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Report of the Board of Management


  • 2008 revenue up 1 percent at €15,415 million
  • 2008 EBITDA before incidentals totaled €1,878 million (2007: €2,011 million)
  • Slowdown evident in all three business areas, in all geographies
  • Impairment of ICI intangibles of €1.2 billion after tax and higher incidental charges of €0.6 billion led to a full-year loss of €1.1 billion
  • Restructuring and cash protection measures at an advanced stage
  • €1 billion bond issue in December
  • Balance sheet is strong, but prudence dictates share buyback program will not be completed
  • 2007 dividend level of €1.80 maintained

Full-year revenue amounted to €15,415 million, 1 percent ahead of last year. Although we posted revenue growth for 2008, the severity of the deteriorating economy became apparent towards the end of Q4. Due to the integration of ICI and restructuring measures in response to the economic slowdown, we incurred significant additional incidental costs. We also recorded an impairment of intangibles acquired from ICI (mainly goodwill) of €1.2 billion after tax relating to the Decorative Paints and National Starch businesses. This resulted in a loss for 2008 of €1.1 billion.

Keith Nichols, Chief Financial Officer (photo)
Keith Nichols
Chief Financial Officer
“The fundamentals   of AkzoNobel
  remain sound”

Financial highlights

 

 

Download XLS

 

 

 

 

In € millions

 

 

 

 

2008

2007 PF1

Δ%

1

Pro forma and unaudited.

2

Not meaningful as operating income is a loss.

3

Not a pro forma number.

 

 

 

 

Continuing operations before incidentals

 

 

 

Revenue

15,415

15,255

1

EBITDA

1,878

2,011

(7)

EBITDA margin (in %)

12.2

13.2

 

EBIT before fair value adjustments

1,416

1,520

(7)

EBIT after fair value adjustments

1,266

1,344

(6)

Net income from continuing operations

 

 

 

before fair value adjustments

842

985

(15)

Net income from continuing operations

742

859

(14)

Earnings per share from continuing operations (in €)

3.00

3.11

(4)

 

 

 

 

After incidentals

 

 

 

Operating income/(loss)

(626)

979

 

Net income/(loss) from continuing operations

(1,109)

595

 

Net income/(loss) from discontinued operations

23

 

Net income/(loss) total operations

(1,086)

595

 

Earnings per share from total operations (in €)

(4.38)

2.16

 

Capital expenditures

534

543

 

Interest coverage

2

11.1

 

Invested capital

13,424

15,480

 

Net cash from operating activities

91

6433

 

Net interest-bearing borrowings

2,084

2,910

 

Number of employees

60,040

61,700

 

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