2020 Sustainability Strategy More value from fewer resources. AkzoNobel Sustainability

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1 2020 Sustainability Strategy More value from fewer resources

2 AkzoNobel today Revenue 15.4 billion 50,610 employees 44% of revenue from high growth markets Major producer of Paints, Coatings and Specialty Chemicals Leadership positions in many markets A leader in sustainability Revenue by Business Area Operating income* by Business Area EBITDA** by Business Area 36% 37% 44% 48% 47% 38% Performance Coatings Decorative Paints 27% 8% 15% Specialty Chemicals 5.4% Growth 2012 vs % Return on sales (operating income/revenue) 10.4% EBITDA/revenue 2

3 Our sustainability strategy 3

4 4

5 ~43% of revenues ~16% of revenues New Build Projects Maintenance, Renovation & Repair Building Products & Components Automotive OEM, Parts and Assembly Automotive Repair Marine and Air Transport ~16% of revenues ~25% of revenues Consumer Durables Consumer Packaged Goods Natural Resource and Energy Industries Process Industries 5

6 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*... 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 Resource scarcity will lead to higher resource costs Users will be increasingly charged for externalities 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 4-10 fold improvement in eco-efficiency of resources and materials from 2000 Closed loop processes, making landfill obsolete Cooperation across sectors the norm * Based on World Business Council for Sustainable Development Vision

7 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 Raw materials Own operations, including energy use Customer operations End-user End of life Energy/resource benefits in use 7

8 Our targets 8

9 By focusing on the full value chain, we will drive business, resource and engagement benefits Raw materials Own operations Customer operations End-user End of life 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 9

10 End-user segment trends, combined with sustainability, direct our innovation spend End-user segments Sustainability Sustainability = Business Business = Sustainability Direction of Innovation spend (2.5% of 2012 revenue) End-user segment trends, combined with sustainability, direct our innovation spend 10

11 AkzoNobel delivers innovation Buildings and Infrastructure Dulux Guardian A premium, low-voc and low-odor soft-sheen emulsion for interior walls Transportation Aerobase Coating System A consistently performing OEM-approved low VOC base coat/clear coat system for aerospace Consumer goods Biostyle CGP A range of sustainable hybrid polymers for consumer applications Industrial Monochloroacetic acid (MCA) An asset-light approach to sustainable chemical production using proprietary hydrogenation technology 11

12 Carbon intensity in our own scope is relatively low... Million tons CO2 equivalents, 2011 CO2(e) GHG protocol VOC 12

13 Making it necessary to work collaboratively 13

14 New coalitions - new opportunities NGOs Business Universities Government Sustainable innovation Finance 14

15 Conclusions Sustainability is business and business is sustainability Our industry must deliver much more value from much fewer resources Sustainability requires collaboration throughout the value chain, in order to deliver successful products in our end-markets Sustainability helps us to attract & develop talent in order to achieve our growth ambition Sustainability is a major business driver as such we will continue to use sustainability as an important measure in management remuneration 15

16 Thank you for your attention