20
AkzoNobel Specialty Chemicals June, 2017
AkzoNobel Specialty Chemicals
June, 2017
Crop picture
Select picture > click on tab
“Picture Tools > Format”
Click on the icon
above “Crop”
You will see crop
and scale markers
on the corners
Use the “circular scale icon”
to scale your picture within
the cropped region.
AkzoNobel Specialty Chemicals
Top-quartile in safety
and employee engagement
Close to our customers
Focused on open
innovation
Industries worldwide rely on our specialty chemicals to manufacture everyday essentials such as paper, plastics, detergents and ingredients for the construction, agricultural and pharmaceutical sectors.
Leading in sustainability
Title area
max over 2 lines
Insert Topic Icons
Click on the picture icon
and browse to the location
of the Topic Icons
World class Specialty Chemicals business
€4.8bn revenue
€953m EBITDA
€629m EBIT
13.2% ROS
17.9% ROI
North America
24% Mature Europe
43% Asia Pacific
17%
Other countries
2%
Emerging Europe
4%
Latin America
10% * All figures are based on year-end 2016, excluding unallocated corporate center costs and invested capital; assumes no significant market disruption
Balanced portfolio of interlinked businesses
High profitability in all businesses
Proven resilience of portfolio through cycles
Leadership positions in high growth segments
3
Key regions by revenue
€1.3bn revenue
€261m EBITDA
€176 EBIT
13.7% ROS
18.1% ROI
FY 2016 Q1 2017
Crop picture
Select picture > click on tab
“Picture Tools > Format”
Click on the icon
above “Crop”
You will see crop
and scale markers
on the corners
Use the “circular scale icon”
to scale your picture within
the cropped region.
Leading positions driven by key customer relationships
Core competencies
Key customers:
– Most relationships >10 years
– 98% retention of top 250 customers
Global manufacturing: 30% in emerging markets
Strong innovation and sustainability pipeline
– NPI1 >12% and growing
– >5,000 active patents
– Eco-premium focus
Top quartile safety and engagement
Strong business portfolio
Over 80% in leadership positions
Top quartile peer ranking for ROI
Strong operational leverage
1 NPI = New product introductions, last five years
Title area
max over 2 lines
Insert Topic Icons
Click on the picture icon
and browse to the location
of the Topic Icons
Outperform GDP due to focus on markets with strong growth drivers
Key end-user segments
Replacement of phosphates, expanding middle
class, developing countries, haircare
Sustainable packaging, e-commerce
Growth drivers
Share of our
portfolio %
Cleaning, personal care
and pharma
Agriculture and food
Construction
Cardboard packaging and
tissues
Population, changing dietary patterns, need for
higher output per acre
Developing countries, GDP recovery
Plastics growth segments Light weighting, insulation and emission
reduction, construction and consumer packaging 40%
15%
8%
10%
8%
12%
Growth rate
2016-2020 CAGR
5-7%
4-5%
3-4%
5-6%
3-4%
3-4%
Average 4% 93%
Oil and gas (exploration,
downstream, lubes and fuels)
Recovery exploration, clean fuels (new markets)
5
Title area
max over 2 lines
Insert Topic Icons
Click on the picture icon
and browse to the location
of the Topic Icons
Highly profitable, interlinked and resilient portfolio
Business units Platforms Shared capabilities
Polymer chemistry
Industrial Chemicals
(Salt-chlorine chain)
Pulp and Performance
Chemicals
Surface Chemistry
Plastics
industry
Long-term customer
partnerships
Integrated value chains
One ERP
Open innovation and
sustainability
Bio-based and
ethoxy-lation
Green electro-
chemistry
Ethylene and Sulfur
Derivatives
6
Title area
max over 2 lines
Insert Topic Icons
Click on the picture icon
and browse to the location
of the Topic Icons
Serving a wide range of growth markets
Business units Key products
Green electro-
chemistry
7
• Ethoxylates
• Special polymers
• Natural oil & fat-based nitrogen surfactants
• Ethylene oxide
• Ethylene amines
• Chelates/micronutrients
• Cellulosics (CMC)
• Sulfur products (sulfuric acid, polysulfides, CS2)
• Organic peroxides
• Metal alkyls
• Polymer additives
• High-puritiy metal organics
• Chlorine/caustic
• Chloromethanes
• MCA
• Sodium chlorate
• Hydrogen peroxide
• Performance Chemicals
(Expancel, Colloidal Silicas, Kromasil)
Polymer chemistry
Industrial Chemicals
(Salt-chlorine chain)
Pulp and Performance
Chemicals
Surface Chemistry
Ethylene and Sulfur
Derivatives
Crop picture
Select picture > click on tab
“Picture Tools > Format”
Click on the icon
above “Crop”
You will see crop
and scale markers
on the corners
Use the “circular scale icon”
to scale your picture within
the cropped region.
Surface Chemistry
We’re used in…
– Agriculture
– Oil and gas
– Personal care products
– Cleaning products
– Construction
– Mining
– Water treatment
– Cleaning products
Our focus on producing essential
ingredients, such as innovative and
sustainable surfactant and polymer
solutions, includes partnering with
customers to help them overcome many
of their biggest challenges.
We are headquartered
in Chicago
13 production sites
9 RD&I centers
5 technology platforms
Key brands
Crop picture
Select picture > click on tab
“Picture Tools > Format”
Click on the icon
above “Crop”
You will see crop
and scale markers
on the corners
Use the “circular scale icon”
to scale your picture within
the cropped region.
Ethylene and Sulfur Derivatives
We’re used in…
– Agriculture
– Cleaning products
– Food and beverage
– Construction
– Oil and gas
– Pharma
– Personal care products
We are headquartered
In China
16 production sites
4 RD&I centers
7 product lines
We ensure that industries worldwide
are supplied with quality ingredients,
chemical intermediates and
performance chemicals, such as
cellulosic specialties, chelates, ethylene
amines, micronutrients, polysulfides and
sulfur products.
Key brands
Crop picture
Select picture > click on tab
“Picture Tools > Format”
Click on the icon
above “Crop”
You will see crop
and scale markers
on the corners
Use the “circular scale icon”
to scale your picture within
the cropped region.
Polymer Chemistry
We’re used in…
– Plastics and resins
– Rubbers
– Composites
– Pharma
– Electronics
We produce everyday
essentials for the global polymer and
electronic industries including
organic peroxides, metal alkyls,
organometallic specialties and polymer
additives.
We are headquartered
in Chicago, US
12 production sites
1 RD&I centers
8 product lines Trigonox ®
Key brands
Perkadox ®
Crop picture
Select picture > click on tab
“Picture Tools > Format”
Click on the icon
above “Crop”
You will see crop
and scale markers
on the corners
Use the “circular scale icon”
to scale your picture within
the cropped region.
Industrial Chemicals
We’re used in…
– Plastics
– Pharma
– Food and feedstuffs
– Transportation
– Construction
– Cleaning products
We are headquartered
in the Netherlands
11 production sites
1 RD&I centers
5 product lines
We provide essential ingredients for a
range of industries as Europe’s largest
producer of high purity salt and a
leading supplier of chlorine, caustic lye,
hydrochloric acid, chloromethanes and
MCA.
Key brands
Crop picture
Select picture > click on tab
“Picture Tools > Format”
Click on the icon
above “Crop”
You will see crop
and scale markers
on the corners
Use the “circular scale icon”
to scale your picture within
the cropped region.
Pulp and Performance Chemicals
We’re used in… – Pharma – Personal care – Packaging – Water treatment – Plastics – Electronics – Construction – Food and beverage – Transportation
Our bleaching solutions are essential to paper and cardboard industries worldwide, while our colloidal silica solutions, expandable microspheres and silica-based chromatography concepts help enhance people’s lives.
We are headquartered
in Sweden
31 production sites
2 RD&I centers
5 product lines
Key brands
Crop picture
Select picture > click on tab
“Picture Tools > Format”
Click on the icon
above “Crop”
You will see crop
and scale markers
on the corners
Use the “circular scale icon”
to scale your picture within
the cropped region.
Sustainability
Improvement CO2(e) per ton of sales from 2012 cradle-to-grave carbon footprint
9%
We continue to do more with less, reducing carbon emissions through a combination of improved energy efficiency, increased use of renewable energy and higher use of bio-based raw materials in production.
Downstream, we focus on expanding our portfolio of eco-premium products, which have a significant sustainability benefit over common alternatives.
Crop picture
Select picture > click on tab
“Picture Tools > Format”
Click on the icon
above “Crop”
You will see crop
and scale markers
on the corners
Use the “circular scale icon”
to scale your picture within
the cropped region.
Sustainability is business: Reliable, sustainable power
Energy is vital for our industry – up to 80% of variable cost for some products
Reliable, affordable energy is therefore crucial
Our renewable portfolio:
– Reliable: more suppliers, fewer imports
– Low exposure to fuel and carbon prices
– Source of new value chains
Running on green power
Green hydrogen: from power to product
Purchase agreement with Google, Philips, DSM
for two new wind farms for a total of 140 MW
(140,000 households)
Partnership with Vattenfall to increase renewable
electricity supply in the Nordics – to 100% by
2020
Production of hydrogen from surplus
green power
Hydrogen then sold or used as ingredient for
other chemicals
Crop picture
Select picture > click on tab
“Picture Tools > Format”
Click on the icon
above “Crop”
You will see crop
and scale markers
on the corners
Use the “circular scale icon”
to scale your picture within
the cropped region.
Sustainability is business: Growing with customers
Chemical island: saving with our customers
Direct integration with customer for supply of
bleaching chemicals to paper mill
Wood plantation for local raw materials and
energy from waste wood
Lower footprint, lower costs, lower risk
>50% of new products provide a sustainability benefit to customers
Our analysis includes entire value chain
Helping customers capture growth due to:
– Better sustainability profile
– Meeting increasingly stringent requirements
Berol DR-B1, a safe and sustainable ingredient
Sustainable, biodegradable, mild surfactant
Approved by US EPA for direct release into the
environment
Provides customers with a sustainable, high-
performing option for outdoor cleaning products
Crop picture
Select picture > click on tab
“Picture Tools > Format”
Click on the icon
above “Crop”
You will see crop
and scale markers
on the corners
Use the “circular scale icon”
to scale your picture within
the cropped region.
Innovation
Invested in RD&I per year
€100mln
Patents
>5,000
We believe that breakthrough solutions require collaboration across the value chain, and we continue to forge resilient partnerships through a model of open innovation.
Crop picture
Select picture > click on tab
“Picture Tools > Format”
Click on the icon
above “Crop”
You will see crop
and scale markers
on the corners
Use the “circular scale icon”
to scale your picture within
the cropped region.
12% of sales from
new product
innovations
Product innovations
Bolikel XP, a next generation, biodegradable micronutrient helps combat iron deficiency in crops
Expancel microspheres can expand up to 60 times in volume – applications range from wine corks to coatings and lightweight boats
Crop picture
Select picture > click on tab
“Picture Tools > Format”
Click on the icon
above “Crop”
You will see crop
and scale markers
on the corners
Use the “circular scale icon”
to scale your picture within
the cropped region.
Customer productivity
Process innovation
30% Continuous Initiator Dosing™ offers continuous dosing equipment to PVC customers
Improves customer productivity up to 30% and delivers better PVC quality
Crop picture
Select picture > click on tab
“Picture Tools > Format”
Click on the icon
above “Crop”
You will see crop
and scale markers
on the corners
Use the “circular scale icon”
to scale your picture within
the cropped region.
Innovative solutions submitted
Imagine Chemistry: Innovating with start-ups
200
Global start-up challenge to find sustainable innovations in chemistry helps identify new business opportunities
Over 200 ideas submitted in online community
Partnerships with 10 promising teams Follow us: @imagineChem
www.akzonobel.com
