Decorative Paints value creation summary 2016

As a leading global supplier of decorative paints, our brands are crucial to our success. Our Decorative Paints activities are fully focused on the Buildings and Infrastructure end-user segment, serving both consumers and professional painters. In order to create more economic, environmental and social value, our innovation is geared towards reducing our upstream and downstream supply chain impact by changing formulations to water-based technology.

Many of our brands are household names and we work closely with local communities via a series of national and international initiatives, some of which involve volunteer support from our employees. The aim is to benefit the creation of more social value.

All these initiatives are designed to play a role in contributing to our financial performance and enable us to deliver more economic value for our investors.

  • Economic value
  • Environmental value
  • Social value

Organization

Revenue breakdown by business unit in %

Decorative Paints – Value creation – Revenue breakdown by business unit (pie chart)Decorative Paints – Value creation – Revenue breakdown by business unit (pie chart)

Revenue breakdown by end-user segment in %

Decorative Paints – Value creation – Revenue breakdown by end-user segment (pie chart)Decorative Paints – Value creation – Revenue breakdown by end-user segment (pie chart)

Revenue development in % versus 2015

Decorative Paints – Value creation – Revenue development (bar chart)Decorative Paints – Value creation – Revenue development (bar chart)

Outcomes

9.3% ROS

12.8% ROI

28%

of revenue from eco-premium solutions

RD&I investments have resulted in 28 percent of revenue derived from eco-premium solutions with customer benefits.

Eco-premium solutions with customer benefits
% of revenue

Decorative Paints – Value creation – Eco-premium solutions with customer benefits (bar chart)Decorative Paints – Value creation – Eco-premium solutions with customer benefits (bar chart)

Indicates a positive development
Indicates a flat/negative development

Organization

2.4 million tons

upstream CO2(e) emissions

1,800 TJ

energy use

We continue to improve efficiency by reducing our energy use per ton of production, and are working towards improving our share of renewable energy. We continue to improve the environmental footprint of our operations by focusing on operational eco-efficiency.

0.1 million tons

CO2(e) emissions own operations

32 kilotons

total waste

Outcomes

1.2 million tons

downstream CO2(e) emissions

3.7 million tons

CO2(e) emissions cradle-to-grave

9%

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

Indicates a positive development
Indicates a flat/negative development

Organization

14,700

employees at year-end 2016

1.2

total reportable rate of injuries
(per million hours)

Employee safety is a key priority and we are actively driving towards a reduction in the number of incidents.

Total reportable rate of injuries
per million hours worked

Decorative Paints – Value creation – Total reportable rate of injuries (bar chart)Decorative Paints – Value creation – Total reportable rate of injuries (bar chart)

Outcomes

€622 million

employee benefits

4.21

employee engagement score

We highly value, and actively work on improving, employee engagement. We’re investing in training and development and continue to work on achieving a more diverse workforce.

3.8 million

lives positively impacted by our “Let’s Colour” program

1,577

people trained as painters

We participate in community programs and local sponsorships.