Akzo Nobel N.v. · EURONEXT:AKZA
Akzo Nobel — Q1 2007 Earnings Presentation
22 slides from Akzo Nobel's earnings presentation, Apr 24, 2007
Slide 1: Q1 2007 Results: Fit for the future
Rob Frohn, CFO Q1 2007 Results “Fit for the future” April 24, 2007
Slide 2: Q1 2007 highlights – strong quarter for refocused company
Q1 2007 highlights – strong quarter for refocused company Autonomous growth of Coatings/ Chemicals 6% EBITDA up 10% to 307 million Net income EUR 246 million EUR 11 billion cash deal for Organon BioSciences announced EUR 1.6 billion share buyback starting May 3, 2007
Slide 3: Q1 Operational Performance
AKZO NOBEL Q1 OPERATIONAL PERFORMANCE
Slide 4: Excellent operational performance of the new Akzo Nobel
Excellent operational performance of the new Akzo Nobel EUR mln Q1 2007 ∆% Revenues Coatings/Chemicals 2,501 1 EBITDA* Coatings/Chemicals 307 10 EBIT* Coatings/Chemicals 219 18 Net income* Coatings/Chemicals 133 18 Ratio Coatings/Chemicals 2007 2006 EBITDA margin*, in % 12.3 11.3 EBIT margin*, % 8.8
Slide 5: Coatings – Sikkens Rubbol XD
® Coatings – Sikkens Rubbol XD
Slide 6: Coatings – higher EBITDA margin on 8% growth
Coatings – higher EBITDA margin on 8% growth Revenues up driven by 8% autonomous growth Acquisitions adding 4% offset by currencies EBITDA up 11% European business improving; strong growth in emerging markets Continued raw material price pressure – particularly in industrial businesses
Slide 7: Coatings – higher margins on strong revenues growth
Coatings – higher margins on strong revenues growth Decorative Coatings – promising start, better European conditions – review roadmap for further improvement Industrial activities – solid results Marine & Protective – driven by Aerospace and Protective Car Refinishes – strong performance in
Slide 8: Coatings – healthy growth, acquisitions contributing
Coatings – healthy growth, acquisitions contributing EUR mln Q1 2007 ∆% Revenues 1,554 8 EBITDA* 153 11 EBIT* 117 13 Ratio 2007 2006 EBITDA margin*, in % 9.8 9.6 EBIT margin*, % 7.5 7.3 * Before incidentals.
Slide 9: Chemicals: Woodchips as fuel
Chemicals: Woodchips as fuel
Slide 10: Chemicals – strong EBITDA margin on 4% growth
Chemicals – strong EBITDA margin on 4% growth Autonomous growth of 4%; negative currency impact of 2% Strong margin management contributed to higher EBIT EBITDA margin of 17.9% Raw materials and energy pressure successfully countered Strong performance across all business areas
Slide 11: Chemicals – solid performance
Chemicals – solid performance Pulp & Paper Chemicals – solid results on higher prices in bleaching chemicals – benefit from hydrogen peroxide JV in U.S. Base Chemicals – robust performance Chlor Alkali Functional Chemicals – good start, production issue resolved Surfactants – higher on stron
Slide 12: Chemicals – solid performance
Chemicals – solid performance EUR mln Q1 2007 ∆% Revenues 917 1 EBITDA* 164 1 EBIT* 115 6 Ratio 2007 2006 EBITDA margin*, in % 17.9 17.9 EBIT margin*, % 12.5 11.8 *Before incidentals.
Slide 13: Organon BioSciences – good quarter
Organon BioSciences– good quarter EUR mln Q1 2007 ∆% Revenues 920 - EBIT* 147 4 Ratio 2007 2006 EBIT margin*, in % 16.0 15.4 S&D in % revenues 29.6 29.7 R&D in % revenues 15.4 16.5 * Before incidentals.
Slide 14: Organon BioSciences – good quarter
Organon BioSciences – good quarter Organon strong performance of key products, 4% autonomous growth Operating income Organon before incidentals EUR 84 million Record quarter for Intervet; EBIT margin of 21.7% 12% autonomous growth at Intervet
Slide 15: Q1 Financial Performance
AKZO NOBEL Q1 FINANCIAL PERFORMANCE
Slide 16: Strong financial position further improved
Strong financial position further improved End March ’07/ End ‘06, EUR mln 2007 2006 Equity 4,513 4,263 Net borrowings 955 1,090 Gearing (ratio) 0.21 0.26 Q1 ratios 2007 2006 Interest coverage 7.9 6.8
Slide 17: Share buyback
Share buyback EUR 1.6 billion share buyback program Open market program Commencing May 3, completion expected by end 2007 Subject to shareholder approval, shares will be cancelled
Slide 18: Agenda 2007
AKZO NOBEL AGENDA 2007
Slide 19: Agenda 2007
Agenda 2007 Accelerate growth across portfolio Improve margins in mature markets Active consolidator in a financially disciplined manner Transfer of Organon BioSciences
Slide 20: Positive for 2007
Positive for 2007 Well positioned for profitable growth Outgrow our markets and improve financial returns
Slide 21: Q1 2007 Results Q&A
Q1 2007 Results “Strong quarter for the new Akzo Nobel” Q&A April 24, 2007
Slide 22: Safe Harbor Statement
Safe Harbor Statement* This presentation contains statements which address such key issues as Akzo Nobel’s growth strategy, future financial results, market positions, product development, pharmaceutical products in the pipeline, and product approvals. Such statements should be carefully considered,