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.
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
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