Winning together: 15 by 20 Investor update Q2 2018

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Winning together: 15 by 20 Investor Update Q2 2019 July 24, 2019

Contents Strategy: Winning Together

Commercial: Passion for paint

Operations: Precise processes

Financial: Powerful performance

Investor update Q1 2019

2

Strategy: Winning Together

Winning Together | March 2018

3

A focused Paints and Coatings company

€9.3 bn €1.0 bn €0.8 bn 10.6% 12.6% 34,500

North America

Mature Europe

Emerging Europe

12%

34%

9%

Asia Pacific

revenue

31%

EBITDA EBIT ROS Other regions

ROI employees

South America

5%

9%

All figures are based on year-end 2018, excluding unallocated corporate center costs and invested capital

Revenue by destination 4

Top 3 player with leading positions in large and attractive markets Global paints and coatings by market sector ~€110 billion, 2017 Decorative paints Powder coatings

Protective coatings Wood finishes Vehicle refinish Specialty / plastics Marine coatings Coil coatings Packaging coatings

General Industrial and Other; 14%

Global paints and coatings market ~€110 bn

North America; 10%

Automotive OEM (metal); 7%

AkzoNobel active markets ~€70 bn

2% 3% 3% 4%

30%

6% 7%

7%

8%

AkzoNobel market share ~€10 bn

Automotive OEM (metal) General Industrial / Other

Source: KNG, Internal estimates

Top 3 players ~30% total market Top 20 players ~60% total market Winning Together | March 2018

5

Performance versus peers improved; potential for further improvement remains ROS 15%

AkzoNobel Paints and Coatings

10%

5%

0%

2012

2013

2014

2015

2016

2017

Source: Company data, internal estimates

Winning Together | March 2018

6

Well positioned to accelerate growth and enhance profitability Return on sales1

Return on investment 1

%

% Unallocated corporate cost

15 1.5

Unallocated corporate cost and invested capital

>25

10.6

18.0

8.4

15.0 13.5

25.0

9.4 13.9

2014

2017

2020 guidance²

2014

2017

2020 guidance²

1) ROS% = EBIT/revenue and moving average ROI% = 12 months EBIT/12 months average invested capital 2) Excluding unallocated corporate center costs and invested capital; assumes no significant market disruption

Winning Together | March 2018

7

Winning together: 15 by 20 Passion for Paint

2020 guidance* ROS 15% ROI >25%

Precise processes

Powerful performance

Proud people

*Excluding unallocated corporate center costs and invested capital; assumes no significant market disruption

Winning Together | March 2018

8

Management team in place to deliver

Thierry Vanlancker CEO

Ruud Joosten David Prinselaar Chief Supply Chain Officer Chief Operating Officer

Maarten de Vries CFO

Maëlys Castella Chief Corporate Development Officer

Marten Booisma Chief Human Resources Officer

Isabelle Deschamps General Counsel 9

New fit for purpose structure to increase customer focus and drive efficiency From…

To… Business

Business

Business

Business

SC

Business

Customer Business

SC

Business

Customer Business

SC

Business

Customer Business

SC

Business

Customer Business

Customers

Integrated business planning

Integrated supply chain

Winning Together | March 2018 10

Clear path to deliver on 2020 guidance Integrated Supply Chain Transformation Growth and net price/ mix

Continuous Improvement

10.6%

15%

2020 guidance* ROS 15% ROI >25%

SG&A and RD&I Transformation

Fixed cost inflation

2017

2020

*Excluding unallocated corporate center costs and invested capital; assumes no significant market disruption

Unallocated corporate cost

Winning Together | March 2018 11

Commercial: Passion for paint

Winning Together | March 2018 12

Strong portfolio of businesses with leading positions in all segments Segment

Decorative Paints

Marine and Protective Coatings

Powder Coatings

Industrial Coatings

Automotive and Specialty Coatings

Market size ~€bn, 2017¹

Market growth 2-3%², 2017-20

30 12

8

12

11

1) Excluding ~ €40 billion in regions/segments where we are not present 2) Total market growth (revenue weighted)

Strengths and opportunities Position by revenue

1

• #1/#2 market positions where we play • Strong brands and product portfolio • Leverage global to win local!

revenue from

emerging markets

1

• Marine: consolidated market • Protective: few global players • Global technology leadership

1

• Interpon #1 global brand • Sustainable coatings conversions • Strong product/ technology capabilities

1/2

• Extensive product offering • Strong position with top tier customers • Urbanization and construction growth

2/3

50%

• Growth of emerging market consumers • Leader in digital color

Source: KNG, internal estimate

Winning Together | March 2018 13

Decorative Europe: Winning model to capture benefits in recovering market Largest player in fragmented market

105

AkzoNobel

Peer 1

50% #1 positions 30% #2 positions

Peer 2

Others

Market expected to continue recovery Decorative Paints Europe Market Size Index*

100

95

+2% CAGR 2016-20

90 85 80

Peer 3

Grow market share and improve profitability:

75 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Leverage global to win local!

Build winning brands and leading positions Reduce complexity Leverage scale

Optimize portfolio and route to market

Smart packaging design Global guidelines Local brand assets

Opportunities for consolidation *Source: KNG 2017, internal estimate

Winning Together | March 2018 14

Decorative Asia: continued expansion in highly profitable and fast growing markets

€10bn market

Highly profitable and cash generative (despite lower ASP)

Strong growth drivers

Leveraging global brands and innovation

#1 or #2 positions in

Local expertise and strong customer understanding

many countries

China Growing demand for eco-premium products…

Profitable growth in mass market and project business Leader in sustainability South East Asia

Doubled

Revenue Decorative Paints Asia (€ million)

in 10 years

Developing a successful exterior proposition…

1000

500

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

… and leveraging best practice from Europe Winning Together | March 2018 15

Marine and Protective Coatings: ongoing restructuring and portfolio rebalancing Rebalancing portfolio for Protective Coatings

Industry headwinds in marine and oil and gas industries 140,000

Oil and gas capital expenditure ($ bn)

120,000

Marine order book CGT*

300 200

100,000

Oil & Gas

2016

2020 Infrastructure, Power, Mining

100

80,000

0

60,000 2012

2013

2014

2015

2016

2017

Revenue development Marine and Protective coatings demonstrates lag effect

13%

2%

11%

-5%

Global market leader, defending strong positions -7%

-11%

Focus on value pricing; restructuring ongoing Maintain technology leadership, e.g. Intersleek UV-LED

Source: Clarkson Research. *Compensated gross tonnage

Winning Together | March 2018 16

Powder Coatings: Clear global #1 in fastest growing and highly profitable market AkzoNobel Peer 1 Peer 2

Others

Peer 3

~€8bn market Growth 2x industrial GDP #1 with 2x relative market share

Multiple sources of growth (examples): New applications

Architectural and automotive coatings

Increased capacity

Chengdu – Biggest powder coatings plant in the world

Geographic expansion

Northern and Western India and Western China

Product innovation

OneWheel, Interpon Cr

Bolt-on acquisitions

V.Powdertech, Thailand

Sustainability advantages of powder coatings over liquid coatings: Zero Volatile Organic Compounds (VOCs) Less waste during application (>95% usage efficiency) Winning Together | March 2018 17

Operations: Precise processes

Winning Together | March 2018 18

One organization with a common way of working and aligned set of targets Leading 15,000 people AkzoNobel Performance System: 123 sites 448 warehouses €250m CAPEX/ yr

ALPS Customer excellence Operational excellence Leading edge technology Note: Total reportable rate (TRR) 1.0 is equivalent to 0.2, in line with OSHA guidelines

2020 targets: Safety TRR 95.5% OTIF (Top quartile)

€120m annual cost savings run rate

2014-17 Winning Together | March 2018 21

2

ALPS Integrated Business Planning +75% Forecast accuracy 95.5% →

98.5% Service (OTIF)

25% Inventory reduction Organization transformation: One operating model

Integrated Business Planning: One end-to-end business process

Top Quartile Performance

Winning Together | March 2018 22

End to end processes Cost of sales

~€5.4bn in 2017

One operating model and Integrated Business Planning

3

Total quality and service excellence

Supplier collaboration

Further ALPS Digitization

Asset network optimization

€200m 2020 annual cost savings by

Resource productivity

in addition to ALPS continuous improvement

Winning Together | March 2018 23

Financial: Powerful performance

Winning Together | March 2018 24

Winning together strategy leverages greater focus to accelerate improvements Passion for Paint

Precise processes

Powerful performance

From…

To…

Decentralized businesses…

Centrally driven sales excellence and margin management…

Differing levels of maturity…

Fragmented process and system landscape…

Simplified ERP and system platform... Integrated end-to-end processes…

Independent businesses with dedicated supply chain…

Lean fit-for-purpose organization…

Many KPIs...

Proud people

Consistent across all businesses…

Diverse cultures… Fragmented incentive schemes…

Laser sharp focus on 15% ROS! One single global team… Aligned incentives… High-performance culture Winning Together | March 2018

25

Transformation plans in place with most projects already being initiated 2017

2018

2019

2020

Sales force effectiveness Margin management Innovation excellence Global Business Services Integrated Business Planning

ERP and systems platform ALPS continuous improvement Fit-for-purpose organization Procurement excellence High performance culture

Career and capability development Core principles Initiate

Implement

Complete

Winning Together | March 2018 26

Clear path to deliver on 2020 guidance Integrated Supply Chain Transformation €200m by 2020

Growth and net price/ mix ~2%/ yr

Continuous Improvement

10.6% Fixed cost inflation ~€100m/ yr

15%

2020 guidance* ROS 15% ROI >25%

SG&A and RD&I Transformation

Key initiatives: Fit-for-purpose organization (€110m in 2018) Sales force effectiveness Innovation excellence Global Business Services ERP and systems platform

2017

2020

*Excluding unallocated corporate center costs and invested capital; assumes no significant market disruption

Unallocated corporate cost

Winning Together | March 2018 27

Updated capital allocation priorities 1. Chemicals separation

Total of €6.5 billion returned to shareholders before end 2019 Clear mandates per (sub)segment and geography

2. Profitable organic growth

Revenue growth ~2% and capital expenditure ~€250m per year Unallocated corporate center costs €140-180m in 2019 and 2020

3. Acquisitions

Strategically aligned and value creating acquisitions

4. Dividend

Stable to rising dividend (€1.80 per share for 2018)

5. Pension liabilities

Cash top-up payments of main UK plans settled (Q1 2019)

6. Balance sheet

Target leverage ratio of Net Debt / EBITDA of 1.0–2.0 by end 2020 Retain strong investment grade credit rating 28

Net debt evolution towards 2020 Net Leverage 1.0x – 2.0x

Net Leverage (5.6x)

Net Debt

Net Leverage 1.7x

Net Cash

Potential for further capital returns to shareholders

✓

✓

✓

✓ (February 2019) (February to end 2019)

(December 2017) (January 2019)

Return of proceeds from Specialty Chemicals

29

Strong bolt-on acquisitions in last 18 months Fabryo

Xylazel

Agreement to acquire Fabryo, becoming the leader in the Romanian decorative paints market

Strengthens our position as a leader in the decorative paints market in Spain and means we are now the leader in the country’s woodcare segment

Colourland Paints

Swire

Strengthens our position as in Malaysia and enhances our global portfolio with a much-loved local brand

Acquisition of minority interest share to obtain full ownership of Chinese JV, enabling strategic flexibility

30

Investor update Q2 2019 July 24, 2019

Operation Night Watch We recently partnered with the Rijksmuseum for one of the most innovative projects in the history of art – the live restoration of Rembrandt’s Night Watch. In a spectacular fusion of old and new, Operation Night Watch will use ground-breaking techniques to preserve the painting for future generations. We’ll also be contributing our color expertise to the historic project.

Agenda Key highlights

Financial review Concluding remarks

Q&A

Investor update | Q2 2019 32

Key highlights

Investor update | Q2 2019 33

Q2 2019 results show continued progress towards Winning together: 15 by 20 strategy Adjusted operating income 36% higher at €305 million (2018: €225 million)

ROS, excluding unallocated costs, increased to 13.7% (2018: 12.1%) Focus on value over volume resulted in price/mix up 5% and 6% lower volumes Transformation on track and delivered €43 million cost savings

€1.5 billion of €2.5 billion share buyback program completed in H1 2019 Acquisition of Mapaero strengthens global position in aerospace coatings

The intended acquisition of Mapaero will improve AkzoNobel’s position in the structural and cabin coating sub-segments and contribute directly towards delivering our 2020 guidance. Investor update | Q2 2019 34

Profit up 36% and ROS* 13.7% driven by pricing initiatives and cost-saving programs Q2 2019:

Revenue

Price/mix

Up 1%

Adjusted EPS

5% higher

85% higher

In constant currencies

ROS*

Adjusted Operating Income

Increased to 13.7% (Q2 2018: 12.1%)

*Excluding unallocated corporate center costs

€1.5 billion shares repurchased in H1 part of €2.5 billion share buyback to be completed by end 2019

Up 36%

Investor update | Q2 2019 35

Winning together: 15 by 20 strategy delivering results and gathering momentum Sales force effectiveness Margin management Innovation excellence

Price/mix increased 5% (versus Q2 2018)

Global Business Services Integrated Business Planning ERP and systems platform

GBS: 18 country transitions complete; 45/120 transitions in progress, to be completed by end 2020

ALPS continuous improvement Fit-for-purpose organization Procurement excellence

Delivered €43m cost savings in the quarter, on track to deliver the next €200m by 2020

High performance culture Career and capability development Core principles

Successfully focused on value over volume

*Excluding unallocated corporate center costs

Agreements signed with all Paint the Future finalists

7/18 ERP integration go lives for 2019

Final purchase price settlement for the sale of Specialty Chemicals Investor update | Q2 2019 36

Dealing with market headwinds EMEA South America

Industrial Coatings

~ China

Foreign exchange

Raw materials

~

Marine and Protective Coatings

~

South East and South Asia

Powder Coatings

Automotive and Specialty Coatings

~ Investor update | Q2 2019 37

Financial review

Investor update | Q2 2019 38

Adjusted operating income 36% higher and revenue up in constant currencies € million

Q2 2018

Q2 2019

Δ%

Δ%CC

Revenue

2,446

2,451

-%

1%

Adjusted EBITDA

285

394

38%

Adjusted operating income

225

305

36%

Operating income

192

308

60%

12.1%

13.7%

9.2%

12.4%

12.2%

13.4%

ROS% excluding unallocated costs ROS%1 ROI%2 excluding unallocated costs

-6

Volumes

1

-1

ROS, excluding unallocated costs, increased to 13.7% (2018: 12.1%)

0 Increase Decrease

5

Price/mix

Volumes 6% lower due to value over volume strategy

Operating income at €308 million included identified items of €3 million positive (2018: €33 million negative)

Revenue development Q2 2019 (%)

1

Price/mix up 5% overall, mainly driven by pricing initiatives

Acquisitions

Other

FX

Total

Impact Decorative Paints China

Note: Other revenue includes service revenue related to services for the Specialty Chemicals business 1ROS% = Adjusted operating income/revenue. 2ROI% = Adjusted operating income of the last 12 months as percentage of average invested capital for Decorative Paints and Performance Coatings. It excludes unallocated corporate center costs and invested capital consistent with our 2020 guidance

Investor update | Q2 2019 39

Pricing initiatives and clear strategic mandates focus on value over volume Decorative Paints

Performance Coatings

Total

Quarterly price/mix development in % year-on-year

11 8 0

4

5

6

4

-3 -3 -3 -5

1

0

0

3

5

7

7

2

-1

Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19

9

7

5

6

6

5

-1 -1 -1 -1

Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19

Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19

Quarterly volume* development in % year-on-year

12

Impact Decorative Paints China

9 3

5

-6 -6

-4

-1 -2 -4 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19

Impact Decorative Paints China

0

1 -4

4 -2 -5 -3

-7 -7 -8 -7

Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19

3 -1

-7

3

-7 -6

-3 -3 -5

Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19

Organic volume development, does not include acquisition impact Investor update | Q2 2019 40

Positive price/mix and cost savings offsetting higher raw material costs Adjusted operating income bridge: Q2 2018 to Q2 2019 Positive impact Negative impact

21

- 33

-1

43

-

114

- 64 -

305

225

Q2 2018 adjusted operating income

FX

Volumes

Price/mix

Raw materials/ Variable cost

OPEX

One-offs and other

Q2 2019 adjusted operating income

Investor update | Q2 2019 41

Decorative Paints ROS up, driven by strong performance in EMEA € million

Q2 2018

Q2 2019

Δ%

Δ%CC

Revenue

1,006

1,005

-

2%

Adjusted EBITDA

145

177

22%

Adjusted operating income

123

136

11%

Operating income

111

166

50%

ROS%*

12.2%

13.5%

ROI%*

11.8%

12.2%

Revenue development Q2 2019 (%) 2 Increase

2

-4

-2

0

Impact Decorative Paints China

4

Volumes

Price/mix

Decrease

Acquisitions

FX

Total

*ROS% = Adjusted operating income/revenue. ROI% = 12 months adjusted operating income/12 months average invested capital.

Our Dulux Valentine decorative paint brand in France has roared onto the market with a new EasyCare product called Color Resist. The EasyCare range (also known as EasyClean) has now been introduced in 26 countries worldwide, including brands such as Dulux and Marshall. Investor update | Q2 2019 42

Performance Coatings ROS higher: focus on pricing initiatives and cost savings € million

Q2 2018

Q2 2019

Δ%

Δ%CC

Revenue

1,454

1,445

(1%)

-%

Adjusted EBITDA

207

241

16%

Adjusted operating income

172

197

15%

Operating income

162

174

7%

ROS%*

11.8%

13.6%

ROI%*

19.9%

20.6%

Revenue development Q2 2019 (%) 7

-7

7

Volumes

Price/mix

Acquisitions

-1

-1

FX

Total

Increase Decrease

*ROS% = Adjusted operating income/revenue. ROI% = 12 months adjusted operating income/12 months average invested capital.

New York’s historic Hudson Yards development – which is changing the city’s iconic skyline – has reached its latest milestone, and AkzoNobel has made a major contribution.

Investor update | Q2 2019 43

Adjusted EPS increased 85% mainly due to higher operating income Q2 2018 192 (28) 6 170 (47) 123 165 288 (17) 271

Q2 2019 308 (18) 5 295 (69) 226 16 242 (11) 231

Q2 2018 1.06 Q2 2018 0.52

€ million Operating income Net financing expenses Results from associates and joint ventures Profit before tax Income tax Profit from continuing operations Profit from discontinued operations Profit for the period Non-controlling interests Net income from total operations

H1 2018 300 (9) 10 301 (46) 255 307 562 (38) 524

H1 2019 421 (31) 10 400 (100) 300 16 316 (20) 296

Q2 2019 Earnings per share (in €) 1.07 Total operations

H1 2018 2.07

H1 2019 1.32

Q2 2019 Adjusted earnings per share (in €) 0.96 Continuing operations

H1 2018 0.87

H1 2019 1.40

Investor update | Q2 2019 44

Q2 free cash flow improved driven by increased EBITDA Q2 2018 252 (2) (222) (10) (8) (10) 14 1 15 (42) (27)

Q2 2019 397 (66) (116) (1) 7 (15) (57) 3 152 (46) 106

€ million EBITDA Impairment losses Pre-tax results on acquisitions and divestments Changes in working capital Pension top-up payments Other changes in provisions Interest paid Income tax paid Other changes Net cash from operating activities Capital expenditures Free cash flow

Net Debt

*Cash top-up payments for main UK pension plans of €479 million. Excludes pre-funding of escrow account €161 million.

H1 2018 420 (22) (582) (185) (18) (14) (37) (3) (441) (79) (520)

H1 2019 595 33 (66) (537) (479)* (13) (21) (87) 3 (572) (83) (655)

2,887

62

Investor update | Q2 2019 45

Concluding remarks

Investor update | Q2 2019 46

Q2 2019 results show continued progress towards Winning together: 15 by 20 strategy Adjusted operating income 36% higher at €305 million (2018: €225 million)

ROS, excluding unallocated costs, increased to 13.7% (2018: 12.1%) Focus on value over volume resulted in price/mix up 5% and 6% lower volumes Transformation on track and delivered €43 million cost savings

€1.5 billion of €2.5 billion share buyback program completed in H1 2019 Acquisition of Mapaero strengthens global position in aerospace coatings

Our pioneering Paint the Future startup challenge proved to be a huge success, with five business agreements being awarded by AkzoNobel at the accelerator event held in May.

Investor update | Q2 2019 47

Outlook 2020 guidance* ROS 15% ROI >25%

We’re delivering towards our Winning together: 15 by 20 strategy and continue creating a fit-for-purpose organization for a focused paints and coatings company, contributing to the achievement of our 2020 guidance. Demand trends differ per region and segment in an uncertain macro-economic environment. Raw material inflation is expected to stabilize during the second half of this year. Continued pricing initiatives and cost saving programs are in place to address the current challenges. We continue executing our transformation to deliver the next €200 million cost savings by 2020, incurring one-off costs in 2019 and 2020. We target a leverage ratio of between 1.0-2.0 times net debt/EBITDA by the end of 2020 and commit to retain a strong investment grade credit rating. * Excluding unallocated corporate center costs and invested capital: assumes no significant market disruption

Investor update | Q2 2019

48

Upcoming events

Report for the third quarter 2019

October 23, 2019

Report for the full-year and the fourth quarter

February 12, 2020 Investor update | Q2 2019 49

A focused, high performing, paints and coatings company Strong global brands Leading positions in large and attractive markets Balanced geographic exposure: 50% revenue from emerging markets Well positioned to accelerate growth and enhance profitability Transformation plans in place and clear path to deliver Significant returns to shareholders

* Excluding unallocated corporate center costs and invested capital; assumes no significant market disruption

2020 guidance* ROS 15% ROI >25%

Investor update | Q2 2019 50

Disclaimer/forward-looking statements This presentation does not constitute or form a part of any offer to sell, or any invitation or other solicitation of any offer, to buy or subscribe for any securities in the United States or any other jurisdiction. Some statements in this presentation are 'forward-looking statements'. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that may occur in the future. These forward-looking statements involve known and unknown risks, uncertainties and other factors that are outside of our control and impossible to predict and may cause actual results to differ materially from any future results expressed or implied. These forward-looking statements are based on current expectations, estimates, forecasts, analyses and projections about the industries in which we operate and management's beliefs and assumptions about possible future events. You are cautioned not to put undue reliance on these forward-looking statements, which only speak as of the date of this presentation and are neither predictions nor guarantees of possible future events or circumstances. We do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. This presentation also contains statements, which address such key issues as AkzoNobel’s growth strategy, future financial results, market positions, product development, products in the pipeline and product approvals. Such statements should be carefully considered, and it should be understood that many factors could cause forecast and actual results to differ from these statements. These factors include, but are not limited to, price fluctuations, currency fluctuations, developments in raw material and personnel costs, pensions, physical and environmental risks, legal issues, and legislative, fiscal, and other regulatory factors. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. For a more comprehensive discussion of the risk factors affecting our business please see our latest annual report., a copy of which can be found on the company’s corporate website www.akzonobel.com

Investor update | Q2 2019 51

Appendix

Investor update | Q2 2019 52

H1 2019: Profit up 25% and ROS* 11.5% € million

H1 2018

H1 2019

Δ%

Δ%CC

Revenue

4,622

4,636

-%

1%

Adjusted EBITDA

494

642

30%

Adjusted operating income

374

468

25%

Operating income

300

421

40%

10.5%

11.5%

8.1%

10.1%

15.9%

16.5%

ROS% excluding unallocated costs ROS%1 ROI%2 excluding unallocated costs Revenue development H1 2019 (%) 1

-6 -7

1

-1

Price/mix up 5% overall, mainly driven by pricing initiatives Volumes 6% lower due to value over volume strategy ROS, excluding unallocated costs, increased to 11.5%

0

5 Increase Decrease

Volumes

Price/mix

Acquisitions

Other

FX

Total

Impact Decorative Paints China

Note: Other revenue includes service revenue related to services for the Specialty Chemicals business 1ROS% = Adjusted operating income/revenue. 2ROI% = Adjusted operating income of the last 12 months as percentage of average invested capital for Decorative Paints and Performance Coatings. It excludes unallocated corporate center costs and invested capital consistent with our 2020 guidance * Excluding unallocated corporate center costs and invested capital; assumes no significant market disruption

Investor update | Q2 2019 53

H1 2019: Decorative Paints € million

H1 2018

H1 2019

Δ%

Δ%CC

Revenue

1,852

1,849

-

2%

Adjusted EBITDA

224

272

21%

Adjusted operating income

179

196

9%

Operating income

159

220

38%

ROS%*

9.7%

10.6%

ROI%*

11.8%

12.2%

Increase

-5

2

-2

Volumes

Price/mix

Decrease Impact Decorative Paints China

5

Acquisitions

FX

Continued focus on pricing initiatives contributed to positive price/mix of 5%, while volumes were lower Acquisitions contributed 2% to revenues

Adjusted operating income increased to €196 million (2018: €179 million)

Revenue development H1 2019 (%)

0

Revenue flat and up 2% in constant currencies

Continued pricing initiatives and cost savings offset higher raw material costs and lower volumes, resulting in ROS of 10.6% (2018: 9.7%)

Total

*ROS% = Adjusted operating income/revenue. ROI% = 12 months adjusted operating income/12 months average invested capital.

Investor update | Q2 2019 54

H1 2019: Performance Coatings € million

H1 2018

H1 2019

Δ%

Δ%CC

Revenue

2,796

2,784

-

(1%)

Adjusted EBITDA

376

423

13%

Adjusted operating income

306

335

9%

Operating income

283

271

-4%

ROS%*

10.9%

12.0%

ROI%*

19.9%

20.6%

Revenue development H1 2019 (%)

-7

6

Volumes

Price/mix

Acquisitions

1

0

FX

Total

Revenue flat, and 1% lower in constant currencies

Price/mix was more than offset by lower volumes Adjusted operating income increased to €335 million (2018: €306 million) as pricing initiatives and cost control more than compensated for higher raw material costs and lower volumes

Increase Decrease

*ROS% = Adjusted operating income/revenue. ROI% = 12 months adjusted operating income/12 months average invested capital.

Investor update | Q2 2019 55

IFRS 16 has limited impact; adopting the modified retrospective approach Second quarter Before IFRS16

Impact

January - June

including € million IFRS 16

before IFRS16

Impact

including IFRS 16

€ million

367

27

394

Adjusted EBITDA

588

54

642

Intangible assets

370

27

397

EBITDA

541

54

595

Property, plant and equipment

(63)

(26)

(89)

(123)

(51)

(174)

304

1

305

465

3

468

307

1

308

Depreciation/amortization Adjusted operating income Operating income

418

3

421

(17)

(1)

(18)

Net financing expense

(28)

(3)

(31)

215

-

215

280

-

280

125

27

152

(626)

54

(572)

(1,507)

(27)

(1,534)

(4,835)

(54)

(4,889)

12.4%

-

12.4%

Net income Net cash from operating activities Net cash from financing activities ROS%

10.0%

0.1%

10.1%

Restated As Restatement opening reported at due to balance at December adoption January 1, 31, 2018 IFRS 16 2019 3,458 (35) 3,423 1,748

(30)

1,718

-

420

420

Other financial non-current assets

1,965

-

1,965

Current assets

11,613

-

11,613

Total assets

18,784

355

19,139

Group equity

12,038

-

12,038

Non-current liabilities

3,066

264

3,330

Current liabilities

3,680

91

3,771

Total liabilities

18,784

355

19,139

Right-use-of asset

Investor update | Q2 2019 56

IAS19 pension surplus following cash top-up payments Key pension financial assumptions

Q1 2019

Q2 2019

Discount rate

2.3%

2.1%

Inflation rate

3.1%

3.1%

€ million 1,200

Increase Decrease

1,000

1

800

- 240

- 24

229

-

66

600 400

-

899

799

200 0 Q1 2019

Top-ups

Discount rates on DBO

Inflation on DBO

Asset return over P&L

Other

Surplus end Q2 2019

Investor update | Q2 2019 57

Cash top-up payments of main UK plans settled (Q1 2019) IAS19 pension surplus of €0.4 billion, following sale of Specialty Chemicals

Negotiations on triennial review of UK defined benefit pension schemes concluded (February 2019) Cash top-ups updated for actual payments 2018 and future payment schedule Estimated cash top-ups € million

Updated 630 Cash Cash to escrow account

470 297

2016

275

2017

187

158

2018

2019 E

10

2020 E

30

2021 E

10

10

10

2022 E

2023 E

2024 E

Relate mainly to two UK plans: ICI Pension Fund and the Akzo Nobel (CPS) Pension Scheme Investor update | Q1 2019 58

€6.5 billion return to shareholders to be completed before end 2019 Apr 19, 2017

Dec 7, 2017

Oct 1, 2018

Jan 22, 2019

Before end 2019

Announced separation of Specialty Chemicals business within 12 months

Advance proceeds of separation paid as special dividend of €1 billion (€4/share)

Closed sale of Specialty Chemicals to The Carlyle Group and GIC

€2 billion capital repayment and share consolidation

€2.5 billion share buyback program

Nov 30, 2017

Mar 27, 2018

Nov 13, 2018

Feb 25, 2019

EGM to approve separation of Specialty Chemicals

Announced sale of Specialty Chemicals for €10.1 billion to The Carlyle Group and GIC

EGM to approve capital repayment and share consolidation

€1 billion special cash dividend

Investor update | Q2 2019 59

Breakdown of total raw material spend 2018 (%) Titanium dioxide

12

Specialty resins

Additives

16

14

Commodity resins

19 10 Solvents

7

11 Pigments and colorants

11 Latex and monomers

Packaging

Investor update | Q1 2019 60

Disclaimer/ forward-looking statements This presentation does not constitute or form a part of any offer to sell, or any invitation or other solicitation of any offer, to buy or subscribe for any securities in the United States or any other jurisdiction. Some statements in this presentation are 'forward-looking statements'. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that may occur in the future. These forward-looking statements involve known and unknown risks, uncertainties and other factors that are outside of our control and impossible to predict and may cause actual results to differ materially from any future results expressed or implied. These forward-looking statements are based on current expectations, estimates, forecasts, analyses and projections about the industries in which we operate and management's beliefs and assumptions about possible future events. You are cautioned not to put undue reliance on these forward-looking statements, which only speak as of the date of this presentation and are neither predictions nor guarantees of possible future events or circumstances. We do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. This presentation also contains statements, which address such key issues as AkzoNobel’s growth strategy, future financial results, market positions, product development, products in the pipeline and product approvals. Such statements should be carefully considered, and it should be understood that many factors could cause forecast and actual results to differ from these statements. These factors include, but are not limited to, price fluctuations, currency fluctuations, developments in raw material and personnel costs, pensions, physical and environmental risks, legal issues, and legislative, fiscal, and other regulatory measures as well as the sale of the Specialty Chemicals business. State competitive positions are based on management estimates supported by information provided by specialized external agencies. For a mor comprehensive discussion of the risk factors affecting our business please see our latest annual report., a copy of which can be found on the company’s corporate website www.akzonobel.com

Investor update | Q1 2019 61