Bill McPherson

Marine & Protective Coatings

Marine and Protective Coatings

Worldwide market leaders in

InternationalMarine Coatings

InternationalProtective Coatings

InternationalYacht Paints

Akzo NobelAerospace Coatings

>10%3%>5%5% Annual growth

220 million EUR>300 million EUR>2 billion EUR> 2.5 billion EURMarketvalue

Sales 975 mln4,400 employees

Market & Products: Marine Coatings

DecksHard wearing Impact & Chemical Resistance

Superstructure and TopsidesHigh performance cosmetics

Cargo HoldsAbrasion resistance Ballast Tanks

Corrosion Resistance

Underwater HullFouling Control

Cargo TanksChemical resistance

We lead the markets in antifoulings and ballast tank coatings.

Market & Products: Protective Coatings

SteelworkAnticorrosive

products

Cosmetic FinishesHigh performance cosmetics

Underwater StructuresNon-toxic Antifouling

systems

High Temperatureresistant coatings

Storage TanksTank Lining Systems

Fire ProtectionChartek passive

fire protection

We protect assets from aggressive conditions.

PC - Oil and Gas

PC - High Value Infrastructure focus

PC - Oil & Gas

Market & Products: Aerospace Coatings

Civil and general aviation, military

Specification driven

Just-in-time delivery

Customers: Airbus, Boeing, Lockheed, Air France, Delta Airlines

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8

Market & Products: Yacht Coatings

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Antifoulings

Topsides

Fillers

Interiors

Customers: West Marine, Lürssen, plus a number of unique, prestigious projects

Markets & Products: Yacht Coatings

Superyacht Pelorus

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Akzo NobelChugoku

JotunHem

pelSigma

PPG

RPMSherw

in Willi

ams

KCCNipponKan

sai

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Marine & Protective Coatings: Market position

Global No 1. in Marine, Protective, Yacht Coatings

Share the lead position in Aerospace Coatings with PPG

Combined markets share in Marine, Protective and Yacht:

Marine & Protective Coatings - Strategy

“Creating Growth through Leadership”

Organic growth – Focus on Asia, Central/Eastern Europe, Americas

Innovation – Developing products which add value to customers and

ourselvesAcquisitions– Using opportunities for consolidation especially in Protective

Coatings marketsImproving productivity in developed marketsIncreasing EVA each year

Marine & Protective Coatings – Operational Excellence

We want to achieve operational excellence.

We track every ship we paint.

Intersleek won WWF recognition for environmental protection.

We have recently won awards for Airbus, Cessna, US Military.

Growth opportunities

Organic Growth

Protective Coatings

– High oil and gas prices boost investments in offshore and onshore facilities

– Big expansions in high value infrastructure

– Wind turbines market at 30% growth p.a.

Yacht Coatings

– Strong brand recognition allows for expansion into new product and geographic areas

Aerospace

– Market has recovered strongly since 9/11/2001

– Annual growth > 10%, highest in Asia, particularly China

Growth opportunities

Some customers buy from us in more than one market segment.

Growth opportunities

Successful innovations

Interchar: Protective fire coating for steel constructions

SRS: Our easily removable system minimizes maintenance downtime

Growth opportunities

Acquisition

Complementary to organic growth

Focused approach

– Strategic fit

– Reasonable price

Example: U.S. Paint / NOF (2002)

– Yacht paint in the U.S.

– Aerospace coatings for corporate jet segment

– Strong brand

Growth opportunities

We have other growth opportunities

Still room for consolidation

Environmental legislation favors large global players

Some customers want a “cradle-to-grave” service

Outlook

How we see the future

We serve growing markets.

We have loyal and profitable customers.

We have some great innovations.

This is an exciting business!

Fit For the Future

Back-up

Back-up slides

Copper/Zinc Cost Development (USD per tonne)

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