AkzoNobel delivers double-digit revenue growth in Q1; pricing in line with raw material inflation.

Highlights Grow & Deliver (compared with Q1 2021)

• Revenue up 12% and 10% higher in constant currencies, driven by strong pricing (up 17%)
• ROS at 9.1% (2021: 13.6%), resulting from continued raw material, freight costs inflation, supply constraints
• Adjusted EBITDA at €317 million (2021: €391 million)

Highlights Q1 2022 (compared with Q1 2021)

• Pricing initiatives more than offset the increase of raw material and other variable costs (including freight), which combined increased €334 million compared with Q1 2021. Volumes 7% lower
• Operating income at €232 million (2021: €303 million), includes €2 million net positive impact from identified items (2021: €4 million net negative impact). OPI margin 9.2% (2021: 13.4%)
• Adjusted operating incomeat €230 million (2021: €307 million)
• Net cash from operating activities decreased to negative €102 million (2021: negative €31 million)
• Net income attributable to shareholders at €154 million (2021: €217 million)
• EPS from total operations at €0.87 (2021: €1.15); adjusted EPS from continuing operations at €0.86 (2021: €1.18)

Thierry Vanlancker’s comments

AkzoNobel CEO, Thierry Vanlancker, commented: “We continued to make good progress, with strong revenue growth in both paints and coatings in the first quarter. Through our vigorous pricing initiatives, we are in line with the unprecedented variable cost inflation that impacted our industry during the quarter. I’m very proud of our organization, and our first quarter results are proof of the ongoing hard work and commitment of all our employees.

“Although uncertainties remain with regard to amongst others the sanctions on Russia, the COVID-19 resurgence in China and continued supply constraints—especially in North America—we remain confident in realizing our Grow & Deliver strategy.”

AkzoNobel in € millions	Q1 2021	Q1 2022	Δ%	Δ% CC
Revenue	2,263	2,525	12%	10%
Operating income	303	232	(23%)
Adjusted operating income3	307	230	(25%)
ROS2	13.6%	9.1%

Recent highlights

Cetol products used on eye-catching museum:

Sustainable technology and responsible architecture blend beautifully in this visually stunning museum, which recently opened in Uruguay. Inspired by the shape of an ark and constructed from wood, the futuristic Atchugarry Museum of Contemporary Art (MACA) is surrounded by 40 hectares of greenery. Our Cetol woodcare brand supplied more than 1,000 liters of products for both the interior and exterior, which help to protect the impressive structure. The eye-catching museum is regarded as a prime example of how wood can be used for architectural purposes and not just for decorative applications.

Sustainability ratings reflect People. Planet. Paint. commitment

We’re extremely proud to have been awarded Platinum status by EcoVadis – a leading provider of business sustainability ratings. It’s the eighth year in a row we’ve received their highest rating. A key contributing factor was our ambitious science-based sustainability target of halving our carbon footprint across the full value chain by 2030. It follows on from Sustainalytics awarding us our best-ever rating, with our sustainable portfolio, carbon program and reduction in waste and hazardous substance use among the highlighted strengths. Both of these ratings reflect our commitment to ensuring that everything we do starts with People. Planet. Paint.

Paint the Future winners sign letters of intent

Three startups have signed letters of intent to continue working together on sustainable business opportunities with AkzoNobel following our latest global Paint the Future startup challenge. SolCold from Israel, Aerones from Latvia and SprayVision from the Czech Republic received their awards following an intense three-day bootcamp at our head office in Amsterdam, the Netherlands.

In-house production of resins being scaled-up

We’re investing in the expansion of in-house resin manufacturing as part of the company’s Grow & Deliver strategy. The scale-up program, which is already underway, will help build resilience against supply disruptions while making an important contribution to achieving our financial and Scope 3 (upstream) carbon reduction ambitions.

Taking a quantum leap to fast-track innovation

We’ve teamed up with Microsoft to explore how quantum computing could help fast track the development of more sustainable paints and coatings. Scientists from both parties will use Microsoft’s powerful Azure Quantum ecosystem to co-develop what will effectively be a virtual laboratory. The aim is to conduct experiments using quantum chemistry, which is capable of performing multiple complex processes with lightning quick speed and efficiency.

The report for the first quarter can be viewed and downloaded here.