Media Update Full-Year 2014 & Q4 results Ton Bchner & Malys Castella February 12, 2015
Agenda 1. 2014 highlights and operational review 2. Financial review 3. Key developments in 2014 4. Conclusion 5. Questions Media Update Full-Year 2014 and Q4 results 2
Key achievements during 2014 Clear operational improvements visible in the results, despite challenging market conditions Major transformation programs in all three Business Areas and support functions Functional alignment through…
Financial highlights of 2014 Revenue Operating Income Operating Income Net cash from excl. incidental items operating activities -2% +20% +3% +13% 14,590 14.29 14,296 6 1,072 958 987 897 811 716 FY 2013 FY 2014 FY 2013…
FY 2014 revenue and operating income underlying margins continue to improve million FY 2013 FY 2014 % Revenue 14,590 14,296 -2 Operating income excluding incidentals 897 1,072 20 Operating income 958 987 3 Ratio, % FY 2013 FY 2014…
Foreign exchange rates were no longer a headwind in Q4, but impacted full-year results Quarterly foreign exchange rate development in % year-on-year 2013 2014 4 +3% +1% +2% +1% 0 -4 -8 Decorative Paints Performance Coatings…
The majority of global manufacturing output is still anticipating expansion Purchase Managers Index (PMI)* January 2015 60 US Spain Sweden Japan India Manufacturing PMI Germany Brazil 50 France China Russia 40…
Overall consumer confidence levels went down for many countries Consumer confidence, Q4 2014 Figures below 100 indicate some degree of pessimism 140 Recent trends compared 120 to Q3 2014 100 80 60 129 107 106 98 95 40 94 89…
42% of revenues 16% of revenues New Build Projects Automotive OEM, Parts and Assembly Maintenance, Renovation & Repair Automotive Repair Building Products & Components Marine and Air Transport 17% of revenues 25% of revenues…
Decorative Paints FY 2014 highlights million = FY 2013 FY 2014 % Volumes up 1 percent, with increases in Asia offset by lower Revenue 4,174 3,909 -6 volumes in Latin America, Operating income excluding incidentals 200 248 24…
Performance Coatings FY 2014 highlights Volumes up 1 percent, mainly from million FY 2013 FY 2014 % growth in Marine and Protective Revenue 5,571 5,589 0 Coatings and Powder Coatings Operating income excluding incidentals 525 545 4…
Specialty Chemicals FY 2014 highlights Revenue down 1 percent due to million FY 2013 FY 2014 % better volumes and price/mix more Revenue 4,949 4,883 -1 than offset by divestments and Operating income excluding incidentals 418 508 22…
The net impact of a sustained lower oil price can have a positive impact in 2015 Freight and logistics Freight and logistics Raw materials Production Sales GDP Inventories Media Update Full-Year 2014 and Q4 results 13
Downstream oil related products have clearly different dynamics Feedstocks Base Intermediates and more complex molecules (petro)chemicals Intermediates Monomers, More complex Precursors, etc. molecules Solvents Crude Oil…
Financial review Malys Castella Media Update Full-Year 2014 and Q4 results 15
FY 2014 - strong underlying performance Operational Cash discipline Cash flow and EPS improvement ROS 6.9%; +30bp Capex 588 million Net cash from operating activities 811 million ROS 7.5%; +140bp OWC as a percentage of…
Summary FY 2014 results million FY 2013 FY 2014 % EBITDA 1,513 1,690 +12% Amortization and depreciation (616) (618) Operating income before incidentals 897 1072 +20% Incidentals 61 (85) Operating income 958 987 +3% Net financing expenses…
Disciplined cash management Operating Working Capital Capital Expenditures million million Operating Working Capital Specialty Chemicals Decorative Paints OWC as % of LQ revenue * 4 Performance Coatings Other 2.500 16% 5.4%…
Continuously reducing costs of long term bonds Debt maturities million Repaid 7.75% 4.00% bonds bonds bonds 2.625% 7.25% 1.75% Debt duration 4.8 years 825 8.00% 800 750 622 500 Net interest expense down 320 by 74 million…
Key developments in 2014 Ton Bchner Media Update Full-Year 2014 and Q4 results 20
Key developments 2014 Derde opeenvolgende jaar eerste plaats voor AkzoNobel in DJSI AkzoNobel omarmt megastad Media Update Full-Year 2014 and Q4 results 21
Human Cities June 2014, Venice We launched our Human Cities initiative, which is designed to engage with the challenges and opportunities of the 21st century city via color, heritage, transport, education, sport & leisure, and…
Conclusion Improved underlying performance as efficiency programs take effect Higher return on sales and return on investment, despite the volatile economic environment Developing from transformation towards continuous improvement…
Questions 24
Appendix Media Update Full-Year 2014 and Q4 results 26
Decorative Paints Q4 2014 highlights million = Q4 2013 Q4 2014 % Volumes down in Q4, mainly driven by weak demand in all Revenue 934 920 -1 regions Operating income excluding incidentals -52 16 131 Price/mix flat as the effect from…
Performance Coatings Q4 2014 highlights million Q4 2013 Q4 2014 % Q4 revenue was up 4 percent due to favorable currencies and Revenue 1,367 1,416 4 price/mix Operating income excluding incidentals 73 106 45 Operating income 73 106…
Specialty Chemicals Q4 2014 highlights million Q4 2013 Q4 2014 % Q4 revenue in line with previous year, with adverse impact of Revenue 1,200 1,194 -1 volumes and divestments offset by Operating income excluding incidentals 91 93 2…
Innovation Pipeline Q4 2014 Decorative Paints Dulux stain removal Non-additive interior paint Key Features Customer Benefits Growth Potential Nano shell binder technology Good dirt resistance Launched in Dec 2014 Premium stain removal…
Innovation Pipeline Q4 2014 Specialty Coatings - Leather Touch Clearcoat Key Features Customer Benefits Growth Potential A soft-feel, clear coat for plastic Compatible with current Good growth envisaged, driven coated electronic…
Innovation Pipeline Q4 2014 Industrial Chemicals Steam savings in chlorine production Key Features Innovation Benefits Reduction in the consumption Innovative use of advanced Significant savings on steam of process steam in chlorine…
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