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Our leadership

In this section we introduce our Board of Management and Executive Committee, as well as our Supervisory Board. We also present the Report of the Supervisory Board and provide detailed overviews of their activities during 2013. Our Board of Management and Executive Committee Statement of the Board of Management Supervisory Board Chairman’s statement Our Supervisory Board Report of the Supervisory Board

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Note 11: Our people

[...] four key strategic ambitions: Create a sustainable and diverse workforce Build a strong and diverse leadership pipeline Engage managers to build and lead diverse teams Create a highly inclusive work environment We have come a long way. Launched in 2008, our D&I ambition today is represented in various HR and business processes. We saw many positive D&I decisions in 2013 – both in business moving closer to customers and growing talents from within. Since 2008, female executives have doubled and representation of executives from high growth markets has increased by 40 percent. We achieved this by continuous application of various D&I interventions [...]

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Internal risks

Internal Strategic Identification of major transforming technologies Our success depends on the sustainable growth of our business through research, development and innovation. If we are not able to identify and adopt major transforming technologies in a timely manner, this may lead to the loss of our leadership positions and adversely affect our business. Risk corrective actions The risk of missing relevant technology developments is mitigated in four ways. Firstly, we adequately support research and development with a spend of 2.6 percent of revenue (€373 million). Secondly, as defined in our core innovation process, our key projects have detailed technology [...]

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Employees

[...] 30 Talent management % of online P&D Dialog participation 76 78 84 85 95 % of cross-BU moves of leadership talents 5 6 5 7 10 % internal promotion into executive level 74 80 70 75 80 % retention of leadership talent 97 96 96 92 95 % retention of leadership talent – under-represented group (women and high growth market employees) 96 94 97 92 95 Learning and development ViewPoint score on Learning and Growth (Q12) (1-5 scale) 3.61 3.80 3.85 3.93 >4

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Report of the Supervisory Board

[...] after first gaining a thorough understanding of AkzoNobel’s strategic ambitions, the specific leadership roles and competencies needed to meet those ambitions and the culture of our organization. As a result, it is the Supervisory Board’s intention to nominate Mr. Byron Grote for election to the Supervisory Board at the 2014 AGM. The new member will bring additional financial knowledge and as such be an appropriate successor for Sir Peter Elwood. The new Supervisory Board member will participate in a tailored induction program covering AkzoNobel’s governance and businesses and will also join the ongoing training program in which all Supervisory Board members [...]

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Chairman's statement

[...] to define which behavioral changes will make the greatest impact on their business results. Energized leadership Fostering this winning culture is one of the key responsibilities of Marten Booisma, the most recent addition to our Executive Committee. Marten is our Chief Human Resource Officer and his significant international experience will be invaluable as we look to deliver the change in culture that’s needed. He is part of an Executive Committee which has seen a number of changes in the last 18 months, including the appointments of Conrad Keijzer (responsible for Performance Coatings) and Ruud Joosten (Decorative Paints). They joined Werner Fuhrmann [...]

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Strategic focus areas

[...] what we call Planet Possible. In the next generation of sustainability development, we believe that leadership will require a much stronger external focus. By tailoring solutions to customer and end-user needs, we will make sustainability profitable, both now and in the future. There are four main components to this new sustainability strategy, which we refer to as our Planet Possible approach. They are: Sustainable business We will create business value through products and solutions that provide both functionality and other sustainable benefits, as well as cost savings from operational efficiency. Overall, we will track our progress against this aspect of our [...]

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Decorative Paints

[...] made good progress in simplifying the organization – including the introduction of an enhanced leadership structure – and plan to implement a new business model for Europe which will make us more agile and better positioned to increase market penetration. We also continued to invest throughout 2013, which proves that we’re taking a long-term view – in Europe as well as the high growth markets. A new €20 million plant was inaugurated in Gwalior, India, and we announced plans to build a production facility in Chengdu, China, which will start-up in 2015. In addition, a new research center was opened in the Netherlands, while construction work is continuing [...]

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AkzoNobel on the capital markets

[...] over $60 trillion in assets under management. In addition we qualified for the Climate Disclosure Leadership Index (CDLI Benelux) during 2013, and became the leader in the Sustainalytics chemicals industry ranking.

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Processes and capabilities

[...] retaining talent Assessing performance and potential Identifying leaders through creation of a common leadership potential profile Deploying personnel based on solid succession planning and rich internal talent pools Strategic workforce planning Attracting, acquiring and on-boarding based on a clear employee value proposition

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