AkzoNobel - Goldman Sachs London June 18 2012 - tcm9-75181

Goldman Sachs European Chemicals 2020
Vision Conference
AkzoNobel investor update
London, June 18, 2012
Keith Nichols
CFO
Agenda
• AkzoNobel at a glance
• Strategic ambitions
• Sustainable solutions for our end markets
• Performance Improvement Program
• Questions
Goldman Sachs European Chemicals 2020 Vision Conference 1

AkzoNobel key facts
2011
• Revenue €15.7 billion
• 57,240 employees
• EBITDA: €1.8 billion*
• Net income: €0.5 billion
• 40 percent of revenue from high growth markets
• A leader in sustainability
Revenue by business area EBITDA* by business area
34% 33% 31% Performance Coatings
46% Decorative Paints
Specialty
p y Chemicals
23%
33%
* Before incidentals

Global megatrends
Population growth Climate change

7.0 billion people today to over 9 billion Increase the need for energy efficiency
in 2050 and low carbon & renewable energy
sources
Quality of life Scarcity of natural resources

A new middle class Drives innovation
3 billi
billion people
l emerging
i over th
the nextt T d we use replenishment
Today l i h t capacity
it off
20 years 1.5 planets
* Sources: UN World Population prospects, OECD, IPCC, World resources institute, WBCSD

Our medium term strategic goals
• Toppqquartile safety
y
performance
• Top 3 position in sustainability
• Top quartile performance in
di
diversity,
it employee
l engagement, t
and talent development
• Top quartile eco-efficiency
improvement
p rate
• Grow to €20 billion revenues

• Increase EBITDA each year,
maintaining 13-15%
13 15% margin
• Reduce OWC/revenues by
0.5 p.a. towards a 12% level
• Pay a stable to rising dividend
Sustainable growth is a prerequisite for future profitability

We have leading positions and strong
brands
2011 Revenue by
y market p
position Some of our strong
g brands
Decorative Paints
No. 2
or 3
32%
No. 1 Performance Coatings

position
59%
Other
9%
Specialty Chemicals
• Our leading market positions provide us with scale benefits

• Strong brands ensure customer loyalty
• Established relationshipsp with key
y specifiers
p and regulatory
g y approvals
pp lead
to significant barriers to entry

Excellent geographic spread of
both revenue and profits
High growth markets are important (40% of revenue)
% of 2011 revenue 38%
“Mature” Europe
7%
20% “Emerging” Europe
North America
3% 22%
Middle East Asia Pacific
and Africa
10%
Latin America
High growth markets’ profitability is above average

High growth markets will become
significantly more important
% of revenue, indicative
32%
“Mature” Europe
9%
18% “Emerging” Europe
North America
25%
5%
Asia Pacific
Middle East
and Africa
11%
Latin America
g growth
High g % of revenue in this decade
markets will be around 50%

Exciting RD&I pipeline with innovative
solutions for key market segments
How innovation will support our Revenue by key market
growth agenda:
g g segment
• Functional solutions in key market

segments
• Increase spend in Big R&D
12%
• >15% of revenue from “breakthrough”
innovations* 13%
43%
• >30% of revenue from
Eco-premium solutions**
Our more centrally led RD&I efforts 32%

aim at delivering solutions for the
future needs of our end markets Residential construction
Consumer goods
Our scale leads to superior absolute Non-residential construction
spend versus our peers Transport
• Major innovations that result in a significant competitive advantage

** Higher eco-efficiency than main competitive product

From global mega-trends to innovative
solutions
l ti
Global Industry & market AkzoNobel
Mega-trends trends Solution Promises
Meeting mid-market
• Accelerating needs
•Population technology
growth development
ve solutions
Achieving zero
footprint
ootp t
Q lit off
•Quality • A specializing,
life
+ solution-
driven world
Bringing products
for wellness &
Cli t
•Climate id tit
identity
nnovativ
change • Well-being &
identity Saving you time &
•Scarcity of effort
In
natural • Convenience
resources Creating new
horizons in
functionality

Tomorrow’s Answers Today
i construction
in t ti
IR reflective coatings for heat management of buildings
Exterior wall paints Metal roof coatings

• Reduces internal • Reduces roof space
temperatures by up to 5°C temperatures by up to 11°C
• Savings
S off up to 15%
1 % on the • Reduces interior cooling
energy used for air demand by 15%
conditioning

in transportation
Coatings with more than aesthetic appeal
Thinner automotive &

aerospace coatings
¾ Reduced weight
¾ Less aerodynamic drag
¾ Reduced fuel consumption
p
¾ Faster
Foul release coatings

¾ Biocide- & toxic metal-free
¾ Super smooth
¾ Less hydrodynamic
y y dragg
¾ Reduced fuel consumption
¾ Reduced CO2 & NOx emissions

for consumers
Consumer goods with minimal environmental footprint
• Naturally derived chelating agent
• A
Anti-scalant
ti l t ingredient
i di t iin phosphate-
h h t
free dishwasher & laundry detergents
• Does not contribute to eutrophication
• Readily biodegradable

Revenue growth and EBITDA margin
performance per quarter
Reported quarterly revenue growth in % year-on-year
20
15 11%
10 6%
4% 4%
5
0
Decorative Paints Performance Specialty AkzoNobel
Coatings Chemicals
Quarterly EBITDA* margin in %
20 16.8%
15 12.0%
10.6%
10 6.1%
5
0
Coatings Chemicals
* Before incidentals 2011 2012 Target range

Price increases coming through, volumes
remain soft
Quarterly volume development in % year-on-year
10
5
-4% -1% -1% -3%
0
-5
Coatings Chemicals
Quarterly price/mix development in % year-on-year
10 8%
6% 5%
5
1%
0
Coatings Chemicals
2011 2012
Performance improvement program: stepping
up operational and functional excellence
Underpin
p our growth
g and margin
g objectives
j
• Enhance our ability to grow
• Expected to bring us at or above the mid-point of our 13-15 percent EBITDA
margin guidance.
Deliver structural competitive advantage

• Leveraging scale, simplify support structures, reduce cost base
• Transfer best practices, standardize key processes
• Restructuring of underperforming parts of the portfolio
Full EBITDA impact of €500 million in 2014

• Expected total incidental costs €425 million
• 2012: €200 million EBITDA, incidental costs of €200 million
• Reporting on program deliverables every six months

A comprehensive program
• Comprehensive – all functions,

all businesses
• Margin management, R&D and
restructuring (~50%)
Decorative Perf. Specialty
• Supply Chain and Sourcing Paints Coatings Chemicals
projects
j t (~40%)
( 40%)
Finance
Information
• Improvements implemented over Management
Research,
three years (2012 to 2014) Dev’t & Innov.
Human
Resources
• All business areas contribute to Integrated
Supply Chain
delivering the €500 million M
Margin
i
Management
• >40 percent Decorative Paints
Academy
• >30 percent Performance
Coatings
• Close to 25 percent Specialty
Chemicals

Medium-term strategic ambitions
unchanged
• We are delivering on price increases

• Performance Improvement Program on track
- next update with half year results
• The economic environment remains uncertain:
- volumes remain soft
- raw material costs remain a risk
• Our solid fundamentals, strong brands and excellent geographic
spread, give us every reason to be confident about the medium-
term

Questions

Appendix

Decorative Paints key facts
2011
• EBITDA: €440 million*
• Largest global supplier of decorative paints
• Many leading positions, strong brands
Some of our strong brands Revenue by geography
3%
12% M t
Mature Europe
E
Emerging Europe
40%
Asia Pacific
20%
North America
L ti A
Latin America
i
Other regions
18% 7%

Performance Coatings key facts
2011
• Leading positions in performance coatings
industry
• Innovative technologies, strong brands
Revenue by business unit Revenue by geography
Marine and Protective

15% 4%
Coatings 8% Mature Europe
27% Automotive and 30% Emerging Europe
Aerospace Coatings
18% Industrial Coatings 20% Asia Pacific
North America
Powder Coatings
Latin America
20% 10%
20% Wood Finishes and Other regions
Adhesives 28%

Specialty Chemicals key facts
2011
• Major producer of specialty chemicals
• Leadership positions in many markets
Revenue by business unit Revenue by geography
Functional Chemicals
6% 9% 2%
17% Mature Europe
Industrial Chemicals
35% Emerging Europe
20% 43%
Pulp and Performance Asia Pacific
Chemicals North America
21% Surface Chemistry Latin America
Other Regions
21% Chemicals Pakistan 22% 4%

The global paints and coatings market is
around €70 billion
% of market
100% is around €70 billion
Wood Finishes
6% General Industrial Coatings

10%
Car Refinishes
7%
Decorative 44%
Performance
3% Marine and Yacht
56%
6%
Protective coatings
2%
9% Special purpose
8% 2%3%
Auto OEM,
OEM metal,
metal plastics
Coil Coatings
Powder Coatings Packaging Coatings
Source: Company Reports

AkzoNobel is the world’s largest
coatings supplier
2010 revenue in € billion
12
10

Q1 2012 revenue and EBITDA
€ million Q1 2012 Δ%
Revenue 3,972
3 972 6
EBITDA* 423 (3)
Ratio, % Q1 2012 Q1 2011

EBITDA* margin 10.6 11.6
Revenue development Q1 2012 vs. Q1 2011
8 +2%
+2%
4
+6%
0 +5%
-3%
-4
Volume Price/Mix Acquisitions/ Exchange rates Total
divestments
* Before incidentals Increase Decrease

Decorative Paints Q1 2012 highlights
Revenue 1 242
1,242 4
EBITDA* 76 (16)
Ratio %
Ratio, Q1 2012 Q1 2011
R
Revenue d
development
l t Q1 2012 vs. Q1 2011 Increase Decrease
5 +1% +1%
+4%
0
-4%
4% +6%
-5
divestments
• Revenue up 4 percent versus last year driven by favorable price/mix

• Weaker volume development in most regions
• EBITDA 16 percent behind last year, reflecting lower volumes and higher costs
• R t t i underway
Restructuring d iin E
Europe anddNNorth
th A
America
i
Performance Coatings Q1 2012 highlights
Revenue 1 369
1,369 11
EBITDA* 164 15
Ratio %
Ratio, Q1 2012 Q1 2011
Revenue development Q1 2012 vs.
vs Q1 2011 Increase Decrease
15 +2%
+2%
10
5 -1% +8% +11%
0
-5
divestments
• Revenue up 11 percent and EBITDA up 15 percent,percent supported by margin

management, acquisition and currency effects
• EBITDA margin at 12.0 percent (2011: 11.6 percent)
• Integration of acquired activities delivering results
• Continued focus on cost control and operational efficiencies
* Before incidentals Goldman Sachs European Chemicals 2020 Vision Conference 27

Specialty Chemicals Q1 2012 highlights
Revenue 1 399
1,399 4
EBITDA* 235 (2)
R ti %
Ratio, Q1 2012 Q1 2011
Revenue development Q1 2012 vs.
vs Q1 2011 Increase Decrease
6
+2%
4 +2%
2 -1%
1% +1% +4%
0
-2
divestments
• Revenue increased by 4 percent, mainly due to the Boxing Oleochemcials

acquisition
• EBITDA decreased 2 percent to €235 million against a strong Q1 2011, driven
mainly by Functional Chemicals
• EBITDA margin remained strong at 16.8 percent (2011: 17.8 percent)
* Before incidentals Goldman Sachs European Chemicals 2020 Vision Conference 28
Summary – Q1 2012 results
€ million Q1 2012 Q1 2011

EBITDA*
EBITDA 423 437
Amortization and depreciation (168) (148)
Incidentals (64) (12)
Net financing expense (65) (63)
Minorities and associates (10) (9)
Income tax (46) (73)
Discontinued operations 1 (4)
Net income total operations 71 128
Net cash from operating activities (761) (519)
Ratio Q1 2012 Q1 2011

EBITDA* margin (%) 10.6 11.6
Adjusted earnings per share (in €) 0.63 0.72

Strong operating returns on invested
capital
30% 27.6%
25.6%
25% 20.8%
20%
15%
10%
5% 10.9%
10.1% 8.4%
0%
Q2 09-Q1 10 Q2 10-Q1 11 Q2 11-Q1 12
Moving average ROI %

* Operating ROI is calculated as EBIT before amortization divided by
average invested capital excluding intangible assets
Operating ROI %*

Cash flows Q1 2012
€ million Q1 2012 Q1 2011

Profit for the period 84 148
Amortization and depreciation 173 150
Change working capital (418) (390)
- Pension provisions (553) (334)
- Restructuring (4) (2)
- Other provisions 11 (22)
Ch
Change provisions
i i (546) (358)
Other operating cash flows (54) (69)
Operating cash flows (761) (519)
Capex (143) (130)
Changes from borrowings 490 (12)
Dividends (3) (1)
Discontinued operations (6) -
Other changes 2 15
Total cash flows (421) (647)

Variable costs represent 54.3% of revenue
% of 2011 annual revenue*

100%
Raw materials,
energy, and
other variable
costs
Fixed production
costs
Selling, advertising,
administration, R&D
costs
EBIT margin
0%
Decorative Performance Specialty AkzoNobel
Paints Coatings Chemicals
* Rounded percentages, all data excluding incidentals

Variable costs analysis
2011 Energy & other

Packaging
variable costs*
Solvents
Raw materials
7%
7%
28%
Chemicals and
intermediates***
13%
8% 7%
Additives Other raw materials**
2%
8%
Pigments 12%
8%
Titanium
dioxide
Resins Coatings’
specialties
i lti
* Other variable costs include variable selling costs (e.g. freight) and products for resale
** Other raw materials include cardolite, hylar etc.
*** Chemicals and intermediates include caustic soda, acetic acid, tallow, ethylene, ethylene oxide, sulfur, amines etc.

Capital expenditure prioritization for
growth
• Capex 2011 was €708 million (including Ningbo €45)
• Guidance for the medium term: Capex level to be at least 4 percent

of revenues
Capex as a % of revenue 2011 Capex split
5
3%
16%
4
3 52%
29%
2
1
Specialty Chemicals
0 Decorative Paints
2008 2009 2010 2011
Performance Coatings
B
Base capex Ni b
Ningbo N ti
National
l St
Starch
h Other

Year-on-year Operating Working Capital %
of revenue to be reduced towards 12%
OWC
€ million
3000 20%
15.6% 18%
2500 14 3%
14.3%
13.8% 16%
14.2%
13.1% 13.6%
14%
2000
12%
1500 10%
1,899 2,155 2,279 2,341 2,079 2,502
8%
1000
6%
4%
500
2%
0 0%
Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012
OWC OWC as % of LQ revenue*4

Debt duration 3.4 years and no refinancing
needed in 2012
Debt maturities*
€ million (nominal amounts)
1.200
800
400
0
2012 2013 2014 2015 2016 2017 2018
€ bonds $ bonds £ bonds
Strong liquidity position to support growth
• Undrawn revolving credit facility of €1.8 billion (2016) or €1.5 and $3

billion commercial paper programs
• Net cash and cash equivalents €0.9 billion*
* At the end of Q1 2012

Unchanged ambition to maintain strong
balance sheet
€ million Mar 31, 2012 Mar 31, 2011
Total equity 9 742
9,742 9 358
9,358
Net debt* 2,860 1,578
• Credit ratings unchanged at BBB+/Baa1,

BBB+/Baa1 outlook stable
• Net debt increased mainly due to the additional one-time payment
of €239 million as well as higher operating working capital.
• IIn September
S t b 2011,
2011 we renewed d our five
fi year multi-currency
lti
syndicated revolving credit facility for €1.8 billion (previously €1.5
billion)
* Before net pension deficit of €0.3 billion March 31, 2012 (March 31, 2011 €0.7 billion)

Q1 2012 incidentals
€ million Q1 2012 Q1 2011

Restructuring costs (46) (9)
Results related to major legal, (22) 1
anti-trust and environmental cases
Results of acquisitions and divestments - -
Other incidental results 4 (4)
Total (64) (12)
• IIncrease in
i restructuring
t t i costst due
d tot provisions
i i iin relation
l ti tto
the performance improvement program
• Restructuring
g costs mainly
y related to Decorative Paints in North
America and Europe
• Increase of provision for environmental case in Sweden

Q1 2012 EBITDA – Cash bridge
€ million Q1 2012 Q1 2011

EBITDA before incidentals 423 437
Incidentals (cash) (55) (5)
Change working capital (418) (390)
Change provisions (546) (358)
Interest paid (117) (153)
Income tax paid (48) (50)
Net cash from operating activities (761) (519)
• Higher cash outflows from working capital mainly due to a higher

autonomous increase in operating
p g working
g capital
p
• Higher payments related to pension provisions primarily due to the
additional one-time payment of €239 million into the UK ICI Pension
Fund

Pension deficit decreases to €0.3 billion
Key pension metrics Q1 2012 Q4 2011

Disco nt rate
Discount 4 5%
4.5% 4 6%
4.6%
Inflation assumptions 2.7% 2.5%
Pension deficit development during Q1 2012

€ billion
0,2
0,1 (36)
0,0
-0,1 239 (169)
-0,2 (347)
(505) (227) 29
-0,3
322
-0,4
-0
0,5
5
-0,6
Deficit end Top-ups Contingent Decreased Discount Inflation Other Deficit end
Q4 2011 asset plan assets rates Q1 2012
payment
Increase Decrease
Triennial actuarial valuation of the ICI
Pension Fund completed in January 2012
• Funding deficit has reduced reflecting trustees’ liability driven

investment strategy and cash top-ups paid
• Co
Compared
pa ed to
o the
e cu
current,
e , 6 yea
year de
deficit
c recovery
eco e y pplan:
a
• Top-up contributions over the remaining 6 years of the
recovery plan are expected to be £198.5 million lower in total
• Phased recovery plan savings: £62.5
£62 5 million p
p.a.
a in 2012 and
2013, £19 million p.a. in 2014 to 2016 and £16.5m in 2017
• £250 million contingent asset structure on our balance sheet
terminated and £200 million (€239m) of assets transferred to the
Fund in 2012 to accelerate de-risking per pension strategy

Pension cash contributions expected to
reduce in 2012
€ million 2010 2011 2012 E

Regular 149 148 126
Top-up 375 354 358
T t l
Total 524 502 484
• The one-off
one off cash costs related to the termination of the
contingent asset is expected to be €239 million in 2012
• The non-cash IAS 19 corridor method of pension accounting
i
impact t in
i 2011 was €92 million,
illi off which
hi h €59 million
illi iis on th
the
interest line and €33 million in EBITDA
• The expected non-cash IAS 19 corridor method of pension
accounting
ti impact
i t in
i 2012 iis €100 million,
illi off which
hi h €63 million
illi
is on the interest line and €37 million in EBITDA

Eco-premium solutions have a superior
growth rate and profitability
Eco-premium solutions Eco-premium solutions*
In % of revenue
• Are products that have a higher
30% eco-efficiency than the main
competitive product
21% 22%
• Give us a competitive edge, are
18% more profitable and have a
superior
i growthth rate
t comparedd
to other products
• The 30% ambition is “a a moving

target”, requires a significant
RD&I investment
2009 2010 2011 2015
ambition
* An eco-premium solution is measured using a quantitative analysis or a qualitative assessment focusing on six
categories: toxicity, energy efficiency, use of natural resources/raw materials, emissions and waste, land use and risks
(eg accidents). The eco-premium solution must be significantly better than currently available solutions in at least one
criterion, and not significantly worse in any.

Innovation in Decorative Paints
Coral Rende Muito
Value for money paint, without compromising quality of finish
Key Features Customer Benefits

• A concentrated paint emulsion • Higher value for money for our customers
y up
• Paint can be diluted by p to 80% p g rate
• Best-in-class spreading
• More coverage per liter paint with • Lower transport costs for better sustainability
same quality finish performance
Growth potential
• Six-fold increase in product line sales since it
was launched
• High expectations for global mid-tier markets

Innovation in Performance Coatings
Marine Coatings - Interline® 9001
Next generation low absorption, easy-to-clean lining for chemical cargo tanks
Key features Customers benefits

• New coating for chemical cargo tanks • Greater efficiency and flexibility in
• Low chemical absorption enables operation of chemical tankers
reduction in cleaning time and • Increased vessel earning potential due to
materials extended coating lifetime
• Reduced risk of contamination between
(high purity) cargoes
Growth potential
• Launched globally in 2011 with high
expectations
• Potential penetration into high purity
chemical tanker trade
• Potential extension into other protective
coatings markets where chemical
resistance is required
q

Innovation in Specialty Chemicals
Pulp and Performance Chemicals – Bindzil CC
Improving the quality of waterborne coatings
K F
Key Features
t C t
Customer B
Benefits
fit
• Solves stability and compatibility • Enables paint and lacquer producers to
issues in waterborne coatings up-grade their products in a cost-effective
• Reduces dirt pick
pick-up
up in waterborne and more sustainable way
deco paints • Better ease of application for users
• Improves weather resistance in • Approved in Europe for direct food
silicate paints contact applications
• Complies with eco-labeling
regulations
Growth potential
• Market expected to exceed 1000 tons in
2012
• New applications in concrete floor
polishing and non-stick coatings for
cookware
k under
d d development
l t
• Longer term potential for application in
laminate floorings and kitchen work-tops

Eco Premium Solutions
Decorative Paints - Dulux Weathershield (SunReflect™ & Keep Cool™)
Solar reflectance feature Customer benefits

• Ordinary paints absorb heat–
heat • Savings of up to 15% on the
new pigment technology energy used for air
reflects more of the solar, conditioning
without affecting the color. • Available across 60% of the
• Increased reflectance color range
reduces internal temperatures
by up to 5°C. G o t potential
Growth pote t a
• SunReflect ™ launched in
India and Keep Cool™ in
SEAP.
• Roll-outs planned in similar
climates.

Performance Coatings - Sikkens Autosurfacer UV
Key application features Benefits for body-shop

• 50% less energy consumption owners
• 2 coats instead of 3 • Less paint consumption
• Extremely short drying times • Increased throughput
• Reduced process time • Reduced labor and energy

costs
Strengthens market position

by
• Completing our UV
UV-cure
cure
system offering

Specialty Chemicals – High Filler Concept
Replaces tree fiber with Growth potential

non-wood filler • Sales to customer higher than
• de-watering/retention system standard papermaking
using novel on-line treatment of additives
fillers • Growth potential in both
• Cost of filler up to 10x lower high-growth and mature
than fiber markets
• Of interest to all fine paper
producers
Helping customers save costs

• ~10% less tree fiber to
purchase
• up to 50% lower energy for
drying

Recent innovations
Protective Coatings – Interchar® 1120 Intumescent Coating
A water based Intumescent coating for on-site application

• Reacts in the presence of • Ensures building is sustainable,
intense heat to form an during construction and occupation
insulating layer • Compliant with VOC regulations
• Extend structural integrity
Growth potential
for up to 4 hours
• Sustainable, “green” building becoming
• Applied easily on-site
increasingly important in high growth
during construction
areas such as China and India
• Launched in the UK, Europe and
China, soon in the United-States

Pipeline 2011
Powder Coatings – LAT Pipe Coating
In-situ powder coating of pipe joints made possible

• Lower Application Temperature • Lower temperature cure will result
in energy savings for customers
(LAT) reduces pre-heating • Powder coated field joints offer
temperature from 230°C to 180°C better protection than current
• Makes in-field coating of pipe alternatives
joints with powder coatings an
economic i proposition
iti Growth Potential
• Following successful trialing,
product launch will occur in late
2011
• Immediate potential sale for
coating 37,000 joints on a 225 km
pipeline
• Allows penetration of new markets
for single layer fusion bonded
epoxies: e.g. higher grade steels,
sensitive to temperatures above
200°C

Recent innovations
Powder Coatings - Interpon A 5000
First full-body monocoat powder coating used on a passenger
vehicle in Europe
p

• Unique
q matt black textured finish,, • Fewer process steps reduces both
developed with OEM stylists complexity and energy consumption
• A high performance system with unique • Improved environmental footprint
environmental advantages
• Ak
AkzoNobel
N b l supply
l bboth
th powder
d
coatings and plastic components
matching paint system through AAC
Growth Potential
• Commercial launch by PSA is under
discussion following successful trials
with prototype vehicle
• Potential penetration of the automotive
b d h ll market
body-shell k t
• Innovative design options open up for
automotive manufacturers

Recent innovations
S f
Surface Chemistry
Ch i t - STRUCTURE® CEL P
Polymers
l
Naturally-derived rheology control polymers
Features Customer Benefits

• Thicken and texturize shampoos, • Thicken personal care products
conditioners,, styling
y g products
p and more naturallyy
skin care systems • Attractive cost in use
• Enhance aesthetic properties in • Performance equivalent to
cleansing and conditioning synthetic
y benchmarks
products
Growth Potential
• Use of coatings chemistry in
personal care applications • Launched April 2011
• Fi
Firstt sales
l tto customers
t in
i US and
d
Europe

Recent innovations
S f
Surface Chemistry
Ch i t - Recentia
R ti TP™
Zeta Fraction™ Technology

Features Customer Benefits
• Based on Tanacetum Parthenium • Effectively diminish multiple skin
(Feverfew) leaf/flower/stem juice – irritant pathways
a safe
f and d efficacious
ffi i sustainable
t i bl
bio-active material • Potent antioxidant activity
• Process isolates active components • Growth Potential
gp
from living plant usinggppatented • Launched in US by J&J in 2009,
solvent-free electrokinetic (zeta) Launched in Europe in multiple
potential fractionating technology brands & applications in 2011
• No chemical modifications • Non-exclusive fraction; new
promotional channels under
nder
evaluation

Recent innovations
S f
Surface Chemistry
Ch i t – Hybrid
H b id polymers
l
Used in cleaning and personal care applications

Key features Growth potential
• Advantages include: reliability • Major players in consumer
of supply,
pp y, sustainability
y and cleaning
g markets showing g interest
cost • Biggest opportunity is in laundry
• Biodegradable and and the second in automatic
environmentally friendly dishwasher detergents
Customer benefits
• Cut back on CO2 emissions
• Improving their green credentials

Recent innovations
Industrial Chemicals – Meso tartrate (mTA)
The next green generation anti-caking agent for salt

• Fully biodegradable and • 5% lower power consumption in Cl2
safe production
• Superior performance in • Increased membrane and electrode
membrane electrolysis lifetimes
chlorine production • Explosive NCl3 formation risk
• Full dosing & application eliminated
technology package
Growth potential
• Successful launch into the European
market
• Being trialed in China – a 28M
tonne/annum vacuum salt market
• Extension into de-icing and edible salt
pp
applications

Recent innovations
Decorative Paints – Sikkens EcoSure
An eco-friendly product range, supporting a fully integrated
sustainability concept for the professional market

• A full range of interior and • All products meet the criteria of the
exterior wall
wall, trim and European Ecolabel and offer at least
woodcare products one additional eco-benefit (identified
• Optimal balance between low by the eco-droplet on the can for easy
environmental impact, high recognition)
quality & total lifecycle footprint • Similar application characteristics as
• Minimized VOC (zero where alternative solvent-based products
possible) and low embodied
carbon
b Growth potential
• Full range launched in the Netherlands
and Belgium; roll-out elsewhere in
Europe in progress
• Further additions to the range expected
from the end of 2012 onwards

Safe Harbor Statement
This presentation contains statements which address such key issues as

AkzoNobel’s growth strategy, future financial results, market positions, product
development, products in the pipeline, and product approvals. Such statements
should be carefullyy considered,, and it should be understood that manyy factors could
cause forecasted and actual results to differ from these statements. These factors
include, but are not limited to, price fluctuations, currency fluctuations, developments
in raw material and personnel costs, pensions, physical and environmental risks, legal
issues, and legislative,
g fiscal, and other regulatory
g y measures. Stated competitive
p
positions are based on management estimates supported by information provided by
specialized external agencies. For a more comprehensive discussion of the risk
factors affecting our business please see our latest Annual Report, a copy of which
can be found on the company’s
p y corporate
p website www.akzonobel.com.

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Goldman Sachs European Chemicals 2020

Goldman Sachs European Chemicals 2020 Vision Conference 1

Revenue by business area EBITDA* by business area

34% 33% 31% Performance Coatings

46% Decorative Paints

Goldman Sachs European Chemicals 2020 Vision Conference 2

Population growth Climate change

Quality of life Scarcity of natural resources

Goldman Sachs European Chemicals 2020 Vision Conference 3

• Grow to €20 billion revenues

Sustainable growth is a prerequisite for future profitability

No. 1 Performance Coatings

• Our leading market positions provide us with scale benefits

Goldman Sachs European Chemicals 2020 Vision Conference 5

High growth markets’ profitability is above average

Goldman Sachs European Chemicals 2020 Vision Conference 7

• Functional solutions in key market

Our more centrally led RD&I efforts 32%

Our scale leads to superior absolute Non-residential construction

spend versus our peers Transport

• Major innovations that result in a significant competitive advantage

Goldman Sachs European Chemicals 2020 Vision Conference 8

Goldman Sachs European Chemicals 2020 Vision Conference 9

Exterior wall paints Metal roof coatings

Goldman Sachs European Chemicals 2020 Vision Conference 10

Thinner automotive &

Foul release coatings

Goldman Sachs European Chemicals 2020 Vision Conference 11

• Naturally derived chelating agent

• Does not contribute to eutrophication

Goldman Sachs European Chemicals 2020 Vision Conference 12

Quarterly EBITDA* margin in %

* Before incidentals 2011 2012 Target range

Quarterly price/mix development in % year-on-year

Deliver structural competitive advantage

Full EBITDA impact of €500 million in 2014

Goldman Sachs European Chemicals 2020 Vision Conference 15

• Comprehensive – all functions,

Goldman Sachs European Chemicals 2020 Vision Conference 16

• We are delivering on price increases

Goldman Sachs European Chemicals 2020 Vision Conference 17

Goldman Sachs European Chemicals 2020 Vision Conference 18

Goldman Sachs European Chemicals 2020 Vision Conference 19

Some of our strong brands Revenue by geography

Goldman Sachs European Chemicals 2020 Vision Conference 20

Marine and Protective

Goldman Sachs European Chemicals 2020 Vision Conference 21

Revenue by business unit Revenue by geography

Goldman Sachs European Chemicals 2020 Vision Conference 22

6% General Industrial Coatings

Source: Company Reports

Goldman Sachs European Chemicals 2020 Vision Conference 23

Goldman Sachs European Chemicals 2020 Vision Conference 24

Ratio, % Q1 2012 Q1 2011

Revenue development Q1 2012 vs. Q1 2011

* Before incidentals Increase Decrease

• Revenue up 4 percent versus last year driven by favorable price/mix

• Revenue up 11 percent and EBITDA up 15 percent,percent supported by margin

* Before incidentals Goldman Sachs European Chemicals 2020 Vision Conference 27

• Revenue increased by 4 percent, mainly due to the Boxing Oleochemcials

€ million Q1 2012 Q1 2011

Ratio Q1 2012 Q1 2011

Goldman Sachs European Chemicals 2020 Vision Conference 29