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Colors of Sustainability

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Colors of Sustainability Akzo Nobel Pakistan Limited Colors of sustainability Repor1t 5 Annual Report 2015 Essential ingredients, essential color and essential protection We care about our consumers and what’s important to them. Whether they are conserving and treasuring the past or building the world of tomorrow, we’re always there to offer color, safety and protection. From the sustainable coatings on consumer goods to fire protection coatings on a skyscraper; we protect the things you see, touch and rely on every day, while providing essential colour and aesthetics. 1 Contents Overview and strategy 2 Chief Executive’s statement 3 Human Cities initiative 4 Code of Conduct and values 6 Our passion for people 7 Health, Safety, Environment and Sustainability 9 Business performance 17 Corporate Governance and Compliance 22 Risk management 23 Company information 25 Our Board of Directors 26 Our Executive Management team 28 Report of the Directors 30 Statement of Compliance with CCG 32 Review report on Statement of Compliance with CCG 33 AkzoNobel Pakistan financial statements F 01 Notice of meeting Admission slip Form of proxy Video Conferencing Facility Form Mandate Letter Report15 Annual Report 2015 2 Overview and Strategy Our vision remains: AkzoNobel Pakistan being a part of the AkzoNobel Group Leading market positions At AkzoNobel Pakistan, we carry with us the traditions and expertise of one of Pakistan’s delivering leading oldest and most successful companies; ICI performance Pakistan Limited. The AkzoNobel Group acquired ICI in 2008 bringing together the innovation, leadership and expertise of both companies. Through a scheme of demerger, the Paints Business at ICI was separated into a separate legal entity. As of June 1, 2012, we are now operating as AkzoNobel Pakistan. With our head office in Lahore and branches across the country, the AkzoNobel Pakistan family consists of over 250 talented people and many others associated indirectly, all committed to excellence and passionate about providing sustainable solutions to our customers. Our mission To be a growing, sustainable OneAkzoNobel Strategic Customer operation that exceeds focus end-user areas Processes Actions segments customer expectations by leveraging our strong heritage, global knowledge Core principles and values base and world class talent Our strategic targets Akzonobel creates everyday As a leading global paints and coatings company To achieve our mission, we will: and a major producer of specialty chemicals, we essentials to make supply essential ingredients, essential protection • Give priority to health, safety, environment people's lives more liveable and essential color to industries and consumers and ethical matters worldwide. Backed by a pioneering heritage, • Ensure our products deliver maximum value and inspiring. Essential our innovative products and sustainable tech- to customers by maintaining dependable ingredients, essential nologies are designed to meet the growing supply, consistent quality, and reliability demands of our fast-changing planet, while • Uphold excellent service levels to foster protection and essential making life easier. Headquartered in Amsterdam, long-term relationships with customers color that help make the the Netherlands, we have approximately and suppliers 45,000 people in around 80 countries, while • Achieve the highest possible operating effi- planet more sustainable and our portfolio includes well-known brands such ciencies and lowest cost, and expand the bring energy and inspiration as Dulux, Sikkens, International, Interpon and business through new product launches Eka. Consistently ranked as a leader in sustain- and by tapping into new markets to urban areas by using ability, we are dedicated to energizing cities and • Develop and retain a team of highly capable creativity and invention to communities while creating a protected, colorful people dedicated to delivering the mission world where life is improved by what we do. • To leverage AkzoNobel's global knowledge meet life's challenges. and expertise to better deliver our stra- tegic targets. 3 Chief Executive’s Statement Dear Stakeholders, 2015 results have been rewarding, and consistent over the previous year. We continued our strong with the company’s orientation towards innovation, track record of performance improvement, with safety, quality, and sustainability. Management has higher return on sales and return on investment focused its attention on each sub-segment of for shareholders. The increase in the dividend is business, its processes and practices, and this also a clear sign we are more confident about our has resulted in a stronger, leaner, and more agile future cash flow generation. organization that is clearly delivering results. The journey to success is never an easy one. Attention has been focused on incorporating AkzoNobel continues to soar high due to the AkzoNobel’s global and regional best practices countless efforts of its team that not only includes to various businesses, and this has added value our employees and executive management but across the board. ANPL has received immense also the customers and suppliers who instil their support from Performance Coatings and Specialty faith in our abilities to excel. We treat all those who Chemicals in the Middle East, from the Decorative do business with us as important partners, and Paints in SESAME, and several corporate functions, actively work towards a relationship of mutual trust. all lending their weight to making the Pakistan success truly a demonstration of our value of The employee engagement scores have improved; winning together. which is a credible confirmation of our company’s beliefs in establishing a strong association between As I look back on 2015, I take great pride in the motivation and positive results. The global support fact that we continued to be successful doing that we gather from the Middle East and SESAME what we do best – creating everyday essentials has had a huge positive impact on how we shape to make people’s lives more liveable and inspiring. and build our strategies. This combined with the We have new operating models in place; we’ve wisdom of our Board of Directors and expertise of refined our portfolio; our manufacturing footprint our capable Executive Team, will help us continue has been made more efficient; we have retained to grow in the future. a continuous improvement culture, and there’s ongoing focus on operational excellence. In The confidence entrusted in us by our share- addition, our ability to successfully commercialize holders motivates us to perform better every innovation remains strong, and we continue to year; it sparks our creativity, gives us energy, lead the way in terms of sustainability, and our enables us to deliver for our customers and, ulti- Human Cities initiative has evolved and continues mately, generates value for our business. We are to grow and thrive. using our key strengths – essential ingredients, essential protection and essential color – to help Decorative Paints at AkzoNobel has launched build a solid foundation for the next phase of the the innovative Visualizer Application and has company’s strategy. successfully reinforced its position as the leading paints in the industry whereas Specialty It is pertinent to mention that this company paid Chemicals boosted local business by devel- over a billion rupees into the government treasury oping, diversifying, and localising its portfolio, and this year, and we join all fellow business houses improving customer service at the same time. that pay taxes according the letter and spirit of The Performance Coatings business continues the law, to encourage the government to broaden to embrace our valued business principle of tax collection rather than burdening only those exceeding customer expectations and hence who pay. has asserted its strength in the market. Through excellent customer service, advancements in tech- Looking back, I see 2015 as a rewarding and nology and sustainable features of our products, satisfying year, however I remain conscious that we have strengthened reasons why customers this company has so much future opportunity to should prefer our products and services over offer, and that brings me back to my desk to work competition. We create a unique value proposi- with my team on projects that will maintain the tion for all stakeholders by mitigating risks, and growth trajectory our stakeholders expect from us. generating several synergies that would clearly I would like to express my humble gratitude to the not be possible without our very diverse portfolio. AkzoNobel Pakistan team who have been at the heart of our efforts, and to our stakeholders and Safety is at the core of how things are done at customers for supporting us to build a better, more AkzoNobel. A healthy, safe and sustainable envi- inspiring Pakistan. ronment is what we strive to maintain and by offering consumers an environmentally friendly choice, we can help them demonstrate their concern for the environment by using products they know are safe, and do not compromise on quality. Our customers have come to acknowledge that our products are what we claim them to be. All of this contributed to our performance, which Jehanzeb Khan saw us successfully achieve significant growth Chief Executive Annual Report 2015 4 The Human Cities Initiative Human Cities; our new company Through this initiative, we are linked to the chal- positioning is an opportunity for AkzoNobel lenge posed by rapid population growth in urban to make a major contribution to one of areas, and we can demonstrate why our prod- the key challenges of our age. Currently, ucts are so relevant to the world around us. The 1. Cities should be more colorful around half the world’s population lives fact that we are already so active in these markets As our cities continue to grow and expand, we in cities. Estimates say this will increase creates a strong platform for us to positively influ- have to ensure they remain exciting and vibrant. to more than 75 percent by 2050. Many ence the process of urban transformation that is A simple way of doing this is to make them cities are already struggling to cope with taking place.
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