Highlights Q4 2022 (compared with Q4 2021)
Revenue up 8% and 9% higher in constant currencies1; pricing up 11%, volumes 9% lower
Operating income at €103 million (2021: €205 million), resulting from lower volumes, higher raw material and freight costs, and inflation on operating expenses; OPI margin 4.0% (2021: 8.5%)
Adjusted operating income2 at €126 million (2021: €209 million), excludes €23 million negative impact from Identified items (2021: €4 million negative impact); ROS3 at 4.8% (2021: 8.7%)
Acquisition of wheel liquid coatings business of Lankwitzer Lackfabrik completed in December
Share buyback of €500 million finalized in December

Highlights full-year 2022 (compared with full-year 2021)
Revenue up 13% and 11% higher in constant currencies, pricing up 14%, volumes 7% lower
Operating income at €708 million (2021: €1,118 million), resulting from lower volumes, higher raw material and freight costs, inflation on operating expenses and €46 million negative impact from hyperinflation accounting. OPI margin 6.5% (2021: 11.7%)
Adjusted operating income at €789 million (2021: €1,092 million), excludes €81 million negative impact from Identified items (2021: €26 million positive impact); ROS at 7.3% (2021: 11.4%)
Adjusted EBITDA at €1,157 million (2021: €1,436 million)
Final dividend proposed of €1.54 per share (2021: €1.54 per share)

AkzoNobel CEO, Greg Poux-Guillaume, commented:
“Looking back on 2022, it was a year of persistent worldwide uncertainty as global events caused significant cost inflation, disrupted supply chains and prompted declining consumer confidence. Our Q4 results continued to be impacted by softer demand, as well as the lingering effects of COVID-19 in some of our most important markets.

“Moving forward, with our margin management and cost reduction programs firmly in place, we plan to mitigate the ongoing pressure from cost inflation and aim to deliver €1.2 to €1.5 billion adjusted EBITDA for 2023, based on current market conditions. Since I joined, I’ve personally witnessed the dedication of our teams around the world, and I’m confident that together we’ll continue to improve the performance of AkzoNobel.”

AkzoNobel in € millions
Q4 2021 Q4 2022 ?% ?% CC¹

see & read more on
https://www.akzonobel.com/en/media/latest-news---media-releases-/publishes-results-for-q4-and-full-year-2022

Recent highlights
Protecting the protectors
We completed a repainting project in Vietnam as part of our Lighthouse Protection Campaign. Cu Lao Xanh – built in 1890 – was coated with more than 11,000 liters of Dulux Weathershield to help protect it against the elements. A great example of how our People. Planet. Paint. approach helps to preserve local history and heritage.

Partner power driving collective reduction of carbon emissions
Value chain partners have teamed up with AkzoNobel in the fields of circular solutions, process efficiency and solvent reduction in a determined effort to collectively reduce carbon emissions in the paints and coatings value chain, including Scope 3 emissions. Five teams have been established as part of our first ever Paint the Future Collaborative Sustainability Challenge. They will now work together in their respective groups to develop possible solutions for limiting climate change.

Partnership with electric vehicle maker BYD announced
We’ve become the global refinish partner for BYD Auto Sales Company Ltd. – currently the world’s leading seller of electric vehicles. AkzoNobel has been a recommended supplier of vehicle refinish products and services to BYD in China since 2017. The new deal means that agreement will continue, while extending the partnership to serve BYD’s bodyshops and approved repairer networks worldwide.



2023 Outlook*
AkzoNobel expects the ongoing macro-economic uncertainties to continue and weigh on organic volume growth. The company will focus on margin management, cost reduction, working capital normalization and de-leveraging.

Cost reduction programs are expected to mitigate the ongoing pressure from inflation in operating expenses for 2023. AkzoNobel expects declining raw material costs to have a favorable impact on profitability.

Based on current market conditions, AkzoNobel targets to deliver €1.2 to €1.5 billion adjusted EBITDA.

The company aims to lower its leverage ratio to less than 3.4 times net debt/EBITDA, including the impact of the Kansai Paint Africa acquisition, by the end of 2023 and return to around 2 times post-2023.

*Targets are based on organic volumes and constant currencies, and assume no significant market disruptions



The report for the fourth quarter and full-year can be viewed and downloaded: https://akzo.no/Q4-2022-results

1 Constant currencies calculations exclude the impact of changes in foreign exchange rates

2 Adjusted operating income = operating income excluding identified items

3 Return on sales (ROS) is adjusted operating income as percentage of revenue



This media release covers the highlights for the quarter. We recommend reading the media release in combination with the full quarterly report. The quarterly report provides additional information, including the IAS34 condensed consolidated financial statements. ROS, adjusted OPI, adjusted EPS, EBITDA and Adjusted EBITDA are Alternative Performance Measures (APM’s). 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 AkzoNobel quarterly report.

All figures in the media release and in the AkzoNobel quarterly report are unaudited. The interim condensed consolidated financial statements were discussed and approved by the Board of Management and the Supervisory Board. These condensed financial statements have been authorized for issue.

This is a public announcement by Akzo Nobel N.V. pursuant to section 17 paragraph 1 of the European Market Abuse Regulation (596/2014).