report for the year 2012 and the 4th...

Report for the year 2012 and the 4th quarter

2 AkzoNobel I Report for the year 2012 and the fourth quarter

•2012revenueup5percentdrivenbyfavorablecurrenciesandpricing,offsetbylowervolumes

•2012EBITDA4percenthigherat€1,901million(2011:€1,834million)•Performanceimprovementprogram2012targethasbeenexceeded•Netlossfromcontinuingoperations€1,733million(2011:€536millionincome),duetotheQ3impairmentchargeof€2,106million

•Netcashfromoperatingactivitiesup86percentto€737million•AdjustedEPS€3.26(2011:€3.10)•Totaldividendfor2012proposedat€1.45(2011:€1.45)•DecorativePaintsNorthAmericareportedindiscontinuedoperations;ChemicalsPakistandivestmentcompletedin2012

•Theeconomicenvironmentremainschallenging,especiallyinEurope

Our results at a glance

(44 percent in high growth markets)

A North America

B Emerging Europe

Mature Europe

Asia Pacific

C

D

E

F

Latin America Other regions

%

15

8

38

26

112

100

(Based on the full year 2012)

AkzoNobel around the worldRevenue by destination

A

B

C

D

EF

0

1000

2000

3000

4000

5000

3,5493,707

4,044 3,9663,673

Q1 12 Q2 12 Q3 12 Q4 12Q4 11 Q1 12 Q2 12 Q3 12 Q4 12Q4 110

100

200

300

400

500

600

352

438

577

523

363

RevenueIn€millions

EBITDAIn€millions

AkzoNobel I Report for the year 2012 and the fourth quarter3

2011 20122010

12.1%10.5% 10.0%

Moving average ROI %

Returns on invested capital

Summary of financial outcomes

4thquarter January - December

2011 2012 ∆% In€millions 2011 2012 ∆%

3,549 3,673 3 Revenue 14,604 15,390 5

352 363 3 EBITDA1 1,834 1,901 4

9.9 9.9 EBITDAmargin(in%) 12.6 12.4

198 202 2 EBIT1 1,271 1,276 –

5.6 5.5 EBITmargin(in%) 8.7 8.3

MovingaverageROI1(in%) 10.5 10.0

107 7 Operatingincome 1,145 (1,244)

107 7 Operatingincomebeforeimpairment 1,145 862 (25)

(16) (37) Netincomefromcontinuingoperations 536 (1,733)

(52) (22) Netincomefromdiscontinuedoperations (59) (436)

(68) (59) Netincometotaloperations 477 (2,169)

(0.07) (0.16) Earningspersharefromcontinuingoperations(in€) 2.29 (7.30)

(0.29) (0.25) Earningspersharefromtotaloperations(in€) 2.04 (9.14)

0.34 0.50 Adjustedearningspershare(in€) 3.10 3.26

242 330 36 Capitalexpenditures 658 826 26

256 630 146 Netcashfromoperatingactivities 396 737 86

Investedcapital 12,613 11,030

Netdebt 1,895 2,298

Numberofemployees 52,020 50,610

Financial highlights

2010restatedtoexcludeDecorativePaintsNorthAmerica.

1Excludingincidentals.

Discontinued operations

January - December

in€ millions 2011 2012

Revenue 1,094 1,190

EBITDA (69) 19

Performanceimprovementprogramsavings – 26

Incidentals (7) (17)

Impairmentcharge – (372)

Workforceatyear-end 5,220 4,670

Reductionworkforce – 360


Revenuefortheyearwasup5percentdrivenbyfavorablecurrenciesandpricingoffsetbylowervolumes.EBITDAfortheyearwas4percenthigherat€1,901million(2011:€1,834million).Theperformanceimprovementprogramexceededintermediatetargets.Asaconsequenceoftheimpairmentchargeof€2,106millioninQ3,operatingincomewas€1,244millionnegative;excludingtheimpairmentcharge,thiswas€862millionpositive(2011:€1,145million).

Discontinued operationsIn December 2012, we announced thedivestmentofDecorativePaintsNorthAmericatoPPGIndustriesInc.Asaconsequence,theresults of this business are reported indiscontinuedoperations in thestatementsofincome and cash flows and are no longerincludedintheotherexplanationsanddetailsinthisreport.Restatednumbersfor2011andQ1-Q32012canbe foundonpage17andbeyondofthisreport.

Revenue• RevenueinDecorativePaintsfor2012

increased2percent,mainlyduetopositiveprice/mixandfavorablecurrencies.AsianrevenueisgrowingduetostrongvolumedevelopmentinChina.However,marketconditionsremainchallenginginEuropeandLatinAmerica.Q4sawsimilardevelopmentstothefullyear.

• InPerformanceCoatings,revenueincreased10percentcomparedwiththepreviousyear.ThestrongestgrowthcamefromIndustrialCoatingsandMarineandProtectiveCoatings.Volumedeclined,withdifferencesbetweenindividualbusinesses.InQ4,revenuewasup5percentoverthepreviousyear,supportedbycurrenciesandtheacquisitionofSchramm/SCCP.

• SpecialtyChemicalsmadeagoodstartto2012,butdemandstartedtoweakeninthesecondhalfoftheyear,particularlyinEuropeandingeneralinconstruction-relatedproducts.Demandwasalsomorevolatile.

Acquisitions and divestmentsEarly2012,weacquiredBoxingOleochemicalsinSpecialtyChemicals–theleadingsupplierofnitrile amines and derivatives in China andthroughout Asia. The Schramm/SSCPacquisitionaccountedfortheacquisitioneffectin Performance Coatings as these activitieswere consolidated from Q4 2011. OnDecember 28, 2012, we completed thedivestmentofChemicalsPakistan,whichwassubsequentlydeconsolidated.

Financial highlights

-2%+3% +1%

+3% +5%6

02

-2

-4

4

8

Revenue development 2012Increase Decrease

-1%+2% 0%

+2% +3%6

02

-2

-4

4

8

Revenue development Q4 2012Increase Decrease

Revenue


2011 2012 ∆% in€ millions 2011 2012 ∆%

965 995 3 DecorativePaints 4,201 4,297 2

1,326 1,394 5 PerformanceCoatings 5,170 5,702 10

1,285 1,320 3 SpecialtyChemicals 5,335 5,543 4

(27) (36) Otheractivities/eliminations (102) (152)

3,549 3,673 3 Total 14,604 15,390 5

in%versus2011 Volume Price/mix AcquisitionsExchange

rates Total

DecorativePaints (2) 2 – 2 2

PerformanceCoatings (1) 5 2 4 10

SpecialtyChemicals (1) 1 1 3 4

Total (2) 3 1 3 5

in%versusQ42011 Volume Price/mix AcquisitionsExchange

rates Total

DecorativePaints 2 – – 1 3

PerformanceCoatings (2) 3 1 3 5

SpecialtyChemicals (1) 1 1 2 3

Total (1) 2 – 2 3


Raw materials On average, rawmaterial costswere stablecompared with the previous year, with theupwardpressureonoilpricesoffsettingsofterTiO2prices.

EBITDA• InDecorativePaints,EBITDAfortheyear

was11percentlowerat€425millionreflectingweakerdemandfromourEuropeanmarkets.Theeurocrisisandthegeneralslowdowninglobalmarketscontinuedtoaffectourbusiness.RestructuringactivitiescontinuedacrossEurope.

• InPerformanceCoatings,overallmarginsimprovedduetoacombinationofmarginmanagementactivitiesandongoingcostcontrol.Themajorrestructuringactivitieswereundertakeninmaturemarkets.MarginmanagementandoperationalefficiencyimprovementsresultedinEBITDAof€769million,26percenthigherthanthepreviousyear.

• InSpecialtyChemicals,werecordedarobustperformanceintheyearonthebackofmarginmanagement,costcontrolmeasuresandstrongmarketandtechnologyleadershippositions.However,performanceinthelastquarterwasunfavorablyimpactedbythegeneralslowdownindemand(especiallyinFunctionalChemicals),somedestockingatyear-endandproduction-relatedissuesatourcustomers.

Performance improvement programThe performance improvement programannounced inOctober2011 ismakinggoodprogress and has exceeded its intermediategoalfor2012.Sincetheannouncementoftheprogram, benefits amount to €250 million(excluding €26 million contributed byDecorative Paints North America). Theprogram conceptually consists of threebuildingblocks:operationalprofessionalization,functionalexcellenceandbusinessunitspecificadaptations. Operational professionalization

Volumedevelopmentperquarter(year-on-year) Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

DecorativePaints (1) – (3) (6) 2

PerformanceCoatings (2) (1) (2) – (2)

SpecialtyChemicals (4) (1) (2) (2) (1)

Total (3) (2) (3) (3) (1)

Price/mixdevelopmentperquarter(year-on-year) Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

DecorativePaints 4 5 3 1 –

PerformanceCoatings 7 8 6 3 3

SpecialtyChemicals 5 1 2 (1) 1

Total 6 5 3 1 2

EBITDA


2011 2012 ∆% in€ millions 2011 2012 ∆%

61 47 (23) DecorativePaints 479 425 (11)

141 190 35 PerformanceCoatings 611 769 26

207 172 (17) SpecialtyChemicals 906 889 (2)

(57) (46) Otheractivities/eliminations (162) (182)

352 363 3 Total 1,834 1,901 4

addressesissuessuchasproductcomplexityreduction, procurement, manufacturing anddistribution excellence, and marginmanagement.Businessunitadaptationsandoperational professionalization havecontributed around 95 percent of the 2012benefits, while functional standardization isprimarilyanimportantenabler.

The cost of the program for 2012 equaled€292 million, booked under incidentals,includingcostsfortheadditionalrestructuring

measures inDecorativePaintsandexcluding€17millionforDecorativePaintsNorthAmerica.

Since the announcement of the program,around2,100peoplehaveleftthecompany,ofwhichapproximately360inDecorativePaintsNorthAmerica.


Incidental items• Weincurredhigherrestructuringcosts

mainlyinmaturemarkets,asweimplementtheperformanceimprovementprogram.Restructuringactivitiesareongoingacrossthebusinesses,andwesteppeduprestructuringintheEuropeanbusinessesinDecorativePaintsinQ4.Besidesthecostsoftheperformanceimprovementprogramof€292million,wehadanumberofwritedownsforanamountof€32million,bringingthetotalamountofrestructuringcoststo€324million.

• TheimpairmentamountinQ3wasadjustedtoexcludeDecorativePaintsNorthAmerica,whichisreportedasadiscontinuedoperation.

• InQ1,weincreasedaprovisionforanenvironmentalcaseinSweden.

• InQ4,weincurredalossof€36millionfromrecyclingthecumulativetranslationdifferencesinequitytothestatementofincomeduetothecompleteddivestmentofChemicalsPakistan.

EBIT in "other"Corporatecostsinthequarterwereinlinewiththepreviousyear.Forthefullyear,thesecostswere higher due to increased informationmanagement and integrated supply chaincosts as a consequence of functionalexcellenceinitiativesandone-offcosts.

Net financing expenses Netfinancingchargesfortheyeardecreasedby€69millionfrom€336millionto€267million.Significantvarianceswere:• Financingexpensesonnetdebtdecreased

by€63millionto€239million(2011:€302million)followingthebuy-backofbondsinDecember2011,whichhadaone-offimpactin2011of€67million.

• Interestonprovisionsdecreasedby€17millionto€29million(2011:€46million)duetohigherdiscountrates.

• Financingexpensesrelatedtopensionsincreasedby€8millionto€65million(2011:€57million)duetoalowerexpectedreturnonassets.

EBIT in other


2011 2012 in€ millions 2011 2012

(29) (31) Corporatecosts (98) (113)

(3) (1) Pensions (14) (4)

(9) (1) Insurances 1 (6)

(20) (16) Other (65) (71)

(61) (49) EBIT in “other” (176) (194)

Operating income to net income


2011 2012 in€ millions 2011 2012

107 7 Operating income 1,145 (1,244)

(141) (54) Netfinancingexpenses (336) (267)

– (1) Resultsfromassociatesandjointventures 24 13

(34) (48) Profit/(loss) before tax 833 (1,498)

25 29 Incometax (233) (172)

(9) (19) Profit/(loss) for the period from continuing operations

600 (1,670)

(52) (22) Profit/(loss)fortheperiodfromdiscontinuedoperations (59) (436)

(61) (41) Profit/(loss) for the period 541 (2,106)

(7) (18) Non-controllinginterests (64) (63)

(68) (59) Net income 477 (2,169)

• Otheritemsdecreasedby€5millionto€7million(2011:€12million),mainlyexplainedbylowerinterestondiscountedlong-termreceivables(€3million).

Tax Excluding the non-tax-deductible goodwillimpairmentchargeof€2,106million,theyear-to-date tax rate was 30 percent (2011:

27 percent). The tax rate was negativelyimpactedbyseveraladjustmentstopreviousyearsandbyothernon-taxableitems.TheQ4tax charge is impacted positively by severaladjustmentstopreviousyears.Thelosscarry-forwardrecognized in thebalancesheetanditsusageinthecomingyearshasadecreasingimpactonthecashtaxrateincomingyears.

Incidentals included in operating income


2011 2012 in€ millions 2011 2012

(54) (148) Restructuringcosts (129) (324)

– – Impairment – (2,106)

(33) (12) Resultsrelatedtomajorlegalandenvironmentalcases

(9) (36)

(11) (34) Resultsonacquisitionsanddivestments 10 (45)

7 (1) Otherincidentalresults 2 (9)

(91) (195) Incidentals included in operating income (126) (2,520)


+2% 0% 0%+1% +3%

02

-2

-4

46


Volume Acquisitions/divestments

Price/mix Exchange rates

Total

-2% +2% 0%+2% +2%

02

-2

-4

46




Total

Revenue increased2percent,mainlydue topositive price/mix and favorable currencies.Theeurocrisis and thegeneral slowdown inglobal markets continued to affect ourbusiness.Volumesweredown2percent,withEuropeandSouthEastAsiaexperiencingthemost significant declines. RestructuringactivitiescontinuedacrossEurope.EBITDAfortheyearwas11percent lowerthantheprioryear, reflecting weaker demand from ourEuropeanmarkets.

Q4sawsimilardevelopments to the full-year.Revenue grew 3 percent, driven by positivevolumes and favorable currencies. Volumeswere up 2 percent,mainly reflectingChina’sperformance.

EuropeRevenue was down 1 percent. All ourbusinesses were affected by the deepeningeconomiccrisisinEuropeandhaveexperiencedsubstantialvolumedecline,withtheSouthern

Europe(France,Spain,ItalyandGreece)beingthemostaffected.Inresponsetothedecliningvolumes and revenue, we carried outrestructuringactivitiesandvariousoperationalefficiency improvement programs throughouttheyear.However,theirbenefitswereoutpacedbytheweakerdemandintherelevanthousingmarkets. As a result, more restructuringactivitieswereundertakentowardstheendof2012.

• Full-yearrevenueup2percentdrivenbyfavorablecurrenciesandprice/mix

• EBITDA11percentbelowthepreviousyear•AsianrevenuegrowingduetostrongvolumedevelopmentinChina

•ChallengingmarketconditionscontinueinEuropeandLatinAmerica

• RestructuringactivitiesinEuropecontinue

Decorative Paints


61

158

90

Q4 11 Q1 12 Q2 12 Q3 12

130

47

Q4 12

Q4 11 Q1 12 Q2 120

200

400

600

800

1000

1200

965 974

Q3 12 Q4 12

1,1871,141

995

EBITDAIn€millions


Latin AmericaRevenue was up 2 percent on the back ofprice increases. Throughout the year, weexperiencedweakeningvolumes,mirroringthegeneralslowdownintheregion.Rawmaterialcostinflationadverselyaffectedourmargins.

Q4revenuewasdown3percent,mainlyduetoadversecurrencies.

AsiaRevenuewasup10percentdrivenbypositivevolume and currency effects. In China, wecontinued toexperiencedoubledigitvolumeandrevenuegrowth,drivenbythegrowth inthe project and professional channel. TheChina Coating Society awarded Dulux thenumber one interior emulsion brand. OurSouth East Asian business continued to beaffected by the weaker market conditions.Strongcostcontrolhashelpedtoprotectourprofitability.

Q4 revenue was up 12 percent, reflectingstrong performance inChina,where volumeand revenue continued to grow in doubledigits.

Key brands

Revenue


2011 2012 ∆% in€ millions 2011 2012 ∆%

535 544 2 DecorativePaintsEurope 2,658 2,640 (1)

180 174 (3) DecorativePaintsLatinAmerica 590 603 2

250 279 12 DecorativePaintsAsia 951 1,048 10

– (2) Other/intragroupeliminations 2 6

965 995 3 Total 4,201 4,297 2

Before incidentals

61 47 (23) EBITDA 479 425 (11)

6.3 4.7 EBITDAmargin(in%) 11.4 9.9

19 1 (95) EBIT 327 249 (24)

2.0 0.1 EBITmargin(in%) 7.8 5.8

MovingaverageROI(in%) 5.9 4.8

After incidentals

(30) (91) Operatingincome 235 (2,012)

63 92 Capitalexpenditures 155 206




-2%+3% +1%

+3% +5%68

-20

-4

24




Total

-1%

+5%+2%

+4% +10%

68

1012

-20

-4

24




Total

Performance Coatings• StrongyearforPerformanceCoatings;revenueup10percent;EBITDAup26percentto€769million(2011:€611million)

• Full-yearrevenueup10percentsupportedbymarginmanagement,acquisitionsandfavorablecurrencies;volumedeclinedby1percent

• Full-yearEBITDAmarginat13.5percent(2011:11.8percent)drivenbymarginmanagementandoperationalefficiency

• IntegrationofacquiredSchrammactivitiessupportingresults

Revenueincreased10percentcomparedwiththepreviousyear.Thestrongestgrowthcamefrom Industrial Coatings and Marine andProtective Coatings. Volume declined, withdifferences between individual businesses.Overallmarginsimprovedduetoacombinationof margin management activities and the

ongoingcostcontrol.Themajorrestructuringactivitieswereundertaken inmaturemarkets,where we experience lower activity levels.Integration activities relating to the Schrammacquisitioncontinued.

In Q4, revenue was up 5 percent over thepreviousyear,supportedbycurrenciesandtheacquisitionofSchramm.Marginmanagement

and operational efficiency improvementsresultedinanEBITDAmarginof13.6percent(2011:10.6percent).

Marine and Protective CoatingsRevenue was up 13 percent, supported byprice/mixandcurrencies.Therewasasmalldeclineinvolume.TheMarinenewconstructionslowdownwasoffsetbystronggrowthintheprotective segment. In Yacht, overall activityremainedinlinewith2011.

InQ4, revenuewas 5 percent ahead of theprevious year, supported by favorablecurrencies and price/mix initiatives. Activitylevels in Marine remained low, partiallycompensatedby theoilandgassegment inProtectiveCoatings.

Wood Finishes and AdhesivesRevenue grew 6 percent, supported bycurrencies andprice/mix.Demand remainedweak across most of the mature markets,although the US benefited from a modestrecovery of the housing market. Europesuffered the most from the volume declineduring2012,withcostcontrolmitigating theimpactofreducedactivitylevels.

In Q4, revenue was 1 percent above 2011,supportedby favorablecurrenciesandprice/mix. Cost control and margin managementinitiativescontinued.



EBITDAIn€millions

Revenue


2011 2012 ∆% in€ millions 2011 2012 ∆%

373 392 5 MarineandProtectiveCoatings 1,398 1,577 13

195 197 1 WoodFinishesandAdhesives 781 825 6

258 265 3 AutomotiveandAerospaceCoatings 1,030 1,051 2

235 245 4 PowderCoatings 940 997 6

273 305 12 IndustrialCoatings 1,049 1,283 22

(8) (10) Other/intragroupeliminations (28) (31)

1,326 1,394 5 Total 5,170 5,702 10

Before incidentals

141 190 35 EBITDA 611 769 26

10.6 13.6 EBITDAmargin(in%) 11.8 13.5

109 157 44 EBIT 495 638 29

8.2 11.3 EBITmargin(in%) 9.6 11.2


After incidentals

83 114 Operatingincome 458 542




141

Q4 11 Q1 12

164

Q2 12

213202

190

Q3 12 Q4 12

Q4 11 Q1 120

300

600

900

1200

1500

1,326

Q2 12

1,369

Q3 12 Q4 12

1,472 1,4671,394

Automotive and Aerospace Coatings Revenuefor2012was2percenthigherthanthe previous year, driven by currencies andprice/mix. Volumes were impacted by weakdemand in the vehicle refinishes market inEurope and North America. Restructuringactivities inmaturemarketshelpedtocontrolcosts.

InQ4, revenue grew 3 percent,with activityslowing down in all segments apart fromaerospace.

Powder CoatingsRevenuewas6percenthigher than in2011,supportedby favorablecurrenciesandprice/mix.Volumeswereadverselyimpactedbytheweakening of the economic environment. InEurope,volumeswerelowerthanthepreviousyearthroughouttheregion.However,excellentgrowth rateswere achieved inRussia,whilethe North American and Asian marketscontinuedtodevelopwell.

RevenueinQ4wasup4percent,mainlyasaresultofarchitecturalactivities.Furnitureanddomesticappliancescontinuedtosufferfromtheweakeconomicsituation.

Industrial CoatingsRevenueincreasedby22percent,mainlydueto the successful integration of Schramm/SSCP and further supported by favorablecurrenciesandprice/mix.CoilandPackagingcontinue to grow,with growth in Packagingcomingprimarily fromAsiaand forCoil fromemergingEurope.

InQ4,revenuegrewby12percent,mainlydueto a strong performance by the SpecialtyFinishesbusiness.ThemarketremainedsoftinEurope, inparticular forPackaging,whiletheAsianmarketswerestronginallbusinesses.

Key brands


-1% +1%+1%

+2% +3%

02

-2

46


-4Volume Acquisitions/

divestmentsPrice/mix Exchange

ratesTotal

-1% +1%+1%

+3% +4%

02

-2

46


-4Volume Acquisitions/

divestmentsPrice/mix Exchange

ratesTotal

Specialty Chemicals made a good start to2012,butdemandstarted toweaken in thesecondhalfoftheyear,particularlyinEurope.Demandwasalsomorevolatile.Besides thedirecteffectonourrevenuefromconstruction-related products (performance additives,polysulfides), in polymer catalysts andbleachingchemicals,theweakeningdemandalso resulted in more imbalance in supply/demand, particularly for ethylene amines inFunctionalChemicals.Nevertheless,SpecialtyChemicalsdeliveredarobustperformance intheyearonthebackofmarginmanagement,costcontrolmeasuresandstrongmarketandtechnology leadership positions. Surface

Chemistry and Pulp and PerformanceChemicals delivered strong results, whileIndustrial Chemicals repeated solidperformance.FunctionalChemicalswasbelowpreviousyearsduetothelaggingdemandandreducedmargins.

Revenue inQ4was3percenthigher,mainlydue to favorable currencies. However,performanceinthelastquarterwasunfavorablyimpactedbythegeneralslowdownindemand(especially in Functional Chemicals) andproduction-relatedissuesatourcustomers.

Functional ChemicalsThe business was faced with challengingeconomic and market conditions in 2012,whichseverelyimpactedprofitability.Revenuewas up 2 percent, mainly due to favorablecurrencies,withvolumesatpar.Marginswereimpacted by the continuing price erosion inmarkets for ethylene amines as a result ofovercapacity.Demandwas also impacted inmostothersegments,especiallyinthepolymerindustry and the construction-relatedsegments,notablytowardsthesecondhalfoftheyearandspecificallyinEurope.

Q4revenuewasonaparwith lastyear,withlowervolumesduemainlytoweakdemandinEurope.

Industrial Chemicals Full-year revenue was up 2 percent andvolumeswerestable.Allbusinessesturnedina solid performance, although the Energysegment continued to be impacted by highgas prices, causing spark spreads to beunfavorable.

Q4 revenue was up 4 percent, mainly as aresultofprice/mix,withvolumesonaparwithlast year. Volume was impacted during thequarterduetoproduction-relatedissuesatourcustomers.

Specialty Chemicals• Full-yearrevenueincreased4percent,primarilyduetofavorablecurrencies

• Demandweakenedinsomesegments,withvolumesdown1percentfortheyear

• Full-yearEBITDAdown2percentto€889million,duetounfavorablemarketconditionsinFunctionalChemicals

• IntegrationofBoxingOleochemicalsontrack•DivestmentofChemicalsPakistancompletedinQ4


Q4 11

207

255

Q1 12

235

Q2 12

227

172

Q3 12 Q4 12

Q4 11 Q1 120

300

600

900

1200

1500

1,285

Q2 12

1,399

Q3 12 Q4 12

1,431 1,3931,320


EBITDAIn€millions

Surface ChemistryItwasayearof solidprofitability forSurfaceChemistry, showing strong growth over lastyear.Revenuewasup15percent,mainlydueto the Boxing Oleochemicals acquisition inChina. All segments contributed to theimprovement,withsolidmarginmanagement,high capacity utilization and continued costcontrol.

Q4 revenue was up 4 percent, mainly as aresultoftheBoxingOleochemicalsacquisition.Volumes were lower than the previous year,withcustomersbeingcautious.

Pulp and Performance Chemicals Pulp and Performance Chemicals deliveredstronggrowthover2011.Revenuewasup3percent, mainly due to favorable currencies,withvolumesbeing lower than lastyear.Themarket in 2012 showed someweakening indemand, especially in bleaching chemicals,whichwasaffectedbythegeneraleconomicclimate and slower growth in China. Strongmargin management and cost reductionmeasures contributed to the improvedperformance.

Q4revenuewasupby7percent,mainlyasaresultoffavorablecurrencies,withflatvolumesin the quarter. The Eldorado investment inBrazilcameonstream,withthefirstchlorinedioxidevolumesbeingshipped.WecompletedthedivestmentofPermascand,anequipmentmanufacturer, and a small Paper ChemicalsactivityinGermany.

Chemicals PakistanThe business continued to be impacted bydifficult market conditions throughout 2012.The ongoing energy crisis subdued overalldemand in the downstream industry for theSoda Ash and Polyester activities. Thedivestment of Chemicals Pakistan wascompletedduringQ4,withthebusinessbeingacquiredbyYunusBrothersGroup.

Key brands

Revenue


2011 2012 ∆% in€ millions 2011 2012 ∆%

457 457 – FunctionalChemicals 1,917 1,963 2

285 296 4 IndustrialChemicals 1,165 1,188 2

220 229 4 SurfaceChemistry 945 1,085 15

276 295 7 PulpandPerformanceChemicals 1,116 1,153 3

81 72 (11) ChemicalsPakistan 330 287 (13)

(34) (29) Other/intragroupeliminations (138) (133)

1,285 1,320 3 Total 5,335 5,543 4

Before incidentals

207 172 (17) EBITDA 906 889 (2)

16.1 13.0 EBITDAmargin(in%) 17.0 16.0

131 93 (29) EBIT 625 583 (7)

10.2 7.0 EBITmargin(in%) 11.7 10.5


After incidentals

133 73 Operatingincome 622 500





Condensed financial statements

Consolidated statement of comprehensive income


2011 2012 in€ millions 2011 2012


Other comprehensive income

316 (122) Exchangedifferencesarisingontranslationofforeignoperations 55 8

(22) (1) Cashflowhedges (55) (7)

(7) 4 Taxrelatingtocomponentsofothercomprehensiveincome 9 5

287 (119) Other comprehensive income for the period (net of tax) 9 6

226 (160) Comprehensive income for the period 550 (2,100)

Comprehensive income attributable to

202 (163) Shareholdersofthecompany 486 (2,146)

24 3 Non-controllinginterests 64 46

226 (160) Comprehensive income for the period 550 (2,100)

Consolidated statement of income


2011 2012 in€ millions 2011 2012

Continuing operations

3,549 3,673 Revenue 14,604 15,390

(2,261) (2,359) Costofsales (9,035) (9,596)

1,288 1,314 Gross profit 5,569 5,794

– – Impairment – (2,106)

(750) (821) Sellingexpenses (2,943) (3,199)

(315) (359) Generalandadministrativeexpenses (1,142) (1,277)

(96) (100) Researchanddevelopmentexpenses (349) (387)

(20) (27) Otheroperatingincome/(expenses) 10 (69)

107 7 Operating income 1,145 (1,244)

(141) (54) Netfinancingexpenses (336) (267)

– (1) Resultsfromassociatesandjointventures 24 13

(34) (48) Profit/(loss) before tax 833 (1,498)

25 29 Incometax (233) (172)

(9) (19) Profit/(loss) for the period from continuing operations 600 (1,670)

Discontinued operations

(52) (22) Profit/(loss)fortheperiodfromdiscontinuedoperations (59) (436)


Attributable to

(68) (59) Shareholdersofthecompany 477 (2,169)

7 18 Non-controllinginterests 64 63



Shareholders’ equityShareholders’ equity as at year-end 2012decreasedto€6.9billion,mainlyduetotheneteffectof:• Netlossof€2,169million.• Dividendpaymentsof€215million.

Final dividendOurdividendpolicy is topayastable torisingdividend.Wewillproposea2012finaldividendof€1.12pershare,whichwouldmakea total2012dividendof€1.45(2011:€1.45)pershare.Therewillbeastockdividendoptionwithcashdividendasdefault.

Condensed consolidated balance sheet

in€ millions December 31, 2011 December 31, 2012

Assets

Non-current assets

Intangibleassets 7,392 4,454

Property,plantandequipment 3,705 3,739

Otherfinancialnon-currentassets 2,198 2,763

Total non-current assets 13,295 10,956

Current assets

Inventories 1,924 1,545

Tradeandotherreceivables 2,937 2,698

Cashandcashequivalents 1,635 1,752

Othercurrentassets 98 91

Assetsheldforsale – 921

Total current assets 6,594 7,007

Total assets 19,889 17,963

Equity and liabilities

Group equity 9,743 7,357

Non-current liabilities

Provisionsanddeferredtaxliabilities 2,284 2,159

Long-termborrowings 3,035 3,388

Total non-current liabilities 5,319 5,547

Current liabilities

Short-termborrowings 494 662

Tradeandotherpayables 3,369 3,242

Othershort-termliabilities 964 845

Liabilitiesheldforsale – 310

Total current liabilities 4,827 5,059

Total equity and liabilities 19,889 17,963

Changes in equity

in€ millionsSubscribedsharecapital

Additionalpaid-incapital

Cashflowhedgereserve

Cumulativetranslationres. Otherreserves

Shareholders’equity

Non-control-linginterests Groupequity

Balance at January 1, 2011 467 9 29 (43) 8,522 8,984 525 9,509

Profit/(loss)fortheperiod – – – – 477 477 64 541

Othercomprehensiveincome – – (38) 47 – 9 – 9

Comprehensive income for the period – – (38) 47 477 486 64 550

Dividendpaid 1 24 – – (329) (304) (58) (362)

Equity-settledtransactions – – – – 32 32 – 32

Issueofcommonshares 1 14 – – – 15 – 15

Acquisitionsanddivestments – – – – (1) (1) – (1)

Balance at December 31, 2011 469 47 (9) 4 8,701 9,212 531 9,743

Profit/(loss)fortheperiod – – – – (2,169) (2,169) 63 (2,106)

Othercomprehensiveincome – – (8) 31 – 23 (17) 6

Comprehensive income for the period – – (8) 31 (2,169) (2,146) 46 (2,100)

Dividendpaid 7 121 – – (342) (214) (42) (256)

Equity-settledtransactions – – – – 43 43 – 43

Issueofcommonshares 2 6 – – – 8 – 8

Acquisitionsanddivestments – – – – (11) (11) (70) (81)

Balance at December 31, 2012 478 174 (17) 35 6,222 6,892 465 7,357


Operating working capitalIn % of revenue

Q4 11

13.2

Q1 12

15.1

Q2 12

14.2 13.611.2

Q3 12 Q4 12

Invested capital Invested capital at year-end 2012 totaled€11.0billion,€1.6billionlowerthanatyear-end2011. Invested capitalwas impacted by theneteffectof:• Adecreaseof€2.1billionduetoa

non-cashimpairmentchargeforDecorativePaintsassets

• Anincreaseof€0.6billionoflong-termreceivablesrelatedtoincreasesinpensionfundsinanassetposition

• Increasedcapitalexpenditures,whichcontinuedonpreviouslyannouncedprojects,suchasthetwopulpmillsinBrazil,thestartofthenewDecorativePaintsplantatFellinginUKandinChina;totalcapitalexpendituresreportedinQ4werehigherthananticipatedduetophasingofprojects

• Andecreaseofoperatingworkingcapitalof€0.2billionmainlyduetoimprovementsincapitalmanagement.Expressedasapercentageofrevenue,operatingworkingcapitalwas11.2percent(year-end2011:13.2percent)

• Adecreaseof€0.2billionduetothedivestmentofChemicalsPakistan

• Anincreaseof€0.1billionfromtheBoxingOleochemicalsacquisition.

PensionsThefundedstatusofthepensionplansatyear-end2012wasestimatedtobeadeficitof€1.1billion(year-end2011:€0.5billion;Q32012:€0.9billion).

Themovementcomparedwithyear-end2011isprimarilydueto:• Top-uppaymentsof€355millioninto

certainUKandUSdefinedbenefitpensionplans

• Apaymentfromacontingentassetstructureof€239millionintotheUKICIPensionFund

• PlanassetreturnsaheadexpectationOffsetby:• Lowerdiscountratessignificantly

increasingthepensionobligation.

TheamendedIAS19onpensionshasbecomeeffectiveasofJanuary1,2013.Implementationof thisamendmentwill result in includingthepensiondeficitinothercomprehensiveincomeinshareholders’equityasof2013.Theimpactisdisclosed inour2012financialstatements,fromwhichthepensionnoteisissuedtogetherwiththisreport.

Invested capital

in€ millions December 31, 2011 December 31, 2012

Tradereceivables 2,213 2,172

Inventories 1,716 1,545

Tradepayables (2,038) (2,058)

Operating working capital in Business Areas 1,891 1,659

Otherworkingcapitalitems (905) (958)

Non-currentassets 13,295 10,956

Lessinvestmentsinassociatesandjointventures (198) (185)

Deferredtaxliabilities (567) (442)

Discontinuedoperations (903) –

Invested capital 12,613 11,030

WorkforceAtyear-end2012,weemployed50,610staffincontinuing operations (year-end 2011: 52,020employees).Thenetdecreasewasdueto:• Adecreaseof1,450employeesdueto

ongoingrestructuring• Anetdecreaseof540employeesdueto

acquisitionsanddivestments,mainlyfromtheBoxingacquisition(620employees)andthedivestmentofChemicalsPakistan(1,100employees)

• Anincreaseof580employeesmainlyduetonewhiresinhighgrowthmarkets.

Operating working capital

in€ millions,%ofrevenue December 31, 2011 December 31, 2012

DecorativePaints 434 11.2 353 8.9

PerformanceCoatings 772 14.6 742 13.3

SpecialtyChemicals 685 13.3 564 10.7

Total 1,891 13.2 1,659 11.2


Cash flows and net debtOperatingactivitiesin2012resultedinacashinflowof€737million(2011:€396million).Thechangeismainlyduetoaneteffectof:• Highercashinflowfromworkingcapital,

whichwasmainlyrealizedinQ4.Partlyoffsetby:• Higherpaymentsrelatedtoprovisions

(mainlyinrelationtopensions).

Netdebt increased in2012to€2,298million(2011: €1,895 million) as higher cash flowsfromoperatingactivitiesweremorethanoffsetbyhighercapitalexpenditures.

Condensed consolidated statement of cash flows


2011 2012 in€ millions 2011 2012

1,453 1,307 Cash and cash equivalents at beginning of period 2,683 1,335

Adjustments to reconcile earnings to cash generated from operating activities

(9) (19) Profit/(loss)fortheperiodfromcontinuingoperations 600 (1,670)

160 177 Amortization,depreciationandimpairments 577 2,795

144 469 Changesinworkingcapital (331) 251

(49) 24 Changesinprovisions (484) (688)

10 (21) Otherchanges 34 49

256 630 Net cash from operating activities 396 737

(242) (330) Capitalexpenditures (658) (826)

(169) 132 Acquisitionsanddivestmentsnetofcashacquired (156) 122

(9) (40) Otherchanges 2 (22)

(420) (238) Net cash from investing activities (812) (726)

80 (12) Changesfromborrowings (470) 570

(81) (67) Dividends (362) (256)

– 4 Otherchanges 7 (43)

(1) (75) Net cash from financing activities (825) 271

(165) 317 Net cash used for continuing operations (1,241) 282

9 (38) Cashflowsfromdiscontinuedoperations (96) (53)

(156) 279 Net change in cash and cash equivalents of total operations (1,337) 229

38 (28) Effectofexchangeratechangesoncashandcashequivalents (11) (6)

1,335 1,558 Cash and cash equivalents at December 31 1,335 1,558

Outlook and strategy updateWe expect the economic environment willremain challenging and there to be nofundamental changes in the trends thatwe have seen recently in our businesses.We will continue to focus on performanceimprovements and operational efficienciesin order to benefit from our strong portfolioof businesses with many leading marketpositionsandexposuretogrowthmarkets.

On February 20, 2013, we will present astrategyupdate.Formoreinformation,pleaseconsultourwebsite.

Amsterdam, February 19, 2013Board of Management


Quarterly statistics

2011 2012

Q1 Q2 Q3 Q4 year in€ millions Q1 Q2 Q3 Q4 year-to-date

Revenue

918 1,165 1,153 965 4,201 DecorativePaints 974 1,187 1,141 995 4,297

1,237 1,312 1,295 1,326 5,170 PerformanceCoatings 1,369 1,472 1,467 1,394 5,702

1,351 1,350 1,349 1,285 5,335 SpecialtyChemicals 1,399 1,431 1,393 1,320 5,543

(22) (25) (28) (27) (102) Otheractivities/eliminations (35) (46) (35) (36) (152)

3,484 3,802 3,769 3,549 14,604 Total 3,707 4,044 3,966 3,673 15,390

EBITDA

79 184 155 61 479 DecorativePaints 90 158 130 47 425

143 170 157 141 611 PerformanceCoatings 164 213 202 190 769

241 220 238 207 906 SpecialtyChemicals 235 255 227 172 889


426 541 515 352 1,834 Total 438 577 523 363 1,901

12.2 14.2 13.7 9.9 12.6 EBITDA margin (in %) 11.8 14.3 13.2 9.9 12.4

Depreciation

(22) (23) (22) (24) (91) DecorativePaints (27) (26) (26) (27) (106)

(21) (21) (21) (23) (86) PerformanceCoatings (23) (25) (23) (24) (95)

(55) (57) (56) (60) (228) SpecialtyChemicals (61) (63) (62) (65) (251)


(101) (102) (104) (112) (419) Total (114) (115) (115) (119) (463)

Amortization

(15) (14) (14) (18) (61) DecorativePaints (16) (17) (18) (19) (70)

(7) (7) (7) (9) (30) PerformanceCoatings (9) (8) (10) (9) (36)

(12) (12) (13) (16) (53) SpecialtyChemicals (13) (15) (13) (14) (55)

– – (1) 1 – Otheractivities/eliminations (1) – – – (1)

(34) (33) (35) (42) (144) Total (39) (40) (41) (42) (162)

EBIT

42 147 119 19 327 DecorativePaints 47 115 86 1 249




291 406 376 198 1,271 Total 285 422 367 202 1,276

8.4 10.7 10.0 5.6 8.7 EBIT margin (in %) 7.7 10.4 9.3 5.5 8.3

Operating income

41 142 82 (30) 235 DecorativePaints 25 112 (2,058) (91) (2,012)




280 432 326 107 1,145 Total 233 378 (1,862) 7 (1,244)

8.0 11.4 8.6 3.0 7.8 ROS% before impairment 6.3 9.3 6.2 0.2 5.6



2011 2012

Q1 Q2 Q3 Q4 year in€ millions Q1 Q2 Q3 Q4 year-to-date

Incidentals per Business Area

(1) (5) (37) (49) (92) DecorativePaints (22) (3) (2,144) (92) (2,261)

(9) 13 (15) (26) (37) PerformanceCoatings (5) (9) (39) (43) (96)

(1) (4) – 2 (3) SpecialtyChemicals (21) (23) (19) (20) (83)

– 22 2 (18) 6 Otheractivities/eliminations (4) (9) (27) (40) (80)

(11) 26 (50) (91) (126) Total (52) (44) (2,229) (195) (2,520)

Incidentals included in operating income

(8) (20) (47) (54) (129) Restructuringcosts (33) (43) (100) (148) (324)

– – – – – Impairment – – (2,106) – (2,106)

1 21 2 (33) (9) Resultsrelatedtomajorlegalandenvironmentalcases

(22) 3 (5) (12) (36)

– 26 (5) (11) 10 Resultsonacquisitionsanddivest-ments

– (5) (6) (34) (45)

(4) (1) – 7 2 Otherincidentalresults 3 1 (12) (1) (9)

(11) 26 (50) (91) (126) Total (52) (44) (2,229) (195) (2,520)

Incidentals per line item

(4) (5) (23) (18) (50) Costofsales (34) (11) (20) (53) (118)

– – – – – Impairment – – (2,106) – (2,106)

(3) (9) (20) (32) (64) Sellingexpenses (6) (21) (51) (57) (135)

(1) (4) (1) (18) (24) Generalandadministrativeexpenses (10) (10) (21) (52) (93)

– – (1) (8) (9) Researchanddevelopmentexpenses (1) (2) (5) (4) (12)

(3) 44 (5) (15) 21 Otheroperatingincome/(expenses) (1) – (26) (29) (56)

(11) 26 (50) (91) (126) Total (52) (44) (2,229) (195) (2,520)

Reconciliation net financing expense

14 17 14 12 57 Financingincome 15 17 16 11 59

(61) (59) (57) (125) (302) Financingexpenses (57) (65) (58) (59) (239)

(47) (42) (43) (113) (245) Net interest on net debt (42) (48) (42) (48) (180)

Other interest movements

(15) (13) (14) (15) (57) Financingexpensesrelatedtopensions

(16) (16) (16) (17) (65)

(5) (12) (13) (16) (46) Interestonprovisions (3) (18) (9) 1 (29)

5 3 1 3 12 Otheritems (4) – 1 10 7

(15) (22) (26) (28) (91) Net other financing charges (23) (34) (24) (6) (87)

(62) (64) (69) (141) (336) Net financing expenses (65) (82) (66) (54) (267)

Quarterly net income analysis

7 8 9 – 24 Resultsfromassociatesandjointventures

4 5 5 (1) 13

(15) (22) (20) (7) (64) Profitattributabletonon-controllinginterests

(14) (22) (9) (18) (63)

225 376 266 (34) 833 Profitbeforetax 172 301 (1,923) (48) (1,498)

(75) (102) (81) 25 (233) Incometax (61) (82) (58) 29 (172)

150 274 185 (9) 600 Profitfortheperiodfromcontinuingoperations

111 219 (1,981) (19) (1,670)

33 27 30 74 28 Effectivetaxrate(in%) 35 27 (3) 60 (11)



2011 2012

Q1 Q2 Q3 Q4 year Q1 Q2 Q3 Q4 year-to-date

Earnings per share from continuing operations (in €)

0.58 1.08 0.71 (0.07) 2.29 Basic 0.41 0.83 (8.35) (0.16) (7.30)

0.57 1.07 0.70 (0.07) 2.27 Diluted 0.41 0.82 (8.35) (0.16) (7.30)

Earnings per share from discontinued operations (in €)

(0.03) 0.07 (0.07) (0.22) (0.25) Basic (0.11) 0.02 (1.65) (0.09) (1.84)

(0.03) 0.07 (0.07) (0.22) (0.25) Diluted (0.11) 0.02 (1.65) (0.09) (1.84)

Earnings per share from total operations (in €)

0.55 1.15 0.64 (0.29) 2.04 Basic 0.30 0.85 (10.00) (0.25) (9.14)

0.54 1.14 0.63 (0.29) 2.02 Diluted 0.30 0.84 (10.00) (0.25) (9.14)

Number of shares (in millions)

233.6 233.9 234.0 234.3 233.9 Weightedaveragenumberofshares 235.1 236.9 238.2 238.6 237.2

233.7 234.0 234.0 234.7 234.7 Numberofsharesatendofquarter 235.6 238.2 238.2 239.0 239.0

Adjusted earnings (in € millions)

225 376 266 (34) 833 Profitbeforetaxfromcontinuingoperations

172 301 (1,923) (48) (1,498)

11 (26) 50 91 126 Incidentalsreportedinoperatingincome

52 44 2,229 195 2,520

34 33 35 42 144 Amortizationofintangibleassets 39 40 41 42 162

(89) (108) (105) (13) (315) Adjustedincometax (87) (104) (104) (52) (347)

(15) (22) (20) (7) (64) Non-controllinginterests (14) (22) (9) (18) (63)

166 253 226 79 724 Adjusted net income for continuing operations

162 259 234 119 774

0.71 1.08 0.97 0.34 3.10 Adjusted earnings per share (in €) 0.69 1.09 0.98 0.50 3.26


Mature markets compriseofWesternEurope,theUS,Canada,JapanandOceania.

Moving average ROI iscalculatedasEBITofthe last twelve months divided by averageinvestedcapital.

Net debt isdefinedas long-termborrowingsplus short-term borrowings less cash andcashequivalents.

Operating income isdefined inaccordancewith IFRS and includes the relevantincidentalresults.

Operating working capitalisdefinedasthesumofinventories,tradereceivablesandtradepayables in the Business Areas. Whenexpressedasaratio,operatingworkingcapitalis measured against four times last quarterrevenue.

ROS% is operating incomeas percentageofrevenue.

Safe Harbor StatementThisreportcontainsstatementswhichaddresssuch key issues as AkzoNobel’s growthstrategy, future financial results, marketpositions, product development, products inthe pipeline and product approvals. Suchstatements should be carefully considered,anditshouldbeunderstoodthatmanyfactorscouldcauseforecastandactualresultstodifferfromthesestatements.Thesefactorsinclude,but are not limited to, price fluctuations,currency fluctuations, developments in rawmaterial and personnel costs, pensions,physicalandenvironmentalrisks,legalissues,and legislative, fiscal, and other regulatorymeasures. Stated competitive positions arebasedonmanagementestimatessupportedbyinformationprovidedbyspecializedexternalagencies. For a more comprehensivediscussion of the risk factors affecting ourbusiness,pleaseseeourlatestAnnualReport.

Brands and trademarksInthisreport,referenceismadetobrandsandtrademarks owned by, or licensed to,AkzoNobel. Unauthorized use of these isstrictlyprohibited.

Accounting policies Thefull-year2012financialfiguresofAkzoNobelincludedintheprimarystatementsinthisreportarederivedfromtheFinancialstatements2012.TheseFinancialstatementshavebeenauthorizedforissue.TheFinancialstatementshavenotyetbeen published by law and still have to beadoptedbythegeneralmeetingofshareholders.In accordancewith section2:393BW,KPMGAccountants N.V. has issued an unqualifiedauditor'sopinionontheseFinancialstatements,whichwillbepublishedonFebruary27,2013.Allquarterlyfiguresareunaudited.Comparedwiththe 2011 Financial statements the majoraccountingprinciplesareunchanged.

As from 2013, the amended IAS 19 onpensionswillbecomeeffectiveandtheimpactwill be disclosed in our 2012 Financialstatements.Implementationofthisamendmentwillresultinrecognizingthefullpensionliabilityandthepensiondeficit,asdisclosedonpage15,willberecognizedinothercomprehensiveincomeinshareholders’equity.

SeasonalityRevenueandresults inDecorativePaintsareimpacted by seasonal influences. Revenueandprofitabilitytendtobehigherinthesecondandthirdquarteroftheyearasweathercondi-tionsdeterminewhetherpaintsandcoatingscan be applied. In Performance Coatings,revenue and profitability vary with buildingpatterns from original equipment manufac-turers. InSpecialtyChemicals, theFunctionalChemicals and the Surface Chemistrybusinesses experience seasonal influences.Revenue and profitability are affected bydevelopments in the agricultural seasonandtendtobehigherinthefirsthalfoftheyear.

The ‘‘other” categoryInthecategory“other”wereportactivitieswhicharenotallocatedtoaparticularbusinessarea.Corporatecostsaretheunallocatedcostsofourheadofficeandsharedservicescenter in theNetherlands.Pensionsreflectspensioncostsaftertheeliminationofinterestcost(reportedasfinancingexpenses).

Insurances are the results from our captiveinsurancecompanies.Otherincludesthecostof share-based compensation and companyprojects, the results of treasury and legacyoperationsaswell as theunallocatedcostofsomecountryorganizations.

GlossaryAdjusted earnings per share are the basicearningspersharefromcontinuingoperationsexcluding incidentals in operating income,amortization of intangible assets and tax ontheseadjustments.

Comprehensive income is the change inequity during a period resulting fromtransactionsandothereventsotherthanthosechanges resulting from transactions withshareholdersintheircapacityasshareholders.

EBIT isoperatingincomebeforeincidentals.

EBIT marginisEBITas percentageofrevenue.

EBITDA is EBIT before depreciation andamortization and refers to EBITDA beforeincidentals.

EBITDA margin isEBITDAas percentageofrevenue.

Emerging Europe: Central and EasternEurope (excludingAustria),BalticStatesandTurkey.

Incidentalsarespecialchargesandbenefits,results on acquisitions and divestments,restructuring and impairment charges, andchargesrelatedtomajorlegal,anti-trust,andenvironmentalcases.EBITDAandEBITbeforeincidentalsarekey figuresweuse toassessourperformance,asthesefiguresbetterreflectthe underlying trends in the results of theactivities.

Invested capital is total assets (excludingcash and cash equivalents, investments inassociates, assetsheld for sale) lesscurrentincometaxpayable,deferredtaxliabilitiesandtradeandotherpayables.

Notes to the condensed financial statements


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1_18

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www.akzonobel.com

AkzoNobelisaleadingglobalpaintsandcoatingscompanyandamajorproducerofspecialtychemicals.Wesupplyindustriesandconsumersworldwidewithinnovativeproductsandarepassionateaboutdevelopingsustainableanswersforourcustomers.OurportfolioincludeswellknownbrandssuchasDulux,Sikkens,InternationalandEka.HeadquarteredinAmsterdam,theNetherlands,weareconsistentlyrankedasoneoftheleadersintheareaofsustainability.Withoperationsinmorethan80countries,our55,000peoplearoundtheworldarecommittedtoexcellenceanddeliveringTomorrow’sAnswersToday™.©2013AkzoNobelN.V.Allrightsreserved.“Tomorrow’sAnswersToday”isatrademarkofAkzoNobelN.V.

Akzo Nobel N.V.Strawinskylaan2555P.O.Box757301070ASAmsterdam,theNetherlandsTel:+31205027555Fax:+31205027666Internet:www.akzonobel.com

Formoreinformation:TheexplanatorysheetsusedduringthepressconferencecanbeviewedonAkzoNobel’scorporatewebsitewww.akzonobel.com

AkzoNobelCorporateCommunicationsTel:+31205027833Fax:+31205027604E-mail:[email protected]

AkzoNobelInvestorRelationsTel:+31205027854Fax:+31205027605E-mail:[email protected]

Financial calendar

Reportforthe1stquarter2013 April18,2013AnnualGeneralMeeting April26,2013Ex-dividenddateof2012finaldividend April30,2013Recorddateof2012finaldividend May3,2013Electionperiodcashorstockfinaldividend May6,2013-

May23,2013Determinationofexchangeratio May24,2013Paymentdateofcashdividendanddelivery May29,2013ofnewsharesReportforthe2ndquarter2013 July18,2013

report for the year 2012 and the 4th...

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