Akzo Nobel N : 2021 Annual Report

REPORT

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Grow & Deliver strategy on track

Our commitment to future generations: People. Planet.

Paint.

Science-based sustainability targets driving innovation

Pushing boundaries with Paint the Future

Everything we do starts with People. Planet. Paint.

Transforming our world

We're in a unique position to show how passionately we care about society, the world we live in and making new discoveries. By using our pioneering spirit and centuries of paints and coatings expertise, we can deliver the sustainable and innovative solutions that our customers, communities

- and the planet - are increasingly relying on.

That's why everything we do starts with People. Planet. Paint. It's all about making a difference, both big and small. So the things our products can do may surprise you, whether they're applied to boats, buildings, cars, planes, phones, walls or wood.

And we never stand still. Because there are industries to reinvent, environments to care for and horizons to expand. As global pioneers, it's in our nature to keep learning, keep discovering and keep innovating.

People. Planet. Paint.

A commitment to the future

AkzoNobel has a long and proud heritage. A history of making things happen.

We're always evolving, embracing new ideas. Yet some things never change. Like being an employer of choice. A responsible global citizen. A pioneer. They're the foundations of what we stand for - with People. Planet. Paint. as our beating heart.

People. Planet. Paint. is also our commitment to future generations. A promise that we'll keep innovating to address key global issues. If we can, we'll find a way.

We have the courage and the belief. That's why we've set ourselves science-based sustainability targets. It's about making a genuine and lasting difference and remaining at the forefront of

our industry.

People	We care about people and communities, a passion that's reflected in
	our commitment to safety, integrity and sustainability.
Planet	We challenge ourselves and our partners every day to be better
	global citizens and protect the future of our planet.
Paint	We keep pushing boundaries to develop pioneering paint solutions
www.akzonobel.com	that make a world of difference.

AkzoNobel Report 2021

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2021 RESULTS AT A GLANCE

Revenue by destination

North America

12%

Financial summary €9,587 mln revenue €1,118 mln operating income

€1,092 mln adjusted operating income €4.48 earnings per share

32,800 employees

EMEA

50%

Sustainable solutions

39%

Ambition 2030: >50%

Sustainable solutions development in % of revenue

	>50
39
2021	2030 ambition

South America

8%

Adjusted EBITDA

€1,436 mln

Target: €2 billion in 2023

Adjusted EBITDA development in € millions

1,3411,4421,436

201920202021

2 AkzoNobel Report 2021

North Asia

18%

South Asia Pacific

12%

CONTENTS

About AkzoNobel	Inside cover
2021 results at a glance	2
CEO statement	4
How we created value	6
Strategy and operations	12
Sustainability statements	29
Leadership and governance	55
Financial information	90
Glossary	150
Index	152
Appendix	153
Case studies:
Voyage of discovery	10
Bringing light to the darkness	19
Building more resilience	46
Circular vision becoming a reality	54
Art Foundation's 25th anniversary	79

									Disclaimer
									This PDF of AkzoNobel's annual report is derived from the official version of the
									company's Report 2021. The European Single Electronic Filing format (the ESEF
									reporting package) is the official version. The ESEF reporting package is available
									on our Report 2021 website. In case of discrepancies between this PDF version
									and the ESEF reporting package, the latter prevails. The auditor's report and
									assurance report of the independent auditor included in this PDF version relate
									only to the ESEF reporting package.
Return on sales (ROS)			Return on investment (ROI)	Case study videos
		This Report 2021 includes case
										studies that highlight some of our
										activities during the year. The videos
11.4%				16.0%			are not covered by any procedures
					of the management report.
										performed by the independent
										auditor and are not considered part
Target: Deliver an average annual 50 basis points				Alternative performance
			measures (APM)
increase over the period 2021-2023						AkzoNobel uses APM adjustments
					to the IFRS measures to provide
										supplementary information on the
										reporting of the underlying develop-
										ments of the business. APM include,
Return on sales development			Return on investment development	but are not limited to, adjusted
		operating income, (adjusted) EBITDA,
in %			in %			adjusted earnings per share, ROS
				and ROI. A reconciliation of the
										alternative performance measures
										to the most directly comparable
									16.0	IFRS measures can be found in
			12.9					16.1
				14.1	Note 4 of the Consolidated financial
					11.4				statements.
	10.7

2019

2020

2021

2019

2020

2021

AkzoNobel Report 2021

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