From the Sector

Highlights Q4 2023 (compared with Q4 2022)

• Revenue in constant currencies up 4% on higher volumes and pricing (reported revenue -3%)
• Operating income improved to €214 million (2022: €103 million)
• Adjusted operating income at €221 million (2022: €126 million); ROS at 8.7% (2022: 4.8%); €244 million before €23 million negative impact from hyperinflation accounting
• Net cash from operating activities positive €574 million (2022: €291 million)

Highlights full-year 2023 (compared with full-year 2022)

• Revenue in constant currencies up 5% driven by pricing (reported revenue -2%)
• Operating income improved to €1,029 million (2022: €708 million)
• Adjusted operating income at €1,074 million (2022: €789 million), despite €77 million adverse
• currency effects from translation; ROS at 10.1% (2022: 7.3%)
• Adjusted EBITDA at €1,429 million (2022: €1,157 million), despite €92 million adverse currency
• effects from translation
• Net cash from operating activities positive €1,126 million (2022: €263 million)
• Net debt to EBITDA leverage ratio improved to 2.7 (2022: 3.8)
• Final dividend proposed of €1.54 per share (2022: €1.54)

Outlook mid-term
For the mid-term, AkzoNobel aims to expand profitability to deliver an adjusted EBITDA margin of above 16% and a return on investment between 16% and 19%, underpinned by organic growth and industrial excellence. The company aims to lower its leverage to around 2 times in the mid-term, while remaining committed to retaining a strong investment grade credit rating.