Note 3: Segment information

Decorative Paints

We provide decorative paints to both the professional and the do-it-yourself markets. We supply a variety of quality products for every situation and surface, including paints, lacquers and varnishes. We also offer a range of mixing machines and color concepts for the building and renovation industry.

The business units (one level below segment level) in the operating segment Decorative Paints are presented per region.

Performance Coatings

We are a supplier of performance coatings that protect and enhance ships, cars, aircraft, yachts and architectural components (structural steel, building products, flooring), consumer goods (mobile devices, appliances, beverage cans, furniture) and oil and gas facilities.

The business units in the operating segment Performance Coatings are presented per market.

The tables in this Note include (APM’s). Refer to Note 4 for further information on these APM’s.

Information per reportable segment

 

Revenue (third parties)

Amortization and depreciation

Operating income

Identified items1

Adjusted operating income2

EBITDA3

Adjusted EBITDA4

ROS%5

OPI margin6

In € millions

2020

2021

2020

2021

2020

2021

2020

2021

2020

2021

2020

2021

2020

2021

2020

2021

2020

2021

Decorative Paints

3,558

3,979

(153)

(154)

551

640

(22)

42

573

598

704

794

714

745

16.1

15.0

15.5

16.1

Performance Coatings

4,957

5,603

(159)

(160)

665

650

(35)

2

700

648

824

810

854

807

14.1

11.6

13.4

11.6

Corporate and other

15

5

(49)

(37)

(253)

(172)

(79)

(18)

(174)

(154)

(204)

(135)

(126)

(116)

 

 

 

 

Total

8,530

9,587

(361)

(351)

963

1,118

(136)

26

1,099

1,092

1,324

1,469

1,442

1,436

12.9

11.4

11.3

11.7

1

ldentified items are special charges and benefits, results on acquisitions and divestments, major restructuring and impairment charges, and charges and benefits related to major legal, environmental and tax cases. The identified items in this Note exclude the items outside operating income.

2

Adjusted operating income is operating income excluding identified items.

3

EBITDA is operating income excluding depreciation and amortization.

4

Adjusted EBITDA is operating income excluding amortization, depreciation and identified items.

5

ROS% is calculated as adjusted operating income (operating income excluding identified items) as a percentage of revenues from third parties. ROS% for Corporate and other is not shown, as this is not meaningful.

6

OPI margin is calculated as operating income as a percentage of revenues from third parties. OPI margin for Corporate and other is not shown, as this is not meaningful.

Information per reportable segment

 

Invested capital

Total assets

Total liabilities

Capital expenditures1

ROI%2

In € millions

2020

2021

2020

2021

2020

2021

2020

2021

2020

2021

Decorative Paints

2,567

3,022

5,882

6,179

3,273

3,347

77

108

20.5

20.8

Performance Coatings

3,384

3,671

6,519

7,139

2,586

2,665

146

147

20.7

18.4

Corporate and other

452

428

776

560

1,368

2,230

35

33

 

 

Total

6,403

7,121

13,177

13,878

7,227

8,242

258

288

16.1

16.0

1

Capital expenditures include investments in intangible assets (refer to Note 11) and investments in property, plant and equipment (refer to Note 12).

2

ROI% is calculated as adjusted operating income (operating income excluding identified items) of the last 12 months as a percentage of average invested capital of the last 12 months. Invested capital is calculated as total assets (excluding cash and cash equivalents, short-term investments, investments in associates, the receivable from pension funds in an asset position and assets held for sale) less current tax liabilities, deferred tax liabilities and trade and other payables. ROI% for Corporate and other is not shown, as this is not meaningful.

Regional information1

 

Revenue by region of destination

Intangible assets and property, plant and equipment

Invested capital

Capital expenditures2

In € millions

2020

2021

2020

2021

2020

2021

2020

2021

The Netherlands

342

335

1,188

1,206

1,616

1,787

46

45

Other EMEA countries

3,986

4,473

1,702

1,777

2,384

2,555

90

100

North Asia

1,515

1,735

1,093

1,203

911

969

35

45

South Asia Pacific

972

1,137

479

516

529

639

33

46

North America

1,114

1,163

543

602

727

809

43

37

South America

601

744

170

186

236

362

11

15

Total

8,530

9,587

5,175

5,490

6,403

7,121

258

288

1

The regional split has been changed compared to previous year to align to our new internal regional structure

2

Capital expenditures include investments in intangible assets (refer to Note 11) and investments in property, plant and equipment (refer to Note 12).

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. APM include, but are not limited to, adjusted operating income, (adjusted) EBITDA, adjusted earnings per share, ROS and ROI.