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:
- 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.
- 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.
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:
- Successfully integrating ICI
- Delivering profitable growth by leveraging our strong emerging markets and technology positions, augmented by bolt-on acquisitions
- Improving margins through enhanced pricing and procurement processes
- Increasing operational effectiveness, partly through restructuring, particularly in mature markets
- Embedding the AkzoNobel values
- Creating an industry-leading Talent Factory
- 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.