akzonobel company presentation february 2010 english tcm74-34333
TRANSCRIPT
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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
* Before incidentals
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
EBITDA: 587 million*
45 percent of revenue from high-growth markets
Leading positions in performance coatings
Innovative technologies, strong brands
* Before incidentals
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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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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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
EBITDA: 814 million*
32 percent of revenue from high-growth markets
Major producer of specialty chemicals
Leadership positions in many markets
* Before incidentals
Revenue by business unit Revenue by geography
Functional Chemicals
Industrial Chemicals
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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Functional Chemicals
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Functional Chemicals
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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Pulp & Paper Chemicals
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Pulp & Paper Chemicals
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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Industrial Chemicals
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Industrial Chemicals
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