AkzoNobel Company Presentation February 2010 English Tcm74-34333

8/6/2019 AkzoNobel Company Presentation February 2010 English Tcm74-34333

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Tomorrows Answers Today

Meet AkzoNobel


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Our company in brief

The worlds largest paint and coatings company and a world leadingchemicals producer

Committed to delivering Tomorrows Answers Today

Global Fortune 500 company

For five consecutive years listed as one of the leaders of the Dow Jones

Sustainability Indexes (Chemical sector)

Values

Focusing on our customers future first

Embracing entrepreneurial thinking

Developing the talents of our people

The courage and curiosity to question

Integrity and responsibility in our actions


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AkzoNobel key facts

2009

Revenue 13.9 billion

57,060 employees

EBITDA: 1.8 billion*

EBIT: 1.2 billion*

Net income: 285 million

Credit ratings: BBB+ (S&P) and Baa1 (Moodys)

* Before incidentals

Revenue by business area EBITDA* by business area

Performance Coatings

Decorative Paints

Specialty Chemicals

29%

34%

37%31%

26%

43%

29%

34%

37%


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AkzoNobel is the worlds largestCoatings supplier

2008 revenue in billion

0

2

4

6

8

10


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Excellent geographic spread ofboth revenue and profits

High-growth markets are important (37% of revenue)

High-growth markets profitability is above average

% of 2009 revenue

Mature Europe

39%

Asia Pacific

20%

Rest-of-world

4%Latin America

9%

North America

21%

Emerging Europe

7%


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Strong emerging markets growth potential

Source: Food & Agriculture Organization of the UN, 2005 data for paper and paperboard; Plastic Europe MarketResearch Group (PEMRG) 2005 plastics data; Euromonitor 2007 coatings data; WorldBank population data

Paper

Plastics

Industrial and

Special Purpose

Coatings

Architectural

Paint

EmergingPer CapitaMatu

rePer Capita

8 liters

13 liters

< 2 liters

< 6 liters

~100 kg ~20 kg

~25 kg~170 kg


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We have strong brands across the fullspectrum of our business

Biggest brands, per business area% of 2009 revenue

18% of Specialty Chemicals

23% of Performance Coatings

25% of Decorative Paints


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Successful customer focus

Sikkens AutoclearLV Exclusive Self-healing clearcoatA high gloss clearcoat that is not only highly resistant to scratches and

easy to apply, but also features self-healing properties when exposed to

heat.

Ecosense better foryour worldand the worldTo be launched in March, the Ecosense paint line offers no added

solvents making it virtually odor free. It also has an improved ecological

footprint reducing waste, water and CO2

with up to 50%.

DuluxEcosure Matt Light & SpaceUses revolutionary LumiTec technology to reflect up to twice as much

light around the room making even the smallest of rooms look and feel

more spacious compared to our conventional emulsion paints.

Stickerfix Easier than easy!

You can repair and protect your car using a unique easy to apply andremove vinyl technology. Its coated with professional car maker

approved repair systems ofSikkens, Lesonal and Dynacoat.

Compozil Fx Better performance. Exceptional resultsA wet end management system for the largest and fastest paper

machines helping to deliver top quality paper faster with higher

productivity, better economy and reduced environmental impact.


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Low fixed costs as a percentage ofrevenue

Selling, advertising,

administration, R&D

costs

% of 2009 annual revenue*

Raw materials,

energy, and

other variable

production costs

Fixed productioncosts

EBIT margin

* Rounded percentages, all data excluding incidentals

0%

100%

Decorative

Paints

Performance

Coatings

Specialty

Chemicals

AkzoNobel


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Sustainability is integrated in everythingwe do

We have set ambitious sustainability targets:

Remain in the top three in the Dow Jones Sustainability Indexes

Reduce our total recordable injury rate

Deliver a step change in people development

We focus on long-term performance. By 2015 our ambition is:

That Eco-premium* products will make up 30 percent of sales

To reduce our cradle-to-gate carbon footprint with 10 percent

To achieve sustainable fresh water use on all our sites

We have linked remuneration to these targets and ambitions:

Our executive bonuses are linked to performance in the leading sustainability index (DJSI)

* Higher eco-efficiency than main competitive product


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Trusted portfolio of global brands


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Brands and products that...

Protect the worlds buildings and infrastructure Bring color to all aspects of our lives

Promote safety and good health

Supply industries worldwide with ingredients for lifes essentials

Allow us to travel and communicate

Furnish our homes and offices

Help society respond to the challenges of sustainability


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Organizational overview

Functional Chemicals

Pulp & Paper Chemicals

Industrial Chemicals

National Starch

Surface Chemistry

Chemicals Pakistan

Continental Europe

Northern & Eastern Europe UK, Ireland & South Africa

United States

Canada

Latin America

China & North Asia

South East Asia & Pacific

India and South Asia

Supervisory Board

Board of Management

Corporate Staff Departments

Industrial Finishes

Powder Coatings

Marine & Protective

Coatings

Car Refinishes

Packaging Coatings

Business areaSpecialty Chemicals

Business areaDecorative Paints

Business areaPerformance Coatings


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01 Decorative Paints


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Decorative Paints key facts

2009

Revenue 4.7 billion

22,210 employees

EBITDA: 492 million*

36 percent of revenue from high-growth markets

Largest global supplier of decorative paints

Many leading positions, strong brands


Some of our strong brands Revenue by geography

Europe

Asia Pacific

North America

Latin America

Other regions

50%

15%

21%

10%4%


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Decorative Paints

AkzoNobel is the worlds leading decorative coatings company withstrong positions in all regions of the world

Our Decorative Paints business supplies a full range of interior and

exterior decoration and protection products for both the professional

and the do-it-yourself markets

The product range includes paints, lacquers and varnishes as well as

products for surface preparation (pre-deco products)

We also supply building adhesives and floor leveling compounds for

tile, floor and parquet layers.


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Decorative Paints

Architectural coatings Interior & exterior wall paints and trim paints (lacquers)

Woodcare & specialty products

Lacquers and varnishes for wood protection and decoration

Specialty coatings for metal, concrete and other critical building

materials


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Industry leading brands

Pre-deco products Fillers, wall treatments, sealants and putties for consumers and

professional

Adhesives for the building and renovation industry

Tile and floor adhesives and floor leveling compounds used for

building and renovation


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World leader

Geographic expansion into high growth markets Leadership position in developed markets

Global decorative coatings market of around 34 billion

Worlds leading decorative coatings company


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Performance Coatings02


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Performance Coatings key facts

2009

Revenue 4.0 billion

19,880 employees



Leading positions in performance coatings

Innovative technologies, strong brands


Revenue by business unit Revenue by geography

Industrial Finishes &Powder Coatings

Marine andProtective Coatings

Car Refinishes

Packaging Coatings

Europe

North America

Latin America

Other regions

Asia Pacific41%

20%

8%

31%

41%20%

8%6%

25%


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Performance Coatings

Were world leaders when it comes to performance coatings Performance coatings have hundreds of uses and weve divided

them into five businesses: Industrial Finishes, Powder Coatings,

Car Refinishes, Marine & Protective Coatings and Packaging Coatings

We supply a wide range of industries and sectors including automotive,

consumer electronics, aviation, shipping and leisure craft, sport

equipment, construction, furniture, and food and beverage


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Industrial Finishes


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Industrial Finishes

Wood coatings to decorate and protect furniture, kitchen cabinetry andbuilding products

Coil coatings applied to coiled steel and aluminum prior to fabrication

Used in roofing, siding, garage and entry doors and gutters,air conditioners, heaters, furnaces and ventilation units andappliance markets

Extrusion coatings applied to some of the worlds most prestigioushigh-rise buildings

Plastics coatings supplied to:

Consumer electronics industry for cell phones, audio equipmentand computers

Cosmetic packaging and sporting equipment industries for bicycles,

helmets, ski equipment etc.

Wood adhesives business supplies bonding solutions for laminated

beams, wood flooring, and furniture


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Insert graphic to fit this box

Powder Coatings


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Powder Coatings

We are the largest global manufacturer of powder coatings and a worldleader in powder coatings technology

Powder coatings are solvent-free paints applied to metal and other

conductive surfaces. They are used on metal furniture, window frames,

radiators, pipes and cars, and even wood and plastic

We supply eight key market sectors appliance, architectural,

automotive, functional, furniture, general industry, general trade coatersand IT with our global brands Interpon and Resicoat


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Insert graphic to fit this box

Marine & Protective Coatings


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Marine & Protective Coatings

We are the global market leader for marine paints, antifoulings andprotective coatings

We produce paints and antifouling materials used in shipbuilding,

ship maintenance and repair, and by yachts and other pleasure craft

We also supply protective coatings for bridges and buildings, and

fire protection products for large plants and off-shore installations

Our International brand has been used by famous customersincluding Sydney Harbor Bridge, the London Eye in the UK and

the Beijing Olympic swimming complex

Marine & Protective Coatings is also home to AkzoNobels

Aerospace Coatings activities


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CarRefinishes


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CarRefinishes

If youve ever had your car resprayed, chances are it involved one ofAkzoNobels car refinish products

We are one of the worlds leading suppliers of paints and services for

the car repair, commercial vehicles and automotive plastics markets

Distributors, bodyshops, fleet owners, automotive suppliers and major

bus and truck companies all choose AkzoNobel because we treat our

customers as partners Our brands include Sikkens, Lesonal, Dynacoat, Wanda and

Autocoat BT

We have operations in more than 60 countries and offer outstanding

customer service, top-notch training, full technical and logistical support,

and detailed local knowledge


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Packaging Coatings


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Packaging Coatings

Our Packaging Coatings business leads the way in hi-tech internal andexternal coatings for food and drink packaging

We make and distribute a huge range of products that keep food and

drink fresher for longer

With nearly 90 years of experience, we have built our success on

understanding exactly what our customers need

We have significant positions in the established markets of Europe andNorth America and the emerging markets of Asia and Latin America


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Specialty Chemicals03


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Specialty Chemicals key facts

2009

Revenue 5.2 billion 13,250 employees



Major producer of specialty chemicals

Leadership positions in many markets


Revenue by business unit Revenue by geography



Pulp and PaperChemicals

National Starch

Surface Chemistry

Polymer Chemicals

Chemicals Pakistan

North America

Europe

Asia Pacific

Latin America

Other regions

44%21%

9%3%

23%

18%

17%17%

13%

7%

10%

18%


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Strong platforms for growth

AkzoNobel is a major supplier of specialty chemicals with leadingpositions in selected market segments

Our products are used in a wide variety of everyday products such

as ice cream, soups, disinfectants, plastics, soaps, detergents,

cosmetics, paper and asphalt


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Effective January 1, 2010 Polymer Chemicals has merged intoFunctional Chemicals

Very diverse product offering, used in many end-use applications

Our Functional Chemicals business makes chemical intermediates,

performance chemicals and end-products

Our portfolio includes cellulosic specialties, chelates, ethylene amines,

metal alkyls, micronutrients, organic peroxides, polysulfides,redispersable powder polymers, salt specialties and sulfur products

These chemicals are used in everyday items such as detergents, vinyl,

automotive parts, agricultural products, pharmaceutical products, food

products, wallpaper adhesives, plastic bags and cosmetics


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We have been helping paper manufacturers to improve their productsfor more than 100 years

We are the leading global supplier of bleaching chemicals used in pulp

manufacture, and performance chemicals used for the production of

paper and board

We also make specialty chemicals used in water treatment and as

separation products in the pharmaceutical industry Our Expancel microspheres are used as additives to reduce the

weight and improve the properties of printing inks, paper, polyester

and underbody coating

We trade under the name of Eka Chemicals


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Our Industrial Chemicals business makes salt, chlor-alkali products andderivatives such as monochloracetic acid (MCA)

These products are essential for the success of the chemical, detergent,

construction, food, paper and plastic industries

Our portfolio includes chlorine, hydrochloric acid, caustic lye and

water treatment chemicals. Were also Europes largest producer of

vacuum salt We supply electricity, gas and steam to plants, mainly through combined

heat and power generation plants


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National Starch


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National Starch

Leading global supplier of specialty starches with a principal focus on

supplying the food industry. Our core products can be found in the best

selling foods everywhere.

More than 20 percent of packaged foods utilize specialty starches to

deliver enhanced processing, improved shelf life stability, freeze/thaw

characteristics, improved aesthetics, enhanced texture, mouthfeel and

other sensory benefits.

Key market segments for the food business include bakery, beverages,

cereals, dairy, flavors and encapsulation, noodles and pasta, pet foods,

snacks etc.

Also serve niche papermaking markets and supply high-value industrial

starch applications for a variety of other consumer and industrial

products and processes.


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Surface Chemistry


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Surface Chemistry

We are a leading global supplier of surface-active agents and specialtypolymers

Surface Chemistry are chemicals that combine or separate two different

materials, they are remarkably flexible and can be used to emulsify,

disperse, clean, wet, aggregate, foam, defoam, disinfect or soften

Theyre used in a huge range of industrial and consumer products

including cleaning goods, oil field applications, printing, paints,fabric softeners, flooring, food packaging and electronics

They can also reduce the need for solvents in paints and cleaning

products

Specialty polymers for personal care provide the holding power in hair

sprays and gels and add softness to mousses, conditioners, shampoos

and other styling aids. They are also used in cosmetic and beautyproducts, like sunscreens, hand and body creams and lotions

Specialty polymer products also include dispersants, anti-scalants for

water treatment and detergent builders, as well as thickeners for the

carpet, adhesive and detergent industries


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Chemicals Pakistan


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Chemicals Pakistan

Global is good, but sometimes local is better. Which is why we set up our

Chemicals Pakistan business, which focuses exclusively on Pakistan.

The geographic focus is deliberately narrow, but the number of different

sectors we serve certainly isnt.

Our main areas of expertise include specialty chemicals, polyester fibers

and soda ash. We work with companies that produce consumer goods,

electronics and engineering products, food and beverages,

pharmaceuticals and textiles.


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Creating one of the worldsleading industrial companies

Worlds largest decorative paints company

Global leader in performance coatings

Leading specialty chemicals business

Documents

AkzoNobel Company Presentation February 2010 English Tcm74-34333