Akzo Nobel N.v. · EURONEXT:AKZA

Akzo Nobel — FY2006 Earnings Presentation

34 slides from Akzo Nobel's earnings presentation, Feb 15, 2007

1. Slide 1: Fit for the Future

   Fit for the Future Hans Wijers, CEO 2006 Results Amsterdam, February 15, 2007

2. Slide 2: Agenda 2006 – delivering on our promises

   Agenda 2006 – delivering on our promises 9 IPO project 9 Accelerate growth across portfolio ƒ investments ƒ acquisitions 9 Further unlock value pipeline Organon 9 Adjust cost structure in mature markets 9 New structure Deco businesses 9 Conclude Chemicals divestment program

3. Slide 3: IPO Imminent

   IPO Imminent ƒ Preparations for IPO in final stages ƒ On track for listing ‘by early 2007’ ƒ Internal disentanglement completed ƒ Supervisory Board members identified

4. Slide 4: Fit for the Future – strategy paying off

   Fit for the Future – strategy paying off ƒ Organon accelerated healthy growth in 2006 ƒ Intervet outperforming market growth ƒ Coatings consolidated world leading position ƒ Chemicals concluded significant turnaround

5. Slide 5: 2006 Operational Performance

   2006 OPERATIONAL PERFORMANCE

6. Slide 6: Record year: Net income EUR 1.15 billion

   Record year: Net income EUR 1.15 billion ƒ Revenues up 6% ƒ Growth driven by Organon and Coatings ƒ Operational results up 14% ƒ Incidentals positive EUR 152 million ƒ Record net income - up 20%

7. Slide 7: Strong operational performance

   Strong operational performance ƒ Organon – 8% revenues growth; EBIT up 34% ƒ Intervet – autonomous growth of 6% ƒ Coatings – strong revenues growth of 12%; EBIT up 22% ƒ Chemicals – autonomous growth of 5%; steady EBIT at high performance level

8. Slide 8: Record net income

   Record net income EUR mln 2006 ∆% Revenues 13,737 6 EBIT before incidentals 1,310 14 Net income 1,153 20 Ratios 2006 2005 EBIT margin, % 9.5 8.9 EPS, EUR 4.02 3.36 Number of employees 61,880 61,340

9. Slide 9: Organon – state of the art robotic systems

   Organon – state of the art robotic systems

10. Slide 10: Organon – revenues up 8%; EBIT up 34%

    Organon – revenues up 8%; EBIT up 34% ƒ Revenues – up 8% to EUR 2.6 billion ƒ EBIT up 34% despite higher marketing and R&D spend ƒ Fertility products Puregon® / Follistim®– record year ƒ NuvaRing® – sales and market share increase continues ƒ Asenapine – Organon continues with development

11. Slide 11: Organon – robust product portfolio

    Organon – robust product portfolio Autonomous growth Full year 2006 % growth on 2005 Contraceptives 669 18 – of which NuvaRing® 213 67 Puregon® /Follistim® 384 8 Remeron ® 253 (11) Anesthesia 242 28 Livial® 151 (2)

12. Slide 12: Organon – turnaround takes hold

    Organon – turnaround takes hold EUR mln 2006 ∆% Revenues 2,611 8 EBIT before incidentals 362 34 Ratios 2006 2005 EBIT margin, % 13.9 11.1 S&D % revenues 32.2 32.9 R&D % revenues 18.6 17.9

13. Slide 13: Intervet – expansion program

    Intervet – expansion program

14. Slide 14: Intervet – outperforming the market

    Intervet – outperforming the market ƒ Revenues – 6% autonomous growth ƒ North American revenues – sharp increase of 12% ƒ EBIT margin of 18.9% ƒ Approvals received for Zilmax® and PreveNile® ƒ Continued focus on companion animal platform

15. Slide 15: Intervet – strong autonomous growth

    Intervet – strong autonomous growth EUR mln 2006 ∆% Revenues 1,125 6¹ EBIT before incidentals 213 2 Ratios 2006 2005 EBIT margin, % 18.9 19.1 S&D % revenues 24.8 24.2 R&D % revenues 9.7 10.3 1) autonomous growth

16. Slide 16: Coatings – Shipping industry and Intersleek

    Coatings – Shipping industry and Intersleek®

17. Slide 17: Coatings – Portofino and Sikkens

    Coatings – Portofino and Sikkens®

18. Slide 18: Coatings – strong 12% revenues growth

    Coatings – strong 12% revenues growth ƒ Revenues growth of 12% ƒ 4% of revenues growth driven by acquisitions ƒ EBIT before incidentals up 22% ƒ Ramping up savings from restructuring in mature markets ƒ Ongoing acquisitions and investments

19. Slide 19: Coatings – strong 12% revenues growth

    Coatings – strong 12% revenues growth ƒ Industrials activities and Marine & Protective Coatings – strong performance ƒ Car Refinishes – back on track after successful turnaround ƒ Decorative Coatings – refocused business to drive performance improvement

20. Slide 20: Coatings – consolidating world leader position

    Coatings– consolidating world leader position EUR mln 2006 ∆% Revenues 6,209 12 EBIT before incidentals 518 22 EBITDA 658 18 Ratios 2006 2005 EBIT margin, % 8.3 7.6 EBITDA margin, % 10.6 10.0

21. Slide 21: Chemicals – Focus on Pulp & Paper

    Chemicals – Focus on Pulp & Paper

22. Slide 22: Chemicals – 5% autonomous growth, steady EBIT

    Chemicals – 5% autonomous growth, steady EBIT ƒ Revenues of ongoing operations up 5% ƒ Operating income on par with 2005 ƒ Performance impacted by start-up production issues at Functional Chemicals, being addressed ƒ EBIT margin up to 9.2%

23. Slide 23: Chemicals – 5% autonomous growth, steady EBIT

    Chemicals – 5% autonomous growth, steady EBIT ƒ Polymer, Base and Pulp & Paper Chemicals – strong performance ƒ Surfactants – raw materials impact margins, restructuring on track ƒ Functional Chemicals – start up issues being addressed

24. Slide 24: Chemicals – steady EBIT at high performance level

    Chemicals– steady EBIT at high performance level EUR mln 2006 ∆% Revenues ongoing operations 3.502 5 EBIT before incidentals 351 - EBITDA 572 (3) Ratios 2006 2005 EBIT margin, % 9.2 9.0 EBITDA margin, % 15.0 15.2

25. Slide 25: 2006 Financial Performance

    —— AKZO NOBEL 2006 FINANCIAL PERFORMANCE

26. Slide 26: Strong cash flow – cash from operations up EUR 0.5 billion

    Strong cash flow – cash from operations up EUR 0.5 billion Year end; EUR bln 2006 2005 Cash generated from operations 1.9 1.4 Net change in cash 0.4 (0.4) Equity 4.3 3.6 Net debt 1.1 1.6 Dividend, in EUR 1.20 1.20

27. Slide 27: Q4 2006 Performance

    —-— AKZO NOBEL Q4 2006 PERFORMANCE

28. Slide 28: Autonomous growth of 4%

    Autonomous growth of 4% ƒ Revenues flat – autonomous growth of 4%, currencies (3%) ƒ Operational results up 11% - led by Organon and Coatings ƒ Functional Chemicals – start up issues; being addressed ƒ Incidentals – EUR 25 million ƒ Net income EUR 230 mln, down 27%

29. Slide 29: Autonomous growth of 4%

    Autonomous growth of 4% EUR mln Q4 2006 ∆% Revenues 3.322 - EBIT before incidentals 249 11 Net income 230 (27) Ratios 2006 2005 EBIT margin, % 7.5 6.8

30. Slide 30: Agenda 2007

    —-— AKZO NOBEL AGENDA 2007

31. Slide 31: Agenda 2007

    Agenda 2007 ƒ Execution of IPO ƒ Accelerate organic growth across portfolio ƒ Active consolidator in a financially disciplined manner ƒ Improve margins in mature markets ƒ Build one Akzo Nobel

32. Slide 32: Positive for 2007

    Positive for 2007 ƒ Well positioned for profitable growth ƒ Outgrow our markets and further improve financial returns in Coatings and Chemicals

33. Slide 33: 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 should be carefully considered, and i

34. Slide 34: Fit for the Future 2006 Results Q&A

    Fit for the Future 2006 Results Q&A February 15, 2007

Akzo Nobel — FY2006 Earnings Presentation on 6ix