Akzo Nobel N.V. · EURONEXT:AKZA
Akzo Nobel — Q1 2008 Earnings Presentation
21 slides from Akzo Nobel's earnings presentation, May 7, 2008
Slide 1: Stable performance in a testing economic environment
Keith Nichols, CFO Q1, May 7, 2008 Stable performance in a testing economic environment
Slide 2: Q1 2008 highlights
Q1 2008 highlights Ongoing trend of underlying growth, in local currencies, in most business areas Autonomous growth of 6 percent offset by currency headwind Stable results in challenging economic environment Earnings per share of continuing operations up 6 percent Total net income €118 mln, up €40
Slide 3: Q1 operational performance
Q1 operational performance Q1 Results 2008 | The new AkzoNobel 3
Slide 4: Stable performance
Stable performance € mln 2008 ∆% Revenue 3,506 1 EBITDA 398 (1) EBIT 257 1 Net income 136 (4) Ratio 2008 2007 EBITDA margin, % 11.4 11.6 EBIT margin, % 7.3 7.3 Earnings per share 0.52 0.49 Continuing operations before incidentals; 2007 pro forma Q1 Results 2008 | The new AkzoNobel 4
Slide 5: Autonomous growth of 6 percent offset by currencies
Autonomous growth of 6 percent offset by currencies % Total Volume Price Currency Acq./div. Decorative Paints (4) (2) 3 (6) 1 Performance Coatings – 2 2 (6) 2 Specialty Chemicals 5 4 7 (6) – AkzoNobel 1 2 4 (6) 1 Versus Q1, 2007 proforma Q1 Results 2008 | The new AkzoNobel 5
Slide 6: Decorative Paints
Decorative Paints Q1 Results 2008 | The new AkzoNobel 6
Slide 7: Decorative Paints
Decorative Paints Strong top-line growth in Asia and Latin America Revenue down 4 percent, impacted by currency effects (-6 percent) US business affected by weak market conditions; US margins improved due to product mix effects and cost control programs EBITDA margin increased to 8.8 percent, ahead
Slide 8: Decorative paints
Decorative paints € mln 2008 ∆% Revenue 1,165 (4) EBITDA 102 3 EBIT 52 16 Ratio, % 2008 2007 EBITDA margin 8.8 8.1 EBIT margin 4.5 3.7 Before incidentals; 2007 pro forma Q1 Results 2008 | The new AkzoNobel 8
Slide 9: Performance Coatings
Performance Coatings Q1 Results 2008 | The new AkzoNobel 9
Slide 10: Performance Coatings
Performance Coatings Autonomous revenue growth of 4 percent 6 percent negative currency impact Slightly lower EBITDA margin of 11.6 percent Marine & Protective Coatings: another strong quarter Industrial Activities affected by weak US market conditions Q1 Results 2008 | The new AkzoNobel 10
Slide 11: Performance Coatings
Performance Coatings € mln 2008 ∆% Revenue 1,096 – EBITDA 127 (5) EBIT 103 (6) Ratio, % 2008 2007 EBITDA margin 11.6 12.2 EBIT margin 9.4 9.9 Before incidentals; 2007 pro forma Q1 Results 2008 | The new AkzoNobel 11
Slide 12: Specialty Chemicals
Specialty Chemicals Q1 Results 2008 | The new AkzoNobel 12
Slide 13: Specialty Chemicals
Specialty Chemicals Strong autonomous growth of 11 percent; negative currency impact of 6 percent Pressure on margins from raw materials and energy compensated by price increases Slightly lower EBITDA margin of 17.1 percent Surfactants, Polymer Chemicals and Chemicals Pakistan leading improvement Q1
Slide 14: Specialty Chemicals
Specialty Chemicals € mln 2008 ∆% Revenue 1,199 5 EBITDA 205 1 EBIT 143 4 Ratio, % 2008 2007 EBITDA margin 17.1 17.8 EBIT margin 11.9 12.0 Before incidentals; 2007 pro forma Q1 Results 2008 | The new AkzoNobel 14
Slide 15: Q1 financial performance
Q1 financial performance Q1 Results 2008 | The new AkzoNobel 15
Slide 16: Strong financial position
Strong financial position € mln March 31, 2008 Dec. 31, 2007 Equity 11,735 12,155 Net debt 3,483 2,832 Q1, € mln 2008 2007 Net cash from operating activities (400) (426) 2007 pro forma Q1 Results 2008 | The new AkzoNobel 16
Slide 17: Share buyback
Share buyback €3 bln share buyback program Open market program Started mid March, completion expected by end Q1/ early Q2 2009 Q1 Results 2008 | The new AkzoNobel 17
Slide 18: Management Agenda 2008
Management Agenda 2008 Outgrow our markets, further improve EBITDA margin Significant progress with integration ICI Capture first round of synergies Divesture of Specialty Starches Remedies divestures Roll out corporate brand program Q1 Results 2008 | The new AkzoNobel
Slide 19: Trading conditions 2008
Trading conditions 2008 AkzoNobel remains confident of outgrowing its markets At least maintaining results in line with 2007. Q1 Results 2008 | The new AkzoNobel 19
Slide 20: Q&A 2008
Q&A 2008 Q1 2008 Results “Stable performance in a testing economic environment” Q&A
Slide 21: Safe Harbor Statement
Safe Harbor Statement This press release contains statements which address such key issues as AkzoNobel’s growth strategy, future financial results, market positions, product development, products in the pipeline, and product approvals. Such statements should be carefully considered, and it should b