Adjusted EBITDA

Adjusted EBITDA is operating income excluding depreciation, amortization and identified items.


Annual General Meeting of shareholders; Extraordinary General Meeting of shareholders.


Behavior-based safety. A global program run at all AkzoNobel locations.

Business Partner Code of Conduct

Explains what we stand for as a company, what we value and how we run our business. It brings our core values of safety, integrity and sustainability to life and shows what they mean in practice.

Capital expenditures

The total of investments in property, plant and equipment and investments in intangible assets.

Carbon footprint

The total amount of greenhouse gas (GHG) emissions caused during a defined period of a product’s lifecycle. It is expressed in terms of the amount of carbon dioxide equivalents CO2(e) emitted.

Circular economy

An economic system which is restorative and regenerative by design, and which aims to keep products, components and materials at their highest utility and value at all times, distinguishing between technical and biological cycles.

Code of Conduct

Defines our core principles and how we work. It incorporates fundamental principles on issues such as business integrity, labor relations, human rights, health, safety, environment and security and community involvement.

Comprehensive income

The change in equity during a period resulting from transactions and other events, other than those changes resulting from transactions with shareholders in their capacity as shareholders.

Constant currencies

Calculations exclude the impact of changes in foreign exchange rates.

Earnings per share

Net income attributable to shareholders divided by the weighted average number of common shares outstanding during the year. Adjusted earnings per share are the basic earnings per share, excluding identified items and taxes thereon.


Operating income excluding depreciation and amortization.


Using fewer resources and creating less waste and pollution in the creation of goods and services.

Eco-premium solutions with downstream benefits

A measure of the eco-efficiency of our products. An ecopremium solution is significantly better than competing offers in the market in at least one eco-efficiency criterion (toxicity, energy use, use of natural resources/raw materials, emissions and waste, land use, risks, health and well-being), and not significantly worse in any other criteria. Downstream benefits include a tangible sustainability benefit for our customers.


Europe, Middle East and Africa.

Emerging Europe

Central and Eastern Europe (excluding Austria), the Baltic States and Turkey.

Emissions and waste

We report emissions to air, land and water for those substances which may have an impact on people or the environment: CO2, NOx and SOx, VOCs, chemical oxygen demand, hazardous and non-hazardous waste. Definitions are in the Sustainability statements.

Greenhouse gases

Greenhouse gases include CO2, CO, CH4, N2O and HFCs, which have a global warming impact. We also include the impact of VOCs in our targets.


Health, safety, environment and security.

Identified items

Identified items are special charges and benefits, results on acquisitions and divestments, major restructuring and impairment charges and charges related to major legal, environmental and tax cases.

Invested capital

Total assets (excluding cash and cash equivalents, short-term investments, investments in associates, the receivable from pension funds in an asset position, assets held for sale) less current income tax payable, deferred tax liabilities and trade and other payables.

Leverage ratio

Calculated as net debt divided by EBITDA, which is calculated as the total of the last 12 months.

Lifecycle assessment

Lifecycle assessments are the basis of our value chain sustainability programs. Eco-efficiency analysis (EEA) is our standard assessment method.

Loss of primary containment

A loss of primary containment is an unplanned release of material, product, raw material or energy to the environment (including those resulting from human error). Loss of primary containment incidents are divided into three categories, dependent on severity, from small, on-site spill/near misses up to Level 1 – a significant escape.

Lost time injury rate (LTIR)

The number of lost time injuries per 200,000 hours worked. Full definitions are in the Sustainability statements.

Mature Europe

Comprised of Western, Northern and Southern Europe, including Austria.

Mature markets

Comprised of Mature Europe, the US, Canada, Japan and Oceania.

Natural resource use

We do not report specific natural resource use, except water. We do report our use of energy and raw materials.

Net debt

Defined as long-term borrowings plus short-term borrowings less cash, cash equivalents and short-term investments.

Operating income

Operating income is defined in accordance with IFRS and includes the relevant identified items. Adjusted operating income excludes identified items.

Operational cash flow

We use operational cash flow to monitor cash generation. It is defined as operating income excluding depreciation and amortization, adjusted for the change in operating working capital and capital expenditures.

OPI margin

Operating income as a percentage of revenue.


Research and development.

Regulatory action

We have defined four categories of regulatory action, from self-reported issues (Level 1) to formal legal notifications with fines above €100,000 (Level 4).


Resource Efficiency Index is gross margin divided by cradle-to-grave carbon footprint. The index measures value created from use of raw materials and energy.

Relevant markets

Segments and regions of the paints and coatings industry from which AkzoNobel generates revenue.

ROI (return on investment)

ROI is adjusted operating income of the last 12 months as a percentage of average invested capital. ROI excluding unallocated cost is adjusted operating income of the last 12 months as a percentage of average invested capital for Decorative Paints and Performance Coatings. It excludes unallocated corporate center cost and invested capital.

ROI% excluding unallocated cost

January 2020 - December 2020


in €millions



Average invested capital



Less: unallocated average invested capital



Average invested capital excluding unallocated capital



Adjusted operating income excluding unallocated cost






ROS (return on sales)

ROS is adjusted operating income as a percentage of revenue. ROS excluding unallocated cost is adjusted operating income as a percentage of revenue for Decorative Paints and Performance Coatings. It excludes unallocated corporate center cost.

ROS (return on sales)

January 2020 - December 2020


in €millions



Total revenue



Less: revenue unallocated



Revenue excluding unallocated revenue






Adjusted operating income excluding unallocated cost






ROS% excluding unallocated cost




Safety incident

We have defined three levels of safety incidents. The highest category – Level 3 – involves: any loss of life; more than five severe injuries; environmental, asset or business damage totaling more than €25 million; inability to maintain business; or serious reputational damage to AkzoNobel stakeholders.

Shareholders’ equity per share

Akzo Nobel N.V. shareholders’ equity divided by the number of common shares outstanding at year-end.

South America

Includes Central America.

Total reportable rate of injuries (TRR)

The number of injuries per 200,000 hours worked. Full definitions are in the Sustainability statements.

TSR (total shareholder return)

Compares the performance of different companies’ stocks and shares over time. Combines share price appreciation and dividends paid to show the total return to shareholders. The relative TSR position reflects the market perception of overall performance relative to a reference group.


Volatile organic compounds.