Note 2: Scope of consolidation

In 2014, Decorative Paints completed the divestment of the German stores. Specialty Chemicals announced the intended sale of its Paper Chemicals portfolio for €153 million. The transaction is expected to be completed in 2015, subject to regular consultation with employee representatives and satisfaction of closing conditions such as receipt of required regulatory clearances. This business is currently part of Pulp and Performance Chemicals and is accounted for as held for sale. Businesses that no longer qualify as held for sale have been reclassified to ongoing operations.

No acquisition in 2014, individually nor in total, was deemed material in respect of IFRS 3 disclosure requirements.

During 2013, we concluded the divestment of Building Adhesives in Decorative Paints and some smaller divestments, such as the Primary Amides and Purate businesses in Specialty Chemicals.

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. The net cash from operating activities in 2014 mainly relates to a settlement for a case following the divestment of Organon BioSciences in 2007.

Discontinued operations

 

 

 

 

 

In € millions

 

2013

 

2014

Revenue

 

281

 

Expenses

 

(294)

 

Results from operating activities

 

(13)

 

Income tax

 

7

 

Results from operating activities after tax

 

(6)

 

Gain on the divestment of Decorative Paints North America

 

138

 

Income tax on the sale

 

3

 

Deal result

 

141

 

Results related to discontinued operations in previous years

 

(36)

 

13

Tax related to discontinued operations in previous years

 

32

 

5

Profit for the period

 

131

 

18

Cash flows from discontinued operations

 

 

 

 

 

In € millions

 

2013

 

2014

Net cash from operating activities

 

(87)

 

(88)

Net cash from investing activities

 

762

 

Net cash from discontinued operations

 

675

 

(88)

Assets and liabilities held for sale

 

 

 

 

 

In € millions

 

2013

 

2014

Property, plant and equipment

 

50

 

23

Intangible assets

 

111

 

21

Other assets

 

42

 

22

Total assets

 

203

 

66

Total non-current liabilities

 

25

 

3

Total current liabilities

 

24

 

8

Total liabilities

 

49

 

11

Material subsidiaries

The Consolidated financial statements comprise the assets and liabilities of approximately 400 legal entities. We consider legal entities material when they represent, for at least two subsequent years, more than 5 percent of either revenue or operating income (before incidentals). Material subsidiaries included in the table are 100 percent owned and meet these criteria.

Material subsidiaries

 

 

 

Legal entity

 

Principal place of business/ country of corporation

Akzo Nobel Coatings Inc.

 

United States

Akzo Nobel Pulp and Performance Chemicals AB

 

Sweden

Akzo Nobel Industrial Chemicals B.V.

 

The Netherlands

Akzo Nobel Surface Chemistry LLC

 

United States

Akzo Nobel Ltda

 

Brazil