AkzoNobel
Report for the fourth quarter and full-year 2021
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Highlights
Q4 2021 (compared with Q4 2020)
" Pricing up 12.5%; December pricing up 14%
" Revenue up 9% and 7% higher in constant currencies. Compared with Q4 2019, revenue was up 12% in constant currencies
" Volumes 6% lower, flat compared with Q4 2019
" Operating income at ¬205 million (2020: ¬243 million)
" Adjusted operating income at ¬209 million (2020: ¬294 million)
despite raw material and other variable costs increases of
¬325 million
" ¬1 billion share buyback completed in January 2022
" ¬500 million share buyback announced, to be completed by
Q1 2023
Full-year 2021 (compared with full-year 2020)
" Pricing up 7%
" Revenue up 12% and 14% higher in constant currencies.
Compared with 2019, revenue up 9% in constant currencies
" Operating income up 16% at ¬1,118 million (2020: ¬963 million)
" Adjusted operating income at ¬1,092 million (2020: ¬1,099 million)
despite raw material and other variable costs increases of
¬769 million
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.
Alternative performance measures (APM)
AkzoNobel uses APM adjustments to 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 tables on pages 16 and 17.
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 1.5ÚC 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.
AkzoNobel
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Report for the fourth quarter and full-year 2021
