Decorative Paints – Overview

• Volumes up due to strong volume development in Asia while market conditions in Europe and Latin America were challenging
• Revenue down 6 percent mainly due to adverse currency effects (6 percent) and divestments (4 percent)
• Operating income benefited from lower costs, but was adversely impacted by higher restructuring charges and currencies
• German stores divestment completed end of March

Volume in Decorative Paints was up compared with 2013. The market conditions in Europe remained challenging with lower volumes while volumes were higher in Asia. Revenue in Decorative Paints declined 6 percent due to a 6 percent adverse currency effect driven by Latin America and Asia and a 4 percent divestment effect. Price/mix was positive in all three regions.

Operating income for the quarter was lower than the previous year with higher restructuring costs in mature markets.

Revenue development Q1 2014