AkzoNobel delivers 9% revenue growth in Q4 through strong pricing to address raw material headwinds

Recent highlights

Preserving sporting history

We have coated the impressive Centenario Stadium in Uruguay, which was built to host the first-ever FIFA World Cup in 1930. The stadium has just been renovated and our Inca brand provided a valuable assist by supplying 12,000 liters of paint. An important consideration was using colors that respected the essence of the original project by architect Juan Antonio Scasso. As well as coating exteriors and the stands, our products were also used in the changing rooms, the tunnel and the interior warm-up areas.

Leading the way in sustainability

In 2021, we became the first paints and coatings company to receive official validation for setting science-based sustainability targets. The commitment we’ve made – a 50% carbon reduction by 2030 (2018 baseline) – covers the full value chain and is aligned with the 1.5˚C pathway in the Paris agreement. The validation was confirmed just a few weeks before we became one of the first recipients of the Terra Carta Seal, a major new sustainability award launched at COP26. We were the only paints and coatings company to receive the honor.

Membership of Responsible Mica Initiative formalized

We formalized our membership of the Responsible Mica Initiative (RMI), having been one of the founding members when it was launched in 2017. Used in a wide range of industries, mica minerals are mined extensively in India, where a variety of factors contribute to poor working conditions, including the use of child labor. The RMI’s mission is to establish responsible and sustainable mica supply chains that are free of child labor. Following the RMI’s pilot year, we continued to focus on the issue and a commitment was made to conduct serious due diligence and look for creative ways to contribute to the initiative – which has now resulted in full membership.   

Bringing color to the community

As part of our global “Let’s Colour” program, we teamed up with a community of mural artists in Bandung, Indonesia, to paint the walls of the Saparua Sports Center. The venue is a cultural heritage hub for sports, creativity, arts and music.

Protecting a record breaker

We coated the hugely impressive Ain Dubai, the world’s highest and largest Ferris wheel. It’s now officially open to visitors, who get a stunning 360˚ view from its 48 passenger capsules. Measuring a dizzying 250 meters and featuring more than 9,000 tons of steel, we were sole supplier of protective coatings for the massive structure. The specification – from our International brand – is designed to deliver maximum protection, as well as offering outstanding color and gloss retention

World’s brightest startups join Paint the Future bootcamp

Our latest Paint the Future global startup challenge has invited 10 finalists to participate in a three-day bootcamp due to take place in Amsterdam in March 2022. They’ll meet our experts face-to-face to explore potential collaborations together. The jury-selected winners will be announced during the event’s closing ceremony. They will receive a prestigious Paint the Future award and a collaboration agreement to work together with AkzoNobel on sustainable business opportunities.

Endless powder coating possibilities

Our new Interpon W range of innovative powder on wood coatings achieved its first commercial successes in 2021. Designed for heat-sensitive substrates (both indoors and outdoors), it’s a smart system which enables a variety of heat-sensitive materials to be coated in a durable, sustainable and more efficient manner. Suitable for interior design, automotive and architecture, the product range also includes special solutions for anti-microbial surfaces and food contact.

Outlook:

AkzoNobel targets to grow at or above its relevant markets, in line with its Grow & Deliver strategy. Trends differ per region and segment, while raw material cost inflation and supply constraints are expected to gradually ease by mid-2022. Plans are in place to deliver the €2 billion adjusted EBITDA target for 2023, and an average annual 50 basis points increase in return on sales over the period 2021-2023. 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 fourth quarter and full-year 2021 can be viewed and downloaded https://akzo.no/results-2021

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 Q4FY 2021 Report. The Q4FY 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 Q4FY 2021 Report.

All figures in the media release and in the AkzoNobel Q4FY 2021 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).

About AkzoNobel

We supply the sustainable and innovative paints and coatings that our customers, communities – and the environment – are increasingly relying on. That’s why everything we do starts with People. Planet. Paint. 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 a pioneering paints company that’s committed to science-based targets and is taking genuine action to address globally relevant challenges and protect future generations.