Investor Update Paris Autumn Conference


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Investor Update Paris Autumn Conference September 18, 2014

AkzoNobel today • Revenue €14.6 billion • 49,560 employees • 44% of revenue from high growth markets • Major producer of Paints, Coatings and Specialty Chemicals • Leadership positions in many markets Revenue by Business Area

Operating income by Business Area

Invested capital by Business Area 12% 24%

24% 34%

38%

Decorative Paints

43%

Specialty Chemicals

36% 28%

33%

6.6% Return on sales (operating income/revenue)

Performance Coatings

28%

Other

9.6% Return on investment (operating income/average 12 months invested capital) Investor update - Paris Autumn Conference

2

~44% of revenues

~16% of revenues

New Build Projects

Automotive OEM, Parts and Assembly

Maintenance, Renovation & Repair Building Products & Components

~16% of revenues Consumer Durables Consumer Packaged Goods

Automotive Repair Marine and Air Transport

~24% of revenues Natural Resource and Energy Industries Process Industries

Investor update - Paris Autumn Conference

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There will be increasing pressure in our end user segments to improve resource efficiency This will drive change in our end user segments by 2050*

• Resource scarcity will lead to higher resource costs • Users will be increasingly charged for externalities

• • • •

Mandatory thermal integrity standards 95% of new building stock using zero net energy Huge increase in energy efficiency retrofitting <6% buildings heated with fossil fuels

• • • • •

Universal access to low carbon transport Super efficient and aerodynamic planes Reductions in carbon emissions 80% reduction light duty vehicles 50% reduction shipping/freight



People use only 5 tonnes of non-renewable materials (down from 85 in the US) Customers expect long lasting, efficient products Recycling is integrated into business models

• • • • • * Based on World Business Council for Sustainable Development Vision 2050

4 -10 fold improvement in eco-efficiency of resources and materials from 2000 Closed loop processes, making landfill obsolete Cooperation across sectors the norm Investor update - Paris Autumn Conference

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Our sustainability strategy: Creating more value from fewer resources More customer value in our end-user segmentation

Resource scarcity across the value chain will create opportunities Scope 3 upstream

Scope 1 and 2

Raw materials

Own operations, including energy use

Scope 3 downstream

Customer operations

End-user

End of life

Scope 4 Energy/ resource benefits in use

Investor update - Paris Autumn Conference

5

By focusing on the full value chain, we will drive business, resource and engagement benefits Scope 3 upstream

Scope 1 and 2

Raw materials

Own operations

Scope 3 downstream

Customer operations

End-user

End of life

Scope 4 Energy/resource benefits in use Sustainable business

Cost savings

Cost savings

Improve revenue and margin

Improve revenue and margin

Resource efficiency

Reduced material and energy use

Reduced energy used

Reduced material and energy use in customer processes, application

Reduced material and energy use in product use

Capable, engaged people

Engaged suppliers

Engaged employees

Engaged customers

Engaged customers and users

Investor update - Paris Autumn Conference

6

End-user segment trends, combined with sustainability, direct our innovation spend

End-user segments

Sustainability

Direction of Sustainability = Business

innovation

Business = Sustainability

spend (2.6% of 2013 revenue)

End-user segment trends, combined with sustainability, direct our innovation spend Investor update - Paris Autumn Conference

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Sustainability highlights • No.1 in prestigious 2014 Dow Jones Sustainability Index • High scores in all 3 dimensions: DJSI dimension

2011 score

2012 score

2013 score

2014 score

Economic

93

92

89

96

Environmental

91

94

92

96

Social

85

92

91

89

Total

89

93

90

94

• Safety improvement: our total reportable rate of injuries (TRR) per million hours worked is now 2.3 (26% reduction versus 2011) • Our safety performance is improving but not yet leading: Total reportable injury rate (TRR) Reportable injuries per million hours worked

8 6 4 2 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 AkzoNobel DuPont

DSM Syngenta

PPG Bayer

Dow

Investor update - Paris Autumn Conference

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Our Strategic Targets

of return on sales (operating income/revenue) by 2015

of revenue by 2020 from products that are more sustainable for our customers than the products of our competitors

of return on investment (operating income/revenue) by 2015

more efficient resource and energy use across the entire value chain by 2020 (measured by carbon footprint reduction)

Maintain net debt/EBITDA lower than 2.0 by 2015

(Resource Efficiency Index) A new indicator measuring how efficiently we generate value (expressed as gross profit divided by cradle-tograve carbon footprint) Investor update - Paris Autumn Conference

9

Both short & long term incentives have been aligned with our priorities Executive short term incentive 2014 STI Element

Metric

Executive long term incentive 2014 LTI Element

Metric

20%

Return on investment

35%

Return on investment

20%

Operating income

35%

Total Shareholder Return

30%

Operating cash flow

30%

Sustainability / SAM - DJSI

30%

Personal targets – related to performance improvement plan

• Covers more than 600 executives • Priorities are aligned with strategy and 2015 targets

Investor update - Paris Autumn Conference 10

Sustainability: One of the core principles

Investor update - Paris Autumn Conference 11

Financial targets – progress made to date Return on sales – 2015 target 9.0% AkzoNobel

16

12 8.0

7.4 8

5.9

12

FY2012

9.5

8.9

7.8

8

4

1H2013 1H2014

4 0

0 %

Return on investment – 2015 target 14.0%*

FY2012

1H2013

1H2014

%

FY2012

1H2013

1H2014

Return on sales

Business Areas

16 12 8 4 0 %

6.9

9.5

10.5

11.0

9.0

8.8

10.6

6.1

2.2

Decorative Paints

Performance Coatings

Specialty Chemicals

Return on investment 32 21.7

24

21.0

22.1 13.6

16

13.6

6.2

8

3.0

0 %

Decorative Paints **

2.7

11.5

Performance Coatings

* Adjusted for 2012 impairment charge (€2.1 billion), 2013 impairment charge (€139 million) and sale of Building Adhesives ** Adjusted for 2012 impairment charge (€2.1 billion) and sale of Building Adhesives *** Adjusted for 2013 impairment charge (€139 million)

Specialty Chemicals *** Investor update - Paris Autumn Conference 12

We are making progress towards the 2020 sustainability targets Eco-premium solutions

Carbon emissions

Resource Efficiency Index

In % of revenue

% reduction CO2(e) per ton of sales from 2012

Gross profit/CO2(e) indexed

25-30 111 106

20 17

2012

18

109

105

100

2 0

2013

2020 target

Our Eco Premium Solutions metric compares our products and solutions with the mainstream in the market

2012

2013

2020 target

We reduced our resource and energy use (as measured by CO2) over the entire value chain by 2% vs 2012

2009 2010 2011 2012 2013

This metric connects financial value with resource efficiency, which we want to improve

Investor update - Paris Autumn Conference 13

Eco-premium solutions : Definition A product qualifying for the list of AkzoNobel Eco-premium solutions must meet the following criteria when assessed against the competing mainstream products/solutions: 1.

It provides the same or better functionality for the customer application.

2.

When assessed along the full value chain against the following criteria: • Energy efficiency (consumption) • Use of natural resources/raw materials • Emissions and waste • Toxicity • Risks (for accidents during production, transportation etc.) • Land use • Health/wellbeing a. b.

It is significantly better in at least one aspect (mind set 10% difference across the value chain). There are no significant measurable or perceived adverse effects in any other of the criteria.

Our focus is on Eco-premium solutions with downstream benefits

Investor update - Paris Autumn Conference 14

Eco-premium solutions :Top line and bottom line growth opportunities Eco-premium solutions stimulate top line and bottom line growth opportunities because they provide improvements in areas such as:

Raw material use

• Lower carbon footprint • Reduced volume • Environmentally beneficial alternatives

Production and application

• Less pollution and waste from manufacturing processes • Lower energy consumption during application • Enables water-based formulations

Product performance

• Enables reduced energy consumption • Non-toxicity enables re-use and recycling of materials

Investor update - Paris Autumn Conference 15

Innovation Pipeline Eco-premium solutions: Marine Coatings Intersleek® 1100 SR Key Features

Growth Potential

Customer Benefits

• Unique slime release coating based on proprietary fluoropolymer technology

• Launched globally in February 2013

• Reduced hydrodynamic drag and improved vessel efficiency due to ultra-smooth surface

• Enhanced slime release properties with improved static anti-fouling performance • Biocide-free; low VOC content

• Predicted to reach current Intersleek® 900 volumes within a year of launch

• Significantly reduced levels of slime in-service leading to: – reduced fuel consumption over the full docking cycle – reduced need to clean vessel hull

Biocide-free, slime-release fouling control coating

Investor update - Paris Autumn Conference 16

Innovation Pipeline Decorative Paints: Coral Coralit Zero Key Features

Customer Benefits

Growth potential

• Premium waterborne with excellent finish • Very fast drying – 2 hours between coats

• Odorless, quick drying and non- • Launched in Brazil and yellowing extended into Argentine market – reduced marketing complexity • Improved open time – better in LATAM spreading and levelling

• High blocking resistance “same day” concept

• Easier cleaning of application tools (brush, roller & spray-gun)

• Low VOC emission - >60% less than previous formulation

• An affordable enamel – great value for money

• Scope for introducing quality improvements and cost savings into the European and Asian markets • Potential to deliver sustainability targets of VOC emissions and eco–premium sales

New waterborne enamel with superior performance for the LATAM decorative market

Investor update - Paris Autumn Conference 17

Innovation Pipeline Industrial Chemicals: Ecosel® AsphaltProtection Key Features

Growth Potential

Customer Benefits

• Additive to de-icing brine in small amounts

• Product to be launched in Q12014

• Up to 50% less winter damage to road surface

• Prevents formation of hard ice inside asphalt pores

• Global potential: all roads subject to wintry conditions

• Substantial savings on road maintenance and repair

• Reduces frost damage to roads substantially

• Asphalt lifetime extended • Contribution to traffic safety

• Harmless to people and nature • Eco-premium product

Reducing frost damage to roads

Investor update - Paris Autumn Conference 18

Innovation Pipeline Decorative Paints: Rubbol Satin Key Features

Customer Benefits

Growth Potential

• Cobalt-free technology

• Long-lasting paint film

• High whiteness and low yellowing

• Very easy to apply

• Launched by Sikkens France in March 2014

• Creamy aspect

• Very good opacity and edge covering

• Good mechanical resistance

• Best indoor air quality rating: A+ • Available in ready mixed White and 3 Acomix base paints

• Further launches planned under French professional brands Levis and Astral

• Additional launches expected in other European countries, e.g. Germany and Belgium

A high performance, soft-sheen, solvent-based lacquer for interior use in the professional market

Investor update - Paris Autumn Conference 19

Innovation Pipeline Vehicle Refinishes : Sikkens AutoClear 2.0 Key Features

Customer Benefits

Growth Potential



• Greater efficiency in bodyshop processes:

• Product gradually launched in Europe in 2014

High-performance clearcoat finish based on patented binder technology



Combines quick and easy application with outstanding drying characteristics



Unique environmental advantages through 17.5 percent renewable ingredients



Drawn on experience by working together as partner with the McLaren Formula One racing team

− reduced mixing and drying times − immediate handling, polishing and reassembly after drying

• Future-proof platform, strengthening the position in mature markets

• Reduced waste and energy costs • Improved booth occupancy through increased scheduling flexibility

Sustainable clear coat system with outstanding drying characteristics & appearance Investor update - Paris Autumn Conference 20

Innovation Pipeline Surface Chemistry: DERMACRYL® 2.0 Key Features

Customer Benefits

Growth Potential



Waterproofing film-former designed for use in ethanolbased sunscreens



Improved skin feel



Launched globally in 2014



Protection from exposure to sunlight as well as water





Higher sun protection factor (SPF) performance in ethanolbased systems vs competition



Less UV actives for higher SPF performance

Builds on the market-leading position of our DERMACRYL® 79 technology



Improved aesthetics - lower formulation tack and shine



Potential formulation cost savings



Provides water barrier protection



Patent pending

Enhanced performance and improved economics in ethanol-based sunscreen formulations Investor update - Paris Autumn Conference 21

Human Cities manifesto • More than half of the world’s population now lives in cities. • According to forecasts, by 2050, more than 75 percent of the world’s population will live in cities

• 60 percent of our products are in the Buildings and Infrastructure and Transportation end-user segments. AkzoNobel is therefore fundamental to the process of urban transformation that’s taking place today • To cope with this mass migration, cities tend to choose standardized solutions. As a result, we are generating and regenerating urban areas that are grey, lifeless and anonymous. • Most people only think of the functional aspects of a city

• We want to go beyond that and connect cities and citizens on an emotional level. That’s why we’ve launched our Human Cities manifesto

Investor update - Paris Autumn Conference 22

Human Cities manifesto • • • • •

Add color to exterior and interior spaces Help to preserve heritage, nurturing collective identity Support the development of effective transportation infrastructures in and between cities Invest in education and sport initiatives Use our products to do more with less, cutting building emissions and enhancing sustainability

Investor update - Paris Autumn Conference 23

The three key elements to safety People

Product

• During 2013, 96% of our manufacturing sites implemented behavior-based safety

• Committed to reducing the use of substances in our products that may pose a significant risk to long-term health or the environment

• A common set of Life-Saving Rules has been introduced for all employees • We achieved significant progress in total reportable injury rate towards our targets of <2 by 2015 and <1 by 2020

• Identify and review hazardous substances which are then scored. Higher score substances are designated as priority • By 2013, reviewed and risk managed 90% priority substances. Of these, 48 will be phased out, 35 restricted in use and 7 have been delisted

Process • A company-wide process safety management (PSM) framework is to be rolled out in 2014

3.6 3.1 2.4

2.3

<2 <1

2010

2011

2012

2013

• 93% of our high hazard sites reached the reference level for process safety performance in our self assessment questionnaire

2015 target2020 target

Investor update - Paris Autumn Conference 24

Talent development • In the highly competitive markets in which we ViewPoint score employee engagement operate, it is our people who are the differentiating (1 to 5 scale) factor in ensuring our sustainable success • It is therefore our mission to create a work environment in which people feel valued, are engaged with our core principles and values and are given the right conditions in which they can perform at their best • We use out ViewPoint employee engagement survey to give employees the opportunity to have their say and to monitor progress. On a 1 to 5 scale, the score has increased year on year and we are on track to achieve target >4 by 2015

>4 3.74

3.8

2011

2012

3.88

3.56

2010

2013

2015

Investor update - Paris Autumn Conference 25

Diversity and inclusion Diversity and inclusion at AkzoNobel is all about creating winning teams.

Female Executives in %

Our initiative is built around four key strategic ambitions: • Create a sustainable and diverse workforce

20

• Build a strong and diverse leadership pipeline • Engage managers to build and lead diverse teams • Create a highly inclusive work environment

8

10

12

2008

2009

2010

13

15

16

2011

2012

2013

2015 target

Investor update - Paris Autumn Conference 26

Community Community Program

Education Fund

• This program encourages sites and individuals to • Focused on young people in developing countries, take part in projects where our products/resources this fund has supported a wide range of projects and the skills and knowledge of employees can since its creation in 1994. benefit the wider community. • During 2013, the fund supported a project in Brazil • Since the start in 2005, more than 11,000 which involved training deprived young people in volunteers from around 55 countries have worked Natal to become stewards for the 2014 football on more than 2,200 projects, representing World Cup. A total of 147 underprivileged approximately 14 million Euros of investment. youngsters graduated from the program. • During 2013, 207 new projects were initiated globally (see chart below for geographic spread)

Asia

• This program focuses on two main areas – developing talent in communities through education initiatives, and supporting heritage, culture and the arts and sciences.

Other Regions

Latin America North America

Global sponsorship program

Europe

• Recent agreements have been with the Rijksmuseum and the Van Gogh Museum. Other ongoing sponsorships are with partners such as the Courtauld Institute and the McLaren Group. Investor update - Paris Autumn Conference 27

Waste and water management Waste

Water









• •

Effective waste management helps to increase raw materials efficiency in our manufacturing operations while reducing both our environmental footprint and costs. Our focus is on reducing total waste and eliminating hazardous waste to landfill. In 2013, total waste per ton of production generated and leaving our sites was down 18 percent to 9.0 kg/ton. The total waste volume fell to 161 kilotons, a decrease of 21 percent. The indicative monetary value of the total waste reduction is 16 million Euros. Hazardous waste per ton of production reduced to 3.5 kg/ton The non-reusable hazardous waste to landfill was down 29 percent to 1.9 kilotons.





Sustainable water supply is essential to life – and to the sustainability of our business. Around 88 percent of our fresh water intake is from surface water and 88 percent of our intake is used for cooling and is only slightly heated. We continue to reduce the chemical oxygen demand of our effluent to surface water. In 2013 , fresh water per ton of production was down to 14.9 m3/ ton and total fresh water use was 265 million m3, a decrease of 6 percent on 2012. In 2013, the COD load to surface water per ton of production reduced to 0.08 kg/ton and the total COD load to surface water was down 10 percent on 2012 , to 1.4 kilotons.

Investor update - Paris Autumn Conference 28

Conclusion • Sustainability is fully integrated into our processes and our mindset

• We are well positioned to benefit from end-market trends • We believe we have the right strategy in place and you can see progress is being made • We will continue to improve in people, process and product safety, while maintaining our integrity management processes and our community involvement • We launched the Planet possible concept to create uniform communication within the organization. It combines planetary challenge and business benefits • Targets are embedded in remuneration • We can only develop a high performance culture that focuses on operational excellence when all our employees are fully engaged to excel

Investor update - Paris Autumn Conference 29

Appendix

Investor update - Paris Autumn Conference 30

The global paints and coatings market is around €80 billion By market sector 2013, 100% = €80 billion

Specialty Finishes

By end-user segment 2013, 100% = €80 billion

Yacht Aerospace Packaging Coil

Industrial Consumer Goods

Decorative Paints (42%)

Marine Wood

Buildings and Infrastructure

Automotive OEM

Powder Transportation Vehicle Refinish

Performance Coatings (58%)

General Industrial

Protective

Source: Orr & Boss; management analysis Auto OEM excludes Automotive Plastics. Specialty Finishes includes both Auto and Non-Auto plastics

Investor update - Paris Autumn Conference 31

AkzoNobel has many leading market positions No.1 Position

Decorative

Multiple regions outside North America North America*

Other key players PPG, regional players

Sherwin-Williams

PPG, regional players

Protective

Sherwin-Williams, Jotun

Powder

Axalta, Jotun, regional players

Auto refinish

Axalta

PPG, AkzoNobel

Wood

Sherwin-Williams, Valspar

Marine

Jotun, Chugoku

Coil

PPG, Beckers

* AkzoNobel not present with North America divestment to PPG

Investor update - Paris Autumn Conference 32

Decorative Paints business at a glance Revenue by end-user sub-segment

Revenue by geographic spread

8%

16%

4%

Mature Europe

Maintenance, renovation and repair 14%

Asia Pacific 49%

New build projects

84%

Decorative Paints key figures € million

2013

Revenue

4,174

EBITDA Operating income

362 200*

Return on sales

4.8%*

Return on investment

6.9%*

Employees

16,240

* Excludes a €198 million gain on the sale of Building Adhesives

Latin America Emerging Europe Other regions

25%

Key messages • We are the global leader in size in the attractive global Decorative Paints market • We are pursuing a vision of becoming the leading global Decorative Paints company in size and performance • Strategic priorities: – Fix Europe – Grow profitably in high-growth markets Investor Update Q2 2014 results 33

Decorative Paints Q2 2014 highlights =

€ million Revenue Operating income Ratio, %

Q2 2014

Δ%

1,074

-9

102

0

Q2 2014

Q2 2013

9.5

8.7

11.7

10.7

Return on sales Return on sales (excluding restructuring costs)

• Volumes up 3 percent compared with previous year • Revenues down 9 percent due to divestments and adverse currency effects • Price/mix driven by the sale of the German stores • Operating income flat, but return on sales higher than the previous year as a result of restructuring activities in Europe and improved margins

Increase

Revenue development Q2 2014 vs. Q2 2013 +3%

-3%

Decrease

-4% -4%

Volume

Price/Mix

Acquisitions/ Divestments

-5%

-9%

Exchange rates

Total

Investor update - Paris Autumn Conference 34

Performance Coatings business at a glance Revenue by end-user segment

14%

24%

Buildings and Infrastructure Transportation

25%

Revenue by geographic spread

11%

Mature Europe

27%

8%

North America Asia Pacific

Latin America

Consumer Goods

37%

4%

30%

Industrial

20%

Emerging Europe Other regions

Performance Coatings key figures € million

2013

Revenue

5,571

EBITDA

663

Operating income

525

Return on sales

9.4%

Return on investment

21.3%

Employees

21,360

Key messages • We have leading market positions • Strategic priorities include: – Performance improvement initiatives – Differentiated growth strategies

Investor update - Paris Autumn Conference 35

Performance Coatings Q2 2014 highlights € million

Q2 2014

Δ%

Revenue

1,434

-2

178

9

Operating income Ratio, %

Q2 2014

Q2 2013

Return on sales

12.4

11.2

Return on sales (excluding restructuring costs)

13.6

11.5

• Volumes increased 1 percent compared with previous year • Revenues down 2 percent, primarily due to adverse currency effects

• Operating income up 9 percent, return on sales at 12.4 percent (2013:11.2 percent) • Operating efficiencies visible despite higher restructuring charges

Increase

Revenue development Q2 2014 vs. Q2 2013

Decrease

+1%

+2%

0% -5% -2%

Volume

Price/Mix

Acquisitions/ Divestments

Exchange rates

Total

Investor update - Paris Autumn Conference 36

Business at a glance Revenue by geographic spread

Revenue by end user segment

18% 6% 57% 19%

5% 2% 10%

Buildings and infrastructure Transportation

Mature Europe North America 44%

Consumer goods Industrial

17%

Asia Pacific Latin America Emerging Europe

22%

Other regions

Specialty Chemicals key figures € million

2013

Revenue

4,949

EBITDA

726

Operating income*

418

Return on sales*

8.5%

Return on investment*

11.6%

Employees

10,430

* Excludes incidentals

Key messages • Serving attractive markets, growing over the cycle

• Leading positions in five main platforms • 56% of revenues generated outside of mature Europe • Significant expansion investments now operational • Driving functional excellence

Investor update - Paris Autumn Conference 37

Specialty Chemicals Q2 2014 highlights € million

Q2 2014

Δ%

Revenue

1,228

-2

124

2

Q2 2014

Q2 2013

Return on sales

10.1

9.7

Return on sales (excluding restructuring costs)

10.2

9.6

Operating income Ratio, %

Increase

Revenue development Q2 2014 vs. Q2 2013

Decrease

• Volumes up 4 percent compared with the previous year • Revenues down 2 percent, mainly due to adverse currency effects • Operating income up 2 percent at €124 million, due to cost control and operational efficiencies • Continuous improvement measures continue in all businesses • Start up of Imperatriz Chemical Island in Brazil and start up of commissioning in chlorine membrane electrolysis plant in Frankfurt

-1%

-1% +4%

Volume

Price/Mix

Acquisitions/ Divestments

-4%

-2%

Exchange rates

Total

Investor update - Paris Autumn Conference 38

Capital expenditure will be more in line with depreciation and amortization Capital Expenditures (millions €) 5.4% 4.6%

4.5% € 826 3.7%

€ 708

€ 666

€ 534

2010

2011

2012

Specialty Chemicals

Decorative Paints

Performance Coatings

Other



40-50% of capital expenditure is growth related



Going forward, capital expenditure will be around 4% of revenues, in line with depreciation and amortization

2013 % of revenues

Investor update - Paris Autumn Conference 39

Continuously reducing costs of long term bonds Debt maturities € million € bonds

Repaid 7.75%

£ bonds

$ bonds

4.00%

2.62%

7.25% 5.62%

825 622

379 2013

800

8.00%

2015

2016

2017

2018

Debt duration 3.6 years



Improving cash flow and divestments enabled full repayment of two maturing bonds without refinancing

750

306 2014



2019

2020

2021

2022

Average cost of long term bonds % 8 6 4

7.29

6.35

5.62

4.89

2011

2012

2013

2 0 2010

Investor update - Paris Autumn Conference 40

On track to deliver cash positive after dividend in 2015 Cash flow sources and uses

2012

• Restructuring and pension top-ups consume a significant proportion of cash

2013

• Performance improvement focus starts to address cash challenge • Remuneration metrics include cash generation • Positive cash in 2013 driven by divestments of Decorative Paints North-America and Building Adhesives Source

Use

Source

EBITDA

Pensions

CapEx

Divestments**

OWC

Provisions

Other*

Dividends

* Including interest and tax ** Including acquisitions, divestments and discontinued operations

Use

Investor update - Paris Autumn Conference 41

Pension cash flow guidance Defined benefit pension cash top-ups € million

2013 actual* 2014 -17 est.** 2018 est.**

311 ~330/year ~100

• Top-ups relate mainly to the 2 big UK plans, the ICI Pension Fund and the CPS Pension Scheme • Top-ups are based on prudent actuarial valuation of liabilities, which differs from accounting liability

• Actuarial pension deficit of the 2 big UK plans is estimated at €1.5-2 billion

Regular contributions

• The next triennial funding review for the ICI Pension Fund is expected to be completed in 2015 and in 2016 for the CPS Scheme

€ million 2014 estimated Defined benefit

110

Defined contribution

180

• The forward looking estimates make no allowance for changes in the funded status at future actuarial valuations or for additional contributions to de-risking such as the 2013 MetLife transaction in the US

*Excludes one-off contribution of €127 million to our US plan to part-finance the transfer of pensioners to MetLife in December 2013 Investor ** Based upon currently agreed deficit contribution schedules for the UK plans

update - Paris Autumn Conference 42

Dividend policy unchanged Dividends paid (€)

• Our dividend policy is to pay a stable to rising dividend each year

1.05

1.08

1.12

1.12

1.12

0.30

0.32

0.33

0.33

0.33

2009

2010

2011

2012

2013

Final dividend

• An interim and final dividend will be paid in cash unless shareholders elect to receive a stock dividend

Interim dividend

Investor update - Paris Autumn Conference 43

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 carefully considered, and it should be understood that many 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, fiscal, and other regulatory measures. Stated competitive 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 corporate website www.akzonobel.com.

Investor update - Paris Autumn Conference 44