Change

Condensed consolidated balance sheet

 

 

 

 

 

In € millions

 

2011

 

2012

Intangible assets

 

7,392

 

4,454

Property, plant and equipment

 

3,705

 

3,739

Other financial non-current assets

 

2,198

 

2,763

Total non-current assets

 

13,295

 

10,956

Inventories

 

1,924

 

1,545

Trade and other receivables

 

2,937

 

2,698

Cash and cash equivalents

 

1,635

 

1,752

Other current assets

 

98

 

91

Assets held for sale

 

 

921

Total current assets

 

6,594

 

7,007

Total assets

 

19,889

 

17,963

Shareholders’ equity

 

9,212

 

6,892

Non-controlling interests

 

531

 

465

Group equity

 

9,743

 

7,357

Provisions and deferred tax liabilities

 

2,284

 

2,159

Long-term borrowings

 

3,035

 

3,388

Total non-current liabilities

 

5,319

 

5,547

Short-term borrowings

 

494

 

662

Trade and other payables

 

3,369

 

3,242

Other short-term liabilities

 

964

 

845

Liabilities held for sale

 

 

310

Total current liabilities

 

4,827

 

5,059

Total equity and liabilities

 

19,889

 

17,963

Invested capital

Invested capital at year-end 2012 totaled €11.0 billion, €1.6 billion lower than at year-end 2011. Invested capital was impacted by the net effect of:

  • A decrease of €2.1 billion due to a non-cash impairment charge for Decorative Paints assets
  • An increase of €0.6 billion of long-term receivables related to increases in pension funds in an asset position
  • Increased capital expenditures, which continued on previously announced projects, such as the two pulp mills in Brazil, the start of the new Decorative Paints plant in the UK and activities in China. We will prioritize our investments going forward given the uncertainties in the market and our focus on cash and return on investment. We therefore expect our 2013 capital expenditures to be below 2012
  • A decrease of operating working capital of €0.2 billion mainly due to improvements in capital management. Expressed as a percentage of revenue, operating working capital was 11.2 percent (year-end 2011: 13.2 percent)

Net debt

Net debt increased in 2012 to €2,298 million (2011: €1,895 million) as higher cash flows from operating activities were more than offset by higher capital expenditures. In 2013, we expect to receive the proceeds from the divestment of Decorative Paints North America, which will reduce our net debt.

Shareholders’ equity

Shareholders’ equity as at year-end 2012 decreased to €6.9 billion, mainly due to the net effect of the net loss of €2,169 million and dividend payments of €214 million.

Pensions

The funded status of the pension plans at year-end 2012 was estimated to be a deficit of €1.1 billion (year-end 2011: €0.5 billion). The movement compared with year-end 2011 is primarily due to:

  • Top-up payments of €355 million into certain UK and US defined benefit pension plans
  • A payment from a contingent asset structure of €239 million into the UK ICI Pension Fund
  • Plan asset returns ahead of expectation

Offset by:

  • Lower discount rates significantly increasing the pension obligation

The amended IAS 19 on pensions has become effective as of January 1, 2013. Implementation of this amendment will result in including the pension deficit in other comprehensive income in shareholders’ equity as of 2013. The impact is disclosed in Note 14 of our 2012 Financial statements.

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