FFNEY 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 2003”, 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, 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. * Pursuant to the U.S. Private Securities Litigation Reform Act 1995

FFNEY – strong start; weak finish Excluding extraordinary and nonrecurring items. EUR mln +9% –2% –3% –21% Y-t-d –4% Net income

FFNEY Coatings & Chemicals – strong performance Pharma – down Q-4, EUR bln Sales Δ% EUR mln EBIT Δ% –314(13) Pharma1.0 (5)180(20) Chemicals Coatings Fourth quarter

FFNEY Q-4 – net income 21% down EUR mln 2002 Δ% / 2001 Sales3,383 – EBIT314 (13) Noncons. companies–20 Net income176 (21) ROS, % Interest coverage EPS, EUR Excluding extraordinary and nonrecurring items. Fourth quarter

FFNEY – sales flat; EBIT down 5% EUR bln Sales Δ% EUR mln EBIT Δ% 14.01, (1)1,492(5) Pharma4.0 (1)768(8) Chemicals4.6– Coatings5.5 (1)4659

FFNEY Euro – strengthening throughout 2002 USD –5%+5%+10%+13% Y-t-d: +6% Changes of average rates. 2002

FFNEY % TotalAutonomousCurrenciesAcquis./ growth growthdivest Pharma(1)6(4)(3) Coatings(1)3(3)(1) Chemicals –2(3)1 Akzo Nobel (1)3(3)(1) Sales – internal growth in all groups 2002

FFNEY Pensions – impacted by stock markets  P&L charges –2002: up EUR 80 mln –2003: up EUR 130 mln  Cash –EUR 100 mln extra in Q  Balance sheet –EUR 1.1 bln net provision against equity 2002

FFNEY EBIT – increasingly affected by pensions and currencies EUR mln Full year

FFNEY EUR mln ChangePerformancePensions & improvementcurrencies Pharma(63)7(70) Coatings3974(35) Chemicals4 39(35) Other(59)(39)(20) Akzo Nobel(79) 81(160) EBIT – performance improvement exceeded by pensions and currencies 2002

FFNEY –earnings slightly down dividend unchanged EUR mln 2002Δ% EBIT1,492(5) Noncons. comps.38(45) Net income892(4) ROS, % Interest cover EPS, EUR Dividend, EUR Excluding extraordinary and nonrecurring items 2002

FFNEY Pharma – a challenging year EUR mln 2002 Δ% Sales4,008(1) EBIT768(8) ROS, % R&D % sales ROI, % EBITDA 948(5) Capex297(6) 2002

FFNEY Pharma – a challenging year (2)  Autonomous growth 6% - negative currency impact 4%  Cost-cutting programs – affecting 800 jobs  Organon –Remeron ® patent case U.S. lost –new products – delay / slow take-off  Intervet – under pressure  Diosynth – strong performance 2002

FFNEY Coatings –strong performance EUR mln 2002 Δ% Sales5,521(1) EBIT4659 ROS, % ROI, % EBITDA6236 Capex131(28) 2002

FFNEY  Autonomous growth 3% – negative currency impact 3%  Restructurings – extended and accelerated  Continuous strengthening of portfolio  Significant working capital reduction  Decorative Coatings – benefiting from cost savings  Industrial activities – improving despite weak business climate  Marine & Protective – excellent performance Coatings –strong performance (2) 2002

FFNEY Chemicals –stable in difficult business conditions EUR mln 2002 Δ% Sales4,598– EBIT3441 ROS, % ROI, % EBITDA672(1) Capex248(20) 2002

FFNEY Chemicals –stable in difficult business conditions (2)  Autonomous growth 2% – negative currency impact 3%  Restructurings – extended  Further portfolio strengthening  Catalysts – great year  Salt and Base Chemicals – solid performance  Pulp & Paper, Surface, Polymer Chemicals – fierce competition  Agreement on termination of regular chlorine transport in Netherlands 2002

FFNEY Moderate net nonrecurring charge In EUR mln Restructuring and impairment(236) Divestment gains91 Others7 Gross(138) Taxes64 Total(74)  Restructurings at all groups – impacting 1,500 jobs  500 jobs at Pharma – not included  Divestment Rosemont U.K. 2002

FFNEY ProgramsNew TotalRealized /2003programso far Pharma Coatings2, ,5001,400 Chemicals1, , Akzo Nobel3,5002,0005,5002,200 Number of employees – restructurings expanded 2002

FFNEY Balance sheet – debt down EUR 0.8 bln EUR bln 2002  2001 Noncurrent assets Working capital 2.6 (0.5) 9.9 (0.2) Equity2.2(0.8) Provisions Net interest-bearing debt 3.3 (0.8) 9.9(0.2) 2002

FFNEY Outlook 2003 Net income* significantly below 2002  Pensions costs – EUR 130 mln higher  Strong negative currency impact  Generic competition Remeron ® in U.S. * Excluding extraordinary and nonrecurring items. 2003

FFNEY Determined to deliver  Focus on Customers, Costs and Cash  Debt reduction program continued  Capex – at 2002 level  Group priorities – Pharma – protect margins; prepare for growth – Coatings – growth and margins up – Chemicals – focus on cost and cash 2003