Note D: Financial non-current assets

Movements in non-current assets

 

Subsidiaries

 

 

In € millions

Share in capital

Loans*

Other non-current assets

Total

Balance at January 1, 2020

9,159

2,245

91

11,495

Investments/acquisitions/capital contributions

2

2

Divestments/capital repayments/dividends

(92)

(1)

(93)

Impairments

(2)

(2)

Net income from subsidiaries

536

536

Equity-settled transactions

10

10

Loans granted

469

469

Loans transferred

919

919

Repayment of loans

(775)

(775)

Changes in exchange rates

(390)

(7)

(397)

Post-retirement benefits

90

90

Acquisition of non-controlling interests

(29)

 

(29)

Balance at December 31, 2020

9,284

2,851

90

12,225

Investments/acquisitions/capital contributions

41

41

Divestments/capital repayments/dividends

(61)

(61)

Net income from subsidiaries

871

871

Equity-settled transactions

11

11

Loans granted

293

293

Loans transferred

29

29

Repayment of loans

(1,298)

(1,298)

Changes in exchange rates

337

57

394

Post-retirement benefits

(8)

(8)

Balance at December 31, 2021

10,475

1,932

90

12,497

*

Part of the loans to these companies has no fixed repayment schedule.

Investments in subsidiaries are measured using the equity method of accounting. Due to an intra-group funding restructuring, several intercompany loans were transferred in 2020 and 2021 from certain foreign subsidiaries to Akzo Nobel N.V. This intra-group funding restructuring has been finalized in 2021. Intercompany loans are priced at arm’s length, taking factors like the credit quality of AkzoNobel and the counterparty, country and currency risks into consideration. The fair value of the loans to subsidiaries approximates the book value.

Loans to subsidiaries that will mature in 2022 amounted to €202 million, and €1,481 million will mature between 2023 and 2026 and an amount of €74 million after 2026. The remainder of the loans to subsidiaries has no fixed repayment schedule.