Akzo

October 21, 2010 Investor Update Q3 2010 results

Agenda
• • • • • AkzoNobel at a glance Strategic ambitions Q3 2010 highlights and operational review Financial review Outlook 2010

Investor update Q3 2010 results

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AkzoNobel key facts
2009 • Revenue €13.0 billion • 54,738 employees • EBITDA: €1.7 billion* • EBIT: €1.1 billion* • Net income: €285 million • Leader in Dow JonesSustainability Index Revenue by business area EBITDA* by business area

33%

32% 41%

32%

Performance Coatings

35%

27%

Decorative Paints Specialty Chemicals

* Before incidentals. All data after reclassification of National Starch Investor update Q3 2010 results 3

The global paints and coatings market is around €70 billion 70
% of market 100% is around €70 billion

WoodFinishes General Industrial Coatings
6% 10%

Decorative 44%

Decorative

Car Refinishes
7%

Performance 56%

3% 6%

Marine and Yacht

Protective coatings
2% 9% 8% 3% 2%

Special purpose Auto OEM, metal, plastics

Source: Company Reports Investor update Q3 2010 results

Coil Coatings Packaging Coatings Powder Coatings
4

AkzoNobel is the world’s largest Coatings supplier
2009revenue in € billion 10

8

6

4

2

0

Investor update Q3 2010 results

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Excellent geographic spread of both revenue and profits
High-growth markets are important (37% of revenue) growth
% of 2009 revenue

39% ‘Mature’ Europe

21% North America

7% ‘Higher-growth’ Europe 4% ME&A 20% Asia Pacific

9% Latin America

High-growth markets profitability is above averagegrowth
Investor update Q3 2010 results 6

Strong portfolio with leading positions
2009 Revenue 2009 EBITDA*

Leading market position results in superior level of profitability
* Before incidentals

Investor update Q3 2010 results

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Strategic ambitions

Investor update Q3 2010 results

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We want to be the world’s leading Coatings and Specialty Chemicals company
Ourmedium-term strategic ambitions are: term
Value – accelerated growth • Grow to €20 billion revenues 20 • Increase EBITDA* each year, maintaining a 13-15% margin 15% level • Reduce OWC percent of revenues** year-on-year by 0.5 year towards a 12% level • Pay a stable to rising dividend Values – sustainable growth • Top quartile safety performance • Top 3 in DJSI*** • Top quartile performance in diversity,employee engagement and talent development • Top quartile eco-efficiency improvement rates

*

Absolute earnings before interest, tax, depreciation and amortization, before incidentals

** Operating Working Capital at year end as a percentage of quarter*4 revenue *** Dow Jones Sustainability Index

Investor update Q3 2010 results

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Q3 2010 highlights and operational reviewInvestor update Q3 2010 results

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Q3 2010 highlights
• • • • • • • • Revenue €3.9 billion (2009: €3.4 billion), up 13 percent 3.9 (5 percent in constant currencies) EBITDA* €574 million (2009: €528 million), up 9 percent 574 (2 percent in constant currencies) EBITDA* margin 14.8 percent (2009: 15.4 percent) Sale of National Starch completed on October 1 Two bolt-on acquisitions closed inPerformance Coatings on Interim dividend of €0.32 declared, up 7 percent 0.32 New medium-term ambitions announced term Outlook unchanged: we remain cautiously optimistic

* Before incidentals Investor update Q3 2010 results 11

Revenue growth and margin development per quarter to Q3 2010
Reported revenue in % year-on on-year
18% 8% 15% 13%

EBITDA* margin in %
20.0% 14.4% 13.4% 14.8%

*Before incidentals Investor update Q3 2010 results

2009

2010
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Volume and price development per quarter to Q3 2010
Volume development Decorative Paints Performance Coatings Specialty Chemicals AkzoNobel Q3 09 Q4 09 Q1 10 (9) 5 (11) (2) 8 (6) (8) 4 1 15 10 Q2 10 1 12 15 8 Q3 10 5 10 4

Price development Decorative Paints Performance Coatings Specialty Chemicals AkzoNobel

Q3 09 Q4 09...