AkzoNobel reports full-year and fourth-quarter results for 2020

AkzoNobel's "Win-Win: 15 by 20" strategic goal continued to maintain strong momentum in the fourth quarter, with revenue growth of 6% in comparable currency terms AkzoNobel Corporation (stock code: AKZA; AKZOY) Releases Full-Year 2020 and Fourth Quarter Results For 2020 Full-Year Results - Return on Sales Without Unexported Costs 1 is 15.0%, Achieving "Win-Win Cooperation: 15 by 20" Strategic Objectives Return on investment on assessed costs2 rose to 20.6 per cent, exceeding the 2020 target of 243 million euros in total cost savings, including 115 million euros in structural cost savings and a significant increase in net income from operating activities to 12.2 Total share repurchases of EUR 545 million in 2020 The total amount of share repurchases announced is EUR 1 billion and will be fully completed in the first quarter of 2022. The closing dividend will be EUR 1.52 per share (201) 1.49 euros per share for the same period in 2020) 4Q204 bright spot sales growth of 6%, has been on the growth trend for two consecutive quarters, thanks to strong margin management and cost savings projects, non-apportioned cost-added sales return rose to 15.3% (11.0% in the same period in 2019) - Total cost savings of EUR 34 million, including EUR 25 million in structural cost savings related to the transformation plan, announced the acquisition of Spanish coatings company Titan Paints in the fourth quarter of 2020 Thierry Vanlancker, chief executive of AkzoNobel, which completed the acquisition of yacht coatings maker New Nautical Coatings, said: "Full-year 2020 results show that our structural performance has improved since the implementation of the first phase of the transformation programme.
Despite the challenges posed by the new coronavirus pneumonia outbreak, we are still up to the challenge of delivering on our 'Win-Win: 15 by 20' commitment to achieve a 15% return on sales and a return on investment of more than 20%.
we continue to focus on our customers' needs, especially in a challenging 2020, each of our employees has shown a highly commendable work commitment and dedication.
we have achieved organic growth for two consecutive quarters and announced plans to acquire Titan Paints, a Spanish paint company, and New Nautical Coatings, a U.S. yacht coatings manufacturer.
we have strengthened our systems and processes and expanded our 'Coating the Future' innovation collaboration system.
addition, we accelerate the implementation of sustainability programs around the three dimensions of "humans, the earth, coatings" and become a leader in the paint and coatings industry based on key benchmarks.
really exciting is that our transformation plan is halfway through and we will continue to strive to be the industry benchmark.
launched our new Grow and Deliver strategy, marking the second phase of our transformation plan, which began in 2017, to double our profits.
" AkzoNobel Results (EUR million) Q4 2019 Q4 2020 % Constant Exchange Rate 3 Sales 22422209 (1%) 6% Adjusted Operating Income 422329432% Return on Sales 9.9% 13.3% Return on Sales (not including unexported costs) 111.0% 15.3% Operating income 17324340% AkzoNobel Results (EUR million) for the full year 2019 Adjusted operating income 4991109911% return on sales 10.7% 12.9% return on sales (not including unexported costs) 112 .0% 15.0% ROI (without unexported costs) 217.2% 20.6% Operating income 84196315% Latest highlight AkzoNobel brings new development opportunities for window manufacturers AkzoNobel to introduce a new quick-dry coating solution, Increase productivity and sustainability for window manufacturers.
100% UV-cured facade series with new wood coatings reduces drying time to 16 hours, significantly reducing production time, saving energy costs and delivering superior performance.
's sustainability ambitions are heating up as AkzoNobel installs thousands of solar panels at two plants on both continents, continuing to move towards the goal of halving carbon emissions by 2030.
two recent projects, in Garcia, Mexico, which has installed 1,650 solar panels, and Barcelona, Spain, where 1,600 solar panels are planned, are currently well under way.
as part of AkzoNobel's "Human, Earth, Paint" sustainability plan, which aims to achieve a 30 percent reduction in energy consumption and 100 percent use of renewable electricity.
AkzoNobel introduces a new bio-based wall paint to help provide fresh air AkzoNobel's new bio-based wall paint Better Living Air Clean in Vietnam, enhancing product performance with Pure Air technology and containing natural and sustainable ingredients, including bamboo charcoal, to create a more livable living environment.
AkzoNobel's South American efforts to build the 58-color colorful aircraft AkzoNobel's Brazilian decorative paint brand Coral teamed up with colleagues in the aerospace coatings business, working with Azul Airlines of Brazil and Embraer to create the design of the Spix macaw, which symbolizes the Brazilian nation.
design uses up to 58 beautiful colors, half of which are tailored to the project.
AkzoNobel will hold the 2021 "Paint the Future" China Startup Challenge, which will launch a new regional start-up challenge in China in March 2021, and is committed to closer cooperation with Chinese start-ups.
through the "Paint the Future" challenge, AkzoNobel accelerates, tests, develops and scales innovative solutions with start-ups, academia, research institutions and suppliers.
launched in 2019 and launched the Startup Challenge.
2020, the first round of the Regional Startup Challenge was successfully held in Brazil.
year, the Challenge will be held in China, which is known for its technological innovation, and will work with China's innovation forces to write a new chapter in the event.
breakthrough in biomass unlocks more possibilities AkzoNobel and the Netherlands Centre for Advanced Research's Chemical Components Alliance (ARC CBBC) in a collaboration to develop a more sustainable resin manufacturing method.
new process uses bio-based monomass to make resins, helping to introduce new features in the future.
collaboration is part of AkzoNobel's collaborative innovation to accelerate, test, develop and scale innovative solutions with start-ups, academia, research institutions and suppliers.
outlook for 2021: AkzoNobel's goal is to grow at least in tandes with its related markets.
Although demand is trending differently by geography and segment and raw material prices are expected to rise, active margin management and cost control projects are in place to achieve a 50 basis point increase in return on sales."
our goal is to achieve 1-2 times the leverage ratio (i.e. net debt/EBITDA ratio) and strive to maintain a strong investment grade credit rating.
AkzoNobel's full-year and fourth quarter 2020 results can be viewed and downloaded at 1. Return on Sales (excluding unexported costs) as a ratio of adjusted operating income to sales of decorative paints and high-performance coatings; Unexported costs) is the ratio of adjusted operating income to the average investment capital for decorative paints and high-performance coatings over the past 12 months, and calculations that do not include unexported costs and invested capital 3. Constant exchange rates do not include the effects of foreign exchange rate fluctuations4. Adjusted operating income, i.e. operating income minus identified items