Statement of the Board of Management

We have prepared the Report 2020 in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU, and the financial reporting requirements included in Part 9 of Book 2 of the Dutch Civil Code.

To the best of our knowledge:

• The financial statements in this Report 2020 give a true and fair view of the assets and liabilities; financial position and profit or loss of our company and the undertakings included in the consolidation taken as a whole
• The management report in this Report 2020 includes a fair review of the position at December 31, 2020, the development and performance during the financial year 2020 of AkzoNobel, and the undertakings included in the consolidation taken as a whole, and describes our principal risks

The Board of Management is responsible for the establishment and adequate functioning of a system of governance, risk management and internal controls within our company. Consequently, a broad range of processes and procedures has been implemented, designed to provide control by the Board of Management over the company’s operations.

These processes and procedures include measures regarding the general control environment, such as a Code of Conduct, policies and procedures and authority rules, as well as specific measures, such as a risk management system, a system of controls and a system of letters of financial representation by responsible management at various levels within our company.

All these processes and procedures are aimed at providing a reasonable level of assurance that we have identified and managed the significant risks of our company, and that we meet our operational and financial objectives in compliance with applicable laws and regulations. For a detailed description of the company’s internal risk management, please refer to the Risk management section.

With respect to supporting and monitoring of compliance with laws and regulations – including our Code of Conduct – an Integrity and Compliance Committee has been established. The Compliance function makes rules available through the Policy Portal, manages the online and face-to-face compliance training program, provides legal expert support and manages investigations related to our SpeakUp! corporate complaints procedure.

The Internal Control function maintains AkzoNobel’s Internal Control Framework, monitors the compliance and includes updates regarding the emergence of new risks. They support the annual review of the effectiveness of the system of governance, risk management and internal controls of the Board of Management. Internal Audit provides comfort to the Board of Management, as well as the Supervisory Board, that our system of risk management and internal controls – as designed and represented by management – are adequate and effective.

While we routinely work towards continuous improvement of our processes and procedures regarding financial reporting, the Board of Management is of the opinion that:

• The report provides sufficient insights into any failings in the effectiveness of the internal risk management and control systems
• These systems provide reasonable assurance that the financial reporting does not contain material inaccuracies
• Based on the current state of affairs, it is justified that the financial reporting is prepared on a going concern basis
• The report states those material risks and uncertainties that are relevant to the expectation of the company’s continuity for the period of 12 months after report preparation

For a detailed description of the risk management system and the principal risks identified, reference is made to the Risk management and Integrity and compliance management chapters in this section.

We have discussed the above opinion and conclusions with the Audit Committee, the Supervisory Board and the external auditor.

Amsterdam, February 16, 2021
The Board of Management
Thierry Vanlancker, CEO and Chairman of the Board of Management
Maarten de Vries, CFO and member of the Board of Management