17 April 2014
- Volume and price/mix development positive in all three Business Areas
- Revenue down 2 percent due to 5 percent adverse currency effects
- Restructuring costs €44 million (2013: €29 million). Excluding these, ROS% is 7.7% (2013: 7.1%)
- Operating income at €216 million (2013: €217 million) reflects adverse currencies and €15 million higher restructuring costs
- Net income attributable to shareholders €129 million increased (2013: €89 million), mainly due to lower financing expenses
- Adjusted EPS at €0.61 (2013: €0.51)
- Net cash outflow from operating activities was €552 million (2013: €406 million)
- On track to deliver 2015 targets despite expected continued fragile economic environment and volatile currencies in 2014
| 2013 | 2014 | ||||
| € million unless stated otherwise | Q1 | Q2 | Q3 | Q4 | Q1 |
| Decorative Paints | 925 | 1,179 | 1,136 | 934 | 865 |
| Performance Coatings | 1,331 | 1,458 | 1,415 | 1,367 | 1,319 |
| Specialty Chemicals | 1,244 | 1,253 | 1,252 | 1,200 | 1,222 |
| Other | -35 | -25 | -25 | -19 | -23 |
| Group Revenue | 3,465 | 3,865 | 3,778 | 3,482 | 3,383 |
| EBITDA | 375 | 474 | 456 | 208 | 364 |
| D&A | -158 | -152 | -153 | -153 | -148 |
| EBIT | 217 | 322 | 303 | 55 | 216 |
| Incidentals | - | - | - | 61 | - |
| Decorative Paints | 43 | 102 | 107 | 146 | 17 |
| Performance Coatings | 129 | 163 | 160 | 73 | 126 |
| Specialty Chemicals | 99 | 121 | 107 | -30 | 135 |
| Other | -54 | -64 | -71 | -73 | -62 |
| Operating Income | 217 | 322 | 303 | 116 | 216 |
| Finance Income/expenses | -63 | -33 | -56 | -48 | -37 |
| Associates | 3 | 6 | 4 | 1 | 6 |
| PBT | 157 | 295 | 251 | 69 | 185 |
| Tax Charge | -45 | 38 | -83 | -21 | -43 |
| Non-controlling interests | -16 | -25 | -14 | -13 | -16 |
| Discontinued operations | -7 | 121 | 1 | 16 | 3 |
| Net Income attributable to shareholders | 89 | 429 | 155 | 51 | 129 |
| Tax Rate | 29% | -13% | 33% | 30% | 23% |
Q1 2014 highlights
- Year-on-year, ROS%, both before and after higher restructuring charges, improved for the third consecutive quarter
- In Decorative Paints, volume was up due to strong volume development in Asia while market conditions in Europe and Latin America were challenging. Revenue was down 6% mainly due to adverse currency effects and divestments
- In Performance Coatings, volume was up mainly due to Marine and Protective and Powder Coatings. Revenue was lower due to adverse currency effects
- In Specialty Chemicals, volume was up as a result of better market conditions in Functional Chemicals and the absence of the previous year's production issues
- On March 26, an announcement was made that the Trustee of the ICI Pension Fund in the UK entered into two annuity buy-in agreements in line with their on-going strategy of de-risking. As a result , shareholders equity decreased by €773 million
- Net debt increased from €1,529 million at year end to €2,186 million at the end of Q1 2014, mainly due to changes in working capital of €471 million and capital expenditure of €115 million
- During the quarter, a €825 million bond which had a coupon of 7.75% was repaid from existing resources, which further reduced borrowing costs
Q1 revenue development in % versus Q1 2013
| Volume | Price/mix | Divestments | FX rates | Total | ||||||
| Decorative Paints | 1 | 3 | (4) | (6) | (6) | |||||
| Performance Coatings | 3 | 2 | - | (6) | (1) | |||||
| Specialty Chemicals | 2 | 1 | (1) | (4) | (2) | |||||
| Average development | 2 | 2 | (1) | (5) | (2) | |||||
Restructuring charges by quarter
| 2013 | 2014 | |||||||||
| Q1 | Q2 | Q3 | Q4 | Q1 | ||||||
| Decorative Paints | 7 | 24 | 8 | 66 | 22 | |||||
| Performance Coatings | 11 | 5 | 9 | 77 | 15 | |||||
| Specialty Chemicals | 1 | 0 | 46 | 27 | 7 | |||||
| Other | 10 | 11 | 12 | 34 | 0 | |||||
| Total | 29 | 40 | 75 | 204 | 44 | |||||
Effect from Building Adhesives on FY 2013 Results
| 2013 | ||||||||||
| Q1 | Q2 | Q3 | Q4 | FY | ||||||
| Revenue | 45 | 49 | 47 | - | 141 | |||||
| Operating Income | 4 | 5 | 3 | - | 12 | |||||
