Tomorrow’s Answers Today

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Tomorrows Answers Today

• Meet AkzoNobel

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Our company in brief

• The worlds largest paint and coatings company
  and a world leading chemicals producer
• Committed to delivering Tomorrows Answers Today
• Global Fortune 500 company
• For five consecutive years listed as one of the
  leaders of the Dow Jones Sustainability
  Indexes (Chemical sector)
• Values
• Focusing on our customers future first
• Embracing entrepreneurial thinking
• Developing the talents of our people
• The courage and curiosity to question
• Integrity and responsibility in our actions

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AkzoNobel key facts

• 2009
• Revenue 13.9 billion
• 57,060 employees
• EBITDA 1.8 billion
• EBIT 1.2 billion
• Net income 285 million
• Credit ratings BBB (SP) and Baa1 (Moodys)

Revenue by business area
EBITDA by business area
29
31
37
43
26
34
Before incidentals
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AkzoNobel is the worlds largestCoatings supplier
2008 revenue in billion
AkzoNobel
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Excellent geographic spread ofboth revenue and
profits
High-growth markets are important (37 of revenue)
of 2009 revenue
39
21
7
Mature Europe
20
North America
Emerging Europe
Asia Pacific
9
Latin America
4
Rest-of-world
High-growth markets profitability is above average
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Strong emerging markets growth potential
EmergingPer Capita
Mature Per Capita
ArchitecturalPaint
8 liters
lt 2 liters
Industrial andSpecial PurposeCoatings
13 liters
lt 6 liters
Plastics
100 kg
20 kg
170 kg
25 kg
Paper
Source Food Agriculture Organization of the
UN, 2005 data for paper and paperboard Plastic
Europe Market Research Group (PEMRG) 2005
plastics data Euromonitor 2007 coatings data
WorldBank population data
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We have strong brands across the full spectrum of
our business
Biggest brands, per business area of 2009
revenue
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Successful customer focus
Sikkens Autoclear LV Exclusive Self-healing
clearcoat A high gloss clearcoat that is not only
highly resistant to scratches and easy to apply,
but also features self-healing properties when
exposed to heat.
Ecosense better for your world and the world To
be launched in March, the Ecosense paint line
offers no added solvents making it virtually odor
free. It also has an improved ecological
footprint reducing waste, water and CO2 with up
to 50.
Compozil Fx Better performance. Exceptional
results A wet end management system for the
largest and fastest paper machines helping to
deliver top quality paper faster with higher
productivity, better economy and reduced
environmental impact.
Stickerfix Easier than easy! You can repair and
protect your car using a unique easy to apply and
remove vinyl technology. Its coated with
professional car maker approved repair systems of
Sikkens, Lesonal and Dynacoat.
Dulux Ecosure Matt Light Space Uses
revolutionary LumiTec technology to reflect up to
twice as much light around the room making even
the smallest of rooms look and feel more spacious
compared to our conventional emulsion paints.
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Low fixed costs as a percentage of revenue
of 2009 annual revenue
Raw materials, energy, and other
variable production costs
Fixed production costs
Selling, advertising, administration, RD costs
EBIT margin
Rounded percentages, all data excluding
incidentals
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Sustainability is integrated in everything we do

• We have set ambitious sustainability targets
• Remain in the top three in the Dow Jones
  Sustainability Indexes
• Reduce our total recordable injury rate
• Deliver a step change in people development
• We focus on long-term performance. By 2015 our
  ambition is
• That Eco-premium products will make up 30
  percent of sales
• To reduce our cradle-to-gate carbon footprint
  with 10 percent
• To achieve sustainable fresh water use on all our
  sites
• We have linked remuneration to these targets and
  ambitions
• Our executive bonuses are linked to performance
  in the leading sustainability index (DJSI)

Higher eco-efficiency than main competitive
product
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AkzoNobel strategic ambitions

• Leading in value creation
• Outgrow our markets
• EBITDA margin gt 14 percent by end 2011
• 0.5 percent improvement in operating working
  capital (OWC) level, p.a.
• Leading in sustainability
• Top 3 Dow Jones Sustainability index
• Reduction in total recordable injury rate to 2
• Step change in people development

Tied to incentives, both for value creation and
sustainability
Total recordable injury rate refers to amount
of incidents per million hours worked
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Trusted portfolio of global brands
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Brands and products that...

• Protect the worlds buildings and infrastructure
• Bring color to all aspects of our lives
• Promote safety and good health
• Supply industries worldwide with ingredients for
  lifes essentials
• Allow us to travel and communicate
• Furnish our homes and offices
• Help society respond to the challenges of
  sustainability

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Organizational overview
Supervisory Board
Board of Management
Corporate Staff Departments
Business areaSpecialty Chemicals
Business areaDecorative Paints
Business areaPerformance Coatings

• Functional Chemicals
• Pulp Paper Chemicals
• Industrial Chemicals
• National Starch
• Surface Chemistry
• Chemicals Pakistan

• Industrial Finishes
• Powder Coatings
• Marine Protective Coatings
• Car Refinishes
• Packaging Coatings

• Continental Europe
• Northern Eastern Europe
• UK, Ireland South Africa
• United States
• Canada
• Latin America
• China North Asia
• South East Asia Pacific
• India and South Asia

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01
Decorative Paints
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Decorative Paints key facts

• 2009
• Revenue 4.7 billion
• 22,210 employees
• EBITDA 492 million
• 36 percent of revenue from high-growth markets
• Largest global supplier of decorative paints
• Many leading positions, strong brands

Some of our strong brands
Revenue by geography
4
10
21
50
15
Before incidentals
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Decorative Paints

• AkzoNobel is the worlds leading decorative
  coatings company with strong positions in all
  regions of the world
• Our Decorative Paints business supplies a full
  range of interior and exterior decoration and
  protection products for both the professional and
  the do-it-yourself markets
• The product range includes paints, lacquers and
  varnishes as well as products for surface
  preparation (pre-deco products)
• We also supply building adhesives and floor
  leveling compounds for tile, floor and parquet
  layers.

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Decorative Paints

• Architectural coatings
• Interior exterior wall paints and trim paints
  (lacquers)
• Woodcare specialty products
• Lacquers and varnishes for wood protection and
  decoration
• Specialty coatings for metal, concrete and other
  critical building materials

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Industry leading brands

• Pre-deco products
• Fillers, wall treatments, sealants and putties
  for consumers and professional
• Adhesives for the building and renovation
  industry
• Tile and floor adhesives and floor leveling
  compounds used for building and renovation

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World leader

• Geographic expansion into high growth markets
• Leadership position in developed markets
• Global decorative coatings market of around 34
  billion
• Worlds leading decorative coatings company

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Performance Coatings
02
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Performance Coatings key facts

• 2009
• Revenue 4.0 billion
• 19,880 employees
• EBITDA 587 million
• 45 percent of revenue from high-growth markets
• Leading positions in performance coatings
• Innovative technologies, strong brands

Revenue by business unit
Revenue by geography
8
6
8
20
Asia Pacific
41
41
20
31
25
Before incidentals
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Performance Coatings

• Were world leaders when it comes to performance
  coatings
• Performance coatings have hundreds of uses and
  weve divided them into five businesses
  Industrial Finishes, Powder Coatings, Car
  Refinishes, Marine Protective Coatings and
  Packaging Coatings
• We supply a wide range of industries and sectors
  including automotive, consumer electronics,
  aviation, shipping and leisure craft, sport
  equipment, construction, furniture, and food and
  beverage

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Industrial Finishes
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Industrial Finishes

• Wood coatings to decorate and protect furniture,
  kitchen cabinetry and building products
• Coil coatings applied to coiled steel and
  aluminum prior to fabrication
• Used in roofing, siding, garage and entry doors
  and gutters, air conditioners, heaters, furnaces
  and ventilation units and appliance markets
• Extrusion coatings applied to some of the worlds
  most prestigious high-rise buildings
• Plastics coatings supplied to
• Consumer electronics industry for cell phones,
  audio equipment and computers
• Cosmetic packaging and sporting equipment
  industries for bicycles, helmets, ski equipment
  etc.
• Wood adhesives business supplies bonding
  solutions for laminated beams, wood flooring, and
  furniture

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Powder Coatings
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Powder Coatings

• We are the largest global manufacturer of powder
  coatings and a world leader in powder coatings
  technology
• Powder coatings are solvent-free paints applied
  to metal and other conductive surfaces. They are
  used on metal furniture, window frames,
  radiators, pipes and cars, and even wood and
  plastic
• We supply eight key market sectors appliance,
  architectural, automotive, functional, furniture,
  general industry, general trade coaters and IT
  with our global brands Interpon and Resicoat

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Marine Protective Coatings
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Marine Protective Coatings

• We are the global market leader for marine
  paints, antifoulings and protective coatings
• We produce paints and antifouling materials used
  in shipbuilding,ship maintenance and repair, and
  by yachts and other pleasure craft
• We also supply protective coatings for bridges
  and buildings, and fire protection products for
  large plants and off-shore installations
• Our International brand has been used by famous
  customers including Sydney Harbor Bridge, the
  London Eye in the UK and the Beijing Olympic
  swimming complex
• Marine Protective Coatings is also home to
  AkzoNobels Aerospace Coatings activities

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Car Refinishes
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Car Refinishes

• If youve ever had your car resprayed, chances
  are it involved one of AkzoNobels car refinish
  products
• We are one of the worlds leading suppliers of
  paints and services for the car repair,
  commercial vehicles and automotive plastics
  markets
• Distributors, bodyshops, fleet owners, automotive
  suppliers and major bus and truck companies all
  choose AkzoNobel because we treat our customers
  as partners
• Our brands include Sikkens, Lesonal, Dynacoat,
  Wanda and Autocoat BT
• We have operations in more than 60 countries and
  offer outstanding customer service, top-notch
  training, full technical and logistical support,
  and detailed local knowledge

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Packaging Coatings
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Packaging Coatings

• Our Packaging Coatings business leads the way in
  hi-tech internal and external coatings for food
  and drink packaging
• We make and distribute a huge range of products
  that keep food and drink fresher for longer
• With nearly 90 years of experience, we have built
  our success on understanding exactly what our
  customers need
• We have significant positions in the established
  markets of Europe and North America and the
  emerging markets of Asia and Latin America

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Specialty Chemicals
03
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Specialty Chemicals key facts

• 2009
• Revenue 5.2 billion
• 13,250 employees
• EBITDA 814 million
• 32 percent of revenue from high-growth markets
• Major producer of specialty chemicals
• Leadership positions in many markets

Revenue by business unit
Revenue by geography
3
7
9
18
10
North America
44
21
13
18
17
17
23
Before incidentals
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Strong platforms for growth

• AkzoNobel is a major supplier of specialty
  chemicals with leading positions in selected
  market segments
• Our products are used in a wide variety of
  everyday products such as ice cream, soups,
  disinfectants, plastics, soaps, detergents,
  cosmetics, paper and asphalt

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Functional Chemicals
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Functional Chemicals

• Effective January 1, 2010 Polymer Chemicals has
  merged into Functional Chemicals
• Very diverse product offering, used in many
  end-use applications
• Our Functional Chemicals business makes chemical
  intermediates, performance chemicals and
  end-products
• Our portfolio includes cellulosic specialties,
  chelates, ethylene amines, metal alkyls,
  micronutrients, organic peroxides, polysulfides,
  redispersable powder polymers, salt specialties
  and sulfur products
• These chemicals are used in everyday items such
  as detergents, vinyl, automotive parts,
  agricultural products, pharmaceutical products,
  food products, wallpaper adhesives, plastic bags
  and cosmetics

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Pulp Paper Chemicals
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Pulp Paper Chemicals

• We have been helping paper manufacturers to
  improve their products for more than 100 years
• We are the leading global supplier of bleaching
  chemicals used in pulp manufacture, and
  performance chemicals used for the production of
  paper and board
• We also make specialty chemicals used in water
  treatment and as separation products in the
  pharmaceutical industry
• Our Expancel microspheres are used as additives
  to reduce the weight and improve the properties
  of printing inks, paper, polyester and underbody
  coating
• We trade under the name of Eka Chemicals

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Industrial Chemicals
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Industrial Chemicals

• Our Industrial Chemicals business makes salt,
  chlor-alkali products and derivatives such as
  monochloracetic acid (MCA)
• These products are essential for the success of
  the chemical, detergent, construction, food,
  paper and plastic industries
• Our portfolio includes chlorine, hydrochloric
  acid, caustic lye and water treatment chemicals.
  Were also Europes largest producer of vacuum
  salt
• We supply electricity, gas and steam to plants,
  mainly through combined heat and power generation
  plants

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National Starch
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National Starch

• Leading global supplier of specialty starches
  with a principal focus on supplying the food
  industry. Our core products can be found in the
  best selling foods everywhere.
• More than 20 percent of packaged foods utilize
  specialty starches to deliver enhanced
  processing, improved shelf life stability,
  freeze/thaw characteristics, improved aesthetics,
  enhanced texture, mouthfeel and other sensory
  benefits.
• Key market segments for the food business include
  bakery, beverages, cereals, dairy, flavors and
  encapsulation, noodles and pasta, pet foods,
  snacks etc.
• Also serve niche papermaking markets and supply
  high-value industrial starch applications for a
  variety of other consumer and industrial products
  and processes.

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Surface Chemistry
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Surface Chemistry

• We are a leading global supplier of
  surface-active agents and specialty polymers
• Surface Chemistry are chemicals that combine or
  separate two different materials, they are
  remarkably flexible and can be used to emulsify,
  disperse, clean, wet, aggregate, foam, defoam,
  disinfect or soften
• Theyre used in a huge range of industrial and
  consumer products including cleaning goods, oil
  field applications, printing, paints, fabric
  softeners, flooring, food packaging and
  electronics  
• They can also reduce the need for solvents in
  paints and cleaning products
• Specialty polymers for personal care provide the
  holding power in hair sprays and gels and add
  softness to mousses, conditioners, shampoos and
  other styling aids. They are also used in
  cosmetic and beauty products, like sunscreens,
  hand and body creams and lotions
• Specialty polymer products also include
  dispersants, anti-scalants for water treatment
  and detergent builders, as well as thickeners for
  the carpet, adhesive and detergent industries

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Chemicals Pakistan
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Chemicals Pakistan

• Global is good, but sometimes local is better.
  Which is why we set up our Chemicals Pakistan
  business, which focuses exclusively on Pakistan.
  The geographic focus is deliberately narrow, but
  the number of different sectors we serve
  certainly isnt.
• Our main areas of expertise include specialty
  chemicals, polyester fibers and soda ash. We work
  with companies that produce consumer goods,
  electronics and engineering products, food and
  beverages, pharmaceuticals and textiles.

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Creating one of the worldsleading industrial
companies

• Worlds largest decorative paints company
• Global leader in performance coatings
• Leading specialty chemicals business