Making it happen: Taking biobased chemicals into Paints & Coatings

Transcription

1 Making it happen: Taking biobased chemicals into Paints & Coatings Montreal, June 17, 2013 Peter J. Nieuwenhuizen, Director Future-proof Supply Chains

2 Safe Harbor Statement This presentation 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 forecasted 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. Stated 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 2

3 AkzoNobel today Revenue 15.4 billion 50,610 employees 44% of revenue from high growth markets Major producer of Paints, Coatings and Specialty Chemicals Leadership positions in many markets Sector Leader 2012/2013 Revenue by Business Area Operating income* by Business Area EBITDA** by Business Area 36% 37% 44% 48% 47% 38% Performance Coatings Decorative Paints 27% 8% 15% Specialty Chemicals 5.4% Growth 2012 vs % Return on sales (operating income/revenue) 10.4% EBITDA/revenue *2012 excluding impairment ( 2.1 billion) **New definition including incidentals and after IAS19 3

4 Our ambitions Products with a sustainability advantage for customers 20% of our revenues by 2020 We will increase the revenue from solutions that generate direct resource and energy benefits for our customers, consumers and users Reduction of carbon emissions (cradle to grave) 25-30% reduction per ton by 2020 (2012 base) We will reduce our carbon emissions through the value chain 4

5 Last year we shared with you in Florida our biobased strategy, and we invited (and approached) partners to explore opportunities together Strategy and Guiding Principles A proactive effort to lead the deployment of selected, relevant bio-based chemicals in our core markets and applications 1. Leverage market innovation and focus on development of channel and applications for biobased chemicals rather than the in-house development of biobased raw materials and technologies 2. Focus on cost competitive, high impact areas guided by supply issues, sustainability and customer insight 3. Work across the supply chain to integrate biobased raw materials 4. Take 1 st generation opportunities as stepping stone, but insist suppliers work towards 2 nd generation Starting from a strong base: already more than 9% biobased in our spend 5

6 Screening Matrix Detailing We focused on a select list of raw materials, based on our three-pronged approach, comprising drop-ins, conversions and novel products Drop In Raw Materials Chemical Conversions Novel Formulation Materials + Products Materials Chemistries Products Longlist Shortlist Epichlorohydrin Acrylic acid n-butanol Acetone Ethylene Xylenes Ammonia Adipic acid Acetic acid Terephthalic acid Methyl methacrylate 6

7 We have this year announced four partnerships in succession; We are working on a few more Biobased Partnerships Biobased solvents LatAm Algae-derived fatty acids Biobased epichlorohydrin Biobased acetic acid Partnership with Solvay-Rhodia targeting volumes of up to 10 ktpa of biobased solvents by 2017, through Joint formulation of Augeo type solvents into our coatings Supplies of biobutanol and acetone as drop-in Partnership with Solazyme to develop two novel fatty acids, and a supply agreement for drop-in as of 2014 in Brazil For use in Surfactants and Decorative Paint applications Partnership with Solvay to develop a book-and-claim approach to biobased epichlorohydrin used in AkzoNobel s epoxies Increase to 20% of AkzoNobel indirect use of ECH by 2016 Finalizing a partnership with ZeaChem on the feasibility of a >100 ktpa EU commercial scale cellulosic acetic acid production facility Located on or near an AkzoNobel site in Netherlands or Sweden tbd 7

8 On this basis we can start to see a path to over time to green significant parts of our supply chain Feedstock Base chemicals Major organic raw materials Major intermediates Monomers Key raw materials OILS & FATS Tallow & Fatty acids natural oils Surfactants NATURAL GAS >300 Methanol (C1) >300 Ethylene (C2) Ammonia Formaldehyde Acetic acid Ethylene oxide MMA Butyl acrylate Styrene Alkyds Pure acrylics Vinyl acrylics Styrene acrylics OIL ~300 Propylene (C3) Acetone Acrylic Acid VAM (Vinyl Acetate) Vinyl Acetate Ethylene (VAE) >300 Aromatics (C6+) n-butanol Phenol Benzene Bisphenol A ECH (Epichlorohydrin) NPG (Neopentyl glycol) Epoxies Polyesters Xylenes PTA/IPA/PA (Terephthalic acid) Solvents Materials in scope # Volume in kt (incl derivatives) 8

9 Biobased chemicals can be successfully included but it takes time, commitment and genuine interest in the other party s success Win-win opportunities do exist Economic alternatives are getting real Main insights Still no green premium, but partners can be found where this is not needed Clarity about what you can bring AkzoNobel: a channel to market, and off-take guarantees Need to be committed to see it through Need an agreed internal strategy to focus effort and move from analyzing into doing It takes longer than you think and then some Surprises happen, they need to be addressed externally and internally Genuine interest to make it work for both parties No one size fits all Every opportunity and partner requires a different approach As in real life, partner choice is a high-stakes matter It ain t always easy no partner is perfect right away the strategy sees you through 9

10 Trusted portfolio of global brands 10

11 Thank you for your attention