Contents

• Company Information

• Review of the Directors

• Independent Auditors' Report on Review ofCondensed Interim Financial Information

• Condensed Interim Balance Sheet

• Condensed Interim Profit and Loss Account

• Condensed Interim Statement of Comprehensive Income

• Condensed Interim Statement of Changes in Equity

• Condensed Interim Cash Flow Statement

• Notes to the Condensed Interim Financial Information

Company Information

Board of DirectorsMueen Afzal Chairman (Non-Executive) James Thick Non-Executive

Jehanzeb Khan Chief Executive Peter Tomlinson Non-Executive

Bart Kaster Non-Executive Zia U Syed Executive

Asad I A Khan Non-Executive

Audit Sub Committee Human Resource & Remuneration Sub CommitteeAsad I A Khan Chairman (Non-Executive) Mueen Afzal Chairman (Non-Executive)

Mueen Afzal Non-Executive Peter Tomlinson Non-Executive

Bart Kaster Non-Executive Jehanzeb Khan Chief Executive

Share Transfer CommitteeJehanzeb Khan Chief Executive

Zia U Syed Chief Financial Officer

Saira Soofi Company Secretary

Chief Financial Officer Company SecretaryZia U Syed Saira Soofi

Executive Management TeamJehanzeb Khan Chief Executive Mohsin Raza Naqvi Business Manager - Performance Coatings

Rizwan Afzal Operations Manager and Specialty Chemicals

Shahid Sultan Butt Technical Manager (R&D) Imran Qureshi Business Manager - Decorative Business

Muddassir Khalid HR Business Partner Bashar Rasheed Supply Chain Manager

Fawad A A Mirza Business Excellence Manager Zia U Syed Chief Financial Officer

BankersCitibank N.A. Habib Metropolitan Bank LimitedDeutsche Bank Limited A.G United Bank Limited

Internal Auditors External AuditorsErnst & Young Ford Rhodes Sidat Hyder, KPMG Taseer Hadi & Co., Chartered Accountants Chartered Accountants

Registered Office Shares Registrar346, Ferozepur Road, FAMCO Associates (Pvt) LtdLahore - 54600 1st Floor, State Life Building 1-A,Tel: (042) 111-551-111 I. I. Chundrigar Road, Karachi - 74000Fax: (042) 35835011 Tel: (021) 32427012, 32426597, 32420755www.akzonobel.com/pk/paints Fax: (021) 32426752

Review of the Directors

For the quarter & six months ended 30 June 2013

The Directors are pleased to present their review together with the un-audited financial statements of the Company for the quarter and first six months ended 30 June 2013. Financial Performance Net sales income for the quarter and first six months were higher by 6% and 11% respectively on the back of higher volumes. Profit before tax for the quarter and half year were also higher than last year due higher sales, effective margin management and strict control over costs. Accordingly EPS for Q2 and H1 at Rs. 3.29 and Rs. 5.74 was significantly higher than same period last year.

For the quarter

ended 30 June 2013

For the six

months ended 30 June 2013

For the quarter

ended 30 June 2012

(Restated)*

For the six months ended

30 June 2012

(Restated)*

Turnover (Rs million) 2,002 3,735 1,873 3,347 Net Sales Income (Rs million) 1,493 2,775 1,405 2,510 Gross Profit (Rs million) 573 1,009 478 814 Operating Results (Rs million) 221 326 99 90 Profit Before Tax (Rs million) 319 501 152 210 Profit After Tax (Rs million) 153 267 82 119 Earnings Per Share (Rs) 3.29 5.74 1.76 2.57

*Restatement due to IAS19 (refer note 3 of condensed interim financial statements) Business Performance The decorative paint industry continued to show signs of recovery in the second quarter despite the prevailing poor law and order situation, power outages and sluggish GDP growth. The Company launched various promotional schemes to strengthen brand awareness which helped secure encouraging volumes. Market conditions remained slow in the tractors and commercial vehicles industry. However, the impact was mitigated through new business development in the Protective Coatings and Specialty Chemicals portfolio, customer engagement and stronger market coverage in the vehicle refinish paint industry. Future Outlook With the arrival of the monsoons and Ramadan, painting activity is expected to remain slow in the short term. However, the company plans to mitigate the impact through initiatives targeted towards the distribution channel as well as end consumers. The company will continue to commercialize products and technologies from its global portfolio, and aim to re-engage the packaging coatings industry through stronger service level support and line trials in the coming quarters.

The recent hike in sales tax rate from 16% to 17% will increase painting costs for most of our end users and accordingly will impact our future sale volumes negatively.

Mueen Afzal Jehanzeb Khan Chairman / Director Chief Executive