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Note 8: Employees

[...] in light of the business context. Capability building We are focused on building the functional and leadership capabilities needed to support sustainable, profitable growth. During 2017, we identified the required competencies for our key commercial roles and simplified and updated the competency and development frameworks for Communications, Finance, Human Resources, Research, Development and Innovation and Customer Service. Human capital ambitions 2014 2015 2016 2017 Ambition 2020 * 2017 engagement data covers August to December and was gathered for the first time through regular Pulse surveys instead of a single annual survey. Employee engagement score (0 – 5 [...]

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Governance and organization

[...] on our corporate website. Business Unit/Function committees and officers Business and functional leadership is responsible and accountable for running business operations compliant with laws and company rules. Each business unit and large function has a Compliance Committee chaired by its Managing Director, and has appointed a member of its management team as its Compliance Officer. This committee plans to meet quarterly and is responsible for risk assessment and mitigation, implementation of compliance programs, ensuring employees are educated and for disciplinary measures in the event of violation of company rules. The Compliance Officer manages this on a [...]

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Paints and Coatings

[...] stabilized after a difficult period. There is ongoing uncertainty in the UK, but we command a strong leadership position with our Dulux brand and have signalled our intent to continue supplying the best possible products for our customers by opening the new world class plant in Ashington. In Coatings, the Specialty, Powder and Automotive businesses all performed well, with Powder in particular benefiting from its global leadership position. The business continues to grow, with new sites under construction in India (Thane) and China (Changzhou). In fact, the Changzhou powder plant is the biggest of its kind in the world. It was a very different story for our Marine [...]

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Board of Management and Executive Committee

[...] Business Review Meeting, comprising the CEO, the CFO, the COO, the Chief Supply Chain Officer and the leadership of the Paints and Coatings business. For the Specialty Chemicals business, the OCC consists of an Operational Review Meeting comprising the CEO, the CFO and the leadership of the Specialty Chemicals business. The other members of the Executive Committee have a standing invitation to these meetings. The meetings provide a forum for regular business and operational oversight, with a focus on commercial activities and supply chain processes. Executive Committee meetings are frequently held following the Business Review Meeting and the Operational Review [...]

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Medium-term risks

[...] identification and successful implementation of major transforming technologies Our success and leadership positions depend on the sustainable growth of our business through research, development and innovation in order to foster the adoption of major transforming technologies. Mitigating actions Prioritize funding for technology road maps and innovation strategies Enhance our global open innovation capability Invest in promising venture funds Explore acquiring/partnering with innovative start-ups Internal - Operational Attraction and retention of talent Ensuring continued alignment between a rapidly evolving business environment and qualifications, capabilities [...]

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Specialty Chemicals

[...] improvement and strong customer relationships have helped us achieve high profitability and leadership positions throughout our businesses, with 80% of revenue coming from number one or two positions. Given our strong presence in high growth markets, discipline in execution and strong culture focused on results, we are well positioned for future success (see Supervisory Board Chairman’s statement for more details on the separation process). * Based on reported figures, excluding unallocated corporate costs and other carve-out adjustments which are expected to lead to downward adjustments of ROS and ROI. Exchange rates from April 2017. Accelerating growth Our key [...]

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CEO statement

[...] brought about were crucial and helped pave the way for the new AkzoNobel. Thanks to their vision, leadership and expertise, we established a solid structure and put key processes in place which have enabled the company to move forward and take the next step. Our new strategy – which has powerful performance and precise processes as cornerstones – is therefore a natural progression. It will make us more agile and drive the streamlining of our core capabilities – making and selling paint and striving for the best efficiency and performance in what we do. We gave full details of this new strategic direction when we officially announced our plans to create two [...]

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Note 1: Summary of significant accounting policies

[...] AkzoNobel performed in 2017 How AkzoNobel created value in 2017 CEO statement Strategic performance Leadership: Statement of the Board of Management Governance and compliance: Corporate governance statement Governance and compliance: Remuneration report Financial information: Note 4 Operating income Financial information: Note 24 Financial risk management The section Strategic performance provides information on the developments during 2017 and the results. This section also provides information on cash flow and net debt, capital expenditures, innovation activities and employees. On March 7, 2018, the Board of Management authorized the financial statements for [...]

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In detail

Strategic performance In 2017, we announced our strategic intention to create two focused, high performing companies: Paints and Coatings, and Specialty Chemicals. Business performance A detailed summary of how each of our businesses performed during the year, including information on market characteristics. Leadership A look at our Board of Management, Executive Committee and Supervisory Board, their 2017 activities, plus the Report of the Supervisory Board. Governance and compliance Our corporate governance structure, executive remuneration, plus details about compliance and integrity management and AkzoNobel on the capital markets. Financial information Detailed [...]

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Auditor’s report

[...] Civil Code; other parts of the annual report: How AkzoNobel performed in 2017, Business Performance, Leadership, Governance and compliance, Sustainability statements, Index, Financial calendar and Glossary. Based on the procedures performed as set out below, we conclude that the other information: is consistent with the financial statements and does not contain material misstatements; contains the information that is required by Part 9 of Book 2 of the Dutch Civil Code. We have read the other information. Based on our knowledge and understanding obtained in our audit of the financial statements or otherwise, we have considered whether the other information contains [...]

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