AkzoNobel Expresses Confidence in Transformed Portfolio     

AkzoNobel operates from strong positions in diverse, highly attractive sectors with good growth potential. This is particularly evident in emerging markets, which now represent 35% of total revenue and 40% of total EBIT, according to Hans Wijers, CEO of AkzoNobel.
   AkzoNobel has an excellent geographic spread, holding leading positions with strong brands such as Dulux, Sikkens and Glidden. Dulux represents more than 25% of its total Decorative Paints revenue. In 2007, emerging markets accounted for 25% of total Decorative Paints revenue. By 2012, that number will have increased to 35%. The company has adopted a new brand strategy - driving towards fewer, stronger brands in the medium term - with an even stronger focus on the global approach to innovation.
   The Performance Coatings growth potential is high - notably in the emerging markets - with further opportunities being targeted through organic growth and active participation in industry consolidation. Close to 50% of the business is conducted in emerging markets, which provides a strong platform for organic growth.
   The Specialty Chemicals - investing in emerging markets such as Brazil and China will help to drive further growth - current projects account for more than Euro 300 million. Moving forward, the main focus will be on margin management through procurement, value pricing and further energy efficiency.
   Since 2007, AkzoNobel has embarked on share buy back programs totaling Euro 4.6 billion. By the end of September 2008, Euro 3.0 billion had been completed. With Euro 1.8 billion of it net debt due to mature in the next eight months - and given the current volatile situation in the global financial markets - the company has  decided to defer the remaining Euro 1.6 billion of the current program until the refinancing of the bonds has been completed.