From the Sector

Shareholders voted to approve the resolutions presented at AkzoNobel’s virtual Annual General Meeting (AGM), including a final dividend of €1.54 per share, on the 22nd of April 2022.

All shareholders were able to attend and vote virtually, while questions could be asked live during the meeting, in addition to those that had been submitted in advance.

CFO Maarten de Vries was reappointed as a member of the Board of Management for a second four-year term. Mr. Nils Smedegaard Andersen and Mr. Byron Grote were reappointed as members of the Supervisory Board. Mr. Andersen was reappointed for a second four-year term and will continue as Chairman of the Supervisory Board. Mr. Grote was reappointed for a third term of two years.

The nominations of Mrs. Ester Baiget and Mr. Hans van Bylen to the Supervisory Board were also approved by the shareholders.

Highlights Grow & Deliver (compared with Q1 2021)

• Revenue up 12% and 10% higher in constant currencies¹, driven by strong pricing (up 17%)
• ROS² at 9.1% (2021: 13.6%), resulting from continued raw material and freight costs inflation and 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 income³ at €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)

¹ Constant currencies calculations exclude the impact of changes in foreign exchange rates
² Return on sales (ROS) is adjusted operating income as percentage of revenue
³ Adjusted operating income = operating income excluding identified items

See attached document for full report.

Less than 24 hours after winning Paint the Future awards, three startups have already signed their letters of intent to continue working together on sustainable business opportunities with AkzoNobel.

It’s the next step of a continuing collaborative innovation journey. The startups had the opportunity to explore their solutions with their mentors and industry experts through each phase of the global startup challenge, including an intense three-day bootcamp. Now having signed the letters of intent, they will develop their solutions even further with AkzoNobel.

“The winning startups are joining our go-to-market acceleration program, connecting them to a global network of people and resources,” says Menno van der Zalm, Director of the AkzoNobel Incubator. “Over the next six months, we’ll work together to validate their solutions for our customers and develop a joint value case.”

The following three solutions won over the international jury of experts and business leaders:

• Winner: SolCold
  The solution from Israeli startup SolCold is a sustainable self-cooling coating based on anti-Stokes. It uses the sun’s energy to keep the inside temperature much cooler without having to use any electricity.
• Winner: Aerones
  Latvian startup Aerones brings a robotic solution to wind turbine maintenance. Their crawling robot allows technicians to safely and efficiently perform inspections, cleaning and repairs at height.
• Winner: SprayVision
  From the Czech Republic, SprayVision brings a data-driven approach to optimizing spray application of paint, offering customers full control over the process. The solution helps to reduce environmental impact by saving material and improving quality.