Akzo Nobel N.v. · EURONEXT:AKZA

Akzo Nobel — Q1 2005 Earnings Presentation

11 slides from Akzo Nobel's earnings presentation, Apr 19, 2005

1. Slide 1: Safe harbor statement

   Safe harbor statement* These sheets contain statements which address such key issues as Akzo Nobel’s growth strategy, future financial results, market positions, product development, pharmaceutical products in the pipeline, and product approvals. Such statements, including but not limited to the “Ou

2. Slide 2: Net income – more than double last year

   Net income – more than double last year ƒ Good performance in mixed business environment ƒ Organon – successful margin protection; Risperdal® deal ƒ Intervet – solid performance ƒ Coatings – impacted by raw material prices ƒ Chemicals – continued strong performance ƒ Outlook – unchanged Good perform

3. Slide 3: Revenues – mixed performance; Basic EBIT – on balance up

   Revenues – mixed performance Total Q-1, % change Volumes Prices Currency Divest. Organon (3) (2) – (1) Intervet 2 1 2 (1) Coatings – (3) 4 (1) – Chemicals* 5 3 3 (1) – Akzo Nobel (5) 1 2 (1) (6) *Ongoing “Basic EBIT” – on balance up Operational/ One-off/ Q-1, EUR mln Change pensions divest. Currenci

4. Slide 4: Organon – successful margin protection

   Organon – Follistim® approved in Japan Organon – successful margin protection ƒ Revenues decline bottoming out ƒ End Risperdal® copromotion – EUR 149 mln benefit ƒ NuvaRing® – steadily expanding ƒ Remeron® – gradually declining outside U.S. ƒ Infertility products – renewed growth ƒ Livial® – remains

5. Slide 5: Organon – successful margin protection (3)

   Organon – successful margin protection (2) Q-1, EUR mln 2005 ∆% Revenues 576 (3) EBIT 236 247 Ratios 2005 2004 EBIT margin 41.0 11.5 S&D % revenues 31.9 34.0 R&D % revenues 16.3 17.1 Intervet – launching Asian fish vaccines 5

6. Slide 6: Intervet – healthy growth

   Intervet – healthy growth ƒ Revenues up – 3% autonomous growth ƒ EBIT margin of 20.2% ƒ Benefiting from cost savings ƒ Performance improvement in manufacturing ƒ Successful product launches in U.S. Intervet – healthy growth (2) Q-1, EUR mln 2005 ∆% Revenues 262 2 EBIT 53 23 Ratios 2005 2004 EBIT mar

7. Slide 7: Coatings – impacted by raw material prices

   Coatings – new color system introduced Coatings – impacted by raw material prices ƒ Steep increase raw material prices ƒ Price increases 4% – margins down ƒ Volumes down 3% ƒ Marine & Protective– continuous good performance ƒ Decorative Coatings – weak start in Europe ƒ Industrial activities – margi

8. Slide 8: Coatings – impacted by raw material prices (2)

   Coatings – impacted by raw material prices (2) Q-1, EUR mln 2005 ∆% Revenues 1,241 – EBIT 62 (26) Ratio 2005 2004 EBIT margin 5.0 6.8 Chemicals – our salt keeps roads safe 8

9. Slide 9: Chemicals – strong performance sustained

   Chemicals – strong performance sustained ƒ Autonomous growth 6% – prices and volumes up 3% ƒ Cost savings clearly paying off ƒ Raw material and energy prices up ƒ Base Chemicals and Salt – significantly up ƒ 2005 divestment program – on track Chemicals – strong performance sustained (2) Q-1, EUR mln

10. Slide 10: Strong financial position

    Room to maneuver Strong financial position Strong financial position March 31; EUR bln 2005 2004 Equity 3.1 2.4 Net borrowings 1.5 2.6 Ratio 2005 2004 Gearing 0.48 1.08 Interest coverage 13.1 6.7 EBITDA coverage 17.4 10.7 10

11. Slide 11: Outlook – unchanged

    Outlook – unchanged Aspiring to achieve net income* within 2004 range of EUR 800 mln *This excludes restructuring and impairment charges, charges related to legal and antitrust cases, and results on divestments. It is based on our current portfolio. Creating a platform for growth April 19, 2005 Q1 2

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