Akzo Nobel N.V.

Hello, everyone. Welcome to today's Axo Nobel third quarter results for 2025. My name is Seb, and I'll be the operator for your call today. If you would like to ask a question during the Q&A session, please press star one on your telephone keypad. If you would like to withdraw from the queue, please press star two. I will now hand over to Kenny Che, head of investor relations, to begin the call. Please go ahead.

Thank you. Good morning and welcome to Axel Nobel's Investor Update for the third quarter of 2025. I'm Kenny Che, Head of Investor Relations. Today, our CEO, Greg Puglione, and CFO, Martin DeVries, will take you through our results. We'll refer to the presentation, which you can follow by webcast or download from our website at axelnobel.com. A replay of the webcast will also be made available following the event. There will be a Q&A session after the presentation. For additional information, please contact our Investor Relations team. Before we start, a reminder of our forward-looking statements disclaimer on slide two. Please note, this also applies to the conference call and answers to your questions. I will now hand over to Greg, who will start on slide three of the presentation.

Thanks, Kenny. Good morning to everyone on the call. Axel Nobel delivered a solid quarter in a weak market environment. We remain focused on the elements we control, efficiency, pricing discipline, and cash generation. and these continue to deliver results. Our adjusted EBITDA came in at €385 million, or €411 million excluding Forex translation. This corresponds to a 15.1% margin, up 30 basis points year-on-year. That's very much in line with the consensus and demonstrates our ability to expand margins despite external headwinds. Volumes were down 1% versus prior year, showing a similar pattern to Q2. DECO performed well with a return to growth of plus 1%, while coatings continued to be affected by soft markets, particularly in North America. Operationally, we achieved net OPEC savings of 63 million euros year-to-date, which is ahead of the plan. Free cash flow strengthened significantly to 244 million euros, driven by improved working capital managements. Leverage improved to 2.8 times, with year-end leverage projected slightly above 2 times on an adjusted basis, following the expected closing of the India transaction in December. Overall, we're executing with discipline and consistency towards our mid-term ambitions in a market which doesn't make it easy. Let's now turn to slide 4. Our structural efficiency programs are delivering ahead of plan and our disposal of part of our Indian activities is on track to close in Q4, as I said. As you know, we have aggressive efficiency targets in both SG&A and industrial operations. Our SG&A program is now fully implemented with annualized savings increased to at least 175 million euros, which is materially ahead of our original targets. We have already reduced our functions by 2,500 positions since the middle of last year, compared to an initial target of 2,200 positions, while maintaining business continuity and service quality. This is significant in terms of speed and impact. Our industrial program continues to progress well. Six factory closures have been announced year-to-date, including one in Q3. Consultations continue as planned, and we will deliver our target for the year. And for the disposal of part of our Indian businesses, of which the lion's share is our local decorative paints business, all necessary regulatory approvals have not been received. We completed a 5% block sale during the quarter at a favorable price, generating about €70 million in net proceeds ahead of the main transaction with JSW. We expect closing in December with proceeds to be used as planned, 500 million euros for deleveraging and 400 million euros for the share buyback, which will start in January. Together, these actions are unlocking cost efficiencies and simplifying our footprint while maintaining strong service levels. Our organization is becoming more agile, purposeful and impactful, which positions us to deliver sustainability, sorry, improved performance. Let's now turn to slide five and talk about the volume development in Q3. Group volumes were down 1% year-on-year in Q3 with mixed performance between DECO and coatings. DECO delivered a solid quarter with volumes up 1% overall. Europe, Middle East, and Africa was flattish with continued weakness in France and Turkey, offset by growth in Southern Europe. Latin America grew low single digits, led by Brazil, where the recovery continues after a slow start to the year. China delivered mid-single-digit growth, confirming our relative outperformance in a weak market. Southeast Asia remained mixed, with strong growth in Vietnam more than offsetting softer demand in Indonesia. So our deco businesses, which are mostly local businesses, are doing well. Our global businesses and coatings, We have volumes overall in coatings down 2% for the quarter year on year, primarily due to the weakness of the North American market. Caliber was impacted by low architectural demand, although Asia is regaining momentum. Marine and protective continue to grow as we execute on a strong pipeline in protective, while ongoing share gains in marine MRO are adding further momentum. Automotive and specialty was lower overall, with aerospace strong, but refinished soft, as North America remains a trough, while Europe demand in vehicle refinished was under pressure. Industrial coatings declined mid-single digits, as a drop in packaging and wood more than offset growth in coil. While market conditions remain challenging overall, our outperformance in selected markets shows that we are holding up and defending our positions. Martin will now provide an update of our financials on slide six. Martin.