Highlights 2018

  • Completed sale of Specialty Chemicals business on October 1, 2018; returning a total of €6.5 billion to shareholders
  • Robust pricing initiatives and cost-saving programs successfully fueled revenue growth in constant currencies and higher profitability in the second half of the year
  • Progress towards delivering our Winning together: 15 by 20 strategy, despite continued headwinds from adverse currencies and higher raw material costs
  • Phase one of our transformation to create a fit-for-purpose organization fully delivered on the €110 million planned savings for 2018
  • Next step taken in our transformation to deliver the next €200 million cost savings by 2020
  • Strong bolt-on acquisitions including Fabryo in Romania; Xylazel in Spain; Colourland Paints in Malaysia
  • Acquisition of minority interest share to obtain full ownership of the AkzoNobel Swire Paints joint venture in China at opportune moment, enabling strategic flexibility

Outlook:

We are delivering towards our Winning together: 15 by 20 strategy and continue creating a fit-for-purpose organization for a focused paints and coatings company, contributing to the achievement of our 2020 guidance.

Demand trends differ per region and segment in an uncertain macro-economic environment. Raw material inflation is expected to continue during the first half of 2019, although at a lower rate than 2018. Robust pricing initiatives and cost saving programs are in place to address the current challenges.

We continue executing our transformation to deliver the next €200 million cost savings by 2020, incurring one-off costs in 2019 and 2020.

We target a leverage ratio of between 1.0-2.0 times net debt/ EBITDA by the end of 2020 and commit to retain a strong investment grade credit rating.