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Outgrow our markets.
A measure of growth. Measured by growing faster than the markets we participate in. |
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A difficult year from a volume perspective due to the market downturn and de-stocking effects |
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Ensure delivery of volume growth expectations from significant investments (for example in China and in technology) |
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Some market share gains; limited evidence of market share loss |
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Continue to aggressively invest in high growth markets |
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Strong performance from margin management |
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Continue to redirect investment to bigger research and development projects. |
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Continued to invest in future growth in high growth markets. |
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EBITDA margin
> 14 percent by end 2011.
A measure of operational effectiveness. On a corporate level, we use 14 percent as a proxy measure performance for top quartile. |
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Exceeded the 14 percent EBITDA margin target in two quarters, despite the difficult economic climate |
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Continue to focus on the three Cs (Customers, Costs and Cash) |
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Strong performance in gross profit margins due to margin management |
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Continue to professionalize the procurement function and ensure we best leverage our scale |
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Major cost reductions delivered from ICI synergies and other restructuring. |
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Deliver remaining ICI synergies and restructuring savings |
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Increase focus on absolute EBITDA growth, consistent with the focus on volume and market share gains. |
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Operating working capital percent of sales level decreasing by 0.5 per annum
A measure of capital efficiency and operational effectiveness. |
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With a reduction of operating working capital as a percentage of revenue by 2.8 basis points, outperformed our ambitions |
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Continue to reinforce and leverage processes, systems and tools for operating working capital improvement |
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Control of inventory levels and receivables particularly noteworthy |
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Increase focus on inventory improvement through greater emphasis on complexity reduction. |
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Achieved improvements virtually across the board with 13 of the 15 businesses showing improvement. |
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Remain in the top three on the Dow Jones Sustainability Index
A measure of long-term performance potential. Measured by external assessment of performance versus our peer group by Dow Jones. |
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Remained in the top three (top two) |
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Focus strongly on operational eco-efficiency improvement (e.g. energy, raw materials efficiency, waste, water, emissions) |
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Key areas of strong performance were corporate governance, risk management, supplier aspects and climate policy |
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Embed the Carbon Policy |
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Key areas for improvement identified as operational eco-efficiency improvement, aspects of people development and implementation of R&D processes. |
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Pursue safety and people development actions as identified below. |
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Top quartile safety performance
A measure of how we look after our people and operational effectiveness. Best-in-class performance in total reportable injuries for employees and contractors per million hours worked; proxy for best-in-class performance defined as 2. |
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Significantly improved performance versus 2008; nearing our target of 2 |
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Continue roll-out of behavior-based safety, safety leadership training and HSE&S audits to fully cover AkzoNobel sites |
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Greatly increased number of sites using behavior-based safety |
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Develop and roll out a more consistent and professional approach to process safety. |
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Began to implement safety leadership training and enhanced HSE&S (Health, Safety, Environmental and Security) audits. |
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Step change in people development
A measure of how we look after our people and long-term performance potential. Measured by improvement on key metrics in our employee engagement survey. |
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Strong performance in many employee engagement measures |
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Roll out new leadership development series for our senior executives and executive potentials |
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Improvement required in our people management focus |
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Implement the Talent Factory scorecard and monitor and drive action plans for improvements on key metrics |
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Agreed a comprehensive company-wide strategy agenda for HR |
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Continue activities to significantly enhance diversity and inclusion levels |
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Continued to deliver key management development training programs |
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Establish regular company-wide employee engagement survey. |
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Began taking irreversible steps in diversity and inclusion. |
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