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2014-04-17

Akzo Nobel NV: AkzoNobel publishes Q1 2014 results

April 17, 2014

* Volume and price/mix development positive in all three Business Areas
* Revenue down 2 percent due to 5 percent currency effects
* Restructuring costs of €44 million (2013 €29 million). Excluding these,
ROS% is 7.7 percent (2013: 7.1 percent)
* Operating income at €216 million (2013: €217 million) reflects adverse
currencies and €15 million higher restructuring costs
* Net income attributable to shareholders at €129 million increased (2013:
€89 million) mainly due to lower financing expenses
* Adjusted EPS at €0.61 (2013: €0.51)
* Net cash outflow from operating activities was €552 million (2013: €406
million)
* On track to deliver 2015 targets despite expected continued fragile
economic environment and volatile currencies in 2014

Q1 2014 in € million

--------------------------------------------------------------
| Q1 2013 Q1 2014 D% |
|Revenue 3,465 3,383 (2) |
|Operating income 217 216 - |
|Return on sales (ROS) % 6.3 6.4 |
|EBITDA 375 364 (3) |
|Net income attributable to shareholders 89 129 45 |
--------------------------------------------------------------
Akzo Nobel N.V. (AkzoNobel) today reported a positive volume and price/mix
development in all three Business Areas. First quarter revenues of €3,383
million were 2 percent lower compared with the same period last year. The
decrease was mainly a consequence of a 5 percent impact from currency
translation. Operating income was flat at €216 million after €15 million
higher restructuring charges and currencies. As a consequence of de-risking
our pension liabilities in the UK, other comprehensive income in
shareholders' equity was adversely affected by €0.8 billion. Continuous
improvement programs are ongoing and the company is on track to achieve its
2015 targets.

CFO Keith Nichols
"These results are a further step towards the delivery of AkzoNobel's 2015
targets. Despite higher restructuring charges, continued adverse currency
effects and ongoing weakness in Europe, our year-on-year return on sales,
both before and after higher restructuring charges, improved for the third
consecutive quarter. Net income attributable to shareholders and adjusted EPS
have both increased significantly, benefiting from lower financing costs as a
result of recent debt repayments. AkzoNobel remains on track to deliver its
2015 targets of 9 percent return on sales, 14 percent return on invested
capital and a net debt/EBITDA ratio lower than 2.0."

Volume inDecorative Paints
was up compared with 2013 due to development in Asia, while conditions in
Europe and Latin America were challenging. Price/mix development was positive
in all three regions. Revenue in Decorative Paints declined 6 percent due to
6 percent adverse currency effects, mainly in Latin America and Asia, and a 4
percent divestment effect from the sale of Building Adhesives. Operating
income for the quarter was lower than the previous year, mainly due to higher
restructuring costs in mature markets.

Volume inPerformance Coatings
was up 3 percent on 2013. Compared to the previous year, positive volume and
price/mix development was more than offset due to a 6 percent negative impact
from currencies. As a result, revenue declined 1 percent compared with 2013.
Operating income was down 2 percent due to higher restructuring costs and
currency translation.

Volume inSpecialty Chemicals
was higher compared with 2013 as a result of better market conditions in
Functional Chemicals and the absence of the previous year's production
issues, notably in Industrial Chemicals. Revenue declined due to adverse
currency developments and divestments. Operating income was up 36 percent at
€135 million due to cost control and operational efficiencies.

Outlook
AkzoNobel is on track to deliver its 2015 targets despite the expected
continued fragile economic environment and continued volatile currencies in
2014.

Business Area highlights

----------------------------
|Decorative Paints |
|Q1 2014 in €m |
| 2013 2014 D% |
|Revenue 925 865 (6) |
|OPI 43 17 (60) |
|ROS (in %) 4.6 2.0 |
| |
----------------------------

-----------------------------
|Performance Coatings |
|Q1 2014 in €m |
| 2013 2014 D% |
|Revenue 1,331 1,319 (1) |
|OPI 129 126 (2) |
|ROS (in %) 9.7 9.6 |
| |
-----------------------------

-----------------------------
|Specialty Chemicals |
|Q1 2014 in €m |
| 2013 2014 D% |
|Revenue 1,244 1,222 (2) |
|OPI 99 135 36 |
|ROS (in %) 8.0 11.0 |
| |
-----------------------------
The Q1 2014 report can be downloaded via the AkzoNobel Report iPad
apphttp://bit.ly/obljrfor read online atwww.akzonobel.com/quarterlyresults.

- - -
AkzoNobel is a leading global paints and coatings company and a major producer
of specialty chemicals. We supply industries and consumers worldwide with
innovative products and are passionate about developing sustainable answers
for our customers. Our portfolio includes well-known brands such as Dulux,
Sikkens, International and Eka. Headquartered in Amsterdam, the Netherlands,
we are consistently ranked as one of the leaders in the area of
sustainability. With operations in more than 80 countries, our 50,000 people
around the world are committed to delivering leading products and
technologies to meet the growing demands of our fast-changing world.

Not for publication - for more information

------------------------------------------------------------------------------------------------------
|Corporate Media Relations, tel.: +31 20 502 7833 Corporate Investor Relations, tel.:+31 20 502 7854 |
|Contact: Diana Abrahams Contact: Sheryl Stokes |
------------------------------------------------------------------------------------------------------
Safe Harbor Statement
This press release 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 forecasted 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. 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
websitewww.akzonobel.com.

AkzoNobel Report Q1 2014
http://hugin.info/130660/R/1778003/607150.pdf
AkzoNobel Press Release Q1 2014
http://hugin.info/130660/R/1778003/607148.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Akzo Nobel NV via Globenewswire

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