Report of the Supervisory Board

Reference is made to the Timeline of key events in 2017, which sets out key events for AkzoNobel in 2017. In the context of the extraordinary events it chronicles, the focus of the Supervisory Board for 2017 has been to consider the interests of all stakeholders in its decision making.

The Supervisory Board values its relationship with shareholders and all stakeholders, and takes its responsibility towards them very seriously. While the Enterprise Chamber and Amsterdam District Court denied measures requested by some shareholders in May and July 2017, the Supervisory Board recognized that relations with shareholders required improvement and took a range of measures designed to strengthen and maintain a constructive dialog.

Such measures included the creation of a Supervisory Board committee for shareholder relations, with David Mayhew and the team at JP Morgan Cazenove appointed as advisors. An Extraordinary General Meeting was convened on September 8, 2017, when further explanation was provided regarding AkzoNobel’s response to the unsolicited and non-binding proposals made by PPG earlier in the year.

In August 2017, following constructive dialog, an agreement was reached with Elliott Advisors (UK) Ltd. (Elliott), aimed at normalizing the relationship with Elliott. A further Extraordinary General Meeting was convened on November 30, 2017, to consider appointments to the Board of Management and Supervisory Board, and to obtain approval for the separation of the Specialty Chemicals business from AkzoNobel through a private sale or a legal demerger. In addition, an augmented schedule of roadshows and conferences contributed to improved relations with shareholders as the year progressed. Going forward, an enlarged program of analyst and investor webcasts and events has been announced which will continue to improve shareholder relations beyond 2017.

The Supervisory Board will continue to actively engage with shareholders and all stakeholders in AkzoNobel to achieve our goal of accelerating sustainable growth and value creation.