Akzo Nobel N.V. · EURONEXT:AKZA
Akzo Nobel — Shareholder Meeting (April 2007)
26 slides from Akzo Nobel's shareholder meeting presentation, Apr 25, 2007
Slide 1: Annual General Meeting of Shareholders
Hans Wijers, CEO Annual General Meeting of Shareholders April 25th, 2007
Slide 2: 237% Total Shareholder Return since May 2003
237% Total Shareholder Return* since May 2003 EUR TSR 24/04/07 59 01/05/03 20 Source: Bloomberg *Total Shareholder Return = ∆ shareprice and distributed dividends
Slide 3: Consistent focus on medium-term value creation
Consistent focus on medium-term value creation “Fixed” Pharma Refocused Chemicals portfolio Turned around Car Refinishes, preparing roadmap for Decorative Coatings Unlocking Pharma value through separation via Schering-Plough deal Step by step building “New Akzo Nobel” organization
Slide 4: Proposed OBS transaction on track
Proposed OBS transaction on track Offers exciting future for OBS with major Pharma player Subject to consultation with social partners and regulatory clearance High degree of closing certainty Closing expected in second half 2007
Slide 5: Evaluation of growth opportunities with continued focus on medium-term value creation
Evaluation of growth opportunities with continued focus on medium-term value creation Undertaken in the context of pending OBS sale Accelerating profitable investments and strategic acquisitions throughout portfolio Disciplined approach focused on medium-term value creation Yesterday announc
Slide 6: 2006 Operational Performance
2006 OPERATIONAL PERFORMANCE
Slide 7: Record year: Net income EUR 1.15 billion
Record year: Net income EUR 1.15 billion Revenues up 6% Growth driven by Organon and Coatings Operational results up 14% Incidentals positive EUR 152 million Record net income - up 20%
Slide 8: Strong operational performance
Strong operational performance Organon – 8% revenue growth; EBIT up 34% Intervet – autonomous growth of 6% Coatings – strong revenue growth of 12%; EBIT up 22% Chemicals – autonomous growth of 5%; steady EBIT at high performance level
Slide 9: Record net income
Record net income EUR mln 2006 ∆% Revenues 13,737 6 EBIT before incidentals 1,310 14 Net income 1,153 20 Ratios 2006 2005 EBIT margin, % 9.5 8.9 EPS, EUR 4.02 3.36 Number of employees 61,880 61,340
Slide 10: Organon – revenues up 8%; EBIT up 34%
Organon – revenues up 8%; EBIT up 34% Revenues – up 8% to EUR 2.6 billion EBIT up 34% despite higher marketing and R&D spend Fertility products Puregon® / Follistim® – record year NuvaRing® – sales and market share increase continues Asenapine – Organon continues with development
Slide 11: Organon – turnaround takes hold
Organon – turnaround takes hold EUR mln 2006 ∆% Revenues 2,611 8 EBIT before incidentals 362 34 Ratios 2006 2005 EBIT margin, % 13.9 11.1 S&D % revenues 32.2 32.9 R&D % revenues 18.6 17.9
Slide 12: Intervet – outperforming the market
Intervet – outperforming the market Revenues – 6% autonomous growth North American revenues – sharp increase of 12% EBIT margin of 18.9% Approvals received for Zilmax® and PreveNile® Continued focus on companion animal platform
Slide 13: Intervet – strong autonomous growth
Intervet – strong autonomous growth EUR mln 2006 ∆% Revenues 1,125 6¹ EBIT before incidentals 213 2 Ratios 2006 2005 EBIT margin, % 18.9 19.1 S&D % revenues 24.8 24.2 R&D % revenues 9.7 10.3 1) autonomous growth
Slide 14: Coatings – Portofino and Sikkens
Coatings – Portofino and Sikkens®
Slide 15: Coatings – strong 12% revenue growth
Coatings – strong 12% revenue growth Revenue growth of 12% 4% of revenue growth driven by acquisitions EBIT before incidentals up 22% Ramping up savings from restructuring in mature markets Ongoing acquisitions and investments
Slide 16: Coatings – consolidating world leader position
Coatings – consolidating world leader position EUR mln 2006 ∆% Revenues 6,209 12 EBIT before incidentals 518 22 EBITDA 658 18 Ratios 2006 2005 EBIT margin, % 8.3 7.6 EBITDA margin, % 10.6 10.0
Slide 17: Chemicals – Focus on Pulp & Paper
Chemicals – Focus on Pulp & Paper
Slide 18: Chemicals – 5% autonomous growth, steady EBIT
Chemicals – 5% autonomous growth, steady EBIT Revenues of ongoing operations up 5% Operating income on par with 2005 Performance impacted by start-up production issues at Functional Chemicals EBIT margin up to 9.2%
Slide 19: Chemicals – steady EBIT at high performance level
Chemicals – steady EBIT at high performance level EUR mln 2006 ∆% Revenues ongoing operations 3.502 5 EBIT before incidentals 351 - EBITDA 572 (3) Ratios 2006 2005 EBIT margin, % 9.2 9.0 EBITDA margin, % 15.0 15.2
Slide 20: 2006 Financial Performance
AKZO NOBEL 2006 FINANCIAL PERFORMANCE
Slide 21: Strong cash flow – cash from operations up EUR 0.5 billion
Strong cash flow – cash from operations up EUR 0.5 billion Year end; EUR bln 2006 2005 Cash generated from operations 1.9 1.4 Net change in cash 0.4 (0.4) Equity 4.3 3.6 Net debt 1.1 1.6 Dividend, in EUR 1.20 1.20
Slide 22: Q1 2007 Highlights
AKZO NOBEL Q1 2007 HIGHLIGHTS
Slide 23: Q1 2007 – strong quarter for refocused company
Q1 2007 – strong quarter for refocused company Autonomous growth of Coatings / Chemicals 6% EBITDA up 10% to EUR 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 24: 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 25: 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 26: HQ relocation: step by step building a new Akzo Nobel
HQ relocation: step by step building a new Akzo Nobel Slide about the move to Amsterdam to be provided by ACC