Our results at a glance

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

Q2 2018:

• Revenue 3% lower, although up 2% in constant currencies, with positive price/mix partly offset by lower volumes
• Adjusted operating income 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
• ROS at 9.2% (2017: 11.6%), up for Paints and improving for Coatings; ROI 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)

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.