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." 

AkzoNobel in € millions	Q1 2018	Q1 2019	Delta%	Delta% CC3
Revenue	2,176	2,185	-%	1%
Adjusted operating income1	149	163	9%
ROS excluding unallocated costs2	8.7%	9.1%

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