Note D: Financial non-current assets
|
Subsidiaries |
|
|
|
|---|---|---|---|---|
In € millions |
Share in capital |
Loans |
Other non- current assets |
Total |
Balance at January 1, 2021 |
9,284 |
2,851 |
90 |
12,225 |
Investments/ |
41 |
— |
— |
41 |
Divestments/ |
(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 |
Impact IAS 29 Hyperinflation Türkiye |
16 |
— |
— |
16 |
Balance at January 1, 2022 |
10,491 |
1,932 |
90 |
12,513 |
Investments/ |
458 |
— |
2 |
460 |
Divestments/ |
(1,058) |
— |
— |
(1,058) |
Net income from subsidiaries |
440 |
— |
— |
440 |
Equity-settled transactions |
12 |
— |
— |
12 |
Cash flow hedges |
(3) |
— |
— |
(3) |
Loans granted |
— |
987 |
— |
987 |
Repayment of loans |
— |
(244) |
— |
(244) |
Changes in exchange rates |
(180) |
19 |
— |
(161) |
Post-retirement benefits |
(290) |
— |
— |
(290) |
Balance at December 31, 2022 |
9,870 |
2,694 |
92 |
12,656 |
Investments in subsidiaries are measured using the equity method of accounting.
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.
Due to an intra-group funding restructuring, several intercompany loans were transferred in 2021 from certain foreign subsidiaries to Akzo Nobel N.V..
Loans to subsidiaries that will mature in 2023 amounted to €262 million, an amount of €1,738 million will mature between 2024 and 2027 and an amount of €84 million after 2027. The remainder of the loans to subsidiaries has no fixed repayment schedule.
Other non-current assets include the subordinated loan granted to the Pension Fund APF in the Netherlands. Using a level 3 fair valuation method (discounted cash flow), a fair value of €93 million was determined for this loan. For information on valuation methods, see Note 27 of the Consolidated financial statements.