FORM 6-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

April 24, 2007

Report of Foreign issuer

Pursuant to Rule 13a-16 or 15d-16 of
The Securities Exchange Act of 1934

(Commission file number) 0 - 017444

Akzo Nobel N.V.
(Translation of registrant’s name into English)

76, Velperweg, 6824 BM Arnhem, the Netherlands
(Address of principal executive offices)

SIGNATURES

Pursuant to the requirements of Section 12 of the Securities Exchange Act of
1934 the registrant has duly caused this report to be signed on its behalf of
the undersigned, thereto duly authorized.

Akzo Nobel N.V.

Name : R.J. Frohn Name : J.J.M. Derckx Title : Chief Financial Officer Title : Director ~~Corporate~~Financial ~~Control~~Reporting

Dated : ~~July~~April 2024, ~~2005~~2007

2 ~~The following exhibit is filed with this report Akzo Nobel~~ Report for the ~~second~~1st quarter of ~~2005~~2007 Highlights

Report for the 2nd quarter of 2005

Strong quarter for the new Akzo Nobel

•	6% autonomous growth for Coatings and Chemicals
•	Operational results increase 18%; EBITDA margin further improved to 12.3%
•	Coatings – higher EBITDA margin on 8% revenues growth
•	Chemicals – strong EBITDA margin maintained on 4% autonomous growth
•	Good quarter for Organon and Intervet
•	EUR 11 billion cash deal for Organon BioSciences announced
•	EUR 1.6 billion share buyback program commencing on May 3, 2007

Key figures
Millions of euros (EUR) or %		1st quarter
2nd quarter						Millions of euros (EUR)		January-June
		2007		2006		Δ%
2005		2004		%				2005		2004		%
Continuing operations (Coatings and
182		149		22		Net income		469		282		66
Chemicals) before incidentals:
0.64		0.52				- per share, in EUR		1.64		0.99
Revenues		2,501		2,472		1
						Revenues
EBITDA		307		279		10
603		582		4		Organon		1,179		1,173		1
EBITDA margin		12.3		11.3
277		255		9		Intervet		539		513		5
EBIT		219		185		18
1,502		1,403		7		Coatings		2,743		2,640		4
Net income from continuing
963		941		2		Chemicals, present operations		1,920		1,866		3
operations		133		113		18
9		(29	)			Intercompany revenues/other		14		(67	)
Net income from discontinued
3,354		3,152		6		Akzo Nobel, present operations		6,395		6,125		4
operations (Organon BioSciences)		111		102		9
		225				Chemicals, divested activities				433
Net income (attributable
		(14	)			Intercompany revenues				(26	)
to equity holders)		246		249		(1	)
3,354		3,363		–		Total		6,395		6,532		(2	)
Earnings per share, in EUR		0.86		0.87
						Operating income (EBIT)
Invested capital		8,296		8,060	1
87		79		10		Organon		323		147		120
Moving average ROI		13.7		13.3
60		40		50		Intervet		113		83		36
Net interest-bearing borrowings		955		1,090	1
140		149		(6	)	Coatings		202		233		(13	)
1 At December 31.
77		69		12		Chemicals, present operations		174		154		13
22						IAS 39 fair value adjustments		22
(45	)	(65	)			Other		(74	)	(105	)
341		272		25		Akzo Nobel, present operations		760		512		48
		19				Chemicals, divested activities				35
341		291		17		Total		760		547		39
10.2		8.7				EBIT margin, in %		11.9		8.4
						Number of employees		61,640		61,450	1
										63,950	2

Akzo ~~Net~~Nobel ~~income – up 22% on 6%~~3 ~~higher revenues~~

• Organon BioSciences –treated ~~revenues~~as ~~growth;~~discontinued ~~R&D~~operation On ~~expenses~~March ~~significantly~~12, up2007, •the ~~Intervet~~company announced –its ~~results~~intention ~~jump~~to ondivest ~~revenues~~Organon ~~growth~~BioSciences ~~and~~(OBS) ~~efficiency~~to ~~improvements~~Schering-Plough, following •their ~~Coatings~~EUR –11 ~~continued~~billion ~~pressure~~binding ~~from~~cash ~~raw~~offer. ~~materials~~As ~~and~~a ~~slower~~consequence, ~~growth~~ in ~~mature~~accordance with ~~markets~~IFRS •5, ~~Chemicals~~the –OBS ~~impacted~~activities byqualify ~~high~~as ~~energy~~so-called ~~prices~~discontinued ~~and~~operation. As ~~incidentals~~a •result, ~~Positive~~going ~~one-off~~forward ~~items~~no ofdepreciation ~~EUR~~or 29amortization ~~million~~is ~~(2004:~~recognized ~~EUR~~anymore for 71the ~~million~~OBS ~~negative)~~activities, •which ~~Strong~~increased ~~financial~~pre-tax ~~position~~results •by ~~Outlook~~EUR ~~unchanged~~5 million.

~~For~~The ~~the~~continuing ~~impact of~~operations ~~IFRS~~consist ~~and~~of ~~certain other changes in~~ the ~~Company’s~~Coatings ~~reporting see pages 18~~ and 19Chemicals ~~of this report~~activities.

1	At December 31.
2	At June 30.
3	Present operations.

Revenues – 6% autonomous growth
Revenues of EUR 2.5 billion were up 1% on last year. Autonomous growth was 6%. Volumes increased 3%, with Coatings as the main contributor. Average selling prices were 3% higher at both Coatings and Chemicals. Currency translation had a 3% negative effect in the quarter, mainly attributable to the weaker U.S. dollar and the Asian currencies. Acquisitions and divestments on balance had a 2% negative impact. Sico formed the main acquisition at Coatings. Divestments mainly related to the Chemicals divestment program. Total revenues of Akzo Nobel developed as follows:

predominantly the sale ~~Report~~of ~~for~~a Coatings plant near Barcelona, Spain. For further details see the ~~2nd~~table ~~quarter~~on ofpage ~~2005~~ 12.

C O N D E N S E D C O N S O L I D A T E D S T A T E M E N T O F I N C O M E
2nd quarter					Millions of euros	January-June
2005		2004		%		2005		2004		%
3,354		3,363		–	Revenues	6,395		6,532		(2	)
(3,042	)	(3,001	)		Operating costs	(5,809	)	(5,889	)
					One-off items:
24		9			- special benefits	173		53
22					- IAS 39 fair value adjustments	22
11		4			- results on divestments	13		4
(10	)	(23	)		- restructuring and impairment charges	(15	)	(69	)
(18	)	(61	)		- charges related to major legal, antitrust, and environmental cases	(19	)	(84	)
341		291		17	Operating income (EBIT)	760		547		39
(39	)	(40	)		Financing charges	(71	)	(78	)
302		251			Operating income less financing charges	689		469
(102	)	(87	)		Taxes	(207	)	(170	)
					Earnings of consolidated companies, after
200		164		22	taxes	482		299		61
(9	)	(4	)		Earnings from nonconsolidated companies	4		2
191		160			Earnings before minority interest	486		301
(9	)	(11	)		Minority interest	(17	)	(19	)
182		149		22	Net income	469		282		66
10.2		8.7			EBIT margin, in %	11.9		8.4
8.7		7.3			Interest coverage	10.7		7.0
					Net income per share, in EUR
0.64		0.52			- basic	1.64		0.99
0.63		0.52			- diluted	1.63		0.98
484		440		10	EBITDA	1,040		846		23
124		134			Capital expenditures	233		241
133		144			Depreciation	263		288

Net financing charges decreased from EUR 34 million to EUR 27 million, mainly due to higher cash and cash equivalents and lower short-term borrowings. Interest coverage in the first quarter was 7.9 (2006: 6.8).

2The share in profit of associates decreased from EUR 20 million to EUR 12 million in 2007. The 2006 number included incidental gains of EUR 6 million related to Acordis. Operational results of Flexsys were somewhat lower in the quarter.

~~Report~~ The income tax charge ~~for~~ in the ~~2nd~~first quarter of ~~2005~~2007 was 28%, compared with 29% in 2006, due to lower tax rates in certain countries, including the Netherlands.

Net income up ~~22% Net~~virtually ~~income in the second~~unchanged ~~quarter~~The ~~rose~~combination ~~22%~~of ~~to EUR 182 million. Net income per share was EUR 0.64 (2004:~~improved ~~EUR~~operational ~~0.52).~~earnings ~~Favorable business developments in Organon~~ and ~~Intervet~~lower asincidentals ~~well~~resulted ~~as one-off net gains boosted second quarter results. As announced earlier, R&D expenses at Organon were increased significantly~~ in ~~line~~1% ~~with~~lower ~~our~~net ~~pipeline~~income ~~requirements.~~of ~~Higher~~EUR ~~raw~~246 ~~material~~million, ~~and~~which ~~energy~~include ~~prices~~both atcontinuing ~~Coatings~~ and ~~Chemicals~~discontinued ~~continue to put pressure on margins, in spite of selling price increases~~operations. ~~Due to incidents,~~ ~~such~~Earnings asper ~~the~~share ~~strike~~were inEUR ~~the pulp & paper industry in Finland and a scheduled maintenance stop at Base Chemicals, operational performance of Chemicals was below last year~~0.86 As(2006: ~~a consequence of the new collective labor agreement reached with the Dutch unions, a pretax incidental charge of~~ EUR ~~25 million was included in this quarter, affecting all units~~0. 87).

For the first half of 2005, net income jumped 66% to EUR 469 million. This includes Organon’s EUR 149 million pretax special benefit from the termination of the Risperdal® copromotion.

In %	Total	Volume	Price	Currency translation		Acquisitions/divestments


Coatings	8	5	3	(4	)	4
Chemicals	1	1	3	(2	)	(1	)
Akzo Nobel	1	3	3	(3	)	(2	)¹

¹Included is the effect of the divestment of certain activities in Other.

~~Revenues –~~EBITDA ~~autonomous~~improved ~~growth of 4~~10% ~~Second-quarter~~ EBITDA ~~revenues~~before ofincidentals in the ~~present~~first ~~operations~~quarter amounted to EUR ~~3.4~~307 ~~billion~~million, up 610% on ~~last~~the ~~year.~~EUR ~~This was~~279 ~~mainly attributable to autonomous growth for all units. Organon and Intervet~~million ~~achieved~~ of ~~strong growth~~2006. ~~Price increases of 6% at~~ Coatings ~~caused~~was athe ~~slight~~main ~~volume decline~~contributor into ~~the~~this ~~mature markets~~increase. OnThis ~~the other hand, Coatings benefited from bolt-on~~translated ~~acquisitions,~~ into ~~particularly~~an ~~the~~EBITDA ~~German~~margin ~~distributor~~of ~~Timpe & Mock~~12.3% ~~Chemicals’ volumes~~(2006: ~~were flat, while selling prices were increased~~ 11.3%). OnAt ~~balance~~Chemicals, ~~currency translation~~the ~~played~~EBITDA amargin was ~~minor~~maintained ~~role~~at ~~in the quarter~~17. 9%.

~~Revenues~~Operational earnings ~~developed~~boost asof ~~follows:~~18% Before incidentals, operating income rose 18% from EUR 185 million to EUR 219 million. The EBIT margin was 8.8%, against 7.5% in the first quarter of 2006. Both Coatings and Chemicals realized strong autonomous growth and cost savings. Almost all activities did better than last year. Substantial further growth was achieved in the emerging markets, while most businesses in Europe also improved their performance.

In %	Total	Volume		Price	Currency translation		Acquisitions/ divestments
Organon	4	3		1	–
Intervet	9	6		2	1		–
Coatings	7	(2	)	6	–		3
Chemicals, present
operations	2	–		3	(1	)
Akzo Nobel	–	–		4	–		(4	)1

The improvement in EBIT reported as “Other” was caused by favorable IAS 39 fair value adjustments and better results of the captive insurance companies due to lower damages. Including incidentals, operating income decreased 9% to EUR 212 million, with an EBIT margin of 8.5% (2006: 9.4%). Incidentals in 2007 were a net loss of EUR 7 million, compared with a gain of EUR 47 million in the first quarter of 2006. The 2006 figure was positive due to sizable gains on divestments in that quarter,

1 ~~Includes~~Before ~~the~~incidentals, ~~effect~~net income ofrose ~~the~~13% ~~Chemicals~~from ~~businesses~~EUR ~~divested~~215 inmillion ~~2004~~to EUR 244 million. Net income breaks down as follows:

	Net income before
Millions of euros	incidentals		Net income

	2007	2006	2007	2006

Continuing operations	133	113	134	150
Discontinued operations	111	102	112	99

Akzo Nobel	244	215	246	249

Workforce ~~Report~~Akzo Nobel’s ~~for~~workforce at Coatings and Chemicals consisted of 42,880 employees, up compared with the ~~2nd~~42,690 ~~quarter~~employees at year-end 2006. The number of ~~2005~~employees at Organon BioSciences was 19,140.

~~Operating income~~Trading –conditions ~~up 17% Operating income of EUR 341 million was up 17% on last year. The EBIT margin was 10.2%, against 8.7%~~ in ~~the~~ ~~second quarter of 2004. Organon profited from higher sales. As announced~~2007 ~~earlier,~~Akzo ~~Organon~~Nobel ~~incurred~~is ~~significantly~~well ~~higher R&D expenses. Intervet achieved~~positioned ~~substantial~~for ~~earnings~~profitable ~~gains from volume~~ growth ~~and efficiency improvements~~. ~~Coatings and~~Assuming ~~Chemicals~~that ~~felt~~no ~~the~~significant ~~impact~~changes ~~from higher raw material and energy prices, while Chemicals was also affected by incidents, such as a scheduled maintenance stop at Base Chemicals and a strike of two months~~ in the ~~pulp~~major ~~& paper industry~~economies inof ~~Finland. Operating income in~~ the ~~second~~world ~~quarter of 2005 included a one-off net gain of EUR 29 million~~occur, ~~whereas~~Akzo ~~2004~~Nobel ~~second-quarter~~believes ~~earnings~~that ~~included~~it ~~a one-off~~is ~~net~~well ~~loss~~placed ~~of EUR 71 million. So on balance, one-off items had a positive effect of EUR 100 million, when compared~~ to ~~last~~outgrow ~~year. Excluding one-off items~~its markets and ~~divestments,~~further ~~operating~~improve ~~income declined EUR 31 million from EUR 343 million to EUR 312 million. This includes incidental effects of~~ the ~~new~~financial ~~collective~~returns ~~labor agreement reached with the Dutch unions, which resulted~~ in aCoatings ~~charge~~and ~~of EUR 25 million, affecting all units~~Chemicals.

Highlights ~~The~~1st ~~table~~quarter ~~below~~Report ~~gives~~for ~~an analysis of~~ the ~~change~~1st ~~in second~~ quarter ~~operating~~of ~~income compared to last year.~~ 2007

							Change from 2nd quarter of 2004
Millions of euros	EBIT for 2nd quarter of 2005		Total		Opera- tional perform- ance		New labor agree- ment Nether- lands		One-off items1	Divest- ments		Currency transla- tion	Lower pension charges
Organon	87		8		(9	)	(10	)	21	–		3	3
Intervet	60		20		15		(2	)	6	–		–	1
Coatings	140		(9	)	(12	)	(4	)	4	–		–	3
Chemicals,
present	77		8		(11	)	(6	)	22			–	3
Chemicals,
divested			(19	)						(19	)
IAS 39
adjustments	22		22						22
Other2	(45	)	20		(5	)	(3	)	25	–		–	3
Akzo Nobel	341		50		(22	)	(25	)	100	(19	)	3	13

4	Report for the 1st quarter of 2007

	Akzo Nobel Coatings – higher EBITDA margin on 8% revenues growth

1	One-off items are special benefits, restructuring and impairment charges, charges related to major legal, antitrust, and environmental cases, results on divestments, and IAS 39 fair value adjustments.
2	Other mainly comprises pension costs related to former employees of divested operations as well as the results of the (intermediate) holding companies, the captive insurance companies, Nobilon, and Nobilas.

•	Revenues up 8% – autonomous growth and acquisitions
•	Currency headwinds – 4% on revenues
•	Emerging markets drive growth; European businesses improving
•	EBITDA up 11%
•	Decorative Coatings – promising start to the year; volume growth and margin improvement
•	Continued raw material pressure – particularly at industrial businesses

Millions of euros or %	1st quarter

	2007		2006	¹	Δ%
Revenues
Decorative Coatings	549		474
Industrial activities	495		474
Marine & Protective Coatings	304		270
Car Refinishes	230		234
Intragroup revenues/other	(24	)	(18	)


Total	1,554		1,434		8

EBITDA before incidentals	153		138		11
EBITDA margin	9.8		9.6

EBIT before incidentals	117		104		13
EBIT margin	7.5		7.3


EBIT (operating income)	114		209		(45	)
EBIT margin	7.3		14.6

Capital expenditures	31		22

Invested capital	2,754		2,653	²
Moving average ROI	19.9		19.9

Number of employees	31,990		31,660	²

Report for the 2nd quarter of 2005

¹	2006 figures have been restated for minor changes in the business unit structure.
²	At December 31.

Results Coatings ~~IAS~~achieved 39a ~~fair value adjustments~~strong ~~concern~~ quarter ~~changes~~with inrevenues ~~the~~growth ~~fair value~~ of ~~certain~~8% ~~forward~~on ~~exchange~~last ~~contracts,~~year. ~~petroleum swaps,~~Autonomous ~~and~~growth ~~gas~~was ~~futures~~8%, thanks ~~for~~to ~~which~~5% ~~under~~higher ~~the~~volumes ~~IFRS-rules~~and no3% ~~hedge~~price ~~accounting is allowed~~increases. AsAcquisitions aadded ~~consequence~~4%, while the ~~changes~~currency inimpact ~~fair~~was ~~value~~4% ~~of these contracts had to be recognized in income directly~~negative.

InEBITDA ~~the~~before ~~second quarter of~~incidentals ~~2005,~~grew ~~pretax~~11% ~~charges~~to of EUR 18153 million, ~~were~~with ~~posted~~the ~~for~~EBITDA ~~environmental~~margin ~~risks~~improving ~~at derelict~~from ~~sites of companies acquired in the past~~9.6% ~~2004 earnings included charges of EUR 61 million, which mainly related~~ to ~~antitrust and Remeron®~~9.8%. ~~cases.1~~

~~Earnings~~Before ~~from~~incidentals, ~~nonconsolidated~~operating ~~companies~~income ongrew ~~balance~~13% ~~were~~to ~~a loss of~~ EUR 9117 million, ~~(2004: a~~with ~~loss~~an ofincreased ~~EUR~~EBIT 4margin ~~million). The operational performance~~ of ~~the~~7.5%. ~~nonconsolidated~~Various ~~companies~~restructuring onmeasures ~~balance~~implemented ~~improved~~in ~~slightly,~~recent asyears ~~higher~~improved ~~results~~our ofcost ~~Flexsys offset~~competitiveness ~~the~~in ~~loss~~mature ofmarkets, ~~earnings~~while ~~from~~price ~~the~~increases ~~divested~~across ~~Catalysts~~the ~~joint~~board ~~ventures.~~are ~~2005~~starting ~~and~~to ~~2004~~restore ~~earnings~~margins ~~include~~that ~~net~~were ~~one-off~~affected ~~losses~~by ofthe ~~EUR~~raw 21materials ~~million~~price ~~and~~hike ~~EUR~~that 15began ~~million,~~in ~~respectively, mainly related to certain guarantees for environmental costs (~~2005~~) and pensions (2004) granted to Acordis at the time of its divestment~~.1

~~New~~Decorative Coatings Decorative ~~pension~~Coatings ~~scheme~~had in a ~~the~~promising ~~Netherlands Akzo~~start ~~Nobel~~to ~~has~~the ~~reached~~year. ~~an agreement~~Double-digit ~~with~~revenues ~~the~~growth ~~unions~~was todriven ~~implement~~by acquisitions aand ~~defined~~higher ~~contribution~~volumes. ~~pension~~Sales ~~scheme~~ in ~~the~~Europe ~~Netherlands.~~were ~~Under~~strong ~~this~~due ~~new~~to ~~scheme~~the asoverall improved ~~from~~economic ~~July~~climate 1,and ~~2005,~~ the ~~Company will~~mild ~~pay~~winter aconditions. ~~fixed~~Sales ~~annual~~volumes ~~premium,~~at Building ~~which~~Adhesives iswere 20up 8%, ofwith ~~the~~growth ~~pension~~in ~~base~~all ~~salary~~regions. ~~As a~~There ~~consequence,~~is ~~fluctuations~~increased management infocus ~~pension~~on ~~liabilities~~the orturnaround ~~assets~~of ~~will~~underperforming noactivities. ~~longer~~Earnings ~~have~~ of anSico ~~influence~~(acquired onin ~~the~~May ~~Company’s~~2006) ~~balance~~are ~~sheet~~developing ~~and results~~favorably.

~~In order to give a good start to the new set-up,~~ Akzo Nobel will make a contribution of approximately EUR 150 million and provide a subordinated loan of EUR 100 million. In addition, the Company will prefinance employee premiums for an amount of EUR 50 million. 5

Industrial activities The ~~new~~industrial ~~pension~~activities continued ~~scheme~~to deliver a healthy performance, although the slowdown in the U.S. ishousing ~~subject~~industry affected parts of the business, including our supply to ~~approval~~Asia’s export byindustries. ~~union~~Western ~~members~~European-based businesses all had a good start to 2007, while in Asia and ~~the~~Eastern ~~relevant~~Europe ~~regulatory~~high ~~authorities.~~growth rates continued, driven by strong demand in commercial construction. The ~~full~~Plastic ~~accounting~~Coatings ~~consequences~~activity ~~will~~is begrowing rapidly ~~recognized~~due to the further penetration in the ~~fourth~~electronics markets. Powder Coatings improved top-line and bottom-line results compared to the first quarter of last ~~2005~~year on strong demand and cost reduction programs. Business was particularly good in Western Europe, where double-digit growth was realized in the mature markets due to increased industry demand. Sales were also strong in Asia Pacific. New plants in Russia and China were started up to serve local customers.

~~Outlook unchanged~~Marine We& ~~confirm~~Protective ~~our~~Coatings Marine ~~earlier~~& ~~expressed~~Protective Coatings ~~aspiration~~again toachieved ~~achieve~~double-digit revenues growth, as a ~~full-year~~result ~~net~~of ~~income~~the ~~within~~strong expansion in the ~~range~~Asia ofPacific ~~2004~~region (in particular China, ~~which~~India, and Singapore). Marine’s ~~was~~profits ~~approximately~~are ~~EUR~~still ~~800~~suffering ~~million~~from onraw anmaterial ~~IFRS~~price ~~basis~~pressure. ~~This~~Demand ~~outlook~~for ~~is based on~~protective ~~our~~coatings ~~current~~was ~~portfolio~~strong, ~~and~~both ~~excludes~~in ~~restructuring~~the onshore and ~~impairment~~offshore ~~charges,~~markets ~~charges~~in Asia Pacific. ~~related~~The topromising ~~major~~Intersleek® ~~legal,~~900 ~~antitrust~~product ~~and~~for ~~environmental~~protective ~~cases,~~applications was ~~results~~launched onin ~~divestments~~February. First orders have been placed, and deliveries will ~~and~~start in the ~~impact~~course of ~~the~~2007. ~~new~~At ~~pension~~Aerospace ~~scheme~~Coatings, inthere was solid demand from the ~~Netherlands.~~large manufacturers and a move into new territories by other manufacturers.

1 ~~Reference~~Car isRefinishes Car ~~made~~Refinishes toimproved EBIT margins as a result of the ~~disclosures~~cost onsaving ~~pages~~measures ~~100~~of recent years and ~~101~~positive volume developments. The flat top-line is the result of unfavorable U.S. dollar-related currencies. Strong focus on sales to major customers in Europe resulted in volume gains, while the ~~Akzo~~changeover ~~Nobel~~to ~~Annual~~waterborne ~~Report~~basecoats ~~2004~~continued. The North American commercial vehicle business was strong, while volume growth in China and India was above market rates. Our Sign Coatings activity is expanding into Asia.

5Case study Akzo Nobel’s Sikkens coatings brand has introduced Rubbol® XD, an innovative high gloss finish, which offers unprecedented outdoor durability.

Based on ~~Report~~a unique and patented binder technology, Rubbol XD is several years ahead of ~~for~~European ~~the~~legislation ~~2nd~~which ~~quarter~~will limit the use of ~~2005~~solvents from 2010 onward. Rubbol XD stands for eXtremely Durable. Although application and flow characteristics are comparable to Sikkens’ current top product—Rubbol SB—its aesthetic and durability characteristics are considerably better.

Organon – revenues growth; R&D expenses significantly up
2nd quarter			Millions of euros	January-June
2005	2004	%		2005	2004		%
603	582	4	Revenues	1,179	1,173		1
87	79	10	Operating income (EBIT)	323	147		120
14.4	13.6		EBIT margin, in %	27.4	12.5
32.7	33.8		S&D expenses as % of revenues	32.3	33.9
16.6	14.9		R&D expenses as % of revenues	16.4	15.9
118	107	10	EBITDA	384	206		86
19	24		Capital expenditures	34	52
			Invested capital	1,817	1,628	1
			Number of employees	14,180	14,090	1

The technical recoatability time of eight to ten years offers major benefits for both the painter and the customer. Buildings need to be recoated less frequently and look exceptional in the meantime.

1Akzo AtNobel ~~December~~Coatings ~~31.~~Report for the 1st quarter of 2007

•6 ~~Revenues~~Report –for ~~autonomous growth 4% • R&D expenses significantly up – investing in~~ the ~~pipeline~~1st •quarter ~~Asenapine~~of –2007 ~~R&D~~Akzo ~~milestone~~Nobel ~~achieved~~Chemicals ~~• Step-up in R&D collaborations~~ – ~~contracts~~strong ~~with~~EBITDA ~~Lexicon~~margin ~~and~~maintained ~~Théramex~~on •4% ~~NuvaRing®~~autonomous ~~– sales steadily increasing • Infertility products – renewed~~ growth

• Autonomous growth of 4%; negative currency impact of 2% • Operational result up 6%; margin management programs paying off • EBITDA margin of 17.9% • Raw materials and energy pressure successfully countered • Strong performance across all business areas

Report for the 2nd quarter of 2005

Millions of euros or %	1st quarter

	2007		2006	¹	Δ%
Revenues
Pulp & Paper Chemicals	245		247
Base Chemicals	225		240
Functional Chemicals	200		191
Surfactants	139		138
Polymer Chemicals	132		132
Intragroup revenues/other	(24	)	(36	)


Total	917		912		1

EBITDA before incidentals	164		163		1
EBITDA margin	17.9		17.9

EBIT before incidentals	115		108		6
EBIT margin	12.5		11.8

EBIT (operating income)	111		80		39
EBIT margin	12.1		8.8

Capital expenditures	50		40

Invested capital	1,959		1,960	²

Moving average ROI	18.3		17.9


Number of employees	9,180		9,300	²

Organon revenues showed 4% growth in the second quarter, after several quarters of decline. Volumes were up in most franchises, 3% in total, and prices increased 1%. Currency translation on balance had no impact. The main products developed as follows:

¹	2006 figures have been restated for minor changes in the business unit structure. In addition, the “activities (to be) divested” have now been included under Other at company level.
²	At December 31.

Millions of euros	Sales
		Autonomous growth, %
	2nd quarter
	2005	on Q-2 2004		on Q-1 2005
Contraceptives	140	6		4
–of which NuvaRing®	30	65		18
Puregon®/Follistim®	93	31		10
Remeron® outside U.S.	70	(12	)	6
Livial®	40	(3	)	12
Pharmaceutical ingredients	53	2		(2	)

Results
Revenues increased by 1% to EUR 917 million. Volume growth of 1% and 3% price increases were partially offset by a negative currency impact of 2% (primarily the U.S. dollar) and a 1% divestment effect.

~~Operating~~EBITDA ~~income grew 10% to EUR 87 million. The EBIT margin~~ was ~~14.4%~~virtually ~~(2004: 13.6%). The 2005 second-quarter~~unchanged ~~figure~~at ~~included special benefits of~~ EUR 18164 million ~~(2004:~~and ~~EUR 9 million), mainly reflecting~~ the ~~settlement~~EBITDA ofmargin ~~insurance~~was ~~claims~~maintained ~~for~~at ~~the West Orange site~~17. ~~One-off charges aggregated EUR 1 million, EUR 12 million less than last year, predominantly for the Remeron® cases. Organon's operational performance decreased EUR~~ 9 ~~million. Contributions from higher sales were more than offset by the substantial increase in R&D expenses, which in the second quarter were 16.6~~% ~~of revenues~~.

~~Organon~~Operating ~~announced~~income ~~the achievement~~before ofincidentals aamounted ~~development~~to ~~milestone~~EUR ~~for~~115 ~~asenapine~~mln, a6% ~~novel~~better ~~psychotherapeutic~~than ~~investigational drug~~in ~~for~~ the ~~treatment~~previous ~~of psychotic and mood disorders~~year. ~~On the basis of satisfactory~~The ~~results~~EBIT inmargin ~~the~~improved ~~companies'~~to ~~clinical trial program~~12.5%, ~~Pfizer~~as ~~now~~a ~~formally~~result ~~agreed to~~of ~~increase~~the ~~its~~focused ~~share~~margin ~~in Phase III development costs. The agreed future revenue~~management ~~sharing~~programs ~~will~~at ~~remain~~all ~~in place~~units. InThe ~~June,~~moving ~~Organon~~average ~~received~~ROI animproved ~~Action Letter~~ from ~~the~~ ~~FDA~~17.9% ~~for~~to ~~its implantable contraceptive, Implanon™, which maintained the “approvable” status~~18.3%.

~~Organon~~ ~~concluded~~Pulp ~~two~~& Paper ~~important~~Chemicals ~~new~~In RPulp &D ~~collaboration~~Paper Chemicals, ~~contracts~~autonomous ~~during~~growth of 1% from higher selling prices was offset by negative currency translation effects and the transfer of the U.S. hydrogen peroxides businesses to the OCI joint venture. Bleaching Chemicals margins are improving as selling price increases are being implemented, in particular in Europe and the Americas. Paper Chemicals achieved good volume growth in Asia. The favorable product mix and cost saving programs were the main contributors to the substantially improved operational performance in the first quarter: of 2007.

–	Organon and Lexicon Genetics will combine Organon’s expertise in clinical development, biologics manufacturing, and commercialization with Lexicon’s target discovery and biotherapeutics capabilities to accelerate the development of novel therapeutic antibodies and secreted proteins.
–	Merck KGaA affiliate Laboratoire Théramex granted worldwide development and marketing rights for its novel oral contraceptive EMM 310066, subject to approval from relevant authorities.

Akzo Nobel

7Base Chemicals Base Chemicals turned in a strong EBIT(DA) increase, mainly driven by Chlor Alkali (strong demand for chlorine and caustic) and Energy. Revenues were negatively affected (6%) by the outsourcing of technical services in Rotterdam and Delfzijl, the Netherlands. High production levels were achieved at both sites, with a record volume for Rotterdam in March. In Delfzijl, the new MCA plant is now fully operational. Road Salt’s earnings were lower than in the previous year, due to the very mild winter in Europe.

Functional ~~Report~~Chemicals ~~for~~Functional ~~the~~Chemicals ~~2nd~~had a good first quarter of ~~2005~~2007, with revenues growth of 5%. Margins were sustained with a good performance, particularly of Ethylene Amines and Salt Specialties, despite ongoing raw material price pressure. The 2006 production problems at Ethylene Amines were resolved. Chelates, Sulfur Products, and Cellulosic Specialties achieved increased margins on higher volumes and prices.

Intervet – results jump on revenues growth and efficiency improvements
2nd quarter			Millions of euros	January-June
2005	2004	%		2005	2004		%
277	255	9	Revenues	539	513		5
60	40	50	Operating income (EBIT)	113	83		36
21.7	15.7		EBIT margin, in %	21.0	16.2
24.2	24.3		S&D expenses as % of revenues	23.7	24.6
10.5	11.8		R&D expenses as % of revenues	10.6	11.7
74	51	45	EBITDA	140	106		32
12	11		Capital expenditures	25	23
			Invested capital	909	798	1
			Number of employees	5,270	5,270	1

Surfactants
Revenues of Surfactants were 1% higher than the previous year, despite a negative currency impact of 4%. A clear volume increase in China, the launch of our Feixiang Chemicals joint venture, and higher sales in agro and industrial applications (asphalt and mining) all contributed to growth. Our plants are running at high capacity utilization levels. Operating income was ahead of the first quarter of 2006 in spite of high raw material prices.

1 AtPolymer Chemicals Polymer ~~December~~Chemicals 31revenues were unchanged compared to the same period in the previous year. Autonomous growth of 4% was fully offset by the negative currency impact. Sales volumes improved on last year despite lower demand in the U.S. PVC market, driven by a weakening of the U.S. housing industry. Operating income was ahead of 2006 due to cost savings and margin management.

• ~~Revenues~~Divestment program The –divestment 8%program ~~autonomous~~started in ~~growth~~2005 inhas ~~virtually~~been ~~all~~completed ~~regions~~after ~~and~~the ~~franchises~~recent •announcements ~~EBIT~~of ~~margin~~the sale of 21the Akcros Chemicals PVC Additives business and of the European-based Methyl Amines and Chlorine Chloride (MACC) activities.7% •The ~~Benefiting~~sale ~~from~~of ~~efficiency~~Akzo ~~improvement~~Nobel’s 50%-stake in ~~manufacturing~~the •Flexsys ~~More~~joint ~~focus~~venture –is ~~feed~~expected ~~additives~~to ~~divestment~~be ~~announced~~concluded in the second quarter of 2007.

8Case study Akzo Nobel has invested nearly EUR 7 million to install a woodchip-fired boiler at its salt facility in Mariager, Denmark. The boiler will be able to supply around half of the facility’s demand for steam, which is needed to produce the salt.

~~Report~~ The boiler creates flexibility for the ~~2nd~~company ~~quarter~~in relation to the choice of ~~2005~~fuel, making us less dependent on natural gas, which is sold for very high prices at the moment.

~~Revenues of Intervet (animal~~Woodchips ~~healthcare~~ are ~~products) in the second quarter were up 9% to EUR 277 million. Autonomous growth was 8%, while currency translation had~~ a ~~positive~~cheaper ~~effect~~and ofmore ~~1%.~~sustainable ~~Intervet further expanded its strong market position in Europe, growing by 3%~~fuel. ~~The business~~Woodchips ~~benefited~~ are ~~from~~CO2-neutral ~~improved~~as ~~supply~~the ~~reliability~~emitted ofCO2 ~~biologicals,~~is ~~further~~balanced ~~introduction~~with ~~of Scalibor™ protector band (canine collar), and~~ the ~~launch~~growth of ~~Porcilis® M Hyo (pig vaccine) in France~~forests. ~~Sales~~Moreover in the ~~United~~woodchips ~~States~~are ~~also~~produced ~~grew~~through ~~substantially, driven by~~ the ~~reintroduction~~ process of ~~the~~forest ~~Prestige™~~maintenance; ~~line~~they ~~(equine~~are ~~vaccines)~~not ~~and high~~won ~~demand~~at in the ~~cattle~~expense ~~health~~of ~~activities. Boosted by substantial growth in Brazil and Chile (mainly fish vaccines), sales in Latin America rose 20%. Lower sales in~~ the ~~Asian region due to avian influenza were offset by strong sales gains in Oceania, Russia, and the Middle East~~environment.

Akzo ~~Intervet’s~~Nobel ~~operating income~~Chemicals ~~jumped~~Report ~~50%~~for ~~to EUR 60 million, attributable to~~ the ~~autonomous~~1st ~~revenues growth and efficiency improvements throughout the unit. The EBIT margin improved from 15.7% to 21.7%. It was Intervet’s best~~ quarter ~~in 3 years. Significant performance improvement was realized in manufacturing. Consolidation efforts and yield improvement programs are paying off and resulted in 3% lower cost~~ of goods when compared to the same period last year. The aim is to optimize production planning and logistical performance by improved management information systems, including the new ERP system, which is being rolled out in 2005 and early 2006. Earnings include a special benefit of EUR 6 million related to the settlement of a claim filed by Intervet. 2007

8 ~~Intervet~~Report ~~concluded~~for anthe ~~agreement to~~1st ~~divest~~quarter ~~some~~ of ~~its~~2007 ~~feed~~Consolidated ~~additives~~statement ~~activities to the Bulgarian company Biovet®. Scheduled to be finalized on July 31, the deal—which is subject to various corporate and governmental approvals—concerns the sale~~ of ~~Intervet’s Sacox®, Salocin®, Flavomycin®, Gainpro®, Hostazym®, and Stenorol® products.~~ income

Millions of euros	1st quarter

	2007		2006		Δ%
Continuing operations
Revenues	2,501		2,472		1
Cost of sales	(1,532	)	(1,560	)


Gross profit	969		912
Selling expenses	(549	)	(562	)
Research and development expenses	(71	)	(73	)
General and administrative expenses	(162	)	(160	)
Other operating income	25		115


Operating income (EBIT)	212		232		(9	)
Financing income	33		28
Financing expenses	(60	)	(62	)


Operating income less financing income and expenses	185		198
Share in profit of associates	12		20


Profit before tax	197		218
Income taxes	(55	)	(64	)

Profit for the period from continuing operations	142		154		(8	)

Discontinued operations (Organon BioSciences)
Profit for the period from discontinued operations	112		99


Profit for the period	254		253		–


Attributable to:
Equity holders of the company (net income)	246		249		(1	)
Minority interest	8		4

Profit for the period	254		253		–

Income per share, in EUR:
– basic	0.86		0.87
– diluted	0.85		0.87

Interest coverage	7.9		6.8

~~Report for~~Akzo ~~the~~Nobel ~~2nd~~9 ~~quarter~~Condensed ofconsolidated ~~2005~~ balance sheet

Coatings – continued pressure from raw materials and slower growth in mature markets
Millions of euros	March 31, 2007			Dec 31, 2006 pro forma		Dec 31, 2006
2nd quarter							Millions of euros	January-June
Property, plant and equipment	2,228			2,249		3,346
2005		2004			%			2005		2004		%
Intangible assets	529			536		682
							Revenues
Financial noncurrent assets	1,337			1,351		1,706
607		548					Decorative Coatings	1,049		980
Total noncurrent assets	4,094			4,136		5,734
432		409					Industrial activities	819		782
Inventories	1,220			1,190		2,042
252		227					Marine & Protective Coatings	478		446
Receivables	2,399			2,111		2,919
231		232					Car Refinishes	440		453
Cash and cash equivalents	1,904			1,871		1,871
(20	)	(13	)				Intragroup revenues/other	(43	)	(21	)
Assets held for sale	3,486			3,477		219
1,502		1,403			7		Total	2,743		2,640		4
Total current assets	9,009			8,649		7,051
140		149			(6	)	Operating income (EBIT)	202		233		(13	)
Total assets	13,103			12,785		12,785
9.3		10.6					EBIT margin, in %	7.4		8.8
Akzo Nobel N.V. shareholders’ equity	4,396			4,144		4,144
174		181			(4	)	EBITDA	268		296		(9	)
Minority interest	117			119		119
28		29					Capital expenditures	46		50
Total equity	4,513			4,263		4,263
							Invested capital	2,380		2,067	1
Provisions	1,856			1,910		2,132
							Number of employees	29,170		28,860	1
Deferred income						7
Deferred tax liabilities	153			149		174
Long-term borrowings	2,532			2,505		2,551
Total noncurrent liabilities	4,541			4,564		4,864
Short-term borrowings	327			304		410
Current payables	2,609			2,486		3,223
Liabilities held for sale	1,113			1,168		25
Total current liabilities	4,049			3,958		3,658
Total equity and liabilities	13,103			12,785		12,785
Shareholders’ equity per share, in EUR	15.28					14.44
Number of shares outstanding, in millions	287.7					287.0
Gearing	0.21					0.26
Invested capital	8,296					8,060

1 AtIn the December 31, 2006 pro forma column, Organon BioSciences has been treated as if it would qualify as discontinued operation as of that date.

•Consolidated ~~Autonomous~~statement ~~growth 4% – prices up 6%; volumes down 2% • Continued increases~~ of ~~raw~~income ~~material~~Condensed ~~prices~~consolidated –balance ~~particularly~~sheet inReport for the ~~industrial~~1st ~~businesses~~quarter ~~• Decorative Coatings – slow market conditions in Europe; rest~~ of world doing better • Industrial activities – coil and wood coatings in Europe under pressure • Car Refinishes – some signs of recovery; restructuring ongoing • Acquisition of Swiss Lack announced2007

10 ~~Note:~~Report ~~Nobilas,~~for ~~accident management~~the ~~services,~~1st ~~has~~quarter ~~been~~of ~~transferred~~2007 ~~from~~Condensed ~~Coatings~~consolidated tostatement ~~Other.~~of ~~The~~cash ~~2004 figures have been adjusted accordingly.~~ flows

Millions of euros			1st quarter

			2007				2006	¹
Profit for the period	254				253
Income discontinued operations	(112	)			(99	)
Adjustments to reconcile earnings to cash generated from operating activities:
Depreciation and amortization	88				94
Impairment losses	–				5
Financing income and expenses	27				34
Share in profit of associates	(12	)			(14	)
Income taxes	55				64

Operating profit before changes in working capital and provisions			300				337

Changes in working capital	(204	)			(241	)
Changes in provisions	(71	)			50
Other	(2	)			5

			(277	)			(186	)

Cash generated from operating activities			23				151

Interest paid	(12	)			(11	)
Income taxes paid	(68	)			(32	)
Pre-tax gain on divestments	8				(128	)

			(72	)			(171	)

Net cash from operating activities			(49	)			(20	)

Capital expenditures	(83	)			(66	)
Interest received	9				10
Repayments from associates	18				7
Dividends from associates	3				2
Acquisition of consolidated companies ²	–				(33	)
Proceeds from sale of interests²	29				95
Other changes in noncurrent assets	9				22

Net cash from investing activities			(15	)			37

Changes in borrowings	22				28
Issue of shares	35				5
Dividends	(8	)			(2	)

Net cash from financing activities			49				31


Net cash provided by/(used for) continuing operations			(15	)			48

Cash flows from discontinued operations
Net cash from operating activities	92				92
Net cash from investing activities	(48	)			(24	)
Net cash from financing activities	4				(12	)

			48				56

Net change in cash and cash equivalents of continued
and discontinued operations			33				104
Cash and cash equivalents at January 1			1,871				1,486
Effect of exchange rate changes on cash and cash equivalents			–				(6	)

Cash and cash equivalents at March 31			1,904				1,584

~~Report~~ 1 Reclassified for ~~the~~comparative ~~2nd~~purposes. ~~quarter~~ 2 Net of ~~2005~~ cash acquired or disposed of.

Akzo InNobel the second quarter, revenues of the Coatings activities continued to grow: 7% to EUR 1.5 billion. Prices were up 6%, but volumes were down 2%, mainly in Europe. Business in the emerging markets continued to grow. Acquisitions added 3% to revenues, predominantly related to the German distributor Timpe & Mock. 11

~~Earnings of all business~~Changes ~~units~~in are still under pressure from raw material prices, even though selling price increases of 6% were implemented across the board. This pressure is particularly felt by Industrial Finishes and Protective Coatings, for which solvents are important raw materials.equity

Operating income fell 6% to EUR 140 million. The EBIT margin was 9.3% (2004: 10.6%).

Millions of euros	Sub- scribed share capital	Additional paid-in capital	Change in fair value of derivatives		Cumulative translation reserves		Other (statutory) reserves and undistribu- ted profits	Share- holders’ equity		Minority interest		Total equity

Balance at December 31, 2005	572	1,803	22		142		876	3,415		161		3,576
Changes in fair value of derivatives			16					16				16
Changes in exchange rates in respect of subsidiaries, associates and joint ventures					(15	)		(15	)	(1	)	(16	)

Income/(expense) directly recognized in equity			16		(15	)		1		(1	)	–
Profit for the period							249	249		4		253
Total income/(expenses)			16		(15	)	249	250		3		253

Dividend paid										(2	)	(2	)
Equity-settled transactions							4	4				4
Issue of common shares	–	5						5				5
Changes in minority interest in subsidiaries										(10	)	(10	)

Balance at March 31, 2006	572	1,808	38		127		1,129	3,674		152		3,826

Balance at December 31, 2006	574	1,841	(2	)	30		1,701	4,144		119		4,263
Changes in fair value of derivatives			(5	)				(5	)			(5	)
Changes in exchange rates in respect of subsidiaries, associates and joint ventures					(29	)		(29	)	(1	)	(30	)

Income/(expenses) directly recognized in equity			(5	)	(29	)		(34	)	(1	)	(35	)
Profit for the period							246	246		8		254

Total income/(expenses)			(5	)	(29	)	246	212		7		219
Dividend paid										(8	)	(8	)
Equity-settled transactions							5	5				5
Issue of common shares	1	34						35				35
Changes in minority interests in subsidiaries										(1	)	(1	)

Balance at March 31, 2007	575	1,875	(7	)	1		1,952	4,396		117		4,513

Cash ~~Included~~position invirtually ~~2005~~unchanged ~~earnings are~~Cash ~~restructuring~~and ~~charges~~cash ofequivalents increased EUR 533 million ~~(2004:~~in the first quarter of 2007, compared with EUR 9104 million) in 2006. The ~~restructuring programs~~difference ~~continue~~was mainly attributable to ~~progress~~lower ~~well,~~proceeds ~~resulting~~from indivestments. aThe ~~workforce~~seasonal ~~reduction~~increase of ~~310~~ working capital was lower than in the first ~~half~~quarter of ~~2005.~~2006, Ineven taking into account revenues growth. ~~areas~~Capital expenditures amounted to EUR 83 million, ~~such~~up asEUR ~~Asia~~17 million on the 2006 first quarter level. Capital expenditures were 101% of depreciation (2006: 75%). Expenditures were up both at Coatings at Chemicals. Proceeds from the sale of interests both in 2007 and ~~Eastern~~2006 ~~Europe~~related to installment payments for the divestment of a Coatings plant near Barcelona, Spain (divested in 2006) and to the sale of several Chemicals activities under the divestment program initiated in 2005. Strong financial position Invested capital at March 31, 2007 amounted to EUR 8.3 billion, EUR 0.2 billion higher than at December 31, 2006, mainly due to the seasonal ~~influences~~increase ~~and~~of ~~acquisitions~~working capital, in particular at Coatings. Equity rose EUR 250 million, mainly as a result of first quarter income. During the ~~workforce~~first ~~expanded~~quarter of 2007, 647,649 stock options were exercised. These options were fulfilled by ~~620~~407,739 new common shares being issued and 239,910 common shares already held by the company. The company will start a share buyback program for EUR 1.6 billion on May 3, 2007. Subject to shareholder approval at the Annual General Meeting of Shareholders on April 25, 2007, these shares will be cancelled. The company’s strong financial position further improved with net interest-bearing borrowings dropping EUR 0.1 billion to EUR 1.0 billion. As a consequence, gearing improved to 0.21 (December 31, 2006: 0.26).

Condensed ~~The~~consolidated ~~Decorative~~statement ~~Coatings activities~~of incash ~~Western~~flows ~~Europe~~Changes ~~were under pressure from weak economic circumstances. In other areas, especially~~ in ~~Turkey,~~equity ~~the~~Report ~~business~~for ~~is doing better. The industrial activities, notably~~ the ~~coil~~1st ~~and~~quarter ~~wood coatings activities in Europe, are under pressure. The aerospace coatings activities did better. Car Refinishes, which is implementing a major worldwide restructuring, is showing signs~~ of ~~recovery.~~ 2007

12 ~~Capital~~Report expenditures of EUR 28 million (88% of depreciation) were slightly down from the previous year’s level. Expenditures are especially directed toward participation in the booming growth in Asia. Firmly established as a key strategic market, China is important for ~~future growth. Recently~~ the ~~Company~~1st ~~opened~~quarter aof ~~new~~2007 ~~decorative~~Information ~~coatings~~on ~~facility in~~segments ~~Suzhou~~and ~~near Shanghai. Akzo Nobel also opened a new factory in Vietnam for decorative coatings.~~ incidentals

Decorative Coatings has signed an agreement to acquire Swiss Lack, Switzerland’s leading paint company with annual sales of EUR 45 million. The deal is expected to be completed by the end of 2005.

Millions of euros or %	1st quarter

	2007		2006	¹	Δ%
Revenues
Coatings	1,554		1,434		8
Chemicals	917		912		1
Other/eliminations	30		126

Total	2,501		2,472		1


EBITDA before incidentals
Coatings	153		138		11
Chemicals	164		163		1
Other	(10	)	(22	)

Total	307		279		10


EBITDA margin	12.3		11.3

EBIT (operating income) before incidentals
Coatings	117		104		13
Chemicals	115		108		6
Other	(13	)	(27	)

Total	219		185		18


EBIT margin	8.8		7.5

EBIT (operating income)
Coatings	114		209		(45	)
Chemicals	111		80		39
Other	(13	)	(57	)

Total	212		232		(9	)

EBIT margin	8.5		9.4


Incidentals
Results on divestments	(3	)	128
Restructuring and impairment charges	(4	)	(38	)
Charges related to major legal, antitrust, and environmental cases			(43	)

Total incidentals	(7	)	47

111 The figures for 2006 have been restated because Chemicals’ “activities (to be) divested” have now been included under Other at company level.

~~Report for~~Akzo ~~the~~Nobel ~~2nd~~13 ~~quarter~~Information ofon ~~2005~~ discontinued operations – Organon BioSciences

Chemicals – impacted by high energy prices and incidentals
Millions of euros or %			Organon						Intervet			Organon BioSciences
2nd quarter						Millions of euros		January-June
	2007		2006		Δ%		2007		2006		Δ%		2007	2006		Δ%
2005		2004		%				2005		2004		%
Revenues	626		644		(3	)	300		282		6		920	920		–
						Revenues
EBIT before incidentals	84		84		–		65		58		12		147	142		4
211		213				Pulp & Paper Chemicals		420		422
EBIT margin	13.4		13.0				21.7		20.6				16.0	15.4
183		172				Functional Chemicals		354		341
EBIT (Operating income)	87		80		9		64		58		10		149	138		8
179		178				Base Chemicals		396		363
EBIT margin	13.9		12.6				21.3		20.6				16.2	15.0
135		142				Surfactants		260		277
S&D expenses as % of revenues	32.4		31.9				22.9		24.1				29.6	29.7
116		110				Polymer Chemicals		227		218
R&D expenses as % of revenues	18.2		19.2				9.3		9.6				15.4	16.5
177		164				Activities to be divested		347		322
Capital expenditures	26		16				11		8				37	24
(38	)	(38	)			Intragroup revenues/other		(84	)	(77	)
Invested capital	1,576		1,579	1			967		949	1			2,599	2,556	1
963		941		2		Total		1,920		1,866		3
Number of employees	13,650		13,760	1			5,420		5,370	1			19,140	19,190	1
77		69		12		Operating income (EBIT)		174		154		13
8.0		7.3				EBIT margin, in %		9.1		8.3
137		135		1		EBITDA		294		280		5
64		61				Capital expenditures		126		102
						Invested capital		2,339		2,048	1
						Number of employees		11,700		11,890	1

The minor differences between the Organon BioSciences figures and the sum of the Organon and Intervet amounts relate to other activities and eliminations. The numbers of Organon include the Nobilon activity. 1 At December 31.

•On ~~Autonomous~~March ~~growth~~12, 2007, the company announced its intention to divest Organon BioSciences (OBS) to Schering-Plough, following their binding cash offer of EUR 11 billion. As a consequence, in accordance with IFRS 5, the OBS activities qualify as so-called discontinued operation. As a result, going forward no depreciation or amortization is recognized anymore for the OBS activities, which increased pre-tax results by EUR 5 million. Organon During the first quarter, Organon’s key products continued their strong performance shown throughout 2006, resulting in 4% autonomous growth. Our major products such as NuvaRing®, Puregon®, and Esmeron® contributed to this growth. However, with EUR 626 million, revenues were 3% –lower than in 2006. This was mainly ~~higher~~due ~~selling~~to ~~prices~~4% •negative ~~More~~currency ~~pressure~~translation ~~from~~effects ~~raw~~and ~~material~~the loss of Avinza® revenues that accounted for a 3% decline. Operating income before incidentals was unchanged at EUR 84 million. The effect of lower revenues and ~~energy~~increased ~~prices~~marketing expenditures in the United States were offset by lower R&D expenses and ~~slowing~~deprecation ~~economy~~and –amortization ~~affecting~~charges. ~~most~~As ~~units~~a •percentage ~~Base~~of ~~Chemicals~~revenues, –R&D ~~scheduled~~expenses ~~maintenance~~decreased ~~stop~~from 19.2% to 18.2% in the first quarter of 2007. For further details on the development of sales of Organon’s key products, see the Akzo Nobel website at ~~Rotterdam~~www.akzonobel.com/ ~~site~~investorrelations/financialfaq. •Intervet ~~Pulp~~First &quarter ~~Paper~~revenues ~~Chemicals~~of –Intervet ~~impacted~~grew 6% to a record EUR 300 million. Autonomous growth was 12%. Key driver was the business in Europe, where performance last year was hampered by the avian influenza. The companion animal business also achieved a ~~two-month~~very ~~strike~~strong performance, in particular through continued growth for Scalibor® (canine protector band). The North American activities turned in healthy autonomous growth, in spite of severe weather conditions in the ~~pulp~~Midwest. &However, ~~paper~~revenues ~~industry~~in that region were affected by the weaker U.S. dollar and divestments. Sales in ~~Finland~~the •other ~~Divestment~~regions ~~program~~of –the onworld ~~track~~were also affected by weaker currencies. In total, currencies had a 4% negative impact and divestments caused a 2% revenues reduction. Mainly as a result of the revenues growth achieved, operating income before incidentals increased by 12% to EUR 65 million. This translates into a healthy EBIT margin of 21.7%. Arnhem, April 24, 2007 The Board of Management

Information ~~Note:~~on ~~All~~segments ~~figures~~ and ~~comments~~incidentals ~~concern~~Information on the ~~present~~discontinued operations of– ~~Chemicals.~~Organon ~~The~~BioSciences ~~2004~~Report ~~revenues figures have been adjusted~~ for the ~~regrouping~~1st quarter of ~~activities within Chemicals.~~ 2007

1214 Report for the 1st quarter of 2007

Report for the 2nd quarter of 2005

Discontinued operations statement of income
Millions of euros	1st quarter

	2007		2006		Δ%

Revenues	920		920		–
Expenses	(774	)	(780	)


Profit before tax	146		140
Income taxes	(34	)	(41	)


Income from discontinued operations	112		99		13

Chemicals’ second-quarter revenues of EUR 963 million were 2% higher than last year. With more uncertain economic conditions in the various regions and markets, volumes were flat, while prices were up 3% from last year. Currency translation had a negative effect of 1%.

Assets and liabilities held for sale of Organon BioSciences
Millions of euros	March 31, 2007


Property, plant and equipment	1,093
Intangible assets	153
Financial noncurrent assets	361
Inventories	851
Receivables	814

Assets held for sale	3,272

Noncurrent liabilities	302
Short-term borrowings	106
Current payables	682

Liabilities held for sale	1,090

~~Operating income rose 12% to EUR 77 million. The EBIT margin was 8.0% (2004~~Note: ~~7.3%).~~Cash ~~2005~~and ~~earnings~~cash ~~include~~equivalents a reported ~~net~~for ~~one-off~~Organon ~~gain~~BioSciences ofare ~~EUR~~not 7included ~~million, consisting of the book profit on the divestment of the Company’s interest~~ in ~~Svensk~~assets ~~Ethanolkemie,~~held ~~partially~~for ~~offset by restructuring~~sale ~~charges.~~ as ~~2004~~these ~~second-quarter~~will ~~earnings~~be ~~included~~settled ~~restructuring~~with ~~charges of EUR 15 million. The operational performance of~~ the ~~Chemicals~~purchase ~~activities~~price decreased EUR 11 million, mainly reflecting the impact from higher energy and raw material prices–affecting almost all businesses–and the results of several incidents. Base Chemicals was affected by a scheduled maintenance stop at the ~~Rotterdam~~ ~~site,~~closing ~~while Pulp & Paper felt the impact~~ of ~~a two-month strike in~~ the ~~pulp & paper industry in Finland~~deal.

~~Continued~~The ~~restructuring programs~~report ~~resulted~~for inthe a2nd quarter ~~workforce reduction~~ of ~~220~~2007 inwill ~~the~~be ~~first~~published ~~half~~on ofJuly ~~2005~~24, 2007.

~~Capital~~Notes ~~expenditures, including~~ ~~major~~The ~~projects~~data in ~~the~~this ~~Netherlands~~report ~~and Brazil, were EUR 64 million, which is~~are ~~110% of depreciation~~unaudited. ~~The new Brazilian pulp & paper unit came on stream in May.~~

~~Akzo~~This ~~Nobel~~interim ~~announced an~~financial ~~investment~~report ofis ~~EUR~~in 26compliance ~~million~~with inIAS ~~two~~34 ~~chemical~~– ~~businesses~~Interim inFinancial ~~Sweden:~~Reporting. ~~a further~~The ~~capacity~~same ~~increase~~accounting atpolicies ~~the~~and ~~expanding~~methods ~~ethylene~~of ~~amines~~computation ~~production~~have ~~facility~~been inapplied ~~Stenungsund~~as in ~~and~~ the ~~construction~~2006 offinancial statements, a ~~new~~copy ~~plant~~of inwhich ~~Skoghall~~can tobe ~~manufacture~~found ~~water~~on ~~treatment~~the company’s ~~chemicals.~~website www.akzonobel.com.

In February, the Company announced that it intends to divest certain activities, which represent a total of around EUR 700 million in revenues. The processes to realize these divestments are on track.

Report for the 2nd quarter of 2005

C O N D E N S E D C O N S O L I D A T E D S T A T E M E N T O F C A S H F L O W S
Millions of euros	January-June
	2005				2004
Earnings before minority interest	486				301
Depreciation and amortization	280				299
Cash flow	766				600
Changes in working capital	(639	)			(337	)
Impairments	2				30
Changes in provisions, deferred tax assets and
nonconsolidated companies	(84	)			(125	)
Other changes	(12	)			(1	)
Net cash provided by operations			33				167
Capital expenditures	(233	)			(241	)
Acquisitions	(28	)			(22	)
Proceeds from divestments	28				44
Repayments nonconsolidated companies	5				121
Other changes	(24	)			(1	)
Net cash used for investing activities			(252	)			(99	)
Dividends paid			(268	)			(270	)
Funds balance			(487	)			(202	)
Net cash generated by/(used for) financing
activities			41				(138	)
Effect of exchange rate changes on cash and
cash equivalents			30				6
Change in cash and cash equivalents			(416	)			(334	)

Report for the 2nd quarter of 2005

Operational cash flow lower due to higher working capital requirements The funds balance for the first half of 2005 was EUR 487 million negative (2004: EUR 202 million negative).

Cash flow from operations decreased from EUR 167 million to EUR 33 million in 2005. The proceeds from improved profitability were more than offset by the higher seasonal increase of working capital. The latter amongst other includes the effects of higher revenues in the second quarter, steeply increased raw material prices, taxes paid during the first half year, and the EUR 25 million receivable from Johnson & Johnson for the termination of the Risperdal® copromotion.

Capital expenditures were EUR 233 million (2004: EUR 241 million), which is 89% of depreciation.

Repayments from nonconsolidated companies in 2004 primarily stemmed from Acordis.

Net cash generated by financing activities in 2005 was the effect of the termination of a currency swap1, partially offset by redemption of short-term borrowings.

Workforce – down 560 due to restructurings At June 30, 2005, the Company had 61,640 employees, compared with 61,450 at year-end 2004 and 63,950 at June 30, 2004. Cost saving measures at Coatings and Chemicals caused a decrease of 560 in the first half of 2005. Growth of certain businesses, seasonal influences, and acquisitions and divestments on balance resulted in a workforce expansion of 750. Developments were as follows:

	June 30,			Other	December 31,
	2005	Restructurings		changes	2004
Organon	14,180			90	14,090
Intervet	5,270			–	5,270
Coatings	29,170	(310	)	620	28,860
Chemicals	11,700	(220	)	30	11,890
Other	1,320	(30	)	10	1,340
Akzo Nobel	61,640	(560	)	750	61,450

1 In January 2005, the Company terminated a currency swap contract whereby EUR 250 million floating-rate EURIBOR-related liabilities were swapped into USD 223 million LIBOR-related liabilities, generating EUR 78 million in cash proceeds. This swap was part of an interest rate currency swap whereby euro-denominated fixed rate liabilities were swapped into floating rate U.S. dollar-denominated liabilities.

Report for the 2nd quarter of 2005

C O N D E N S E D C O N S O L I D A T E D B A L A N C E S H E E T
		January 1,
		2005; incl.
	June 30,	IAS 32 and	December
Millions of euros	2005	39	31, 2004
Intangible assets	473	448	448
Property, plant and equipment	3,682	3,535	3,535
Deferred tax assets	754	778	784
Other financial noncurrent assets	824	883	624
Total noncurrent assets	5,733	5,644	5,391
Inventories	2,113	1,978	1,978
Receivables	3,380	2,791	2,761
Cash and cash equivalents	1,395	1,812	1,811
Total current assets	6,888	6,581	6,550
Total assets	12,621	12,225	11,941
Akzo Nobel N.V. shareholders' equity	3,006	2,638	2,626
Minority interest	152	140	140
Equity	3,158	2,778	2,766
Provisions	3,587	3,613	3,608
Deferred income	42	56	56
Long-term borrowings	3,055	2,983	2,694
Total noncurrent liabilities	6,684	6,652	6,358
Short-term borrowings	246	258	258
Current payables	2,533	2,537	2,559
Total current liabilities	2,779	2,795	2,817
Total equity and liabilities	12,621	12,225	11,941
Gearing	0.60	0.51	0.41
Invested capital	8,355	7,559	7,254
Shareholders’ equity per share, in EUR	10.52	9.23	9.19
Number of shares outstanding, in millions	285.8	285.8	285.8

Report for the 2nd quarter of 2005

C H A N G E S I N E Q U I T Y
Millions of euros	Share- holders’ equity		Minority interest		Equity
Balance at December 31, 2004	2,626		140		2,766
Adoption of IAS 32 and 39 for financial instruments	12				12
Income	469		17		486
Dividends	(257	)	(11	)	(268	)
Share-based payments	3				3
Fair value changes of forward exchange contracts designated for hedge accounting	(3	)			(3	)
Changes in exchange rates	156		13		169
Changes in minority interest in subsidiaries			(7	)	(7	)
Balance at June 30, 2005	3,006		152		3,158

Strong financial position Invested capital at June 30, 2005, amounted to EUR 8.4 billion, EUR 0.8 billion higher than at January 1, 2005, mainly due to the seasonal increase of working capital and positive currency translation effects.

Equity was up EUR 0.4 billion to EUR 3.2 billion because of first half-year retained income and positive currency translation effects. Net interest-bearing borrowings increased by EUR 0.5 billion, as a consequence of the seasonally negative funds balance. Gearing was 0.60 (January 1, 2005: 0.51). The Company remains in a strong financial position.

Arnhem, July 20, 2005 The Board of Management

Report for the 2nd quarter of 2005

Implementation of International Financial Reporting Standards This interim financial information has been prepared on the basis of the recognition and measurement requirements of IFRS as in June 2005. The 2004 comparative figures have been restated accordingly.

For the accounting policies applied see the document “Summary of Significant Accounting Policies,” which can be found on the Company’s website.

In summary, the impact of IFRS on the Company’s accounts is a decline in shareholders’ equity at December 31, 2004, of EUR 410 million. On balance, net income for the first half of 2004 increased 15%. All this is mainly attributable to the differences in the method of accounting under IFRS for pensions and other postretirement benefits, the recognition of deferred taxes on intercompany profit, the recognition of the payment received from Pfizer for the asenapine cooperation, the recognition of goodwill, and the recognition of restructuring provisions. For the most part, the changed accounting relates to timing of the recognition of assets, liabilities, and related results.

The reconciliation of shareholders’ equity at December 31, 2004, and of net income for the first half of 2004 is as follows:

Millions of euros	Shareholders’ equity at December 31, 2004		Net income for the 1st half year of 2004
Figure based on NL GAAP	3,036		245
Pensions and other postretirement benefits	(425	)	26
Deferred taxes on intercompany profit	33		(22	)
Termination of goodwill amortization	19		12
Pfizer payment	(45	)	11
Discounting of provisions	20		(9	)
Other long-term employee benefits	(8	)	–
Share-based payments	(10	)	–
Restructuring provisions	–		16
Other	6		3
Figure based on IFRS	2,626		282

Report for the 2nd quarter of 2005

In addition, until 2004, the Company separately reported so-called nonrecurring items. These related to income and expenses resulting from normal business operations, which, because of their size or nature, are disclosed separately for a better understanding of the underlying result for the period. IFRS does not allow this concept. Therefore, the Company will not report IFRS earnings figures excluding nonrecurring items on the face of the statement of income. However, for better insight into the Company’s earnings development, the most important elements of nonrecurring items will now be reported on separate lines within operating income in the statement of income.

The Company used to report royalty income under “Other results” in the statement of income. Under IFRS, royalty income is reclassified to “Revenues.” Also proceeds for certain services rendered by the Company, which used to be deducted from cost lines in the statement of income, have now been reclassified to “Revenues.”

IFRS as applied for the restated figures of 2004 do not include standards IAS 32 and 39 for financial instruments. The Company has opted for the transition provision of IFRS 1 to apply these standards as from January 1, 2005. The after-tax effect of the implementation of IAS 32 and 39 on January 1, 2005, on balance, is a credit to shareholders’ equity of EUR 12 million1. The balance sheet at January 1, 2005, including IAS 32 and 39, on page 16 provides more information on the effect of the adoption of these standards.

For a detailed explanation of the impact of IFRS on the Company’s financial statements see the report “IFRS-based reporting for 2004 & implementation of IAS 32 and 39,” which can be found on the Company’s website.

1 It should be noted that the impact of the adoption of IAS 32 and 39 has been determined to the best of our present knowledge. The recognition of financial instruments is a very complex matter. As a consequence, our views and position could be subject to change.

Report for the 2nd quarter of 2005

The report for the 3rd quarter of 2005 will be published on October 19, 2005.

Note The data in this report are unaudited.

Revenues consist of sales of goods and services, and royalty income.

Autonomous growth is defined as the change in revenues attributable to changed volumes and selling prices. It excludes currency, acquisition, and divestment effects.

~~Operational~~Incidentals ~~performance~~are isspecial ~~defined~~benefits, asresults ~~(the~~on ~~change~~divestments, ~~in)~~restructuring ~~operating~~and ~~income~~impairment ~~excluding effects from currency~~charges, ~~translation,~~and ~~divestments,~~charges ~~and~~related ~~changes~~to inmajor ~~pension~~legal, ~~charges~~antitrust, and ~~one-off~~environmental ~~items~~cases. Operating Inincome ~~this~~excluding ~~quarter~~incidentals itis ~~also~~one ~~excludes~~of ~~certain~~the ~~one-time~~key ~~effects~~figures ofmanagement ~~the~~uses ~~new~~to ~~collective~~assess ~~labor~~the ~~agreement~~company’s performance, as this figure better reflects the underlying trends in the ~~Netherlands.~~results of the activities.

~~One-off~~EBIT ~~items~~margin ~~are~~is ~~special~~operating ~~benefits,~~income ~~restructuring~~(EBIT) ~~and~~as ~~impairment~~percentage ~~charges,~~of ~~charges related to major legal, antitrust, and environmental cases, and results on divestments~~revenues.

~~EBIT~~EBITDA ~~margin, formerly called return on sales,~~ is ~~operating income (~~EBIT) ~~as percentage of~~before ~~revenues.~~depreciation and amortization.

~~Safe~~Invested Harbor Statement*capital ~~This~~is ~~report~~total ~~contains~~assets ~~statements which~~less ~~address~~cash ~~such key issues as Akzo Nobel’s growth strategy, future financial results, market positions, product development, pharmaceutical products in the pipeline,~~ and ~~product~~cash ~~approvals. Such statements~~equivalents, ~~including~~less ~~but~~current ~~not limited to the “Outlook,” should be carefully considered, and it should be understood that many factors could cause forecasted and actual results to differ from these statements~~liabilities. 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. These factors also include changes in regulations or interpretations related to the implementation and reporting under IFRS, decisions to apply a different option of presentation permitted by IFRS, and various other factors related to the implementation of IFRS, including the implementation of IAS 32 and 39 for financial instruments. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. For a more complete discussion of the risk factors affecting our business please see our Annual Report on Form 20-F filed with the United States Securities and Exchange Commission, a copy of which can be found on the Company’s website www.akzonobel.com.

Moving average ROI is EBIT before incidentals of the last four quarters divided by the average invested capital of those four quarters.

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 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, progress of drug development, clinical testing and regulatory approval, 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 Annual Report on Form 20-F filed with the United States Securities and Exchange Commission, a copy of which can be found on the company’s corporate website www.akzonobel.com. The 2006 Annual Report on Form 20-F will be available at the end of the second quarter of 2007.

* Pursuant to the U.S. Private Securities Litigation Reform Act 1995.

Additional Information The explanatory sheets used by the CFO during the press conference can be viewed on Akzo Nobel’s Internet site at: www.akzonobel.com/news/presentations.asp	Akzo Nobel N.V. Velperweg 76 P.O. Box 9300 6800 SB Arnhem The Netherlands
	Tel.	+ 31 26 366 4433
	Fax	+ 31 26 366 3250
	E-mail	ACC@akzonobel.com
	Internet	www.akzonobel.com

Akzo Nobel

Contact details

Akzo Nobel NV
Velperweg 76
P.O. Box 9300
6800 SB Arnhem, the Netherlands
Tel:	+31 26 366 4433
Fax:	+31 26 366 3250
Internet:	www.akzonobel.com

For more information:
The explanatory sheets used by the CFO during the press
conference can be viewed on Akzo Nobel’s corporate website
www.akzonobel.com.

Akzo Nobel Corporate Communications
Tel:	+31 26 366 2241
Fax:	+31 26 366 5850
E-mail:	info@akzonobel.com

Akzo Nobel Investor Relations
Tel:	+31 26 366 4317
Fax:	+31 26 366 5797
E-mail:	investor.relations@akzonobel.com


Financial calendar

Annual Meeting of Shareholders
April 25, 2007

Quotation ex 2006 final dividend
April 27, 2007

Start of the share buyback program
May 3, 2007

Payment of 2006 final dividend
May 7, 2007

Report for the 2nd quarter 2007
July 24, 2007

Report for the 3rd quarter 2007
October 23, 2007

Quotation ex 2007 interim dividend
October 24, 2007

Payment of 2007 interim dividend
October 31, 2007

	Contact details and financial calendar
	Report for the 1st quarter of 2007

16	Report for the 1st quarter of 2007

Key brands Akzo Nobel

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