Glossary

Adjusted earnings per share are the basic earnings per share from operations, excluding identified items and taxes thereon.

Operating income excluding depreciation, amortization and identified items.

Operating income excluding identified items.

Annual General Meeting of shareholders.

AkzoNobel Leading Performance System.

Behavior-based safety. A global program run at all AkzoNobel locations.

Explains what we stand for as a company, what we value and how we run our business. It brings our core principles of safety, integrity and sustainability to life and shows what they mean in practice.

The carbon footprint is the total amount of greenhouse gas (GHG) emissions caused during a defined period of the product lifecycle. It is expressed in terms of the amount of carbon dioxide equivalents CO₂(e) emitted.

An economic system which is restorative and regenerative by design, and which aims to keep products, components and materials at their highest utility and value at all times, distinguishing between technical and biological cycles.

Our Code of Conduct defines our core principles and how we work. It incorporates fundamental principles on issues such as business integrity, labor relations, human rights, health, safety, environment and security and community involvement.

The change in equity during a period resulting from transactions and other events, other than those changes resulting from transactions with shareholders in their capacity as shareholders.

Calculations excluding the impact of changes in foreign exchange rates.

Net income attributable to shareholders divided by the weighted average number of common shares outstanding during the year.

An eco-performer is a solution offering clear sustainability benefits, but which is overall on a par with the mainstream offer in the market.

A measure of the sustainability performance of our products. An eco-premium solution is significantly better than the offer in the market in at least one mainstream criteria (toxicity, energy use, use of natural resources/raw materials, emissions and waste, land use, risks, health and well-being), and not significantly worse in any other criteria. Downstream benefits include a tangible sustainability benefit for our customers.

Europe, Middle East and Africa.

Central and Eastern Europe (excluding Austria), Baltic States and Turkey.

We report emissions to air, land and water for those substances which may have an impact on people or the environment: CO₂, VOCs and hazardous and non-hazardous waste.

Global Business Services, which covers functional support activities such as Human Resources, Finance and Information Management, as well as non-product related Procurement.

Greenhouse gases, including CO₂, CO, CH₄, N₂O and HFCs, which have a global warming impact. We also include the impact of VOCs in GHG reporting.

Health, safety, environment and security.

Identified items are special charges and benefits, results on acquisitions and divestments, major restructuring and impairment charges and charges and benefits related to major legal, anti-trust, environmental and tax cases.

Total assets (excluding cash and cash equivalents, short-term investments, investments in associates, the receivable from pension funds in an asset position, assets held for sale) less current income tax payable, deferred tax liabilities and trade and other payables.

A loss of primary containment is an unplanned release of material, product, raw material or energy to the environment (including those resulting from human error). Loss of primary containment incidents are divided into three categories, dependent on severity, from small, on-site spill/near misses up to Level 1 – a significant escape.

The number of lost time injuries per 200,000 hours worked. Full definitions are in the Sustainability statements section.

Western, Northern and Southern Europe, including Austria.

Mature Europe, the US, Canada, Japan and Oceania.

Defined as long-term borrowings plus short-term borrowings less cash and cash equivalents and short-term investments.

This is income excluding net financing expenses, results from associates and joint ventures, income tax and profit from discontinued operations. Operating income includes the share of non-controlling interests. Operating income includes identified items to the extent these relate to lines included in operating income.

The sum of inventories, trade receivables and trade payables. When expressed as a ratio, operating working capital is measured against four times last quarter revenue.

Operating income as a percentage of revenue.

On-time in-full, referring to customer service.

Research & Development.

We have defined four categories of regulatory action, from self-reported issues (Level 1) to formal legal notifications with fines above €100,000 (Level 4).

This is a key profitability measure and is calculated as adjusted operating income as a percentage of 12 months average invested capital.

This is a key profitability measure and is calculated as adjusted operating income of the last 12 months as percentage of average invested capital, for Decorative Paints and Performance Coatings; it excludes unallocated corporate center costs and invested capital, consistent with our 2020 ambition.

This is a key profitability measure and is calculated as adjusted operating income as percentage of revenue for Decorative Paints and Performance Coatings; it excludes unallocated corporate center costs, consistent with our 2020 ambition.

This is a key profitability measure and is calculated as adjusted operating income as a percentage of revenue.

We have defined three levels of safety incidents. The highest category – Level 3 – involves any loss of life; more than five severe injuries; environmental, asset or business damage totaling more than €25 million; inability to maintain business; or serious reputational damage to AkzoNobel stakeholders.

Akzo Nobel N.V. shareholders’ equity divided by the number of common shares outstanding at year-end.

Business Partner Code of Conduct, supplier support visits, Key Supplier Management and Together for Sustainability are all elements of our supplier sustainability framework.

The number of injuries per 200,000 hours worked. Full definitions are in the Sustainability statements.

Compares the performance of different companies’ stocks and shares over time. Combines share price appreciation and dividends paid to show the total return to shareholders. The relative TSR position reflects the market perception of overall performance relative to a reference group.

Volatile organic compounds.