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March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel...

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Investor visit AkzoNobel China March 10, 2011
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Page 1: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Investor visit AkzoNobel China

March 10, 2011

Page 2: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

• AkzoNobel & strategic ambitions – Marjan Oudeman

• China & AkzoNobel - Jorn Seiero

• Decorative Paints in China - Felix Jiang • Performance Coatings in China - Leon Ouziel• Specialty Chemicals in China - Geert Hofman

• Growth ambitions – Jorn Seiero

• Questions

Agenda

1Investor visit AkzoNobel China

Page 3: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

AkzoNobel key facts

2

2010• Revenue €14.6 billion• 55,590 employees• EBITDA: €2.0 billion*• Net income: €0.8 billion• 39 percent of revenue from high-growth markets• A leader in sustainability

* Before incidentals

Revenue by business area EBITDA* by business area

Investor visit AkzoNobel China

Page 4: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Our strategic ambition is to be

3Investor visit AkzoNobel China

Page 5: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Our medium term strategic goals

4

• Grow to €20 billion revenues• Increase EBITDA each year,

maintaining 13-15% margin• Reduce OWC/revenues by 0.5

p.a. towards a 12% level• Pay a stable to rising dividend

• Top quartile safetyperformance

• Top position in sustainability• Top quartile performance in

diversity, employee engagement, and talent development

• Top quartile eco-efficiency improvement rate

Investor visit AkzoNobel China

Page 6: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Aspirations for high-growth markets

5

Double revenues in China• Grow from $1.5 to $3 billion of revenues • Make a step change in people development

Create significant footprint in India• Grow from €0.25 to €1 billion of revenues• Increasing footprint for all business areas

Outgrow the competition in Brazil• Grow from €0.75 to €1.5 billion of revenues• Become clear market leader in all our activities

Expand in Middle East and Sub-Saharan Africa

Investor visit AkzoNobel China

Page 7: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

High-growth markets will become significantly more important

6

% of revenue, indicative

High-growth markets will be around 50% of revenue in this decade

32%‘Mature’ Europe

25%Asia Pacific

5%ME&A

11%Latin America

18%North America

9%‘Emerging’ Europe

Investor visit AkzoNobel China

Page 8: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

China & AkzoNobel

7Investor visit AkzoNobel China

Page 9: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

China snapshot

Investor visit AkzoNobel China

China key figures 2010

AkzoNobel China key figures 2010

GDP $5.5 trillion Revenue €1.25 billionPopulation 1.3 billion Employees1 6,700Per capita $4,200 EBIT2 €161 millionTrade surplus $147 billion

10 month ytd Oct 2010Operating income

€162 million

Foreign reserves

$2.6 trillion$900 billion in US Bonds

Invested capital3

€952 million

Cities 160>1 million people

Capital expenditures

€48 million

Mega-cities 9>10 million people

Sites 28

1 At year-end2 Before incidentals3 Excluding National Starch, divested in 2010

8

Page 10: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

AkzoNobel in China: a brief view

• AkzoNobel established its first manufacturing (license) agreement in 1982.

• We are already the biggest Paint, Coatings and Specialty Chemicals company in the world; we do have the same position in China.

• We are seeking sustainable growth: we will stay a leader in sustainability and continue to expand our delivery of eco-premium solutions (25% of sales in 2010) and reducing our carbon footprint; this ambition is aligned very well with Chinas ambition in their new 5-year Plan.

• China is our most important growth market and our action is to double our business 2009 -2014 to 20 Bn RMB.

Investor visit AkzoNobel China 9

Page 11: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Business Areas/BUs in China

Performance Coatings

Specialty Chemicals

DecorativePaints

• One BU• Dulux brand Levis

brand• Homogenous

• Functional Chemicals

• Surface Chemistry

• Pulp & Paper Chemicals

• Industrial Chemicals(MCA only)

• Marine & Protective Coatings

• Automotive & Aerospace Coatings

• Powder Coatings

• Wood Finishes & Adhesives

• Industrial Coatings

Investor visit AkzoNobel China 10

Page 12: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

AkzoNobel China locations perBusiness Area

Decorative Paints Performance Coatings Specialty Chemicals

Guangzhou, Dongguan

Suzhou Shanghai

Langfang

Beijing

Shenzhen

NingboJiaxing

Tianjin

Chengdu

Taixing

Wuhan

Investor visit AkzoNobel China 11

Page 13: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Where are we now

Business Area Business Unit Sub Business Unit Manufacturing sites

Decorative Paints 2 B2C & B2B 3

Performance Coatings

Automotive & Aerospace

2 Car Refinishes &Aerospace's Coating

1

Industrial Coatings 3 Coil, Specialty &Packaging Coating

3

Marine and Protective Coatings

2 2

Powder Coatings 2 Interpon & Resicoat 6

Wood Finishes and Adhesives

1 2

Specialty Chemicals Functional Chemicals 5 Elotex, EA/EO, Chelates, Cellulosic & additives

6

Industrial Chemicals 1 1

Pulp & Paper Chemical

1 2

Surface Chemistry 2 Personal Care & Surfactants

1

Investor visit AkzoNobel China 12

Page 14: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

We are embarking on the next chapter of our journey in China

One AkzoNobelapproach to

accelerated andsustainable

growthChina Steering

Committee(s)BU-by-(s)BU

~ RMB 5 b

~ RMB 10 b

RMB 20 b

• Build (s)BU teams• Build a strong customer

base, often based on ‘following’ customers abroad

• Set up (s)BU supply chains

• Opportunistic transfer of best practices

• Continue to build (s)BU organizations, customer bases, supply chains

• Develop a strong local talent base and benches in each (s)BU

• Set up a shared service organization (Legal, Tax, Treasury, HR, HSE)

• Move into a shared office

• Continue to build (s)BU organizations, customer bases, supply chains

• Develop China revenue and synergy targets

• Develop common approaches that maximize the market potential for AkzoNobel

• Operationally manage key functions across AkzoNobel

13Investor visit AkzoNobel China

Page 15: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Decorative Paints in China

Investor visit AkzoNobel China 14

Page 16: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Decorative Paints China

• Established in 1990, first JV with Swire Pacific

• 3 Factories and 7 Regional Sales clusters, +1,300 employees

• Key Player in Decorative Paint Market

• Channel: Traditional Trade, Modern Trade & Project

• Consumers: BIY, DIY, HID

• Category: Emulsion, Woodcare, HPC & Pre-Deco

• Our Mission: we bring color to peoples lives

Investor visit AkzoNobel China 15

Page 17: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Decorative Paints China

• 10 years consecutive growth significantly outpacing market pace

• Highly profitable. Negative operating working capital

• Superior DULUX brand innovating Super Premium to Mid Tier

• Expansive Controlled Distribution model covering Tier1 to Tier 3

cities

• Traditional, Modern, Projects channels

• Managed by a highly capable team accustomed to “winning”

• Business Conduct/Control/SSHE standards and performance are

high

Investor visit AkzoNobel China 16

Page 18: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Our Business Portfolio

Traditional Trade

Modern Trade

Professional

Project

Channel

Our business is retail focus with majority business contributed by Traditional Trade, particular the DuluxControl stores.

Premium

Mid-Tier

Low-End

Woodcare& Others

Products

We have a balanced product portfolio to meet difference customer’s need with focus on Premium segment.

Tier 1

Tier 2

Tier 3

Geographic

We have covered +600 cities in China, focus on all T1, T2 and big T3 cities.

Investor visit AkzoNobel China 17

Page 19: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Existing DDCN store format

Investor visit AkzoNobel China 18

Page 20: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

New DDCN design has been rolled out in H2 of 2010

Investor visit AkzoNobel China 19

Page 21: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Easy Paint Service - Future Growth!

Investor visit AkzoNobel China 20

Page 22: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Performance Coatings in China

Investor visit AkzoNobel China 21

Page 23: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Performance Coatings- make it happen!

• Leading positions in China for most areas

• Global network is supporting the growth and development here in China

• Technology differentiation

• Exciting growth drivers

Investor visit AkzoNobel China 22

Page 24: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Many market leadership positions

23

Wood Finishes and Adhesives

PowderCoatings

Marine andProtective

Automotive & Aerospace Coatings

IndustrialCoatings

21

35

RefinishOEMcommercial

Automotiveplasticcoatings

Powder

1

Aerospace

MarineProtectiveYacht

1

1

WoodAdhesivesSpecialty Plastics

Beer &BeverageCoilPackaging

Food cansother

2

1

CarAerospace

Investor visit AkzoNobel China

Page 25: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Business approaches

Marine & Protective Coatings• Strategy: to continue No.1 position in China on global

shipbuilding; there is good opportunity for Protective Coatings in Geographical and market segment expansion.

Wood Finishes & Adhesives • Strategy: to maintain our No.1 position in the export

market while our biggest growth opportunity is expanding into the local market and introducing new technology.

Automotive & Aerospace Coatings • Strategy: both industries are expanding rapidly in China

and we are to maintain our leading position in technology.Powder Coatings

• Strategy: to maintain profitable growth ahead of the market by leading the development of new market segments for Powder Coatings; at the same time we compete with innovative propositions in the traditional ones.

Industrial Coatings• Strategy: to become the new one supplier in the aluminum

soft drink segment; to enhance our position in the food can market, which is a great opportunity for us.

Investor visit AkzoNobel China 24

Page 26: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Recent developments in Powder Coatings

• 30% sales growth in 2010

• Opening of 6th factory in China: Wuhan

• First Autobody coated in China with Powder

• First replacement of liquid by Powder in ACE

• First Powder topcoat in Laptops

Investor visit AkzoNobel China 25

Page 27: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Market growth drivers

• Development of infrastructures• Railways• Airports• Construction equipment

• Urbanisation• Building activity• Household fittings and appliances

• Improvements in farming• Agricultural equipment

• Environmental regulations & attitudes• Search for eco-efficient paint solutions

Investor visit AkzoNobel China 26

Page 28: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Infrastructure developments

(km) 2010 2020

Total rail network 79000 120000High speed 4000 16000

Sound barriersSeat frames (SMC)Interiors

Investor visit AkzoNobel China 27

Page 29: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Infrastructure developments (cont.)

Investor visit AkzoNobel China 28

Page 30: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Improvements in farming

Investor visit AkzoNobel China

18,000,000 Agricultural tractorsin use in ChinaSource FAO 2007

DongFeng Tractor

29

Page 31: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Rapid urbanisation…going greener

• Half the world buildings built between now and 2020 will be in China

• 400 new cities to be created by 2020• Currently 10 projects for >600m buildings and

50 for >300m• 45 new airports planned in 5 years• New regulations in Chinese main cities ask for

energy reductions of 50% in all new buildings• 25% of buildings in medium size cities and 10%

in small cities refurbished “greener” by 2020• 1000 new “special” projects / year (high rise

buildings, shopping centres, sport facilites, etc…)

Investor visit AkzoNobel China 30

Page 32: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Creating new markets for Powder Coatings

Investor visit AkzoNobel China 31

Page 33: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

We are succeeding!

Investor visit AkzoNobel China 32

Page 34: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Specialty Chemicals

Investor visit AkzoNobel China 33

The formal inauguration of the Ningbo site – which occupies a 50-hectare plot, is the largest plant investment ever and offers ideal opportunities for any future investments – took place in November 2010

Page 35: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Ningbo multi-site inauguration

Investor visit AkzoNobel China 34

Page 36: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

The chemical industry value chain

Industrial Chemicals

Surface Chemistry

Pulp and Paper Chemicals

Functional Chemicals

Mining, oil, biomaterials

Base chemicals

Chemical inter-mediates

Performance/functionalchemicals

‘End’ products

Investor visit AkzoNobel China 35

Page 37: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Many market leadership positions in China

36

FunctionalChemicals

IndustrialChemicals

Pulpand Paper

SurfaceChemistry

3

1

1

3IndustrialAgricultural

Home &Personal care

sulfur products, polysulfides, organic peroxides,

1Monochloro-acetic acid (MCA)

1

Chelates, Ethylene amines,metal alkyls, Elotex, Bermocoll

2

3 Retentionand sizing chemicals

Investor visit AkzoNobel China

Page 38: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Business approaches

Industrial Chemicals• Strategy: Our MCA business doubled its

capacity in 2010 and are now running at 100% we look for new way of expanding capacity

Pulp and Paper Chemicals • Strategy: We have just established a new

silica factory in Guangdong to meet growing market need

Surface Chemistry • Strategy: we provide mid market solutions that

allow local market leaders to enhance and differentiate their products in the global market

Functional Chemicals • Strategy: The New Ningbo plant open-end in

2010 will meet demand over the next year and leave us room for significant expansion

Investor visit AkzoNobel China 37

Page 39: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Growth ambitions

38Investor visit AkzoNobel China

Page 40: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

China’s Mega Trends are a huge opportunity for AkzoNobel• Population growth in China will stagnate unless a

ease of the 1 child policy is implemented. The total population 1,4 Bn is aging and the active workforces is shrinking.

• Quality of life will improve for all Chinese and a huge new middle class of millions of people will develop . The overall purchasing power will increase as the ppp is expected to quadruple in the next 10 year.

• Climate change will increase the focus on low carbon emission in China. This is already a key element in the government plan and will become more and more prominent. AkzoNobel is well equipped to meet this challenges.

• Scarcity of natural resources will drive innovation. And China need a lot of innovating and are likely to work with people / company there can and will help them.

Investor visit AkzoNobel China 39

Page 41: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Market size opportunity

1.3 million tons = 47 billion RMB (2008) 3.2 million tons = 93 billion RMB (2014)

6.6 trillion RMB (2009)

Growing 2 to 3 % above GDP

Key players:Sinopec: $206 billionCNPC: $176 billionSinoChem: $30 billionCNOOC: $30 billionChem China: $15 billionOthers: $530 billion

4.5 million tons = 109 billion RMB (2008)7.5 million tons = 208 billion RMB (2014)

Market potentialMarket potential

Decorative Paints

Specialty Chemicals

Performance Coatings

>10,000 Paints and Coatings registered

producers!

Investor visit AkzoNobel China 40

Page 42: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

0

500

1.000

1.500

2.000

2.500

3.000

3.500

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2012 2015

AkzoNobel China Revenue (Mn US$)

China GDP (US$)

Growth in AkzoNobel China

*Figures not adjusted for exchange rate fluctuations

Every three years China has doubled sales (20% CAGR)

Decorative PaintsPerformance CoatingsSpecialty Chemicals

New Building and Wood

AkzoNobel takes over of ICI

Hans Wijers statement in 2007: $2 Bn by 2012

New Vision:$ 3 billion

Investor visit AkzoNobel China 41

Page 43: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

How we will grow

Organic growth• Normal market development we believe this to be as you say 8 – 10% YoY

+ 2 -3 % in addition for our industry this will• Geographical growth we are mainly active in the coastal area and there are

huge opportunity in relative developed area in west, north can add market share

• Key Account management is the opportunity to get a better cross BU grip on the market and by the find new opportunities for all business

• Define and develop midmarket is a huge opportunity and also a must to avoid losing out to successfully entrants into this segment but other MNC or strong local company

• Scales up the present of non resident (s)BU not really present in China today

Innovation pipeline• Product • Emphasis on focused, value for money, sustainable innovation

Market developmentThere is obviously opportunity form M&A and partnership arrangement

• Wide range of opportunities • All Business Areas qualify

Investor visit AkzoNobel China 42

Page 44: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Taking on the massive shift of growth into mid-market segments

Typical MNC entry point‘Global’ value propositions, technology and business models

Typical focus of local competitorsLow cost ‘local’ value propositions, low-end technology and business models

Intense battle between global companies moving down and local companies moving up

TopSegment

Middle Market

Low-end

Investor visit AkzoNobel China 43

Page 45: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Innovation

First powder-coated vehicle in ChinaInterpon® in cooperation with C&C Trucks China embedded green concept into pioneering applications in China

Dulux® Ecosure™ Matt Light & Space™Uses revolutionary LumiTec technology to reflect up to twice as much light around the room making even the smallest of rooms look and feel more spacious compared to our conventional emulsion paints.

Stickerfix™ Easier than easy!You can repair and protect your car using a unique easy to apply and remove vinyl technology. It’s coated with professional car maker approved repair systems of Sikkens, Lesonal and Dynacoat.

Automotive Solid Colour MonocoatIn production by TATA motors

Investor visit AkzoNobel China 44

Compozil® Fx – Better performance. Exceptional results A wet end management system for the largest and fastest paper machines helping to deliver top quality paper faster with higher productivity, better economy and reduced environmental impact.

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How it worksThree key elements

Sustainability assessment

tools

Anti-corrosion additives

knowledge

Hazardous chemicalhandling

Communitiesof Practice

ExpertCapability

Groups

Business Resources

Business specific capability & applications knowledge

Expert centres in six core sciences

Networks to leverage

knowledge

Bigger innovations

Faster solutions

Environmentally friendly

polysulfides

In-line mixing and dispersion of

slurries

Novel powder coatings

Investor visit AkzoNobel China 45

Page 47: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Growth accelerators

• Insight into global and local trends & innovation needs e.g. the 12th 5 year plan

• Right balance of bolder innovation with incremental development

• Capitalizing on AkzoNobel’s scale in China and building capability & talent

• Open for innovation & strategic partnering

• Continue and accelerate the move to North and West China

Investor visit AkzoNobel China 46

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AkzoNobel Solution Promises

Creating new horizons in functionality

Saving you time and effort

Move towards zero footprint

Bringing products for well-being and identity

Coatings and energy management

Serving the needs of the Chinese mid-market

Rapid curing and totally water-borne

Surfaces to control vector-borne diseases

Investor visit AkzoNobel China 47

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How we embed safety and sustainability into the strategic agenda

Economic

Investor visit AkzoNobel China 48

InnovationValue propositions for a resource constrained world

Accelerated growthEco-premium solutions that deliver eco-footprint reduction across the value chain

Global mid-marketSolutions for people demanding both higher living standards and affordability

Functional excellenceSafety, operational eco-efficiency, product stewardship, supplier visits

Capital and cash managementProcess safety and sustainable investment evaluation

Industry-leading Talent FactoryEmployee engagement, development and training

Culture of confidence, cooperation and co-creationDiversity and inclusion, partnerships, stakeholder involvement, Community Program

Page 50: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

How China contributes to our medium term strategic ambitions

Investor visit AkzoNobel China 49

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Questions

50Investor visit AkzoNobel China

Page 52: March 10, 2011 Investor visit AkzoNobel China… · ‘Emerging’ Europe Investor visit AkzoNobel China. China & AkzoNobel Investor visit AkzoNobel China 7. China snapshot Investor

Safe Harbor Statement

Investor visit AkzoNobel China 51

This presentation contains statements which address such key issues as AkzoNobel’s growth strategy, future financial results, market positions, product development, products in the pipeline, and product approvals. Such statements should be carefully considered, and it should be understood that many factors could cause forecasted and actual results to differ from these statements. These factors include, but are not limited to, price fluctuations, currency fluctuations, developments in raw material and personnel costs, pensions, physical and environmental risks, legal issues, and legislative, fiscal, and other regulatory measures. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. For a more comprehensive discussion of the risk factors affecting our business please see our latest Annual Report, a copy of which can be found on the company’s corporate website www.akzonobel.com.


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