Glossary

Basic earnings per share from continuing operations excluding incidentals in operating income, amortization of intangible assets and tax on these adjustments.

American depositary receipt.

is defined as the change in revenue attributable to changed volumes and selling prices. It excludes effects from currency and acquisition and divestment.

Behavior-based safety.

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

Our Code of Conduct defines our company values and how we work. It incorporates fundamental principles on issues such as business integrity, labor relations, health, safety, environment and security and community involvement.

The Code of Conduct incidents handled by to the Corporate Compliance Committee will cover competition law, bribery, export control, insider trading or auditing matters; or involve a senior member of corporate staff, business teams or local management; or have a value greater than €0.1 million.

AkzoNobel’s global Community Program encourages and gives financial support for employees to get involved, hands-on, in their local communities.

is the change in equity during a period resulting from transactions and other events other than those changes resulting from transactions with shareholders in their capacity as shareholders.

The Cradle to Cradle concept encourages the creation of products for cradle-to-cradle cycles, whose materials are perpetually circulated in closed loops.

The Dow Jones Sustainability Index tracks the performance of the global sustainability leaders. The top 10 percent of the 2,500 largest companies in the Dow Jones Global Indexes, rated by sustainability performance, are selected as components of DJSI.

Net income attributable to shareholders divided by the weighted average number of common shares outstanding during the year.

Operating income before incidentals.

Operating income or EBIT as percentage of revenue and can refer to margins both before and after incidentals.

EBIT before depreciation and amortization and refers in this report to EBITDA before incidentals.

EBITDA divided by the sum of financing income and expenses.

EBITDA as percentage of revenue.

Eco-efficiency means doing more for less: creating goods and services while using fewer resources and creating less waste and pollution.

A measure of the eco-efficiency of our products. An eco-premium solution is significantly better than competing offers in the market in at least one eco-efficiency criterion (toxicity, energy use, use of natural resources/raw materials, emissions and waste, land use, risks), and not significantly worse in any other criteria.

Europe, Middle East and Africa.

Czech Republic, Estonia, Hungary, Poland, Romania, Russian Federation, Slovenia, Turkey and Ukraine.

We report emissions to air, land and water for those substances which may have an impact on people or the environment: CO₂, NO_x and SOx, VOCs, chemical oxygen demand, hazardous and non-hazardous waste. Definitions are in the Sustainability facts and figures section.

Economic value created in relation to invested capital during the period of three consecutive years. This measure is used to encourage EVA performance over a longer period of time.

Calculated by deducting from net operating profit after taxes (NOPAT) a capital charge representing the cost of capital.

Greenhouse gases.

Incidentals are special charges and benefits, results on acquisitions and divestments, restructuring and impairment charges, and charges related to major legal, antitrust, and environmental cases. EBIT and EBITDA before incidentals are key figures management uses to assess the company’s performance, as these figures better reflect the underlying trends in the results of the activities.

Operating Income divided by net financing expenses.

Total assets (excluding cash and cash equivalents, investments in associates, assets held for sale) less current income tax payable, deferred tax liabilities and trade and other payables.

Used to map the carbon footprint of our businesses. Key value chains are product groupings with similar footprint characteristics, which are representative of the majority of total BU revenue/production.

Loss of containment is an indicator we use to monitor the integrity of our assets. We have defined four levels to indicate the level of loss, from small, on-site spill to Level 4 – a significant emission of a toxic/hazardous material.

Comprise of Western Europe, the US, Canada, Japan and Oceania.

is calculated as EBIT of the last 12 months divided by average invested capital.

We do not report specific natural resource use, except water. We do report our use of energy and wastes from our operations, and indicate the main raw materials used in our products.

is defined as long-term borrowings plus short-term borrowings less cash and cash equivalents.

Net income attributable to shareholders of Akzo Nobel N.V.

Operating income is defined in accordance with IFRS and includes the relevant incidental charges.

is calculated as EBIT before amortization of the last 12 months divided by average invested capital excluding intangible assets.

Operating working capital is defined as the sum of inventories, trade receivables and trade payables in the Business Areas. When expressed as a ratio, operating working capital is measured against four times last quarter revenue.

Operational eco-efficiency is the eco-efficiency of our manufacturing operations. Our aim is to improve the operational eco-efficiency by reducing the resources used and emissions/waste from our sites during the manufacture of our products.

The Performance & Development Dialog (P&D Dialog) is AkzoNobel’s global performance and appraisal system for employees.

The sum of net income attributable to shareholders of Akzo Nobel N.V. and the income attributable to non-controlling interests.

Research, Development and Innovation.

Revenue consists of sales of goods, services and royalty income.

We have defined three levels of serious incident. The highest category – Level 3 – involves any loss of life; more than five serious injuries; environmental, asset or business damage totaling more than €25 million; inability to maintain business; or serious reputation damage to AkzoNobel stakeholders.

Akzo Nobel N.V. shareholders’ equity divided by the number of common shares outstanding at December 31.

Talent Factory describes our ambition to be recognized as a company which offers opportunities to its people for ongoing learning, development and growth.

The total reportable rate is the number of injuries per million hours worked. Full definitions are in the Sustainability facts and figures section.

Used to compare the performance of different companies’ stocks and shares over time. It combines share price appreciation and dividends paid to show the total return to the shareholder. The relative TSR position reflects the market perception of overall performance relative to a reference group.