AkzoNobel India- building the future.

Mumbai March 7, 2013

Welcome to AkzoNobel in India

Mohali Plant Hyderabad Plant

Corporate Office. Gurgaon

Thane Plant

Mahad Plant Bangalore Plant

Current AkzoNobel footprint in India

1,633 employees 5 plants 14 offices 75 warehouses 8,500 dealers 2 World Class Research Centres- Thane & Blore
Mohali : Decorative Paints, A&A Coatings

Gurgaon One AN Office

Mumbai : Functional Chemicals, Surface Chemistry Thane : Decorative Paints Hyderabad : Decorative Paints, A&A Coatings

Mahad: Polymer Chemicals

Hoskote : MPC Coating, Powder Coatings Industrial Finishes, Packaging Coatings, A&A Coatings

AkzoNobel in India post mergera portfolio to reckon with..

Coil Coatings 4% Deco Paints
Coatings

Marine Coatings

Powder Coatings 96%

Others (incl Specialty Chemicals)

Automotive Coatings Powder Coatings

Protective Coatings
Automotive Coatings

Current Shareholding Pattern (Feb 2013)

FII 2% Others 8%

Bodies Corporate 6%

Insurance Companies 7%
Mutual Funds 4%

AkzoNobel Group 73%

Worlds largest Coatings player

Indian Coatings Market and Consumer Trends

Coatings market anticipated blip in growth story

Market growth drivers
Rs. Crs
70,000 60,000 63,000

Inherent growth in the construction industry

Demographic changes Greater prosperity Infrastructure investment

CAGR 14%
50,000 40,000

20%
30,000 20,000 10,000 2010 2011 16,700 20,000

14%

10-12%?
23,000

33,000

25,000

Shift to mid and premium tier as consumers trade up

GDP/capita to increase 3.5x by 2020 touching same levels as Brazil today Faster internal repaint cycles expected

2012

2013

2015

2020

Macro Trends for Coatings Industry

How global megatrends affect our industry

Evolving the sustainability of living spaces

New living spaces globally will increasingly become carbon zero with sustainability built into their DNA.

ANIs WeatherShield SunReflect reduces temperatures of external surfaces by almost 5 degree Celsius & result in energy savings by almost 10%

Rapidly Advancing Technologies

Nano technology, Memory Polymers stretching the possibilities of what coatings can do Mono functional to Multi functional RM

Structural shift to water-based coatings

Changing Retail Environment

Experiential Inspirational Targeted Use of augmented reality

Decorator Centers empowering consumers on decoration decisions

This is an exciting industry

Colour
Growth Innovation Collaboration Room for most players to grow

AkzoNobel India Lines of Businesses

- Coatings

- Specialty Chemicals

Decorative Paints

Products Range

3 Manufacturing Sites

63 Warehouses

Servicing 8,000+ Retailers

Decorative Industry doubling in 5 years

Market Growth
50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000
In INR cr 5,000 14.5 10.0 11.8 12.0

Drivers
46,000

CAGR 15%
16,000 18,000

24,000

11,500

14,000

Per Capita Consumption

2010 2011 2012 2013 2015 2020

1.3
India

2.8
SE Asia

4.0

4.2

5.0

Market anticipated to bounce back in late 2013, early 2014 due to Softening of input cost Increasing sophistication of retail environment

China

East Europe

Middle East

Central Australia Japan North Europe America

Demand driven by urbanization and revival of realty industry Shift towards higher margin water-based products and premium emulsions

AkzoNobel India: Premium portfolio

Performance Coatings
Our Businesses

Industrial Manufacturing Sites at Bangalore and Mohali

Automotive Coatings Powder Coatings

Our Brands

International Research Center at Bangalore

Protective Coatings

Automotive Outlook in India

Market Growth

Drivers
Technology shift from 1K to 2K and from solvent to water-base One of the fastest growing automobile market emerging auto hub Emergence of MSO (Multi shop operators) chains e.g My TVS, Carz, Bosch.

4,500 4,000 3,500 3,000 2,500 2,000 1,500

1100 1200 1300 1500 3900

CAGR 12%
1800

1,000
In INR cr 500

0
2010 2011 2012 2013 2015 2020

AkzoNobel India: End-to-end coatings solution for the car refinish sector

Powder Coatings Outlook in India

Market Growth
3,000 2,500 2,000 1,500 1,000
600 2800

Drivers
Conversion from Liquid to powder Investment by Global companies Expanded capacity for autobody, commercial and monumental constructions
DA 12%
Auto 11%

CAGR 16%
1000 700 800

1400
Func 10%
Furniture 6% Arch 3%

500
In INR cr

0
2010 2011 2012 2013 2015 2020

GI 16%

IT 3% GTC 39%

AkzoNobel India: Eco friendly technology

Coil Coatings Outlook in India

Market Growth
1200 1000 800

Drivers
Infrastructure investment will lead mid tier segment to grow at CAGR 12% 20 Coil Lines to grow to 25 lines by 2015

960 700

CAGR 12%
600

525
290 325 390
Building 7%

400
200 0

Domestic Appliances 8%

2010

2011

2012

2013

2015

2020

Roofing 85%

AkzoNobel India: Global track record of product range

Protective Coatings Outlook in India

Market Growth
9000

Drivers
7800

8000
7000 6000 5000 4000 3000 2000 1000 0
2010 2011 2012 2013 2015

CAGR 16%
3300 1800 2000 2300 2400

Planned power capacity of 15-20 Gigawatt p.a. Infrastructure investment Investments in high growing segments lead to OEM growth that supply equipment

Mkt Potential - PC
2020
27%

10% 19% 13%

19%
infra Power O&G OEM Mining & Oth SME

12%

AkzoNobel India: Key coatings supplier for wind sector/ thermal projects

Specialty Chemicals

Surface Chemistry

Manufacturing Site at Mahad Organic Peroxides (HPOP) Metal Alkyl (HPMA) Sale XTP & HPOP Products

Functional Chemistry

Specialty Chemicals Outlook in India

Market Growth
9000 8000 7000 6000 5000 4000 3000 2000 1000 0

Drivers
8400

Market size for 3 active BUs is expected to grow to around INR 8,400 cr by 2020

CAGR 12%
4600
2900 3200

All end user segment growth projected ~12%

3400

2700

Market Segments

2010

2011

2012

2013

2015

2020

Fert 11%

Soap s& Det 8%

Petroche m 17% Polymers 13%

Syn fibres Agrochem 8% 2% Speciality 18% APIs 8%

Inorg 10%

Org 5%

AkzoNobel India: Diverse Portfolio

Leading market positions delivering leading performance

Comprehensive coatings portfolio Strong brands, both in B2B and B2C segments Good long-term growth potential Technology & Innovations flowing through global Business Units Adequate capacities to support growth Excellent customer relationships

Key Financial Parameters

Margins reflecting Industry trends

YTD Q3 2011-12 YTD Q3 2012-13 1,655
Gross Margins 55% 45% 1,009
48% 41% 49% 42% 47% 40%

43% 39%

Net Revenue (INR Crores)

35% 25% FY09 116 90 FY10 FY11

FY12

Akzo Nobel

Industry Average

EBIT (INR Crores)

Degree of Operating Leverage 7 6 5 156 123

4.2 6.4

4
3 2 1 0 Akzo Nobel Industry
Dec 2012

PAT (INR Crores)

The results for PY do not include numbers of merging companies and are not comparable

Robust Financial parameters

ROCE (as at Dec 31, 2012)

28%

Cash Conversion Cycle (FY12)

18%

87

98

10

21
ROCE - Business ROCE - Reported Debtors Days Inventory Days Supplier Days Cash Conversion Cycle

Source: Company annual reports, analyst reports

Consistent growth in shareholder value

Share Price Movement (INR)

7000 6000 5000 4000 3000 2000 1000 0
May-09 May-10 May-11 May-12 Mar-13 440 595

Nifty
5,560 5,086 4,530
856

AN India
5,914
4,924
876

1,200 1,000
990

800 600 400

200
16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 -

Shareholders' Funds (INR million) & Dividend (INR)

18 20 25 20 14,410 15 10 5 2007-08 2008-09 2009-10 Year 2010-11 2011-12

16 8 7,630 9,711

16

Shareholders' Funds

9,921

10,916

Building the growth momentum

Our 5 year aspiration

Euro 1 Billion

# 1 in Auto Coatings & Functional Chem

# 2 in Deco and Protective Coatings

Leader in Sustainability

Employer of Choice

Customer focused solutions

Opportunities for Scale Benefits

Merger has enabled customer focus and a more responsive organisation Opportunity to invest ahead of market

Unified face to customers

Comfortable cash position

Synergized centres of excellence Finance, HR , SCM

Provided scale to compete efficiently

Going forwardour medium-term priorities

AkzoNobel India Key Priorities

1. Care for the customer

1. Customer focused solutions

2.of Merger complexity 2. Reduction productadvantage and pro cess

operating efficiency

3. Cash and return 3. Focus on cash and return on investment on investment

4. Embedded safety and sustainability 4. Embedded safety

and sustainability
5. Diverse and inclusive talent development

5. Diversity and inclusive talent development

Customer focused solutions create competitive advantage

Organic growth Focus on Construction & Transportation segments

Mid-market new product launches

True sales force effectiveness management Value sales and margin management

1. Customer focused solutions

One - Stop Solution

Marine & Protective Coatings

Wood Finishes and Adhesives

Decorative Coatings

Powder Coatings

Industrial Coatings

Automotive Coatings

New Build Projects Maintenance, Renovation and Repair Building Products and Components

Automotive OEM, Parts and Assembly Automotive Repair

One AkzoNobel operations leverage

Intense cooperation between multi business unit sales, RD&I, operations and procurement Combined warehousing and logistics Multi site manufacturing flexibility Platform for new business launches

2. Merger advantage operating efficiencies

Creating a Platform for New Businesses

Packaging Coatings & Wood Finishes & Adhesives Leveraged One AN footprint to be closer to customer Supported by Excellence Centres-Finance, HR, Supply Chain, Legal Shared production sites (Packaging Coatings at Thane, Wood Finishes at Mohali)

Supported by Purchase and RD&I

Site & Engineering by Deco

RD&I helps localize portfolio Import Substitution Local Manufacturing New launches Low Cost / Rapid Market Entry Supply Chain Leverage
Customer/ Channel Contacts by Deco

Research, Development & Innovation

Regulatory affairs like MSDS and labels locally for Indian market Lead in color for Indian customers Deco Color lab for Asia Develop sustainable products for Indias growing mid market

Local raw materials and manufacturing for speed and cost

Leverage on global strengths ECGs, CoPs, BU labs

Strengthen the technical skills in Chemical for providing better services locally

Leverage color expertise in A&AC to other BUs

Integrate technical skills in performance coatings and deco to develop mid segment products

Set-up RD&I organization to work on focused areas (Transport, Construction, Color)

Making it happen | RD&I 39

Generate improved returns

Value creation from formulations and indigenization Cash consideration in decision making Capital expenditure and cost management One cash management, working capital improvement

3. Cash and return on investment

Safety and Sustainability

Behavior-based and process safety Reduce carbon foot-print Sustainable business

4. Embedded safety and sustainability

Renewables (raw materials and energy)

Pursue Sustainability opportunity collectively

Highlights: Sustained Energy Conservation efforts by plants Wash Water recycling system in factories Energy efficient systems implemented in the new plants

Future Plans Rainwater Harvesting Non conventional energy sources

Embed safety and sustainability in everything we do

Talent development

5. Diverse and inclusive talent development

Active drive for management to be a reflection of our geographical presence and gender participation Continuous learning and development

Employee engagement
Employer of choice

AkzoNobel India Board Ensuring Strong Corporate Governance

Nihal Kaviratne CBE Chairman

R Gopalakrishnan Non Executive Director

Renu S Karnad Non Executive Director

Dr Sanjiv Misra Non Executive Director

Arvind Uppal Non Executive Director

Amit Jain Managing Director

Partha Basu Finance

Graeme Armstrong Non Executive Director

Sucheta Dalal Alternate Director

We have everything we need to make it happen

Our people Our brands Our products Our market positions Sustainability

Disclaimer: Some of the statements in this presentation, describing the Company's objectives and expectations expressed in good faith, may constitute 'forward looking statements' within the meaning of applicable laws and regulations. Actual results might differ materially from those, in the event of changes in market conditions.

46

Thank you!