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Invested and operating working capital


Invested capital

IN € MILLIONS

DECEMBER 31

DECEMBER 31

 

2010

2009

 

 

 

Trade receivables

2,101

1,762

Inventories

1,678

1,314

Trade payables

(1,763)

(1,385)

Operating working capital in business areas

2,016

1,691

 

 

 

Other working capital items

(1,203)

(957)

Non-current assets

12,669

12,645

Deferred tax liabilities

(589)

(574)

Less investments in associates and joint ventures

(175)

(175)

Discontinued operations

(898)

 

 

 

Invested capital

12,718

11,732


Invested capital at year-end 2010 totaled €12.7 billion, €1 billion higher than at year-end 2009. Invested capital was impacted by the following items:

  • Foreign currency effects on intangibles and property, plant and equipment, due to the weakening euro. In total, equity increased by €0.8 billion due to the currency translation impact.
  • An increase of €269 million of long-term receivables related to pension funds in an asset position.
  • Acquisitions, primarily the acquired powder coatings activities.
  • An increase of operating working capital due to currencies and increased business activities. Expressed as a percentage of revenue, operating working capital was 13.9 percent (year-end 2009: 13.7 percent).
  • Payments of accrued interest of €159 million in January 2010, being the first payment under bonds refinanced in late 2008 and the first half of 2009. The normalized cash outflow for these bonds is €148 million.

Operating working capital

IN € MILLIONS, % OF REVENUE

 

 

 

DECEMBER 31

 

2010

2009

 

 

 

 

 

Decorative Paints

651

14.3

532

13.0

Performance Coatings

714

14.4

594

14.6

Specialty Chemicals

651

12.9

565

13.4

 

 

 

 

 

Total

2,016

13.9

1,691

13.7

IN % OF REVENUE

AkzoNobel – Operating working capital (bar chart)
Copyright © 2011 Akzo Nobel N.V.