Glossary

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

Annual General Meeting of shareholders; Extraordinary General Meeting of shareholders.

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.

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 values of safety, integrity and sustainability to life and shows what they mean in practice.

The total of investments in property, plant and equipment and investments in intangible assets.

The total amount of greenhouse gas (GHG) emissions caused during a defined period of a product’s lifecycle. It is expressed in terms of the amount of carbon dioxide equivalents CO₂(e) emitted. Greenhouse gases include CO₂, CO, CH₄, N₂O and HFCs, which have a global warming impact. We also include the impact of VOCs in our targets.

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.

Defines our core values 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 exclude 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. Adjusted earnings per share are the basic earnings per share, excluding identified items and taxes thereon.

Operating income excluding depreciation and amortization.

Europe, Middle East and Africa.

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

Health, safety, environment and security.

Identified items are special charges and benefits, results on acquisitions and divestments, major restructuring and impairment charges and charges related to major legal, 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.

Excludes Mexico.

Calculated as net debt divided by EBITDA, which is calculated as the total of the last 12 months.

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

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

Includes Mexico.

Includes, among others, China, Japan and South Korea.

Operating income is defined in accordance with IFRS and includes the relevant identified items. Adjusted operating income excludes identified items.

We use operational cash flow to monitor cash generation. It is defined as operating income excluding depreciation and amortization, adjusted for the change in operating working capital and capital expenditures.

Operating income as a percentage of revenue.

Research and development.

Segments and regions of the paints and coatings industry from which AkzoNobel generates revenue.

ROI is adjusted operating income of the last 12 months as a percentage of average invested capital.

ROS is 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.

Includes South East Asia and Asia Pacific.

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.