Decorative Paints value creation summary 2016
As a leading global supplier of decorative paints, our brands are crucial to our success. Our Decorative Paints activities are fully focused on the Buildings and Infrastructure end-user segment, serving both consumers and professional painters. In order to create more economic, environmental and social value, our innovation is geared towards reducing our upstream and downstream supply chain impact by changing formulations to water-based technology.
Many of our brands are household names and we work closely with local communities via a series of national and international initiatives, some of which involve volunteer support from our employees. The aim is to benefit the creation of more social value.
All these initiatives are designed to play a role in contributing to our financial performance and enable us to deliver more economic value for our investors.
Organization
€3.8 billion
revenue
€357 million
operating income
€2.6 billion
invested capital
€107 million
capital expenditures
During 2016, we invested in growth markets (including our Chengdu site in China); in creating efficiency in Europe (in particular at our new Ashington site in the UK); and through optimization of our production footprint.
Revenue breakdown by business unit in %
Revenue breakdown by end-user segment in %
Revenue development in % versus 2015
Outcomes
9.3% ROS
12.8% ROI
28%
of revenue from eco-premium solutions
RD&I investments have resulted in 28 percent of revenue derived from eco-premium solutions with customer benefits.
Eco-premium solutions with customer benefits
% of revenue
Indicates a positive development
Indicates a flat/negative development
Input
Organization
2.4 million tons
upstream CO2(e) emissions
1,800 TJ
energy use
We continue to improve efficiency by reducing our energy use per ton of production, and are working towards improving our share of renewable energy. We continue to improve the environmental footprint of our operations by focusing on operational eco-efficiency.
0.1 million tons
CO2(e) emissions own operations
32 kilotons
total waste
Outcomes
1.2 million tons
downstream CO2(e) emissions
3.7 million tons
CO2(e) emissions cradle-to-grave
9%
improvement CO2(e) per ton of sales from 2012 cradle-to-grave carbon footprint
Indicates a positive development
Indicates a flat/negative development
Input
Organization
14,700
employees at year-end 2016
1.2
total reportable rate of injuries
(per million hours)
Employee safety is a key priority and we are actively driving towards a reduction in the number of incidents.
Total reportable rate of injuries
per million hours worked
Outcomes
€622 million
employee benefits
4.21
employee engagement score
We highly value, and actively work on improving, employee engagement. We’re investing in training and development and continue to work on achieving a more diverse workforce.
3.8 million
lives positively impacted by our “Let’s Colour” program
1,577
people trained as painters
We participate in community programs and local sponsorships.