September 8, 2017
Akzo Nobel N.V. (AKZA.AS; AKZOY)
AkzoNobel today announces a new management structure for its Paints and Coatings business in advance of creating two focused
high-performing businesses; Paints and Coatings and Specialty Chemicals.
This announcement follows the recently communicated changes to the Executive Committee, including the appointment of Ruud
Joosten as Chief Operating Officer and David Allen as Chief Supply Chain Officer.
The new, fully integrated, management structure will increase customer focus, drive further operational excellence, and build
greater momentum and speed across the business. It will be based on four regional Paints business units and four integrated
Coatings business units with full profit and loss responsibility. The businesses will be served by a world-class integrated supply
chain organization enabling accelerated efficiencies.
In addition, the company is implementing a range of measures to mitigate current market challenges. These challenges include
unfavorable foreign exchange rates, continued headwinds for the Marine and Protective Coatings industry, temporary disruption to
the manufacturing and supply chain during the third quarter and current margin pressure from greater than expected raw material
cost inflation.
The new management structure and additional measures are being implemented to ensure ongoing delivery of the AkzoNobel 2020
financial guidance, as announced in April 2017 (15% Return on Sales and >25% Return on Investment for Paints and Coatings).
Steps already taken, including increased selling prices and additional cost control measures, are expected to enable AkzoNobel
to deliver EBIT for 2017 higher than 2016 although by less than the previously communicated increase of €100 million.
The separation of Specialty Chemicals remains on track for April 2018.
Thierry Vanlancker, CEO AkzoNobel said:
"Current challenges in the paints and coatings markets are having a wider and greater impact as the year continues and we are
dealing with these head-on. Our new management structure will increase customer focus, drive further operational excellence, and
build greater momentum and speed.
AkzoNobel is delivering growth and the organization changes we are making will pave the way for the creation of two focused
businesses. These changes will help us deliver a stronger 2017 than 2016, despite dealing with current market challenges, and help
to ensure we achieve our 2020 financial guidance."
This is a public announcement by AkzoNobel N.V. pursuant to section 17 paragraph 1 of the European Market Abuse Regulation
(596/2014).
---
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.
Not for publication - for more information
| Corporate Media Relations |
Corporate Investor Relations |
| T +31 (0)88 - 969 7833 |
T +31 (0)88 - 969 7590 |
| Contact: Diana Abrahams |
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.
Attachments:
http://www.globenewswire.com/NewsRoom/AttachmentNg/9bc39066-f145-4734-91b8-e02690667234
