Akzo Nobel N.v. · EURONEXT:AKZA

Akzo Nobel — Q3 2007 Earnings Presentation

19 slides from Akzo Nobel's earnings presentation, Oct 23, 2007

  1. Slide 1: Q3 2007 Results: Year of Transformation

    Rob Frohn, CFO Q3 2007 Results “Year of Transformation” October 23, 2007

  2. Slide 2: Q3 2007 highlights – strong performance in transformational year

    Q3 2007 highlights – strong performance in transformational year ƒ Good 5% autonomous growth ƒ Net income before incidentals increased 16% ƒ Recommended cash offer for ICI ƒ Akzo Nobel tops DJSI sustainability ranking ƒ Interim dividend increased to EUR 0.40 per share

  3. Slide 3: Q3 Operational Performance

    AKZO NOBEL Q3 OPERATIONAL PERFORMANCE

  4. Slide 4: Coatings / Chemicals – strong operational quarter

    Coatings / Chemicals – strong operational quarter EUR mln Q3 2007 ∆% Revenues 2,600 2 EBITDA* 333 7 EBIT* 244 11 Net income* 156 16 EPS, in EUR 0.58 23 Q3, % 2007 2006 EBITDA margin* 12.8 12.2 EBIT margin* 9.4 8.6 Moving average ROI 15.6 13.5 * Before incidentals

  5. Slide 5: Car Refinishes – Sikkens Autoclear UV

    Car Refinishes – Sikkens® Autoclear® UV

  6. Slide 6: Coatings – solid performance, EBITDA up

    Coatings – solid performance, EBITDA up EUR mln Q3 2007 ∆% Revenues 1,686 3 EBITDA* 209 7 EBIT* 174 8 Q3, % 2007 2006 EBITDA margin* 12.4 12.0 EBIT margin* 10.3 9.8 Moving average ROI 20.3 20.5 * Before incidentals.

  7. Slide 7: Coatings – solid performance, EBITDA up

    Coatings – solid performance, EBITDA up ƒ Decorative Coatings – bottom line performance significantly improved – ongoing restructuring programs paying off ƒ Industrial activities – sustained performance, despite North America weakness – acquisition Chemcraft completed ƒ Marine & Protective Coatings

  8. Slide 8: Surfactants – the road to China

    Surfactants – the road to China

  9. Slide 9: Chemicals – strong performance; record ROI

    Chemicals – strong performance; record ROI EUR mln Q3 2007 ∆% Revenues 911 5 EBITDA* 152 13 EBIT* 102 26 Q3, % 2007 2006 EBITDA margin*, in % 16.7 15.6 EBIT margin*, % 11.2 9.3 Moving average ROI 21.1 18.5 *Before incidentals.

  10. Slide 10: Chemicals – strong performance; record ROI

    Chemicals – strong performance; record ROI ƒ Pulp & Paper Chemicals – improved pricing drives autonomous growth ƒ Base Chemicals – robust performance due to higher demand and prices ƒ Functional Chemicals – good performance ƒ Surfactants – making progress on roadmap ƒ Polymer Chemicals – in line wit

  11. Slide 11: Organon BioSciences

    AKZO NOBEL ORGANON BIOSCIENCES

  12. Slide 12: Organon BioSciences – good quarter

    Organon BioSciences– good quarter EUR mln Q3 2007 ∆% Revenues 918 2 EBIT* 205 39 Q3, % 2007 2006 EBIT margin*, in % 22.3 16.4 S&D in % revenues 27.3 29.3 R&D in % revenues 15.7 15.5 * Before incidentals.

  13. Slide 13: Organon BioSciences – good quarter

    Organon BioSciences – good quarter ƒ Organon strong performance of key products ƒ Organon operating income before incidentals EUR 117 mln ƒ Record quarter for Intervet – EBIT margin of 26.1% ƒ Profitable new product introductions increased Intervet’s margins ƒ Sales agreement signed with Schering-Pl

  14. Slide 14: Q3 Financial Performance

    AKZO NOBEL Q3 FINANCIAL PERFORMANCE

  15. Slide 15: Robust financial position

    Robust financial position ƒ Strong balance sheet ƒ EUR 1.6 billion share buyback completed ƒ Working capital up – growth and one-off items ƒ Capex EUR 240 mln (2006: EUR 235 mln); 97% of depreciation

  16. Slide 16: Agenda 2007

    AKZO NOBEL AGENDA 2007

  17. Slide 17: Agenda remainder 2007

    Agenda remainder 2007 ƒ Transfer of Organon BioSciences before year-end ƒ Prepare integration of ICI ƒ Calendar: ¾ November 5, 2007 – EGM ¾ March 6, 2008 – Annual Results 2007 ƒ Deliver on 2007 growth and profit improvement objectives

  18. Slide 18: Creating one of the world's leading industrial companies – Q&A

    Creating one of the world’s leading industrial companies Creating one of the world’s leading industrial companies “Year of Transformation” Q&A

  19. Slide 19: 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,

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