4
Report
AkzoNobel's powder coatings take landmark building to another level
Europe will soon have a new tallest building and it's being protected from the ravages of the
Warsaw weather by a high class powder coatings system supplied by AkzoNobel. Standing 310
meters tall, the Varso Tower developed by international workspace provider HB Reavis will dominate the skyline of the Polish capital. It features a sleek black exterior which has been created by using the company's Interpon D2525 super-durable topcoat on the cladding and profiles in a striking Noir Sablé shade. Meanwhile, the Interpon Redox Plus primer provides a super tough core.
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AkzoNobel I Report for the fourth quarter and full-year 2019 2
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
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.
ROS excluding unallocated cost1
In % of revenue
15.5
14.5
10.6
10.6
Actual Actual
FY 17 FY 18
