Akzo Nobel N.v. · EURONEXT:AKZA
Akzo Nobel — Q1 2017 Earnings Presentation
22 slides from Akzo Nobel's earnings presentation, Apr 19, 2017
Slide 1: Investor update Q1 2017
Investor update Q1 2017 April 19, 2017
Slide 2: Agenda
Agenda Q1 2017 Operational review Financial review Conclusion Questions Investor update | Q1 2017 2
Slide 3: Record profitability in Q1 2017
Record profitability in Q1 2017 Investor update | Q1 2017 3
Slide 4: Significant progress continues
Significant progress continues Revenue up 7% EBIT up overall 13% overall and in all and in all Business Volumes Business Areas Areas Up 4% 2% revenue Share Record Q1 development repurchase EBIT, ROS on program in and ROI acquisitions progress
Slide 5: Record profitability in Q1 2017
Record profitability in Q1 2017 Revenue EBIT* (€ million) ROS %** Moving average Net cash from (€ million) ROI %** operating activities 3,430 3,661 14.5 15.2 9.7 10.3 334 376 Q1 2016 Q1 2017 Q1 2016 Q1 2017 Q1 2016 Q1 2017 -336 -287 Q1 2016 Q1 2017 Q1 2016 Q1 2017 *EBIT = Operating income excluding
Slide 6: Revenue and EBIT up in all Business Areas
Revenue and EBIT up in all Business Areas Investor update | Q1 2017 6
Slide 7: Revenue up, mainly due to higher volumes
Revenue up, mainly due to higher volumes € million Q1 2016 Q1 2017 Δ% Revenue 3,430 3,661 7 EBIT (Operating income excluding identified items) 334 376 13 Operating income 357 376 5 Ratio, % Q1 2016 Q1 2017 ROS* 9.7 10.3 Moving average ROI* 14.5 15.2 Revenue development Q1 2017 Increase Decrease 2 -1
Slide 8: Volume growth overall, driven by Decorative Paints and Specialty Chemicals
Volume growth overall, driven by Decorative Paints and Specialty Chemicals Decorative Paints Performance Coatings Specialty Chemicals AkzoNobel 2016 Quarterly volume development in % year-on-year 2017 10 8 6 4 9 5 4 4 6 2 2 2 2 2 1 1 1 3 2 0 1 -1 -2 -2 -4 Quarterly price/mix development in % year-on
Slide 9: Decorative Paints Q1 2017: Positive volumes in all regions
Decorative Paints Q1 2017: Positive volumes in all regions € million Q1 2016 Q1 2017 Δ% Revenue 861 922 7 EBIT (Operating income excluding identified items) 52 77 48 Operating income 52 77 48 Ratio, % Q1 2016 Q1 2017 ROS* 6.0 8.4 Moving average ROI* 12.0 13.8 Revenue development Q1 2017 Increase Dec
Slide 10: Performance Coatings Q1 2017: Growth across a number of segments
Performance Coatings Q1 2017: Growth across a number of segments € million Q1 2016 Q1 2017 Δ% Revenue 1,388 1,471 6 EBIT (Operating income excluding identified items) 186 187 1 Operating income 186 187 1 Ratio, % Q1 2016 Q1 2017 ROS* 13.4 12.7 Moving average ROI* 30.4 28.6 Revenue development Q1 201
Slide 11: Specialty Chemicals Q1 2017: Volumes up in all business units and regions
Specialty Chemicals Q1 2017: Volumes up in all business units and regions € million Q1 2016 Q1 2017 Δ% Revenue 1,206 1,289 7 EBIT (Operating income excluding identified items) 164 176 7 Operating income 164 176 7 Ratio, % Q1 2016 Q1 2017 ROS* 13.6 13.7 Moving average ROI* 16.5 18.1 Revenue developme
Slide 12: Strong financial foundation for growth and value creation
Strong financial foundation for growth and value creation Investor update | Q1 2017 12
Slide 13: Free cash flow continues to improve
Free cash flow continues to improve Q1 2016 Q1 2017 € million EBITDA 487 534 Interest paid -4 -4 Tax paid -37 -88 Changes in working capital, provision* and other -538 -517 Capital expenditures (including intangible assets) -125 -128 Free cash flow, excluding pension top-up payments -217 -203 Pensio
Slide 14: IAS19 pension deficit €0.7 billion
IAS19 pension deficit €0.7 billion Key pension financial assumptions Q1 2016 Q1 2017 Discount rate 2.4% 2.4% Inflation rate 3.0% 3.1% Pension deficit development in Q1 2017 Increase € million Decrease Deficit end Discount Inflation Asset return Deficit end Q4 2016 Top-ups rates on DBO on DBO over P
Slide 15: Further de-risking of pension liabilities including £0.3 billion non-cash buy-ins
Further de-risking of pension liabilities including £0.3 billion non-cash buy-ins* Other post-retirement benefits Other pension plans CPS UK Various activities to reduce liabilities ICI PF UK 100 2 £8.7 billion insurance buy-ins for UK schemes 16 (2014-17). $0.7 billion buy-out relate to a US scheme
Slide 16: Concluding remarks
Concluding remarks Investor update | Q1 2017 16
Slide 17: AkzoNobel and Maersk Line signed a strategic sustainability partnership
AkzoNobel and leading global container shipping company Maersk Line signed a strategic sustainability partnership to reduce carbon emissions per container shipped by 10%
Slide 18: Children in Egypt benefited from school renovation under Human Cities initiative
More than 200 children in Egypt’s 6th of October City benefited from a major renovation of their school’s facilities, organized as part of our Human Cities initiative
Slide 19: Safety in the marine industry to be improved with drone inspection
Safety in the marine industry to be improved after AkzoNobel, oil and gas tanker operator Barrier Group and DroneOps joined forces to develop a drone capable of remotely inspecting enclosed spaces and ballast water tanks
Slide 20: Significant progress continues
Significant progress continues Revenue EBIT up up 7% 13% overall overall Volumes and in all and in all up 4% Business Business Areas Areas Improvement 2% revenue program on development track (deliver on €100 - 200 acquisitions Share Record Q1 million repurchase EBIT, ROS savings) and ROI program exe
Slide 21: Outlook
Outlook We continue to anticipate positive developments for EMEA, North America and Asia, improving during the year, while Latin America is expected to stabilize. Market trends experienced in the second part of 2016, including for the marine and oil and gas industries, are expected to continue durin
Slide 22: 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