Key figures

2016

 

€14.2 billion revenue

€1,502 million EBIT

€3.87 earnings per share

80+ countries

46,000 employees

Key regions (by 2016 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.

Main business operations:

Decorative Paints in 2016

Decorative Paints 2016 revenue breakdown by end-user segment
in %
Decorative Paints 2016 revenue breakdown by end-user segment (pie chart)Decorative Paints 2016 revenue breakdown by end-user segment (pie chart)

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

Some of our customers: consumers, 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.

Main business operations:

Performance Coatings in 2016

Performance Coatings 2016 revenue breakdown by end-user segment
in %
Performance Coatings 2016 revenue breakdown by end-user segment (pie chart)Performance Coatings 2016 revenue breakdown by end-user segment (pie chart)

Brands include Awlgrip, International, Interpon and Sikkens.

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

As a major producer of specialty chemicals with leadership positions in markets such as surfactants, polymer chemistry, pulp processing and chlor-alkali, we make sure that industries worldwide are supplied with high quality ingredients and process aids for the manufacture of life’s essentials.

Main business operations:


Specialty Chemicals in 2016

Specialty Chemicals 2016 revenue breakdown by end-user segment
in %
Specialty Chemicals 2016 revenue breakdown by end-user segment (pie chart)Specialty Chemicals 2016 revenue breakdown by end-user segment (pie chart)

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

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

CEO statement

2016

“We are now a stronger, more agile company, with excellent brands, a growing global presence and a solid operational and financial foundation.”

Full statement from CEO Ton Büchner

How AkzoNobel performed

2016

Financial guidance

9-11%

Return on sales (ROS)

Achieve return on sales (EBIT/revenue) of 9-11 percent 2016-2018

13-16.5%

Return on investment (ROI)

Achieve return on investment (EBIT/average invested capital) of 13-16.5 percent 2016-2018

 

2016 progress

10.6%

15.0%

Indicates a positive development
Indicates a flat/negative development

 
2016 financial performance in full

Sustainability 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)

REI

Resource Efficiency Index

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

2015 progress

6%

112

Indicates a positive development
Indicates a flat/negative development

How AkzoNobel created value

2016

Input

€7.0 billion

group equity

€2.7 billion

borrowings

€363 million

research and development expenses

Organization

€14.2 billion

revenue

€1,502 million

EBIT

€1,297 million

cash flow from operating activities

€634 million

capital expenditures

€10,266 million

invested capital at year-end

We invested in 2016 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

€285 million

income tax paid

€336 million

dividend paid

Economic value in detail

10.6% ROS

15.0% ROI


Indicates a positive development
Indicates a flat/negative development

20%

of revenue from eco-premium solutions with customer benefits

RD&I investments have resulted in 20 percent of revenue derived from eco-premium solutions with customer benefits.

 

Input

40%

renewable energy

97,000 TJ

energy use

12%

renewable raw materials as % of organic materials

€0.6 billion

energy spend

9.5 million tons

upstream CO2(e) emissions

Organization

3.7 million tons

CO2(e) emissions own operations

28%

reduction in operational eco-efficiency footprint (since 2009)

143 kilotons

total waste own operations

Outcomes

10.5 million tons

downstream CO2(e) emissions

Environmental value in detail

23.7 million tons

CO2(e) emissions cradle-to-grave


Indicates a positive development
Indicates a flat/negative development

6%

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

112 REI

in Resource Efficiency Index

 

Input

46,000

employees at year-end 2016

>300

number of projects launched through our Human Cities initiative

 

Organization

1.4

total reportable rate of injuries
(per million hours)

Employee and supervised contractors total reportable rate of injuries
Target: <1.0 (2020)
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

4%

high potential turnover

Outcomes

€2.7 billion

employee benefits
 

Social value in detail

4.17

employee engagement score

 

9.0 million

lives positively impacted by our Human Cities initiative

2016
2016

 

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

2016

Features

Giving people that winning feeling

Discover how young people in a favela in Brazil are being inspired to play new sports, thanks to the simple but ingenious use of paint.

Bringing innovation to life

A look at how we have addressed some of the key challenges facing the food and furniture industries by developing innovative new products for our customers.

The ultimate test of performance

Setting the scene for team AkzoNobel’s involvement in the 2017-2018 Volvo Ocean Race, the world’s premier offshore sailing race.

2016

AkzoNobel supporting the
UN Sustainable Development Goals

The 17 UN Sustainable Development Goals are a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity.

Read more

Our businesses

2016

“We were able to grow and improve the business”

Ruud Joosten
Member of the Executive Committee responsible for Decorative Paints

Decorative Paints strategy

9.3% ROS

12.8% ROI

28%

of revenue from eco-premium solutions

9%

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

How Decorative Paints created value

“We delivered at the higher end of our performance range”

Conrad Keijzer
Member of the Executive Committee responsible for Performance Coatings

Performance Coatings strategy

13.4% ROS

29.4% ROI

16%

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

“All our efforts enabled us to further improve our results”

Werner Fuhrmann
Member of the Executive Committee responsible for Specialty Chemicals

Specialty Chemicals strategy

13.2% ROS

17.9% ROI

19%

of revenue from eco-premium solutions

9%

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

How Specialty Chemicals created value