Akzo Nobel N.v. · EURONEXT:AKZA
Akzo Nobel — Q1 2009 Earnings Presentation
23 slides from Akzo Nobel's earnings presentation, Apr 23, 2009
Slide 1: Q1 2009 results
April 23, 2009 Q1 2009 results
Slide 2: Agenda
Agenda 1. Highlights and operational review 2. Financial review 3. Outlook and medium term targets
Slide 3: Highlights and operational review Q1 2009
Highlights and operational review Q1 2009 • Revenue declined 13 percent to €3,272 million • Volume decline evident in all three business areas, in all geographies • Some stabilization seen in trading conditions in March • EBITDA margin at 9.0 percent, EBITDA 33 percent lower at €296 million • Net lo
Slide 4: Q1 2009 revenue
Q1 2009 revenue € mln Q1 2009 Δ% Revenue constant currencies 3,334 (11) Revenue reported 3,272 (13) Revenue development Q1 2009 vs. Q1 2008 -1 -3 -5 -7 -13% -9 -17% +1% -11 -2% -13 +5% -15 -17 Volume Price Acquisitions/ Currency Total divestments Increase Decrease Q1 2009 results 4
Slide 5: Q1 2009 results
Q1 2009 results € mln Q1 2009 Δ% EBITDA* constant currencies 304) (31) EBITDA* reported 296) (33) Net income before FVA** 28) Net income total operations (7) Ratio Q1 2009 2008 EBITDA* margin reported (%) 9.0) 11.7) EPS (in €) (0.03) 0.40) * Before incidentals ** Net income from continuing operation
Slide 6: Incidentals
Incidentals € mln Q1 2009 Q1 2008 Restructuring charges (47) (30) Transformation costs (8) (84) Charges related to major legal, 6) (1) Antitrust & environmental cases Results on acquisitions & divestments 9) 5) Fair value adjustments on inventories –) (54) Total (40) (164) • Legal and other cases –
Slide 7: Restructuring and ICI integration at an advanced stage
Restructuring and ICI integration at an advanced stage 2008 and Q1, 2009 ICI Additional Total integration restructuring Net FTE 750 1,300 2,050 reductions* Cash costs 96 103 199 (€ million) Annualized savings 137 67 204 (€ million) We will continue to pursue efficiency improvements: • Site rationali
Slide 8: Operational review Decorative Paints
Operational review Decorative Paints Q1 2009 results 8
Slide 9: Decorative Paints highlights
Decorative Paints highlights • Global economic downturn continued to impact decorative paint market • Volumes were down by 16 percent, partly compensated by margin management • ICI integration savings continue ahead of plan • European volumes were down substantially • UK retail market showed resilie
Slide 10: Decorative Paints Q1 2009
Decorative Paints Q1 2009 € mln Q1 2009 Δ% Revenue constant currencies 1,044 (8) Revenue reported 1,015 (11) EBITDA* constant currencies 61 (41) EBITDA* reported 50 (51) Ratio, % Q1 2009 Q1 2008 EBITDA* margin reported 4.9 9.1 Revenue development Q1 2009 vs. Q1 2008 4 -1 +1% -3% -11% -6 -16% -11 +7%
Slide 11: Operational review Performance Coatings
Operational review Performance Coatings Q1 2009 results 11
Slide 12: Performance Coatings highlights
Performance Coatings highlights • Revenue decreased by 14 percent • EBITDA margin was 10.7 percent • Marine & Protective Coatings continued to show solid performance • The industrial activities experienced the full effect of the economic downturn • Margin management partly compensated for volume dec
Slide 13: Performance Coatings Q1 2009
Performance Coatings Q1 2009 € mln Q1 2009 Δ% Revenue constant currencies 977 (13) Revenue reported 968 (14) EBITDA* constant currencies 102 (23) EBITDA* reported 104 (21) Ratio, % Q1 2009 Q1 2008 EBITDA* margin reported 10.7 11.8 Revenue development Q1 2009 vs. Q1 2008 0 -5 -14% -10 -20% +1% -1% -1
Slide 14: Operational review Specialty Chemicals
Operational review Specialty Chemicals Q1 2009 results 14
Slide 15: Specialty Chemicals highlights
Specialty Chemicals highlights • Revenue decreased 11 percent, with volumes down 16 percent • Volume declines across all businesses, but most prominent in Surface Chemistry and Polymer Chemicals • Acquisitions contributed 4 percent to revenue • EBITDA margin was 12.2% • National Starch results were
Slide 16: Specialty Chemicals Q1 2009
Specialty Chemicals Q1 2009 € mln Q1 2009 Δ% Revenue constant currencies 1,317 (9) Revenue reported 1,293 (11) EBITDA* constant currencies 157 (35) EBITDA* reported 158 (35) Ratio, % Q1 2009 Q1 2008 EBITDA* margin reported 12.2 16.6 Revenue development Q1 2009 vs. Q1 2008 4 -1 -6 +4% -11% -16% +3% -
Slide 17: Financial review
Financial review
Slide 18: Strong balance sheet maintained
Strong balance sheet maintained € mln Mar 31, 2009 Dec 31, 2008 Equity 8,215 7,913 Net debt 2,508 2,084 € mln Q1 2009 Q1 2008 Net cash from operating activities (316) (292) • Equity impacted by currency translation (US $, £) • Net debt increased due to increased working capital • Net cash from opera
Slide 19: Strong liquidity headroom
Strong liquidity headroom €1.0 billion bond maturing in May 2009 already refinanced Debt maturity, € million 1,200 800 400 0 2009 2010 2011 2012 2013 2014 2015 2016 € bonds $ bonds GBP bonds Maturity profile of debt book lengthened • Undrawn revolving credit facility of €1.5 billion available (2013)
Slide 20: Medium-term targets
Medium-term targets
Slide 21: Well positioned to meet current challenges
Well positioned to meet current challenges Sound fundamentals • Strong positions in diverse, highly attractive sectors • Attractive geographic spread • Strong balance sheet Actions • Significant level of additional restructuring • Rigorous cost management • Prudent capital allocation without jeopard
Slide 22: Outlook and medium term targets
Outlook and medium term targets • Global market conditions and lack of visibility do not allow certainty. Nevertheless, we remain focused on: • working towards our medium-term target of an EBITDA margin of 14 percent by the end of 2011 • delivering the €340 million ICI synergies faster • driving mar
Slide 23: Safe Harbor Statement
Safe Harbor Statement This presentation 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 be