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Employees and community

Key performance indicators – employees 2011 2012 2013 2014 Target 2015 * The definition of potentials changed in 2014 to better reflect our talent pool. ** In line with the new definition of potentials, the definition of leadership talent also changed in 2014 to better reflect our talent pool. People data Employees at year-end (FTE) 57,240 55,272 49,561 47,207 – Employee engagement Employee engagement (ViewPoint score (1-5 scale)) 3.74 3.80 3.88 3.97 >4.00 Diversity and inclusion % of females in total workforce 24 24 24 24 – % of employees from high growth markets 40 40 47 48 – % of female executives 13 15 16 17 20 % of executives from high growth [...]

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Code of Conduct

AkzoNobel Code of Conduct The Code of Conduct serves as the common reference document which sets out our fundamental principles and rules for doing business. It applies equally to our corporate actions and the behavior of individual employees, regardless of the market segment, function or country in which we operate. Available in 27 languages, the Code of Conduct is distributed in paper form and is widely available online. The Code of Conduct, together with directives, rules, manuals, guidelines and procedures, are part of the company’s Directives framework, which sets out mandatory internal rules for employees. AkzoNobel is subject to local, regional and [...]

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Note 8: People safety

Overall performance indicators for people safety show that the company continues to make improvements towards the targets set for 2015. Implementation of the people safety programs coincides with a continued decrease in the number of injuries to employees, supervised and independent contractors. Our behavior-based safety program, which actively engages all personnel in identifying and addressing at-risk behavior, has been tailored to the needs of our non-manufacturing personnel and rolled out. Our main performance indicators for people safety are the total reportable injury rate (TRR) and the lost time injury (LTI) rate. Employee and supervised contractors total [...]

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Note 14: Community

[...] Run by our Decorative Paints business, the initiative also encourages the active participation of our employees. Another vital part of our partnership approach is the development of young people, highlighted by our work with the Plan organization, which includes the AkzoNobel Education Fund. Meanwhile, our global sponsorship program is currently focused on key partnerships with the Cruyff Foundation, the Rijksmuseum and the Van Gogh Museum in the Netherlands, and the Extreme Sailing Series. Our products When possible, we endeavor to assist society through our products. Ferrazone, for example, is helping to improve well-being in many communities, particularly in [...]

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How we created value in 2014

By bringing more value to our customers, investors, employees and society in general, we can better position ourselves for growth and achieve our strategic vision of leading market positions delivering leading performance. Economic value Environmental value Social value Financial overview 2014 revenue was down 2 percent, with volume up 1 percent in all Business Areas, more than offset by adverse currency effects and divestments. Operating income was up 3 percent at €987 million, due to higher operating results and lower restructuring charges, offset by higher incidental charges. Excluding incidental items, ROS was 7.5 percent (2013: 6.1 percent). ROI was 10.0 [...]

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Note 4: Employee benefits

Salaries, wages and other employee benefits in operating income In € millions 2013 2014 Salaries and wages (2,268) (2,226) Post-retirement cost (268) (221) Other social charges (414) (377) Total (2,950) (2,824) Average number of employees Average number during the year 2013 2014 Decorative Paints 16,800 15,500 Performance Coatings 21,300 21,000 Specialty Chemicals 10,600 10,000 Corporate and other 1,500 1,700 Total 50,200 48,200 The average number of employees working outside the Netherlands was 43,100 (2013: 45,000). Employees At year-end 2013 2014 Decorative Paints 16,200 15,200 Performance Coatings 21,400 20,500 Specialty Chemicals 10,400 9,800 Corporate and [...]

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Economic/Governance/Social

[...] handled by the Compliance Committee number 23 24 24 9 11 – – Code of Conduct trained % of employees 95 95 96 95 NA 1 – – Health and Safety Fatalities employees number 1 2 2 0 0 0 0 Total reportable injury rate employees/supervised contractors /million hours 3.6 3.1 2.4 2.3 1.8 <2.0 <1.0 Lost time injury rate employees/supervised contractors /million hours 1.6 1.3 1.1 1.3 0.9 1.3 – Occupational illness rate employees /million hours 0.3 0.3 0.2 0.1 0.3 – – Total illness absence rate employees % 1.9 2.0 2.0 2.1 2.1 1.9 – Fatalities contractors (supervised plus independent) number 0 1 0 0 0 0 0 Total reportable injury rate independent contractors [...]

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Note 15: Post-retirement benefit provisions

[...] plans in the UK. The benefits of these pension plans are based primarily on years of service and employees’ compensation. The funding policy for the plans is consistent with local requirements in the countries of establishment. We also provide certain healthcare and life insurance benefits to retired employees, mainly in the US and the Netherlands. Valuations of the obligations under the plans are carried out regularly by independent qualified actuaries. We accrue for the expected costs of providing such post-retirement benefits during the service years of the employees. Governance of the benefit plans is the responsibility of the ExCo Pensions Committee. This [...]

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Note 12: Our people

[...] is supported by our Performance and Development Dialog process (P&DD), which is mandatory for all employees. The values are now fully integrated into this process, which means that they are a crucial part of the objective setting phase and mid-year review, as well as the year-end performance assessment. In addition to the performance score, a separate values score has been introduced which influences the overall P&DD rating. This rating influences the annual salary review, so employees are rewarded not only for what they achieve, but also for how they achieve it. ViewPoint engagement survey One of our other key measures of progress in the area of culture is [...]

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Integrity management

[...] of alleged breaches Health and safety 18 42 8 15 Business integrity 112 152 82 90 Treatment of employees 112 101 61 65 Other 3 0 0 0 Code of Conduct investigation Code of Conduct alleged breaches investigated (in %) 100 100 100 100 Code of Conduct alleged breaches handled by the Compliance Committee (in numbers) 24 24 9 11 Code of Conduct alleged breaches handled by the relevant businesses (in numbers) 221 271 142 159 Substantiated Code of Conduct breaches (within year) 149 163 57 67 Substantiated Code of Conduct breaches (total, including breaches substantiated in a later year) 149 178 64 – 1 Number of dismissals for Code of Conduct breaches within year 99 131 [...]

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