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Strategy


Following the Organon BioSciences divestment and the acquisition of ICI, AkzoNobel became the world’s largest Coatings and Specialty Chemicals company. We have now entered a phase in which we will focus on improving our performance levels, reflecting the benefits of our scale.

The fact that we have strong positions in diverse, highly attractive sectors, with a wide geographical spread, will enable us to meet the short-term challenges – particularly those arising from the impact of the ongoing economic recession – as well as helping to position the company for the long-term.

We have set ambitious targets for sustainable value creation to support our overall goals. They are:

Value creation

  • Outgrow our markets
  • Improve our EBITDA margin to a minimum of 14 percent by the end of 2011
  • Improve our EVA®1 performance year-on-year, with a focus on reducing operating working capital as a percentage of sales.

Sustainability

  • Remain in the top three in the Dow Jones Sustainability Indexes
  • Reduce our total recordable injury rate
  • Deliver a step change in people development, in part through substantively improving the diversity of our company.

Strategic agenda

To achieve these ambitions and thereby deliver Tomorrow’s Answers Today, we have set a corporate strategic agenda which focuses on incremental improvement. This agenda consists of:

  1. Successfully integrating ICI
  2. Delivering profitable growth by leveraging our strong emerging markets and technology positions, augmented by bolt-on acquisitions
  3. Improving margins through enhanced pricing and procurement processes
  4. Increasing operational effectiveness, partly through restructuring, particularly in mature markets
  5. Embedding the AkzoNobel values
  6. Creating an industry-leading Talent Factory
  7. Striving for world class levels of sustainability and safety.

This agenda is explained on the following pages.

1 EVA is a registered trademark of Stern Stewart & Co.

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