19 April 2017
DETAILS
Akzo Nobel N.V. (AKZA.AS; AKZOY)
- Creation of two focused, high-performing businesses
with sustainable growth plans - Separation of Specialty Chemicals within 12 months:
the vast majority of net proceeds
will be returned to shareholders - Increased financial guidance* for 2020:
Paints and Coatings: 15% ROS, ROI >25%;
Specialty Chemicals: 16% ROS, ROI >20% - €1.6 billion to be returned to shareholders for 2017
via a €1 billion special dividend
combined with a 50% increase to the regular dividend
AkzoNobel today outlines a new strategy
to accelerate growth and value creation
with two focused, high-performing businesses
– Paints and Coatings and Specialty Chemicals –
which will lead to a step change
in value creation for shareholders and all stakeholders.
The logical next phase of creating two separate companies
builds on the strong financial and operational foundation
developed in recent years.
It will generate superior, faster
and more certain value creation than
the alternatives and with substantially
fewer risks, uncertainties and social costs.
Strategy: create two focused businesses
- Separation of Specialty Chemicals
to take place within 12 months;
project teams in place - Dual-track process with active consideration
of a separate listed entity or sale - Focused Paints and Coatings business,
with fit-for-purpose structure and processes
Accelerating sustainable growth and profitability
- €150 million annual savings resulting from
ongoing continuous improvement programs
in Paints and Coatings - Additional €50 million expected cost savings
related to the separation of Specialty Chemicals - Continued commitment to sustainability
with ambition to use 100% renewable energy
and be carbon neutral by 2050 - Investment of €1 billion in research and development
by 2020 to maintain focus on
innovation and new product development
AkzoNobel also reported a record financial performance
with its first quarter 2017 results today,
which are available in a separate release.
Antony Burgmans,
Chairman of the AkzoNobel Supervisory Board, said:
“The Supervisory Board believes
that management’s plan for AkzoNobel’s future
will deliver superior shareholder value
compared to the alternatives.
“It will be delivered by a competent,
experienced management team
with a proven track record at a faster pace,
with considerably less risk and at significantly lower social cost.
“The plan will enable AkzoNobel to thrive both
to the benefit of our shareholders
and the communities worldwide in which we operate.”
Ton Büchner, CEO of AkzoNobel, said:
“Our commitment to substantial shareholder returns
reinforces our belief that the plan
we are outlining today will create
a step change in value creation,
generating significant shareholder value
in the short, medium and long term.
It will be delivered at pace, with a clear timeline
and is in the best interest of all stakeholders.
“During recent years, we have consistently
delivered on our commitments
to improve profitability and growth,
while building momentum within our Company.
We have world class teams and a solid financial
and operational foundation.
“The industry-leading performance and outlook
of our Specialty Chemicals business
gives us the confidence to return proceeds
to shareholders in advance of the separation.
In addition, we see extensive growth momentum
in our Paints and Coatings business, which we expect
to keep growing faster than market rates,
allowing us to improve our long-term financial guidance.
“Now is the right time to create
two focused, high-performing businesses.
This strategy will create substantial value
for shareholders with significant less risks
and uncertainties compared to alternatives.
“We believe our long-term focus in sustainability
creates value for all stakeholders, including
our shareholders, customers and employees.
We continue to lead the industry with our ambition
to being carbon neutral and
using 100% renewable energy by 2050.
“Our ongoing commitment to invest around €1 billion
in research and development by 2020
will create innovative products and services,
as well as making a positive contribution
to the communities in which we operate.
“We have laid out a new plan today with clear,
ambitious goals. With the support of our colleagues
across the world and building on our incredible brands,
we will create two leading, customer focused businesses
which will deliver enhanced value for all our stakeholders.”
Media Relations
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