Akzo Nobel N.V. · EURONEXT:AKZA
Akzo Nobel — Shareholder Meeting (September 2006)
11 slides from Akzo Nobel's shareholder meeting presentation, Sep 7, 2006
Slide 1: Extraordinary General Meeting of Shareholders
Extraordinary General Meeting of Shareholders Proposed change in identity of the current Akzo Nobel Group – Separation into two independent companies September 7, 2006 1
Slide 2: Background
Background • Akzo Nobel has implemented a successful strategy and has established a strong platform for future growth – Fixed Pharma – Invested in Coatings – Refocused Chemicals • Ideal time to review optimum business structure • Decision taken to create two independent companies, both of which have
Slide 3: Akzo Nobel Today
Akzo Nobel Today Revenues: 13.0 Headcount: 61,400 Organon/Intervet Organon/Intervet Coatings 3.5 Coatings 19,400 5.6 30,000 Chemicals Chemicals 3.9 12,000 2005 in EUR bln Employees end 2005 3
Slide 4: Two Attractive Growth Platforms
Two Attractive Growth Platforms Akzo Nobel Organon BioSciences Intervet 30% Chemicals 40% Coatings Organon 60% 70% – EUR 9.5 billion in 2005 revenues – EUR 3.5 billion in 2005 revenues – 42,000 employees – 19,400 employees – #1 global position in coatings – Fully integrated pharmaceutical business –
Slide 5: Rationale: Enhanced Shareholder Value
Rationale: Enhanced Shareholder Value • Provides greater management and strategic focus – Creates right management framework for businesses with different financial and risk profiles • Gives greater market transparency – Highlights the value of each business 5
Slide 6: Strategy of Akzo Nobel
Strategy of Akzo Nobel • Management focus on cohesive portfolio – Coatings/Chemicals • Build one professional focused Akzo Nobel organization • Re-enforce Coatings’ No. 1 global position and accelerate growth through targeted investments and acquisitions • Grow Chemicals both organically and by acqu
Slide 7: Strategy of Organon BioSciences
Strategy of Organon BioSciences • Further develop Organon’s strengths in its core areas • Expand biotechnology capabilities • Build upon broad-based leadership in animal health • Exploit potential synergies between human and animal health • Further strengthen our portfolio and pipeline through licen
Slide 8: Overview of Intended Transaction
Overview of Intended Transaction • Minority divestment of 20-30% through a listing on Euronext Amsterdam • Supervisory Board recommendation / positive advice from Central Works Council in the Netherlands • Minority separation expected to take place by early 2007 dependent upon: – Developments at Org
Slide 9: Governance During the Majority Stake of Akzo Nobel
Governance During the Majority Stake of Akzo Nobel • Full consolidation of Organon BioSciences • Ability to approve Organon BioSciences resolutions on material matters • Necessary rights to monitor ownership stake adequately 9
Slide 10: Use of Proceeds / Dividend Policy
Use of Proceeds / Dividend Policy • To provide Organon BioSciences with appropriate capital structure • Reduce Akzo Nobel’s pension and other liabilities • Support Akzo Nobel growth strategy – investments and acquisitions in Coatings and Chemicals • Regularly evaluate funds required for growth ambit
Slide 11: Summary
Summary • Logical next step • Establish two strong independent companies with exciting futures • Provide increased management focus and unlock potential in each business • Deliver enhanced shareholder value 11