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Safe harbor statement*Safe harbor statement*

This report contains statements which address such key issues as Akzo Nobel’s growth strategy, future financial results, market positions, product development, pharmaceutical products in the pipeline, and product approvals. Such statements, including but not limited to the “Outlook for 2005”, 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 complete discussion of the risk factors affecting our business please see our Annual Report on Form 20-F filed with the United States Securities and Exchange Commission, a copy of which can be found on the Company’s website www.akzonobel.com.

* Pursuant to the U.S. Private Securities Litigation Reform Act 1995.

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Hans Wijers, CEO

Creating a platform for growthCreating a platform for growth

2004 Results Press ConferenceFebruary 4, 2005

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2004 2004 –– actions to strengthen the Company actions to strengthen the Company paid offpaid off

Akzo Nobel tackled challenges with accelerated pace of change

Robust performance 2004 – actions paying off

2005 – facing the future from a position of strength

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Robust performance in the face of Robust performance in the face of headwindheadwind• Pharma: sales down 9%, but margins held steady thanks

to restructuring and benefits of new alliances

• Coatings: autonomous growth 5%, steady ROS and higher ROI despite steep rise in raw material costs

• Chemicals: quantum leap in ROI, strong operating profit growth from continuing operations

• Divestment program achieved EUR 1 billion proceeds

• Operating leverage due to aggressive restructuring – cost lowered by EUR 150 million compared to 2003

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Creating the platforms for growthCreating the platforms for growth

Pharma – ready for renewed top-line growth

Coatings – expanding #1 position

Chemicals – further focused platform

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2004 financial results2004 financial results

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Net income substantially up Net income substantially up

EUR mln or % 2004 2003 Δ%

Sales 12,688 13,051 (3)

EBIT* 1,210 1,347 (10)

Net income excl. nonrec. 770 811 (5)

Net income 856 602 42

Ratio or EUR

ROS* 9.5 10.3

EPS 3.00 2.11

* Excluding nonrecurring items

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Outperformance against 2004 outlookOutperformance against 2004 outlook

EUR mln or % 2004 2003** Δ%

Sales 12,688 13,051 (3)

EBIT* 1,210 1,259 (4)

Net income excl. nonrec. 770 741 4

Net income 856 542 58

ROS* 9.5 9.6

* Excluding nonrecurring items** Excluding initial asenapine payment

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Autonomous growth 2%Autonomous growth 2%

EUR bln Sales Δ%

12.712.7 (3)

Pharma 3.23.2 (9)

Chemicals 4.34.3 1*

Coatings 5.25.2 2

2004

Growth + 2%

Currencies – 3%

Divestments/acquisitions – 2%

Total – 3%

* Ongoing operations

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Operating income downOperating income down

EUR mln EBIT Δ%

1,2101,210 (10)

Pharma 522522 (14)*

Chemicals 354354 21**

Coatings 421421 2

2004

Pensions

+ 4%

Currencies

– 4%

Divestments/acquisitions

– 2%

Performance

– 2%

Total

– 4%

Pfizer

– 6%

Total

– 10%

* Excluding asenapine.** Ongoing operations.Excluding nonrecurring items.

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• Organon – turning point for top-line growth

• Diosynth – overcapacity

• Intervet – good results

Pharma – margin aggressively defended; Pharma – margin aggressively defended;

benefiting from strategic realignments benefiting from strategic realignments

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Excluding nonrecurring items; Q-4 dark top part concerns asenapine special benefit.

Pharma – margin protection program Pharma – margin protection program mitigating effect top-line declinemitigating effect top-line decline

EUR mln

Sales EBIT

Sales EBIT

0

300

600

900

Q-1 Q-2 Q-3 Q-4

0

50

100

150

200

250

300

350

20032004

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Coatings – volume growth and improved Coatings – volume growth and improved efficiency offset rising raw materials costs efficiency offset rising raw materials costs • Steep increase in raw material costs in second half

• Autonomous growth 5%, mainly Asia Pacific and U.S., 32% of sales now from emerging markets

• ROS held steady at 8%, ROI improved to 20.5%

• Marine & Protective and Powder Coatings led growth

• Decorative Coatings – improved performance from cost savings

• Car Refinishes – major worldwide restructuring set to pay off in 2005

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Excluding nonrecurring items

Sales EBIT

EUR mln Sales EBIT

0

500

1.000

1.500

Q-1 Q-2 Q-3 Q-4

0

100

200

20032004

Coatings – raw materials impact 2H, priority Coatings – raw materials impact 2H, priority

to obtain higher selling prices in 2005to obtain higher selling prices in 2005

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• Benefits of cost savings programs combine with improved

business conditions to lift performance

• Continued operations – autonomous growth 5%;

operating income up 21%

• Steeply rising raw material and energy prices – increasing

pressure on margins

• EUR 1 bln divestment program – completed

Chemicals – best performance in yearsChemicals – best performance in years

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Excluding nonrecurring items.Dark top part concerns Catalysts, Phosphorus Chemicals and Coating Resins.

Sales EBIT

EUR mln Sales EBIT

0

250

500

750

1.000

1.250

Q-1 Q-2 Q-3 Q-4

0

25

50

75

100

125

20032004

Chemicals – superior performance from Chemicals – superior performance from continuing operationscontinuing operations

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Restructuring in mature markets – Restructuring in mature markets – growth in Asia Pacificgrowth in Asia Pacific

Number of employees

Restructuring 2,650Restructuring 2,650Divestments 1,610Divestments 1,610

GrowthGrowth1,1301,130

December 31, 2003: 64,580December 31, 2003: 64,580

December 31, 2004: 61,450December 31, 2004: 61,450

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Positive impact of nonrecurring itemsPositive impact of nonrecurring items

• Net nonrecurring gain of EUR 86 million

– divestments

– restructuring and impairment charges

– antitrust cases

– settlement of Remeron® cases

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Strong financial position, dividend Strong financial position, dividend maintainedmaintainedDecember 31; EUR bln 2004 2003

Working capital 2.2 2.6

Equity 3.2 2.6

Net borrowings 1.1 2.4

EUR or %

Dividend 1.20 1.20

Payout ratio 45 42

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Q-4 operational performanceQ-4 operational performance

• Q-4 earnings lower

• Autonomous growth of 4%

• Operating income down 42%

• Good operational performance

• Pharmaceuticals performance in line with expectations

• Coatings impacted by raw material costs

• Chemicals good

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Actively Managing Actively Managing

the Businessesthe Businesses

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Strategic review Chemicals – conclusionsStrategic review Chemicals – conclusions

• Focus portfolio on selected market segments meeting the following criteria:

– Leading position and significant size

– Competitive advantage and opportunity to grow

– Sustainable above average financial performance

– Good internal fit

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Commitment to 5 core businesses with Commitment to 5 core businesses with clear prospects for profitable clear prospects for profitable leadership leadership • Pulp & Paper Chemicals

Pulp Bleaching and Paper Chemicals for global pulp & paper industry

• Polymer ChemicalsOrganic Peroxides and additives for polymer producers and processors around the world

• SurfactantsSurfactants for cleaning, agro, mining and petroleum applications

• Functional ChemicalsHigh value added specialties, intermediates and derivatives

• Base ChemicalsIntegrated Energy, Salt and Chlorine chain

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Businesses to be divestedBusinesses to be divested

• Ink & Adhesive Resins

• Oleochemicals

• Salt Specialties

• PVC Additives

• Solar Salt Australia

• Methyl Amines / Choline Chloride

• Others

Total 2004 sales of about EUR 750 mln

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Clarity of directionClarity of direction

• Challenging restructuring necessary to secure a

solid foundation for Akzo Nobel Chemicals

• A clear commitment to support profitable growth

in strategic areas

• Manage divestments and rationalization

in an efficient and responsible manner

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20052005

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We enter 2005 in excellent shape, facing We enter 2005 in excellent shape, facing the future from a position of strengththe future from a position of strength• Demonstrate Pharma pipeline progress

• Active consideration of opportunities to expand leadership positions

• Push volume growth and price increases to mitigate raw materials cost pressures

• Execute new divestment program and reap benefits of further restructuring

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2005 – c2005 – cautiously optimisticautiously optimistic

• Top-line growth across portfolio

• Continued external pressure on margins

– raw material and energy prices

– currencies

• Costs to support future launches from Pharma pipeline

– defending margins vs. R&D and pre-marketing costs

Aspiring to achieve net income within range of Aspiring to achieve net income within range of 20042004 excluding nonrecurring items

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Operational performanceOperational performance

44thth quarter of 2004 quarter of 2004

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Q-4 operational performanceQ-4 operational performance

• Q-4 earnings lower

• Autonomous growth of 4%

• Operating income down 42%

• Good operational performance

• Pharmaceuticals performance in line with expectations

• Coatings impacted by raw material costs

• Chemicals good

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Q-4 earnings – at a first glanceQ-4 earnings – at a first glance

Q-4; EUR mln or % 2004 2003 Δ%

Sales 3,040 3,111 (2)

EBIT* 254 441 (42)

Net income excl. nonrec 165 268 (38)

Net income 90 105 (14)

* Excluding nonrecurring items

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Q-4 earnings – excluding asenapine Q-4 earnings – excluding asenapine paymentpaymentQ-4; EUR mln or % 2004 2003** Δ%

Sales 3,040 3,111 (2)

EBIT* 254 353 (28)

Net income excl. nonrec 165 198 (17)

Net income 90 35 157

* Excluding nonrecurring items** Excluding initial asenapine payment

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Autonomous growth 4%Autonomous growth 4%

Q-4, EUR bln Sales Δ%

3.03.0 (2)

Pharma 0.80.8 (9)

Chemicals 1.01.0 6*

Coatings 1.21.2 7

2004

Growth + 4%

Currencies – 3%

Divestments/acquisitions – 3%

Total – 2%

* Ongoing operations

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Operating income down 42%Operating income down 42%

Q-4, EUR mln EBIT Δ%

254254 (42)

Pharma 119119 (40)*

Chemicals 8888 24**

Coatings 5656 (32)

* Excluding asenapine.** Ongoing operations.Excluding nonrecurring items.

2004

Pensions + 3%

Performance – 20%

Pfizer – 20%

Divestments/acquisitions – 3%

Currencies – 2%

Total – 42%