Investor update

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AkzoNobel investor update The Premium Review 2016 Maëlys Castella December 1, 2016

Global paints, coatings and specialty chemicals company €14.9 billion revenue (2015) €2.1 billion EBITDA (2015) 80+ countries

45,600 employees (2015) Leadership positions in many markets

Revenue by Business Area

33%

40%

Performance Coatings

Operating income by Business Area

3% 17%

27%

35%

Specialty Chemicals

10%

45%

Decorative Paints 27%

Revenue by geographic region North America Latin America Mature Europe Emerging Europe 7%

20%

36%

Asia Pacific Other

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Buildings and infrastructure New build projects Maintenance, renovation & repair Building products and components

Consumer durables Consumer packaged goods

Transportation

43% 17% of revenue

Consumer goods

Automotive OEM, parts and assembly Marine and air transport

of revenue

18% 22% of revenue

Automotive repair

Natural resource and energy industries Process industries

of revenue

Industrial All percentages based on 2015 revenue

Strategy delivering results and building foundation for continuous improvement Transformation | New operating models for all Business Areas Realignment of the functions

Achievements

Operational optimization; reduction in: – Factory footprint – Enterprise Resource Planning systems – SKUs Portfolio optimization with selected divestments Proactive management of pension liabilities Continued focus on sustainability Core principles and values | Human Cities

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We delivered all 2015 financial targets Return on sales %

Return on investment %

(Operating income/revenue)

(Operating income/average 12 months invested capital) 15.0 16 14.0 14.0

12

9.8

10.6 9.0

12

8

5.9*

6.6

6.9

8.9*

9.6

10.0

2013

2014

8

4

4

0

0 2012

2013

2014

2015**

2015

2015 Target

2012

2015**

2015

2015 Target

Net debt/EBITDA = 0.6 (target: <2.0) Exceeded 2015 targets * Excluding impairment (€2.1 billion) and after IAS19

** Excluding incidental items

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Strategy will be maintained and move towards the next phase Historical issues Return on sales below peers Not earning our cost of capital Inadequate free cash flow

Building the foundation Vision and strategy: Organic growth

Continuous improvement

Limited economic recovery

Organic growth

Operational excellence Sustainability

Operating expenses too high

Not leveraging scale

External environment

Slowing emerging markets

2015 targets: ROS 9%; ROI 14% Aligned remuneration Core principles and values

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Focus will shift towards continuous improvement and growth Hardwire new organization model

Deliver continuous improvement culture

Build further operational excellence

Drive organic growth and innovation

Pursue value generating bolt-on acquisitions

Next steps

Culture Core principles and values Sustainability – Planet Possible Society – Human Cities

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Vision confirmed; financial guidance 2016-2018 Vision: Leading market positions delivering leading performance

Guidance 2016-2018: Return on sales: Return on investment:

9-11% 13-16.5%

Clear aim to build on the foundation we have created and grow in line or faster than our relevant market segments

Key assumptions: Currencies versus €: $1.1, £0.71, ¥7.1 Oil price ~$60/bbl ; no significant market disruption ROS% = EBIT/revenue. Moving average ROI (in %) = 12 months EBIT/12 months average invested capital

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Mixed volume development for 2016 and deflationary pressures continue Performance Coatings

Decorative Paints

Specialty Chemicals

AkzoNobel

Quarterly volume development in % year-on-year 6 4

3%

2

1%

0% 0 -2

-2%

2015 2016

-4

Quarterly price/mix development in % year-on-year 2 0 -2

-1% -2%

-2% -3%

-4

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Acquisition of BASF Industrial Coatings will strengthen market leading positions Agreed offer to acquire BASF's Industrial Coatings business for €475 million Business generated revenue of about €300 million in 2015 Will strengthen our position in the Coil Coatings market Supplies products for a number of end uses, including coil, furniture foil and panel coatings, wind energy, general industry and commercial transport Fits well with our existing business Expected to be completed before end 2016

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Profitability continues to improve, despite adverse currency and price/mix effects Revenue (€ million)

3,760

Q3 2015

EBIT* (€ million)

ROS %**

Moving average ROI %**

3,600

Q3 2016

436

442

Q3 2015

Q3 2016

11.6

12.3

13.0

Q3 2015

Q3 2016

Q3 2015

15.2

Q3 2016

*EBIT = Operating income excluding incidentals **ROS% = EBIT/revenue and Moving average ROI (in %) = 12 months EBIT/12 months average invested capital

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Q3 profitability improved overall and for all Business Areas Volume growth in Decorative Paints and Specialty Chemicals Revenue down, due to adverse currency and price/mix effects EBIT and operating income higher ROS* and ROI* improved Net income attributable to shareholders was €285 million

Net cash inflow from operating activities up at €600 million Interim dividend up 6 percent to €0.37 per share Outlook

Outlook unchanged. The market environment remains uncertain with challenging conditions in several countries and segments. Deflationary pressures and currency headwinds are expected to continue.

We maintain our financial guidance 2016-2018

AkzoNobel collaborating with Shanghai’s Jing’an District to revitalize local communities

*ROS% = EBIT/revenue. Moving average ROI (in %) = 12 months EBIT/12 months average invested capital

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Support functions are progressing towards the future operating model Decentralized functions

Function reporting and alignment

Shared services/ outsourcing

Global Business Services

Human Resources Information Management Finance Procurement (non product related)

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Further de-risking of pension liabilities, including £2.6 billion non-cash buy-ins* Other post-retirement benefits

Various activities to reduce liabilities

Other pension plans CPS UK

100 £8.2 billion insurance buy-ins for UK schemes (2014-16). $0.7 billion buy-out relate to a US scheme (2013)

ICI PF UK

2 16 21

Active management of interest rate and inflation exposure, with around 80 percent of overall defined benefit obligation risks hedged

80 61

60

Almost 60 percent of longevity risk is covered by insurance contracts and hedging Defined benefit obligations

Interest and Longevity hedging inflation hedging

*Total year to date September 2016

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Interim dividend up 6 percent and policy of “stable to rising” Dividend policy is to pay a “stable to rising” dividend each year

Dividends € per share

Dividend paid in cash, unless shareholders elect to receive a stock dividend (normal uptake 35-40 percent)

1.12 1.12

1.12

1.12

1.20

2015 dividend up 7 percent to €1.55 per share 0.33

0.33

0.33

0.33

0.35

0.37

Interim dividend 2016 up 6 percent to €0.37 per share (2015: €0.35) Final dividend

2012

2013

2014

2015

2016

Interim dividend

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Recent highlights from our Human Cities, innovation and sustainability activities

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A strong case for investment Portfolio of businesses with leadership positions in many markets

Strong global brands in both consumer and industrial markets Long-term growth potential from end-user segments Balanced exposure across geographic regions Track record of improving returns and cash flow

History of successfully commercializing innovation Clear leader in sustainability Commitment to Human Cities

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Appendix

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Core principles and values in place; Incentives aligned with strategy Customer Focus

Core principles: Safety Integrity Sustainability

Deliver on Commitments

We do what we say we will do

Passion for Excellence

We strive to be the best in everything we do, every day

Winning Together STI Element

We build successful partnerships with our customers

Metric *

We develop, share and use our personal strengths to win as a team LTI Element

Metric

20%

Return on investment

35%

Return on investment

20%

Operating income

35%

Total Shareholder Return

30%

Operating cash flow

30%

30%

Personal targets – partly related to strategic targets

Sustainability / RobecoSAM - DJSI

*A new metric, revenue growth, was approved at the AGM 2016. It has been introduced for some executives.

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Visions confirmed; performance ranges 2016-2018 Specialty Chemicals

Performance Coatings

Decorative Paints

Vision:

Vision: Leading market positions delivering leading performance

Vision: The leading global Decorative Paints company in size and performance

Performance range 2016-2018: Return on sales: 12-14% Return on investment >25%

Performance range 2016-2018: Return on sales: 8-10% Return on investment: >11.5%

Delivering leading performance based on sustainable chemical platforms driving profitable growth in selected markets Performance range 2016-2018: Return on sales: 11.5-13% Return on investment: >16%

Clear aim to build on the foundation we have created and grow in line or faster than our relevant market segments Key assumptions: Currencies versus €: $1.1, £0.71, ¥7.1 Oil price ~$60/bbl ; no significant market disruption ROS% = EBIT/revenue. Moving average ROI (in %) = 12 months EBIT/12 months average invested capital

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