Note 2: Scope of consolidation

During 2013, the divestment of the Building Adhesives business was completed. In addition, we concluded smaller divestments, such as the Primary Amides and Purate businesses, and agreed to sell the German stores in Decorative Paints, with completion expected in 2014. No acquisition in 2013, individually nor in total, was deemed material in respect of IFRS 3 disclosure requirements.

In 2012, the acquisition of Boxing Oleochemicals in Specialty Chemicals and the divestment of Chemicals Pakistan were completed.

We have filed a list of subsidiaries, associated companies and joint ventures, drawn up in conformity with sections 379 and 414 of Book 2 of the Netherlands Civil Code, with the Trade Registry of Amsterdam.

Changes in scope of consolidation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of subsidiaries

 

2012

 

Europe

 

North America

 

Latin America

 

Asia Pacific

 

Other countries

 

2013

Consolidated companies as of January 1

 

435

 

224

 

22

 

29

 

103

 

18

 

396

First-time consolidations

 

9

 

4

 

 

 

 

2

 

6

Deconsolidations

 

(48)

 

(23)

 

(3)

 

(2)

 

(9)

 

 

(37)

Consolidated as of December 31

 

396

 

205

 

19

 

27

 

94

 

20

 

365

Balance sheet Decorative Paints North America at divestment date

 

 

 

In € millions

 

April 1, 2013

Intangible assets

 

375

Property, plant and equipment

 

188

Financial non-current assets

 

5

Inventories

 

189

Receivables

 

217

Non-current liabilities and provisions

 

(90)

Current liabilities

 

(188)

Net assets and liabilities

 

696

 

 

 

Cash received

 

791

Cash disposed of

 

(12)

Net cash inflow

 

779

Deal result divestment Decorative Paints North America

 

 

 

In € millions

 

2013

Net cash inflow

 

779

Net assets and liabilities

 

(696)

Liabilities assumed and costs allocated to the deal

 

(10)

Realization cumulative translation reserves

 

65

Tax on the divestment

 

3

Deal result

 

141

Discontinued operations

During 2013, the divestment of the North American Decorative Paints business was completed and resulted in €779 million net cash inflows and a transaction gain after tax of €141 million, both reported in discontinued operations.

Discontinued operations

 

 

 

 

 

In € millions

 

2012

 

2013

Revenue

 

1,190

 

281

Expenses

 

(1,255)

 

(294)

Impairment

 

(372)

 

Results from operating activities

 

(437)

 

(13)

Income tax

 

20

 

7

Results from operating activities after tax

 

(417)

 

(6)

 

 

 

 

 

Gain on the divestment of Decorative Paints North America

 

 

138

Income tax on the divestment

 

 

3

Deal result

 

 

141

 

 

 

 

 

Results related to discontinued operations in previous years

 

(16)

 

(36)

Tax related to discontinued operations in previous years

 

(3)

 

32

Profit for the period

 

(436)

 

131

Cash flows from discontinued operations

 

 

 

 

 

In € millions

 

2012

 

2013

Net cash from operating activities

 

(27)

 

(87)

Net cash from investing activities

 

(26)

 

762

Net cash from discontinued operations

 

(53)

 

675

Assets and liabilities held for sale

 

 

 

 

 

In € millions

 

2012

 

2013

Property, plant and equipment

 

187

 

50

Intangible assets

 

377

 

111

Other assets

 

357

 

42

Total assets

 

921

 

203

Total non-current liabilities

 

159

 

25

Total current liabilities

 

193

 

24

Total liabilities

 

352

 

49

At year-end 2013, we qualified certain businesses and assets as held for sale. At year-end 2012, assets held for sale related to Decorative Paints North America.