Akzo Nobel - GlobalData

Akzo Nobel N.V.

Akzo Nobel N.V.- Financial and Strategic Analysis Review

Reference Code: GDCH44319FSA

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Akzo Nobel N.V. - Financial and Strategic Analysis Review Publication Date: 22-Jan-2015


Company Snapshot Key InformationAkzo Nobel N.V., Key InformationWeb Address www.akzonobel.comFinancial year-end DecemberNumber of Employees 48,010AMS AKZASource : GlobalData

Key RatiosAkzo Nobel N.V., Key Ratios

P/E 25.23

Return on Equity (%) 12.94

Debt/Equity (%) 0.65

Operating profit margin (%) 6.57

Dividend Yield 0.02

Note: Above ratios are based on share price as of 20-Jan-2015

Source : GlobalData

Share DataAkzo Nobel N.V., Share DataShare Price (EUR) as on20-Jan-2015 61.50

EPS (EUR) 2.44

Market Cap (million EUR) 15,093

Enterprise Value (million EUR) 17,377

Shares Outstanding (million) 245

Source : GlobalData

Performance ChartAkzo Nobel N.V., Performance Chart (2009 - 2013)

Source : GlobalData

Company Overview Akzo Nobel N.V. (Akzo Nobel) manufactures and suppliesspecialty chemicals, paints, and performance coatings.The company's products portfolio comprises functionalchemicals, industrial chemicals, pulp and paper chemicals,surface chemicals, vehicle refinishes, powder coatings,industrial coatings, wood finishes and adhesives, andmarine and protective coatings. Akzo Nobel caters itsproducts to markets such as buildings and infrastructure,industrial, consumer goods and transportation.Geographically, the company has presence in variouscountries across North America, Latin America, Europeand Asia-Pacific. Akzo Nobel is headquartered inAmsterdam, the Netherlands.

SWOT Analysis Akzo Nobel N.V., SWOT Analysis

Strengths Weaknesses Diversified BusinessOperations

Improved OperatingPerformance

Global Presence

Legal Proceedings

Opportunities Threats Growing Paint and CoatingsIndustry

Strategic Agreements

Growing Competition

Raw Material Price Risks

Stringent Regulations

Source : GlobalData

Financial Performance The company reported revenues of (Euro) EUR14,590million for the fiscal year ended December 2013(FY2013), a decrease of 5.2% over FY2012. Theoperating profit of the company was EUR958 million inFY2013, compared to an operating loss of EUR1,198million in FY2012. The net profit of the company wasEUR724 million in FY2013, compared to a net loss ofEUR2,092 million in FY2012.The company reported revenues of EUR3,686.0 millionfor the third quarter ended September 2014, a decreaseof 0.6% over the previous quarter.

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Akzo Nobel N.V. - Key FactsAkzo Nobel N.V., Key FactsCorporate Address Strawinskylaan 2555,

Amsterdam, Noord-Holland,1077, Netherlands

Ticker Symbol, StockExchange

AKZA [Euronext AmsterdamStock Exchange]

Telephone +31 20 5027555 No. of Employees 48,010Fax +31 20 5027605 Fiscal Year End DecemberURL www.akzonobel.com Revenue (in USD Million) 19368.11Industry Chemicals, Construction & Real

Estate, Energy and UtilitiesRevenue (in EUR Million) 14590.00

Locations Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Croatia, Czech Republic,Denmark, Egypt, Estonia, Finland, France, Germany, Greece, India, Indonesia, Ireland, Italy, Japan,Latvia, Lithuania, Malaysia, Mexico, Morocco, Netherlands, Norway, Panama, Philippines, Poland,Romania, Russia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan,Thailand, Turkey, Ukraine, United Kingdom, United States, Venezuela, Vietnam

Source : GlobalData

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Akzo Nobel N.V. - Business Description Akzo Nobel N.V. (Akzo Nobel) manufactures and supplies specialty chemicals, paints, and performance coatingsworldwide. Its product portfolio includes functional chemicals, industrial chemicals, pulp and paper chemicals, surfacechemicals, powder coatings, vehicle refinishes, industrial coatings, wood finishes and adhesives, and marine and protectivecoatings. Akzo Nobel classified its operations into three segments, namely, Specialty Chemicals, Performance Coatings,and Decorative Paints. The company's Specialty Chemicals segment provides products that are used in paper, ice cream, cosmetics, plastics andglass. It is further sub-divided into five business units, namely, functional chemicals, industrial chemicals, pulp and paperchemicals and surface chemistry. It produces industrial chemicals such as, chlor-alkali products, salt, monochromatic acid,ethylene amines, cellulose specialties, salt specialties, ch-elates, sulfur products, and redispersible powder polymers. Itssurfactant products include, cationic, anionic, and non-ionic. AkzoNobel provides personal care solutions, and aqueoussolution polymers. It offers specialty chemicals such as polymer chemicals, polyester fibers, soda ash, emulsion polymers,carbon di-sulfides, pulp and paper chemicals such as sodium chlorate and hydrogen peroxide, wet and dry strength agents,and coating additives, and chemicals for use in the water treatment, pharmaceutical industries, and explosives. For thefiscal year ended December 2013, the Specialty Chemicals segment reported revenue of 4,949m, representing adecrease of 2.86% over that in 2012. This segment accounted for 33.68% of the companys total revenue in 2013. AkzoNobel's Performance Coating segment offers industrial finishes, vehicle refinishes, marine and protective coatings,wood finishes and adhesives, coil and extrusion coatings, packaging coatings, and powder coatings. It provides technologyand engineering services to its customers, and manages chlorine dioxide plants. For the fiscal year ended December 2013,the Performance Coating segment reported revenue of 5,571m, representing a decrease of 2.30% over that in 2012. Thesegment accounted for 37.91% of the companys total revenue in 2013. The company's Decorative Paints segment offers afull range of interior and exterior decoration and protection products. Its key products include adhesives, lacquers andvarnishes, decorative paints, and floor leveling compounds, specialty coating, concrete, and other building materials. Itprovides color concepts, mixing machines, and training courses for the building and renovation industry. The companymarkets its products under various brand names such as Dulux, Hammerite, Pinotech, Sico, Interpon, Cuprinol, TintasCoral, Herbol, Sikkens, Casco, Sadolin, Taubmans, Levis, Glidden, Flood, Flora, Vivexrom, and Marshall. For the fiscalyear ended December 2013, the Performance Coating segment reported revenue of 5,571m, representing a decrease of2.30% over that in 2012. The segment accounted for 37.91% of the companys total revenue in 2013. The company caters its products to markets such as Buildings and Infrastructure, Industrial, Consumer Goods andTransportation. For the fiscal year ended December 2013, Buildings and Infrastructure accounted for 44% of the company'stotal revenue, followed by Industrial with 24%, Transportation with 16% and Consumer Goods with 16% revenue. Thecompany has 4,000 active scientists and technologists who conduct research, product and process development andprovide technical support for customers and manufacturing operations. It operates 130 laboratories world-wide. For thefiscal year ended 2013, the company invested 384m on its R&D activities. Geographically, the company classified itsoperations into six regions, namely, Asia-Pacific, Emerging Europe, Mature Europe, North America, Latin America andOther Regions. For the fiscal year ended December 2013, Mature Europe accounted for 38% of the company's totalrevenue, followed by Asia-Pacific with 25%, North America with 15%, Latin America with 11%, Emerging Europe with 8%and Other Regions with 3%.

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Akzo Nobel N.V. - Major Products and ServicesAkzoNobel manufactures and supplies specialty chemicals, paints, and performance coatings worldwide. The companyskey products include the following: Akzo Nobel N.V., Major Products and ServicesProducts:

Car Refinishes

Chemicals manufactured in Pakistan

Decorative Paints

Functional Chemicals

Industrial Chemicals

Industrial Coatings

Marine and Protective Coatings

Powder Coatings

Surface Chemistry

Wood Finishes and Adhesives

Brands:

Akucell

AkzoNobel Aerospace Coatings

Alco Chemical

Awlgrip

Bermocoll

Butanox

Casco Adhesives

Chartek

Chemcraft

Coral

Corrostop Metalmaster

Corrostop Ultra

Crystalex & Maxithane

Devoe Coatings

Devoe Paint

Dissolvine

Dulux

Eka

Elotex

Expancel

Ferrazone

Flexa

Flood

Glidden

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Glidden Professional

Hammerite

ICLA

Interlux

International

Interpon

Jozo Salt

Kromasil

Lesonal

Levis

Liquid Nails

Marshall

Mulco

Ralph Lauren Paint

Resicoat

Sadolin

Schnox

Sico

Sikkens

Sikkens Car Refinishes

Stickerfix

The Freshaire Choice

Tintas Coral

Trimetal

Wanda

Zweihorn

Source : GlobalData

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Akzo Nobel N.V. - History

Akzo Nobel N.V., History

2014 Acquisitions/Mergers/Takeovers In July, the company signed a definitive agreement with Kemira to acquire AkzoNobel's global chemical division for EUR153 million.

2014 Commercial Operation In November, Akzo Nobel N.V.'s powder coatings plant at new Dubai

commenced its operations.

2014 Contracts/Agreements In July, the company extended its partnership with Solazyme to improvefunctional and environmental performance, as well as a lower overall cost toAkzoNobel.

2014 Contracts/Agreements In May, the company and Solvay SA, has collaborated with Ernst & Young, to

develop a tool to track the use of renewable raw materials in paints andcoatings.

2014 Contracts/Agreements In November, Akzo Nobel has entered into an agreement eith Enerkem Inc., to

develop a project partnership to explore the development of waste-to-chemicalsfacilities in Europe.

2014 Contracts/Agreements In September, AkzoNobel and Photanol partnered, to develop a process for

harnessing the power of the sun to make chemicals.

2014 Corporate Changes/Expansions In March, the company completed the expansion of its industrial coatings site inSongjiang, China.

2014 Corporate Changes/Expansions The company opened new highly energy efficient membrane electrolysis plant

in the Rhein-Main area, Germany.

2014 Plans/Strategy In July, the company and Evonik Industries plan to negotiate to a joint-venturefor building a membrane electrolysis facility in Germany, to produce potassiumhydroxide solution and chlorine.

2014 Plans/Strategy The company will be adding a dedicated facility for the Performance Coatings

businesses by June 2015.

2013 Contracts/Agreements In June, the company entered into three year agreement with Solvay.According to the agreement, AkzoNobel will increase the use of Solvaysbio-based epichlorohydrin, Epicerol.

2013 Contracts/Agreements In October, the company signed a joint venture agreement with Omar Zawawi

Establishment LLC for the manufacture and sale of decorative paints andperformance coatings in Oman.

2013 Corporate Changes/Expansions In October, the company strengthened its manufacturing footprint in India by

opening a newdecorative paints plant in Gwalior with an annual capacity of 55million liters.

2013 Corporate Changes/Expansions In September, the company announced its plan to invest 50m in China to build

new manufacturing facilities for its Powder Coatings and Decorative Paintsbusinesses.

2013 Divestiture In April, the company sold its North American decorative paints business to

US-based PPG Industries, Inc.

2013 Divestiture In August, the company announced its plan to divest Building Adhesivesbusiness including its manufacturing facilities in Rosendahl (Germany) andDamville (France) to Sika AG for 260m.

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2013 Plans/Strategy In March, the company announced its plans to invest in 65 million in China.The investment will boost the operational excellence of AkzoNobels SurfaceChemistry manufacturing sites in Boxing and Ningbo.

2012 Acquisitions/Mergers/Takeovers In February, the company completed acquisition of Boxing Oleochemicals,

Chinas leading specialty surfactant producer.

2012 Asset Disposal In July, the company undertook demerger of ICI Pakistan's paints and coatingsbusinesses into the new listed company, AkzoNobel Pakistan Limited.

2012 Commercial Operation In February, the company plans to invest 80m in the construction of a new

pulp Chemical Island facility in Brazil.

2012 Contracts/Agreements In November, the company signed expanded joint venture agreement withYusuf Bin Ahmed Kanoo group of companies.

2012 Contracts/Agreements In September, the company entered into an agreement to supply advanced

paint technology to McLaren Automotive.

2011 Corporate Changes/Expansions In February, AkzoNobel opened new coatings plant in India.

2011 Corporate Changes/Expansions In May, AkzoNobel opened a new research laboratory in Deventer, theNetherlands.

2011 Management Changes In August, the company appointed Mr. Jonathan Atack as the corporate director

investor relations.

2011 Plans/Strategy In April, AkzoNobel announced its plans to split ICI Pakistan into two listedentities, namely, AkzoNobel Pakistan Limited, comprising its paints business;and ICI Pakistan Limited comprising all other businesses of ICI Pakistan.

2011 Research and Development In July, the company acquired Zeta Fraction technology from Integrated

Botanical Technologies.

2010 Acquisitions/Mergers/Takeovers Akzo Nobel acquired Changzhou Prime Automotive Paint Co., Ltd.

2010 Acquisitions/Mergers/Takeovers Akzo Nobel acquired Dow Chemical company's powder coatings division.

2010 Acquisitions/Mergers/Takeovers Akzo Nobel acquired Powder Coating division of The Dow company.

2010 Contracts/Agreements The company entered into an agreement with Walmart for supplying paint inthe US.

2010 Corporate Changes/Expansions Akzo Nobel rebranded its Imperial Chemical Industries Limited in India to Akzo

Nobel India Limited.

2010 Corporate Changes/Expansions AkzoNobel completed the sale of its National Starch business to Corn ProductsInternational, Inc. for a consideration of 1.3 billion.

2010 Corporate Changes/Expansions The company expanded its monochloroacetic acid (MCA) manufacturing plant

in China.

2010 Other The company opened a new powder coatings manufacturing unit in China.

2010 Stake Sale A/S Det Ostasiatiske Kompagni completed the sale of its minority stake in AkzoNobel Paints (Thailand) Ltd. to a subsidiary of Akzo Nobel N.V.

2010 Stake Sale Akzo Nobel sold its National Starch business to Corn Products International.

2009 Acquisitions/Mergers/Takeovers The company acquired the business and assets of the German-based

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company LII Europe. The acquired activities will be integrated into AkzoNobelIndustrial Chemical.

2009 Divestiture AkzoNobel entered into an agreement to divest its non-stick coatings business

to privately-owned, US-based company Whitford Worldwide.

2009 New Products/Services AkzoNobel, in partnership with The Home Depot in North America, hasdeveloped a new range of high quality paints under Martha Stewart Livingbrand.

2008 Acquisitions/Mergers/Takeovers Akzo Nobel acquired Enviroline, a specialist supplier of corrosion-resistant

linings for the oil and gas industries.

2008 Acquisitions/Mergers/Takeovers The company acquired a 75/25 majority interest in its Kayaku Akzo Co. Ltd.(KAC) joint venture with Nippon Kayaku.

2008 Acquisitions/Mergers/Takeovers The company acquired Imperial Chemical Industries plc (ICI).

2008 Corporate Changes/Expansions The company opened a new protective coatings site and a production facility

for its Elotex building material additives business in China.

2008 New Product Approvals Akzo Nobel won approval for Global Iveco showroom redesign.

2008 Other Akzo Nobel sold the Adhesives and Electronic Materials businesses, part of theformer ICIs National Starch business, to Henkel KGaA.

2008 Other The company acquired two organic peroxides product lines from Chinas

Jiangsu QiangSheng to strengthen the companys specialty chemical productportfolio.

1998 New Products/Services The company acquired a UK based company, Courtaulds. Their products

include high-tech industrial coatings and man-made fibers such as Courtelleand Tencel.

1994 Acquisitions/Mergers/Takeovers Akzo and Nobel Industries merged to form AkzoNobel.

1969 Acquisitions/Mergers/Takeovers Algemeene Kunstzijde Unie NV (AKU) merged with Koninklijke Zwanenberg

Organon (KZO) to form AKZO.

1968 Acquisitions/Mergers/Takeovers The UK man-made fiber company Courtaulds acquired International Paints.

1923 Corporate Changes/Expansions Saal van Zwanenberg established Organon to produce insulin from thepancreases of animals.

1918 New Products/Services Koninklijke Nederlandse Zoutindustrie (KZO) kick started the Dutch salt

industry in response to salt shortages during World War I.

1895 Incorporation/Establishment Alfred Nobel (the man behind the Nobel Prize) founded ElektrokemiskaAktiebolagetknown as Ekain Bengtsfors, Sweden. Its aim was to makechlorine and alkali. Today Eka Chemicals is AkzoNobel's Pulp & PaperChemicals business.

1871 Other KemaNobel was established in Sweden. More than a hundred years later, in

1984, KemaNobel will merge with Bofors to form Nobel Industries, which will inturn be acquired by Akzo in 1994.

Source : GlobalData

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Akzo Nobel N.V. - SWOT Analysis SWOT Analysis - OverviewAkzo Nobel N.V. (Akzo Nobel) manufactures and supplies specialty chemicals, paints, and performance coatings. Thecompany's wide geographical presence and strong operating performance provide edge on its competitors. The companystrategic expansion initiatives along with acquisitions could provide opportunities for growth. Nevertheless, the increasedcompetition along with strict regulations many remain a threat to its operations. Akzo Nobel N.V. - StrengthsStrength - Diversified Business Operations The diversified business operations minimize the market specific risks and facilitate stable and sustained revenue growth.Akzo Nobel classified its operations into three segments, namely, Specialty Chemicals, Performance Coatings, andDecorative Paints. The Specialty Chemicals business portfolio consists of five business units, namely, FunctionalChemicals, Industrial Chemicals, Pulp and Paper Chemicals, Surface Chemistry. The company's Performance Coatingsegment provides a wide range of quality products such as metal and plastic coatings, protective coatings, vehiclerefinishes, aerospace coatings, powder coatings, wood coatings and adhesives, marine coatings, coil and extrusioncoatings, and coatings for packaging. The Decorative Paints segment provides an extensive range of interior and exteriorprotection and decoration products for both the professional and do-it-yourself (DIY) customers. The segment's productportfolio includes lacquers and varnishes; specialty coatings for metal, concrete and other building materials; pre-decoproducts; and adhesives, among others. The company caters its products to markets such as Buildings and Infrastructure,Industrial, Consumer Goods and Transportation. For the fiscal year ended December 2013, Buildings and Infrastructureaccounted for 44% of the company's total revenue, followed by Industrial with 24%, Transportation with 16% andConsumer Goods with 16% revenue. Strength - Improved Operating Performance The company exhibited a strong growth in its operating performance for the fiscal year ended December 2013. Thecompany's operating income increased to 958m in 2013, as compared to negative operating income of 1,198m in thefiscal 2012. Such growth in operating income has resulted in improvement of the company's net income. For the fiscal yearended December 2013, the company's net income increased to 593m, as compared to negative net income of 2,092m inthe previous fiscal. For the fiscal 2013, the company's operating expenses as a percentage of sales were 93.43%, ascompared to 107.78% in the previous year. The company also showed an improvement in its operating margin. For thefiscal year ended December 2013, the company reported operating margin of 6.56%, as compared to negative operatingmargin of 7.78% in 2012. The increase in operating margin indicates that the company's revenue increased at a higher ratethan that of its expenses. Thus, the companys strong operational performance increases the investors confidence andprovides a positive outlook for the future. Strength - Global Presence Wide geographical presence mitigate various risks associated with over dependence on a particular market and wouldeventually improve the profit margins, attaining economies of scale and recognition on a worldwide basis. The companyhas business operations across various geographies. It has presence in more than 80 countries, which supports thecompany's plans to expand into growing markets in a customized way. Geographically, the company classified itsoperations into six regions, namely, Asia-Pacific, Emerging Europe, Mature Europe, North America, Latin America andOther Regions. For the fiscal year ended December 2013, Mature Europe accounted for 38% of the company's totalrevenue, followed by Asia-Pacific with 25%, North America with 15%, Latin America with 11%, Emerging Europe with 8%and Other Regions with 3%. Akzo Nobel N.V. - WeaknessesWeakness - Legal ProceedingsThe company's involvement in legal proceedings, regardless of the outcome, could drain its financial resources. Thecompany is involved in several legal proceedings related to its ordinary course of business. In recent past, the companysImperial Chemical Industries (ICI) lost a court challenge seeking to overturn a 91.4m European Union cartel fine. The EUsGeneral Court dismissed the Akzo Nobel's appeal in a ruling, rejecting its arguments that the European Commission set thefine too high and should have reduced it because the company voluntarily submitted evidence to investigators. ICI was oneof four chemical makers fined with 344.5m by the EUs antitrust regulator for fixing the price of acrylic glass. Akzo Nobel N.V. - OpportunitiesOpportunity - Growing Paint and Coatings IndustryPaints and coating industry is recording substantial growth as a result of the growing infrastructure industry. According to

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industry estimates, the worldwide demand for paint and coatings is expected to increase 5.4% annually through 2015 to45.5 million metric tons, with a total value of approximately $140 billion. Asia-Pacific is estimated to be the major market forpaints and coatings. Within the industry, industrial paints are expected to be the major segment as a result of risinginfrastructure and industrial construction spending across the world. The industrial coatings market is projected to bevalued around $55 billion by 2020. The company could gain from its building blocks and specialty surfactants, which areused in delivering sustainable products. Opportunity - Strategic AgreementsAkzo Nobel strengthens its existing businesses with strategic initiatives. In March 2014, the company completed theexpansion of its industrial coatings site in Songjiang, China. The initiative will double the company's annual productioncapacity and will help it to better serve customers in the country. In October 2013, the company signed a joint ventureagreement with Omar Zawawi Establishment LLC for the manufacture and sale of decorative paints and performancecoatings in Oman. In the same month, the company strengthened its manufacturing footprint in India by opening a newdecorative paints plant in Gwalior with an annual capacity of 55 million liters. In September 2013, the company plans toinvest a total of more than 50m in China to build new manufacturing facilities for its Powder Coatings and DecorativePaints businesses. In June, 2013, the company entered into three year agreement with Solvay. According to theagreement, AkzoNobel will increase the use of Solvays bio-based epichlorohydrin, Epicerol. Epicerol is already used inmany of the companys resins for its coatings products. In April, 2013, the company divested its North American DecorativePaints business by selling it to US-based PPG Industries, Inc. The business is divested from North America because thecompany intends to focus its Decorative Paints Business in key markets of Europe. In March, 2013, the companyannounced its plans to invest in 65 million in China. The investment will boost the operational excellence of AkzoNobelsSurface Chemistry manufacturing sites in Boxing and Ningbo. Such initiatives help the company to further strengthen itsbusiness in specialty chemical market. Akzo Nobel N.V. - ThreatsThreat - Growing Competition Increased competition could lead the company to reduce its prices, which could negatively affect its margins. The companyoperates in a highly competitive chemical industry. The company operates in a progressively complex and challengingchemical marketplace whose dynamics is ever-changing. Technological advances by any player in the market could renderits present or future products obsolete or uneconomical. The existing market includes companies of varying sizes; somemore specialized than the company with respect to particular commodities, and some with greater financial resources thanthe company. Some of the competitors of the company include Solvay SA and The Dow Chemical Company. The companycompetes in this evolving marketplace on the basis of many factors, including price, quality, innovation, service, reputation,distribution and promotion. Hence, the company should focus on launching new and competitive products to attract andretain existing and new customers. Threat - Raw Material Price RisksThe company faces the threat of rising raw material costs, as it could pressurize its margins. The company uses significantamounts of various raw materials in manufacturing of products. The prices for some key raw materials can be volatile andare affected by economic conditions. It is on some extent, able to pass on higher input prices to customers, but this is, to alarge extent, dependent on market conditions. Akzo Nobel may also be impacted by inability to access sufficient rawmaterials, business interruption or product discontinuation at some of key suppliers. Inability to access sufficient rawmaterials, increases in cost and expenses for raw materials and energy, and changes in product mix may adversely affectfuture results and growth. Threat - Stringent Regulations Akzo Nobel could be affected by the environmental regulations governing the global chemical industry. REACH(Registration, Evaluation, Authorisation and Restriction of Chemicals), in Europe, is an example of the stringentenvironmental regulations that impact chemical producers. REACH regulates the products manufactured and marketed inEurope. Phased over a period of 11 years, the regulation mandates all companies to develop and submit dossierscontaining datasets about their chemical products and detail their potential impact and risk on environment. This could be achallenge while launching new products as the process is time-consuming and expensive. It may also result in phasing outmany existing chemicals from the market, which are regarded as toxic and hazardous. REACH directly applies to over30,000 different chemical substances that are produced or sold in Europe and its implementation is expected to costEuropean chemical industry about $3 billion. Other countries too are expected to model their regulations on the principlesof REACH. The US has already begun implementing similar regulations with the reform of Toxic Substances Control Act.China has its own version: RoHS (Restriction of Hazardous Substances), which restricts the use of certain chemicals in themarket. Such stringent environmental regulations are set to tighten in the coming years, affecting both existing and newproducts for the company.

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NOTE:* Sector average represents top companies within the specified sectorThe above strategic analysis is based on in-house research and reflects the publishers opinion only

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Akzo Nobel N.V. - Key Competitors Akzo Nobel N.V., Key Competitors

Name HeadquartersAxalta Coating Systems, LLC United StatesBASF SE GermanyBenjamin Moore & Co. United StatesE. I. du Pont de Nemours and Company United StatesGenesis Energy, L.P. United StatesSolvay SA BelgiumThe Dow Chemical Company United StatesGlobalData

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Akzo Nobel N.V. - Key Employees Akzo Nobel N.V., Key Employees

Name Job Title Board Level Since Age

Maelys Castella Chief Financial Officer, DirectorExecutive Board

Marten Booisma Member of the ExecutiveCommittee Senior Management

Werner Fuhrmann Member of the ExecutiveCommittee Senior Management

Ruud Joosten Member of the ExecutiveCommittee Senior Management

Ton Buchner

Chairman Board ofManagement and the ExecutiveCommittee , Chief ExecutiveOfficer

Senior Management

2012 47

David Allen Member of the ExecutiveCommittee Senior Management

Conrad Keijzer Member of the ExecutiveCommittee Senior Management

Sven Dumoulin General Counsel, Member of theExecutive CommitteeSenior Management

2011 43

Source : GlobalData

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Akzo Nobel N.V. - Key Employee Biographies Akzo Nobel N.V., Key Employee Biographies Ton BuchnerJob Title: Chairman Board of Management and theExecutive Committee , Chief Executive OfficerBoard Level: Senior ManagementSince: 2012Age: 47

Mr. Ton Buchner has been the chief executive officer and the chairman of boardof management of the company since 2012. From 2007, he served as thepresident and chief executive officer of Sulzer Corporation. He also served asthe divisional president of Sulzer Corporation. He also served with AllseasEngineering in Europe and AkerKvaerner in South East Asia.

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Akzo Nobel N.V. - Company Statement The following statement has been taken from companys 2013 report. Financial highlights: 2013 revenue was down 5 percent, mainly due to adverse currency effects and divestments. Operating incomewas 958 million and included 61 million incidental results. Excluding these, operating income was 897 million (2012: 908 million).Net debt was 769 million lower at 1,529 million (2012: 2,298 million). The performance improvement program exceeded targetsand has now successfully been completed, one year ahead of schedule. Revenue in Decorative Paints declined 3 percent comparedwith 2012 due to adverse currency effects and divestments. Volumes were up 3 percent for the year with increases in all regions exceptEurope, which was flat overall, reflecting the difficult trading conditions. Q4 revenue was down 6 percent due to the divestment ofBuilding Adhesives and adverse currency effects. Volumes in Q4 were up in all regions, against a low base in 2012. Revenue in Performance Coatings declined 2 percent compared with the previous year, due to adverse currencies and overall flatvolumes, but with continued variability between individual segments. Volumes were down at the start of the year compared with 2012 reflecting the difficult trading conditions but gradually improved, with Q4 volumes being up 2 percent It was a year of continued softdemand for Specialty Chemicals, with low activity being particularly evident in constructionrelated products, pulp bleaching and theplastics industries. In addition to the general slowdown in demand, new plant start-ups and extended maintenance stops earlier in theyear impacted production temporarily Divestments During 2013, several divestments were concluded: The divestment of DecorativePaints North America. This business was reported as a discontinued operation. The divestment resulted in a gain of 141 million andcash inflows of 779 million The divestment of Building Adhesives was completed on October 1, 2013, resulting in a gain of 198million and cash inflows of 247 million. This transaction accounts for the divestment impact in Q4 revenue in Decorative Paints Inaddition, we concluded smaller divestments, such as the Primary Amides and Purate businesses, and agreed to sell the German storesin Decorative Paints in 2014. In 2012, Chemicals Pakistan was divested. Operating income In 2012, the ongoing businesses of Deco-rative Paints recorded a goodwill impairment of 2,106 million. An amount of 372 million was recorded for the Decorative Paintsbusiness in North America in results from discontinued operations. In this report, impairments from the 2012 numbers are excludedfrom operating income to present comparable financial outcomes. Decorative Paints' results include the gain of 198 million on the divestment of Building Adhesives. Margins improved due to marginmanagement and lower raw material prices, both for the full year and the fourth quarter. Performance improvement programs andrestructuring measures have lowered the cost base. Restructuring charges were below the previous year In Performance Coatings,margins were stable despite higher restructuring costs Specialty Chemicals' results include a non-cash impairment charge of 139million on a business held for sale. Focus on cost control and margin management was maintained in all businesses, with acomprehensive performance improvement program being implemented at Functional Chemicals Full-year average raw material costswere down, having stabilized during the year. Performance improvement program The performance improvement program announcedin October 2011 has exceeded targets and achieved 545 million in EBITDA for the period 2011 through 2013. This successfullycompletes the performance improvement program a year ahead of schedule. Further efficiency and cost reduction measures have beenidentified as part of continuous improvement initiatives which are integrated in the regular business activities. Full-year restructuring costs were 348 million (2012: 292 million) with 204 million in Q4 (2012: 115 million). Operating income inother activities Operating income in other activities was lower than the previous year due to pensions. In 2012, there was an one-offgain and in 2013 additional costs were incurred due to the de-risking of the pension liabilities in the US. Net financing expenses Netfinancing expenses for the year decreased by 5 million, from 205 million to 200 million, mainly due to the net effect of: lower returnon investments held in an escrow account lower discount rates for pensions higher discount rates for other provisions highercapitalized interest Tax The year-to-date tax rate is 14 percent (2012: 31 percent excluding the goodwill impairment charge of 2,106million) due to a non-cash gain as a result of the recognition of previously unrecognized deferred tax assets and several non-taxableitems. Excluding these effects, the tax rate is 30 percent.

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Akzo Nobel N.V. - Locations And Subsidiaries Head OfficeAkzo Nobel N.V.Strawinskylaan 2555AmsterdamNoord-HollandZIP: 1077NetherlandsTel: +31 20 5027555Fax: +31 20 5027605 Other Locations & Subsidiaries Akzo Nobel N.V., Subsidiaries

Akzo Nobel (Asia) Co., Ltd.The Exchange, 5th Floor299 Tong Ren RoadShanghaiSHAZip: 200040ChinaTel: +86 21 22163600

Akzo Nobel Surface Chemistry LLC525 West Van Buren StreetChicagoILZip: 60607United StatesTel: +1 312 5447000Fax: +1 312 5447320Url: www.akzonobel.com

Akzo Nobel Coatings AGTaschmattstrasse 16LucerneLuzernZip: 6015SwitzerlandTel: +41 41 2681414

Akzo Nobel Coatings, S.p.A.Via Carlo Goldoni 38/40Trezzano sul NaviglioMilanoItaly

Akzo Nobel Chemicals International B.V.Strawinskylaan 2555AmsterdamNoord-HollandZip: 1077 ZZNetherlandsTel: +31 20 5027555Url: www.akzonobel.com

Akzo Nobel Farbe & Heimtex GmbHRosenheimer Street 3HanseaticBremenZip: 28219Germany

Quest International65 ParkerIrvineCAZip: 92618United StatesTel: +1 949 5819900Fax: +1 949 5814011Url: www.questinc.com

Akzo Nobel Aerospace CoatingsE Water StWaukeganILZip: 60085United StatesTel: +1 847 6234200

Akzo Nobel Car Refinishes A/SBaldersbuen 31HedehuseneZip: 2640

Advanced BioScience Laboratories, Inc.9800 Medical Center DriveBuilding DRockville

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DenmarkTel: +45 46 564111

MDZip: 20850United StatesTel: +1 301 8815600Fax: +1 301 8165438Url: www.ablinc.com

Akzo Nobel Aerospace Coatings GmbHIn de Tarpen 41NorderstedtSchleswig-HolsteinZip: 22848GermanyTel: +49 40 5268380

CPFilms Limited13 Acorn Business Centre Northarbour Road Cosham,Portsmouth, Hampshire PO6 3TH UKUnited KingdomTel: +44 2392 219112Fax: +44 2392 219102

Akzo Nobel Coatings CZ, a.s.Podvihovska 304/12OpavaZip: 747 70Czech Republic

Diosynth BiotechnologyUnited StatesUrl: www.diosynthbiotechnology.com

Akzo Nobel Sweden Finance ABSweden

International Paint Limited26th FloorPortland HouseLondonENGZip: SW1E 5BGUnited KingdomTel: +44 20 79329900Fax: +44 20 79329932Url: www.international-marine.com

Akcros Chemicals LtdLankro WayEcclesManchesterENGZip: M30 OLXUnited KingdomTel: +44 161 7851111Fax: +44 161 7887886Url: www.akcros.com

ICI Polska Sp. Z o.o.Poland

Akcros ChemicalsPO Box 1EcclesManchesterZip: M30 0BHUnited KingdomTel: +44 161 785 1111Fax: +44 161 788 7886Url: www.akcros.com

Marshall Boya Ve Vernik Sanayii A.S.Turkey

Akzo Nobel Coatings ASFlisbonnveien Sofiemyr 6KolbotnZip: 1412Norway

Akzo Nobel Coatings GmbHAubergstrasse 7SalzburgSalzburgZip: 5161

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Tel: +47 66819400

AustriaTel: +43 662 489890

Akzo Nobel Chemicals Ltd1 City Centre DriveMississaugaONZip: L5B 1M2CanadaTel: +1 905 2735959

Akzo Nobel (Australia) Pty Ltd2 Capelli RoadWingfieldSAZip: 5013AustraliaTel: +61 8 83594333

ICI Chemicals & Polymers LtdBelasis Avenue Chilton SitePO Box 1, Billingham, Cleveland,Zip: TS23 1LBUnited KingdomTel: +44 1642 523303

Akzo Nobel Industrial Chemicals B.V.Stationstraat 77AmersfoortZip: 3811NetherlandsTel: +31 33 4676231

Akzo Nobel Coatings OyValimotie 22VantaaFinlandTel: +358 10 8419500

Akzo Nobel Lakokraska LtdSovkhoznaya street 38Orekhovo-ZuevoMoscow OblastZip: 142603RussiaTel: +7 495 4117350

Akzo Nobel Decorative Coatings BVNetherlands

Akzo Nobel Polymer Chemicals LLC525 West Van Buren StreetChicagoILZip: 60607United StatesTel: +1 312 5447000Fax: +1 312 5447408Url: www.akzonobel.com/polymer

ICI India Limited10th floor , DLF Plaza TowerDLF Qutab Enclave, Phase - 1GurgaonHaryanaZip: 122002IndiaTel: +91 0124 2540400Fax: +91 0124 2540849Url: www.iciindia.com

AN Dekor Ukraine LLCObolonskaya naberezhnaya 7KievKievZip: 04211UkraineTel: +380 44 5818592

Akzo Nobel Powder CoatingsZ.I. de la GaudreeDourdanZip: 91416FranceTel: +33 1 60818181

Imperial Chemical Industries Ltd.

Source : GlobalData

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Akzo Nobel N.V. - Financial Ratios Financial Ratios - Capital Market RatiosAkzo Nobel N.V., Ratios based on current share price

Key Ratios 20-Jan-2015P/E (Price/Earnings) Ratio 25.23EV/EBITDA (Enterprise Value/Earnings Before Interest, Taxes, Depreciation and Amortization) 16.74Enterprise Value/Sales 1.19Enterprise Value/Operating Profit 18.14Enterprise Value/Total Assets 1.08Dividend Yield 0.02Note: Above ratios are based on share price as of 20-Jan-2015, the above ratios are absolute numbersSource : GlobalData

Financial Ratios - Annual RatiosAkzo Nobel N.V., Annual Ratios

Key Ratios Unit/Currency 2009 2010 2011 2012 2013Equity Ratios EPS (Earnings per Share) EUR 1.08 2.83 2.27 -6.98.00 2.44Dividend per Share EUR 1.35 1.40 1.45 1.23 1.23Dividend Cover Absolute 0.8 2.02 1.57 -5.66 1.98.00Book Value per Share EUR 33.47 38.47 38.48 24.11 23.06Cash Value per Share EUR 4.12 6.63 6.97.00 6.07 5.49

Profitability Ratios Gross Margin % 40.22 40.77 38.48 37.81 38.65Operating Margin % 6.56 8.33 7.84 -7.78 6.57Net Profit Margin % 2.19 5.15 3.27 -13.59 4.96.00Profit Markup % 67.28 68.82 62.54 60.80 63.00PBT Margin (Profit Before Tax) % 3.62 6.26 5.70 -9.03.00 5.29Return on Equity % 3.67 8.39 5.28 -36.29 12.94Return on Capital Employed % 5.97 8.22 7.37 -9.41 8.70Return on Assets % 1.51 3.75 2.34 -11.73 4.51Return on Fixed Assets % 6.76 9.62 8.32 -11.07 9.86Return on Working Capital % 50.86 56.33 64.80 -62.85 73.69

Growth Ratios Sales Growth % -15.48 12.37 -0.25 5.38 -5.20Operating Income Growth % 42.57 -6.07 -204.63 EBITDA Growth % 94.69 17.23 -202.33 Net Income Growth % 164.56 -36.74 -538.57 EPS Growth % 120.18 74.90 -22.35 -108.83 Working Capital Growth % 153.16 28.73 -18.35 7.87 -31.79

Cost Ratios Operating Costs (% of Sales) % 93.44 91.67 92.16 107.78 93.43Administration Costs (% of Sales) % 31.55 30.36 27.43 28.90 29.81

Liquidity Ratios Current Ratio Absolute 1.37 1.41 1.37 1.37 1.26Quick Ratio Absolute 1.05 1.09 0.97.00 1.07 0.98.00Cash Ratio Absolute 0.47 0.55 0.34 0.34 0.42

Leverage Ratios

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Debt to Equity Ratio % 0.5 0.42 0.39 0.70 0.65Net Debt to Equity Absolute 0.37 0.25 0.21 0.45 0.41Debt to Capital Ratio % 0.27 0.26 0.23 0.32 0.33

Efficiency Ratios Asset Turnover Absolute 0.69 0.73 0.72 0.86 0.91Fixed Asset Turnover Absolute 3.75 4.33 3.94 4.12 4.07Inventory Turnover Absolute 5.4 5.17 4.67 6.19 6.28Current Asset Turnover Absolute 2.09 1.97 2.21 2.20 2.30Capital Employed Turnover Absolute 1.68 1.63 1.62 2.67 2.61Working Capital Turnover Absolute 7.75 6.77 8.26 8.07 11.22Revenue per Employee EUR 303,895Net Income per Employee EUR 15,080Capex to Sales % 3.94 3.65 4.51 5.37 4.56R&D to Sales % 2.51 2.28 0.61 0.74 0.76Source : GlobalData

Financial Ratios - Interim RatiosAkzo Nobel N.V., Interim Ratios

Key Ratios Unit/Currency Sep-2013 Dec-2013 Mar-2014 Jun-2014 Sep-2014Interim EPS (Earnings per Share) EUR 0.64 0.14 0.52 0.84 0.83Dividend per Share EUR 0.95 0.28 Book Value per Share EUR 23.94 23.06 20.53 20.53 22.50Gross Margin % 39.23 36.88 38.63 39.95 39.99Operating Margin % 8.02 3.33 6.38 9.51 9.09Net Profit Margin % 4.10 1.46 3.81 5.53 5.56Profit Markup % 64.55 58.42 62.96 66.52 66.64PBIT Margin (Profit Before Interest &Tax)

% 7.65 0.92 4.91

PBT Margin (Profit Before Tax) % 6.64 1.98 5.47 8.60 8.22Operating Costs (% of Sales) % 91.98 96.67 93.62 90.49 90.91Administration Costs (% of Sales) % 28.43 32.94 32.34 30.43 31.42Interest Costs (% of Sales) % 1.73 3.72 1.64Current Ratio Absolute 1.24 1.26 1.11 1.10 1.16Quick Ratio Absolute 0.97 0.98 0.81 0.80 0.84Debt to Equity Ratio % 0.70 0.65 0.64 0.63 0.53Net Debt to Equity Absolute 0.31 0.27 0.44 0.42 0.33Debt to Capital Ratio % 0.35 0.33 0.32 0.32 0.28Interest Coverage Ratio Absolute 442.86 24.82 3.00Source : GlobalData

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Financial Ratios - Ratio Charts

Akzo Nobel N.V., Ratio ChartsEPS Operating Margin

Return on Equity Return on Assets

Debt to Equity Ratio Current Ratio

Source : GlobalData

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Recent Developments Oct 21, 2014 : AkzoNobel Q3 Results 2014 Akzo Nobel N.V. reported positive volume growth and, for the fifth consecutive quarter, an improvement in Return on sales(ROS) from 8.0 percent to 9.1 percent. Excluding restructuring costs of 55 million, ROS was 10.6 percent (2013: 10.0percent). Operating income grew 11 percent to 335 million (2013: 303 million), reflecting the benefits of ongoing operationalefficiency programs, although this was partially offset by new restructuring costs in Performance Coatings. Net incomeattributable to shareholders was 205 million (2013: 155 million), due to higher operating income and lower financeexpenses. Revenue for the third quarter declined 2 percent, with volume growth being offset by negative currency effectsand divestments. CEO Ton Bchner"AkzoNobel delivered a solid Q3 performance, despite continued economic uncertainty. Return on salesimproved for the fifth consecutive quarter to 9.1 percent, while operating income grew by 11 percent. Conditions continue tobe challenging, but we have a resilient strategy focused on stimulating organic and sustainable growth. Coupled with thebenefits from our ongoing operational efficiency programs, we are on track to deliver on our 2015 targets. "Q3 was also notable for several achievements, including being ranked first in our industry on the Dow Jones SustainabilityIndex for the third year running. In addition, our Human Cities initiative gathered momentum when we made a commitmentto the Clinton Global Initiative and partnered with The Rockefeller Foundation through its 100 Resilient Cities program. Wealso developed coatings technology for the world's first fully recyclable and compostable paper cup, and we broke groundon a new Decorative Paints site in Chengdu, China." Decorative Paints: Volumes were flat compared with the previous year. Market conditions in Europe remained challenging,while volumes were higher in Asia. Revenue declined compared with the previous year, due to the divestment of BuildingAdhesives and the adverse price/mix effect driven by the sale of the German stores. Operating income was higher than2013 due to lower restructuring expenses. Performance Coatings: Volumes were up, while revenue was flat on 2013 as price/mix and adverse currencies offset highervolumes. Cost control measures continued in all businesses. The new organizational structure has reduced the number ofglobal management layers, resulting in higher restructuring costs. As a result, operating income declined on the previousyear. Specialty Chemicals: Volume for the quarter was in line with 2013, with growth being offset by some planned outages in thechain, as well as industrial action in Rotterdam. Revenue declined, due to adverse currency developments and pricepressure in some segments such as in caustic. Despite the economic slowdown, profitability increased due to benefits fromrestructuring activities and cost savings, as well as lower restructuring costs. OutlookAkzoNobel is on track to deliver on its 2015 targets despite the continued fragile economic environment. Oct 08, 2014 : AkzoNobel EGM Appoints Maelys Castella As Member Of The Board Of Management Shareholders of Akzo Nobel N.V. held an Extraordinary General Meeting in Amsterdam and appointed new CFO MaelysCastella as a member of the Board of Management. Maelys is already a member of the company's Executive Committee as Chief Financial Officer since September 15 and isbased at AkzoNobel's head office in Amsterdam. She succeeded Keith Nichols who left the company in June this year. "Maelys is a high caliber professional with a wealth of experience in finance who brings key skills and capabilities to ourcompany," said Antony Burgmans, Chairman of AkzoNobel's Supervisory Board. A French national, Malys previously worked at Air Liquide for 14 years, most recently as Group Deputy CFO. Her previousposts there include Europe Chief Financial Officer and Group Corporate Finance and Treasury Director. She started hercareer at the international ELF Oil & Gas Group. Jun 17, 2014 : Akzo Noble: Maelys Castella Appointed As CFO AkzoNobel has announced the appointment of Maelys Castella (47) as the companys new Chief Financial Officer. She will

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officially take up the position on September 15. Maelys Castella succeeds Keith Nichols, who announced his intention to leave AkzoNobel on January 15, 2014. She hasworked at Air Liquide for the last 14 years, most recently as Group Deputy CFO. Her previous posts there include EuropeChief Financial Officer and Corporate Finance and Treasury Director. Commenting on the appointment, AkzoNobel CEO Ton Bchner said: "We're delighted to have appointed Malys as thecompany's CFO. She brings a wealth of experience in finance and will add fresh impetus to our ongoing commitment toimprove operational excellence and drive value creation." Added Antony Burgmans, Chairman of AkzoNobel's Supervisory Board: "This is a very important appointment. Malys is ahigh caliber professional who will bring key skills and capabilities to the company. After a thorough and international searchand selection program that saw many talented candidates, we're very happy that Malys will be joining us as CFO." Malys Castella said: "I am looking forward to working for AkzoNobel with great enthusiasm. It is a company I muchadmire, where I believe I can make a major contribution to the management team in their focus on operational excellence." A French national, Malys Castella joined Air Liquide as Group Financing Manager in 2000. She previously worked for ELFOil & Gas Group, where her positions included Financing and Capital Markets Manager. She will be nominated for appointment to AkzoNobel's Board of Management and will be based at the company's headoffice in Amsterdam, the Netherlands. Ton Bchner will take over CFO responsibilities in the brief transition period betweenKeith Nichols' departure and Malys Castella's commencement date. Feb 06, 2014 : AkzoNobel publishes Q4 and full-year 2013 results Akzo Nobel N.V publishes Q4 and full-year 2013 results. Q4 volume development positive in all three Business Areas and ROS% excluding restructuring costs and incidentalsincreased, continuing the trend from Q3 Revenue for both Q4 and full year down 5 percent, due to adverse currency effects and divestments 2013 operating income at 958 million (excluding 61 million incidentals: 897 million2012: 908 million excludingimpairment) Net income attributable to shareholders 724 million (2012: 386 million excluding impairment) and adjusted EPS at 2.62(2012: 2.55) Net debt down 769 million at 1,529 million (2012: 2,298 million) Total dividend for 2013 proposed at 1.45 (2012: 1.45) Performance improvement program completed one year ahead of scheduletarget exceeded with 545 million total savingsachieved On track to deliver 2015 targets despite expected continued fragile economic environment and volatile foreign currenciesin 2014 Akzo Nobel N.V. (AkzoNobel) today announced its Q4 and full-year 2013 results. Revenue for the year totaled 14,590million, down 5 percent on 2012 as a consequence of adverse currency effects and divestments. 2013 operating incomeexcluding incidentals came in at 897 million (2012: 908 million excluding impairment). Net income attributable toshareholders reached 724 million, up from 386 million in 2012. Net debt came down by a third to 1,529 million at theend of 2013. The company has successfully completed its multi-year performance improvement program a year ahead ofschedule, exceeding its targets in doing so. In 2014, AkzoNobel will continue to significantly restructure to reduce costsfurther and anticipates related restructuring charges of at least 250 million. CEO Ton Bchner "We indicated at the start of 2013 that trading conditions would continue to be challenging and that has proven to be thecase. In response we accelerated our company-wide improvement actions and have brought our performance

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improvement program to a successful conclusion a year ahead of schedule and above target. While the first half of 2013 was impacted by weaker trading conditions and specific one-off events in Specialty Chemicals,the second half has shown early signs of stabilization in several end markets. In combination with our restructuring actionsthis positive effect has been evident in our improving return on sales in the third and fourth quarters, despite foreigncurrency headwinds. In 2014, we will continue to improve our ability to leverage our strong brands and leading marketpositions. We will further restructure our business, reduce our costs and drive organic growth. I am confident that we are ontrack to deliver on our 2015 strategic goals." Business performanceDecorative Paints full-year revenue was down 3 percent as a result of adverse currency effects anddivestments. Global volumes for the year were up 3 percent, with increases in all regions except Europe, which remainedflat in a reflection of difficult trading conditions. The pick-up in overall volumes was particularly noticeable in the second halfof the yearQ3 and Q4 volumes were each up 5 percent compared with the prior year. Margins improved as a result ofstrong margin management and lower raw material prices. Performance improvement and restructuring measures led to alower cost base, which, combined with lower restructuring charges, drove operating income above the previous year,before the divestment gain on Building Adhesives. Full-year revenue at Performance Coatings declined 2 percent on flat volumes as adverse currency effects outweighed apositive price/mix development. Volumes gradually improved throughout the year to be flat overall, and up 2 percent in Q4.Margins were maintained despite higher restructuring costs. Operating income for the year as a whole was down 3 percent,with underlying improvements offset by higher restructuring charges as well as adverse currencies. Restructuring activitieswere accelerated in the fourth quarter, with the intended closure of seven sites world-wide being communicated. Specialty Chemicals annual revenues not only reflected a year of continued soft demand, but also included a significantdivestment effect from the sale in 2012 of Chemicals Pakistan. Full-year revenues were down 11 percent, with 6 percentattributable to divestments and 2 percent a consequence of adverse currency effects. Lower volumes accounted for afurther 2 percent revenue decline, although they did stabilize in the second half of the year and volumes in Q4 were up 3percent versus Q4 2012. Full-year operating income was impacted by increased restructuring costs versus the previousyear, with a comprehensive performance improvement program implemented at Functional Chemicals in the second half ofthe year. The divestments of both the Primary Amides and Purate businesses were completed in Q4. Performance improvement program The performance improvement program (PIP) announced in October 2011 has exceeded the anticipated cumulativeamount of 500 million in EBITDA for the period through 2013. The program has delivered a total of 545 million in benefitsa year earlier than originally planned and has now been completed. Further efficiency and cost reduction measures havebeen identified as part of continuous improvement initiatives which are integrated in the regular business activities. Totalrestructuring costs for 2013 amounted to 348 million (2012: 292 million), of which 204 million in Q4. AkzoNobelanticipates 2014 restructuring charges of at least 250 million. Raw materials Full-year average raw material costs stabilized during the year and were down versus 2012. Proposed dividend Our dividend policy is to pay a stable to rising dividend. We will propose a 2013 final dividend of 1.12 per share, whichwould make a total 2013 dividend of 1.45 per share. This is stable versus the total dividend per share paid out in 2012 of1.45. Sustainability and innovation AkzoNobel's drive for operational excellence and performance improvement is supported by its 'Planet Possible'sustainability strategy focused at creating more value from fewer resources. Building on its number one position in theMaterials industry group on the Dow Jones Sustainability Indices (DJSI), AkzoNobel keeps intensifying its activities toimplement the strategy which includes the following targets: In 2020, AkzoNobel's eco-premium products with a downstream benefit will account for 20 percent of revenue. In 2013this was 18% Carbon emissions will be reduced by 25 to 30 percent per ton of product by 2020 (base 2012).

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Improve resource efficiency across the full value chain Feb 06, 2014 : Akzo Nobel Supervisory Board changes The Supervisory Board of Akzo Nobel N.V. announced changes to its membership that will be proposed for adoption by thecompany's Annual General Meeting of Shareholders on April 29th, 2014. Current Chairman Karel Vuursteen will retire from the Supervisory Board having completed 3 terms of office since joiningthe Board in 2002. He became Chairman in 2009. Antony Burgmans will be put forward for re-appointment after reaching the end of his second term at this year's AGM.Following such re-appointment the Supervisory Board intends to elect Mr Burgmans as Chairman to succeed MrVuursteen. Louis Hughes will also reach the end of his second term this year and will be nominated for re-appointment. Sir Peter Ellwood will step down at the AGM after six years on the Board. Chairman Karel Vuursteen commented: "Onbehalf of my colleagues I would like to thank Sir Peter for the valuable contribution he has made to the good governanceand smooth running of the company over the last six years." In his place the Supervisory Board is putting forward Mr Byron Grote for appointment. Mr Grote brings with him extensiveexperience of complex multinational environments as well as deep financial expertise, having been a member of the Boardof BP plc from 2000 to 2013, during which time he headed the petrochemicals business before becoming CFO. Mr Grotecurrently holds the role of non-executive director at Unilever, chairing the Audit Committee, and is also a non-executivedirector at Anglo-American plc. Following the proposed changes, the Supervisory Board will have eight members instead of the current nine. The full agenda for AkzoNobel N.V.'s Annual General Meeting, to be held in Amsterdam on April 29, 2014, will be publishedon March 18. The Annual Report over 2013 will be available online on the company's website and as an iOS app on theAppStore on February 26. Jan 15, 2014 : Chief Financial Officer Keith Nichols to step down at the end of June The Supervisory Board of Akzo Nobel N.V. today announced that Keith Nichols, Chief Financial Officer and member of theBoard of Management, has decided to step down at the end of June after eight highly successful years with the company. Keith will remain Chief Financial Officer and retain his position on the Board until June 30, 2014. An international search forKeith's successor is being undertaken and an appointment will be made in due course. Chief Executive Officer Ton Bchner: "We thank Keith for his dedication and commitment to AkzoNobel over the past eightyears. He has played a major role in the transformation of the company's portfolio, most notably in the exit of ourPharmaceutical business and, since becoming CFO in 2008, has made an outstanding contribution in driving financialdiscipline and functional excellence across the company. We will miss Keith's valuable and insightful input as well as hishard work and I know that I speak on behalf of all my colleagues in wishing him well for the future." Keith Nichols commented: "Making a decision like this is never easy but I leave the company well placed to deliver its 2015financial targets. I would like to thank my colleagues throughout the company and wish them all the very best for thefuture." Karel Vuursteen, Chairman of the Supervisory Board, said: "On behalf of all my Supervisory Board colleagues, I would liketo thank Keith for the significant contribution he has made to the company and wish him every success in his newendeavours."

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AppendixThe data and analysis within this report is driven by GlobalData.GlobalData gives you key information to drive sales, investment and deal making activity in your business.The key industries include Alternative Energy, Construction, Oil & Gas, Clean Technology, Technology andTelecommunication, Healthcare, Power, Financial Services, Retail & Consumer Packaged Goods and Transport. MethodologyGlobalData company reports are based on a core set of research techniques which ensure the best possible level of qualityand accuracy of data. The key sources used include:Company WebsitesCompany Annual ReportsSEC FilingsPress ReleasesProprietary Databases Currency Codes

Currency Code CurrencyEUR EuroGlobalData

Ratio Definitions

Capital Market RatiosCapital Market Ratios measure investor response to owning a company's stock and also the cost of issuingstock.Price/EarningsRatio (P/E)

Price/Earnings (P/E) ratio is a measure of the price paid for a share relative to the annualincome earned per share. It is a financial ratio used for valuation: a higher P/E ratiomeans that investors are paying more for each unit of income, so the stock is moreexpensive compared to one with lower P/E ratio. A high P/E suggests that investors areexpecting higher earnings growth in the future compared to companies with a lower P/E.Price per share is as of previous business close, and EPS is from latest annual report.

Calculation: Price per Share / Earnings per ShareEnterpriseValue/Earningsbefore Interest, Tax,Depreciation &Amortization(EV/EBITDA)

Enterprise Value/EBITDA (EV/EBITDA) is a valuation multiple that is often used inparallel with, or as an alternative to, the P/E ratio. The main advantage of EV/EBITDAover the PE ratio is that it is unaffected by a company's capital structure. It compares thevalue of a business, free of debt, to earnings before interest. Price per share is as ofprevious business close, and shares outstanding last reported. Other items are fromlatest annual report.Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / (Net Income +

Interest + Tax + Depreciation + Amortization)EnterpriseValue/Sales

Enterprise Value/Sales (EV/Sales) is a ratio that provides an idea of how much it costs tobuy the company's sales. EV/Sales is seen as more accurate than Price/Sales becausemarket capitalization does not take into account the amount of debt a company has,which needs to be paid back at some point. Price per share is as of previous businessclose, and shares outstanding last reported. Other items are from latest annual report.

Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / SalesEnterpriseValue/OperatingProfit

Enterprise Value/Operating Profit measures the company's enterprise value to theoperating profit. Price per share is as of previous business close, and shares outstandinglast reported. Other items are from latest annual report.

Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Operating Income

EnterpriseValue/Total Assets

Enterprise Value/Total Assets measures the company's enterprise value to the totalassets. Price per share is as of previous business close, and shares outstanding lastreported. Other items are from latest annual report.

Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Total AssetsDividend Yield

Dividend Yield shows how much a company pays out in dividends each year relative toits share price. In the absence of any capital gains, the dividend yield is the return oninvestment for a stock.Calculation: Annual Dividend per Share / Price per Share

GlobalData

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Equity RatiosThese ratios are based on per share value.Earnings perShare (EPS)

Earnings per share (EPS) is the portion of a company's profit allocated to eachoutstanding share of common stock. EPS serves as an indicator of a company'sprofitability.Calculation: Net Income / Weighted Average Shares

Dividend perShare

Dividend is the distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Dividend Cover

Dividend cover is the ratio of company's earnings (net income) over the dividend paid toshareholders.Calculation: Earnings per share / Dividend per share

Book Value perShare

Book Value per Share measure used by owners of common shares in a firm to determinethe level of safety associated with each individual share after all debts are paidaccordingly.Calculation: (Shareholders Equity - Preferred Equity) / Outstanding Shares

Cash Value perShare

Cash Value per Share is a measure of a company's cash (cash & equivalents on thebalance sheet) that is determined by dividing cash & equivalents by the total sharesoutstanding.Calculation: Cash & equivalents / Outstanding Shares

GlobalData

Profitability RatiosProfitability Ratios are used to assess a company's ability to generate earnings, based on revenues generatedor resources used. For most of these ratios, having a higher value relative to a competitor's ratio or the sameratio from a previous period is indicative that the company is doing well.Gross Margin

Gross margin is the amount of contribution to the business enterprise, after paying fordirect-fixed and direct-variable unit costs.Calculation: {(Revenue-Cost of revenue) / Revenue}*100

OperatingMargin

Operating Margin is a ratio used to measure a company's pricing strategy and operatingefficiency.Calculation: (Operating Income / Revenues) *100

Net ProfitMargin

Net Profit Margin is the ratio of net profits to revenues for a company or businesssegment - that shows how much of each dollar earned by the company is translated intoprofits.Calculation: (Net Profit / Revenues) *100

Profit Markup

Profit Markup measures the company's gross profitability, as compared to the cost ofrevenue.Calculation: Gross Income / Cost of Revenue

PBIT Margin(Profit BeforeInterest & Tax)

Profit Before Interest & Tax Margin shows the profitability of the company before interestexpense & taxation.Calculation: {(Net Profit+Interest+Tax) / Revenue} *100

PBT Margin(Profit BeforeTax)

Profit Before Tax Margin measures the pre-tax income over revenues.Calculation: {Income Before Tax / Revenues} *100

Return onEquity

Return on Equity measures the rate of return on the ownership interest (shareholders'equity) of the common stock owners.Calculation: (Net Income / Shareholders Equity)*100

Return onCapitalEmployed

Return on Capital Employed is a ratio that indicates the efficiency and profitability of acompany's capital investments. ROCE should always be higher than the rate at which thecompany borrows; otherwise any increase in borrowing will reduce shareholders'earnings.Calculation: EBIT / (Total Assets Current Liabilities)*100

Return on Return on Assets is an indicator of how profitable a company is relative to its total assets,the ratio measures how efficient management is at using its assets to generate earnings.

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Assets

Calculation: (Net Income / Total Assets)*100

Return on FixedAssets

Return on Fixed Assets measures the company's profitability to its fixed assets (property,plant & equipment).Calculation: (Net Income / Fixed Assets) *100

Return onWorking Capital

Return on Working Capital measures the company's profitability to its working capital.Calculation: (Net Income / Working Capital) *100

GlobalData

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Cost RatiosCost ratios help to understand the costs the company is incurring as a percentage of sales.Operating costs(% of Sales)

Operating costs as percentage of total revenues measures the operating costs that acompany incurs compared to the revenues.Calculation: (Operating Expenses / Revenues) *100

Administrationcosts (% ofSales)

Administration costs as percentage of total revenue measures the selling, general andadministrative expenses that a company incurs compared to the revenues.Calculation: (Administrative Expenses / Revenues) *100

Interest costs (%of Sales)

Interest costs as percentage of total revenues measures the interest expense that acompany incurs compared to the revenues.Calculation: (Interest Expenses / Revenues) *100

GlobalData

Liquidity RatiosLiquidity ratios are used to determine a company's ability to pay off its short-terms debts obligations. Generally,the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-termdebts. A company's ability to turn short-term assets into cash to cover debts is of the utmost importance whencreditors are seeking payment. Bankruptcy analysts and mortgage originators frequently use the liquidity ratiosto determine whether a company will be able to continue as a going concern.Current Ratio

Current Ratio measures a company's ability to pay its short-term obligations. The ratiogives an idea of the company's ability to pay back its short-term liabilities (debt andpayables) with its short-term assets (cash, inventory, receivables). The higher the currentratio, the more capable the company is of paying its obligations. A ratio under 1 suggeststhat the company would be unable to pay off its obligations if they came due at that point.Calculation: Current Assets / Current Liabilities

Quick Ratio

Quick ratio measures a company's ability to meet its short-term obligations with its mostliquid assets.Calculation: (Current Assets - Inventories) / Current Liabilities

Cash Ratio

Cash ratio is the most stringent and conservative of the three short-term liquidity ratio. Itonly looks at the most liquid short-term assets of the company, which are those that canbe most easily used to pay off current obligations. It also ignores inventory andreceivables, as there are no assurances that these two accounts can be converted tocash in a timely matter to meet current liabilities.Calculation: {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}

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Leverage RatiosLeverage ratios are used to calculate the financial leverage of a company to get an idea of the company'smethods of financing or to measure its ability to meet financial obligations. There are several different ratios, butthe main factors looked at include debt, equity, assets and interest expenses.Debt to EquityRatio

Debt to Equity Ratio is a measure of a company's financial leverage. The debt/equity ratioalso depends on the industry in which the company operates. For example,capital-intensive industries tend to have a higher debt-equity ratio.Calculation: Total Liabilities / Shareholders Equity

Debt to CapitalRatio

Debt to capital ratio gives an idea of a company's financial structure, or how it is financingits operations, along with some insight into its financial strength. The higher thedebt-to-capital ratio, the more debt the company has compared to its equity. Thisindicates to investors whether a company is more prone to using debt financing or equityfinancing. A company with high debt-to-capital ratios, compared to a general or industryaverage, may show weak financial strength because the cost of these debts may weighon the company and increase its default risk.Calculation: {Total Debt / (Total assets - Current Liabilities)}

InterestCoverage Ratio

Interest Coverage Ratio is used to determine how easily a company can pay interest onoutstanding debt, calculated as earnings before interest & tax by interest expense.Calculation: EBIT / Interest Expense

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Efficiency RatiosEfficiency ratios measure a company's effectiveness in various areas of its operations, essentially looking atmaximizing its use of resources.Fixed AssetTurnover

Fixed Asset Turnover ratio indicates how well the business is using its fixed assets togenerate sales. A higher ratio indicates the business has less money tied up in fixedassets for each currency unit of sales revenue. A declining ratio may indicate that thebusiness is over-invested in plant, equipment, or other fixed assets.Calculation: Net Sales / Fixed Assets

Asset Turnover

Asset turnover ratio measures the efficiency of a company's use of its assets ingenerating sales revenue to the company. A higher asset turnover ratio shows that thecompany has been more effective in using its assets to generate revenues.Calculation: Net Sales / Total Assets

Current AssetTurnover

Current Asset Turnover indicates how efficiently the business uses its current assets togenerate sales.Calculation: Net Sales / Current Assets

InventoryTurnover

Inventory Turnover ratio shows how many times a company's inventory is sold andreplaced over a period. A low turnover implies poor sales and, therefore, excessinventory. A high ratio implies either strong sales or ineffective buying.Calculation: Cost of Goods Sold / Inventory

Working CapitalTurnover

Working Capital Turnover is a measurement to compare the depletion of working capitalto the generation of sales. This provides some useful information as to how effectively acompany is using its working capital to generate sales.Calculation: Net Sales / Working Capital

CapitalEmployedTurnover

Capital employed turnover ratio measures the efficiency of a company's use of its equityin generating sales revenue to the company.Calculation: Net Sales / Shareholders Equity

Capex to sales

Capex to Sales ratio measures the company's expenditure (investments) on fixed andrelated assets' effectiveness when compared to the sales generated.Calculation: (Capital Expenditure / Sales) *100

Net income perEmployee

Net income per Employee looks at a company's net income in relation to the number ofemployees they have. Ideally, a company wants a higher profit per employee possible, asit denotes higher productivity.Calculation: Net Income / No. of Employees

Revenue perEmployee

Revenue per Employee measures the average revenue generated per employee of acompany. This ratio is most useful when compared against other companies in the sameindustry. Generally, a company seeks the highest revenue per employee.Calculation: Revenue / No. of Employees

Efficiency Ratio

Efficiency Ratio is used to calculate a bank's efficiency. An increase means the companyis losing a larger percentage of its income to expenses. If the efficiency ratio is gettinglower, it is good for the bank and its shareholders.Calculation: Non-interest expense / Total Interest Income

GlobalData NotesThe financial and operational data reported for the company is as per the industry defined standardsRevenue converted to USD at average annual conversion rate as of fiscal year end About GlobalDataGlobalData is a premium business information brand specializing in industry and company analysis. DisclaimerAll Rights ReservedNo part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means,electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, GlobalData.The data and analysis within this report is driven by GlobalData from its own primary and secondary research of public andproprietary sources and does not necessarily represent the views of the company profiled.

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The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that thefindings, conclusions and recommendations that GlobalData delivers will be based on information gathered in good faithfrom both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As suchGlobalData can accept no liability whatsoever for actions taken based on any information that may subsequently prove tobe incorrect.

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