As a result of the ‘Fast Close Project’, in line with the presentation of the annual results last week, the Annual Report is available three weeks earlier than two years ago.
Corporate Governance reviewed
Public debate about the role and behavior of listed companies has placed new emphasis on the position, powers and responsibilities of the Board of Management, the Supervisory Board, and others involved in Akzo Nobel. Pursuant to the U.S. Sarbanes-Oxley Act and the new Dutch Corporate Governance Code (Code Tabaksblat), Akzo Nobel has revised its procedures for internal control, auditor independence and external disclosure.
Remuneration information extended
Already in 1999, Akzo Nobel began publishing extensive information about the remuneration of the Board of Management and the Supervisory Board, including details about salaries, bonuses, pensions, stock options and shares. The 2003 Annual Report gives more remuneration details than ever before.
The Akzo Nobel Board of Management has established medium-term financial targets for Akzo Nobel’s businesses. Pharma’s medium-term Return On Sales target is 17.5%, while the long-term target remains 20%. Pharma Return On Investment target is 35% (long-term 40%). The medium-term ROI target for Coatings has been set at 25%, climbing in due course to around 30%. The overall Chemicals ROI target is 17.5% over the cycle.
Implementation of IFRS
In June 2002, the European Commission decided that all listed companies in the EU should apply International Financial Reporting Standards (IFRS) in their financial statements from 2005 onwards. As a consequence, Akzo Nobel will report in accordance with IFRS starting first quarter 2005. This year, necessary changes in financial reporting and consolidation systems will be finalized and the comparative figures for 2003 and 2004 will be restated.
Our Safe Harbor Statement applies to this press release.
Corporate Media Relations: tel. +31 26 366 4343