AkzoNobel unveils new strategy to accelerate growth and value creation
(Thomson Reuters ONE) -
April 19, 2017
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
Enhanced financial guidance*
* 2017 EBIT to be around ?100 million ahead of 2016 due to significant growth
momentum across all Business Areas
* Increased 2020 guidance: Paints and Coatings 15% ROS, ROI >25%; Specialty
Chemicals 16% ROS, ROI >20%, reflecting continued growth in profitability
equivalent to AkzoNobel's current portfolio of 14% ROS and >20% ROI**
Increased shareholder returns
* 50% increase to the regular dividend per share to ?2.50 per share,
reinforcing confidence in the future plan to further drive growth and
profitability
* Vast majority of net proceeds from the separation of Specialty Chemicals to
be returned to shareholders
* ?1 billion special dividend to be paid in November reflecting confidence in
the planned separation
AkzoNobel also reported a record financial performance with its first quarter
2017 results today, which are available in a separate release.
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."
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."
A webcast of the investor event, which will take place today at 10.00am BST, is
available here: Register for the video webcast here.
* Note: Current financial guidance for 2016 to 2018:
* Paints and Coatings 10-12% ROS, ROI >18%
* Specialty Chemicals 11.5-13% ROS, ROI >16%
** Excluding unallocated corporate costs
This is a public announcement by AkzoNobel N.V. pursuant to section 17 paragraph
1 of the European Market Abuse Regulation (596/2014). This public announcement
does not constitute an offer, or any solicitation of any offer, to buy or
subscribe for any securities in AkzoNobel N.V.
------------------
About AkzoNobel
AkzoNobel creates everyday essentials to make people's lives more liveable and
inspiring. As a leading global paints and coatings company and a major producer
of specialty chemicals, we supply essential ingredients, essential protection
and essential color to industries and consumers worldwide. Backed by a
pioneering heritage, our innovative products and sustainable technologies are
designed to meet the growing demands of our fast-changing planet, while making
life easier. Headquartered in Amsterdam, the Netherlands, we have approximately
46,000 people in around 80 countries, while our portfolio includes well-known
brands such as Dulux, Sikkens, International, Interpon and Eka. Consistently
ranked as a leader in sustainability, we are dedicated to energizing cities and
communities while creating a protected, colorful world where life is improved by
what we do. AkzoNobel had total revenues of ?14.2 billion in 2016: Specialty
Chemicals - ?4.8 billion, Decorative Paints - ?3.8 billion, Performance Coatings
- ?5.7 billion.
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Contact: Andrew Wood Contact: Lloyd Midwinter
Safe Harbor Statement
This press release contains statements which address key issues such as
AkzoNobel's growth strategy, future financial results, market positions, product
development, products in the pipeline and product approvals. Such statements
should be carefully considered, and it should be understood that many factors
could cause forecasted and actual results to differ from these statements. These
factors include, but are not limited to, price fluctuations, currency
fluctuations, developments in raw material and personnel costs, pensions,
physical and environmental risks, legal issues, and legislative, fiscal, and
other regulatory measures. Stated competitive positions are based on management
estimates supported by information provided by specialized external agencies.
For a more comprehensive discussion of the risk factors affecting our business
please see our latest annual report, a copy of which can be found on our
website:www.akzonobel.com.
PDF Media Release:
http://hugin.info/130660/R/2096640/793394.pdf
Photo CEO Ton Buchner:
http://hugin.info/130660/R/2096640/793395.jpg
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: AkzoNobel NV via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 19.04.2017 - 08:02 Uhr
Sprache: Deutsch
News-ID 536960
Anzahl Zeichen: 10068
contact information:
Town:
Amsterdam
Kategorie:
Business News
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