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Note 20: Related party transactions


We purchased and sold goods and services to various related parties in which we hold a 50 percent or less equity interest (investment in associates and joint ventures). Such transactions were conducted at arm’s length with terms comparable to transactions with third parties. In 2012, a significant related party transaction was a €115 million gas supply (2011: €204 million) by the company to Delesto, a joint venture of AkzoNobel and Essent. Delesto transforms gas into steam and electricity. The steam is used in our production processes and the electricity is sold to the market.

We have contracts with several pension funds, for which the financial impact is also included in Note 14.

  • At year-end 2012, AkzoNobel had a loan to the Pension Fund APF in the Netherlands of €75 million (2011: €81 million)
  • In recognition of a funding deficit in the ICI Pension Fund in the UK, the company has agreed to make top-up contributions of £135 million (€165 million) in 2013, followed by payments of £178.5 million (€219 million) in each year from 2014 to 2017
  • In recognition of a funding deficit in the AkzoNobel (CPS) Pension Scheme in the UK, the company has agreed to make top-up contributions of £42 million (€51 million) in each year from 2013 to 2018. In addition, contributions of at least £25m (€31 million) will be paid each year from the escrow account (see Notes 9 and 14) until 2017 or the earlier date on which the escrow account is exhausted.
  • In recognition of a funding deficit in the ICI Specialty Chemicals Fund in the UK, the company has agreed to make a top-up contribution of £4 million in 2013
  • In recognition of a funding deficit in the JP McDougall Pension Scheme in the UK, the company has agreed to make top-up contributions of £2 million in each year from 2013 to 2020
  • In recognition of funding deficits at several pension plans in the US, the company has agreed to make top-up contributions of $25 million in 2013

During 2012, we considered the members of the Executive Committee and the Supervisory Board to be the key management personnel as defined in IAS 24 “Related parties”. For details on their remuneration, as well as on shares and options held by members of the Supervisory Board or Board of Management, see Note 21. In the ordinary course of business, we have transactions with various organizations with which certain of the members of the Supervisory Board or Executive Committee are associated, but no related party transactions were effected in 2012. Likewise, there have not been any transactions with members of the Supervisory Board or Executive Committee, any other senior management personnel or any family member of such persons. Also no loans have been extended to members of the Supervisory Board or Executive Committee, any other senior management personnel or any family member of such persons.

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