Performance Coatings value creation summary 2016

Our Performance Coatings businesses serve all four end-user segments, supplying high performance coatings primarily to business-to-business customers. We are increasingly incorporating low energy processes and working to reduce our across the value chain. Innovation is also key to our product development, which is often highly technical in order to meet strict customer specifications.

Particular emphasis is placed on supplying products that offer environmental benefits for our customers. The aim is to help us create economic, environmental and social value. We continue to be committed to safety, as well as our talent development programs and our contribution to various community activities.

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 %

Performance Coatings – Value creation – Revenue breakdown by business unit (pie chart)Performance Coatings – Value creation – Revenue breakdown by business unit (pie chart)

Revenue breakdown by end-user segment in %

Performance Coatings – Value creation – Revenue breakdown by end-user segment (bar chart)Performance Coatings – Value creation – Revenue breakdown by end-user segment (bar chart)

Revenue development in % versus 2015

Performance Coatings – Value creation – Revenue development (bar chart)Performance Coatings – Value creation – Revenue development (bar chart)

Outcomes

13.4% ROS

29.4% ROI

16%

of revenue from eco-premium solutions

RD&I investments have resulted in 16 percent of revenue derived from eco-premium solutions with customer benefits.

Eco-premium solutions with customer benefits
% of revenue

Performance Coatings – Value creation – Eco-premium solutions with customer benefits (bar chart)Performance Coatings – Value creation – Eco-premium solutions with customer benefits (bar chart)

Indicates a positive development
Indicates a flat/negative development

Organization

3.9 million tons

upstream CO2(e) emissions

4,500 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.

0.2 million tons

CO2(e) emissions own operations

53 kilotons

total waste

Outcomes

7.4 million tons

downstream CO2(e) emissions

11.6 million tons

CO2(e) emissions cradle-to-grave

2%

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

Indicates a positive development
Indicates a flat/negative development

Organization

19,700

employees at year-end 2016

1.5

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

Performance Coatings – Value creation – Total reportable rate of injuries (bar chart)Performance Coatings – Value creation – Total reportable rate of injuries (bar chart)

Outcomes

€985 million

employee benefits

4.12

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.

We participate in community programs and local sponsorships.

Carbon footprint

The carbon footprint of a product is the total amount of greenhouse gas (GHG) emissions caused during a defined period, of the product lifecycle. It is expressed in terms of the amount of carbon dioxide equivalents CO2(e) emitted.