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• Introduction, Maëlys Castella
• Decorative Paints, Jeremy Rowe
• Performance Coatings, Thijs Bakker
• Specialty Chemicals, Maëlys Castella
• Summary, Maëlys Castella
• Q&A
Agenda
2 AkzoNobel in Asia | Singapore June 2015
3 AkzoNobel in Asia | Singapore June 2015
Introduction Maëlys Castella
4 AkzoNobel in Asia | Singapore June 2015
AkzoNobel strategy introduced in 2013
• Organic growth
• Operational excellence
Our proposition: Leading market
positions delivering leading performance
5 AkzoNobel in Asia | Singapore June 2015
AkzoNobel has gone through a significant amount of
strategic change over the past five years
Today, the company has
• Excellent portfolio of businesses
• Good long term growth potential on the basis of end-user segment growth
• Strong positions in high growth markets (44% of revenue)
• Leadership positions in many markets
• Clear leader in sustainability
• Track record of delivering sustainable innovations and products
• Strong brands, both in consumer and industrial markets
Clear focus to deliver on our significant potential
• Improved returns and cash flow
• Leveraging scale
• Simplification and standardization
• Continued innovation
< 8.9 9.6
10.0 14.0
0
4
8
12
16
2012 2013 2014 2015
Return on sales
(Operating income/revenue)
%
6
Return on investment
(Operating income/average
12 months invested capital)
%
Net debt/EBITDA
x
2015 financial targets focused on quality of earnings and value creation
Q1 2015 - ROS 8.5% and ROI 10.6%
On track to achieve 2015 targets
* 2012 excluding impairment (€2.1 billion) and after IAS19
5.9 6.6
6.9 9.0
0
4
8
12
2012 2013 2014 2015
1.4 1.0 1.0
2.0
0
1
2
3
2012 2013 2014 2015
* *
AkzoNobel in Asia | Singapore June 2015
7
High growth markets are 44% of revenue and their importance will increase
% of 2014 revenue
37%
Mature Europe
26%
Asia Pacific
4%
Other regions
10%
Latin America
15%
North America 8%
Emerging Europe
Share of revenues from high growth markets will increase over time
AkzoNobel in Asia | Singapore June 2015
Overall market conditions remain challenging in many countries
8 AkzoNobel in Asia | Singapore June 2015
Brazil Indonesia
France
Turkey
China
Taiwan
Japan India
Germany
Vietnam Mexico
US
40
50
60
Man
ufa
ctu
rin
g P
MI
*Bubble size=manufacturing value-added output, 2015e (US$bn: 2010 prices)
Source: Markit, Oxford Economics
Purchase Managers’ Index (PMI)*
April 2015
Consumer confidence is high and increasing for most Asian countries
9
Consumer confidence, Q1 2015
Figures below 100 indicate some degree of pessimism
Source: Nielsen AkzoNobel in Asia | Singapore June 2015
130 123 112 107 106 100 97 89 88 87 86 79 73 72 60
0
20
40
60
80
100
120
140
Recent trends compared
to Q4 2014
Economic growth rates in Asia remain above other regions
10 AkzoNobel in Asia | Singapore June 2015
Regional GDP forecast
Source: Economist Intelligence Unit
North America
Latin America
Western Europe
Eastern Europe
Asia-Pacific
Middle East & North Africa
-1%
0%
1%
2%
3%
4%
5%
2012 2013 2014 2015 2016 2017 2018
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2014
• Revenue €3.7 billion (26% total)
• 14,300 Employees
• CapEx €109 million
Revenue by Business Area %
11 AkzoNobel in Asia | Singapore June 2015
We have a large presence in Asia with all business areas represented
29%
47%
24%
Decorative Paints
Performance Coatings
Specialty Chemicals
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Decorative Paints
Up to 10% annual energy savings
Planet possible
We recently launched Dulux
Powerflexx with superior
protection for exterior walls and
“Keep Cool” feature to reduce
temperature of the interior and
deliver energy savings.
12 AkzoNobel in Asia | Singapore June 2015
Performance Coatings
Major project secured
Driving innovation
We will protect with over 500,000
liters of coatings a Floating
Production Unit fabricated in
South Korea and operating in the
Jangkrik gas field in Indonesia.
Recent business highlights
Specialty Chemicals
Ningbo investment passes
€400million
Organic growth
We broke ground on a
new alkoxylation facility at
our Ningbo multi-site, strengthening
our position as one of the leading
surfactant producers in China.
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Our Human Cities initiative
• By 2050, more than 75 percent of the world’s
population will live in cities. 60 percent of our
products are in the Buildings & Infrastructure
and Transportation
• In 2014, we launched our Human Cities
initiative, which is designed to engage with the
challenges and opportunities of the 21st
century city via color, heritage, transport,
education, sport & leisure, and sustainability
• We made a commitment to the Clinton Global
Initiative by establishing a partnership with The
Rockefeller Foundation through its 100
Resilient Cities program
AkzoNobel Human Cities – Heritage – Malacca
AkzoNobel in Asia | Singapore June 2015 14
15 AkzoNobel in Asia | Singapore June 2015
Decorative Paints – plans for profitable growth in Asia Jeremy Rowe
0
10
20
30
40
50
60
2008 2013 2018
EMEA North America Latin America Asia Pacific
16 AkzoNobel in Asia | Singapore June 2015
• Used for protection
as well as decoration
• Consumption per capita
driven primarily by the
frequency of repainting
• Demand growth
closely correlated
with GDP growth,
consumer expectations
• In high-growth markets,
tends to outstrip GDP growth
by up to 1.5x
• Urbanisation, housing
development and infrastructure
development all contribute to
growth
Decorative Paints sales*
€ billion
The Decorative Paints market is attractive in terms of size and growth
Source: Orr & Boss
* At YTD December 2013 constant currency exchange rate, EUR 1 = USD 1.32779
17 AkzoNobel in Asia | Singapore June 2015
0%
25%
50%
75%
100%
2010 2015
Economy Mid-market Premium
Paint market composition
% of total, by value
High growth markets are increasingly ‘trading up’
Source: Orr & Boss, AkzoNobel estimates
• Paint markets in high-growth markets are still showing significant opportunities for growth
• Spending power of the middle class in high-growth markets is increasing
• Premium market will still grow, but the mid-market is expected to grow fastest
• Trading up from the economy tier means that this is likely to shrink, along with the unorganised sector
We have strong positions in the main Decorative Paints markets
18 AkzoNobel in Asia | Singapore June 2015
• Strong positions in China, Indonesia, Vietnam and a number of
smaller countries. Strong position in premium in India
• Strong recent organic growth trajectory, based on brand
investment, painter connect and distribution expansion
• Strong financial performance
• Strong brand presence, image and reputation
Source: Orr & Boss, AkzoNobel estimates
* At YTD December 2014 exchange rate, EUR 1 = USD 1.32779
€ billion 2014
Market size where AkzoNobel is represented 12.8
AkzoNobel revenue 1.1
Employees 4,700
Controlled, franchised or owned stores ~4,000
Asia Key messages
20%
80%
Professional (Projects)
Retail (SSO and LSO)53%
26%
21% China andNorth Asia
Southeast Asiaand Pacific
India andSouth Asia
18
Revenue by region
19 AkzoNobel in Asia | Singapore June 2015
Our strategy to grow profitably in Asia
Objectives:
• Outgrow the market
• Ensure that we leverage our (global) scale to ensure
that we improve relative profitability while we grow
Actions:
• Develop profitable mid-market business model(s)
• Build and implement a robust distribution strategy framework
• Leverage global marketing and innovation scale to win locally
• Leverage our strong brands
• Create and implement a digital marketing strategy
20 AkzoNobel in Asia | Singapore June 2015
China
AkzoNobel position
Extensive geographic coverage across all regions
Key actions
• Drive further expansion outside the eastern region
with investments in manufacturing footprint:
– New plant opened in Guangzhou (2013)
– Plant under construction in Chengdu (West)
• Drive growth in project channel
• Continue to develop emerging channels such
as e-commerce and Easy Paint Services channels
• Continuously optimize our product range
– Launch of Dulux Ambiance in premium segment
21 AkzoNobel in Asia | Singapore June 2015
AkzoNobel position
The leading paints company in the Indonesian market with
a strong market share
Key actions
• Continue to build our premium portfolio through strong brands
including Dulux Weathershield and Dulux EasyClean
• Extend the reach of our Dulux brand and bring it to the
mid-market segment through the launch of Dulux Catylac
• Leverage new forms of communication and activation such as
Let’s Color TV Show and YouTube as well as digital activation
• Leverage our new, nationwide distribution model
• Win a higher share in Professional (Projects) segment with a
focused and differentiated model
• Major manufacturing plant upgrade completed in 2011
Indonesia
Confidential: Not to be shared
Dulux EasyClean
22 22 AkzoNobel in Asia | Singapore June 2015
23 AkzoNobel in Asia | Singapore June 2015
Vietnam – recent Projects win
• One of Vietnam’s largest
urban development
projects
• Mixed-use project spread
over 128 ha, to be
completed in 3 phases
over 8 years
• Ho Chi Minh City’s new
financial district plus
apartment blocks,
shopping malls, villas,
retail blocks and an
education campus
• Won bid for the first
phase
• Dulux Weathershield
Powerflexx for exteriors
and Dulux Inspire for
interiors
24 AkzoNobel in Asia | Singapore June 2015
India
AkzoNobel position
• Strong position in premium segment
Key actions
• Continue to build our premium portfolio through strong brands
including Dulux Weathershield and Dulux Velvet Touch
• Grow the mid-market segment
• Build on strength of equity among larger painters and create a
digital platform to engage with them
• Further develop Professional (Projects) segment with a focused
and differentiated model
• New manufacturing plant in Gwalior completed in 2014
Customer Benefits
• Enables users to see in real-
time what a room would look
like in a wide range of colors
– without the use of paint
• Easy to use and
visualizations can be saved
Key Features
• A world first consumer
application of augmented reality
technology for visualizing
decorated backgrounds
• Developed in collaboration with
String, Tessella and Webcredible
• Winner of 2014 UK Innovative
Mobile App of the Year Award
• Compatible with iOS and
Android devices
Growth Potential
• Downloaded more than 2.7 million
times in 125+ countries since its
launch Q2 2014
• Launched globally, including all
major markets in Asia, outpacing all
competition
Visualizer App – global innovation delivered locally
AkzoNobel in Asia | Singapore June 2015 25
Summary
26 AkzoNobel in Asia | Singapore June 2015
• Decorative Paints market in Asia is attractive in terms of size and growth
• Asia will continue to grow well and is ‘trading up’
• Strong positions in the main, growing, Decorative Paints markets of Asia
• Capability to invest globally and deliver locally, with regional offices in Singapore and
Shanghai to leverage campaigns, know-how and best practices across the countries
• Country specific plans for profitable organic growth
• Significant investment to support growth, in particular manufacturing footprint expansion
and optimization
27
Performance Coatings – leading through sustainable innovation Thijs Bakker
AkzoNobel in Asia | Singapore June 2015
28
Our performance coatings business is balanced across four end-user segments
Buildings and
Infrastructure
Consumer
Goods Industrial
Transportation
21%
28% 14%
37%
AkzoNobel in Asia | Singapore June 2015
29 AkzoNobel in Asia | Singapore June 2015
Outgrow the market organically
• Marine
• Protective
• Powder
• Specialty Finishes
Improve performance by
driving operational excellence
• Industrial (Wood, Coil, Packaging)
• Vehicle Refinishes
• Yacht
• Aerospace
Expected outcomes
• Improved market share
• Costs don’t grow as fast as revenue
• Improved return on sales
in percentage terms
Expected outcomes
• Growth with the market
• Reduced absolute operating expenditure
• Improved return on sales based on
cost reduction
Differentiated growth strategies exist for each market segment
• New organization structure with fewer management layers and clearer accountability
• Strategic Market Units more customer focused, agile and lean
• Lowering Selling, General & Administrative costs
• Manufacturing footprint optimization continues worldwide
30 AkzoNobel in Asia | Singapore June 2015
Recent transformation makes us fit for growth
12 sub Business Units
Performance Coatings
4 Business Units
Performance Coatings
7 Strategic Market Units
8 sites closed in 2014 and 9 intended site closures for 2015
We have a significant local footprint and continue to invest in Asia
31
Marine Headquarters and Technology Center
• Based in Singapore since 2012
New polymer plant in Songjiang
• Investment of €14 million in epoxy and polyester resins
New R,D&I Centre in Songjiang
• Base to more than 200 scientists and second largest
research lab for Performance Coatings globally
New coatings production in Changzhou
• €75 million unit adds capacity for vehicle refinishes
New manufacturing facility in Chonburi, Thailand
• €30 million unit to produce Metal Coatings, Protective
Coatings, Specialty Coatings, Marine Coatings and
selected Decorative Paints
AkzoNobel in Asia | Singapore June 2015
32
Key features:
• Intersleek foul release marine coatings reduce fuel
consumption and emissions by an average of 9%
• Shipping industry’s first methodology for generating
carbon credits
Customer benefits:
• Lower fuel consumption generates fuel saving
• Customers switching from biocidal to Intersleek
technology can generate carbon credits
• Customers incentivized to use premium hull coatings;
win/ win scenario
Award-winning technology:
• Queen’s Award for Enterprise; Innovation 2007
(Intersleek 700)
• 2013 RINA QinetiQ Maritime Innovation Award
(Intersleek 1100SR)
• 2014 Seatrade Clean Shipping Award (Intersleek
1100SR)
Intersleek helps marine customers to save fuel and reduce emissions
AkzoNobel in Asia | Singapore June 2015
We are a key player in both premium and mid-market Vehicle Refinishes for Asia
33 AkzoNobel in Asia | Singapore June 2015 Souirce: IHS
2014 2015 2016 2017 2018 2019
North America 2.2% p.a.
Europe 2.1% p.a.
China 5.3% p.a.
Passenger cars and light vehicles (units)
2014 2015 2016 2017 2018 2019
Europe 0.9% p.a.
North America 1.3% p.a.
Brazil, Russia, India, China 9.2% p.a.
Lig
ht
vehic
le p
roduction
Vehic
le c
ar
park
Summary
34 AkzoNobel in Asia | Singapore June 2015
• World-leading position in performance coatings technology and innovation
• Global reputation for quality and reliability
• Supply market-leading brands to many of the world’s leading companies
• Flatter organization makes us more customer focused, agile and lean
• Investing around the world to enhance our supply and innovation capabilities
• In-depth knowledge and wide-ranging expertise
• Leading through sustainable innovation
35 AkzoNobel in Asia | Singapore June 2015
Specialty Chemicals Maëlys Castella
36 AkzoNobel in Asia | Singapore June 2015
• $3.5 trillion market
• Solution provider for society
– manufacturing
– food production
– climate change
• Continuous growth
• Strong growth in Asia
1990 2000 2012 2020
Other
China
Asia Pacific
North America
Western Europe
0.9
1.3
3.4
6.3
Chemicals industry over time, by geography
$ trillion
The chemical industry is large and growing, especially in Asia
Source: McKinsey
6.6%
%
6.8%
%
7.4%
% CAGR (nominal)
Specialty Chemicals is well positioned to capitalize on our current position
37
Key messages
• Serve international and local customers
• Leading positions in five main platforms
• 18% of revenues generated in Asia
• Significant expansion investments in China now operational
• Local presence in Asia, including manufacturing footprint in China, India, Japan, and Singapore
and Ethylene and Sulfur Derivatives head office in Shanghai
• Driving functional excellence and operational leverage
Revenue by end user segment
Revenue by geographic spread
18%
6%
19%57%
Buildings and
infrastructure
Transportation
Consumer
goods
Industrial
43%
22%
18%
10%
5%2%
Mature Europe
North America
Asia Pacific
Latin America
Emerging Europe
Other regions
AkzoNobel in Asia | Singapore June 2015
Major projects and timing of spend
38 AkzoNobel in Asia | Singapore June 2015
Increased footprint
• Ningbo was our largest ever one-site investment,
inaugurated in November 2010
• Operational infrastructure in place and ready to
supply additional demand
• Ethylene and Sulfur Derivatives head office now
located in Shanghai
• We continue to invest and leverage scale
Opportunities exist for operational leverage
• Organic growth from strong customer base
• Process innovation
• Easy debottlenecking
• Better yields (lower waste and variable costs)
Recent investments provide a foundation for future growth
38
Investment project 2010 11 12 13 14 15
Ningbo Infrastructure
Ningbo Ethylene Amines
Ningbo Chelates
Ningbo Cellulosics
Ningbo Organic Peroxides1
Boxing Surfactants Acq’n
Boxing & Ningbo Surfactants
Ningbo Organic Peroxides2
Taixing MCA
Guangzhou Colloidal Silica
39 AkzoNobel in Asia | Singapore June 2015
Summary Maëlys Castella
AkzoNobel is well positioned for continued growth in Asia
40 AkzoNobel in Asia | Singapore June 2015
• Established and profitable business
• Broad range of activities in the region
• Addressing a wide variety of end user segments
• Strong brands and leading market positions
• Several business headquartered in Singapore and Shanghai
• Benefit from global/ regional scale and efficiencies
• Significant recent investment
• Continued innovation
Questions
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Safe Harbor Statement
AkzoNobel in Asia | Singapore June 2015
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.
42
43 AkzoNobel in Asia | Singapore June 2015
Appendix
AkzoNobel today
44
• Revenue €14.3 billion
• 47,200 employees
• 44% of revenue from high growth markets
• Major producer of Paints, Coatings and
Specialty Chemicals
• Leadership positions in many markets
25%
29%
35%
11% PerformanceCoatings
DecorativePaints
SpecialtyChemicals
Other
42%
19%
39% 39%
27%
34%
Revenue by
Business Area
Operating income
by Business Area
Invested capital by
Business Area
6.9%
Return on sales
(operating income/revenue)
10.0%
Return on investment
(Operating income/average
12 months invested capital)
AkzoNobel in Asia | Singapore June 2015
45 AkzoNobel in Asia | Singapore June 2015
~42% of revenues
New Build Projects
Maintenance, Renovation & Repair
Building Products & Components
~16% of revenues
Automotive OEM, Parts and Assembly
Automotive Repair
Marine and Air Transport
~17% of revenues
Consumer Durables
Consumer Packaged Goods
~25% of revenues
Natural Resource and Energy Industries
Process Industries
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AkzoNobel in Asia | Singapore June 2015
Strategy on a page
Strategic focus areas
• Care for the customer
• Reduction of product
and process complexity
• Cash and return on
investment
• Embedded safety
and sustainability
• Diverse and inclusive
talent development
Processes
• People, process and
product safety
• Operational
control cycle
• Continuous
improvement
• Innovation
• Procurement
• Talent management
Actions
• Deliver dependably
• Grow organically
• Innovate
• Simplify
• Standardize
• Continuously
improve
End-user segments
• Buildings and
Infrastructure
• Transportation
• Consumer Goods
• Industrial
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AkzoNobel values drive cultural change
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48 AkzoNobel in Asia | Singapore June 2015
Sustainability is business; business is sustainability
(Resource Efficiency Index)
A new indicator measuring how efficiently we generate value
(expressed as gross profit divided by cradle-to-grave carbon footprint)
of revenue by 2020 from products that are more sustainable for
our customers than the products of our competitors
more efficient resource and energy use across the entire value chain
by 2020 (measured by carbon footprint reduction)
AkzoNobel ranked #1 again in the Dow Jones Sustainability Index for the Materials Industry group
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49 AkzoNobel in Asia | Singapore June 2015
A new report developed by the
Economist Intelligence Unit and AkzoNobel
is now available which explores how cities
create optimal environments for citizens.
Called Tomorrow’s cities, we worked
together to collect opinions from leading
city experts and executives, who share their
views on a number or important themes
and topics.
To download the report visit:
www.akzonobel.com/humancities
Human Cities in action
46%
28%
14%
8% 4%
Mature Europe
Asia Pacific
Latin America
Emerging Europe
Other regions
Decorative Paints at a glance
50
Revenue by geographic spread
• We are the global leader in size in the attractive global
Decorative Paints market
• We are pursuing a vision of becoming the leading
global Decorative Paints company in size and performance
• Strategic priorities:
– Fix Europe
– Grow profitably in high-growth markets
€ million 2014
Revenue 3,909
EBITDA 405
Operating income 248
Return on sales 6.3%
Return on investment 8.8%
Employees 15,200
Revenue by end-user
sub-segment
Decorative Paints key figures Key messages
75%
25% Maintenance,renovation and repair
New build projects
AkzoNobel in Asia | Singapore June 2015
51 AkzoNobel in Asia | Singapore June 2015
Our manufacturing footprint is changing to address our market environment
Existing Plants
Plants under construction
Megaplants
52 AkzoNobel in Asia | Singapore June 2015
New greenfield Paints Manufacturing Plant in
China west region – Chengdu City
Total investment €44 million from 2014
Focus on water-based paints with 2
construction phases:
Phase 1.1 - 50ML capacity by 2016
Phase 1.2 - total 100ML capacity in 2019
Proven paint making technology including
Advanced Manufacturing System and
high speed filling
Project permits and engineering design
completed, construction on schedule
Capital expenditure supports growth and manufacturing footprint optimization
53
Decorative Paints vision and targets
Decorative Paints vision
The leading global Decorative Paints company in size and performance
Expected outcomes (2015):
• Return on sales: 7.5%
• Return on investment: 12%
AkzoNobel in Asia | Singapore June 2015
Actions Per the company agenda
Business area actions
• Fix Europe
• Grow profitably in high-growth
markets
• Leverage investments in
marketing, sales, innovation
• Improve supply chain
performance
• Generate more value with fewer
resources
Processes Per the company agenda
Business area capabilities
• Branding
• Distributor, wholesaler, retail
management
• Understanding and serving
professional painters
• Consumer inspiration
• Quality management
Strategic
focus areas Per the company
agenda
End-user
segments • Buildings and
Infrastructure
• Transportation
• Consumer Goods
• Industrial
54
Decorative Paints strategy on a page
AkzoNobel in Asia | Singapore June 2015
27%
20% 31%
8%
11% 3% Mature Europe
North America
Asia Pacific
Latin America
Emerging Europe
Other regions
21%
37%
28%
14% Buildings andInfrastructure
Transportation
ConsumerGoods
Industrial
Performance Coatings at a glance
Key messages
• We have leading market positions
• Strategic priorities include:
– Performance improvement initiatives
– Differentiated growth strategies
Performance Coatings key figures
Revenue by end-user segment
Revenue by geographic spread
€ million 2014
Revenue 5,589
EBITDA 687
Operating income 545
Return on sales 9.8%
Return on investment 22.0%
Employees 20,500
55 AkzoNobel in Asia | Singapore June 2015
25%
26%
49%
Marine & ProtectiveCoatings
Automotive & SpecialtyCoatings
Industrial & PowderCoatings
2014 revenue by Reporting Unit
We cover a uniquely broad set of markets with leading global brands
Marine & Protective
Coatings
• Protective
• Marine
• Yacht
Automotive &
Aerospace Coatings
• Vehicle Refinishes
• Specialty Finishes
• Aerospace
Industrial Coatings • Wood
• Coil
• Packaging
Powder Coatings • Powder
Business Unit Market sectors
56
• Vehicle Refinishes
• Specialty Finishes
• Aerospace
• Yacht
Automotive &
Specialty Coatings
• Protective
• Marine
Marine &
Protective Coatings
• Wood
• Coil
• Packaging
• Powder
Industrial & Powder
Coatings
AkzoNobel in Asia | Singapore June 2015
We are well positioned globally in terms of revenue and manufacturing locations
BU manufacturing locations
Automotive & Aerospace
Marine & Protective
Industrial
Powder
Multi-BU site
57
% of 2014 revenue
27%
Mature Europe
31%
Asia Pacific
3%
Middle East
and Africa 8%
Latin America
20%
North America
11%
Emerging Europe
AkzoNobel in Asia | Singapore June 2015
Performance Coatings vision and targets
58
Performance Coatings vision:
The leading coatings
company from a
performance
perspective
Expected outcomes 2015:
• Return on sales: 12%
• Return on investment: 25%
AkzoNobel in Asia | Singapore June 2015 58
End-user
segments • Buildings and
Infrastructure
• Transportation
• Consumer Goods
• Industrial
Actions Per the company agenda
Business area actions
• Drive overarching performance
improvement initiatives
• Pursue differentiated growth
strategies
– Outgrow the market organically
– Improve performance by
driving operational excellence
Processes Per the company agenda
Business area capabilities
• Key account management
• Coatings technology and product
innovation
• Footprint in growth markets
Strategic
focus areas Per the company
agenda
59
Performance Coatings strategy on a page
AkzoNobel in Asia | Singapore June 2015 59
Specialty Chemicals at a glance
60
Key messages
• Serving attractive markets, growing over the cycle
• Leading positions in five main platforms
• 57% of revenues generated outside of mature Europe
• Significant expansion investments now operational
• Driving functional excellence
Specialty Chemicals key figures
Revenue by end user segment
Revenue by geographic spread
18%
6%
19%57%
Buildings and
infrastructure
Transportation
Consumer
goods
Industrial
43%
22%
18%
10%
5%2%
Mature Europe
North America
Asia Pacific
Latin America
Emerging Europe
Other regions
€ million 2014
Revenue 4,883
EBITDA 815
Operating income 508
Return on sales 10.4%
Return on investment 14.8%
Employees 9,800
AkzoNobel in Asia | Singapore June 2015
Salt-chlorine chain
100% of Industrial Chemicals
Ethylene Oxide Network
40% of Functional Chemicals
Surfactants
85% of Surface Chemistry
Bleaching Chemicals
60% of Pulp & Performance chemicals
61 AkzoNobel in Asia | Singapore June 2015
Our Business Units Our Platforms
Five well positioned platforms in their industries
Industrial Chemicals
Pulp & Performance chemicals
Surface Chemistry
Polymer catalysts
40% of Functional Chemicals
Functional Chemicals
Our platforms build on value chains
Raw materials
Base chemicals
Chemical inter-mediates
Performance/ functional chemicals
‘End’ products
62
Bleaching chemicals
Salt-chlorine chain
Ethylene oxide network
Polymer catalysts
Surfactants
AkzoNobel in Asia | Singapore June 2015
Global manufacturing network serves both regional and global customers
Asia Pacific
18%
Latin America
10%
Emerging Europe
5%
North America
22%
Mature Europe
43%
Middle East and
Africa
2%
Multi-site
Site
% of 2014 revenue
AkzoNobel in Asia | Singapore June 2015 63
Specialty Chemicals vision:
Delivering leading
performance based on
sustainable chemical
platforms driving
profitable growth in
selected markets
Expected outcomes (2015):
• Return on sales: 12%
• Return on investment: 15%
Specialty Chemicals vision and targets
64 AkzoNobel in Asia | Singapore June 2015
Actions
Per the company agenda
Business area actions
• Drive functional excellence
– Supply chain and operations
– Commercial excellence
– Talent management
• Reduce organizational complexity
• Strengthen product & process
innovation
• Capitalize on industry changes
• Build on our strong chemical
platforms to deliver profitable
growth in selected markets
Processes
Per the company agenda
Business area capabilities
• Understanding customer needs
• Management of integrated value
chains
• Continuous technological
advancement
• Engineering and project
management
Strategic
focus areas Per the company
agenda
End-user
segments • Buildings and
Infrastructure
• Transportation
• Consumer Goods
• Industrial
65
Specialty Chemicals strategy on a page
AkzoNobel in Asia | Singapore June 2015
Improve performance by driving
operational excellence
~50% of portfolio
Main platforms
• Salt-chlorine chain
• Polymer catalysts
• Ethylene oxide network
66 AkzoNobel in Asia | Singapore June 2015
Outgrow the market organically
~ 50% of portfolio
Main platforms
• Bleaching chemicals
• Surfactants
Actions
• Reduce costs and further
improve productivity in
operations
• Improve raw material
(cost) position
Differentiated strategies per platform
Actions
• Capitalize on investments
• Grow by successfully
commercializing products
for attractive applications
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