Return on sales (ROS)1
Achieve return on sales (EBIT/revenue) of 15% by 2020
Return on investment (ROI)2
Achieve return on investment (EBIT/average invested capital) of more than 25% by 2020
The transformation of AkzoNobel into a focused Paints and Coatings company, including the separation of Specialty Chemicals, is progressing and the associated one-off costs are within expectations. Phase one of creating a fit-for-purpose Paints and Coatings organization (announced in October 2017) is on track to achieve €110 million savings in 2018, contributing directly towards delivering the 2020 financial guidance. Various measures to mitigate current market challenges, including increased selling prices and cost discipline, also continue to be implemented.
1 Excluding unallocated corporate center costs; assumes no significant market disruption.
2 Excluding unallocated corporate center costs and invested capital; assumes no significant market disruption.
Sustainability targets (including discontinued operations)
Maintain revenue from downstream eco-premium solutions of 20% of revenue by 2020
Reduce our carbon emissions across the value chain by 25-30% per ton by 2020 (2012 base)
Resource Efficiency Index
Monitor gross margin divided by carbon emissions across the value chain, as an indicator for resource efficiency
Opened new plant in China to strengthen our global position in powder coatings, led by our Interpon brand
Invested in a new £13 million innovation hub in the UK
Partnered with SOS Children’s Villages to fight youth unemployment with the power of paint
Held investor day in London to launch our new strategy
Opened a new coatings facility in Chonburi, Thailand
Partnered with The Ocean Cleanup together with our International brand for the largest clean-up in history
Double coatings acquisition of the UK’s Flexcrete Technologies and Disa Technology in France
Announced major expansion of organic peroxides capacity in China
Opened the world’s most advanced and sustainable paint factory in Ashington, the new center of production for Dulux in the UK
All our paints and coatings production in the Netherlands is now powered by green energy
Chemical Island in Brazil expanded to support growth of Fibria, the world’s leading producer of eucalyptus pulp
Agreed to acquire the business of V.Powdertech, the leading Thai manufacturer of powder coatings