Financial guidance

15%

Return on sales (ROS)1

Achieve return on sales (EBIT/revenue) of 15% by 2020

>25%

Return on investment (ROI)2

Achieve return on investment (EBIT/average invested capital) of more than 25% by 2020

The transformation of AkzoNobel into a focused Paints and Coatings company, including the separation of Specialty Chemicals, is progressing and the associated one-off costs are within expectations. Phase one of creating a fit-for-purpose Paints and Coatings organization (announced in October 2017) is on track to achieve €110 million savings in 2018, contributing directly towards delivering the 2020 financial guidance. Various measures to mitigate current market challenges, including increased selling prices and cost discipline, also continue to be implemented.

2017 progress

9.4%

13.9%

1 Excluding unallocated corporate center costs; assumes no significant market disruption.

2 Excluding unallocated corporate center costs and invested capital; assumes no significant market disruption.

 
2017 financial performance

Sustainability targets (including discontinued operations)

20%

Eco-premium solutions

Maintain revenue from downstream eco-premium solutions of 20% of revenue by 2020

25-30%

Carbon emissions

Reduce our carbon emissions across the value chain by 25-30% 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

2017 progress

20%

7%

106

 
2017 sustainability performance

Q1

Opened new plant in China to strengthen our global position in powder coatings, led by our Interpon brand

Q1

Invested in a new £13 million innovation hub in the UK

Q1

Partnered with SOS Children’s Villages to fight youth unemployment with the power of paint

Q2

Held investor day in London to launch our new strategy

Q2

Opened a new coatings facility in Chonburi, Thailand

Q2

Partnered with The Ocean Cleanup together with our International brand for the largest clean-up in history

Q2

Double coatings acquisition of the UK’s Flexcrete Technologies and Disa Technology in France

Q3

Announced major expansion of organic peroxides capacity in China

Q3

Opened the world’s most advanced and sustainable paint factory in Ashington, the new center of production for Dulux in the UK

Q4

All our paints and coatings production in the Netherlands is now powered by green energy

Q4

Chemical Island in Brazil expanded to support growth of Fibria, the world’s leading producer of eucalyptus pulp

Q4

Agreed to acquire the business of V.Powdertech, the leading Thai manufacturer of powder coatings