Highlights 2019

  • Progress towards delivering our Winning together: 15 by 20 strategy, by delivery of strong ROS, despite softer end market demand
  • Continued pricing initiatives and cost-saving programs successfully improved profitability
  • Progress towards delivering €200 million of savings planned for 2020: €80 million delivered in 2019
  • Acquisition of Mapaero closed, strengthening our global position in steadily growing aerospace coatings industry
  • Delivered on commitment by returning €6.5 billion to our shareholders following the sale of Specialty Chemicals
  • New €500 million share buyback program announced in October 2019, to be completed in the first half of 2020
  • Final dividend proposed of €1.49 per share

ROS excluding unallocated cost 1

In % of revenue

ROS excluding unallocated cost (graphic)

In 2019, ROI excluding unallocated costs 2 was 17.2% (2018: 16.6%).
The ambition for ROI excluding unallocated costs for 2020 is > 20%.

1 ROS excluding unallocated cost is adjusted operating income as percentage of revenue for Decorative Paints and Performance Coatings; it excludes unallocated corporate center costs, consistent with our 2020 ambition.

2 ROI excluding unallocated cost is adjusted operating income of the last 12 months as percentage of average invested capital, for Decorative Paints and Performance Coatings; it excludes unallocated corporate center costs and invested capital, consistent with our 2020 ambition.

Assumes no significant market disruption.

Outlook:

We are delivering towards our Winning together: 15 by 20 strategy and continue creating a fit-for-purpose organization for a focused paints and coatings company, contributing to the achievement of our 2020 ambition. Demand trends differ per region and segment in an uncertain macro-economic environment. Raw material costs are expected to have a moderately favorable impact for the first half of 2020. Continued margin management and cost-saving programs are in place to address the current challenges. We continue executing our transformation, incurring one-off costs, to deliver the previously announced €200 million cost savings. We target a leverage ratio of 1.0-2.0 times net debt/EBITDA by the end of 2020 and commit to retain a strong investment grade credit rating.