AkzoNobel Q4 2018 results show continued progress towards ‘15 by 20’ strategy

Press releases   •   Feb 13, 2019 07:07 GMT

Q4 2018 highlights:

  • Revenue up 1% and up 4% in constant currencies1, 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 costs2, 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
  • Adjusted operating income3 was up €3 million at €181 million (2017: €178 million) driven by pricing initiatives and cost-saving programs
  • 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

ROS excluding unallocated costs, at 10.6% (2017: 10.6%); ROI4 at 12.6% (2017: 13.9%)

Final dividend proposed of €1.43 per share (post consolida­tion)

AkzoNobel CEO, Thierry Vanlancker, commented:

“2018 was a landmark year for AkzoNobel as we completed the sale of the Specialty Chemicals business and began returning the vast majority of proceeds to our shareholders. Despite strong headwinds we made good progress on delivering our Winning together: 15 by 20 strategy with an increased business return on sales at 9.0% in the fourth quarter compared to 8.4% last year and 10.6% in the second half of the year versus 9.2% in the same period in 2017.

“We’re now a focused paints and coatings company and are channeling all our experience, energy and passion into being recognized as the reference in our industry. We continue to invest in growth and in 2018, we made multiple bolt-on acquisitions, including Fabryo in Romania, Xylazel in Spain, Colourland Paints in Malaysia and the AkzoNobel Swire Paints joint venture in China. These deals will help accelerate our momentum as we continue to build AkzoNobel into an industry leader.

“Another highlight was the introduction of our Paint the Future startup challenge. It’s designed to combine our global scale, know-how and expertise with the ingenious solutions of startups and scale-ups in the dynamic world of paints and coatings, making sure AkzoNobel is the reference when it comes to open innovation.”

AkzoNobel in € millions Q4 2017 Q4 2018 Δ% Δ% CC1
Revenue 2,283 2,308 1% 4%
Adjusted operating income3 178 181 2%
ROS excluding unallocated costs2 8.4% 9.0%
Key developments

Working with the world's coolest innovators

AkzoNobel created a major buzz in the coatings industry with the launch of our Paint the Future startup challenge. We want to combine our global scale, know-how and expertise with the ingenious solutions of startups and scale-ups across the planet. It’s all about connecting with new disruptive technologies and accelerating innovation in the dynamic world of paints and coatings. www.letspaintthefuture.com

Asian acquisitions underline commitment to key markets

Two transactions in the final months of 2018 highlighted our continued focus on further strengthening our positions in Asia. In December, we acquired the minority interest share to obtain full ownership of the AkzoNobel Swire Paints joint venture, giving us greater control over our future growth and direction. A month earlier, we acquired Colourland Paints in Malaysia, which will boost our growth ambitions in the country itself and throughout Southeast Asia.

Awlgrip HDT offers extreme performance for yacht owners

Yacht owners can now benefit from advanced coatings technology which passed the ultimate test during the latest edition of the Volvo Ocean Race. Our new Awlgrip HDT (high definition technology) polyurethane clearcoat is not only more durable and abrasion resistant than current market offerings, but it's also repairable and lower in VOCs (volatile organic compounds).

Boeing partnership reaches milestone

Special aircraft livery was developed to mark a major milestone in our paint partnership with Boeing. To celebrate the delivery of Boeing’s 787th 787 aircraft, our industry-leading 'base coat/clear coat’ system was used as part of a one-off design painted onto the landmark plane, which was ordered by China Southern Airlines. Boeing also hit another milestone recently, delivering its 1,000th new aircraft to have been painted with our unrivalled Aerodur 3001/3002 paint system.

Outlook:

We are delivering towards our 'Winning together: 15 by 20' strategy and continue creating a fit-for-purpose organization for a focused paints and coatings company, contributing to the achievement of our 2020 guidance.

Demand trends differ per region and segment in an uncertain macroeconomic environment. Raw material inflation is expected to continue during the first half of 2019, although at a lower rate than 2018. Robust pricing initiatives and cost saving programs are in place to address the current challenges.


We continue executing our transformation to deliver the next €200 million cost savings by 2020, incurring one-off costs in 2019 and 2020.


We target a leverage ratio of between 1.0–2.0 times net debt/ EBITDA by the end of 2020 and commit to retain a strong investment grade credit rating.

The report for the full-year and fourth quarter 2018 can be viewed and downloaded at http://akzo.no/FYQ42018Report

1 Constant Currencies calculations exclude the impact of changes in foreign exchange rates

2 ROS excluding unallocated costs is adjusted operating income as a percentage of revenue excluding unallocated corporate center costs

3 Adjusted operating income = operating income excluding identified items (previously called EBIT)

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

This is a public announcement by Akzo Nobel N.V. pursuant to section 17 paragraph 1 of the European Market Abuse Regulation (596/2014).

AkzoNobel has a passion for paint. We’re experts in the proud craft of making paints and coatings, setting the standard in colour and protection since 1792. Our world class portfolio of brands – including Dulux, International, Sikkens and Interpon – is trusted by customers around the globe. Headquartered in the Netherlands, we operate in over 80 countries and employ around 35,000 talented people who are passionate about delivering the high performance products and services our customers expect.

AkzoNobel South Africa has three manufacturing plants located in the country. These manufacturing sites supply both paint and coatings products to the South African market and other markets within Africa.

Safe Harbor Statement

This press release contains statements which address such key issues such as AkzoNobel’s growth strategy, future financial results, market positions, product development, products in the pipeline and product approvals. Such statements should be carefully considered, and it should be understood that many factors could cause forecasted and actual results to differ from these statements. These factors include, but are not limited to, price fluctuations, currency fluctuations, developments in raw material and personnel costs, pensions, physical and environmental risks, legal issues, and legislative, fiscal, and other regulatory measures, as well as the sale of Specialty Chemicals. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. For a more comprehensive discussion of the risk factors affecting our business please see our latest annual report, a copy of which can be found on our website: www.akzonobel.com.

Q4 2018 highlights: • Revenue up 1% and up 4% in constant currencies1, 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).

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AkzoNobel acquires full ownership of Chinese decorative paints joint venture

Press releases   •   Dec 13, 2018 10:00 GMT

AkzoNobel acquires full ownership of Chinese decorative paints joint venture Akzo Nobel N.V. (AKZA; AKZOY) has signed and closed the acquisition of Swire Industrial Limited’s minority interest in the AkzoNobel Swire Paints (ANSP) joint venture. Having held the majority share in the decorative paints joint venture since 1989, AkzoNobel has now acquired full ownership. 

This acquisition strengthens AkzoNobel’s leading position in the Chinese decorative paints market while also increasing the flexibility to further develop the business. 

Thierry Vanlancker, CEO of AkzoNobel, said: “China has been, and continues to be, a strategic growth market for AkzoNobel. The timing of this acquisition is perfect. It will strengthen our leading position and help drive our value creation ambition for China. It also supports our ongoing transformation into a focused paints and coatings company and gives further momentum to our strategy of achieving 15% return on sales by 2020.

” Ruud Joosten, COO of AkzoNobel, added: “We would like to thank Swire for the constructive and strong partnership we’ve had over the last three decades. The ANSP joint venture has well established sales channels, strong brand recognition and a high level of innovation. We look forward to maintaining this successful path and continuing to serve our customers with top quality brands.

” The ANSP joint venture manufactures and distributes decorative paints, primarily under the Dulux brand. Manufacturing plants are located at Guangzhou (including a 10% joint venture with a local partner), Shanghai, Langfang and Chengdu.

AkzoNobel creates everyday essentials to make people’s lives more livable and inspiring. As a leading global paints and Coatings Company and a major producer of specialty chemicals, we supply essential ingredients, essential protection and essential colour to industries and consumers worldwide. Backed by a pioneering heritage, our innovative products and sustainable technologies are designed to meet the growing demands of our fast-changing planet, while making life easier. Headquartered in Amsterdam, the Netherlands, we have approximately 45,000 people in around 80 countries, while our portfolio includes well-known brands such as Dulux, Sikkens, International, Interpon and Eka. Consistently ranked as a leader in sustainability, we are dedicated to energizing cities and communities while creating a protected, colorful world where life is improved by what we do.

​AkzoNobel acquires full ownership of Chinese decorative paints joint venture Akzo Nobel N.V. (AKZA; AKZOY) has signed and closed the acquisition of Swire Industrial Limited’s minority interest in the AkzoNobel Swire Paints (ANSP) joint venture. Having held the majority share in the decorative paints joint venture since 1989, AkzoNobel has now acquired full ownership.

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The psychology of colour: How your surroundings affect your behaviour and mood.

Press releases   •   Oct 16, 2018 10:17 GMT

Crazy for colour? Let’s take a closer look.

16 October 2018, Johannesburg: Colour is an extremely powerful tool of communication, and can be used to signal action, influence mood, and even effect physiological reactions. Certain colours have been associated with a noticeable change in skin response, blood pressure, heart rate, respiration rate, blinking frequency, and even vision. Even our sense of taste is often fooled by our sense of sight – you eat with your eyes after all.

In recent years, thanks to an unexpected new fanbase of stressed-out adults seeking a healthy, mindful way to unwind and breathe, colouring books have enjoyed a massive resurgence.As a result, sales figures of adult colouring books have been nothing short of amazing: the United Kingdom's largest high street chain of bookshops, Waterstones, saw a 300% rise in colouring book sales between 2013 and 2014, while Johanna Basford's The Secret Garden topped the Amazon charts in the United States and Canada for months. Although the trend actually started in France with the publication of Art-thérapie: 100 Coloriages anti-stress in 2012, it's now a global phenomenon - in Brazil an incredible one in six books sold in 2015 was a colouring book, with South Africans eagerly whipping out their pencils and Crayons too.

Although the trend has died down somewhat, it still speaks volumes about our new need for quiet and meditation, and how immersing oneself in a world of creativity and colour can achieve that. “Art and the use of colour has been used in psychotherapy for decades. Mediums such as painting, drawing, clay work and the like have been used to tap into people’s emotional and psychological aspects, particularly from a psychanalytic perspective. Colour in and of itself can have a powerful effect on people, and these activities are usually done for specific reasons in the psychotherapeutic process, and under the guidance of a trained psychotherapist. says Nikki Themistocleous, Clinical Psychologist.

The anxiety and depression busting abilities of colouring books are well documented which is why some claim to be ‘art-therapy’ or have therapeutic benefits, but Themistocleous disagrees. “Not only has colour and creative artworks been used in psychotherapy, it is also a meditative and relaxing activity that many people use as a hobby. Colouring in, drawing and painting have often been associated with the concept of mindfulness. In social terms, many refer to mindfulness as something relaxing, to wind down and ‘breath’. However, the term mindfulness is actually linked to the Cognitive Behavioural therapies, and emphasises a state of being that is focused on the here-and-now, the present moment, with full awareness and appreciation of oneself and their surroundings. Although these creative mediums may form part of a longer psychotherapeutic process, they can also produce beneficial responses in individuals wanting to unwind..”

The psychology of colour is well-researched, with specific colours known to evoke certain emotions and physical reactions in us. “If we look at colour specifically – we see that colour often produces an emotional and subjective response in people, and can be associated with one’s feelings, memories and associations.,” says Themistocleous.

For example, red represents intense feelings, like aggression, happiness, love, and passion. Red also evokes ideas of action, adventure, and strength, and it’s been found to stimulate the appetite, which is why many popular fast-food chains feature red heavily in their logos and establishments. Some prisons are painted pink in the hope of reducing aggression, while doctor’s rooms are crisp, clean and white to represent a hygienic, clean space.

Every year, the colour specialists at the AkzoNobel Global Aesthetic Centre in the Netherlands create a series of diverse palettes around one central Colour of the Year – a stand-out shade that perfectly captures the mood of the moment. Based on extensive research into societal, cultural, design and lifestyle trends from a broad range of lifestyles and disciplines, their insights confidently predict which colour sums up a global state of emotion. The shade du jour is a beautiful, warm honey tone called Creme Brulee.

“We’ve noticed a strong sense of awakening,” says Nathalie Sweeney, Marketing Director for Dulux Sub Saharan Africa. “Creme Brulee is inspired by the varied tones and remarkable properties of honey – natural, timeless and enduring, protective, rejuvenating and healing,” she says.

According to the ColourFutures™ Report, 2019 is set to be a year of optimistic consciousness, with around experiencing a renewed sense of energy, optimism and purpose, and the power to ‘be the change’. We’re figuring out what matters to us most.

Themistocleous agrees: “There’s a desire to reach out, engage with others, and to make things better. People are ready to seize the moment. We’re seeking clarity, asking searching questions, examining our values and deciding where to place our trust. We want to develop a new sense of independence and self-belief, to become strong, stoic and resilient in the face of adversity. This warm, soft amber tone reflects that emotion perfectly.”

As a result there’s a growing desire to create homes where we can contemplate, consider, gain perspective and forge our own conclusions about what really matters to us. “Now, more than ever, we need the time and the space to think,” says Sweeney.

Visit the Dulux social pages Facebook, Twitter and Pinterest or Instagram.

-ENDS-

For more information, including additional press materials and imagery, please contact:

Unathi Jobela

FleishmanHillard

011 548 2017

Unathi.jobela@fleishman.co.za

Notes to Editors

About Dulux

Dulux is the South African consumer paint brand from AkzoNobel, a leading global paints and coatings manufacturer and a major producer of specialty chemicals. AkzoNobel supply industries and consumers worldwide with innovative products and are passionate about developing sustainable answers for our customers. Our portfolio includes well-known brands such as Dulux, Sikkens, International and Eka. Headquartered in Amsterdam, the Netherlands, we are consistently ranked as one of the leaders in the area of sustainability. With operations in more than 80 countries, our 50,000 people around the world are committed to delivering leading products and technologies to meet the growing demands of our fast-changing world.

AkzoNobel creates everyday essentials to make people’s lives more livable and inspiring. As a leading global paints and Coatings Company and a major producer of specialty chemicals, we supply essential ingredients, essential protection and essential colour to industries and consumers worldwide. Backed by a pioneering heritage, our innovative products and sustainable technologies are designed to meet the growing demands of our fast-changing planet, while making life easier. Headquartered in Amsterdam, the Netherlands, we have approximately 45,000 people in around 80 countries, while our portfolio includes well-known brands such as Dulux, Sikkens, International, Interpon and Eka. Consistently ranked as a leader in sustainability, we are dedicated to energizing cities and communities while creating a protected, colorful world where life is improved by what we do.

16 October 2018 Johannesburg: Colour is an extremely powerful tool of communication, and can be used to signal action, influence mood, and even effect physiological reactions. Certain colours have been associated with a noticeable change in skin response, blood pressure, heart rate, respiration rate, blinking frequency, and even vision. Even our sense of taste is often fooled by our sense of sight

Read more »

Dulux announces Colour of the Year 2019: Creme Brulee

Press releases   •   Sep 05, 2018 08:00 GMT

Uncovered by the annual expert ColourFutures™ Report into global trends, insights and consumer behaviours, this purposeful and delicious amber tone gently awakens all the senses.

05 September 2018, Johannesburg: Global leader of Decorative Paint, Dulux- manufactured by AkzoNobel, has identified one hero paint colour that perfectly encapsulates and expresses our collective living spaces today: Creme Brulee.

Every year, the colour specialists at the AkzoNobel Global Aesthetic Centre in the Netherlands create a series of diverse palettes around one central Colour of the Year – a stand-out shade that perfectly captures the mood of the moment. AkzoNobel and their global team of cutting edge trend spotters have done extensive research into societal, cultural, design and lifestyle trends from a broad range of lifestyles and disciplines, and their insights confidently predict what is going to be important to consumers in the coming year. Together, they build a clear picture of where the world is going.

“We are noticing a strong sense of awakening,” says Nathalie Sweeney, Decorative Paints Marketing Director Sub Sahara Africa for AkzoNobel. “Creme Brulee is inspired by the varied tones and remarkable properties of honey – natural, timeless and enduring, protective, rejuvenating and healing. Our trend forecasters from around the globe have reported a growing appreciation of both the substance and the shade, having seen its use on the rise across fashion, architecture and design”.

According to the ColourFutures™ Report, 2019 is set to be a year of optimistic consciousness and so the bright theme of ‘Let the Light in’ runs across the colour palettes. “Creme Brulee has a warm amber tone that perfectly captures our ‘Let the Light in’ theme. It can be calming and nourishing or more stimulating and energising, depending on the light and colours surrounding it. Truly versatile and contemporary, our Colour of the Year for 2019 is the ideal choice for reflecting our new sense of positivity,” says Sweeney.

The Akzonobel trend research shows that people around the world are experiencing a renewed sense of energy, optimism and purpose, and the power to ‘be the change’. We’re figuring out what matters to us most. Sweeney agrees: “There’s a desire to reach out, engage with others, and to make things better. That change can be anything from marching for women’s rights and fishing plastic out of the ocean to small acts of neighbourly kindness. People are ready to seize the moment.”

Today’s world is a turbulent one, with extreme events commonplace. With so many news sources, both real and fake, it seems like there are too many versions of the ‘truth’ out there. The Report shows that we’re seeking clarity, asking searching questions, examining our values and deciding where to place our trust. We want to develop a new sense of independence and self-belief, to become strong, stoic and resilient in the face of adversity. This sense of awareness has been gaining resonance in recent years, as people strive to be more conscious of what is really going on in the world, navigating their own route through the media that surrounds us.

“There’s a growing feeling that we can’t let others do the thinking for us anymore, we need to come up with our own solutions. We’re seeing an increasing emphasis on social design and a re-think of urbanisation, exploring how we can develop ingenious sustainable materials and build happier communities. There’s a growing desire to create homes where we can contemplate, consider, gain perspective and forge our own conclusions about what really matters to us. Now, more than ever, we need the time and the space to think,” says Sweeney.

When looking at how the Dulux ColourFutures palettes have evolved over the years, consumers’ appetite for different colours and fluctuating connections with what is going on in the wider world is clearly charted. “In 2017, when our consumers felt a need for balance and calm, the palette was dominated by cooler shades of blue and grey. Last year, many of us were left unsettled by global events, so we closed our doors to retreat and regroup,” says Sweeney. “Now is the time to think, to dream, to love and to act.”

The 2019 edition of ColourFutures tells the story of how global trends are transformed into inspiring paint colour palettes for the home, from room to room. The easy-to-use palettes promise to bring a fresh energy to the world’s walls, and with the versatile Colour of the Year 2019, Creme Brulee, at the heart of our colour collection, we’re inspired to do just that.

For more tips on how to do it yourself and turn old to new, visit the Dulux social pages Facebook, Twitter and Pinterest or Instagram.

-ENDS-

For more information, including additional press materials and imagery, please contact:

Unathi Jobela

FleishmanHillard

011 548 2017

Unathi.jobela@fleishman.co.za

Notes to Editors

About Dulux

Dulux is the South African consumer paint brand from AkzoNobel, a leading global paints and coatings manufacturer and a major producer of specialty chemicals. AkzoNobel supply industries and consumers worldwide with innovative products and are passionate about developing sustainable answers for our customers. Our portfolio includes well-known brands such as Dulux, Sikkens, International and Eka. Headquartered in Amsterdam, the Netherlands, we are consistently ranked as one of the leaders in the area of sustainability. With operations in more than 80 countries, our 50,000 people around the world are committed to delivering leading products and technologies to meet the growing demands of our fast-changing world.

AkzoNobel creates everyday essentials to make people’s lives more livable and inspiring. As a leading global paints and Coatings Company and a major producer of specialty chemicals, we supply essential ingredients, essential protection and essential colour to industries and consumers worldwide. Backed by a pioneering heritage, our innovative products and sustainable technologies are designed to meet the growing demands of our fast-changing planet, while making life easier. Headquartered in Amsterdam, the Netherlands, we have approximately 45,000 people in around 80 countries, while our portfolio includes well-known brands such as Dulux, Sikkens, International, Interpon and Eka. Consistently ranked as a leader in sustainability, we are dedicated to energizing cities and communities while creating a protected, colorful world where life is improved by what we do.

Uncovered by the annual expert ColourFutures™ Report into global trends, insights and consumer behaviours, this purposeful and delicious amber tone gently awakens all the senses.

Read more »

AkzoNobel executing on transformation, creating a fit-for-purpose organization, and strong pricing momentum dealing with headwinds

Press releases   •   Jul 25, 2018 10:00 GMT

AkzoNobel executing on transformation, creating a fit-for-purpose organization, and strong pricing momentum dealing with headwinds

Akzo Nobel N.V. publishes results for Q2 2018 (AKZA; AKZOY)

  • Implemented phase one of transformation to create a fit-for-purpose organization delivering €25 million in Q2
  • Decorative Paints return on sales1 up at 12.2% (2017: 11.6%) driven by 5% higher selling prices
  • Improving trend for Performance Coatings with return on sales at 11.8% (2017: 13.4%); pricing initiatives gaining traction and closing the gap
  • Investing in attractive markets: acquisition of Fabryo in Romania and opening of new powder coatings plant in China

Q2 AkzoNobel (Paints and Coatings):

  • Revenue 3% lower, although up 2% in constant currencies2, with positive price/mix partly offset by lower volumes
  • Adjusted operating income3 at €225 million (2017: €294 million) mainly impacted by €21 million adverse foreign currencies and €20 million non-recurring items
  • Operating income includes the adverse impact of identified items of €33 million, mainly related to the transformation
  • Return on sales at 9.2% (2017: 11.6%), up for Paints and improving for Coatings; return on investment4 at 12.2% (2017: 14.4%)
  • Net income from total operations at €271 million (2017: €301 million), including discontinued operations at €164 million (2017: €134 million)

AkzoNobel CEO, Thierry Vanlancker, commented:

“Disciplined execution on the first phase of our transformation into a focused Paints and Coatings company is creating a fit-for-purpose organization and delivering cost savings.

“Revenue in constant currencies increased in all Performance Coatings segments except Marine and Protective Coatings. Decorative Paints delivered a particularly strong performance with pricing initiatives and cost savings compensating for higher raw material costs.

“We continued investing in our market leading positions, including the acquisition of the Fabryo decorative paints business in Romania and the opening of a new powder coatings plant in Changzhou, China.”

Outlook:

We are delivering towards our "Winning together: 15 by 20" strategy by creating a fit-for-purpose organization for a focused Paints and Coatings company, contributing to the achievement of our 2020 guidance. For the remainder of 2018, we expect positive developments for Decorative Paints and Performance Coatings, excluding Marine and Protective Coatings, where market conditions are still challenging. Demand trends differ per region and segment. Raw material inflation is projected to continue for the remainder of 2018, although at a slower rate than during the start of the year. Robust pricing initiatives and cost-saving programs are in place to mitigate the current challenges.

AkzoNobel in € millions Q2 20175 Q2 2018 Δ % ∆% CC2
Revenue 2,533 2,446 (3) 2
Adjusted operating income3 294 225 (23)
ROS% excluding unallocated corporate center costs 12.8 12.1
ROS%1 11.6 9.2
ROI%4 14.4 12.2
Net income from total operations, including discontinued operations 301 271
The Q2 2018 report can be viewed and downloaded at https://www.akzonobel.com/for-investors/all-reports/q2-2018-resultsDiscontinued operations (including Specialty Chemicals)
  • Revenue up 1%
  • Adjusted operating income up 50% at €252 million (2017: €168 million), caused by held for sale effects (Q2 impact: €74 million) and stronger underlying performance in Specialty Chemicals
  • In Specialty Chemicals, adjusted operating income was higher, mainly due to stronger price/mix effects and productivity improvements, partly offset by adverse currencies, restructuring costs related to manufacturing network optimization projects and other one-off costs

Discontinued operations in € millions (including Specialty Chemicals)

Q2 20175 Q2 2018 Δ % ∆% CC2
Revenue 1,252 1,264 1 7
Adjusted operating income3 168 252 50
ROS%1 13.4 19.9
ROI%4 15.6 20.7
1 ROS% is adjusted operating income as a percentage of revenue

2Constant Currencies calculations exclude the impact of changes in foreign exchange rates

3 Adjusted operating income = operating income excluding identified items (previously called EBIT)

4 ROI% is adjusted operating income of the last 12 months as percentage of average invested capital

5 Represented to present the Specialty Chemicals business as discontinued operations

This is a public announcement by Akzo Nobel N.V. pursuant to section 17 paragraph 1 of the European Market Abuse Regulation (596/2014).

About AkzoNobel

AkzoNobel has a passion for paint. We’re experts in the proud craft of making paints and coatings, setting the standard in color and protection since 1792. Our world class portfolio of brands – including Dulux, International, Sikkens and Interpon – is trusted by customers around the globe. Headquartered in the Netherlands, we operate in over 80 countries and employ around 35,000 talented people who are passionate about delivering the high performance products and services our customers expect. The sale of our Specialty Chemicals business is expected to be completed by the end of 2018.

About AkzoNobel Specialty Chemicals

Industries worldwide rely on our essential chemistry in the manufacture of everyday products such as paper, plastics, building materials, and personal care items. Building on the dedication of our 9,500 employees and our shared commitment to safety, sustainability, and open innovation, we have established a world-class business and built strong partnerships with our customers. We operate in over 80 countries around the world and our portfolio of industry leading brands includes Eka, Dissolvine, Trigonox, and Berol.

Not for publication – for more information

Corporate Media Relations Corporate Investor Relations
T +31 (0)88 – 969 7833 T +31 (0)88 – 969 7856
Contact: Diana Abrahams Contact: Lloyd Midwinter

AkzoNobel creates everyday essentials to make people’s lives more livable and inspiring. As a leading global paints and Coatings Company and a major producer of specialty chemicals, we supply essential ingredients, essential protection and essential colour to industries and consumers worldwide. Backed by a pioneering heritage, our innovative products and sustainable technologies are designed to meet the growing demands of our fast-changing planet, while making life easier. Headquartered in Amsterdam, the Netherlands, we have approximately 45,000 people in around 80 countries, while our portfolio includes well-known brands such as Dulux, Sikkens, International, Interpon and Eka. Consistently ranked as a leader in sustainability, we are dedicated to energizing cities and communities while creating a protected, colorful world where life is improved by what we do.

Akzo Nobel N.V. publishes results for Q2 2018 (AKZA; AKZOY) Implemented phase one of transformation to create a fit-for-purpose organization delivering €25 million in Q2

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Contacts 3 contacts

  • Press Contact
  • Colour Consultant
  • paqqlesisacz.rulampmaiensack@aqukzlconawobdtelid.chxomur
  • +27 11 861 1116
Palesa is responsible for all things colour including matching, advice and trends. She is also the Sub Saharan Africa representative for the team that works on global colour trends and forecasting.

  • Press Contact
  • Media Relations liaison
  • thnwemqubiug.mehtiswyatg@fkgleopiskbhmczansw.czio.oyzavb
  • +27 11 548 2027
Thembi is responsible for all media relations for AkzoNobel South Africa including Dulux and Dulux Trade South Africa.

  • Press Contact
  • Communications Manager - Africa
  • kiyvrbfjy.bpasrwsaohm@lqakdozoypnohjbeasl.uacoxrmzb
  • (+27) 647559508
  • (+27) 118611344
Kirby is responsible for Corporate Communications at AkzoNobel South Africa as well as the rest of the Sub-Saharan Africa region. She is also a spokesperson for the business.

About AkzoNobel South Africa

AkzoNobel is a leading paint and coatings manufacturer with brands including Dulux, Dulux Trade, International, Interpon and Salcomix.

AkzoNobel has a passion for paint. We’re experts in the proud craft of making paints and coatings, setting the standard in colour and protection since 1792. Our world class portfolio of brands – including Dulux, International, Sikkens and Interpon – is trusted by customers around the globe. Headquartered in the Netherlands, we operate in over 80 countries and employ around 35,000 talented people who are passionate about delivering the high performance products and services our customers expect.

AkzoNobel South Africa has three manufacturing plants located in the country. These manufacturing sites supply both paint and coatings products to the South African market and other markets within Africa.

Address

  • AkzoNobel South Africa
  • 56 Emerald Parkway
  • 1609 Greenstone Hill