Passion for Paint
ChemTech Morgan Stanley
Dr. Klaas J.H. Kruithof, CTO, May 22, 2019
Introduction
Technology Coordinator R&D Director BU Automotive Chief Technology Officer
Coatings Group & Aerospace Coatings Paints & Coatings
Changes in the industry
1994 2003 2017
1984 1998 2012
Researcher in R&D R&D Director RD&I Director
Automotive OEM BU Industrial Coatings BA Performance Coatings
R&D Manager
Automotive B-NL-UK
ChemTech Morgan Stanley | May 22, 2019 2
A focused Paints and Coatings company
Key brands: North America Mature Europe Emerging Europe
12% 34% 9%
€9.3 bn revenue
Asia Pacific
31%
€1.0 bn EBITDA
€0.8 bn EBIT
10.6% ROS
12.6% ROI
Other regions
5%
34,500 employees
South America
9%
All figures are based on year-end 2018, excluding unallocated corporate center costs and invested capital Revenue by destination
ChemTech Morgan Stanley | May 22, 2019 3
Felling, UK ~270
Our Networked
Technology Centers
Shanghai, China ~150
€1.25 billion
spent on R&D in the last five years
3,000
scientists employed worldwide
3,100+
patents owned by AkzoNobel
70
laboratories globally Strongsville, USA ~50 Sassenheim, NL ~370 Bangalore, India ~120
5
global technology centers
4
Delivering Innovation
by Research & Development
EXECUTIVE COMMITTEE
STRATEGIC
INNOVATION
PARTNERS COATINGS
INCREMENTAL
PRODUCT GLOBAL
DEVELOPMENT PRODUCT
& DEVELOPMENT INCUBATOR
CUSTOMER
SUPPORT
RESINS
TECHNOLOGY COLOR
5
What is paint and why use it ?
Solvent or Water Application
Pigment Color
Additive ‘Pepper & salt’
Resin = Polymer = Latex Film and adhesion
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Performance
beyond expectation
at the size
of a human
hair
Coloring the world: Decorative Paints
8
We color and protect your valuables
9
BEYOND
Expectation
Functionality beyond
Expectation
Anti-Graffiti
Anti-Fingerprint
Anti-Fog
Anti-Fouling
Anti-
Anti-Scratch
Formaldehyde
Protecting the world: Intersleek®
1st biocide-free coating for the shipping industry
Innovation
Pioneering
slime-release Since 1996
technology over 5,500
Sustainability applications
Carbon credits,
biocide-free
Over $3 billion
Performance fuel costs &
Long-term 32 million tons
efficiency, of CO2 saved
fuel savings
Cleaning interior air: Forest Breath
1st bio-based interior wall paint in China
Bio-based with
active bamboo
ingredient Meeting
low-VOC growing
mould-resistant demand for
anti-bacteria sustainable
customer
solutions
Captures and
purifies harmful
air pollutants
like
formaldehyde
BEYOND
Expectation Imagination
Big Data and Artificial Intelligence
Color Data offers
development routes to new
to the next revenue
level by A.I. models
Surfaces with
HTE sensors
High Throughput become data
Experimentation generators
Revenue from data: DryDoq Insight
Big data based predictive tool/application
More
Better
informed
performing
dry-docking
fleet
decisions
16
ChemTech Morgan Stanley | May 22, 2019
BEYOND
Expectation Imagination Generations
Innovation drives Sustainability
value selling and resource productivity
Productivity Asset protection
Examples:
Examples:
Anti-corrosion
Fast cure / low bake
Super durability
Smart application Energy
Waste
Digital inspection / service
Cloud-based data
Emission
Health & well-being
Surface enhancement Toxicity Environmental protection
Longevity
Examples: Examples:
Colors, effects, haptics Towards a circular economy
Self-cleaning and anti-bacterial Waterborne & solid paint
Energy management Phase out materials of concern
ChemTech Morgan Stanley | May 22, 2019 20
“Whatever industry you are in, the biggest
change will most likely come from outside”
Networked innovation and
collaboration is the key to success
Customers
Suppliers
Academia
Startups
21
LET’S Challenge Themes 2019:
Smart Application
Circular Solutions
Enhanced Functionality
TOGETHER Life Science Infusion
Predictable Performance
The AkzoNobel startup challenge
Paint The Future Challenge 2019
6 18 32
6
8
32
9
>4 ≤3
Total submissions: 160
21 joined the Accelerator Program
ChemTech Morgan Stanley | May 22, 2019 23
zero overspray
application
circular
encapsulated
inorganic
corrosion
pigments
inhibitors
application by di-block
data driven resin
drones architecture
Our ambition
to be the reference
in paints and coatings
Q&A
Passion for Paint
ChemTech Morgan Stanley
Dr. Klaas J.H. Kruithof, CTO, May 22, 2019
Breakdown of total raw material spend
Titanium dioxide Additives
12 16
Specialty resins
14 Commodity resins
2018 (%) 19
10
Solvents
7 11
11
Latex and monomers
Pigments and
colorants Packaging
ChemTech Morgan Stanley | May 22, 2019 28
Disclaimer/forward-looking statements
This presentation does not constitute or form a part of any offer to sell, or any invitation or other solicitation of any offer, to buy or subscribe
for any securities in the United States or any other jurisdiction.
Some statements in this presentation are 'forward-looking statements'. By their nature, forward-looking statements involve risk and
uncertainty because they relate to events and depend on circumstances that may occur in the future. These forward-looking statements
involve known and unknown risks, uncertainties and other factors that are outside of our control and impossible to predict and may cause
actual results to differ materially from any future results expressed or implied. These forward-looking statements are based on current
expectations, estimates, forecasts, analyses and projections about the industries in which we operate and management's beliefs and
assumptions about possible future events. You are cautioned not to put undue reliance on these forward-looking statements, which only
speak as of the date of this presentation and are neither predictions nor guarantees of possible future events or circumstances. We do not
undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the
date of this presentation or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
This presentation also contains statements, which address such key issues as AkzoNobel’s growth strategy, future financial results, market
positions, product development, products in the pipeline and product approvals. Such statements should be carefully considered, and it
should be understood that many factors could cause forecast and actual results to differ from these statements. These factors include, but
are not limited to, price fluctuations, currency fluctuations, developments in raw material and personnel costs, pensions, physical and
environmental risks, legal issues, and legislative, fiscal, and other regulatory measures as well as the sale of the Specialty Chemicals
business. State competitive positions are based on management estimates supported by information provided by specialized external
agencies. For a more comprehensive discussion of the risk factors affecting our business please see our latest annual report., a copy of
which can be found on the company’s corporate website www.akzonobel.com
ChemTech Morgan Stanley | May 22, 2019 29
