AkzoNobel - Oneworld NA #19 - 2017

AkzoNobel — North American edition Volume 19, Q3 2017

The Volvo Ocean Race How we’re using a global sailing event to promote our company in the US

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Q&A with Yvette Williger

Houston lab serving customers 55 years and counting

Experienced change leader embarks on a new journey in Nashville

State-of-the-art Coatings facility will help deliver new products and innovations for North America

Ohio colleague Bill Slama celebrates a major anniversary

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Fellow North American employees,

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elcome to the first digital version of OneWorldNA. We’re publishing this volume online to make it more readily available and to do our part toward controlling costs, an important component of the promise AkzoNobel has made to our shareholders to drive cost savings and realize growth.

Since our last issue, the Pittsburgh-based paints and coatings maker PPG has suspended its attempt to purchase our company. Also, we recently reached an agreement with the shareholder group Elliott Advisors to support our strategy in creating two world-class, high-performing businesses: Specialty Chemicals and Paints and Coatings. We believe this will lead to a step change in growth and long-term value for our shareholders and all other stakeholders.

Houston colleague wins prize in Connect contest

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ast winter, AkzoNobel launched Connect, our new global company intranet, by sponsoring an online treasure hunt.

The event inspired thousands of colleagues around the world to explore the new site and discover how it’s connecting colleagues to people, content and news.

Kenny Shults, a 13-year veteran of the maintenance technician team at the Protective

Coatings plant in Houston, Texas, won $550 in the hunt. Kenny navigated Connect during his lunch hour and says it was time well spent because Connect “makes it easy” to find news about AkzoNobel and its people. “I like to keep up with company news from around the world,” he says. “Now, I can rely on Connect for news about the company that could affect me.”

Kenny used his prize money to buy lunch for his group.

As recently announced, the separation will officially go into effect Jan. 1, 2018. By a target date of Oct. 1, 2017, each North American employee in our support functions will be informed which entity they will be working in. Employees who are currently working in a business unit or strategic market unit will of course continue to work in their respective businesses and will not be directly impacted by the separation.

The Houston-based Protective Coatings Maintenance Technician Team enjoyed a free lunch courtesy of colleague Kenny Shults (pictured above), who won a cash prize in the Connect treasure hunt.

Pictured from left are David Reyes, David Lozano, Kenny Shults, Henrry Ramos, Cris Izquierdo, David Pyle, John Moore and Darrin Lamkin.

Not pictured: Michael Wiley.

I will continue to serve as the regional director until the separation is complete and am working closely with Volkan Goren in Performance Coatings to ensure a smooth transition. Following the split, I will continue my role as a managing director for Polymer Chemistry, as part of the Specialty Chemicals business.

The list of resources shared by Paints and Coatings and Specialty Chemicals – Human Resources, contractors, pensions, current and legacy properties, tax, treasury, medical benefits and more – is a lengthy and complicated one. That’s why we’ve set up teams of functional and business experts (Expert Separation Teams, or ESTs) to guide us through the separation process and help with the disentanglement of these two entities.

There is also a Local Separation Team (LST) that is managing these details here in North America. We’ll continue to provide updates about North American separation activities as pertinent information arises.

In addition, be sure to watch for global news on Connect, in the Essentials newsletter and visit the Connect strategy page for the latest materials.

Expansion continues in Los Reyes

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ur Polymer Chemistry business has further affirmed its industry leadership in organic peroxides with the completion of another expansion project at our facility in Los Reyes, Mexico. The investment will grow our peroxyester capacity in North America by 40 percent, substantially increasing the supply of essential ingredients for customers in the polymer industry.

As we progress with the separation project during the rest of this year, I am counting on your full support in continuing to adhere to our company values. Be safe, win together and continue our strong focus on serving our customers.

Ask questions and share your concerns openly with management.

“We’re seeing increasing demand from our customers in North America and this expansion allows us to maintain our leading position as a reliable supplier of organic peroxides,” explains Johan Landfors, Managing Director, Polymer Chemistry.

Regards, Johan Landfors, Regional Director, North America

P.S. Watch for the final 2017 issue of OneWorldNA during the 4th quarter.

OneWorldNA Magazine Volume 19 - 2017

Publisher AkzoNobel North America Contact OneWorldNA@akzonobel.com Editorial team Brent Connett, Polymer Chemistry

AkzoNobel has a long history in Los Reyes. The site opened in 1970 and has experienced substantial growth since then.

Beth Earnst, Performance Coatings Kristyn Godlew, North America Communications Alison Kalantzis, North America Communications George Nolan, North American Communications Director Alison Ohlhoff, AO Communications Jason Sparks, Surface Chemistry Katie Whalen, North America Communications

Peroxyesters, also known as peresters, are used to manufacture milk jugs, shampoo bottles, shopping bags, food containers and countless other plastic items we use daily. AkzoNobel offers the world’s largest range of peresters.

Art Direction & Design def. design, Amsterdam, the Netherlands Professional photography Thierry Martinez, team AkzoNobel, AkzoNobel Bruce Bennett, Bruce Bennett Photographer Donn Jones, Donn Jones Photography

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About Yvette Yvette Williger leads the North American People Services team (including Payroll, HR Information Systems, Call Center and Benefits Administration) that is now based in Nashville, Tennessee.

Yvette began her career with AkzoNobel nearly 20 years ago as a Benefits Specialist in Chicago. She held positions of increasing responsibility in the years that followed, leading the team that established the first HR Shared Service Center in 2007.

The daughter of firstgeneration Puerto Rican immigrants, Yvette grew up in Chicago. She is married with two teenage sons, and she and her husband plan to permanently relocate to the Nashville area next year.

Striking a new chord in Nashville Yvette Williger, Director, HR Operations, is leading the new People Services team in Nashville, Tennessee, after managing the Chicago team for many years. This experienced change leader talked to OneWorldNA about her new location and team and why she’s committed to AkzoNobel for the long haul.

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ow did you feel about the company’s decision to move the People Services team from Chicago to Nashville?

I’ll admit I didn’t fully embrace the Nashville decision in the beginning. However, I knew it was well thought-out and vetted by leadership at the highest levels of the company, and nothing I could say would halt it. So I figured I could do one of two things: Leave and say goodbye, or stay and see it through. By staying, I had the opportunity to advocate for my employees whose positions were being relocated.

As part of the strategy team, I knew about the change months before it was announced. Living with that information was not easy, but we worked very hard to develop a smooth communication and rollout plan. The Winning Together attitude was incredible.

The day I had to tell the Chicago team that their jobs were moving to Nashville was honestly the most difficult thing I’ve ever had to do in my whole life.

Ultimately you decided to stay with the company and relocate to Nashville. What factors went into this decision?

My husband and I knew we wanted to leave Chicago after our sons moved out, and we had actually talked about moving to Nashville long before this opportunity arose. So when I was offered the chance to stay with the company in Nashville, it was a no-brainer. I’m currently there Monday through Thursday. Our younger son will finish high school this year, and then we’ll make the move permanent in June 2018.

You were appointed as the primary liaison to the Mayor of Nashville for the Human Cities launch there. How do you feel about accepting this high-profile responsibility?

It’s really cool! I was so excited to meet with this mayor who’s done amazing things with this city.

Nashville is transforming and it’s awesome that AkzoNobel is going to be a part of it.

[Read more about the launch of Human Cities in Nashville on page 6.]

Tell us about the new People Services team.

We have a team of 26 people, seven of whom transferred from Chicago. They’re an enthusiastic and eager bunch. Most hadn’t heard of AkzoNobel prior to this, but after learning about what we do, our values and Human Cities, they’re very excited to be a part of this company.

“We’ve gone through some massive change and reductions, yes, but fundamentally this company cares deeply about its employees.”

The process to get them up and running was quite extensive – six months of training and onboarding, including time with the outgoing team in Chicago.

To select these people, train them and then see the new team come to life has been very rewarding.

Where do you want to see People Services go from here?

We still have a long way to go with respect to getting managers comfortable and proficient with the self-service model. We’re putting a lot of effort into training folks and helping them overcome issues they’ve experienced.

And I want to see us continue to take on more work. The administration of Concur is an example.

It had long been the responsibility of Finance, but now it’s coming to us. I thrive on taking something like this, evaluating the root causes of the issues we’re experiencing, and figuring out how we can work more efficiently.

What advice do you have for other women who aspire to become leaders at AkzoNobel?

My advice is if you see a project that excites you, tell someone. Let people know what you want to do. Be open to opportunities and challenges. When extra work starts coming your way, it’s because people believe in you – don’t shy away from it!

Take it and do it with a smile on your face. You’ll grow and become a bigger, more experienced person in the process.

What do you like most about working for AkzoNobel?

I truly enjoy the people in this company. I’ve made so many friends in all different countries. There’s always something happening, and fortunately, every change has been a success.

AkzoNobel is a company that truly believes in building the folks we have internally. We’ve gone through some massive change and reductions, yes, but fundamentally this company cares deeply about its employees.

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Volvo Ocean Race Fast Facts

The challenges ahead A Race around the world’s oceans is not to be taken lightly. The crews will cross some of the most remote and inhospitable sections of ocean and deal with massive extremes of weather.

During stopovers, expert technical shore crews meticulously overhaul, repair and prepare the boats for the next leg, much like the pit lane crew in NASCAR.

AkzoNobel sets sail with the Volvo Ocean Race A global platform offers us the opportunity to build our brands and engage with our customers

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reparations for the 2017-18 Volvo Ocean Race, the world’s premier offshore sailing Race, are in full swing as the October start date of the 13th edition fast approaches.

AkzoNobel is sponsoring a team in the 2017-18 Race as part of a strategic partnership to raise global awareness of our brands and expertise and to engage in projects with local communities in the stopover cities.

“Our participation in the Race reflects many of our company’s activities, from the salt we produce that is used in the production of the carbon used throughout the boat, to our yacht and marine coatings that are well-known around the world,” said Bill Collins, Interim Head of Performance Coatings.

“This will also offer opportunities for product innovation and to demonstrate our commitment to sustainability.”

Held every three years since 1973, the Volvo Ocean Race – the world’s longest sporting event – is a grueling test of team and individual endurance.

Beginning in Alicante, Spain, on Oct. 22, up to eight international teams are expected to compete in the Race that will cross four oceans and stop at 11 major cities before finishing in the Netherlands eight months later.

Renowned Dutch yachtsman Simeon Tienpont will lead team AkzoNobel, which features top-tier sailors

from seven nations aboard a brand new Volvo Ocean 65 high-performance yacht.

will represent AkzoNobel as one of the keynote speakers.

Official coatings supplier and sustainability partner In addition to sponsoring a team, AkzoNobel is serving as the Race’s exclusive coatings supplier.

The yachts vying for the title each feature our Interlux and Awlgrip coatings.

“Our involvement with the Volvo Ocean Race and the participation of team AkzoNobel are a perfect fit with our Planet Possible sustainability strategy,” explained André. “There’s a fundamental link between the sustainability goals of the Race itself and our own efforts to achieve radical resource efficiency.”

“These products will bring color and protection to all the boats in the Race as they sail around the world in extreme conditions,” said John Griffin, Regional Business Director, Specialty Coatings North America.

“Our participation in the Race reflects many of our company’s activities.”

We’re also the 2017-18 Volvo Ocean Race sustainability partner, helping to educate people about reducing single-use plastic use and protecting our oceans. At eight stopovers, Volvo Ocean Race will organize Ocean Summits where influential speakers will take the podium. One of the Ocean Summits will take place at the US stopover in Newport, Rhode Island, where Andre Veneman, AkzoNobel’s Corporate Director of Sustainability,

The kids of Rocking the Boat along with team AkzoNobel and employees studied the effects of heavy rainfall on the water quality of the Bronx River.

Team AkzoNobel visits NYC and Rocking the Boat In July, Skipper Simeon Tienpont and his crew visited New York for a week of customer, media and Human Cities engagements to promote our participation in the Volvo Ocean Race alongside global leaders from Performance Coatings.

Last July, in addition to engaging with employees, meeting key Performance Coatings customers and giving media interviews, the sailing crew spent time with young people at the Bronx, New York-based Rocking the Boat sailing club, an event organized through our Human Cities initiative.

Students at Rocking the Boat work together to build wooden boats, learn to row and sail, and restore local urban waterways – revitalizing their community and creating better lives for themselves in the process. For the past 10 years, AkzoNobel has proudly provided the organization with donations of

US Employee Brand Ambassador Ned Jones (standing) talked with the kids about the importance of promoting the sustainability of our oceans, and taught sailing skills during a fun on-water competition.

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NA Team AkzoNobel Skipper Simeon Tienpont is a twotime America’s Cup winner.

The 2017-18 course features approximately 3x more racing in the remote expanses of the Southern Ocean than past editions of the Race.

The 2017-18 Race will be contested over the longest distance in Race history, covering more than 45,000 nautical miles and touching six continents.

Students learn about AkzoNobel’s Human Cities initiative and enjoy a day with our professional sailing team and employees.

Team AkzoNobel took in the spectacular views of Manhattan’s skyline, including the Brooklyn Bridge where our unique Protective Coatings materials protect the iconic structure.

AkzoNobel volunteers work together at a boat-building station, fashioning four ash oars for every Rocking the Boat boat.

Interlux to coat their vessels. AkzoNobel also donated four Hobie jib kits to Rocking the Boat, which includes new hardware and sails for the kids’ sailboats.

The Rocking the Boat visit gave team AkzoNobel crew the chance to share some expert sailing tips, take part in a painting workshop and get out on the water with the students.

“I always look forward to opportunities like this,” said Simeon, the team AkzoNobel skipper. “It allows

us to break away, connect with kids to talk about sailing and how the qualities you develop through sailing can help to enrich your life.”

“The power to inspire and empower young people to become leaders in their communities and responsible adults is at the heart of our Human Cities initiative,” said Bill. “We applaud the powerful mission of Rocking the Boat and their commitments to helping their kids have a greater sense of selfworth and purpose while promoting sustainability education and life skills.”

“We’re taking kids who had a basic education on boat building and bringing them to the next level, where they could actually make a career out of it,” said Ned. Ben Mitchell, Regional Sales Manager of Metal Coatings/Sales Extrusion will also serve as a US Employee Brand Ambassador for team AkzoNobel.

To keep up to date with Race happenings, visit www.teamAkzoNobel.com or connect with team AkzoNobel on social media:

Ned Jones, a US Employee Brand Ambassador for team AkzoNobel in the Volvo Ocean Race and Sales Representation of Specialty Coatings/Yacht, proudly remarked that the Rocking the Boat Human Cities activation was a perfect match to showcase our products and support for the community.

teamAkzoNobel teamAkzoNobelSailing teamAkzoNobel

ideo: Watch the moving story of team v AkzoNobel visiting Rocking the Boat

2017-18 Route Guangzhou

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Gothenburg Cardiff

Hong Kong Lisbon

SAR CHN

Newport

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Melbourne

Auckland

AUS

GBR

USA

Itajaí

RSA Cape TownCape Town

SWE

BRA

NZL

The Hague

Start

Port

Alicante

Lisbon

Cape Town

Melbourne

Hong Kong

Guangzhou

Hong Kong

Auckland

Itajaí

Newport

Cardiff

Gothenburg

The Hague

Race Village Opens

11 Oct 2017

31 Oct 2017

24 Nov 2017

27 Dec 2017

17 Jan 2018

31 Jan 2018

17 Jan 2018

24 Feb 2018

05 Apr 2018

08 May 2018

27 May 2018

14 Jun 2018

24 Jun 2018 30 Jun 2018

27 Jan 2018

03 Feb 2018

27 Jan 2018

10 Mar 2018

20 Apr 2018

19 May 2018

08 Jun 2018

17 Jun 2018

Leg Start

22 Oct 2017

05 Nov 2017

10 Dec 2017

02 Jan 2018

01 Feb 2018*

05 Feb 2018*

07 Feb 2018

18 Mar 2018

22 Apr 2018

20 May 2018

10 Jun 2018

21 Jun 2018

Racing to

In-Port Race

Lisbon

14 Oct 2017

Cape Town

03 Nov 2017

Melbourne

08 Dec 2017 Hong Kong

Guangzhou

Hong Kong

Auckland

Itajaí

Newport

Cardiff

Gothenburg

The Hague

Distance

700 NM

7,000 NM

6,500 NM

6,000 NM

100 NM

100 NM

6,100 NM

7,600 NM

5,700 NM

3,300 NM

1,300 NM

700 NM

*Leg 5: Hong Kong - Guangzhou - Hong Kong

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Finish

Total distance: 45,000 NM

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Human Cities arrives in Nashville $100K grant will support Mayor’s Youth Council – which funds scholarships and sustainable civic improvement projects – while raising brand awareness in Tennessee

Yvette Williger (bottom right) poses with Mayor Megan Barry (center), Oasis Center CEO Tom Ward (left of Mayor Barry) and young adults from Oasis programs during the presentation of a $100,000 Human Cities grant to Nashville’s Oasis Center.

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he city and youth of Nashville are the latest beneficiaries of our Human Cities community investment program. In May, Nashville colleagues joined Mayor Megan Barry and representatives from the Oasis Center to announce a new Human Cities partnership that includes a $100,000 grant to support the Mayor’s Youth Council. The grant will help fund student-led civic improvement projects around the city and provide up to 10 academic scholarships for Nashville youth.

“We appreciate organizations like AkzoNobel taking an active role in improving our city,” says Mayor Barry. “This grant provides much needed funds for sustainable infrastructure improvement. The AkzoNobel Human Cities scholarship will also help us to develop the future leaders of Nashville by providing resources for our students to pursue higher education.”

“We’re proud of our heritage in Nashville, which dates back to 1947,” says Nashville-based Yvette

Williger, People Services Leader. “This Human Cities grant is another way for us to demonstrate our commitment to this city and its people.”

The Mayor’s Youth Council is composed of top students from public, private and charter schools throughout Nashville. Members of the Council are involved in student-led programs via the city’s Oasis Center, a non-profit organization whose mission is to train the next generation of leadership in the city through community service and positive action.

“The AkzoNobel Human Cities grant will give us the opportunity to have a greater impact on the city,” affirms Tom Ward, President and CEO of the Oasis Center.

Funds from the Human Cities grant will be allocated over the next two years. As part of the partnership, AkzoNobel will help determine the sustainability projects the students activate, and Nashville colleagues will volunteer alongside students to complete these projects.

Two chemicals sites win Caring for Texas award

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he global Business Services (GBS) Leadership Team (LT) gave Nashville employees a big surprise during their recent visit to the site. As gratitude for the hard work and collaboration demon­strated over the last six

Painting the town in Nashville O months to create the new GBS Shared Service Center at the site, the LT announced they were having the 140-foot exterior warehouse wall painted with the Nashville skyline, incorporating the AkzoNobel “look and pride” graphic

scheme. The wall has since been completed, and visitors from across the city are stopping by to see it and take photos – a phenom­enon that is happening with other murals that are popping up across Nashville.

ur Polymer Chemistry sites in Battleground and Pasadena, Texas, recently received the 2017 Excellence in Caring for Texas award from the Texas Chemical Council, recognizing their exemplary achievements in safe plant operation and commitment to their employees and surrounding communities.

Left to right: Allen Tribble, Battleground Site Director; Brad Lutter, Regional Manufacturing Director – Americas; Blake Whitlow, Pasadena Site Director; Erin Martinez, Pasadena Site Controller; and Quinn Alexander, Regional Environmental Manager.

Surface Chemistry is EPA’s ‘Safer Choice Partner of the Year’

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he US Environmental Protection Agency (EPA) has named our Surface Chemistry business a 2017 “Safer Choice Partner of the Year” in recognition of our proactive support of Safer Choice, a 20-year program that aims to safeguard human and environmental health by promoting safer chemistry and products.

Surface Chemistry was recognized in the Innovator category, thanks in large part to the development of Berol® DR-B1, a surfactant that meets the

EPA’s stringent requirements for direct release into the environment.

“The EPA is constantly reviewing Safer Choice products and raising the standards, and a lot of competitors have stopped trying to meet these standards,” says Butch Dery, Technical Service and Product Development Manager. “But we’ve shown that if you build a cleaning formulation based on this technology, you end up with something that can be cost competitive, performance competitive and safer as well.”

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Houston lab serving customers

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he $3.5 million expansion of our US research and development facilities in Houston, Texas – carried out over the past three years – is now up and running in support of our Protective Coatings, Marine Coatings and Specialty Coatings businesses.

“Our new state-of-the-art research and development facilities in Houston enhance our unique capability to develop and deliver specific products and innovations for North America,” says Steve Feldman, Vice President for Protective Coatings North America. “Our development capabilities are now second to none.”

Houston lab employees pose together at the official opening of the newly expanded RD&I facility that will support our Protective Coatings, Marine Coatings and Specialty Coatings businesses.

SkillsUSA sponsorship helps develop new talent

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tudent automotive refinish painters showed off their skills in a week-long competition sponsored by AkzoNobel and other industry partners. The annual SkillsUSA® Championships are competitive events showcasing the best career and technical education students in the nation in 100 different fields ranging from HVAC and carpentry, to culinary arts and aviation maintenance. SkillsUSA is a partnership of students, teachers and industry working together to ensure America has a skilled workforce by providing educational programs, events and competitions that support career and technical education in the nation’s classrooms. AkzoNobel

Student award recipients stood proud after being recognized for their academic achievements.

Michigan youth earn Human Cities scholarships

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n May, six students from Leaders of the Future, a Michigan-based youth leadership incubator that is revitalizing the city of Pontiac through community service, received $25,000 in scholarships from AkzoNobel to help them achieve their academic and career goals.

designed the trailer that housed the painting competition, and donated $80,000 toward its manufacture.

Student automotive refinishers compete in a competition sponsored by AkzoNobel.

The scholarships were the first to be awarded as part of a $100,000 Human Cities grant to Leaders of the Future that we announced late last year. In addition to the scholarship program, the grant will support community improvement programs that the group activates around the city over the next two years.

Bill Slama enjoys his anniversary luncheon with colleague Kim Stehura, with whom he’s worked for 32 of his 55 years in Berea, Ohio.

Coatings colleague honored by Canadian group The Canadian Paint and Coatings Association (CPCA) in May recognized Protective Coatings’ Sheri Oberle with an Industry Achievement award for her exceptional achievement in advancing the interests of the industry. Sheri is a Regulatory Specialist for our Marine, Protective Coatings and Yacht businesses. She leads the Houston-based team that handles product compliance, serves as chair of the AkzoNobel North American Regulatory Affairs group and is a member of CPCA’s Paint and Coatings Working Group.

5 ½ decades with AkzoNobel

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ome people retire when they’re 55, but colleague Bill Slama has actually been working that long at our Berea, Ohio, Protective Coatings facility. In June, Bill marked his 55th anniversary with AkzoNobel and received a special

certificate from former CEO Ton Büchner. Bill began his AkzoNobel career in June 1962 as an R&D manager with what was then the Ceilcote company. It was his first job out of college. In the years since, Bill has held many different technical

positions and has served on several industry committees. Today he’s a technical support representative known as the Ceilcote and Power Industries expert among his Protective Coatings and industry colleagues. Congratulations to Bill!

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Wood Coatings experts shine at color-trend event Design and styling experts from our Wood Coatings business hosted a special trend presentation for attendees of the International Home Furnishings Market in High Point, North Carolina, further advancing our influence and leadership in the home-furnishings industry.

Our Industry Design Pulse event showcased the latest industry color and styling developments in the

wood industry and gave attendees a view of the latest color trends, including updated looks of AkzoNobel’s 2017 Color of the Year Denim Drift and the Wood Coatings team’s interpretation of Denim Wash.

“We were proud to host customers from around the world, share our color styling trend information and collaborate with them on new finishes for their products,” says Bob Averett, Wood Coatings Color Marketing Manager.

Approximately 200 global industry leaders, representing the four major wood industry segments – furniture, cabinetry, building products and flooring – attended the event.

“Through color study, monitoring trends and observing how design lifestyles influence color, we can support our customers with unique wood finishes and techniques that are reproducible in

their factories,” says Rob Haley, Wood Coatings Color Trends Manager.

Our Wood Coatings business is the recognized leader in identifying finishing trends for home furnishings.

The High Point-based team takes trends from concept to production, working with furniture manufacturers from around the world – including well-known brands like Crate & Barrel, Restoration Hardware, Lexington Home Brands and La-Z-Boy.

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arket, as it’s known in the industry, is the biannual, weeklong gathering that attracts thousands of furniture buyers and manufacturers from around the world to preview the latest offerings from homefurnishing designers and manufacturers.