The Board of Management’s statement on the financial statements, the management report and on internal controls
We have prepared the 2010 Report of AkzoNobel and the undertakings included in the consolidation taken as a whole in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and additional Dutch disclosure requirements for annual reports.
To the best of our knowledge:
- The financial statements in this 2010 Report give a true and fair view of our assets and liabilities, our financial position at December 31, 2010, and of the result of our consolidated operations for the financial year 2010.
- The management report in this 2010 Report includes a fair review of the development and performance of the businesses and the position of AkzoNobel and the undertakings included in the consolidation taken as a whole, and describes the principal risks and uncertainties that we face.
The Board of Management is responsible for the establishment and adequate functioning of internal controls in our company. Consequently, the Board of Management has implemented a broad range of processes and procedures designed to provide control by the Board of Management over the company’s operations. These processes and procedures include measures regarding the general control environment, such as a Code of Conduct including business principles, corporate directives and authority schedules, as well as specific measures, such as a risk management system, a system of controls and a system of letters of representation by responsible management at various levels within our company.
All these processes and procedures are aimed at a reasonable level of assurance that we have identified and managed the significant risks of our company and that we meet our operational and financial objectives in compliance with applicable laws and regulations. The individual components of the above set of internal controls are in line with the COSO Enterprise Risk management framework. With respect to support to, and monitoring of, compliance with laws and regulations including our business principles, a compliance committee has been established. Internal Audit provides assurance to the Board of Management whether our internal risk management and control systems, as designed and represented by management, are adequate and effective.
While we routinely work towards continuous improvement of our processes and procedures regarding financial reporting, the Board of Management is of the opinion that, as regards financial reporting risks, the internal risk management and control systems:
- Provide a reasonable level of assurance that the financial reporting in this 2010 Report does not contain any errors of material importance
- Have worked properly in the year 2010.
For a detailed description of the risk management system with regard to the strategic, operational and compliance risks and the principal risks identified, reference is made to the . We have discussed the above opinions and conclusions with the Audit Committee, the Supervisory Board and the external auditor.
We have the aspiration to be the world’s leading Coatings and Specialty Chemicals company. On September 28, we announced our medium-term ambitions to grow to €20 billion revenue, increase EBITDA each year while maintaining a 13 to 15 percent margin, reduce OWC percent of revenue year-on-year by 0.5 percent towards a 12 percent level, and pay a stable to rising dividend.
The sustainability ambitions are to remain a top three leader in our industry, to be top quartile in our peer group in terms of safety performance, diversity, employee engagement and development, and eco-efficiency improvement rates.
We are aiming for more than 5 percent revenue and EBITDA growth in 2011, in line with medium-term ambitions.
Amsterdam, February 16, 2011
The Board of Management