Akzo Nobel N.V. · EURONEXT:AKZA
Akzo Nobel — Oddo BHF Environment Forum 2017
37 slides from Akzo Nobel's conference presentation, Jun 8, 2017
Slide 1: Sustainability overview
Sustainability overview Oddo BHF – Environment Forum Paris June 8, 2017
Slide 2: Step change in growth and long-term value creation
Step change in growth and long-term value creation Sustainability overview June 2017 2
Slide 3: Step change in growth and long-term value creation
Step change in growth and long-term value creation Accelerating growth momentum and enhanced profitability Creating two focused businesses as a logical next step Clear separation within 12 months Increasing returns to shareholders Committed to investing in sustainability, innovation and society Best
Slide 4: Accelerating growth momentum and enhanced profitability
Accelerating growth momentum and enhanced profitability Paints and Coatings Specialty Chemicals 2016-2018 2016-2018 guidance* 2020 guidance* guidance* 2020 guidance* ROS 10-12% ROS 15% ROS 11.5-13% ROS 16% ROI >18% ROI >25% ROI >16% ROI >20% Clear aim to grow faster than relevant markets 2020 guidan
Slide 5: Strong culture to support a step change in growth and value creation
Strong culture to support a step change in growth and value creation Top quartile safety performance Our Code of Conduct: Engagement increasing for six years running Sustainability overview June 2017 5
Slide 6: Ongoing commitment to invest in sustainability, innovation and society
Ongoing commitment to invest in sustainability, innovation and society 10% 100% renewable 10% fuel saving and carbon energy and energy saving carbon through heat credits for ship reflection owners neutral by Weathershield Intersleek 2050 50% Consortium of products leader provide for purchase sustain
Slide 7: Ongoing commitment to invest in sustainability, innovation and society
Ongoing commitment to invest in sustainability, innovation and society 99 300+ “Let’s Colour” Human Cities €1bn projects, impacting 3.8m projects lives innovation investment until 2020 3,600+ 4,000 volunteers scientists took part in 130 labs Community Program 10,000+ projects patents Key for long-te
Slide 8: Sustainability embedded in everything we do
Sustainability embedded in everything we do and an integral part of the way we do business Sustainability overview June 2017 8
Slide 9: Eco-premium solutions: Invest to lead in the market
Eco-premium solutions: Invest to lead in the market Assessed along the full value chain against the following criteria: – Energy efficiency (consumption) – Use of natural resources/raw materials – Emissions and waste – Toxicity – Risks (for accidents during production, transportation etc.) – Land us
Slide 10: Aquasilk water-based coating system for furniture makers in China
Furniture makers in China can now switch to using more eco-friendly coatings after AkzoNobel developed a new water-based system. Aquasilk – an innovative anti-scuff coating with superior hardness and excellent clarity – contains substantially lower levels of volatile organic compounds (VOCs) than th
Slide 11: Berol DR-B1 cleaning ingredient
Berol DR-B1 – an essential ingredient for cleaning which meets stringent US EPA standards. Degreasers prepared with Berol DR-B1 exhibit quick break behavior, meaning that the oil removed during washing separates rapidly from the used cleaning solution and can be removed, allowing the remaining water
Slide 12: Dissolvine M-40 chelating agent
Dissolvine M-40 is a chelating agent with a readily biodegradable active ingredient (known as MGDA) which is more sustainable than some current alternatives. It will enable the detergent industry to meet stringent rules requiring the removal of phosphate builders in their formulations, without compr
Slide 13: Resource Efficiency Index: key financial long-term indicator
Resource Efficiency Index: key financial long-term indicator The Resource Efficiency Index is defined as gross margin divided by cradle-to-grave carbon footprint – reported as an index. – Gross margin: we selected gross margin as an indicator of added value – it is comparatively stable and captures
Slide 14: Progress made towards the 2020 targets and ambitions
Progress made towards the 2020 targets and ambitions Eco-premium solutions Cradle-to-grave REI with downstream benefits Resource Efficiency Index in % of revenue carbon footprint Gross margin/CO2(e) indexed % reduction CO2(e) per ton of sales from 2012 Sustainability overview June 2017 14
Slide 15: Collaboration with suppliers and customers crucial to reach 2020 ambition
Collaboration with suppliers and customers crucial to reach 2020 ambition Own operations carbon footprint Up and downstream carbon footprint Including VOC emissions ww Sustainability overview June 2017 15
Slide 16: Strategic sustainability partnership with Maersk Line
AkzoNobel and leading global container shipping company Maersk Line signed a strategic sustainability partnership to reduce carbon emissions per container shipped by 10%.
Slide 17: Renewable electricity contract with Vattenfall
Contract with energy company Vattenfall will ramp up the supply of renewable electricity to facilities in Sweden and Finland. AkzoNobel currently has a global renewable energy share of 40%; this contract takes the share in the Nordic region to 60%.
Slide 18: Dutch government agreement on sustainability targets
The Dutch government has signed an agreement with AkzoNobel recognizing the company’s latest contribution to meeting national sustainability targets resulting from investments at its chemicals complex in Rotterdam.
Slide 19: Joint development agreement with Itaconix
AkzoNobel has signed a framework joint development agreement with specialty chemicals company Itaconix to explore opportunities for the production of bio-based polymers.
Slide 20: Progress on all key safety elements
Progress on all key safety elements People Product A common approach to behavior-based safety Between 2012 and 2015 completed the review and implemented at all sites. A self-assessment tool developed management of 204 priority substances and piloted during 2016. Systematically applied, starting with
Slide 21: Making cities more human
We are committed to bringing people, government, NGOs and businesses together to create opportunities for making cities more human.
Slide 22: Human Cities projects
Unveiling of great tribute to AkzoNobel to restore five Color and community spirit Johan Cruyff at historic artworks in Brazil ahead of transforms Buenos Aires slum location in Amsterdam 2017 architecture award
Slide 23: Building an engaged workforce
Building an engaged workforce Our people are critical to the success of our ViewPoint score employee engagement company (1 to 5 scale) Being able to give and receive feedback is vital to creating an engaging work environment. We therefore invite all our employees to participate in our annual engagem
Slide 24: Leadership changes providing clear direction and driving culture change
Leadership changes providing clear direction and driving culture change Diversity is an important factor Female executives (%) Want our people to truly reflect and represent the many and varied cultures of the markets we serve and the different locations where we do business Inclusive and diverse te
Slide 25: Aspire to the highest standards of corporate governance
Aspire to the highest standards of corporate governance Governance structure Supervisory Board supervises and advises the Board of Management and supervises the general conduct of business of AkzoNobel Shareholders Committed to the company’s long-term value creation Supervisory Board Regularly revie
Slide 26: Supervisory Board members have diverse and appropriate experience
Supervisory Board members have diverse and appropriate experience Supervisory Board Antony Burgmans Sari Baldauf Peggy Bruzelius Byron E. Grote A = Audit Committee Member, (1947, Dutch) (1955, Finnish) (1949, Swedish) (1948, American N = Nomination Committee Member, Chairman Appointed: 2012 Appointe
Slide 27: Recognition by external parties
Recognition by external parties 91% ISS corporate in RobecoSam Included in Leading governance in Sustainalytics score of (Dow Jones Sustainability Index) A-list with score of Top 10% ranking for 11 years of CDP with score 100/B 98% 2* *1 is highest, 10 is lowest
Slide 28: Appendix
Appendix Sustainability overview June 2017 28
Slide 29: Presence in a wide variety of markets provides a range of unique opportunities
Presence in a wide variety of markets provides a range of unique opportunities DEMOGRAPHIC CLIMATE INTERNET URBANIZATION GLOBALIZATION SHIFTS CHANGE PROLIFERATION Environmental Internet and Consumer issues and priorities Internet of Things consciousness Buildings and Infrastructure: Transportation:
Slide 30: Step change in growth and long-term value creation
Step change in growth and long-term value creation Strategy: Create two focused businesses Paints and Coatings Separation within 12 months Dual-track process with project teams in place 2020 2017 Focused Paints and Coatings strategy guidance guidance1 EBIT ROS 15% Accelerating sustainable growth and
Slide 31: Creation of two focused businesses is the logical next step
Creation of two focused businesses is the logical next step 2017 onwards: Unlocking further value and accelerating growth 2016: Continuous Two focused improvement businesses and growth High-performing 2013-2015: Building the Scale and foundation capabilities to stand on Pre-2012: their own Historica
Slide 32: The new world of Paints and Coatings
The new world of Paints and Coatings €9.5bn revenue €1.4bn EBITDA North America Mature Europe Emerging Europe Asia Pacific 13% 33% 8% 33% €1.1bn EBIT 11.7% ROS 20.8% ROI 34,400 people Revenue by end-user segment 9% Buildings and Infrastructure 13% Transportation Consumer Goods Industrial 55% 23% Lat
Slide 33: Well positioned to accelerate growth and enhance profitability
Well positioned to accelerate growth and enhance profitability Return on sales* Return on investment* % % >25 15 14 20,8 11,7 15.0 8,4 6,6 9.0 2012 2014 2016 2020 2012 2014 2016 2020 guidance** guidance** *ROS% = EBIT/revenue and moving average ROI (in %) = 12 months EBIT/12 months average invested
Slide 34: World class Specialty Chemicals business
World class Specialty Chemicals business €4.8bn revenue North America Mature Europe Emerging Europe Asia Pacific €953m EBITDA 24% 43% 4% 17% €629m EBIT 13.2% ROS 17.9% ROI 9,000 people Balanced portfolio of interlinked businesses High profitability in all businesses Proven resilience of portfolio th
Slide 35: Well positioned to significantly improve performance: increased guidance
Well positioned to significantly improve performance: increased guidance Return on sales* Return on investment* % % 16 >20 14 20 13,2 17,9 10,4 14,2 14,8 9,5 2012 2014 2016 2020 2012 2014 2016 2020 guidance** guidance** *ROS% = EBIT/revenue and moving average ROI (in %) = 12 months EBIT/12 months av
Slide 36: Leading markets positions delivering leading performance
Leading markets positions delivering leading performance Build world class brands and color expertise #1 choice for Drive digital Lead the way in and innovation customers sustainability Live our values, principles, and Continue to develop our improve and people excel Sustainability overview June 201
Slide 37: Disclaimer/ forward-looking statements
Disclaimer/ forward-looking statements This presentation does not constitute or form a part of any offer, or any invitation or other solicitation of any offer, to buy or subscribe for any securities in AkzoNobel N.V. in the United States or any other jurisdiction. Some statements in this presentatio