AkzoNobel's Q1 results show progress towards 15 by 20 strategy, despite headwinds from higher raw material costs and macro-economic uncertainty

April 24, 2019

Akzo Nobel N.V. (AKZA; AKZOY) publishes results for first quarter 2019

• Adjusted operating income¹ 9% higher at €163 million
  • Raw material Inflation continued; variable costs €77 million higher
  • Ongoing pricing initiatives resulted in price/mix up 6%
  • Cost-saving programs delivered €38 million
  • Volumes lower due to value over volume strategy
• ROS², excluding unallocated costs, increased to 9.1% (2018: 8.7%)
  • Decorative Paints continued good momentum in seasonally low quarter
  • Automotive and Specialty Coatings impacted by order pattern
• On track to return a total of €6.5 billion to shareholders
• €639 million cash payments to main UK pension plans

AkzoNobel CEO, Thierry Vanlancker, commented:
"We're encouraged by the underlying business performance during this seasonally low quarter. Our pricing initiatives and cost-saving programs resulted in 9% higher profit and return on sales up at 9.1%. 

"Decorative Paints demonstrated good momentum and all Performance Coatings businesses increased profitability, apart from Automotive and Specialty Coatings which was impacted by order pattern.  

"Our transformation plans for creating a more fit-for-purpose organization are on track and delivered savings of €38 million during the quarter. We're maintaining our focus as we continue to deliver towards our Winning together: 15 by 20 strategy." 

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The report for the first quarter 2019 can be viewed and downloaded at http://akzo.no/Q12019Report

1 Adjusted operating income = operating income excluding identified items (previously called EBIT)
2 ROS excluding unallocated costs is adjusted operating income as a percentage of revenue excluding unallocated corporate center costs
3 Constant Currencies calculations exclude the impact of changes in foreign exchange rates

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
AkzoNobel has a passion for paint. We're experts in the proud craft of making paints and coatings, setting the standard in color and protection since 1792. Our world class portfolio of brands - including Dulux, International, Sikkens and Interpon - is trusted by customers around the globe. Headquartered in the Netherlands, we are active in over 150 countries and employ around 34,500 talented people who are passionate about delivering the high-performance products and services our customers expect.

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