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1. AKZONOBEL 
Akzo Nobel
Velperveg 76
P O Box 9300
6800 SB Arnhem
The Netherlands
Tel: +31 26 366 4433
Fax: +31 26 366 3250
www.akzonobel.com
Key Figures:
Paint as % of Group Sales: 41%
Employees£º58500
Coatings Sales£º15.13 billion
Coatings Sales£º1540 m liters
Geographic Sales:
Europe 40%
Americas 33%
Asia Pacific 27%
Key Developments:
Volume growth and improved volume growth and improved efficiency offset rising raw materials costs. o Steep increase in raw material costs in second half
* Autonomous growth 5%, mainly Asia Pacific and U.S. 32% of sales now from emerging markets
* ROS held steady at 8%, ROI improved to 20.5%
* Marine & Protective and Powder Coatings led growth
* Decorative Coatings--improved performance from cost savings
Car Refinishes--major worldwide restructuring set to payoff in 2009
Executive Team:
Hans Wijers, Akzo Nobel CEO and Member of Akzo Nobel's Board of Management responsible for Coatings
Rudy van Der Meer, Member of Akzo Nobel's Board of Management responsible for Coatings, retired in May 2009
2009-Marinus Rooseboom, General Manager Global Car Refinishes Business Unit
2009-Cor de Grauw, General Manager Nobilas Business Unit
2009-Bill McPherson, General Manager Global Marine & Protective Coatings Business Unit
2009--Rob Molenaar General Manager Global Powder Coatings Business Unit
Market Positioning:
Akzo Nobel is not only the world's largest coatings company but also the only one with the broadest portfolio. It has a significant presence in all of the major market sectors except Packaging and Automotive OEM. There are indications that it may be reconsidering its position there, perhaps in view of the conventional wisdom in the industry that being in OEM confers advantages in Refinish.
Commentary:
AkzoNobel has sold its National Starch business to Corn Products International for $1.3 billion. The transaction, which has been approved by the boards of both AkzoNobel and Corn Products International, is expected to close at the end of the third quarter of 2010.Akzo Nobel's ICI's acquisition integration activities have been present with ICI India Ltd. Akzo Nobel became a well-known companies important milestone. ICI India Company, a stock listed company, is the largest decorative paint companies. Amit Jain managed by the directors under the leadership of re-packaging business will be the company's strategic development plan a key role. Akzo Nobel plans to major investments in the next 5 years in India to promote the opportunities in this high growth market. India is undergoing tremendous economic development, and on the world stage of an increasingly prominent position. Since the acquisition of ICI, Akzo Nobel has become a major player in the Indian paint market. Akzo Nobel (about 1500 people£¬including 900 people in ICI India) revenue about 250 millions in India. Growth focus in Asia£¬Eastern Europe, Central and South America and Central America, the two emerging markets. Based in mature economies, we will continue by choosing the way of mergers and acquisitions to expand the market. Our goal is to maintain market leadership by participation in the coatings industry, we believe that strengthening the worldwide group of suppliers and customers integration is inevitable.
We are focusing on growth in the emerging markets of Asia, East and Central Europe, and South and Central America, primarily through autonomous development. We will also continue to grow our market presence in the mature economies through selected acquisitions.
Our ambition is to remain market leader and participate in the consolidation of the coatings industry, which we believe is inevitable as our supplier and customer base strengthens globally.
We have achieved significant performance enhancement through careful restructuring and we will continue these efforts. Our medium-term financial target is 25% ROI, leading in due course to around 30%.
Key objectives are bolt-on acquisitions in mature markets, pushing hard in Asia and strengthening distribution capability.
It would be reasonable to summarise Akzo Nobel's strategy as:
Growth through:
* Bolt on acquisitions in mature markets
* Geographic emphasis on Asia, notably China
* Diversification (eg accident management services)
Profit through:
* Lower costs
* Moving along the value chain (e.g. Deco merchants, Refinish distributors, CV painting contractor)
Focus through:
Divestment of non-coatings activities (e.g. printing inks, adhesives, papers)
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