Hans Wijers, CEOFebruary 17, 2011Press conference Q4 and FY 2010 results
Agenda•   AkzoNobel at a glance•   Full Year & Q4 2010 Value highlights•   2010 Values highlights•   Outlook 2011 and medi...
AkzoNobel key facts2010• Revenue €14.6 billion• Around 40 percent of revenue in high-growth markets• Over 55,000 employees...
Excellent geographic spread ofboth revenue and profits       High-growth markets are important (39% of revenue)% of 2010 r...
High-growth markets will becomesignificantly more important% of revenue, indicative                                       ...
Our medium term strategic goals                            •   Top quartile safety                                performa...
Full year & Q4 2010 Value highlightsAccelerated growth                         Press conference FY and Q4 2010 results   7
Full year 2010 revenue and EBITDA€ million                                                     2010                   Δ%Re...
Full year 2010 highlights•      Revenue growth at 12 percent in line with medium-term       ambitions•      EBITDA* 16 per...
Further volume recovery underpinsearnings potentialEBITDA* bridge 2008-2010€ billion   2,0                                ...
Strong balance sheet enables futuregrowth potential € million                                                        Dec 3...
Q4 2010 revenue and EBITDA€ million                                               Q4 2010                      Δ%Revenue  ...
Decorative Paints • Expand distribution in China through ‘controlled stores’ • Continue to build our Dulux brand          ...
Decorative Paints full year 2010€ million                                                2010                   Δ%Revenue ...
Performance Coatings•   New tactile packaging developed by AkzoNobel•   Appearing in stores across Europe•   Texture gives...
Performance Coatings full year 2010€ million                                                2010                   Δ%Reven...
Specialty Chemicals•   Sustainable Chemical Island concept in Brazil•   To supply the world’s largest pulp mill•   All lat...
Specialty Chemicals full year 2010€ million                                                   2010                   Δ%Rev...
Values highlights – sustainable andinnovative growth                         Press conference FY and Q4 2010 results   19
2010 values results – working towards ourmedium-term ambitions     Eco-premium solutions                 Carbon emission  ...
Pipeline 2011Decorative Paints - Dulux Weathershield (SunReflect™ & Keep Cool™)Solar reflectance feature         Customer ...
Pipeline 2011Performance Coatings - Sikkens Autosurfacer UVKey application features         Benefits for body-shop owners•...
Pipeline 2011Specialty Chemicals - High Filler ConceptReplaces tree fiber with non-           Growth potentialwood filler ...
Outlook 2011               Press conference FY and Q4 2010 results   24
Outlook: we expect to make progress onour medium-term strategic ambitions                                       •    Top q...
Q&A      Press conference FY and Q4 2010 results   26
Safe Harbor StatementThis presentation contains statements which address such key issues asAkzoNobel’s growth strategy, fu...
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Q4 and Full Year 2010 Media Presentation

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Q4 and Full Year 2010 Media Presentation

  1. 1. Hans Wijers, CEOFebruary 17, 2011Press conference Q4 and FY 2010 results
  2. 2. Agenda• AkzoNobel at a glance• Full Year & Q4 2010 Value highlights• 2010 Values highlights• Outlook 2011 and medium-term ambitions Press conference FY and Q4 2010 results 2
  3. 3. AkzoNobel key facts2010• Revenue €14.6 billion• Around 40 percent of revenue in high-growth markets• Over 55,000 employees• EBITDA: €2.0 billion*• Net income: €0.8 billion• A leader in sustainabilityRevenue by business area EBITDA* by business area 33% 33% 30% 44% Performance Coatings 26% Decorative Paints 34% Specialty Chemicals* Before incidentals Press conference FY and Q4 2010 results 3
  4. 4. Excellent geographic spread ofboth revenue and profits High-growth markets are important (39% of revenue)% of 2010 revenue 39% ‘Mature’ Europe 6% 20% ‘Emerging’ Europe North America 4% 21% ME&A Asia Pacific 10% Latin America High-growth markets profitability is above average Press conference FY and Q4 2010 results 4
  5. 5. High-growth markets will becomesignificantly more important% of revenue, indicative 32% ‘Mature’ Europe 9% 18% ‘Emerging’ Europe North America 25% 5% Asia Pacific ME&A 11% Latin America High-growth markets will be around 50% of revenue in this decade Press conference FY and Q4 2010 results 5
  6. 6. Our medium term strategic goals • Top quartile safety performance • Top position in sustainability • Top quartile performance in diversity, employee engagement, and talent development • Top quartile eco-efficiency improvement rate • 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 Press conference Q4 & FY 2010 6
  7. 7. Full year & Q4 2010 Value highlightsAccelerated growth Press conference FY and Q4 2010 results 7
  8. 8. Full year 2010 revenue and EBITDA€ million 2010 Δ%Revenue 14,640 12EBITDA* 1,964 16Ratio, % 2010 2009EBITDA* margin 13.4 13.0Revenue development 2010 vs. 20091510 +6% +12% 5 0% 0% +6% 0 Volume Price Acquisitions/ Exchange Total divestments rates * Before incidentals Increase Decrease Press conference FY and Q4 2010 results 8
  9. 9. Full year 2010 highlights• Revenue growth at 12 percent in line with medium-term ambitions• EBITDA* 16 percent higher• Operating return on invested capital: 27.7 percent (2009: 23.2 percent)• Net income: €754 million (2009: €285 million)• Adjusted earnings per share: €3.71 (2009: €2.06)• Total dividend proposed for 2010: €1.40 (2009: €1.35) * Before incidentals Press conference FY and Q4 2010 results 9
  10. 10. Further volume recovery underpinsearnings potentialEBITDA* bridge 2008-2010€ billion 2,0 98 (89) 504 (334) 1,964 1,5 1,785 1,0 EBITDA Volume Lower costs Price Other EBITDA 2008 2010* Before incidentals, restated for National Starch Increase Decrease Press conference Q4 & FY 2010 10
  11. 11. Strong balance sheet enables futuregrowth potential € million Dec 31, 2010 Dec 31, 2009 Total Equity 9,509 8,245 Net debt* 936 1,744 Net cash and cash equivalents 2,683 1,919• Credit ratings confirmed in August at BBB+/Baa1, outlook improved to stable• National Starch proceeds will fund growth and potentially partly be used to further optimize capital structure, for example by repaying 2011 debt maturity and/or de-risking pensions where possible• Strong net cash position* Before net pension deficit of €1.0 billion December 31, 2010 (December 31, 2009 €1.9 billion) Press conference Q4 and FY 2010 11
  12. 12. Q4 2010 revenue and EBITDA€ million Q4 2010 Δ%Revenue 3,620 17EBITDA* 377 3Net income 162Ratio, % Q4 2010 Q4 2009EBITDA* margin 10.4 11.9Revenue development Q4 2010 vs. Q4 20092015 +2% +8%10 +4% +17% 5 +3% 0 Volume Price Acquisitions/ Exchange Total divestments rates * Before incidentals Increase Decrease Press conference FY and Q4 2010 results 12
  13. 13. Decorative Paints • Expand distribution in China through ‘controlled stores’ • Continue to build our Dulux brand 2009 2010 3,000 stores 4,000 stores Press conference FY and Q4 2010 results 13
  14. 14. Decorative Paints full year 2010€ million 2010 Δ%Revenue 4,968 9EBITDA* 548 13Ratio, % 2010 2009EBITDA* margin 11.0 10.6Revenue development 2010 vs. 200910 5 6% 9% 2% 1% 0% 0 Volume Price Acquisitions/ Exchange rates Total divestments * Before incidentals Increase Decrease Press conference FY and Q4 2010 results 14
  15. 15. Performance Coatings• New tactile packaging developed by AkzoNobel• Appearing in stores across Europe• Texture gives impression of condensation and contents appear to be ice cold Press conference FY and Q4 2010 results 15
  16. 16. Performance Coatings full year 2010€ million 2010 Δ%Revenue 4,786 16EBITDA* 647 9Ratio, % 2010 2009EBITDA* margin 13.5 14.4Revenue development 2010 vs. 20092015 +3% +7%10 -1% +16% 5 +7% 0 Volume Price Acquisitions/ Exchange rates Total divestments* Before incidentals Increase Decrease Press conference FY and Q4 2010 results 16
  17. 17. Specialty Chemicals• Sustainable Chemical Island concept in Brazil• To supply the world’s largest pulp mill• All latest technologies applied• Investment of close to €90 million Press conference FY and Q4 2010 results 17
  18. 18. Specialty Chemicals full year 2010€ million 2010 Δ%Revenue 4,943 13EBITDA* 939 27Ratio, % 2010 2009EBITDA* margin 19.0 16.9 Revenue development 2010 vs. 2009 15 10 -4% +6% +13% +11% 0% 5 0 Volume Price Acquisitions/ Exchange rates Total divestments * Before incidentals Increase Decrease Press conference FY and Q4 2010 results 18
  19. 19. Values highlights – sustainable andinnovative growth Press conference FY and Q4 2010 results 19
  20. 20. 2010 values results – working towards ourmedium-term ambitions Eco-premium solutions Carbon emission in % of revenue equivalant per ton product 30% 100% 25% 97% 20% 18% 90% 2008 2009 2010 2015 ambition 2009 2010 2015 ambition Total recordable injury rate Female executives per mln hrs worked 20% 4.6 3.7 3.6 12% 10% 2.0 8% 2008 2009 2010 2015 ambition 2008 2009 2010 2015 ambition Press conference FY and Q4 2010 results 20
  21. 21. Pipeline 2011Decorative Paints - Dulux Weathershield (SunReflect™ & Keep Cool™)Solar reflectance feature Customer benefits• Paints absorb heat– new • Savings of up to 15% on the pigment technology reflects energy used for air conditioning more of the solar, without • Available across 60% of the affecting the color. color range• Increased reflectance reduces internal temperatures Growth potential by up to 5°C. • SunReflect ™ launched in India and Keep Cool™ in SEAP. • Roll-outs planned in similar climates. Press conference FY and Q4 2010 results 21
  22. 22. Pipeline 2011Performance Coatings - Sikkens Autosurfacer UVKey application features Benefits for body-shop owners• 50% less energy consumption • Less paint consumption• 2 coats instead of 3 • Increased throughput• Low VOC • Reduced labor and energy costs• Extremely short drying times• Reduced process time Strengthens market position by • Completing our UV-cure system offering Press conference FY and Q4 2010 results 22
  23. 23. Pipeline 2011Specialty Chemicals - High Filler ConceptReplaces tree fiber with non- Growth potentialwood filler • Sales to customer higher than• de-watering/retention system standard papermaking additives using novel on-line treatment of • Growth potential in both high- fillers growth and mature markets• Cost of filler up to 10x lower than • Of interest to all fine paper fiber producersHelping customers save costs• ~10% less tree fiber to purchase• up to 50% lower energy for drying Press conference FY and Q4 2010 results 23
  24. 24. Outlook 2011 Press conference FY and Q4 2010 results 24
  25. 25. Outlook: we expect to make progress onour medium-term strategic ambitions • Top quartile safety performance • Top position in sustainability • Top quartile performance in diversity, employee engagement, and talent development • Top quartile eco-efficiency improvement rate • 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 dividendAnd are aiming for more than 5 percent revenue and EBITDA growth in 2011 Press conference Q4 & FY 2010 25
  26. 26. Q&A Press conference FY and Q4 2010 results 26
  27. 27. Safe Harbor StatementThis presentation contains statements which address such key issues asAkzoNobel’s growth strategy, future financial results, market positions, productdevelopment, products in the pipeline, and product approvals. Such statementsshould be carefully considered, and it should be understood that many factors couldcause forecasted and actual results to differ from these statements. These factorsinclude, but are not limited to, price fluctuations, currency fluctuations, developmentsin raw material and personnel costs, pensions, physical and environmental risks,legal issues, and legislative, fiscal, and other regulatory measures. Statedcompetitive positions are based on management estimates supported by informationprovided by specialized external agencies. For a more comprehensive discussion ofthe risk factors affecting our business please see our latest Annual Report, a copy ofwhich can be found on the company’s corporate website www.akzonobel.com. Press conference FY and Q4 2010 results 27

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