December 14, 2012

Investor & analyst call

Agenda

• Supervisory Board statement

• Divestment of North American Decorative Paints Business

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Supervisory Board statement

Antony Burgmans

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Questions on Supervisory Board statement

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Divestment of North American Decorative Paints BusinessTon Büchner & Keith Nichols

Paints Business

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Transaction Summary

• AkzoNobel to divest its North American Decorative Paints business to PPG Industries IncPPG Industries, Inc.

• All Deco operations in US, Canada and Puerto Rico

• Retain strong presence in North America through Performance Coatings and Specialty Chemicals businessesand Specialty Chemicals businesses

• Combined revenues of $2.7 billion and close to 5,000 employees

• Decorative Paints North American business valued at $1.05 billion• Representing a multiple of 0.7 times revenues• Includes transfer of Canadian pension and employee benefit liabilities

- approximate value $175 million

• Cash proceeds of approximately $875 million • Will be deployed to support company strategy to build on leading positions in

high growth markets and to reduce net debt

• Completion expected during Q2 2013, subject to regulatory approvals

• Realized gain / loss on sale expected to be close to zero

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Transaction Rationale

Rigorous review of all options led to strategic decision to focus onRigorous review of all options led to strategic decision to focus on our strong positions in Europe and high growth markets

• Strengthening our Deco North American position further• Strengthening our Deco North American position further would require substantial investment

Allows us to further improve our financial ratios and reduce• Allows us to further improve our financial ratios and reduce our net debt position

T ti t b t l f h h ld• Transaction creates best value for shareholders

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Impact on Group RevenuesDeco North America 2011 Revenues €1 1blnDeco North America 2011 Revenues €1.1bln

By Business Area

33%34%2011

reported: €1

29%36%

2011 excl. NA Deco:Decorative

PaintsDecorative Paints

Specialty Chemicals

SpecialtyChemicals

33%

€15.7 bn

35%

€14.6 bn

Performance Coatings Performance Coatings

By GeographyNorth

North A iLatin Latin

Other Regions Other Regions

20%

7%

10%3%

14%

8%

11%4%

2011 2011 excl.

North America

America

Emerging Europe

Emerging Europe

Asia

Latin America

atAmerica

7%

38%

22%

40%

23%reported:€15.7 bn

NA Deco:€14.6 bn

EuropePacific Asia Pacific

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Mature Europe Mature Europe

Impact on key metrics for Decorative PaintsPaints

Decorative Paints 2011 reported 2011 excl NorthDecorative PaintsIn € millions

2011 reported 2011 excl. North America Deco

Revenues 5,296 4,228EBITDA 440 483EBITDA margin 8.3% 11.4%Operating income 137 241Operating margin 2.6% 5.7%ROI 3 5% 5 9%ROI 3.5% 5.9%

• Cash flow was negative for Deco North America in 2011

• OWC ratio was higher than Group

• During 2012, the NA Deco business turned slightly positive in EBITDA terms

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Other Considerations

• PPG will acquire the following main brands:PPG will acquire the following main brands:Glidden®, Flood®, Liquid Nails®, Sico®, CIL®

• Dulux brand licensed to PPG in Canada in perpetuity• AkzoNobel licensed to use Glidden brand in UK

• Canadian pension and employee benefit liabilities transferred to PPG

• US plan retained by AkzoNobel in its entirety• US plan retained by AkzoNobel in its entirety• No change to anticipated pension top-ups arising from this

transaction

• No significant conditions to completion

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Summary

• Transaction will allow for focused attention and resources onTransaction will allow for focused attention and resources on strong market positions and high growth markets

• Key ratios (ROS, ROI) will improve for Decorative Paints

• Cash proceeds will be used to support company strategy and reduce net debt

• More details on AkzoNobel strategic priorities during Strategy Update on February 20, 2013

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Questions on Divestment of North American Decorative Paints BusinessAmerican Decorative Paints Business

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Safe Harbor Statement

Thi t ti t i t t t hi h dd h k iThis 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

f t d d t l lt t diff f th t t t Th f tcause 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

iti b d t ti t t d b i f ti id d bpositions 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.

13Investor & analyst call 14 December 2012