Our results at a glance

Q3:

  • Volumes 2% higher overall, driven by Decorative Paints and Performance Coatings while flat for Specialty Chemicals despite significant global supply chain disruptions
  • Revenue up 1%, mainly due to volume growth and acquisitions, partly offset by adverse currency effects
  • EBIT at €383 million (2016: €442 million), impacted by unfavorable currencies, temporary disruption to the manufacturing and supply chain, continued headwinds for Marine and Protective Coatings and margin pressure from raw material cost inflation
  • Operating income at €338 million (2016: €454 million), adversely impacted by identified items, mainly related to the separation of Specialty Chemicals
  • ROS at 10.6% (2016: 12.3%); ROI at 14.2% (2016: 15.2%)
  • Net income attributable to shareholders at €216 million (2016: €285 million)
  • Adjusted EPS at €1.07 (2016: €1.20)
  • Net cash inflow from operating activities at €416 million (2016: €600 million)
  • Interim dividend up 51% to €0.56 per share (2016: €0.37)

Creating two focused high-performing businesses:

  • Initiating phase one of transformation plan to create a fit for purpose Paints and Coatings organization to deliver €110 million savings in 2018, contributing towards the 2020 financial guidance
  • New management structure for Paints and Coatings
  • Extraordinary General Meeting (EGM) to be held on November 30, 2017
  • 1 billion special cash dividend as advance proceeds to be paid on December 7, 2017, following shareholder approval for the separation
  • Separation of Specialty Chemicals on track to be completed by April 2018
  • AkzoNobel #1 in the Chemicals Industry Group on the Dow Jones Sustainability Index, for the fifth time in six years

Outlook:

We anticipate positive developments for EMEA (excluding the UK), North America and Asia, while Latin America is expected to stabilize.

Industry specific headwinds continue, including higher raw material prices and challenges for marine and protective coatings.

We are implementing various measures to mitigate current market challenges, including increased selling prices and additional cost control.

EBIT for 2017 is now expected to be in line with 2016, due to ongoing industry specific headwinds and supply chain disruptions.

Summary of financial outcomes

Third quarter

 

January-September

2016

2017

∆%

in € millions

2016

2017

∆%

*

ROS% = EBIT/Revenue. Moving average ROI (in %) = 12 months EBIT/12 months average invested capital

3,600

3,624

1

Revenue

10,741

11,070

3

442

383

(13)

EBIT

1,267

1,220

(4)

454

338

(26)

Operating income

1,302

1,155

(11)

12.3

10.6

 

ROS% *

11.8

11.0

 

12.6

9.3

 

OPI margin%

12.1

10.4

 

 

 

 

 

 

 

 

 

 

 

Average invested capital

10,084

10,227

 

 

 

 

Moving average ROI (in %) *

15.2

14.2

 

 

 

 

 

 

 

 

128

137

 

Capital expenditures

403

406

 

600

416

 

Net cash from operating activities

717

441

 

 

 

 

Net debt

1,119

1,691

 

 

 

 

 

 

 

 

285

215

(25)

Net income from continuing operations

838

757

(10)

1

 

Net income from discontinued operations

(1)

 

285

216

(24)

Net income attributable to shareholders

837

757

(10)

1.13

0.86

 

Earnings per share from total operations (in €)

3.34

3.01

 

1.20

1.07

(11)

Adjusted earnings per share (in €)

3.50

3.48

(1)

 

 

 

Number of employees

45,800

46,100