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AKZO NOBEL N.V.
Place de cotation: AMSTERDAM STOCK EXCHANGE    EURONEXT BRUSSELS  PARIS

Akzo Nobel is active in three business areas: Pharma, Coatings and Chemicals. 
Headquartered in the Netherlands, the company has activities in more than 80 countries and employs approximately 64,500 people.Our Pharma group manufactures products for both the human and animal healthcare markets.Products developed by the Pharma businesses include oral contraceptives, antidepressants, infertility treatments and veterinary vaccines.We are the world’s leading coatings company. The brands we manufacture include Sikkens®, International®, Crown® and Interpon®. 
Our coatings products were used on London’s Millennium Wheel, La Scala Opera House in Milan, the Öresund Bridge between Denmark and Sweden and Stadium Australia in Sydney. Akzo Nobel is also one of the world’s leading chemicals producers. We are the world’s leading salt specialists and produce chemicals found in everyday items such as ice cream, toothpaste, bakery goods, cosmetics, plastics and glass.

Akzo Nobel, dont le siège social est situé aux Pays-Bas, fournit à ses clients du monde entier des produits de santé, des peintures et des produits chimiques. L'effectif actuel d'Akzo Nobel compte environ 67.000 personnes réparties dans près de 80 pays.
En 2001, son chiffre d'affaires consolidé s'est élevé à 14 milliards d'Euros (USD 13 milliards, GBP 8,5 milliards).Les différentes activités sont menées par des unités d'exploitation, placées sous l'autorité directe du Conseil de Direction.Dans plusieurs pays, des organisations nationales ou des bureaux de représentation coordonnent les activités locales



Organon – continued strong growth, increasing pipeline and marketing expenditures 
Intervet – record quarterly sales, steady profitable growth 
Coatings – excellent growth, sharp EBIT margin increase 
Chemicals – strong start to the year, progress on divestments 
Strong financial position 
Arnhem, the Netherlands, April 20, 2006 – Akzo Nobel (Euronext Amsterdam: AKZ; Nasdaq: AKZOY) today reported substantially higher revenues and operational earnings for the first quarter of 2006, driven by a strong start to the year in all businesses, particularly Coatings. 
Net income was down 13% to EUR 249 million compared with the same period last year due to incidentals. Excluding incidentals, net income rose 39% from EUR 155 million to EUR 215 million.
Commenting on the company’s performance, CFO Rob Frohn said: “Our first quarter performance was very strong as we continued to deliver on growth. All units contributed to the 12% increase in revenues, with continued top line growth at Organon, record sales at Intervet, excellent Coatings volumes and a strong start to the year at Chemicals.” 
He added that operational earnings excluding incidentals grew 21%, driven by strong margin recovery at Coatings and a robust profit performance at Intervet and Chemicals. Organon’s operating income, excluding incidentals, was slightly lower due to significantly increased pipeline and marketing expenditures to support future growth. 
“Coatings performed particularly well during the quarter with the industrial activities achieving substantial earnings growth and considerably improved margins,” continued Frohn. “In April we announced an offer for Sico Inc, Canada's leading coatings company, to further strengthen our global leadership in Coatings.
“Chemicals earnings improved in spite of increasing energy prices. Coupled with Intervet’s record quarterly performance and continued strong growth at Organon, it’s been a great start to the year. Assuming current economic conditions continue, I expect this positive trend will be maintained.”
First quarter revenues for 2006 increased 12% to EUR 3.4 billion, on autonomous growth of 8% and 4% favorable currency effects. Operating income excluding incidentals increased 21% to EUR 332 million, representing a 9.8% margin compared with 9.0% in the same period last year. Both operating income (EUR 375 million, down 11%) and net income (EUR 249 million, down 13%) including incidentals were below the first quarter last year, as net incidentals gains were lower. 
These incidentals – restructuring and impairment charges (EUR 42 million), costs relating to environmental and antitrust cases (EUR 43 million), and divestment gains (EUR 128 million) – resulted in a net gain of EUR 43 million in this quarter. This figure compares with a EUR 145 million net gain in Q1 2005, resulting mainly from the special benefit for the termination of the Risperdal® co-promotion. Earnings per share were EUR 0.87 compared with EUR 1.00 in the prior period.

Annual Results: 2005 Net Income Improves
Main highlights
Net income up at EUR 961 million Growth in all units—revenues from present operations up 6% Organon—returning to growth, investing in future product sales and pipeline Intervet—excellent growth Coatings—picked up in second half after challenging start Chemicals—strong performance following successful portfolio realignment Positive contribution from incidentals Dividend maintained—EUR 1.20
Arnhem, the Netherlands, February 7, 2006 — Akzo Nobel (Euronext Amsterdam: AKZ; NASDAQ: AKZOY) today reported net income of EUR 961 million for the full-year 2005, slightly ahead of the 2004 figure of EUR 945 million. Effective implementation of the company’s global strategy is driving growth in all units, with revenues from present operations up 6%.
Commenting on the company’s financial performance, CEO Hans Wijers said: “Our strategy is effectively overcoming challenges and driving positive developments throughout Akzo Nobel’s businesses. The company is in a strong financial position and we are well positioned for investments in growth.
“Organon achieved its major objective for 2005 with a return to topline growth, while Intervet had an excellent year as good revenue growth and lower costs contributed to a strong double-digit profit increase. After a tough start to the year, Coatings recovered well in the second half, boosted by successful price increases and rapid growth, particularly in the emerging markets. The benefits of the portfolio realignment at Chemicals were also clearly evident as our focused activities improved revenues and profits.”
The 2005 figures show that total EBIT for the year decreased 3% to EUR 1,486 million. The company’s R&D expenses were EUR 834 million, which is 6.4% of sales, up 2% from last year.
Organon—return to topline growth
Organon’s return to topline growth signaled an achievement of its major 2005 objective. The business ended 2005 with positive trends across most treatment areas driving a 3% increase in revenues to EUR 2,425 million for the year. Sales of contraceptive vaginal ring NuvaRing® grew autonomously 58% in 2005, while fertility treatment Puregon® /Follistim®  became Organon’s biggest selling product with sales rising 24% to EUR 355 million. Organon’s EBIT increased 51% to EUR 415 million, representing a 17.1% margin for the year. This included the receipt of major special benefits, partly offset by settlements and impairment charges. Organon’s fourth quarterly results were impacted by relatively high R&D and sales and marketing expenses. 
Intervet—excellent growth
Intervet produced strong results in 2005 with revenues increasing by 7% to EUR 1,094 million. The business’ performance was boosted by efficiency improvements in manufacturing, supply chain, and marketing, resulting in an EBIT of EUR 238 million, up 29% from 2004 and equivalent to an operating margin of 21.8%. Intervet expanded its strong market position in Europe, while in North America, sales were buoyed by new product introductions in the companion animal sector. Business is also growing in Asia, where large areas have been severely affected by outbreaks of avian influenza. 
The development of human influenza vaccines by biotech unit Nobilon, in cooperation with Intervet and Organon, is progressing on schedule.
Coatings—good recovery after challenging start
Coatings revenues grew by 6% in 2005 as the business achieved 5% average price increases for the year. Growth was mainly fueled by expansion in the emerging markets of Asia Pacific, Eastern Europe, and the Middle East. The company continued to improve its portfolio through selective acquisitions. Operating income declined 5% in 2005 to EUR 384 million, mainly due to steeply rising raw material prices and difficult economic conditions in mature markets, especially in Western Europe. These were offset in the second half of the year by price increases, cost measures, and growth initiatives. At the end of 2005, emerging markets represented 34% of worldwide sales.

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