Key figures

2015

 

€14.9 billion revenue

€2.1 billion EBITDA

€1.6 billion operating income

€3.95 earnings per share

80+ countries

45,600 employees

Key regions (by revenue)
 
At a glance – Key regions by revenue (worldmap)

Whether our customers are professional decorators or keen DIY-ers, they want great paint that gives a great finish. We supply a large variety of quality products for every situation and surface, including paints, lacquers and varnishes. We also offer a range of mixing machines, color concepts and training courses for the building and renovation industry, while our specialty coatings for metal, wood and other critical building materials lead the market.

The business operates three units:

Decorative Paints in 2015

Decorative Paints 2015 revenue breakdown by end-user segment
in %
Decorative Paints 2015 revenue breakdown by end-user segment (pie chart)Decorative Paints 2015 revenue breakdown by end-user segment (pie chart)

Brands include Coral, Dulux, Flexa, Hammerite, Sadolin and Sikkens.

Some of our customers: thousands of paint distributors around the world and large retail outlets such as B&Q, Leroy Merlin and OBI.

We’re a leading supplier of performance coatings with strong product technologies and brands. Our high quality products are used by customers across the world to protect and enhance everything from ships, cars, aircraft, yachts and architectural components (structural steel, building products, flooring) to consumer goods (mobile devices, appliances, beverage cans, furniture) and oil and gas facilities.

The business operates four units:

Performance Coatings in 2015

Performance Coatings 2015 revenue breakdown by end-user segment
in %
Performance Coatings 2015 revenue breakdown by end-user segment (pie chart)Performance Coatings 2015 revenue breakdown by end-user segment (pie chart)

Brands include Awlgrip, International, Interpon and Sikkens.

Some of our customers: Airbus, Boeing, Bosch, Dell, IKEA, Philips, Samsung, Shell, Toyota and Whirlpool.

As a major producer of specialty chemicals with leadership positions in many markets, we make sure that industries worldwide are supplied with high quality ingredients and process aids for the manufacture of life’s essentials.

The business operates four units:


Specialty Chemicals in 2015

Specialty Chemicals 2015 revenue breakdown by end-user segment
in %
Specialty Chemicals 2015 revenue breakdown by end-user segment (pie chart)Specialty Chemicals 2015 revenue breakdown by end-user segment (pie chart)

Brands include AkzoNobel, Bindzil, Biostyle, Dissolvine, Ecosel, Eka, Expancel, Jozo and Kromasil.

Some of our customers: BASF, Bayer, Dow, GE, Huntsman, Momentive, Monsanto, P&G, Shin-Etsu, Stora Enso and Unilever.

CEO statement

2015

“I take great pride in the fact
we continued to be successful
doing what we do best”

Dear stakeholder,

As I look back on 2015, I take great pride in the fact we continued to be successful doing what we do best – creating everyday essen­tials to make people’s lives more liveable and inspiring. This is the purpose that drives us. It sparks our creativity, gives us energy, enables us to deliver for our customers and, ultimately, generates value for our business. We’re using our key strengths – essential ingredients, essential protection and essential color – to help build a solid foundation for the next phase of the company’s strategy.

Full statement from CEO Ton Büchner

How AkzoNobel performed

2015

Strategic targets

9.0%

Return on sales (ROS)

Achieve return on sales (operating income/revenue) of 9.0 percent by 2015

14.0%

Return on investment (ROI)

Achieve return on investment (operating income/average invested capital) of 14.0 percent by 2015

<2.0

Net debt/EBITDA

Maintain net debt/EBITDA
lower than 2.0 by 2015

2015 progress

10.6%

15.0%

0.6

 
2015 financial performance in full

Strategic targets

20%

Eco-premium solutions

Increase revenue from downstream eco-premium solutions to 20 percent of revenue by 2020

25-30%

Carbon emissions

Reduce our carbon emissions across the value chain by 25 to 30 percent per ton by 2020 (2012 base)

 

Resource Efficiency Index

Monitor gross margin divided by carbon emissions across the value chain, as an indicator for resource efficiency

2015 progress

19%

3%

113

 
2015 sustainability performance in full

How AkzoNobel created value

2015

Input

€7.0 billion

group equity

€2.6 billion

borrowings

€347 million

research and development expenses

Organization

€14.9 billion

revenue

€1,573 million

operating income

€1,136 million

cash flow from operations

€651 million

capital expenditures

€9.8 billion

invested capital at year-end

We invested in 2015 to keep our facilities in good shape, as well as expanding our manufacturing capability.

Revenue breakdown by Business Area
in %
Value creation – Revenue breakdown by Business Area (pie chart)Value creation – Revenue breakdown by Business Area (pie chart)
Revenue breakdown by end-user segment
in %
Value creation – Revenue breakdown by end-user segment (pie chart)Value creation – Revenue breakdown by end-user segment (pie chart)

Outcomes

€261 million

income tax paid

€281 million

dividend paid

 

Economic value in detail

10.6% ROS

15.0% ROI

0.6 net debt
/EBITDA

19%

of revenue from eco-premium solutions

RD&I investments have resulted in 19 percent of revenue derived from eco-premium solutions with customer benefits.

 

Input

38%

renewable energy

95,000 TJ

energy use

11%

renewable raw materials as % of organic materials

€0.7 billion

energy spend

9.7 million tons

upstream CO2(e) emissions

Organization

3.8 million tons

CO2(e) emissions own operations

23%

reduction in operational eco-efficiency footprint (since 2009)

155 kilotons

total waste own operations

Outcomes

24.6 million tons

CO2(e) emissions cradle-to-grave


 

Environmental value in detail

11.1 million tons

downstream CO2(e) emissions

3%

decrease CO2(e) per ton of sales from 2012 cradle-to-grave carbon footprint

113 REI

in Resource Efficiency Index

 

Input

45,600

employees at year-end 2015

16,400

number of volunteers for Community Program projects (cumulative since 2005)

 

Organization

1.6

total reportable rate of injuries

Employee and supervised contractors total reportable rate of injuries
Target: <2.0 (2015)
Value creation – Employee and supervised contractors total reportable rate of injuries (bar chart)Value creation – Employee and supervised contractors total reportable rate of injuries (bar chart)

19%

female executives

16%

high growth markets executives

Outcomes

€2.7 billion

employee benefits
 

Social value in detail

4.03

employee engagement score

 

2,385

Community Program projects
(cumulative since 2005)

2015
2015

Essentials

We create everyday essentials to make people’s lives more liveable and inspiring

Essentials ingredients, Essentials protection, Essentials color
2015

Essentialingredients

We’re all around you and you’re probably not aware of it

…in paper

…in paper

We’re a leading global supplier of bleaching chemicals to the pulp industry and a trusted partner for customized pulp bleaching technologies and services.

Key brands – eka (brand logo)Key brands – eka (brand logo)

…on wood furniture

…on wood furniture

Our wood coatings bring color, inspiration and long-lasting beauty and protection with a wide range of stains, paints and durable finishes that add personality to your home.

Key brands – sikkens (brand logo)Key brands – sikkens (brand logo)

…on electronic devices

…on electronic devices

Our specialty finishes are used on mobile devices produced by the best-known manufacturers around the world. We supply the special colors, effects and textures.

Key brands – Interpon (brand logo)Key brands – Interpon (brand logo)
2015

Essentialprotection

We protect the things you see, touch and rely on each and every day

…on structural steel

…on structural steel

We're a leading global supplier of high performance protective coatings for steel structures that guard against corrosion, weathering and fire.

Key brands – International (brand logo)Key brands – International (brand logo)

…in insulating glass

…in insulating glass

Our liquid polysulfide polymer Thioplast G is used as a critical sealant in various applications, including insulated glass units.

Key brands – Thioplast (brand logo)Key brands – Thioplast (brand logo)

…on building exteriors

…on building exteriors

Homes and offices in warm climates can benefit from our Dulux Weathershield and Powerflexx exterior paints, which reflect the sun and keep interiors cooler.

Key brands – Dulux (brand logo)
2015

Essentialcolor

We believe in a more colorful world full of energy and inspiration

…on wood and metal

…on wood and metal

Our Sikkens brand supplies a wide range of interior and exterior woodcare products, as well as well as high performance coatings for metal surfaces.

Key brands – sikkens (brand logo)Key brands – sikkens (brand logo)

…in paint

…in paint

We’ve served the paint industry for more than 50 years with Bermocoll, a thickener, stabilizer and water retaining agent for water-based decorative paints.

Key brands – Bermocoll (brand logo)Key brands – Bermocoll (brand logo)

…on concrete floors

…on concrete floors

Our solvent-free concrete floor paints have excellent resistance properties and can help to significantly increase the lifetime of a flooring system.

Key brands – Dulux (brand logo)
2015

Creating
everyday essentials

Doing more with less

We believe that the only way to be successful in the future is to care about the future. So for us, sustainability is also about many other things, such as investing in science to accelerate new ideas.

Making cities more human

Our Human Cities program channels our three key strengths – essential ingredients, essential protection, essential color – to help energize communities and make them more liveable and inspiring.

Innovation sits at the heart of what we do

Innovation sits at the heart of what we do. Whether we’re developing new products or services, we’re focused on making life easier for our customers, as well as contributing to their success.

Our businesses

2015

We made significant progress and have the right strategy in place to continue the momentum we have built up”

Ruud Joosten
Member of the Executive Committee responsible for Decorative Paints

Decorative Paints strategy

8.6% ROS

11.7% ROI

28%

of revenue from eco-premium solutions

4%

decrease CO2(e) per ton of sales from 2012 cradle-to-grave carbon footprint
 

How Decorative Paints created value

We delivered a step change in profitability and positioned ourselves for profitable organic growth”

Conrad Keijzer
Member of the Executive Committee responsible for Performance Coatings

Performance Coatings strategy

13.3% ROS

29.4% ROI

15%

of revenue from eco-premium solutions

2%

increase CO2(e) per ton of sales from 2012 cradle-to-grave carbon footprint

How Performance Coatings created value

Our commitment to delivering essential ingredients helped drive performance and enhanced our customer focus”

Werner Fuhrmann
Member of the Executive Committee responsible for Specialty Chemicals

Specialty Chemicals strategy

12.2% ROS

17.2% ROI

17%

of revenue from eco-premium solutions

6%

decrease CO2(e) per ton of sales from 2012 cradle-to-grave carbon footprint

How Specialty Chemicals created value