6 February 2014
- Q4 volume development positive in all three business areas and ROS%, excluding restructuring costs and incidentals increased , continuing the trend from Q3
- Revenue for both Q4 and full year down 5 percent, due to adverse currency effects and divestments
- 2013 operating income at €958 million (excluding €61 million incidentals: €897 million; 2012: €908 million excluding impairment)
- Net income attributable to shareholders €724 million (2012: €386 million excluding impairment) and adjusted EPS at €2.62 (2012: €2.55)
- Net debt down €769 million at €1,529 million (2012: €2,298 million)
- Total dividend for 2013 proposed at €1.45 (2012: €1.45)
- Performance improvement program completed one year ahead of schedule; target exceeded with €545 million total savings achieved
- On track to deliver 2015 targets despite expected continued fragile economic environment and volatile foreign currencies in 2014
| 2012* | 2013 | ||||||
| € million unless stated otherwise | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY |
| Decorative Paints | 995 | 4,297 | 925 | 1,179 | 1,136 | 934 | 4,174 |
| Performance Coatings | 1,394 | 5,702 | 1,331 | 1,458 | 1,415 | 1,367 | 5,571 |
| Specialty Chemicals | 1,320 | 5,543 | 1,244 | 1,253 | 1,252 | 1,200 | 4,949 |
| Other | -36 | -152 | -35 | -25 | -25 | -19 | -104 |
| Group Revenue | 3,673 | 15,390 | 3,465 | 3,865 | 3,778 | 3,482 | 14,590 |
| EBITDA | 205 | 1,597 | 375 | 474 | 456 | 208 | 1,513 |
| D&A | -161 | -625 | -158 | -152 | -153 | -153 | -616 |
| EBIT | 44 | 972 | 217 | 322 | 303 | 55 | 897 |
| Incidentals | -8 | -64 | - | - | - | 61 | 61 |
| Decorative Paints | -91 | 94 | 43 | 102 | 107 | 146 | 398 |
| Performance Coatings | 114 | 542 | 129 | 163 | 160 | 73 | 525 |
| Specialty Chemicals | 73 | 500 | 99 | 121 | 107 | -30 | 297 |
| Other | -60 | -228 | -54 | -64 | -71 | -73 | -262 |
| Operating Income | 36 | 908 | 217 | 322 | 303 | 116 | 958 |
| Finance Income/expenses | -38 | -205 | -63 | -33 | -56 | -48 | -200 |
| Associates | -1 | 13 | 3 | 6 | 4 | 1 | 14 |
| PBT | -3 | 716 | 157 | 295 | 251 | 69 | 772 |
| Tax Charge | 16 | -203 | -45 | 38 | -83 | -21 | -111 |
| Non-controlling interests | -18 | -63 | -16 | -25 | -14 | -13 | -68 |
| Discontinued operations | -22 | -64 | -7 | 121 | 1 | 16 | 131 |
| Net Income attributable to shareholders | -27 | 386 | 89 | 429 | 155 | 51 | 724 |
| Tax Rate | 533% | 28% | 29% | -13% | 33% | 30% | 14% |
*2012 excluding impairment (€2.1 billion)
Full year 2013 and Q4 highlights
- In line with guidance, the operating income excluding incidentals for the full year is €897 million.
- In Decorative Paints, 2013 revenues declined 3 percent due to adverse currency effects and divestments. Q4 revenue was down 6 percent due to adverse currency effects and the divestment of Building Adhesives (completed on 1 October 2013, resulting in a gain of €198 million and cash inflows of €247 million). 2013 volumes increased 3 percent with increases in all regions, except Europe which was flat overall. Q4 volumes were up in all regions, against a low base in 2012.
- In Performance Coatings, 2013 revenue declined 2 percent due to adverse currencies and overall flat volumes, but with continued variability between individual segments. 2013 volumes were down at the start of the year compared with 2012, reflecting the difficult trading conditions, but gradually improved with Q4 volumes being up 2 percent.
- In Specialty Chemicals, it was a year of continued soft demand, with low activity being particularly evident in construction-related products, pulp bleaching and the plastics industries. In addition to the general slowdown in demand, we had new plant start-ups and extended maintenance stops earlier in the year, which impacted production temporarily. Included in the results for this business area is a non-cash impairment charge of €139 million on a business held for sale.
- Restructuring charges in Q4 were €204 million. 2013 and Q4 Investor Presentation gives full details per quarter of the charges and the benefits.
- Full year average raw material costs were down, having stabilized during the year.
- In Q4, there was a contribution to the US pension plan made of €127 million.
- Capital Expenditure for the full year is €666 million which is 4.6% of revenue, a significant reduction from last year (2012: €826 million, 5.4% of revenues)
- In December 2013, we paid off a 5.625% USD bond from existing resources. Average costs of long term bonds has reduced from 5.62% 2012 to 4.89% 2013.
Q4 revenue development in % versus Q4 2012
| Volume | Price/mix | Divestments | FX rates | Total | ||||||
| Q4 | Q4 | Q4 | Q4 | Q4 | ||||||
| Decorative Paints | 5 | - | (4) | (7) | (6) | |||||
| Performance Coatings | 2 | 1 | - | (5) | (2) | |||||
| Specialty Chemicals | 3 | (2) | (6) | (4) | (9) | |||||
| Average development | 4 | (1) | (3) | (5) | (5) | |||||
Full year revenue development in % versus Q4 2012
| Volume | Price/mix | Divestments | FX rates | Total | ||||||
| FY | FY | FY | FY | FY | ||||||
| Decorative Paints | 3 | - | (1) | (5) | (3) | |||||
| Performance Coatings | - | 1 | - | (3) | (2) | |||||
| Specialty Chemicals | (2) | (1) | (6) | (2) | (11) | |||||
| Average development | 1 | - | (2) | (4) | (5) | |||||
