AKZA Akzo Nobel NV

October 2, 2018

Akzo Nobel N.V. (AKZA; AKZOY) has today announced shareholders will receive €5.5 billion, following completion of the sale of the Specialty Chemicals business. This is in addition to €1 billion advance proceeds distributed by a special cash dividend paid on December 7, 2017.

A total of €6.5 billion will have been distributed to shareholders, delivering on a commitment to return the vast majority of €7.5 billion net proceeds, from the separation of the Specialty Chemicals business.

The additional €5.5 billion proceeds will be distributed using a capital repayment and share consolidation of €2 billion, special cash dividend of €1 billion, and share buyback of €2.5 billion.

Thierry Vanlancker, CEO of AkzoNobel, said: "This is a clear sign we are delivering on our commitments and focused on creating value for all our stakeholders as a paints and coatings company.

"We consulted many shareholders and evaluated various options to determine an optimal and timely way to return the vast majority of net proceeds following the sale of the Specialty Chemicals business."

The capital repayment and share consolidation will be subject to shareholder approval at an Extraordinary General Meeting (EGM), to be held on November 13, 2018. The special cash dividend will be paid shortly after the capital repayment and share consolidation has been completed. The share buyback will commence following payment of the special cash dividend and likely be completed during the middle of 2020. Shares will be canceled following repurchase.

Remaining proceeds will be used for the repayment of debt, costs associated with the transformation, and bolt-on acquisitions. The ordinary dividend relevant for AkzoNobel as a focused paints and coatings company is €1.65 per share, as announced on April 19, 2017, and the dividend policy remains 'stable to rising'. AkzoNobel is committed to retain a strong investment grade credit rating.

This is a public announcement by Akzo Nobel N.V. pursuant to section 17 paragraph 1 of the European Market Abuse Regulation (596/2014).

About AkzoNobel
AkzoNobel has a passion for paint. We're experts in the proud craft of making paints and coatings, setting the standard in color and protection since 1792. Our world class portfolio of brands - including Dulux, International, Sikkens and Interpon - is trusted by customers around the globe. Headquartered in the Netherlands, we are active in over 150 countries and employ around 35,000 talented people who are passionate about delivering the high performance products and services our customers expect.

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Safe Harbor Statement
This press release contains statements which address such key issues such 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 our website: www.akzonobel.com.

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