AI assistant
Akzo Nobel N.V. — Earnings Release 2016
Oct 19, 2016
3806_iss_2016-10-19_330a334b-5eea-44cc-8ead-15225c86d8e6.pdf
Earnings Release
Open in viewerOpens in your device viewer
Our results at a glance
Profitability increased in an environment of mixed volume growth
Q3:
- Volume growth in Decorative Paints and Specialty Chemicals, while volumes were flat overall
- Revenue down 4 percent, due to adverse currency and price/mix effects
- EBIT* up 1 percent at €442 million (2015: €436 million), with continuous improvement initiatives and lower costs, partly offset by adverse currency effects
- Operating income up 4 percent at €454 million (2015: €436 million), positively impacted by incidental items
- ROS** was up at 12.3 percent (2015: 11.6 percent); ROI** improved to 15.2 percent (2015: 13.0 percent). ROS and ROI improved for all Business Areas
- Net income attributable to shareholders was €285 million (2015: €285 million)
- Adjusted EPS was €1.20 (2015: €1.24)
- Net cash inflow from operating activities up 3 percent at €600 million (2015: €583 million)
- Interim dividend up 6 percent to €0.37 per share (2015: €0.35)
- Further de-risking of pension liabilities
Outlook:
• Outlook unchanged. The market environment remains uncertain with challenging conditions in several countries and segments. Deflationary pressures and currency headwinds are expected to continue. We maintain our financial guidance 2016-2018
AkzoNobel around the world Revenue by destination
(Based on the full-year 2015)
Summary of financial outcomes
| Third quarter | January-September | ||||
|---|---|---|---|---|---|
| 2015 | 2016 | ∆% in € millions | 2015 | 2016 | ∆% |
| 3,760 | 3,600 | (4) Revenue | 11,300 | 10,741 | (5) |
| 436 | 454 | 4 Operating income | 1,228 | 1,302 | 6 |
| 436 | 442 | 1 EBIT | 1,194 | 1,267 | 6 |
| 11.6 | 12.6 | OPI margin% | 10.9 | 12.1 | |
| 11.6 | 12.3 | ROS% ** | 10.6 | 11.8 | |
| Average invested capital | 10,449 10,084 | ||||
| Moving average ROI (in %) ** | 13.0 | 15.2 | |||
| 163 | 128 | Capital expenditures | 423 | 403 | |
| 583 | 600 | 3 Net cash from operating activities | 368 | 717 | 95 |
| Net debt | 1,727 | 1,119 | |||
| 284 | 285 | – Net income from continuing operations |
779 | 838 | 8 |
| 1 | – | Net income from discontinued operations |
(3) | (1) | |
| 285 | 285 | – Net income attributable to shareholders |
776 | 837 | 8 |
| 1.15 | 1.13 | Earnings per share from total operations (in €) |
3.14 | 3.34 | |
| 1.24 | 1.20 | (3) Adjusted earnings per share (in €) | 3.30 | 3.50 | 6 |
| Number of employees | 45,800 45,800 |
* EBIT = operating income excluding incidental items
** ROS% = EBIT/Revenue. Moving average ROI (in %) = 12 months EBIT/12 months average invested capital
Financial highlights
Volume growth in Decorative Paints and Specialty Chemicals, while volumes were flat overall. Revenue was down 4 percent, due to adverse currency and price/mix effects. EBIT was up 1 percent at €442 million (2015: €436 million) with continuous improvement initiatives and lower costs, partly offset by adverse currency effects. ROS was up at 12.3 percent (2015: 11.6 percent) and ROI improved to 15.2 percent (2015: 13.0 percent). ROS and ROI improved for all Business Areas. Net cash inflow from operating activities was up 3 percent at €600 million (2015: €583 million).
Revenue Third quarter January-September 2015 2016 ∆% in € millions 2015 2016 ∆% 1,052 1,021 (3) Decorative Paints 3,076 2,937 (5) 1,493 1,406 (6) Performance Coatings 4,473 4,267 (5) 1,235 1,202 (3) Specialty Chemicals 3,821 3,614 (5) (20) (29) Other activities/eliminations (70) (77) 3,760 3,600 (4) Total 11,300 10,741 (5)
| Revenue |
|---|
| --------- |
Volumes were flat, while adverse currency and price/mix effects resulted in a 4 percent decrease in revenue.
- In Decorative Paints, volumes increased 3 percent due to positive developments in Asia and EMEA, while volumes continued to be lower in Latin America. Revenue was down 3 percent, mainly due to unfavorable currency effects
- In Performance Coatings, volumes were down 2 percent affected by adverse conditions in the marine and oil and gas industries, partly offset by positive developments in other segments. Demand trends differed per segment and region. Revenue was down 6 percent, due to unfavorable currencies, lower volumes and adverse price/mix effects
- In Specialty Chemicals, volumes were up 1 percent with positive developments, especially in Industrial Chemicals, partly offset by lower demand in the oil related segments. Revenue was down 3 percent, mainly due to price deflation in several markets
| in % versus Q3 2015 | Volume Price/mix | Acquisitions/ Divestments |
Exchange rates |
Total | |
|---|---|---|---|---|---|
| Decorative Paints | 3 | (1) | – | (5) | (3) |
| Performance Coatings | (2) | (2) | – | (2) | (6) |
| Specialty Chemicals | 1 | (3) | – | (1) | (3) |
| Total | – | (2) | – | (2) | (4) |
| Volume development per quarter (year-on-year) |
Q3 15 | Q4 15 | Q1 16 | Q2 16 Q3 16 | |
|---|---|---|---|---|---|
| Decorative Paints | – | 1 | 6 | 1 | 3 |
| Performance Coatings | (2) | – | 2 | 2 | (2) |
| Specialty Chemicals | – | – | 1 | – | 1 |
| Total | (1) | – | 2 | 1 | – |
Price/mix development per
| quarter (year-on-year) | Q3 15 | Q4 15 | Q1 16 | Q2 16 | Q3 16 |
|---|---|---|---|---|---|
| Decorative Paints | (2) | – | (2) | (1) | (1) |
| Performance Coatings | 2 | 1 | (1) | (2) | (2) |
| Specialty Chemicals | (2) | (2) | (4) | (3) | (3) |
| Total | – | (1) | (2) | (2) | (2) |
EBIT
- In Decorative Paints, EBIT was up 2 percent, mainly due to higher volumes and lower costs, partly offset by unfavorable currencies
- In Performance Coatings, EBIT was down 5 percent with continuous improvement initiatives and lower costs more than offset by adverse currencies and lower volumes
- In Specialty Chemicals, EBIT was up 3 percent due to improved volumes and operational efficiencies
- EBIT in other activities improved due to lower costs, in particular corporate costs and pensions
Raw material prices were lower, although in most regions foreign currency effects adversely impacted raw material costs in local currencies.
Operating income
Operating income was positively impacted by primarily non-cash incidental items with a net effect of €12 million, including adjustments to provisions, amongst other for post-retirement benefits, and asset impairments. The incidental items impacted operating income of Decorative Paints, Performance Coatings and the operating income in other activities.
Net financing expenses
Net financing expenses increased as reduced external interest expenses were more than offset by higher interest expenses on provisions.
Tax
The year-to-date effective tax rate was 28 percent (2015: 27 percent), impacted by non-taxable gains and adjustments to previous years.
Net income
Year-to-date net income attributable to shareholders was up 8 percent at €837 million (2015: €776 million). Net income attributable to shareholders in Q3 was €285 million (2015: €285 million).
EBIT (operating income excluding incidental items)
| Third quarter | January-September | ||||
|---|---|---|---|---|---|
| 2015 | 2016 | ∆% in € millions | 2015 | 2016 | ∆% |
| 121 | 123 | 2 Decorative Paints | 299 | 306 | 2 |
| 210 | 199 | (5) Performance Coatings | 600 | 607 | 1 |
| 163 | 168 | 3 Specialty Chemicals | 488 | 511 | 5 |
| (58) | (48) | Other activities/eliminations | (193) | (157) | |
| 436 | 442 | 1 Total | 1,194 | 1,267 | 6 |
Operating income
| Third quarter | January-September | ||||
|---|---|---|---|---|---|
| 2015 | 2016 | ∆% in € millions | 2015 | 2016 | ∆% |
| 121 | 132 | 9 Decorative Paints | 299 | 315 | 5 |
| 210 | 192 | (9) Performance Coatings | 600 | 600 | – |
| 163 | 168 | 3 Specialty Chemicals | 518 | 511 | (1) |
| (58) | (38) | Other activities/eliminations | (189) | (124) | |
| 436 | 454 | 4 Total | 1,228 | 1,302 | 6 |
Operating income to net income
| Third quarter | January-September | ||
|---|---|---|---|
| 2015 | 2016 in € millions | 2015 | 2016 |
| 436 | 454 Operating income | 1,228 | 1,302 |
| (28) | (33) Net financing expenses | (96) | (82) |
| 6 | 10 Results from associates and joint ventures |
12 | 38 |
| 414 | 431 Profit before tax | 1,144 | 1,258 |
| (114) | (131) Income tax | (304) | (355) |
| 300 | 300 Profit from continuing operations |
840 | 903 |
| 1 | – Profit from discontinued operations |
(3) | (1) |
| 301 | 300 Profit for the period | 837 | 902 |
| (16) | (15) Non-controlling interests | (61) | (65) |
| 285 | 285 Net income | 776 | 837 |
Decorative Paints
- Volumes increased 3 percent due to positive developments in Asia and EMEA
- Revenue down 3 percent, mainly due to unfavorable currency effects
- EBIT up 2 percent, mainly due to higher volumes and lower costs, partly offset by unfavorable currencies
- ROS was up at 12.0 percent (2015: 11.5 percent); ROI increased to 12.5 percent (2015: 10.6 percent)
Volumes were up in Asia and EMEA, while volumes continued to be lower in Latin America. Revenue decreased 3 percent with positive volumes more than offset by unfavorable currency effects.
EBIT was up 2 percent, mainly due to higher volumes and lower costs, partly offset by unfavorable currencies. Operating income was positively impacted by incidental items.
Europe, Middle East and Africa (EMEA)
Volumes were up, while revenue reduced 4 percent due to unfavorable currencies and price/mix effects. Demand trends differed per country in the region and uncertainty continued in some markets. Currency volatility remained, including for the pound sterling.
Latin America
Revenue decreased 6 percent mainly due to adverse currency effects. Market conditions in the region remained challenging due to economic instability and currency devaluation. Improvement actions and cost control remained the focus in the region.
Revenue development Q3 2016
Increase Decrease
Asia
Positive demand trends in many Asian markets continued and revenue increased 2 percent. Volumes increased, including in China, despite continued challenging conditions in the Chinese construction market.
Research shows that many consumers struggle with color choices and seek ideas for home decoration. Global marketing tools and initiatives such as our 2017 Color of the Year – Denim Drift – help inspire customers to make confident color choices and drive growth for our business.
| Revenue | |||||
|---|---|---|---|---|---|
| Third quarter | January-September 2016 ∆% 1,722 (4) 339 (18) 880 – (4) 2,937 (5) 315 5 306 2 10.4 2,820 12.5 |
||||
| 2015 | 2016 ∆% in € millions | 2015 | |||
| 610 | 583 | (4) Deco Europe, Middle East and Africa | 1,787 | ||
| 143 | 134 | (6) Decorative Paints Latin America | 414 | ||
| 300 | 307 | 2 Decorative Paints Asia | 876 | ||
| (3) | Other/intragroup eliminations | ||||
| 1,052 | 1,021 | (3) Total | 3,076 | ||
| 121 | 132 | 9 Operating income | 299 | ||
| 121 | 123 | 2 EBIT | 299 | ||
| 11.5 | 12.0 | ROS% * | 9.7 | ||
| Average invested capital | 2,978 | ||||
| Moving average ROI (in %) * | 10.6 | ||||
| 37 | 9 | Capital expenditures | 113 | 61 | |
| Number of employees | 15,100 14,800 |
* ROS% = EBIT/Revenue. Moving average ROI (in %) = 12 months EBIT/12 months average invested capital
Performance Coatings
- Volumes down 2 percent affected by adverse conditions in the marine and oil and gas industries, partly offset by positive developments in other segments
- Revenue down 6 percent, due to adverse currencies, lower volumes and adverse price/mix effects
- EBIT was down 5 percent with continuous improvement initiatives and lower costs more than offset by adverse currencies and lower volumes
- Profitability continued to improve. ROS was up at 14.2 percent (2015: 14.1 percent); ROI increased to 30.9 percent (2015: 26.5 percent)
Volumes were down 2 percent affected by adverse conditions in the marine and oil and gas industries. Demand trends differed per segment and region. Revenue was down 6 percent due to unfavorable currencies, lower volumes and adverse price/mix effects.
EBIT was down 5 percent with continuous improvement initiatives and lower costs more than offset by adverse currencies and lower volumes. Operating income was negatively impacted by incidental items.
Marine and Protective Coatings
Volumes in Marine Coatings were impacted by the slowdown of new build activity in Asia, as well as maintenance and dry docking. Protective Coatings volumes remained robust despite some headwinds in the oil and gas industry. Revenue was down 9 percent.
Automotive and Specialty Coatings
Volumes were up due to strong Automotive and Consumer Electronics demand in Asia offsetting weaker demand in Automotive in North America. Revenue was down 2 percent despite higher volumes.
Industrial and Powder Coatings
Volume developments were mixed per region for both Wood and Metal Coatings. Volumes were up for Powder Coatings. Revenue was down 6 percent overall.
Revenue development Q3 2016
Increase Decrease
Intended acquisition of BASF's Industrial Coatings business
In Q1 2016, the intended acquisition of BASF's Industrial Coatings business was announced. The business generated revenue of about €300 million in 2015 and supplies products for a number of end uses, including coil, furniture foil and panel coatings, wind energy and general industry, and commercial transport. The planned transaction is expected to be completed towards the end of 2016.
We recently broke ground on a €9 million powder coatings plant in Mumbai that will bring us closer to our customers in the north and west of India and will also provide several innovative lines new to the Indian market, including bonded metallic products for the pipe and rebar markets.
| Revenue | |||||
|---|---|---|---|---|---|
| Third quarter | January-September | ||||
| 2015 | 2016 ∆% in € millions | 2015 | 2016 ∆% | ||
| 399 | 364 | (9) Marine and Protective Coatings | 1,170 | 1,116 | (5) |
| 378 | 369 | (2) Automotive and Specialty Coatings | 1,155 | 1,127 | (2) |
| 724 | 683 | (6) Industrial and Powder Coatings | 2,169 | 2,053 | (5) |
| (8) | (10) | Other/intragroup eliminations | (21) | (29) | |
| 1,493 | 1,406 | (6) Total | 4,473 | 4,267 | (5) |
| 210 | 192 | (9) Operating income | 600 | 600 | – |
|---|---|---|---|---|---|
| 210 | 199 | (5) EBIT | 600 | 607 | 1 |
| 14.1 | 14.2 | ROS% * | 13.4 | 14.2 | |
| Average invested capital | 2,672 | 2,586 | |||
| Moving average ROI (in %) * | 26.5 | 30.9 | |||
| 36 | 35 | Capital expenditures | 100 | 106 | |
| Number of employees | 19,500 19,400 |
* ROS% = EBIT/Revenue. Moving average ROI (in %) = 12 months EBIT/12 months average invested capital
Specialty Chemicals
- Volumes up 1 percent with positive developments, especially in Industrial Chemicals, partly offset by lower demand in the oil related segments
- Revenue down 3 percent, mainly due to price deflation in several markets
- EBIT up 3 percent due to improved volumes and operational efficiencies
- ROS was up at 14.0 percent (2015: 13.2 percent); ROI increased to 17.2 percent (2015: 16.4 percent)
Our customers are looking for more sustainable solutions. We recently launched an essential ingredient for outdoor cleaning products that successfully meets stringent US Environmental Protection Agency (EPA) environmental standards for direct release without compromising on performance.
| Revenue |
|---|
| Third quarter | January-September | ||||
|---|---|---|---|---|---|
| 2015 | 2016 ∆% in € millions | 2015 | 2016 ∆% | ||
| 453 | 424 | (6) Functional Chemicals | 1,414 | 1,305 | (8) |
| 304 | 314 | 3 Industrial Chemicals | 896 | 906 | 1 |
| 265 | 262 | (1) Surface Chemistry | 824 | 786 | (5) |
| 233 | 226 | (3) Pulp and Performance Chemicals | 758 | 683 (10) | |
| (20) | (24) | Other/intragroup eliminations | (71) | (66) | |
| 1,235 | 1,202 | (3) Total | 3,821 | 3,614 | (5) |
| 163 | 168 | 3 Operating income | 518 | 511 | (1) |
| 163 | 168 | 3 EBIT | 488 | 511 | 5 |
| 13.2 | 14.0 | ROS% * | 12.8 | 14.1 | |
| Average invested capital | 3,553 | 3,493 | |||
| Moving average ROI (in %) * | 16.4 | 17.2 | |||
| 86 | 81 | Capital expenditures | 201 | 228 |
* ROS% = EBIT/Revenue. Moving average ROI (in %) = 12 months EBIT/12 months average invested capital
Number of employees 9,100 9,000
Volumes were up 1 percent with positive developments, especially in Industrial Chemicals, partly offset by lower demand in the oil related segments. Revenue was down 3 percent, mainly due to price deflation in several markets.
EBIT and operating income were up 3 percent due to improved volumes and operational efficiencies.
In Q2 2015, the divestment of the Paper Chemicals business was closed and resulted in a year-to-date book profit net of related costs of €30 million in operating income.
Functional Chemicals
Volumes improved with positive developments in the Americas and Asia. The previous year was impacted by severe logistical constraints caused by the incident at the port in Tianjin. Revenue was down 6 percent, due to price deflation and adverse currency effects.
Industrial Chemicals
Volumes were up due to increased demand and higher supply chain availability in Frankfurt and Rotterdam. Revenue was up 3 percent.
Revenue development Q3 2016
Surface Chemistry
Volume development was positive in Europe and Asia. Revenue was down 1 percent due to price deflation in the oil related segments.
Pulp and Performance Chemicals
Volumes were up in Asia, while demand in other regions was subdued. Revenue was down 3 percent due to lower volumes and price deflation.
Condensed financial statements
Consolidated statement of income
| Third quarter | |
|---|---|
| 2015 | |
| Continuing operations | |
| 3,760 | |
| (2,194) | |
| 1,566 | |
| (1,130) | |
| – | |
| 436 | |
| (28) | |
| joint ventures | 6 |
| 414 | |
| (114) | |
| continuing operations | 300 |
| 2016 in € millions 3,600 Revenue (2,062) Cost of sales 1,538 Gross profit (1,096) SG&A costs 12 Incidentals 454 Operating income (33) Net financing expenses 10 Results from associates and 431 Profit before tax (131) Income tax 300 Profit for the period from |
| Discontinued operations | ||||
|---|---|---|---|---|
| 1 | – Profit for the period from discontinued operations |
(3) | (1) | |
| 301 | 300 Profit for the period | 837 | 902 | |
| Attributable to | ||||
| 285 | 285 Shareholders of the company | 776 | 837 | |
| 16 | 15 Non-controlling interests | 61 | 65 |
301 300 Profit for the period 837 902
Consolidated statement of comprehensive income
| Third quarter | January-September | ||
|---|---|---|---|
| 2015 | 2016 in € millions | 2015 | 2016 |
| 301 | 300 Profit for the period | 837 | 902 |
| Other comprehensive income | |||
| (382) | (112) Exchange differences arising on translation of foreign operations |
32 | (288) |
| (12) | 17 Cash flow hedges | (17) | 34 |
| 205 | (646) Post-retirement benefits | (433) | (716) |
| 7 | (14) Tax relating to components of other comprehensive income |
7 | 141 |
| (182) | (755) Other comprehensive income for the period (net of tax) |
(411) | (829) |
| 119 | (455) Comprehensive income for the period |
426 | 73 |
| Comprehensive income for the period attributable to | |||
| 126 | (487) Shareholders of the company | 357 | 19 |
| (7) | 32 Non-controlling interests | 69 | 54 |
| 119 | (455) Comprehensive income for the period |
426 | 73 |
Condensed consolidated balance sheet
| in € millions | December 31, 2015 |
September 30, 2016 |
|---|---|---|
| Assets | ||
| Non-current assets | ||
| Intangible assets | 4,156 | 3,969 |
| Property, plant and equipment | 4,003 | 3,990 |
| Other financial non-current assets | 2,125 | 1,836 |
| Total non-current assets | 10,284 | 9,795 |
| Current assets | ||
| Inventories | 1,504 | 1,568 |
| Trade and other receivables | 2,741 | 2,946 |
| Cash and cash equivalents | 1,365 | 1,682 |
| Other current assets | 69 | 54 |
| Total current assets | 5,679 | 6,250 |
| Total assets | 15,963 | 16,045 |
| Equity and liabilities | ||
| Total equity | 6,980 | 6,840 |
| Non-current liabilities | ||
| Provisions and deferred tax liabilities | 2,225 | 2,326 |
| Long-term borrowings | 2,161 | 2,638 |
| Total non-current liabilities | 4,386 | 4,964 |
| Current liabilities | ||
| Short-term borrowings | 430 | 163 |
| Trade and other payables | 3,473 | 3,375 |
| Other short-term liabilities | 694 | 703 |
| Total current liabilities | 4,597 | 4,241 |
| Total equity and liabilities | 15,963 | 16,045 |
Changes in equity
| in € millions | Subscribed share capital |
Additional paid-in capital |
Cashflow hedge reserve |
Cumulative translation reserves |
Other reserves | Shareholders' equity |
Non-controlling interests |
Group equity |
|---|---|---|---|---|---|---|---|---|
| Balance at January 1, 2015 | 492 | 463 | (19) | (43) | 4,897 | 5,790 | 477 | 6,267 |
| Profit for the period | – | – | – | – | 776 | 776 | 61 | 837 |
| Other comprehensive income | – | – | (13) | 36 | (442) | (419) | 8 | (411) |
| Comprehensive income for the period | – | – | (13) | 36 | 334 | 357 | 69 | 426 |
| Dividend paid | 3 | 103 | – | – | (276) | (170) | (46) | (216) |
| Equity-settled transactions | – | – | – | – | 24 | 24 | – | 24 |
| Issue of common shares | 2 | (2) | – | – | – | – | 2 | 2 |
| Acquisitions and divestments | – | – | – | – | (3) | (3) | 1 | (2) |
| Balance at September 30, 2015 | 497 | 564 | (32) | (7) | 4,976 | 5,998 | 503 | 6,501 |
| Balance at January 1, 2016 | 498 | 598 | (42) | 81 | 5,349 | 6,484 | 496 | 6,980 |
| Profit for the period | – | – | – | – | 837 | 837 | 65 | 902 |
| Other comprehensive income | – | – | 26 | (307) | (537) | (818) | (11) | (829) |
| Comprehensive income for the period | – | – | 26 | (307) | 300 | 19 | 54 | 73 |
| Dividend paid | 4 | 115 | – | – | (299) | (180) | (50) | (230) |
| Equity-settled transactions | – | – | – | – | 18 | 18 | – | 18 |
| Issue of common shares | 1 | (1) | – | – | – | – | – | – |
| Acquisitions and divestments | – | – | – | – | (2) | (2) | 1 | (1) |
| Balance at September 30, 2016 | 503 | 712 | (16) | (226) | 5,366 | 6,339 | 501 | 6,840 |
Shareholders' equity
Shareholders' equity decreased from €6.5 billion at year-end 2015 to €6.3 billion at the end of September 2016, mainly due to the net effect of:
- Profit for the period of €837 million
- A net negative effect of €537 million for actuarial gains and losses which includes the adverse impact of the de-risking of pension liabilities and the positive impact of re-recognition of (pension related) deferred tax assets
- Negative currency effects of €307 million (and related taxes)
- Dividend payments of €180 million
Interim dividend
An interim dividend of €0.37 per share (2015: €0.35) will be paid out, with the option to elect stock dividend. Please refer to the last page of this report for dividend payment dates.
Invested capital
Invested capital at the end of Q3 2016 totaled €9.9 billion (Q3 2015: €10.2 billion), down €0.3 billion. Operating working capital was €70 million lower than September 30, 2015.
Pensions
The net balance sheet position (IAS19) of the pension plans at the end of Q3 2016 was a deficit of €1.0 billion (year-end 2015: €0.6 billion). This was the result of the net effect of:
- Lower discount rates in the key countries
- De-risking of pension liabilities through non-cash buy-in transactions totaling €3.2 billion (£1.7 billion in Q3 and £0.9 billion in the first half of 2016), related to the ICI Pension Fund, which led to an adverse €0.6 billion impact in Other comprehensive income Offset by:
- Top-up payments of €293 million, predominantly into the UK pension plans
- Higher asset returns
Workforce
At September 30, 2016, we employed 45,800 people (September 30, 2015: 45,800). With the introduction of our Global Business Services (GBS) organization as of January 1, 2016, some employees are now reported at corporate level instead of within the Business Areas.
Invested capital
| in € millions | September 30, 2015 |
December 31, 2015 |
September 30, 2016 |
|---|---|---|---|
| Trade receivables | 2,580 | 2,267 | 2,484 |
| Inventories | 1,581 | 1,504 | 1,568 |
| Trade payables | (2,291) | (2,386) | (2,252) |
| Operating working capital | 1,870 | 1,385 | 1,800 |
| Other working capital items | (833) | (787) | (910) |
| Non-current assets | 10,031 | 10,284 | 9,795 |
| Less investments in associates and joint ventures | (167) | (165) | (162) |
| Less pension assets | (317) | (528) | (310) |
| Deferred tax liabilities | (400) | (360) | (333) |
| Invested capital | 10,184 | 9,829 | 9,880 |
Operating working capital
In % of revenue
Cash flows and net debt
Operating activities in Q3 2016 resulted in a cash inflow of €600 million, up 3 percent (2015: €583 million).
At September 30, 2016 net debt was €1,119 million, down 35 percent on September 30, 2015 (€1,727 million).
Outlook
Outlook unchanged. The market environment remains uncertain with challenging conditions in several countries and segments. Deflationary pressures and currency headwinds are expected to continue. We maintain our financial guidance 2016-2018.
Please refer to our website for more information on our ambitions and the strategic focus areas.
Amsterdam, October 19, 2016 The Board of Management
Condensed consolidated statement of cash flows
| Third quarter | January-September | ||
|---|---|---|---|
| 2015 | 2016 in € millions | 2015 | 2016 |
| 922 | 1,254 Cash and cash equivalents at beginning of period | 1,649 | 1,317 |
| Adjustments to reconcile earnings to cash generated from operating activities | |||
| 300 | 300 Profit for the period from continuing operations | 840 | 903 |
| 154 | 152 Amortization and depreciation | 468 | 456 |
| 166 | 202 Changes in working capital | (450) | (364) |
| (74) | (137) Changes in provisions | (569) | (475) |
| 37 | 83 Other changes | 79 | 197 |
| 583 | 600 Net cash from operating activities | 368 | 717 |
| (163) | (128) Capital expenditures | (423) | (403) |
| 10 | 8 Acquisitions and divestments net of cash acquired | 122 | 31 |
| 10 | 6 Other changes | (10) | 28 |
| (143) | (114) Net cash from investing activities | (311) | (344) |
| (267) | (78) Changes from borrowings | (456) | 220 |
| (10) | (22) Dividends | (215) | (255) |
| – | (6) Other changes | (2) | (7) |
| (277) | (106) Net cash from financing activities | (673) | (42) |
| 163 | 380 Net cash used for continuing operations | (616) | 331 |
| – | – Cash flows from discontinued operations | (2) | (4) |
| 163 | 380 Net change in cash and cash equivalents of total operations | (618) | 327 |
| (44) | (2) Effect of exchange rate changes on cash and cash equivalents | 10 | (12) |
| 1,041 | 1,632 Net Cash and cash equivalents at September 30 | 1,041 | 1,632 |
| Quarterly statistics | 2015 | 2016 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | year in € millions | Q1 | Q2 | Q3 year-to-date | ||
| Revenue | |||||||||
| 890 | 1,134 | 1,052 | 931 | 4,007 Decorative Paints | 861 | 1,055 | 1,021 | 2,937 | |
| 1,430 | 1,550 | 1,493 | 1,482 | 5,955 Performance Coatings | 1,388 | 1,473 | 1,406 | 4,267 | |
| 1,296 | 1,290 | 1,235 | 1,167 | 4,988 Specialty Chemicals | 1,206 | 1,206 | 1,202 | 3,614 | |
| (25) | (25) | (20) | (21) | (91) Other activities/eliminations | (25) | (23) | (29) | (77) | |
| 3,591 | 3,949 | 3,760 | 3,559 | 14,859 Total | 3,430 | 3,711 | 3,600 | 10,741 | |
| EBITDA | |||||||||
| 88 | 165 | 159 | 83 | 495 Decorative Paints | 86 | 165 | 156 | 407 | |
| 206 | 257 | 246 | 229 | 938 Performance Coatings | 222 | 257 | 233 | 712 | |
| 242 | 243 | 242 | 171 | 898 Specialty Chemicals | 245 | 259 | 250 | 754 | |
| (74) | (55) | (57) | (57) | (243) Other activities/eliminations | (66) | (39) | (45) | (150) | |
| 462 | 610 | 590 | 426 | 2,088 Total | 487 | 642 | 594 | 1,723 | |
| 12.9 | 15.4 | 15.7 | 12.0 | 14.1 EBITDA margin (in %) | 14.2 | 17.3 | 16.5 | 16.0 | |
| Depreciation | |||||||||
| (26) | (26) | (27) | (26) | (105) Decorative Paints | (23) | (25) | (23) | (71) | |
| (25) | (26) | (26) | (27) | (104) Performance Coatings | (26) | (25) | (25) | (76) | |
| (66) | (68) | (66) | (69) | (269) Specialty Chemicals | (69) | (68) | (70) | (207) | |
| (3) | (3) | (1) | (2) | (9) Other activities/eliminations | (2) | (2) | (3) | (7) | |
| (120) | (123) | (120) | (124) | (487) Total | (120) | (120) | (121) | (361) | |
| Amortization | |||||||||
| (12) | (11) | (11) | (11) | (45) Decorative Paints | (11) | (9) | (10) | (30) | |
| (11) | (11) | (10) | (10) | (42) Performance Coatings | (10) | (10) | (9) | (29) | |
| (13) | (13) | (13) | (12) | (51) Specialty Chemicals | (12) | (12) | (12) | (36) | |
| – | – | – | (1) | (1) Other activities/eliminations | – | – | – | – | |
| (36) | (35) | (34) | (34) | (139) Total | (33) | (31) | (31) | (95) | |
| EBIT (operating income excluding incidental items) | |||||||||
| 50 | 128 | 121 | 46 | 345 Decorative Paints | 52 | 131 | 123 | 306 | |
| 170 | 220 | 210 | 192 | 792 Performance Coatings | 186 | 222 | 199 | 607 | |
| 163 | 162 | 163 | 90 | 578 Specialty Chemicals | 164 | 179 | 168 | 511 | |
| (77) | (58) | (58) | (60) | (253) Other activities/eliminations | (68) | (41) | (48) | (157) | |
| 306 | 452 | 436 | 268 | 1,462 Total | 334 | 491 | 442 | 1,267 | |
| 8.5 | 11.4 | 11.6 | 7.5 | 9.8 ROS (in %) | 9.7 | 13.2 | 12.3 | 11.8 |
| Quarterly statistics | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2015 | 2016 | ||||||||
| Q1 | Q2 | Q3 | Q4 | year in € millions | Q1 | Q2 | Q3 year-to-date | ||
| Operating income | |||||||||
| 50 | 128 | 121 | 46 | 345 Decorative Paints | 52 | 131 | 132 | 315 | |
| 170 | 220 | 210 | 192 | 792 Performance Coatings | 186 | 222 | 192 | 600 | |
| 163 | 192 | 163 | 91 | 609 Specialty Chemicals | 164 | 179 | 168 | 511 | |
| (77) | (54) | (58) | 16 | (173) Other activities/eliminations | (45) | (41) | (38) | (124) | |
| 306 | 486 | 436 | 345 | 1,573 Total | 357 | 491 | 454 | 1,302 | |
| Incidentals per Business Area | |||||||||
| – | – | – | – | – Decorative Paints | – | – | 9 | 9 | |
| – | – | – | – | – Performance Coatings | – | – | (7) | (7) | |
| – | 30 | – | 1 | 31 Specialty Chemicals | – | – | – | – | |
| – | 4 | – | 76 | 80 Other activities/eliminations | 23 | – | 10 | 33 | |
| – | 34 | – | 77 | 111 Total | 23 | – | 12 | 35 | |
| Reconciliation net financing expense | |||||||||
| 10 | 4 | 7 | 7 | 28 Financing income | 5 | 11 | 8 | 24 | |
| (38) | (31) | (29) | (27) | (125) Financing expenses | (27) | (23) | (25) | (75) | |
| (28) | (27) | (22) | (20) | (97) Net interest on net debt | (22) | (12) | (17) | (51) | |
| Other interest movements | |||||||||
| (4) | (3) | (4) | (2) | (13) Financing expenses related to pensions | (2) | (2) | (2) | (6) | |
| (9) | (1) | (7) | – | (17) Interest on provisions | (11) | (8) | (14) | (33) | |
| – | 4 | 5 | 4 | 13 Other items | 8 | – | – | 8 | |
| (13) | – | (6) | 2 | (17) Net other financing charges | (5) | (10) | (16) | (31) | |
| (41) | (27) | (28) | (18) | (114) Net financing expenses | (27) | (22) | (33) | (82) | |
| Quarterly net income analysis | |||||||||
| (2) | 8 | 6 | 5 | 17 Results from associates and joint ventures | 20 | 8 | 10 | 38 | |
| (18) | (27) | (16) | (26) | (87) Profit attributable to non-controlling interests | (23) | (27) | (15) | (65) | |
| 263 | 467 | 414 | 332 | 1,476 Profit before tax | 350 | 477 | 431 | 1,258 | |
| (82) | (108) | (114) | (112) | (416) Income tax | (86) | (138) | (131) | (355) | |
| 181 | 359 | 300 | 220 | 1,060 Profit for the period from continuing operations | 264 | 339 | 300 | 903 | |
| 31 | 23 | 28 | 34 | 28 Effective tax rate (in %) | 25 | 29 | 30 | 28 |
| Quarterly statistics | ||
|---|---|---|
| -- | ---------------------- | -- |
| 2015 | 2016 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | year | Q1 | Q2 | Q3 year-to-date | ||
| Earnings per share from continuing operations (in €) | |||||||||
| 0.66 | 1.35 | 1.15 | 0.78 | 3.93 Basic | 0.96 | 1.24 | 1.13 | 3.34 | |
| 0.66 | 1.34 | 1.14 | 0.77 | 3.90 Diluted | 0.96 | 1.24 | 1.13 | 3.32 | |
| Earnings per share from discontinued operations (in €) | |||||||||
| (0.01) | (0.01) | – | 0.04 | 0.02 Basic | – | – | – | – | |
| (0.01) | (0.01) | – | 0.04 | 0.02 Diluted | – | – | – | – | |
| Earnings per share from total operations (in €) | |||||||||
| 0.65 | 1.34 | 1.15 | 0.82 | 3.95 Basic | 0.96 | 1.24 | 1.13 | 3.34 | |
| 0.65 | 1.33 | 1.14 | 0.81 | 3.92 Diluted | 0.96 | 1.24 | 1.13 | 3.32 | |
| Number of shares (in millions) | |||||||||
| 246.4 | 247.7 | 248.4 | 248.7 | 247.8 Weighted average number of shares | 249.5 | 250.6 | 251.6 | 250.6 | |
| 246.9 | 248.4 | 248.4 | 249.0 | 249.0 Number of shares at end of quarter | 249.6 | 251.6 | 251.6 | 251.6 | |
| Adjusted earnings (in € millions) | |||||||||
| 263 | 467 | 414 | 332 | 1,476 Profit before tax from continuing operations | 350 | 477 | 431 | 1,258 | |
| – | (34) | – | (77) | (111) Incidentals reported in operating income | (23) | – | (12) | (35) | |
| 36 | 35 | 34 | 34 | 139 Amortization of intangible assets | 33 | 31 | 31 | 95 | |
| (93) | (118) | (125) | (85) | (421) Adjusted income tax | (95) | (149) | (132) | (376) | |
| (18) | (27) | (16) | (26) | (87) Non-controlling interests | (23) | (27) | (15) | (65) | |
| 188 | 323 | 307 | 178 | 996 Adjusted net income for continuing operations | 242 | 332 | 303 | 877 | |
| 0.76 | 1.30 | 1.24 | 0.72 | 4.02 Adjusted earnings per share (in €) | 0.97 | 1.32 | 1.20 | 3.50 |
Notes to the condensed financial statements
Accounting policies and restatements
This interim financial report is in compliance with IAS 34 "Interim Financial Reporting". This report is unaudited. The IFRS changes applicable as from January 1, 2016 do not have any or only an immaterial effect on our Consolidated financial statements. Otherwise the accounting principles are as applied in the 2015 financial statements.
Seasonality
Revenue and results in Decorative Paints are impacted by seasonal influences. Revenue and profitability tend to be higher in the second and third quarter of the year as weather conditions determine whether paints and coatings can be applied. In Performance Coatings, revenue and profitability vary with building patterns from original equipment manufacturers. In Specialty Chemicals, the Functional Chemicals and the Surface Chemistry businesses experience seasonal influences. Revenue and profitability are affected by developments in the agricultural season and tend to be higher in the first half of the year.
Other activities
In other activities, we report activities which are not allocated to a particular Business Area. Corporate costs are the unallocated costs of our head office and shared services center in the Netherlands and also include country holdings. Pensions reflects pension costs after the elimination of interest cost (reported as financing expenses). Insurances are the results from our captive insurance companies. Other costs include the cost of share-based compensation, the results of treasury and legacy operations.
Glossary
Adjusted earnings per share are the basic earnings per share from continuing operations excluding incidentals in operating income, amortization of intangible assets and tax on these adjustments.
Comprehensive income is 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.
EBIT is operating income excluding incidental items.
Emerging Europe: Central and Eastern Europe (excluding Austria), Baltic States and Turkey.
Incidental results are special charges and benefits, results on acquisitions and divestments, major impairment charges, and charges related to major legal, anti-trust, and environmental cases.
Invested capital is total assets (excluding cash and cash equivalents, 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.
Mature markets comprise of Western Europe, the US, Canada, Japan and Oceania.
Net debt is defined as long-term borrowings plus short-term borrowings less cash and cash equivalents.
Operating income is defined in accordance with IFRS and includes the incidental results.
Operating working capital is defined as the sum of inventories, trade receivables and trade payables of the total company. When expressed as a ratio, operating working capital is measured against four times last quarter revenue.
ROI is calculated as EBIT of the last twelve months as percentage of average invested capital.
ROS is EBIT as percentage of revenue.
OPI margin% is operating income as percentage of revenue.
SG&A costs includes selling and distribution expenses, general and administrative expenses and research, development and innovation expenses.
Safe Harbor Statement
This report contains statements which address such key issues 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 forecast 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. 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.
Brand and trademarks
In this report, reference is made to brands and trademarks owned by, or licensed to, AkzoNobel. Unauthorized use of these is strictly prohibited.
Akzo Nobel N.V.
Christiaan Neefestraat 2 P.O. Box 75730 1070 AS Amsterdam, the Netherlands T +31 88 969 7555 Internet: www.akzonobel.com
For more information:
The explanatory sheets used during the press conference can be viewed on AkzoNobel's corporate website www.akzonobel.com/quarterlyresults AkzoNobel Global Communications T +31 88 969 7833 E [email protected]
AkzoNobel Investor Relations T +31 88 969 7856 E [email protected]
Financial calendar
Ex-dividend of 2016 interim dividend October 21, 2016 Record date of 2016 interim dividend October 24, 2016 Election period cash or stock interim dividend October 25, 2016 – November 16, 2016 Payment of cash dividend and delivery of new shares November 23, 2016 Report for the full-year 2016 and the fourth quarter February 15, 2017 Report for the first quarter 2017 April 24, 2017 Annual General Meeting of shareholders April 25, 2017 Report for the 2nd quarter 2017 July 25, 2017
Report for the 3rd quarter 2017 October 17, 2017
www.akzonobel.com
AkzoNobel creates everyday essentials to make people's lives more liveable 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 color 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 wellknown 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.
Mediabericht
19 oktober 2016
AkzoNobel publiceert resultaten derde kwartaal 2016
Winstgevendheid toegenomen in een omgeving van gemengde volumegroei Interimdividend verhoging. Valutaire tegenwind houdt aan
Akzo Nobel N.V. (AKZA.AS; AKZOY)
- Volumegroei bij Decorative Paints en Specialty Chemicals; algehele volumes vlak
- Omzet daalde 4 procent tot €3,6 miljard, als gevolg van negatieve valuta- en prijs/mix-effecten
- EBIT* steeg met 1 procent tot €442 miljoen (2015: €436 miljoen), als gevolg van initiatieven voor prestatieverbetering en lagere kosten, deels geneutraliseerd door negatieve valutaeffecten
- Bedrijfsresultaat steeg met 4 procent tot €454 miljoen (2015: €436 miljoen), positief beïnvloed door incidentele posten
- Rendement op verkopen (ROS)** verbeterde tot 12,3 procent (2015: 11,6 procent) en rendement op investeringen (ROI)** verbeterde tot 15,2 procent (2015: 13,0 procent). ROS en ROI verbeterden in alle drie de bedrijfsonderdelen
- Nettoresultaat voor aandeelhouders was €285 miljoen (2015: €285 miljoen)
- Aangepaste winst per aandeel (EPS) was €1,20 (2015: €1,24)
- Netto kasinstroom uit operationele activiteiten steeg tot €600 miljoen (2015: €583 miljoen)
- Interim dividend steeg met 6 procent tot €0,37 per aandeel (2015: €0,35)
- Verdere risicovermindering van pensioenverplichtingen
- Vooruitzichten onveranderd: De marktomgeving blijft onzeker met in verschillende landen en segmenten uitdagende omstandigheden. Deflatoire druk en valutategenwind zullen naar verwachting aanhouden. Wij handhaven onze financiële leidraad voor 2016-2018.
AkzoNobel maakte vandaag een derde kwartaal bekend met volumegroei in Decorative Paints en Specialty Chemicals met een verdere algehele groei in winstgevendheid ondanks uitdagende omstandigheden in verschillende landen en segmenten. De EBIT steeg met 1 procent tot €442 miljoen en het rendement op verkopen verbeterde tot 12,3 procent (2015: 11,6 procent). De algehele volumes waren vlak en de omzet daalde met 4 procent tot €3,6 miljard als gevolg van negatieve valuta- en prijs/mix-effecten. Het rendement op investeringen bedroeg 15,2 procent (2015: 13,0 procent).
CFO Maëlys Castella:
"In het derde kwartaal realiseerden we een verdere groei in winstgevendheid met een hoger rendement in alle bedrijfsonderdelen en positieve volume-ontwikkelingen bij Decorative Paints en Specialty Chemicals. We boeken vooruitgang met onze programma's voor verbetering en behouden een sterke cash discipline. We hebben besloten om het interimdividend te verhogen met 6 procent tot €0,37 per aandeel.
Onze focus blijft gericht op prestatieverbetering en organische groei. We zijn begonnen met de bouw van een fabriek voor poedercoatings in Mumbai, wat ons dichter bij onze klanten brengt in het noorden en westen van India. Ook introduceerden we innovatieve producten met belangrijke duurzaamheidsvoordelen voor onze klanten, zoals Berol DR-B1, een direct release surfactant en Aquasilk, een wood coating op waterbasis. Denim Drift werd geïntroduceerd als onze Color of the Year 2017."
Christian Neefestraat 2 T +31 088 969 7833 P.O. Box 75730 www.akzonobel.com 1070 AS Amsterdam Netherlands
1077 WW Amsterdam E [email protected]
* Bedrijfsresultaat exclusief incidentele posten
** ROS% is EBIT gedeeld door omzet
Voortschrijdend gemiddelde ROI% is 12 maanden EBIT gedeeld door 12 maanden gemiddeld geïnvesteerd vermogen
3e kwartaal 2016 in € miljoen
| Q3 2015 | Q3 2016 | Δ % | |
|---|---|---|---|
| Omzet | 3.760 | 3.600 | (4) |
| Bedrijfsresultaat | 436 | 454 | 4 |
| EBIT (bedrijfsresultaat excl. incidentele | 436 | 442 | 1 |
| posten) | |||
| Rendement op verkopen (ROS) %** | 11,6 | 12,3 | |
| Nettoresultaat voor aandeelhouders | 285 | 285 | – |
Januari - september 2016 in € miljoen
| cumulatief 2015 | cumulatief 2016 | Δ % | |
|---|---|---|---|
| Omzet | 11.300 | 10.741 | (5) |
| Bedrijfsresultaat | 1.228 | 1.302 | 6 |
| EBIT (bedrijfsresultaat excl. incidentele | 1.194 | 1.267 | 6 |
| posten) Rendement op verkopen (ROS) %** |
10,6 | 11,8 | |
| Nettoresultaat voor aandeelhouders | 776 | 837 | 8 |
Decorative Paints: De volumes stegen met 3 procent als gevolg van positieve ontwikkelingen in Azië en EMEA, terwijl volumes in Latijns-Amerika lager bleven. De omzet daalde met 3 procent, voornamelijk als gevolg van ongunstige valuta-effecten. We introduceerden onze Color of the Year 2017, Denim Drift, om onze klanten te bijven inspireren om een overtuigde kleurkeuze te maken en groei te stimuleren voor onze onderneming.
Performance Coatings: De volumes daalden 2 procent door negatieve omstandigheden in de scheepvaart en olie- en gasindustrie, deels geneutraliseerd door positieve ontwikkelingen in andere segmenten, waaronder Automotive en Specialty Coatings. De omzet daalde 6 procent door ongunstige valuta's, lagere volumes en negatieve prijs/mix-effecten. De voorgenomen overname van BASF's Industrial Coatings business zal naar verwachting tegen het einde van 2016 worden voltooid. In Mumbai werd de eerste paal geslagen voor een fabriek voor poedercoatings ter waarde van €9 miljoen die diverse innovatieve lijnen produceert voor de Indiase markt en waarmee klanten in het noorden en westen van India beter kunnen worden bediend.
Specialty Chemicals: De volumes stegen met 1 procent door positieve ontwikkelingen, in het bijzonder binnen Industrial Chemicals, deels geneutraliseerd door verminderde vraag in de oliegerelateerde segmenten. De omzet daalde met 3 procent, voornamelijk als gevolg van prijsdeflatie in diverse markten. We introduceerden de surfactant Berol DR-B1, een essentieel ingrediënt voor reinigingsmiddelen voor buitengebruik. Dit product voldoet aan de stringente milieunormen van het Amerikaanse Environmental Protection Agency (EPA), zonder dat de prestaties nadelig worden beïnvloed.
Duurzaamheid, Human Cities, Innovatie: We bereikten diverse mijlpalen afgelopen kwartaal, waaronder; de introductie van Aquasilk, een wood coating op waterbasis waarmee klanten in China kunnen voldoen aan strenge lokale milieunormen; een toevoeging aan onze bekroonde reeks
Intersleek marine foul release coatings welke een biologisch hernieuwbare grondstof bevat; en de ondertekening van een uniek Human Cities-project voor renovatie van vier historische plaatsen in Jing'an in China.
Hoogtepunten per bedrijfsonderdeel in € miljoen
| Decorative Paints | ||||||
|---|---|---|---|---|---|---|
| Q3 2015 | Q3 2016 | Δ% | YTD 2015 | YTD 2016 | Δ% | |
| 1.052 | 1.021 | (3) | Omzet | 3.076 | 2.937 | (5) |
| 121 | 132 | 9 | Bedrijfsresultaat | 299 | 315 | 5 |
| 121 | 123 | 2 | EBIT (bedrijfsresultaat excl. incidentele posten) |
299 | 306 | 2 |
| 11,5 | 12,0 | ROS %** | 9,7 | 10,4 | ||
| Performance Coatings | ||||||
| Q3 2015 | Q3 2016 | Δ% | YTD 2015 | YTD 2016 | Δ% | |
| 1.493 | 1.406 | (6) | Omzet | 4.473 | 4.267 | (5) |
| 210 | 192 | (9) | Bedrijfsresultaat | 600 | 600 | - |
| 210 | 199 | (5) | EBIT (bedrijfsresultaat excl. incidentele posten) |
600 | 607 | 1 |
| 14,1 | 14,2 | ROS %** | 13,4 | 14,2 | ||
| Specialty Chemicals | ||||||
| Q3 2015 | Q3 2016 | Δ% | YTD 2015 | YTD 2016 | Δ% | |
| 1.235 | 1.202 | (3) | Omzet | 3.821 | 3.614 | (5) |
| 163 | 168 | 3 | Bedrijfsresultaat | 518* | 511 | (1) |
| 163 | 168 | 3 | EBIT (bedrijfsresultaat excl. incidentele posten) |
488 | 511 | 5 |
| 13,2 | 14,0 | ROS %** | 12,8 | 14,1 |
Het rapport van het 3e kwartaal 2016 kan worden gelezen en gedownload via www.akzonobel.com/quarterlyresults.
* Inclusief een boekwinst van €30 miljoen in Q2 2015 gerelateerd aan de desinvestering van Paper Chemicals, na aftrek van de daarmee gepaard gaande kosten.
** ROS% is EBIT gedeeld door omzet
Voortschrijdend gemiddelde ROI% is 12 maanden EBIT gedeeld door 12 maanden gemiddeld geïnvesteerd vermogen
AkzoNobel maakt essentiële producten die inspireren en het dagelijks leven prettiger maken. Als internationaal vooraanstaande verf- en coatingsonderneming en een belangrijk producent van specialistische chemicaliën leveren we essentiële ingrediënten, essentiële bescherming en essentiële kleuren voor consumenten en industrie wereldwijd. We hebben een rijke geschiedenis en zijn pioniers in duurzame technologie en innovatieve producten, die tegemoet komen aan de groeiende behoeften van onze snel veranderende planeet en tegelijkertijd het leven makkelijker maken. Ons hoofdkantoor staat in Amsterdam en we hebben 45.000 medewerkers in 80 landen. Tot onze merken behoren bekende namen als Flexa, Sikkens en Jozo. We hebben een permanente leiderschapspositie op het gebied van duurzaamheid. Van daaruit zetten we ons in om steden en omgevingen levendiger te maken, te beschermen, en kleur te geven.
Niet voor publicatie – voor meer informatie
T +31 (0)88 – 969 7833 T +31 (0)88 – 969 7590 Contact: Andrew Wood Contact: Lloyd Midwinter
Corporate Media Relations Corporate Investor Relations
Safe Harbor Statement
This press release contains statements which address 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. 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
Our return on sales and return on investment continued to improve
ROS 12.3% ROI 15.2% "We achieved further growth in profi tability and positive volume growth in Decorative Paints and Specialty Chemicals"
Q3 2016
Q2 2016
Maëlys Castella, CFO
WE CREATE EVERYDAY ESSENTIALS TO MAKE PEOPLE'S LIVES MORE LIVEABLE AND INSPIRING
Essential ingredients Essential protection Essential color
CARING FOR THE ENVIRONMENT
An essential new ingredient which reduces the added stress extra cleaning puts on the environment was launched by our Surface Chemistry business. Berol DR-B1 is suitable for a wide range of outdoor applications that involve direct release (by-passing sewage treatment). The main uses are expected to include the cleaning of mass transit vehicles such as trains and buses. The product also meets stringent US Environmental Protection Agency environmental standards.
A MORE SUSTAINABLE FURNITURE INDUSTRY
Furniture makers in China can now use more eco-friendly coatings after we developed a new waterborne system to help them meet stricter government standards and a shift in consumer preferences. Aquasilk is an innovative waterborne anti-scuff coating which contains substantially lower levels of volatile organic compounds (VOCs) than the traditional solventborne systems they replace.
REVIVING LOCAL CULTURE IN CHINA
Our fi rst fl agship Human Cities project in China was launched after we partnered with the Shanghai Jing'an District Government. The partnership aims to revitalize cultural and recreational community spaces in Jing'an, which will include renovating four historic locations and expand access to sports and culture for local residents.
GETTING CLOSER TO CUSTOMERS IN INDIA
Customers in the north and west of India are set to benefi t from a new powder coatings plant we're building in Mumbai. The €9 million facility – which will complement our existing plant in Bangalore – will produce several lines new to the Indian market. Establishing the new facility in one of the world's fastest growing economies will give us additional momentum for our ambitious growth plans in the country.
SETTING COLOR AND DESIGN TRENDS
Denim Drift was unveiled as the Color of the Year for 2017. Working with a group of leading international architects, interior designers and trend watchers, we used extensive research to defi ne the tones and styles that best represent how we will live our lives in 2017. The color was revealed during the announcement of our annual ColourFutures trends forecast.