investors visit – september 17, 2009…market and business characteristics • global market size...
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AkzoNobel Car Refinishes
Investors Visit – September 17, 2009
Creating art with the MP4-24, and some Sikkens paint….
Investors Visit – September 17, 2009
Jim Rees, Managing DirectorAkzoNobel Car Refinishes
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Meet Car Refinishes
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Organizational overview
• Functional Chemicals• Pulp & Paper Chemicals• Industrial Chemicals• National Starch• Surface Chemistry• Polymer Chemicals• 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
• Car Refinishes• Industrial Finishes• Powder Coatings• Marine & Protective
Coatings• Packaging Coatings
Business areaSpecialty Chemicals
Business areaDecorative Paints
Business areaPerformance Coatings
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AkzoNobel strategic ambitions
Tied to incentives, both for value creation and sustainability
Leading in value creation• Outgrow our markets• EBITDA margin > 14% by end 2011• 0.5% improvement in operating working
capital (OWC) level, p.a.
Leading in sustainability• Top 3 Dow Jones Sustainability index• Reduction in total recordable injury rate• Step change in people development
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CR’s Strategic ambitions
Today – what we areThe world’s third Largest Car Refinishescompany
Tomorrow – what we want to beTo challenge the #2 positionin the global Refinishes market
How we will achieve this: Strategic agenda
• Drive profitable growth • Participate in industry consolidation • Achieve operational effectiveness through process improvement
• Maximize employee performance and satisfaction• Strive for world class levels of sustainability and safety• Build and maintain value-creating relationships with key external stakeholders
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Our business
• One of world’s leading suppliers of paints and services for the VR, OEM CV and APC markets
• Revenue of € 885 million (2008)
• Employ around 4,900 people, active in more than 130 countries
• Cover OEM value chain including insurance companies, fleet owners, car makers, paint distributors and end users
• Sustainability an integral part of strategy and business process
• Products based on high performance low bake technology
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Vehicle Refinish
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Market and business characteristics
• Global market size is €5 billion¹
• Paints and services for collision repairers and commercial vehicle refinishers
• Market strongly dependent on GDP and vehicle population size. Major growth opportunities in emerging markets, especially BRIC
• Value chain includes insurance companies, fleet owners, car makers, paint distributors and end-users
• Leading brands include: Sikkens®, Lesonal®, Dynacoat®and Wanda®
¹ Source Euromonitor and other sources
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OEM Commercial Vehicles
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Market and business characteristics
• Global market size is €850 million¹
• Paints and services for OEM buses and trucks and specialized commercial vehicle builders
• Customers: Major bus and truck makers including International Truck, Yutong Bus, Volvo CE, Scania, MAN, Oshkosh, Iveco/CNH
• Market strongly dependent on GDP and new vehicle build rate. Big markets in North America, Europe and Japan. Major growth opportunities in emerging markets, especially BRIC
• Market is a blend between true business-to-business industrial and car refinishes approach
¹ Source Euromonitor and other sources
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Automotive Plastic Coatings
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Market and business characteristics
• Global market size is €1.3 billion¹
• Coatings for automotive components
• Market strongly dependent on OEM car production volumes. Significant opportunities in emerging markets, especially in China, India and Eastern Europe
• Customers: tier 1 Automotive suppliers like Plastic Omnium, Peguform, Plascar, Visiocorp, and most Automotive OEMs
• Business-to-business market with Tier 1and Tier 2 OEM suppliers, but closely connected to OEMs for technical approvals
¹ Source Euromonitor and other sources
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Partnerships with Automotive OEMs
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Worldwide Operations
Asia Pacific8%
Americas33%
Europe59%
(incl. regional sales share)
3 International Research Centers 2 Color Development Centers4 Technical Centers 8 Manufacturing Sites▲ ■♦
▲ ▲
▲♦♦■
■■■
■ ■■
■
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Market positions
5551Automotive Plastic Coatings
3333OEM Commercial Vehicles
3344 Vehicle Refinish
TotalAsiaAmericasEurope
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Volume projection, by geography: global light vehicle sales (in million units)
North America
11 11 11
0
10
20
30
2010 2015 2020
Europe
1719
22
0
10
20
30
2010 2015 2020
China
9
17
0
10
20
30
2010 2015 2020
India
24
7
0
10
20
30
2010 2015 2020
32
0,4%
Source: A.T. Kearney
2,8%
13,7%
13,3%
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Global light vehicle sales 2003 – 2020 (in million units)
>100
66
97
87
8075
70
6560
55
5861
525045
64 6670
97908885
807775
68
60
0
10
20
30
40
50
60
70
80
90
100
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
55
optimistic
pessimisticForecast:
Source: A.T. Kearney
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CR’s Strategic ambitions
Today – what we areThe world’s third Largest Car Refinishescompany
Tomorrow – what we want to beTo challenge the #2 positionin the global Refinishes market
How we will achieve this: Strategic agenda
• Drive profitable growth • Participate in industry consolidation • Achieve operational effectiveness through process improvement
• Maximize employee performance and satisfaction• Strive for world class levels of sustainability and safety• Build and maintain value-creating relationships with key external stakeholders
Investors Visit – September 17, 2009
Klaas Kruithof, PhD - R&D DirectorAkzoNobel Car Refinishes
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Why Paint(ing)
Coloremotion, differentiation
Protectionrust, degrade, extend life cycle
Functionalitya new added-value feature
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Color
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Leadership in Color
• We deliver an “invisible repair” to our customers
• Objective is “1st time OK” for our customers
• Large color offer and high consistency in quality and application
• Understanding of color science
• Benchmark for the Automotive industry for color digitization
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Match by the eye: “color doc”
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Texture: effect colors
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Automatchic 6i
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Automatchic 6i from the inside
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Film technology
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Paint: Delivery forms
Liquid paint, organic solvent
Liquid paint, water
Liquid paint, water, but peelable
All of the above with brush, roller, spray gun, curtain, dip
Powder coating
Hot melt
Paint film, laminate or molding
Film with adhesive, “sticker”
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SoliantPaint film
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Decorative Films and Laminates
Bright film!
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Film technology
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Low-Bake and Fast-Cure
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Application + Cure: integrated process
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Low-Bake and Fast-Cure(Future) Functionality of Coatings
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Scratch and Mar Resistance
• Scratches happen anyway: self-healing effect
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Autoclear LV ExclusiveSelf healing clearcoat, reflow capacity
15 min heat
scratch
6 μm
< 1 μm
15 min heat
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• Dirt removal by rain drops: “lotus effect”
• Nanotechnology
Self Cleaning
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Sustainability
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Eco efficient technology
• Renewable resources
• Low carbon footprint
• Waste reduction
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Energy Capture and Radiation
• Heat absorption or reflection
• Electrical energy (solar cells)
• Glow-in-the-dark
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Our customers’ future first…
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Thank you for your attention
AkzoNobel Car Refinishes
Investors Visit – September 17, 2009