Our new AkzoNobel

Meet AkzoNobel
Tomorrow’s Answers Today
Our new AkzoNobel
• AkzoNobel has announced a major corporate rebranding program
• Tomorrow’s Answers Today reflects our transformation and our
commitment to customers and other stakeholders
• We have transformed ourselves into:
• Undisputed leader in performance coatings
• World’s largest decorative paints company
• Leading specialty chemicals business
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Our new AkzoNobel
• We are fit to face the challenges of the future and help customers
face their challenges:
• Changes in the fundamentals of the global economy
• Increasing scarcity of raw materials but growing global demand
• Changing customer and consumer needs
• We are a sustainable solutions provider that understands the future
needs of our customers, the environment and society
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Our new brand and values
• Our new brand better communicates who we are and what we stand
• Our new values reflect the best practices that already exist in
AkzoNobel and what’s required to support our customers’ futures
• The new, more focused AkzoNobel enables us to build a stronger
corporate brand, supporting our product brands
• Tomorrow’s Answers Today communicates what is different and
better about the new AkzoNobel
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Our new brand
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What we stand for
Tomorrow’s Answers Today
Often people achieve only incremental progress, because their view of
tomorrow is determined by what they see today.
At AkzoNobel, we believe the future belongs to those smart enough to
challenge it. We believe that real progress belongs to those who not only
think with courage, but also have the courage to deliver on the thought.
Tomorrow’s answers, delivered today.
What drives us is knowing that what is good for our customers today is
not necessarily good enough for them tomorrow. What excites us is asking
the unasked question. What inspires us is seeing the opportunity others
cannot. What unites us is the intelligence to deliver where others have not.
This benefits our customers because we sustain their future
competitiveness and meet the consumers’ unspoken needs.
This ambition defines us. This is the way we work. This is why we come
to work. This is AkzoNobel.
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Our new company values
We believe in:
• 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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Our new company values
Our new values represent our commitment to our customers and other
stakeholders. They recognize:
• Your future is our future. Your success is our success
• New ways of thinking and working are needed to be successful
in today’s business environment
• Our people are core to delivering Tomorrow’s Answers Today
• Existing ways of doing things are not necessarily the best way
of doing things
• Integrity and responsibility are the foundation of our relationship
with our customers and other stakeholders
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Implementation
• Global advertising campaign commences May 6, 2008
• All our businesses will be rebranded AkzoNobel
• Products brands will carry the new AkzoNobel logo
• Global rebranding will take up to 18 months and will be managed
through our Business Units
• We use our new company values to deliver Tomorrow’s Answers
Today for all our customers
• There will be no immediate changes to existing customer related
processes
• Additional information about the rebranding will be communicated
to you through your existing AkzoNobel contact
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The new AkzoNobel: Key facts
Revenue by segment
• 2007 € 14.4 billion
• Around 60,000 employees
Key
Decorative Paints
Specialty Chemicals
Performance Coatings
• EBITDA revenue: € 1.9 bln
• EBIT: € 1.4 bln
32%
• Net income: € 903 mln
31%
37%
Pro forma 2007
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AkzoNobel around the world
Revenue by destination
21% North America
49% Europe
(incl. 7% emerging Europe)
19% Asia Pacific
8% Latin America
2% Other regions
Pro forma 2007
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Our company in brief
• One of the world’s leading industrial companies
• Make and supply the widest combined range of paints, coatings and
specialty chemicals
• Employ around 60,000 people in more than 80 countries
• Committed to delivering Tomorrow’s Answers today
• Global Fortune 500 company
• Listed on Euronext Amsterdam stock exchange
• Chemicals industry leader on the Dow Jones Sustainability Indexes
• Combined revenue for 2007 totaled € 14.4 billion (pro forma figures)
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Trusted portfolio of global brands
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Brands and products that...
• Protect the world’s buildings and infrastructure
• Bring color to all aspects of our lives
• Promote safety and good health
• Supply industries worldwide with ingredients for life’s 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
Supervisory Board
Board of Management
Corporate Staff Departments
Business area
Decorative Paints
•
•
•
•
•
•
•
Continental Europe
Northern & Eastern Europe
UK, Ireland & South Africa
Asia
United States
Canada
Latin America
Business area
Performance Coatings
• Industrial Finishes
• Powder Coatings
• Marine & Protective
Coatings
• Car Refinishes
• Packaging Coatings
Business area
Specialty Chemicals
•
•
•
•
•
Pulp & Paper Chemicals
Base Chemicals
Functional Chemicals
Surfactants
Polymer Chemicals
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01
Decorative Paints
Decorative Paints
• AkzoNobel is the world’s leading decorative coatings company
• We bring color to people’s lives
• Decorative Paints supplies a huge range of quality products
for every situation and surface
• As well as paints, lacquers and varnishes, we also make adhesives
and floor leveling compounds
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Key Figures Decorative Paints 2007
Breakdown revenue Decorative Paints 2007
• Revenue € 5.5 EUR bln*
• Number of employees
Key
Europe & South Africa
Americas
Asia
(year-end)* 26,000
13%
33%
54%
* Pro forma combined 2007
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Decorative Paints
Internal & external wall paints and lacquers
• We supply a full range of interior and exterior products – which
both decorate and protect – for the professional and DIY markets
• Customers include trade distributors for professionals and major
consumer outlets serving enthusiastic DIY-ers
DIY
(e.g. The Home
Depot, Rona, Bricomarché, B&Q, OBI and Praktiker)
• We also offer a range of mixing machines, color concepts and
training courses
Woodcare & specialty products
• Our portfolio includes lacquers and varnishes for wood protection
and decoration
• Specialty coatings for metal, concrete and other critical building
materials
Adhesives for the building and renovation industry
• Tile and floor adhesives and floor leveling compounds used for
building and renovation
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From strength to strength
AkzoNobel
Decorative Coatings 2007
ICI’s leading decorative
positions in emerging markets
AkzoNobel and ICI
Decorative Paints combined
Revenue of € 2.4 billion
China
#2
Pro forma combined revenue
in 2007 of € 5.5 billion(1)
India
#4
Indonesia
#2
Malaysia
#1
Pakistan
#1
Thailand
#2
Vietnam
#1
Brazil
#2
Argentina
#1
9% 1%
90%
13%
33%
54%
Key
Key
EMEA
EMEA
Americas
Americas
Asia - Pacific
Asia - Pacific
(1) Based on AkzoNobel’s “Coatings” revenue and ICI’s “Paints” revenue, applied €/ £ exchange rate of 1.478
Sourced from ICI Q2 results 2007
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Industry leading brands
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World leader
• Geographic expansion into high growth markets
• Leadership position in developed markets
• Global decorative coatings market of € 34 billion
• World’s leading decorative coatings company
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Performance Coatings
Performance Coatings
• We’re world leaders when it comes to performance coatings
• Performance coatings have hundreds of uses and we’ve 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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Key Figures Performance Coatings 2007
Breakdown revenue Performance Coatings 2007
• Revenue € 4.6 bln*
• Number of employees
(year-end)* 20,000
Key
Industrial Activities**
Marine & Protective Coatings
Car Refinishes
Packaging Coatings
8%
20%
45%
27%
* Pro forma combined 2007
** Industrial Finishes + Powder Coatings
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Industrial Finishes
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Industrial Finishes
• Wood coatings to decorate and protect furniture, kitchen cabinetry and
building 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 and
appliance markets
• Extrusion coatings applied to some of the world’s most prestigious
high-rise buildings
• Plastics coatings supplied to:
• Consumer electronics industry for cell phones, audio equipment
and 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 world
leader in powder coatings technology
• Powder coatings are solvent-free
solvent
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 coaters
and IT – with our global brands Interpon® and Resicoat®
• We also supply non-stick
stick coatings used on house wares and for a wide
range of specialist industrial applications
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Marine & Protective Coatings
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Marine & Protective Coatings
• We are the global market leader for marine paints, antifoulings and
protective 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 retardant products for large plants and off-shore
off
installations
• Our International® brand has been used by famous customers
including Sydney Harbor Bridge, the London Eye in the UK and
the Beijing Olympic complex
• Marine & Protective Coatings is also home to AkzoNobel’s
Aerospace Coatings activities
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Car Refinishes
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Car Refinishes
• If you’ve ever had your car resprayed, chances are it involved one of
AkzoNobel’s car refinish products
• We are one of the world’s 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
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
hi
internal and
external 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 and
North America and the emerging markets of Asia and Latin America
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03
Specialty Chemicals
Strong platforms for growth
• AkzoNobel is a major supplier of specialty chemicals with leading
positions 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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Key Figures Specialty Chemicals 2007
Breakdown revenue Specialty Chemicals
• Revenue € 4.6 bln*
• Number of employees
(year-end)* 12,250
Key
Pulp & Paper Chemicals
Surfactants
Functional Chemicals
Base Chemicals
Polymer Chemicals
Specialty Chemicals
Chemicals Pakistan
13%
22%
8%
11%
11%
19%
16%
* Pro forma combined 2007
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Pulp & Paper Chemicals
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Pulp & Paper Chemicals
• We have been helping paper manufacturers to improve their products
for 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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Base Chemicals
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Base Chemicals
• Our Base Chemicals business makes salt, chlor-alkali
chlor
products and
derivatives 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. We’re also Europe’s 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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Functional Chemicals
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Functional Chemicals
• Our Functional Chemicals business makes chemical intermediates and
performance chemicals
• Our portfolio includes ethylene amines, chelates and micronutrients,
cellulosic specialties, salt specialties, sulfur products and polysulfides
• These chemicals are used in everyday items such as wallpaper
adhesives, bakery goods, cosmetics, ice cream, PVC and detergents
• They are also in products for the mining, electronics and agricultural
industries
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Surfactants
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Surfactants
• We are a leading global supplier of surface-active
surface
agents
• Surfactants 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
• They’re 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
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Polymer Chemicals
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Polymer Chemicals
• Companies all over the world depend on our organic peroxides,
thermoset chemicals, metal alkyls and polymerization catalysts
• They’re an important ingredient in everything from plastic bags and
shoe soles to automotive parts and mobile phones
• We also supply additives, antifouling & suspending agents and high
purity metalorganics
• Other end products which feature our polymer chemicals include road
marking paints, industrial tanks, golf balls, adhesive tapes, LEDs and
the lasers found inside DVD players
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An exciting future
• Global leader in performance coatings
• World’s largest decorative paints company
• Leading specialty chemicals business
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Creating one of the world’s
leading industrial companies