Akzo Nobel N.V. · EURONEXT:AKZA
Akzo Nobel — Investor Presentation (February 2010)
49 slides from Akzo Nobel's investor presentation, February 2010
Slide 1: Meet AkzoNobel – Tomorrow's Answers Today
Meet AkzoNobel Tomorrow’s Answers Today
Slide 2: Our company in brief
Our company in brief • The world’s largest paint and coatings company and a world leading chemicals producer • Committed to delivering Tomorrow’s Answers Today • Global Fortune 500 company • For five consecutive years listed as one of the leaders of the Dow Jones Sustainability Indexes (Chemical sec
Slide 3: AkzoNobel key facts
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 (Moody’s) Revenue by business area EBITDA* by business area 29% 29% 31% 37% 37% 43% Performance Coatings 34% 26% Decorati
Slide 4: AkzoNobel is the world's largest Coatings supplier
AkzoNobel is the world’s largest Coatings supplier 2008 revenue in € billion 10 8 6 4 2 0 s n t t ar nt co G el F in on am tu S i PP sp ob Pa as Pa Jo uP BA illi l M Va oN n ai D -W po ns kz in ip Ka A w N er Sh 4
Slide 5: Excellent geographic spread of both revenue and profits
Excellent geographic spread of both revenue and profits High-growth markets are important (37% of revenue) % of 2009 revenue 39% 21% 7% ‘Mature’ Europe 20% North America ‘Emerging’ Europe Asia Pacific 9% Latin America 4% Rest-of-world High-growth markets profitability is above average 5
Slide 6: Strong emerging markets growth potential
Strong emerging markets growth potential Mature Emerging Per Capita Per Capita Architectural Paint 8 liters < 2 liters Industrial and Special Purpose Coatings 13 liters < 6 liters Plastics ~100 kg ~20 kg Paper ~170 kg ~25 kg Source: Food & Agriculture Organization of the UN, 2005 data for paper and
Slide 7: We have strong brands across the full spectrum of our business
We have strong brands across the full spectrum of our business Biggest brands, per business area % of 2009 revenue 25% of Decorative Paints 23% of Performance Coatings 18% of Specialty Chemicals 7
Slide 8: Successful customer focus
Successful customer focus Sikkens Autoclear® LV Exclusive – Self-healing clearcoat A 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 for your world and the world To be launched in
Slide 9: Low fixed costs as a percentage of revenue
Low fixed costs as a percentage of revenue % of 2009 annual revenue* 100% Raw materials, energy, and other variable production costs Fixed production costs Selling, advertising, administration, R&D costs EBIT margin 0% Decorative Performance Specialty AkzoNobel Paints Coatings Chemicals * Rounded pe
Slide 10: Sustainability is integrated in everything we do
Sustainability is integrated in everything we 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 ambi
Slide 11: AkzoNobel strategic ambitions
AkzoNobel strategic ambitions Leading in value creation • Outgrow our markets • EBITDA margin > 14 percent by end 2011 • 0.5 percent improvement in operating Tied to incentives, working capital (OWC) level, p.a. both for value creation and Leading in sustainability sustainability • Top 3 Dow Jones S
Slide 12: Trusted portfolio of global brands
Trusted portfolio of global brands 12
Slide 13: Brands and products that...
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 s
Slide 14: Organizational overview
Organizational overview Supervisory Board Board of Management Corporate Staff Departments Business area Business area Business area Decorative Paints Performance Coatings Specialty Chemicals • Industrial Finishes • Functional Chemicals • Continental Europe • Powder Coatings • Pulp & Paper Chemicals
Slide 15: Decorative Paints
01 Decorative Paints
Slide 16: Decorative Paints key facts
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 4% 10% Europe Asia
Slide 17: Decorative Paints
Decorative Paints • AkzoNobel is the world’s leading decorative coatings company with strong 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 marke
Slide 18: Decorative Paints
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 18
Slide 19: Industry leading brands
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 19
Slide 20: World leader
World leader • Geographic expansion into high growth markets • Leadership position in developed markets • Global decorative coatings market of around €34 billion • World’s leading decorative coatings company 20
Slide 21: Performance Coatings
02 Performance Coatings
Slide 22: Performance Coatings key facts
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 Revenue by business unit Revenue by geography 8% 6% Industrial F
Slide 23: 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 rang
Slide 24: Industrial Finishes
AkzoNobel Tomorrow's Answers Today Industrial Finishes 1) PL 24
Slide 25: Industrial Finishes
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
Slide 26: Powder Coatings
Powder Coatings Insert graphic to fit this box 26
Slide 27: Powder Coatings
Powder Coatings • We are the largest global manufacturer of powder coatings and a world leader 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
Slide 28: Marine & Protective Coatings
Marine & Protective Coatings Insert graphic to fit this box 28
Slide 29: Marine & Protective Coatings
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 brid
Slide 30: Car Refinishes
AkzoNobel Tomorrow's Answers Today Car Refinishes ~ . ~ ~~ ~—/ = ~ = ~</ o > O& > — — af Fe « <j ) + ~~ XJ ll 30
Slide 31: Car Refinishes
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 owner
Slide 32: Packaging Coatings
AkzoNobel Packaging Coatings
Slide 33: Packaging Coatings
Packaging Coatings • Our Packaging Coatings business leads the way in hi-tech 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 u
Slide 34: Specialty Chemicals
03 Specialty Chemicals
Slide 35: Specialty Chemicals key facts
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 Revenue by business unit Revenue by geography Functional Chemicals 3% 7
Slide 36: Strong platforms for growth
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 36
Slide 37: Functional Chemicals
AkzoNobel Functional Chemicals Tomorrow's Answers Today
Slide 38: Functional Chemicals
Functional Chemicals • Effective January 1, 2010 Polymer Chemicals has merged into Functional 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
Slide 39: Pulp & Paper Chemicals
Pulp & Paper Chemicals 39
Slide 40: Pulp & Paper Chemicals
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 chem
Slide 41: Industrial Chemicals
AkzoNobel Tomorrow's Answers Today Industrial Chemicals 41
Slide 42: Industrial Chemicals
Industrial Chemicals • Our Industrial Chemicals business makes salt, chlor-alkali 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,
Slide 43: National Starch
AkzoNobel Tomorrow's Answers Today National Starch 43
Slide 44: National Starch
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 she
Slide 45: Surface Chemistry
AkzoNobel Surface Chemistry Tomorrow's Answers Today 45
Slide 46: Surface Chemistry
Surface Chemistry • We are a leading global supplier of surface-active agents and specialty polymers • 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
Slide 47: Chemicals Pakistan
AkzoNobel Chemicals Pakistan Tomorrow's Answers Today
Slide 48: Chemicals Pakistan
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 isn’t. • Our main areas of expertise
Slide 49: Creating one of the world's leading industrial companies
Creating one of the world’s leading industrial companies • World’s largest decorative paints company • Global leader in performance coatings • Leading specialty chemicals business 49