Our results at a glance

Q4 2018 highlights:

  • Revenue up 1% and up 4% in constant currencies, with positive price/mix partly offset by lower volumes
  • Pricing initiatives contributed to positive price/mix of 9% overall in response to higher raw material cost
  • Volumes were 7% lower (excluding China, volumes were 2% lower). Volumes in China normalized at 2016 level versus an exceptionally strong quarterly volume in Decorative Paints China last year
  • ROS, excluding unallocated costs, was up at 9.0% (2017: 8.4%)
  • Completed sale of Specialty Chemicals business on October 1, 2018; net profit on the sale was €5.8 billion
  • Acquisition of Colourland Paints in Malaysia and minority interest share to obtain full ownership of the AkzoNobel Swire Paints joint venture in China

Q4 2018:

  • Revenue 1% up, and 4% up in constant currencies, with positive price/mix partly offset by lower volumes
  • Adjusted operating income was up €3 million at €181 million (2017: €178 million) driven by pricing initiatives and cost-saving programs
  • Operating income at €68 million (2017: €139 million) includes €113 million adverse impact from identified items, mainly related to one-off non-cash pension costs (€57 million) based on a UK legal precedent set in October 2018 for the Guaranteed Minimum Pensions equalization regulations and transformation costs (€56 million)
  • ROS, excluding unallocated costs, was 9.0% (2017: 8.4%); ROS at 7.8% was the same as 2017
  • Performance Coatings ROS up at 10.9% (2017: 9.7%); higher selling prices contributed to price/mix of 11%
  • Decorative Paints ROS at 5.8% (2017: 6.3%) was impacted by lower volumes in China and supported by 8% positive price/mix, driven by pricing initiatives
  • Net income from total operations at €5,849 million (2017: €75 million), including discontinued operations at €5,814 million (2017: €46 million)

Full-year 2018:

  • Revenue 4% lower, although up 1% in constant currencies, with positive price/mix partly offset by lower volumes
  • Adjusted operating income at €798 million (2017: €905 million) impacted by adverse currencies, higher raw material costs and lower volumes, not yet fully offset by pricing initiatives and cost-saving programs
  • Operating income was €605 million (2017: €825 million) and includes the adverse impact of identified items of €193 million, mainly related to transformation cost (€130 million) and one-off non-cash pension costs (€57 million)
  • ROS, excluding unallocated costs, was 10.6% (2017: 10.6%); ROS at 8.6% (2017: 9.4%); ROI at 12.6% (2017: 13.9%)
  • Final dividend proposed of €1.43 per share (post consolidation)
Summary of financial outcomes

Fourth quarter

 

January-December

2017

2018

∆%

in € millions

2017

2018

∆%

*

Represented for the new adjusted earnings per share definition, which no longer excludes post-tax amortization charges

2,283

2,308

1%

Revenue

9,612

9,256

(4%)

240

240

Adjusted EBITDA

1,181

1,037

(12%)

178

181

2%

Adjusted operating income

905

798

(12%)

139

68

(51%)

Operating income

825

605

(27%)

7.8

7.8

 

ROS%

9.4

8.6

 

6.1

2.9

 

OPI margin

8.6

6.5

 

 

 

 

 

 

 

 

8.4

9.0

 

ROS% excl. unallocated costs

10.6

10.6

 

 

 

 

 

 

 

 

 

 

 

Average invested capital

6,494

6,340

 

 

 

 

ROI%

13.9

12.6

 

 

 

 

 

 

 

 

85

54

(36%)

Capital expenditures

250

160

(36%)

 

 

 

Net debt

1,951

(5,861)

 

 

 

 

Number of employees

35,700

34,500

(3%)

 

 

 

 

 

 

 

302

319

6%

Net cash from operating activities – continuing operations

278

162

(42%)

 

 

 

 

 

 

 

29

35

21%

Net income from continuing operations

443

410

(7%)

46

5,814

 

Net income from discontinued operations

389

6,264

 

75

5,849

 

Net income attributable to shareholders

832

6,674

 

0.29

22.83

 

Earnings per share from total operations (in €)

3.31

26.19

 

0.54

0.43

(20%)

Adjusted earnings per share from continuing operations (in €) *

2.35

1.91

(19%)

0.86

0.41

(52%)

Adjusted earnings per share from total operations (in €) *

4.06

3.78

(7%)