AkzoNobel Q4 and Full Year 2011 Media Presentation

740 views

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
740
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
10
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

AkzoNobel Q4 and Full Year 2011 Media Presentation

  1. 1. Hans Wijers, CEO, Keith Nichols, CFOFebruary 16, 2012Press conference Q4 and FY 2011 results
  2. 2. Agenda• Q4 and full year 2011 value and values highlights• Performance improvement program, conclusion and outlook• Q&A Press conference Q4 and FY 2011 results 2
  3. 3. Highlights• 2011 revenue up 7 percent driven by pricing actions to offset raw material price inflation• Weaker end markets and cost inflation impacted results• 2011 EBITDA 9 percent lower at €1,796 million (2010: €1,964 million)• Net income from continuing operations €469 million (2010: €664 million)• Adjusted EPS €2.91 (2010: €3.71)• Total dividend for 2011 €1.45 proposed (2010: €1.40), a 4% increase• Performance improvement program on track* Before incidentals Press conference Q4 and FY 2011 results 3
  4. 4. FY 2011 revenue and EBITDA € million FY 2011 Δ% Revenue 15,697 7 EBITDA* 1,796 (9) Ratio, % FY 2011 FY 2010 EBITDA* margin 11.4 13.4 Revenue development FY 2011 vs. FY 201010 +1% -1% 5 +5% +2% +7% 0 Volume Price/Mix Acquisitions/ Exchange rates Total divestments* Before incidentals Increase Decrease Press conference Q4 and FY 2011 results 4
  5. 5. Q4 2011 revenue and EBITDA € million Q4 2011 Δ% Revenue 3,787 5 EBITDA* 301 (20) Ratio, % Q4 2011 Q4 2010 EBITDA* margin 7.9 10.4 Revenue development Q4 2011 vs. Q4 2010 8 +1% 0% 3 -2% +6% +5% -2 Volume Price/Mix Acquisitions/ Exchange rates Total divestments* Before incidentals Increase Decrease Press conference Q4 and FY 2011 results 5
  6. 6. Achieved price increases have caught upwith raw material price inflationEBITDA* bridge FY 2010 – FY 2011 € million3.5003.0002.5002.0001.500 1,964 1,7961.000 500 0 2010 Currency Volume Price Raw Mix Other 2011 materials* Before incidentals Increase Decrease Press conference Q4 and FY 2011 results 6
  7. 7. Decorative Paints key facts2011• Revenue €5.3 billion• 22,340 employees• EBITDA: €440 million*• 40 percent of revenue from high growth markets• Largest global supplier of decorative paints• Many leading positions, strong brandsSome of our strong brands Revenue by geography 3% 12% Mature Europe Emerging Europe 40% Asia Pacific 20% North America Latin America Other regions 18% 7%* Before incidentals Press conference Q4 and FY 2011 results 7
  8. 8. Decorative Paints Q4 2011 highlights € million Q4 2011 Δ% Revenue 1,204 6 EBITDA* 11 (83) Ratio, % Q4 2011 Q4 2010 EBITDA* margin 0.9 5.5Revenue development Q4 2011 vs. Q4 2010 Increase Decrease10 +1% -1% 5 +4% +6% +2% 0 Volume Price/Mix Acquisitions/ Exchange rates Total divestments• Weaker demand, unfavorable product mix and higher raw material costs, particularly in Europe and North America negatively impacted EBITDA• Stock write-off of €17 million impacted Q4 2011 EBITDA negatively• Further price increases are being implemented* Before incidentals Press conference Q4 and FY 2011 results 8
  9. 9. Pipeline 2012Decorative Paints – Smartphone Color AppsKey Features Customer Benefits• Browse colors • Helps customers picking colors and products• Pick colors from photos • Up-to-date product information for• Access product information professional painters• Create shopping list • Available 24/7, anywhere• Find their nearest store Growth potential • Successfully launched in UK, US, Brazil, China and India • Further roll-outs planned through 2012 Press conference Q4 and FY 2011 results 9
  10. 10. Performance Coatings key facts2011• Revenue €5.2 billion• 21,960 employees• EBITDA: €611 million*• 47 percent of revenue from high growth markets• Leading positions in performance coatings industry• Innovative technologies, strong brandsRevenue by business unit Revenue by geography Marine and Protective 15% Coatings 4% 8% Mature Europe 27% Automotive and 30% Emerging Europe Aerospace Coatings Industrial Coatings 20% Asia Pacific18% North America Powder Coatings Latin America 20% 10% 20% Wood Finishes and Other regions Adhesives 28%* Before incidentals Press conference Q4 and FY 2011 results 10
  11. 11. Performance Coatings Q4 2011 highlights € million Q4 2011 Δ% Revenue 1,326 7 EBITDA* 141 (4) Ratio, % Q4 2011 Q4 2010 EBITDA* margin 10.6 11.9Revenue development Q4 2011 vs. Q4 2010 Increase Decrease +2% 0%83 -2% +7% +7%-2 Volume Price/Mix Acquisitions/ Exchange rates Total divestments• Higher revenue primarily driven by pricing• Margins impacted by higher raw material cost• Integration of acquired activities offset volume decline in Q4* Before incidentals Press conference Q4 and FY 2011 results 11
  12. 12. Pipeline 2012Aerospace Coatings - Aerobase CoatingSystemKey features Customers benefits• A high quality ‘wet look’ exterior • Significantly reduced down-time of aircraft coating for commercial aircraft • Reduced cost of painting• More durable, with greater protection • Extended in-service life• Lower emissions & less waste Growth potential • In use by Airbus in Q1 2012 • 6500 aircrafts expected in next 5 years • 5% increase in narrow body production at Airbus will bring higher paint volume sales • To be rolled out to the Maintenance, Repair and Overhaul market in Q3 2012 Press conference Q4 and FY 2011 results 12
  13. 13. Specialty Chemicals key facts2011• Revenue €5.3 billion• 11,520 employees• EBITDA: €906 million*• 33 percent of revenue from high growth markets• Major producer of specialty chemicals• Leadership positions in many marketsRevenue by business unit Revenue by geography Functional Chemicals 6% 9% 2% Mature Europe 17% Industrial Chemicals 35% Emerging Europe 20% 43% Pulp and Paper Asia Pacific Chemicals North America 21% Surface Chemistry Latin America Other Regions 21% Chemicals Pakistan 22% 4%* Before incidentals Press conference Q4 and FY 2011 results 13
  14. 14. Specialty Chemicals Q4 2011 highlights € million Q4 2011 Δ% Revenue 1,285 2 EBITDA* 207 (6) Ratio, % Q4 2011 Q4 2010 EBITDA* margin 16.1 17.6 Revenue development Q4 2011 vs. Q4 2010 Increase Decrease 5 0% +1% +2% 0 -4% +5% -5 Volume Price/Mix Acquisitions/ Exchange rates Total divestments• Higher revenue primarily driven by pricing• Q4 showed lower volumes in most segments, due to lower demand and customer stock control* Before incidentals Press conference Q4 and FY 2011 results 14
  15. 15. Pipeline 2012Functional Chemicals – Suprasel Loso™ OneGrain™Key Features Customer Benefits• An innovative salt for food • Addresses concerns about sodium consumption levels• Up to 50 percent reduced sodium content and no loss of taste• Every salt grain can contain a full customized recipe Growth potential • A solution for low-salt snacks, meats, cheese and bread • EU is targeting 4 percent sodium reduction annually over 4 years • Worldwide market anticipated as global food companies adopt the product Press conference Q4 and FY 2011 results 15
  16. 16. Performance improvement program andoutlook Press conference Q4 and FY 2011 results 16
  17. 17. The performance improvement program is ontrack to deliver €500 million EBITDA in 2014• Development of 2012 overall plan on track• €28 million of restructuring provisions taken in Q4 2011 with around €200 million expected in 2012• Further restructuring underway within Decorative Paints Europe• Additional actions announced in Decorative Paints North America• Close to 800 employees have been made redundant• Confidence in delivery of €200 million EBITDA in 2012 Press conference Q4 and FY 2011 results 17
  18. 18. Medium-term strategic ambitionsunchanged• 2011 was a challenging year due to the inflation of raw material prices and the continuing economic headwinds• Delivering on price increases• Implementing our performance improvement program will bring significant benefits in 2012 and beyond• The uncertain economic environment, and certain raw materials, remain the key sensitivities in 2012 Press conference Q4 and FY 2011 results 18
  19. 19. Questions? Press conference Q4 and FY 2011 results 19
  20. 20. Safe Harbor StatementThis presentation contains statements which address such key issues asAkzoNobel’s growth strategy, future financial results, market positions, productdevelopment, products in the pipeline, and product approvals. Such statementsshould be carefully considered, and it should be understood that many factors couldcause forecasted and actual results to differ from these statements. These factorsinclude, but are not limited to, price fluctuations, currency fluctuations, developmentsin raw material and personnel costs, pensions, physical and environmental risks, legalissues, and legislative, fiscal, and other regulatory measures. Stated competitivepositions are based on management estimates supported by information provided byspecialized external agencies. For a more comprehensive discussion of the riskfactors affecting our business please see our latest Annual Report, a copy of whichcan be found on the company’s corporate website www.akzonobel.com. Press conference Q4 and FY 2011 results 20

×