Key figures
€14.2 billion revenue
€1,502 million EBIT
€3.87 earnings per share
80+ countries
46,000 employees
Key regions (by 2016 revenue)
Whether our customers are professional decorators or keen DIY-ers, they want great paint that gives a great finish. We supply a large variety of quality products for every situation and surface, including paints, lacquers and varnishes. We also offer a range of mixing machines, color concepts and training courses for the building and renovation industry, while our specialty coatings for metal, wood and other critical building materials lead the market.
Main business operations:
Decorative Paints 2016 revenue breakdown by end-user segment
in %
Brands include Coral, Dulux, Flexa, Hammerite, Sadolin and Sikkens.
Some of our customers: consumers, paint distributors around the world and large retail outlets such as B&Q, Leroy Merlin and OBI.
We’re a leading supplier of performance coatings with strong product technologies and brands. Our high quality products are used by customers across the world to protect and enhance everything from ships, cars, aircraft, yachts and architectural components (structural steel, building products, flooring) to consumer goods (mobile devices, appliances, beverage cans, furniture) and oil and gas facilities.
Main business operations:
Performance Coatings 2016 revenue breakdown by end-user segment
in %
Brands include Awlgrip, International, Interpon and Sikkens.
Some of our customers: Airbus, Boeing, Bosch, Dell, IKEA, Mercedes-Benz, Philips, Samsung, Shell and Whirlpool.
As a major producer of specialty chemicals with leadership positions in markets such as surfactants, polymer chemistry, pulp processing and chlor-alkali, we make sure that industries worldwide are supplied with high quality ingredients and process aids for the manufacture of life’s essentials.
Main business operations:
- Functional Chemicals (including Ethylene and Sulfur Derivatives and Polymer Chemistry)
- Industrial Chemicals
- Pulp and Performance Chemicals
- Surface Chemistry
Specialty Chemicals 2016 revenue breakdown by end-user segment
in %
Brands include AkzoNobel, Biostyle, Dissolvine, Ecosel, Eka, Expancel, Jozo, Kromasil and Levasil.
Some of our customers: BASF, Bayer, Dow, GE, Huntsman, Momentive, Monsanto, P&G, Shin-Etsu, Stora Enso and Unilever.
CEO statement
“We are now a stronger, more agile company, with excellent brands, a growing global presence and a solid operational and financial foundation.”
How AkzoNobel performed
Financial guidance
9-11%
Return on sales (ROS)
Achieve return on sales (EBIT/revenue) of 9-11 percent 2016-2018
13-16.5%
Return on investment (ROI)
Achieve return on investment (EBIT/average invested capital) of 13-16.5 percent 2016-2018
2016 progress
10.6%
15.0%
Indicates a positive development
Indicates a flat/negative development
Sustainability targets
20%
Eco-premium solutions
Increase revenue from downstream eco-premium solutions to 20 percent of revenue by 2020
25-30%
Carbon emissions
Reduce our carbon emissions across the value chain by 25 to 30 percent 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
2015 progress
6%
112
Indicates a positive development
Indicates a flat/negative development
How AkzoNobel created value
Input
€7.0 billion
group equity
€2.7 billion
borrowings
€363 million
research and development expenses
Organization
€14.2 billion
revenue
€1,502 million
EBIT
€1,297 million
cash flow from operating activities
€634 million
capital expenditures
€10,266 million
invested capital at year-end
We invested in 2016 to keep our facilities in good shape, as well as expanding our manufacturing capability.
Revenue breakdown by Business Area
in %
Revenue breakdown by end-user segment
in %
Outcomes
10.6% ROS
15.0% ROI
Indicates a positive development
Indicates a flat/negative development
20%
of revenue from eco-premium solutions with customer benefits
RD&I investments have resulted in 20 percent of revenue derived from eco-premium solutions with customer benefits.
Input
40%
renewable energy
97,000 TJ
energy use
12%
renewable raw materials as % of organic materials
€0.6 billion
energy spend
9.5 million tons
upstream CO2(e) emissions
Organization
3.7 million tons
CO2(e) emissions own operations
28%
reduction in operational eco-efficiency footprint (since 2009)
143 kilotons
total waste own operations
Outcomes
23.7 million tons
CO2(e) emissions cradle-to-grave
Indicates a positive development
Indicates a flat/negative development
6%
improvement CO2(e) per ton of sales from 2012 cradle-to-grave carbon footprint
112 REI
in Resource Efficiency Index
Input
46,000
employees at year-end 2016
>300
number of projects launched through our Human Cities initiative
Organization
1.4
total reportable rate of injuries
(per million hours)
Employee and supervised contractors total reportable rate of injuries
Target: <1.0 (2020)
19%
female executives
4%
high potential turnover
Outcomes
4.17
employee engagement score
9.0 million
lives positively impacted by our Human Cities initiative
Features
Giving people that winning feeling
Discover how young people in a favela in Brazil are being inspired to play new sports, thanks to the simple but ingenious use of paint.
Bringing innovation to life
A look at how we have addressed some of the key challenges facing the food and furniture industries by developing innovative new products for our customers.
The ultimate test of performance
Setting the scene for team AkzoNobel’s involvement in the 2017-2018 Volvo Ocean Race, the world’s premier offshore sailing race.
Our businesses
“We were able to grow and improve the business”
Ruud Joosten
Member of the Executive Committee responsible for Decorative Paints
9.3% ROS
12.8% ROI
28%
of revenue from eco-premium solutions
9%
improvement CO2(e) per ton of sales from 2012 cradle-to-grave carbon footprint
“We delivered at the higher end of our performance range”
Conrad Keijzer
Member of the Executive Committee responsible for Performance Coatings
13.4% ROS
29.4% ROI
16%
of revenue from eco-premium solutions
2%
increase CO2(e) per ton of sales from 2012 cradle-to-grave carbon footprint
“All our efforts enabled us to further improve our results”
Werner Fuhrmann
Member of the Executive Committee responsible for Specialty Chemicals
13.2% ROS
17.9% ROI
19%
of revenue from eco-premium solutions
9%
improvement CO2(e) per ton of sales from 2012 cradle-to-grave carbon footprint
