Akzo Nobel NV : AkzoNobel publishes Q4 and Full-Year 2012 results

      Akzo Nobel NV : AkzoNobel publishes Q4 and Full-Year 2012 results

February 20, 2013

  o2012 revenue up 5 percent driven by favorable currencies and pricing,
    offset by lower volumes
  o2012 EBITDA 4 percent higher at €1,901 million (2011: €1,834 million)
  oPerformance improvement program 2012 target has been exceeded
  oNet loss from continuing operations €1,733 million (2011: €536 million
    income), due to the Q3 impairment charge of €2,106 million
  oNet cash from operating activities up 86 percent to €737 million
  oAdjusted EPS €3.26 (2011: €3.10)
  oTotal dividend for 2012 proposed at €1.45 (2011: €1.45)
  oDecorative Paints North America reported in discontinued operations;
    Chemicals Pakistan divestment completed in 2012
  oThe economic environment remains challenging, especially in Europe

Full-year 2012 in € 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 € 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  €1,901 million (2011: €1,834 million) helped  by 
the performance improvement program, which contributed €276 million to EBITDA.
As a consequence of the impairment charge  of €2,106 million in Q3 related  to 
Decorative Paints, we recorded a  full-year operating loss of €1,244  million. 
Excluding this impairment charge, operating  income was €862 million  positive 
(2011: €1,145 million).

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

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 €1.45. 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

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(TM).

Not for publication - for more information

Corporate Media Relations, tel. +31 20 5027833
Contact: Marcel van de Hoef

Corporate Investor Relations, tel. +31 20 502 7854
Contacts: Jonathan Atack and Sheryl Stokes

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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