standalone basis and excludes any effects from the proposed merger with Axalta. 2026 outlook: RM Add'l inflation pricing Middle East impact AkzoNobel + Axalta Merger preparations progressing as planned Closing expected : End of 2026 - Early 2027 Regulatory clearances (ongoing) EGM early July Key workstreams launched (ongoing) Merger announced (November 18) Three critical workstreams Integration management office formed Focus on Day 1 readiness and accelerating synergies INTEGRATION PLAN PCAOB audit completed, confidential F-4 filing submitted end of March Vote expected early July EGM Regulatory filings progressing in-line with expected timelines REGULATORY CLEARANCE Upcoming events 2026 Annual General Meeting of shareholders Ex-dividend date of 2025 final dividend Record date of 2025 final dividend Payment date of 2025 final dividend April 23 April 27 April 28 May 6 AkzoNobel Media Relations T +31 (0)88 - 969 7833 Contact: Joost Ruempol [email protected] AkzoNobel Investor Relations T +31 (0)88 - 969 1411 Contact: Jan Willem Enhus [email protected] Alternative performance measures (APM) AkzoNobel uses APM adjustments to the IFRS measures to provide supplementary information on the reporting of the underlying developments of the business. A reconciliation of the alternative performance measures to the most directly comparable IFRS measures can be found in the appendix to this presentation. This Investor Update covers the highlights for the quarter. We recommend to read the Investor Update in combination with the AkzoNobel Q1 2026 Report. The Q1 2026 Report provides additional information, including the IAS34 condensed consolidated financial statements. All figures in this presentation and in the AkzoNobel Q1 2026 Report are unaudited. The interim condensed consolidated financial statements were discussed and approved by the Board of Management and the Supervisory Board. Important information regarding the proposed Axalta transaction General restrictions This communication is not for release, publication, or distribution, in whole or in part, in or into, directly or indirectly, any jurisdiction in which such release, publication, or distribution would be unlawful. This communication is not a prospectus and the information in this communication is not intended to be complete. This communication is for informational purposes only and is not intended to be and shall not constitute a solicitation of any vote or approval, or an offer to buy or sell, or the solicitation of an offer to buy or sell, any securities, or an invitation or recommendation to subscribe for, acquire or buy securities of AkzoNobel or Axalta or any other financial products or securities, in any place or jurisdiction, nor shall there be any offer, solicitation or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended (the "Securities Act"). Any decision to purchase, subscribe for, otherwise acquire, sell or otherwise dispose of any securities must be made only on the basis of the information contained in and incorporated by reference into the prospectus with respect to the shares to be allotted by AkzoNobel in the proposed transaction once published. A prospectus in relation to the proposed transaction described in this communication is expected to be published in due course. The distribution of this communication may, in some countries, be restricted by law or regulation. Accordingly, persons who come into possession of this document should inform themselves of and observe these restrictions. To the fullest extent permitted by applicable law, AkzoNobel and Axalta disclaim any responsibility or liability for the violation of any such restrictions by any person. Neither AkzoNobel, nor Axalta, nor any of their advisors assume any responsibility for any violation by any person of any of these restrictions. Shareholders of AkzoNobel and Axalta, respectively, with any doubt as to their position should consult an appropriate professional advisor without delay. Additional information and where to find it In connection with the proposed transaction between AkzoNobel and Axalta, AkzoNobel will file with the U.S. Securities and Exchange Commission (the "SEC") a registration statement on Form F-4, which will include a proxy statement of Axalta that also constitutes a prospectus with respect to the shares to be offered by AkzoNobel in the proposed transaction. The definitive proxy statement/prospectus will be sent to the shareholders of Axalta. Each of AkzoNobel and Axalta will also file other relevant documents in connection with the proposed transaction. This communication is not a substitute for any registration statement, proxy statement/prospectus or other documents AkzoNobel and/or Axalta may file with the SEC or any other competent regulator in connection with the proposed transaction. This communication does not contain all the information that should be considered concerning the proposed transaction and is not intended to form the basis of any investment decision or any other decision in respect of the proposed transaction. BEFORE MAKING ANY VOTING OR INVESTMENT DECISIONS, INVESTORS, STOCKHOLDERS AND SHAREHOLDERS OF AKZONOBEL AND AXALTA ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THE PROXY STATEMENT/PROSPECTUS, AS APPLICABLE, AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, IN CONNECTION WITH THE PROPOSED TRANSACTION WHEN THEY BECOME AVAILABLE, AS THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT AKZONOBEL, AXALTA, THE PROPOSED TRANSACTION AND RELATED MATTERS. The registration statement and proxy statement/prospectus and other relevant documents filed by AkzoNobel and Axalta with the SEC, when filed, will be available free of charge at the SEC's website at www.sec.gov. In addition, investors and shareholders will be able to obtain free copies of the proxy statement/prospectus and other documents filed with the SEC from Axalta's investor relations webpage at https://ir.axalta.com/sec-filings/all-sec-filings or from AkzoNobel's investor relations webpage at https://www.akzonobe l .com/en/investors . The contents of this communication should not be construed as financial, legal, business, investment, tax or other professional advice. Each recipient should consult with its own professional advisors for any such matter and advice. 11 Planning assumptions 2026 Mid-term Adj. EBITDA At or above €1.47bn (end of Dec '25 FX) CAGR '23-'27: >6%; Margin: >16% Organic volumes Flat +LSD% Savings Net industrial program benefit: €90m (SG&A carryover and productivity to offset inflation) Gross savings €500m (vs 2023) Industrial transformation €300m SG&A actions ~€200m Identified items Cash out ~€170m Efficiency programs cost: Industrial transformation ~€220m SG&A actions ~€150m CAPEX €350m €350m pa, incl. €50m pa from industrial transformation ('24-'26) Working capital ≤14.5% revenue 13-14% revenue Effective tax rate ~28% ~28% Leverage ~2x ~2x Subject to ongoing market uncertainties and assuming constant currencies, on a standalone basis and excludes any effects from the proposed merger with Axalta. Mid-term ambitions Expanding profitability underpinned by growth and operational efficiencies Adj. EBITDA margin >16% Adj. EBITDA growth CAGR: >6% ROI 16-19% Industrial transformation benefit €300m by 2027 Volume growth CAGR: +LSD% Leverage ~2x, investment grade Subject to ongoing market uncertainties and assuming constant currencies, on a standalone basis and excludes any effects from the proposed merger with Axalta. CAGR on 2023 baseline. Growth in focus segments and markets Sustainability-driven innovation Industrial excellence and simplified execution model Active portfolio management Strategic priorities Targets Price/mix and volumes AkzoNobel Coatings Deco price/mix (% YoY) 8 4 3 2 2 0 0 1 2 2 1 1 -1 5 5 3 2 2 0 1 2 2 1 1 - 2 7 5 3 2 0 1 0 1 2 1 1 1 0 2023 Q1 Q2 Q3 Q4 2024 Q1 Q2 Q3 Q4 2025 Q1 Q2 Q3 Q4 2026 Q1 2023 Q1 Q2 Q3 Q4 2024 Q1 Q2 Q3 Q4 2025 Q1 Q2 Q3 Q4 2026 Q1 2023 Q1 Q2 Q3 Q4 2024 Q1 Q2 Q3 Q4 2025 Q1 Q2 Q3 Q4 2026 Q1 organic volumes (% YoY) 3 0 2 1 1 0 -1 -1 -1 -1 -3 -2 -2 3 2 2 2 0 1 -1 -4 -1 -2 -2 -3 -2 3 0 1 0 0 1 0 -1 -1 -1 -2 -3 -1 2023 Q1 Q2 Q3 Q4 2024 Q1 Q2 Q3 Q4 2025 Q1 Q2 Q3 Q4 2026 Q1 2023 Q1 Q2 Q3 Q4 2024 Q1 Q2 Q3 Q4 2025 Q1 Q2 Q3 Q4 2026 Q1 2023 Q1 Q2 Q3 Q4 2024 Q1 Q2 Q3 Q4 2025 Q1 Q2 Q3 Q4 2026 Q1 14 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 Adjusted EBITDA margin is adjusted EBITDA as percentage of revenue Capital expenditures is the total of investments in property, plant and equipment and investments in intangible assets Constant currencies (CC) calculations exclude the impact of changes in foreign exchange rates by re-translating the prior year local currency amounts into euros at the current year's foreign exchange rates Free cash flow is net cash generated from/(used for) operating activities minus capital expenditures Identified items are special charges and benefits, results on acquisitions and divestments, major restructuring and impairment charges, and charges and benefits related to major legal, environmental and tax cases Invested capital is total assets (excluding cash and cash equivalents, short-term investments, investments in associates, pension assets, assets held for sale) less current tax liabilities, deferred tax liabilities and trade and other payables. Average invested capital is the average of the quarter end invested capital balances for the last four quarters Leverage ratio is calculated as net debt divided by adjusted EBITDA for the last 12 months Trade working capital is defined as the sum of inventories, trade receivables and trade payables. When expressed as a ratio, operating working capital is measured against four times last quarter revenue Operating expenses (OPEX) includes SG&A costs and fixed manufacturing costs within cost of sales Organic sales excludes the impact of changes in consolidation, the impact of changes in foreign exchange rates and the impact of hyperinflation accounting. Refer to constant currencies for details on the calculation of the foreign exchange rate impact Return on investment (ROI) is adjusted operating income of the last 12 months as percentage of average invested capital Additional financial information Net income 107 93 Earnings per share (in €) Consolidated statement of free cash flows Operating income to net income € million Q1'25 Q1'26 EBITDA 286 270 € million Q1'25 Q1'26 Operating income 192 177 Impairment losses 3 3 Financing income and expenses (30) (37) Pre-tax results on acquisitions and divestments 1 (2) Results from associates 7 8 Changes in working capital (336) (264) Profit before tax 169 148 Pension top-up payments - - Income tax (48) (47) Other changes in provisions 9 1 Profit from continuing operations 121 101 Interest paid (41) (55) Profit from discontinued operations - - Income tax paid (44) (41) Profit for the period 121 101 Other 10 2 Non-controlling interests (14) (8) Net cash generated from/(used for) operating activities (112) (86) Capital expenditures (71) (58) Free cash flow (183) (144) Total operations 0.63 0.54 Adjusted earnings per share (in €) Continuing operations 0.94 0.89 Alternative performance measures Operating income (€m) Q1'25 Q1'26 Δ% Adjusted earnings per share from continuing operations (€m) Q1'25 Q1'26 Adjusted EBITDA (€m) April 2024 - March 2025/April 2025 - March 2026 Performance Coatings 171 140 -18% Decorative Paints 77 91 18% Profit from continuing operations 121 101 Identified items reported in operating income 72 77 Operating income 848 1,149 Other activities (56) (54) Identified items reported in interest (2) 2 Total 192 177 -8% Identified items reported in income tax (17) (19) Identified items 255 (78) Non-controlling interests (14) (8) Adjusted EBITDA 1,472 1,432 Adjusted net income from continuing operations 160 153 *Excluding identified items Performance Coatings (14) (10) Decorative Paints (32) (40) Weighted average number of shares (in millions) 170.8 171.2 Other activities (26) (27) Depreciation and amortization* 369 361 Identified items (€m) Q1'25 Q1'26 Total (72) (77) Adjusted gross margin (€m) Q1'25 Q1'26 Gross profit 1,048 978 Identified items (34) (37) Adjusted gross profit 1,082 1,015 Adjusted gross margin 41.4 % 42.5 % Adjusted EBITDA (€m) Q1'25 Q1'26 Δ% Adjusted operating income 264 254 -4% Depreciation and amortization (excl. Identified items) 93 91 Adjusted EBITDA 357 345 -3% Adjusted EBITDA margin (%) Q1'25 Q1'26 Performance Coatings 14.6 13.7 operations Average invested capital (€m) April 2024 - March 2025/April 2025 - March 2026 Δ% Short-term investments (173) (270) Adjusted earnings per share from continuing 0.94 0.89 Cash and cash equivalents (1,599) (2,763) Performance Coatings 3,733 3,596 -4% Decorative Paints 3,901 3,391 -13% Total 8,393 7,864 -6% ROI (%) Performance Coatings 19.9 17.5 Other activities 759 877 April 2024 - March 2025/April 2025 - March 2026 Other activities 1 Total 13.1 13.6 Decorative Paints 12.2 15.5 1 ROI for Other activities is not shown, as this is not meaningful. Net Debt (€m) Q1'25 Q1'26 Long-term borrowings 4,170 4,757 Short-term borrowings 1,717 1,353 Total 4,115 3,077 Leverage ratios April 2024 - March 2025/April 2025 - March 2026 Net debt/Adjusted EBITDA 2.8 2.1 Decorative Paints 14.3 17.3 Total 13.7 14.5 Attention : This is an excerpt of the original content. 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