Our results at a glance

Highlights Q4 2019:

  • Adjusted operating income up 23% at €223 million (2018: €181 million), despite softer end market demand
  • ROS, excluding unallocated costs, increased to 11.0% (2018: 9.0%)
  • Operating income at €173 million (2018: €68 million); OPI margin improved to 7.7% (2018: 2.9%)
  • Progress towards delivering cost savings; delivered €10 million cost savings

Q4 2019:

  • Revenue 3% lower and 4% lower in constant currencies, with positive price/mix of 1% more than offset by 4% lower volumes
  • Operating income at €173 million includes €50 million negative impact from identified items, related to transformation costs and non-cash impairments (2018: €68 million including €113 million negative identified items); OPI margin improved to 7.7% (2018: 2.9%)
  • Net income from total operations at €81 million, including €6 million from discontinued operations (2018: €5,849 million, including €5,814 million from discontinued operations)
  • Adjusted EPS from continuing operations up 72% at €0.74 (2018: €0.43), EPS from total operations at €0.41 (2018: €22.83, including profit on the sale of Specialty Chemicals); both including impact of the share consolidation and cancellation of shares following buyback

Full-year 2019:

  • Revenue was flat, with positive price/mix of 4% and acquisitions contributing 1%, offset by 5% lower volumes due to our value over volume strategy
  • Adjusted operating income up 24% at €991 million (2018: €798 million) driven by pricing initiatives and cost savings; ROS up at 10.7% (2018: 8.6%); ROS excluding unallocated costs up at 12.0% (2018: 10.6%) 
  • Operating income up 39% at €841 million, including €150 million negative impact from identified items, mainly related to transformation costs and non-cash impairments, partly offset by a gain on disposal following asset network optimization (2018: €605 million including €193 million negative impact from identified items, mainly related to €130 million transformation costs and €57 million one-off non-cash pension costs); OPI margin improved at 9.1% (2018: 6.5%)
  • Net income from total operations at €539 million, including €22 million discontinued operations (2018: €6,674 million, including €6,264 million from discontinued operations)

AkzoNobel around the world
Revenue by destination

AkzoNobel around the world – Revenue by destination (pie chart)

Alternative performance measures (APM)

AkzoNobel uses APM adjustments to the IFRS measures to provide supplementary information on the reporting of the underlying developments of the business. These APM adjustments may affect the IFRS measures operating income, net profit and earnings per share. A reconciliation of the alternative performance measures to the most directly comparable IFRS measures can be found in the tables of Notes to the condensed financial statements.

Summary of financial outcomes

Fourth quarter

 

January-December

2018

2019

∆%

in € millions

2018

2019

∆%

1

The statement of income, statement of cash flows and the balance sheet for 2019 include the impact from the adoption of IFRS 16 “Leases” (as per January 1, 2019). The 2018 comparative figures have not been restated. Further details and a quantification of the impact are provided in Financial highlights and in Notes to the condensed consolidated financial statements.

2

Alternative performance measures; please refer to reconciliation to the most directly comparable IFRS measures in Notes to the condensed consolidated financial statements.

2,308

2,242

(3%)

Revenue

9,256

9,276

–%

240

312

30%

Adjusted EBITDA 1

1,037

1,341

29%

127

272

114%

EBITDA 1

844

1,201

42%

181

223

23%

Adjusted operating income 1,2

798

991

24%

(113)

(50)

(56%)

Identified items 1,2

(193)

(150)

(22%)

68

173

154%

Operating income 1

605

841

39%

7.8

9.9

 

ROS% 1,2

8.6

10.7

 

2.9

7.7

 

OPI margin 1,2

6.5

9.1

 

 

 

 

 

 

 

 

 

 

 

Average invested capital 1,2

6,340

7,026

 

 

 

 

ROI% 1,2

12.6

14.1

 

 

 

 

 

 

 

 

9.0

11.0

 

ROS% excl. unallocated costs 1,2

10.6

12.0

 

 

 

 

ROI% excl. unallocated costs 1,2

16.6

17.2

 

 

 

 

 

 

 

 

64

79

23%

Capital expenditures

184

214

16%

 

 

 

Net debt

(5,861)

802

 

 

 

 

Number of employees

34,500

33,800

 

 

 

 

 

 

 

 

319

454

42%

Net cash from operating activities
- continuing operations

162

33

 

 

 

 

 

 

 

 

35

75

114%

Net income from
continuing operations 1

410

517

26%

5,814

6

 

Net income from
discontinued operations

6,264

22

 

5,849

81

 

Net income attributable to
shareholders

6,674

539

 

0.43

0.74

72%

Adjusted earnings per share from continuing operations (in €)

1.91

3.10

62%

22.83

0.41

 

Earnings per share from total operations (in €)

26.19

2.53