AkzoNobel delivers 6% revenue growth in Q3; pricing initiatives in place to offset raw material headwinds by end of 2021

Recent highlights

Bright Skies unveiled as Color of the Year 

An airy light blue has been revealed as our 2022 Color of the Year. The stunning collection of colors will inspire interior design and surfaces for the aerospace, automotive and consumer electronics markets. According to our trend research, what people need most is a breath of fresh air. That theme is reflected in Bright Skies – an incredibly versatile shade also showcased in our ColorSurfaces E17 coatings collection.

“Let’s Colour” hits new heights

The stunning Pão de Açúcar cable car in Rio de Janeiro, Brazil, was the spectacular location for one of our most recent “Let’s Colour” projects. Colorful paintings of plants and animals were added to the three cable car stations, which are used to take visitors to the top of Sugarloaf Mountain. Artist Bruno Big used 540 liters of our Coral paint to bring the surface of the stations to life. The designs help to portray the incredible biodiversity of the surrounding landscape and reflect the importance of raising environmental awareness.

SBTi approves carbon reduction target

Our commitment to setting science-based sustainability targets has been officially validated by the Science Based Targets initiative (SBTi) – confirming AkzoNobel as the first paints and coatings company to receive this endorsement. We’ve also restated our carbon reduction target across the whole value chain and increased it to 50% by 2030 (baseline 2018). This brings it in line with the company’s carbon reduction ambition in its own operations.

Partnership with Mercedes-Benz extended in China and Indonesia

We’ve agreed to extend our partnership agreement with Mercedes-Benz for another four years. It means the company will continue to be a recommended supplier of vehicle refinish products and services in China and a preferred partner in Indonesia. The deal was confirmed after extensive testing and analysis of the product assortments and services provided by AkzoNobel’s premium Sikkens brand.

Four Chinese startups win Paint the Future collaboration opportunity

Four startups have been invited to collaborate with AkzoNobel on their innovative solutions after being announced as the winners of our recent Paint the Future China startup challenge. The announcement was made at the end of a two-day accelerator event, which brought 17 finalists together with 30 AkzoNobel experts for face-to-face discussions about collaborative opportunities that could potentially push the boundaries of the paints and coatings industry.

Consumer Electronics business recognized by Dell Technologies

Our Consumer Electronics business recently received an award from Dell for helping them on their journey from solvent-based to water-based technology. We supply Dell with durable, water-based basecoat and clearcoat technologies for the various plastic and metal substrates used in their devices. The cutting-edge, low VOC formulation is an ideal eco-friendly alternative. 

Outlook:

AkzoNobel targets to grow at least in line with its relevant markets. Trends differ per region and segment, with significant raw material cost inflation and supply constraints expected to continue through mid-2022. Margin management and cost discipline are in place to deliver an average annual 50 basis points increase in return on sales over the period 2021-2023. The company is confident in the €2 billion EBITDA target for 2023, in line with its Grow & Deliver strategy. AkzoNobel targets a leverage ratio of 1-2 times net debt/EBITDA and commits to retain a strong investment grade credit rating.

The report for the third quarter 2021 can be viewed and downloaded at https://akzo.no/Q32021-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; ROS excluding unallocated cost was reported in relation to the Winning together: 15 by 20 strategy and is no longer reported

This media release covers the highlights for the quarter. We recommend reading the media release in combination with the full AkzoNobel Q3 2021 Report. The Q3 2021 Report provides additional information, including the IAS34 condensed consolidated financial statements.

ROS, adjusted OPI and adjusted EPS 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 Q2 2021 Report.

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

About AkzoNobel

We’ve been pioneering a world of possibilities to bring surfaces to life for well over 200 years. As experts in making coatings, there’s a good chance you’re only ever a few meters away from one of our products. Our world class portfolio of brands – including Dulux, International, Sikkens and Interpon – is trusted by customers around the globe. We’re active in more than 150 countries and have set our sights on becoming the global industry leader. It’s what you’d expect from the most sustainable paints company, which has been inventing the future for more than two centuries.