Change

Condensed consolidated balance sheet

 

 

 

 

 

In € millions

 

2010

 

2011

Intangible assets

 

7,308

 

7,392

Property, plant and equipment

 

3,384

 

3,705

Other financial non-current assets

 

1,977

 

2,198

Total non-current assets

 

12,669

 

13,295

Inventories

 

1,678

 

1,924

Trade and other receivables

 

2,788

 

2,917

Cash and cash equivalents

 

2,851

 

1,635

Other current assets

 

108

 

98

Total current assets

 

7,425

 

6,574

Total assets

 

20,094

 

19,869

Shareholders’ equity

 

8,984

 

9,212

Non-controlling interests

 

525

 

531

Total equity

 

9,509

 

9,743

Provisions and deferred tax liabilities

 

2,444

 

2,284

Long-term borrowings

 

2,880

 

3,035

Total non-current liabilities

 

5,324

 

5,319

Short-term borrowings

 

907

 

494

Trade and other payables

 

3,305

 

3,349

Other short-term liabilities

 

1,049

 

964

Total current liabilities

 

5,261

 

4,807

Total equity and liabilities

 

20,094

 

19,869

Invested capital

Invested capital at year-end 2011 totaled €13.7 billion, €1.0 billion higher than at year-end 2010. Invested capital was impacted by the net effect of:

  • An increase of €0.2 billion by the acquisition of coatings manufacturer Schramm Holding AG early October, 2011
  • An increase of €0.3 billion of long-term receivables related to pension funds in asset position
  • An increase of operating working capital of €0.2 billion due to more expensive raw materials and actions to ensure supply of titanium dioxide. Expressed as a percentage of revenue, operating working capital was 14.4 percent (year-end 2010: 13.9 percent)
  • Payments of accrued interest of €0.2 billion, including €31 million accrued interest on bonds which were paid back in December 2011, with regular coupon dates in the first quarter

Operating working capital in € millions

Operating working capital (bar chart)

Net debt

Net debt increased from €936 million at year-end 2010 to €1,895 million at year-end 2011, mainly due to:

  • Operating cash inflow of €325 million
  • Capital expenditures of €708 million
  • Net cash outflow for acquisitions and divestments of €138 million
  • Payments of dividends of €362 million

In December, we bought back high interest bonds for a total nominal amount of €528 million and a total consideration of €633 million. This transaction resulted in a loss of €67 million. However, going forward this loss will be offset by the significantly reduced coupon on a new €800 million sevenyear bond launched in the same month. As a result, our maturity profile has improved, with hardly any debt maturing in 2012.

Shareholders’ equity

Shareholders’ equity at year-end 2011 increased to €9.2 billion, mainly due to the net effect of:

  • Net income of €477 million
  • Dividend payments of €304 million

Pensions

The funded status of the pension plans at year-end 2011 was estimated to be a deficit of €0.5 billion (year-end 2010: €1.0 billion). The movement compared with year-end 2010 is due to:

  • Top-up payments of €354 million into certain defined benefit pension plans
  • Lower discount rates increasing the pension obligation
  • Lower inflation in UK decreasing the pension obligation
  • Higher asset returns

In January 2012, we concluded the triennial actuarial funding review of the ICI Pension Fund. We expect to have top-up payments over the remaining six years of the recovery plan that are £198 million lower in total than the sum of the current schedule. In 2012 and 2013, they will be £62 million per annum lower and in the last four years £19 million per annum lower. In addition, we have agreed to terminate a contingent asset on our balance sheet in order to fund further de-risking activities and thereby reduce future demands on our cash flows.

Invested capital in € millions

Invested capital (bar chart)
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