AkzoNobel publishes Q4 and Full-Year 2012 results

February 20, 2013 * 2012 revenue up 5 percent driven by favorable currencies and pricing, offset by lower volumes * 2012 EBITDA 4 percent higher at EUR1,901 million (2011: EUR1,834 million) * Performance improvement program 2012 target has been exceeded ...

February 20, 2013

* 2012 revenue up 5 percent driven by favorable currencies and pricing, offset by lower volumes

* 2012 EBITDA 4 percent higher at EUR1,901 million (2011: EUR1,834 million)

* Performance improvement program 2012 target has been exceeded

* Net loss from continuing operations EUR1,733 million (2011: EUR536 million income), due to the Q3 impairment charge of EUR2,106 million

* Net cash from operating activities up 86 percent to EUR737 million

* Adjusted EPS EUR3.26 (2011: EUR3.10)

* Total dividend for 2012 proposed at EUR1.45 (2011: EUR1.45)

* Decorative Paints North America reported in discontinued operations; Chemicals Pakistan divestment completed in 2012

* The economic environment remains challenging, especially in Europe

Full-year 2012 in EUR million FY 2011 FY 2012 D% Revenue 14,604 15,390 5 EBITDA(1) 1,834 1,901 4 EBITDA margin (in %) 12.6 12.4 Net income 477 (2,169)

Q4 2012 in EUR million Q4 2011 Q4 2012 D% Revenue 3,549 3,673 3 EBITDA(1) 352 363 3 EBITDA margin (in %) 9.9 9.9 Net income (68) (59) (1) Excluding incidentals

Akzo Nobel N.V. (AkzoNobel) today announced its Q4 and full-year 2012 results. Revenue for the year was up 5 percent driven by favorable currencies and pricing, which was partially offset by a decline in volumes. EBITDA for the year was 4 percent higher at EUR1,901 million (2011: EUR1,834 million) helped by the performance improvement program, which contributed EUR276 million to EBITDA. As a consequence of the impairment charge of EUR2,106 million in Q3 related to Decorative Paints, we recorded a full-year operating loss of EUR1,244 million. Excluding this impairment charge, operating income was EUR862 million positive (2011: EUR1,145 million).

CEO Ton Büchner

"AkzoNobel delivered a strong set of results in difficult markets, underpinned by the performance improvement program which exceeded our intermediate targets."

Commenting on the outlook Büchner said: "The economic environment remains challenging and we expect no fundamental changes in the trends that we have seen recently in our businesses. We will continue to focus on performance improvements and operational efficiencies in order to benefit from our strong portfolio of businesses with many leading market positions and exposure to growth markets."

Business performance

Decorative Paints was impacted by weaker demand in the European markets. Specialty Chemicals delivered a robust performance, despite weaker demand in the second half of the year. Performance Coatings recorded a strong performance driven by margin management and operational efficiency actions, despite weaker volumes overall.

Portfolio changes

On December 14, 2012, AkzoNobel announced the sale of Decorative Paints North America to PPG. On December 28, 2012, the company completed the sale of Chemicals Pakistan, which was subsequently deconsolidated. In early 2012, AkzoNobel acquired Boxing Oleochemicals in Specialty Chemicals - the leading supplier of nitrile amines and derivatives in China and throughout Asia. The Schramm/SSCP acquisition accounted for the positive acquisition effect in Performance Coatings as these activities were consolidated from Q4 2011.

Incidental items

AkzoNobel incurred higher restructuring costs, mainly in mature markets, as the company implemented its performance improvement program. Restructuring activities are ongoing across the businesses, with the restructuring being stepped up in the European Decorative Paints business in Q4.

Raw materials

On average, raw material costs were stable compared with the previous year, with the upward pressure on oil prices offsetting softer TiO(2) prices.

Proposed dividend

AkzoNobel will propose a total dividend for 2012 of EUR1.45. A final dividend will be paid in cash unless shareholders elect to receive a stock dividend.

Business area highlights Decorative Paints 4(th) Quarter Full-year 2011 2012 D% 2011 2012 D% 965 995 3 Revenue 4,201 4,297 2 61 47 (23) EBITDA 479 425 (11) 6.3 4.7 EBITDA margin (in %) 11.4 9.9 Performance Coatings 4(th )Quarter Full-year 2011 2012 D% 2011 2012 D% 1,326 1,394 5 Revenue 5,170 5,702 10 141 190 35 EBITDA 611 769 26 10.6 13.6 EBITDA margin (in %) 11.8 13.5 Specialty Chemicals 4(th) Quarter Full-year 2011 2012 D% 2011 2012 D% 1,285 1,320 3 Revenue 5,335 5,543 4 207 172 (17) EBITDA 906 889 (2) 16.1 13.0 EBITDA margin (in %) 17.0 16.0

The 2012 full-year and Q4 report can be read on www.akzonobel.com/quarterlyresults.

AkzoNobel is the largest global paint and coatings company and a major producer of specialty chemicals. We supply industries and consumers worldwide with innovative products and are passionate about developing sustainable answers for our customers. Our portfolio includes well known brands such as Dulux, Sikkens, International and Eka. Headquartered in Amsterdam, the Netherlands, we are a Global Fortune 500 company and are consistently ranked as one of the leaders on the Dow Jones Sustainability Indexes. With operations in more than 80 countries, our 55,000 people around the world are committed to excellence and delivering Tomorrow's Answers Today?.

Pdf file AkzoNobel Q4/FY 2012 press release:


AkzoNobel report for the year 2012 and 4th quarter:


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Source: Akzo Nobel NV via Thomson Reuters ONE


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