Discontinued operations (including Specialty Chemicals)

Discontinued operations and held for sale

The results and cash flows from discontinued operations in 2017, as well as 2016, and the assets and liabilities held for sale at December 31, 2017, almost completely relate to the Specialty Chemicals business.

In April 2017, AkzoNobel officially announced its decision to separate the Specialty Chemicals business, thereby creating two focused, high performing businesses – Paints and Coatings, and Specialty Chemicals. At the EGM of November 30, 2017, shareholders approved the proposed separation of the Specialty Chemicals business from AkzoNobel through a private sale or a legal demerger, expected to be completed in 2018. The Specialty Chemicals business consists of the Specialty Chemicals Business Area and certain other assets and liabilities and income and expenses which are directly attributed to the Specialty Chemicals business from the Other activities. As from December 22, 2017, the Specialty Chemicals business is classified as held for sale and discontinued operations, therefore the consolidated statement of income for 2017, as well as for 2016, have been represented to show the results of the Specialty Chemicals business as discontinued.

Revenue

Revenue of discontinued operations consists of revenue of Specialty Chemicals and eliminations of intercompany revenue.

EBIT

Full-year EBIT was up 8% at €620 million (2016: €574 million).

• In Specialty Chemicals, EBIT was up 10%, with higher volumes and cost control more than compensating for raw material price inflation and adverse currencies
• EBIT in Other activities decreased, mainly due to some one-off items positively impacting the previous year

Operating income

Full-year operating income was negatively impacted by identified items totaling €49 million, mainly related to the costs of the separation of Specialty Chemicals and legal items. In 2016, operating income was positively impacted by identified items relating to the sale of assets.