{
"documentInfo": {
"documentType": "https://xbrl.org/2021/xbrl-json",
"features": {
"xbrl:canonicalValues": true
},
"namespaces": {
"akzoy": "http://www.akzonobel.com/20221231",
"ifrs-full": "http://xbrl.ifrs.org/taxonomy/2021-03-24/ifrs-full",
"iso4217": "http://www.xbrl.org/2003/iso4217",
"scheme": "http://standards.iso.org/iso/17442",
"xbrl": "https://xbrl.org/2021",
"xbrli": "http://www.xbrl.org/2003/instance"
},
"taxonomy": [
"http://www.akzonobel.com/xbrl/2022/724500XYIJUGXAA5QD70-2022-12-31.xsd"
]
},
"facts": {
"f13211": {
"value": "9587000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Revenue",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13213": {
"value": "10846000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Revenue",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13217": {
"value": "5683000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CostOfSales",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13219": {
"value": "6923000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CostOfSales",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13222": {
"value": "3904000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:GrossProfit",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13224": {
"value": "3923000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:GrossProfit",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13228": {
"value": "2041000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:SellingAndDistributionExpenses",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13230": {
"value": "2308000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:SellingAndDistributionExpenses",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13234": {
"value": "582000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:GeneralAndAdministrativeExpense",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13236": {
"value": "649000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:GeneralAndAdministrativeExpense",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13240": {
"value": "230000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ResearchAndDevelopmentExpense",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13242": {
"value": "258000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ResearchAndDevelopmentExpense",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13246": {
"value": "67000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherGainsLosses",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13248": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherGainsLosses",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13250": {
"value": "2786000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OperatingExpenseExcludingCostOfSales",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13252": {
"value": "3215000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OperatingExpenseExcludingCostOfSales",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13255": {
"value": "1118000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossFromOperatingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13257": {
"value": "708000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossFromOperatingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13261": {
"value": "-39000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:FinanceIncomeCost",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13263": {
"value": "-124000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:FinanceIncomeCost",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13267": {
"value": "26000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ShareOfProfitLossOfAssociatesAndJointVenturesAccountedForUsingEquityMethod",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13269": {
"value": "18000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ShareOfProfitLossOfAssociatesAndJointVenturesAccountedForUsingEquityMethod",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13272": {
"value": "1105000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossBeforeTax",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13274": {
"value": "602000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossBeforeTax",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13278": {
"value": "246000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxExpenseContinuingOperations",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13280": {
"value": "214000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxExpenseContinuingOperations",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13284": {
"value": "859000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossFromContinuingOperations",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13286": {
"value": "388000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossFromContinuingOperations",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13291": {
"value": "6000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossFromDiscontinuedOperations",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13293": {
"value": "-10000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossFromDiscontinuedOperations",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13296": {
"value": "865000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13298": {
"value": "378000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13302": {
"value": "829000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossAttributableToOwnersOfParent",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13304": {
"value": "352000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossAttributableToOwnersOfParent",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13307": {
"value": "36000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossAttributableToNoncontrollingInterests",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13309": {
"value": "26000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossAttributableToNoncontrollingInterests",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13312": {
"value": "865000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13314": {
"value": "378000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13320": {
"value": "0.0445",
"decimals": 4,
"dimensions": {
"concept": "ifrs-full:BasicEarningsLossPerShareFromContinuingOperations",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR/xbrli:shares"
}
},
"f13322": {
"value": "0.0207",
"decimals": 4,
"dimensions": {
"concept": "ifrs-full:BasicEarningsLossPerShareFromContinuingOperations",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR/xbrli:shares"
}
},
"f13326": {
"value": "0.0443",
"decimals": 4,
"dimensions": {
"concept": "ifrs-full:DilutedEarningsLossPerShareFromContinuingOperations",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR/xbrli:shares"
}
},
"f13328": {
"value": "0.0206",
"decimals": 4,
"dimensions": {
"concept": "ifrs-full:DilutedEarningsLossPerShareFromContinuingOperations",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR/xbrli:shares"
}
},
"f13333": {
"value": "0.0003",
"decimals": 4,
"dimensions": {
"concept": "ifrs-full:BasicEarningsLossPerShareFromDiscontinuedOperations",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR/xbrli:shares"
}
},
"f13335": {
"value": "-0.0006",
"decimals": 4,
"dimensions": {
"concept": "ifrs-full:BasicEarningsLossPerShareFromDiscontinuedOperations",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR/xbrli:shares"
}
},
"f13339": {
"value": "0.0003",
"decimals": 4,
"dimensions": {
"concept": "ifrs-full:DilutedEarningsLossPerShareFromDiscontinuedOperations",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR/xbrli:shares"
}
},
"f13341": {
"value": "-0.0005",
"decimals": 4,
"dimensions": {
"concept": "ifrs-full:DilutedEarningsLossPerShareFromDiscontinuedOperations",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR/xbrli:shares"
}
},
"f13346": {
"value": "0.0448",
"decimals": 4,
"dimensions": {
"concept": "ifrs-full:BasicEarningsLossPerShare",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR/xbrli:shares"
}
},
"f13348": {
"value": "0.0201",
"decimals": 4,
"dimensions": {
"concept": "ifrs-full:BasicEarningsLossPerShare",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR/xbrli:shares"
}
},
"f13352": {
"value": "0.0446",
"decimals": 4,
"dimensions": {
"concept": "ifrs-full:DilutedEarningsLossPerShare",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR/xbrli:shares"
}
},
"f13354": {
"value": "0.0201",
"decimals": 4,
"dimensions": {
"concept": "ifrs-full:DilutedEarningsLossPerShare",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR/xbrli:shares"
}
},
"f13360": {
"value": "865000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13362": {
"value": "378000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13367": {
"value": "-13000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13369": {
"value": "-375000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13372": {
"value": "13000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToRemeasurementsOfDefinedBenefitPlansOfOtherComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13374": {
"value": "-86000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToRemeasurementsOfDefinedBenefitPlansOfOtherComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13377": {
"value": "-26000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13379": {
"value": "-289000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13384": {
"value": "373000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxExchangeDifferencesOnTranslation",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13386": {
"value": "-163000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxExchangeDifferencesOnTranslation",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13389": {
"value": "-19000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxCashFlowHedges",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13391": {
"value": "-15000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxCashFlowHedges",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13394": {
"value": "-6000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncomeThatWillBeReclassifiedToProfitOrLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13396": {
"value": "-2000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncomeThatWillBeReclassifiedToProfitOrLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13399": {
"value": "360000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeThatWillBeReclassifiedToProfitOrLossNetOfTax",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13401": {
"value": "-176000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherComprehensiveIncomeThatWillBeReclassifiedToProfitOrLossNetOfTax",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13404": {
"value": "-334000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:OtherComprehensiveExpense",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13406": {
"value": "465000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:OtherComprehensiveExpense",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13409": {
"value": "1199000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13411": {
"value": "-87000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13415": {
"value": "1164000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncomeAttributableToOwnersOfParent",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13417": {
"value": "-115000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncomeAttributableToOwnersOfParent",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13420": {
"value": "35000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncomeAttributableToNoncontrollingInterests",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13422": {
"value": "28000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncomeAttributableToNoncontrollingInterests",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13425": {
"value": "1199000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13427": {
"value": "-87000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13450": {
"value": "3690000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IntangibleAssetsAndGoodwill",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13452": {
"value": "4072000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IntangibleAssetsAndGoodwill",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13456": {
"value": "1800000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PropertyPlantAndEquipment",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13458": {
"value": "1968000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PropertyPlantAndEquipment",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13462": {
"value": "304000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:RightofuseAssets",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13464": {
"value": "291000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:RightofuseAssets",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13468": {
"value": "482000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DeferredTaxAssets",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13470": {
"value": "498000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DeferredTaxAssets",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13474": {
"value": "178000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:InvestmentsInSubsidiariesJointVenturesAndAssociates",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13476": {
"value": "193000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:InvestmentsInSubsidiariesJointVenturesAndAssociates",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13480": {
"value": "2076000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherNoncurrentFinancialAssets",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13482": {
"value": "1475000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherNoncurrentFinancialAssets",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13485": {
"value": "8530000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncurrentAssets",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13487": {
"value": "8497000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncurrentAssets",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13492": {
"value": "1650000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Inventories",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13494": {
"value": "1843000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Inventories",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13498": {
"value": "149000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentTaxAssetsCurrent",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13500": {
"value": "168000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentTaxAssetsCurrent",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13504": {
"value": "2339000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:TradeAndOtherCurrentReceivables",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13506": {
"value": "2447000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:TradeAndOtherCurrentReceivables",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13510": {
"value": "58000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:ShortTermInvestments",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13512": {
"value": "336000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:ShortTermInvestments",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13516": {
"value": "1152000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalents",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13518": {
"value": "1450000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalents",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13521": {
"value": "5348000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentAssets",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13523": {
"value": "6244000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentAssets",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13526": {
"value": "13878000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Assets",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13528": {
"value": "14741000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Assets",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13534": {
"value": "5425000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:EquityAttributableToOwnersOfParent",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13536": {
"value": "4333000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:EquityAttributableToOwnersOfParent",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13540": {
"value": "211000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncontrollingInterests",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13542": {
"value": "215000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncontrollingInterests",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13545": {
"value": "5636000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13547": {
"value": "4548000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13552": {
"value": "578000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncurrentProvisionsForEmployeeBenefits",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13554": {
"value": "387000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncurrentProvisionsForEmployeeBenefits",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13558": {
"value": "234000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherLongtermProvisions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13560": {
"value": "167000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherLongtermProvisions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13564": {
"value": "567000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DeferredTaxLiabilities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13566": {
"value": "561000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DeferredTaxLiabilities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13570": {
"value": "1994000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:LongtermBorrowings",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13572": {
"value": "3332000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:LongtermBorrowings",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13575": {
"value": "3373000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncurrentLiabilities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13577": {
"value": "4447000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:NoncurrentLiabilities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13582": {
"value": "1556000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ShorttermBorrowings",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13584": {
"value": "2543000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ShorttermBorrowings",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13588": {
"value": "216000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentTaxLiabilitiesCurrent",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13590": {
"value": "236000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentTaxLiabilitiesCurrent",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13594": {
"value": "2948000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:TradeAndOtherCurrentPayables",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13596": {
"value": "2801000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:TradeAndOtherCurrentPayables",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13600": {
"value": "149000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentProvisions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13602": {
"value": "166000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentProvisions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13605": {
"value": "4869000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentLiabilities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13607": {
"value": "5746000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CurrentLiabilities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13610": {
"value": "13878000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:EquityAndLiabilities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13612": {
"value": "14741000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:EquityAndLiabilities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13632": {
"value": "859000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossFromContinuingOperations",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13634": {
"value": "388000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLossFromContinuingOperations",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13639": {
"value": "351000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForDepreciationAndAmortisationExpense",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13641": {
"value": "368000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForDepreciationAndAmortisationExpense",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13645": {
"value": "3000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForImpairmentLossReversalOfImpairmentLossRecognisedInProfitOrLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13647": {
"value": "6000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForImpairmentLossReversalOfImpairmentLossRecognisedInProfitOrLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13651": {
"value": "-39000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForFinanceIncomeCost",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13653": {
"value": "-124000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForFinanceIncomeCost",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13657": {
"value": "26000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForUndistributedProfitsOfAssociates",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13659": {
"value": "18000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForUndistributedProfitsOfAssociates",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13663": {
"value": "14000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:AdjustmentsToAcquisitionsAndDivestments",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13665": {
"value": "21000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:AdjustmentsToAcquisitionsAndDivestments",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13669": {
"value": "246000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForIncomeTaxExpense",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13671": {
"value": "214000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:AdjustmentsForIncomeTaxExpense",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13675": {
"value": "405000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseInWorkingCapital",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13677": {
"value": "509000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseInWorkingCapital",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13681": {
"value": "-23000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:AdjustmentsForPensionPreFunding",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13683": {
"value": "-47000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:AdjustmentsForPensionPreFunding",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13687": {
"value": "55000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:ChangesInPostRetirementBenefitProvisions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13689": {
"value": "31000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:ChangesInPostRetirementBenefitProvisions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13693": {
"value": "94000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:AdjustmentsForChangesInOtherProvisions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13695": {
"value": "33000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:AdjustmentsForChangesInOtherProvisions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13698": {
"value": "77000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:InterestPaidClassifiedAsOperatingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13700": {
"value": "78000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:InterestPaidClassifiedAsOperatingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13703": {
"value": "222000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxesPaidRefundClassifiedAsOperatingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13705": {
"value": "224000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxesPaidRefundClassifiedAsOperatingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13708": {
"value": "-23000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherAdjustmentsToReconcileProfitLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13710": {
"value": "30000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherAdjustmentsToReconcileProfitLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13713": {
"value": "605000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInOperatingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13715": {
"value": "263000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInOperatingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13719": {
"value": "288000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfPropertyPlantAndEquipmentIntangibleAssetsOtherThanGoodwillInvestmentPropertyAndOtherNoncurrentAssets",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13721": {
"value": "292000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PurchaseOfPropertyPlantAndEquipmentIntangibleAssetsOtherThanGoodwillInvestmentPropertyAndOtherNoncurrentAssets",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13724": {
"value": "10000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:InterestReceivedClassifiedAsInvestingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13726": {
"value": "14000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:InterestReceivedClassifiedAsInvestingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13729": {
"value": "5000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:DividendsReceivedFromAssociatesAndJointVenturesClassifiedAsInvestingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13731": {
"value": "14000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:DividendsReceivedFromAssociatesAndJointVenturesClassifiedAsInvestingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13735": {
"value": "73000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashFlowsUsedInObtainingControlOfSubsidiariesOrOtherBusinessesClassifiedAsInvestingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13737": {
"value": "588000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashFlowsUsedInObtainingControlOfSubsidiariesOrOtherBusinessesClassifiedAsInvestingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13741": {
"value": "-56000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:InvestmentsInShortTermInvestmentsClassifiedAsInvestingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13743": {
"value": "-1361000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:InvestmentsInShortTermInvestmentsClassifiedAsInvestingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13747": {
"value": "-247000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:RepaymentsOfShortTermInvestmentsClassifiedAsInvestingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13749": {
"value": "-1084000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:RepaymentsOfShortTermInvestmentsClassifiedAsInvestingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13752": {
"value": "22000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProceedsFromDisposalsOfPropertyPlantAndEquipmentIntangibleAssetsOtherThanGoodwillInvestmentPropertyAndOtherNoncurrentAssets",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13754": {
"value": "36000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProceedsFromDisposalsOfPropertyPlantAndEquipmentIntangibleAssetsOtherThanGoodwillInvestmentPropertyAndOtherNoncurrentAssets",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13757": {
"value": "-1000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherInflowsOutflowsOfCashClassifiedAsInvestingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13759": {
"value": "-2000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:OtherInflowsOutflowsOfCashClassifiedAsInvestingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13762": {
"value": "-134000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInInvestingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13764": {
"value": "-1095000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInInvestingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13768": {
"value": "1143000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProceedsFromNoncurrentBorrowings",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13770": {
"value": "9511000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProceedsFromNoncurrentBorrowings",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13774": {
"value": "590000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:RepaymentsOfBorrowingsClassifiedAsFinancingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13776": {
"value": "7322000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:RepaymentsOfBorrowingsClassifiedAsFinancingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13780": {
"value": "1135000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PaymentsToAcquireOrRedeemEntitysShares",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13782": {
"value": "669000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PaymentsToAcquireOrRedeemEntitysShares",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13786": {
"value": "391000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaidClassifiedAsFinancingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13788": {
"value": "379000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaidClassifiedAsFinancingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13792": {
"value": "1000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PaymentsFromChangesInOwnershipInterestsInSubsidiaries",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13794": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:PaymentsFromChangesInOwnershipInterestsInSubsidiaries",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13797": {
"value": "-974000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInFinancingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13799": {
"value": "1141000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashFlowsFromUsedInFinancingActivities",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13802": {
"value": "-503000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalentsBeforeEffectOfExchangeRateChanges",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13804": {
"value": "309000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalentsBeforeEffectOfExchangeRateChanges",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13807": {
"value": "-1000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalentsDiscontinuedOperations",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13809": {
"value": "-9000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalentsDiscontinuedOperations",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13812": {
"value": "-504000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:IncreaseDecreaseInCashAndCashEquivalentsBeforeEffectOfExchangeRateChangesForContinuingOperations",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13814": {
"value": "300000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:IncreaseDecreaseInCashAndCashEquivalentsBeforeEffectOfExchangeRateChangesForContinuingOperations",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13818": {
"value": "1581000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13820": {
"value": "1112000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13823": {
"value": "35000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:EffectOfExchangeRateChangesOnCashAndCashEquivalents",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13825": {
"value": "-14000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:EffectOfExchangeRateChangesOnCashAndCashEquivalents",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13828": {
"value": "1112000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13830": {
"value": "1398000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13844": {
"value": "2000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:TaxCredit",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13845": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "akzoy:TaxCredit",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13848": {
"value": "2000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DecreaseIncreaseThroughTaxOnSharebasedPaymentTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13849": {
"value": "2000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DecreaseIncreaseThroughTaxOnSharebasedPaymentTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13853": {
"value": "4000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:AdjustmentForIncreaseDecreaseInTaxCharge",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13873": {
"value": "95000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"f13875": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"f13877": {
"value": "-873000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:EUR"
}
},
"f13879": {
"value": "6524000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember",
"unit": "iso4217:EUR"
}
},
"f13881": {
"value": "5746000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"f13883": {
"value": "204000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"f13885": {
"value": "5950000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13888": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"f13890": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"f13892": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:EUR"
}
},
"f13894": {
"value": "829000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember",
"unit": "iso4217:EUR"
}
},
"f13896": {
"value": "829000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"f13898": {
"value": "36000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"f13900": {
"value": "865000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13903": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "akzoy:OtherComprehensiveIncomeExpense",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"f13905": {
"value": "-19000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:OtherComprehensiveIncomeExpense",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"f13907": {
"value": "374000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:OtherComprehensiveIncomeExpense",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:EUR"
}
},
"f13909": {
"value": "-13000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:OtherComprehensiveIncomeExpense",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember",
"unit": "iso4217:EUR"
}
},
"f13911": {
"value": "342000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:OtherComprehensiveIncomeExpense",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"f13913": {
"value": "-1000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:OtherComprehensiveIncomeExpense",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"f13915": {
"value": "341000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:OtherComprehensiveIncomeExpense",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13918": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"f13920": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"f13922": {
"value": "6000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:EUR"
}
},
"f13924": {
"value": "-13000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember",
"unit": "iso4217:EUR"
}
},
"f13926": {
"value": "-7000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"f13928": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"f13930": {
"value": "-7000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13933": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"f13935": {
"value": "-19000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"f13937": {
"value": "380000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:EUR"
}
},
"f13939": {
"value": "803000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember",
"unit": "iso4217:EUR"
}
},
"f13941": {
"value": "1164000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"f13943": {
"value": "35000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"f13945": {
"value": "1199000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13948": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"f13950": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"f13952": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:EUR"
}
},
"f13954": {
"value": "365000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember",
"unit": "iso4217:EUR"
}
},
"f13956": {
"value": "365000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"f13958": {
"value": "27000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"f13960": {
"value": "392000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13964": {
"value": "-4000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"f13966": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"f13968": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:EUR"
}
},
"f13970": {
"value": "-1131000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember",
"unit": "iso4217:EUR"
}
},
"f13972": {
"value": "-1135000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"f13974": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"f13976": {
"value": "-1135000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13980": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"f13982": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"f13984": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:EUR"
}
},
"f13986": {
"value": "16000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember",
"unit": "iso4217:EUR"
}
},
"f13988": {
"value": "16000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"f13990": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"f13992": {
"value": "16000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f13995": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"f13997": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"f13999": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:EUR"
}
},
"f14001": {
"value": "-1000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember",
"unit": "iso4217:EUR"
}
},
"f14003": {
"value": "-1000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"f14005": {
"value": "-1000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"f14007": {
"value": "-2000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f14010": {
"value": "91000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"f14012": {
"value": "-19000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"f14014": {
"value": "-493000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:EUR"
}
},
"f14016": {
"value": "5846000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember",
"unit": "iso4217:EUR"
}
},
"f14018": {
"value": "5425000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"f14020": {
"value": "211000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"f14022": {
"value": "5636000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f14026": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:FinancialEffectOfChangesInAccountingPolicyMember",
"unit": "iso4217:EUR"
}
},
"f14028": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:FinancialEffectOfChangesInAccountingPolicyMember",
"unit": "iso4217:EUR"
}
},
"f14030": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:FinancialEffectOfChangesInAccountingPolicyMember",
"unit": "iso4217:EUR"
}
},
"f14032": {
"value": "16000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:FinancialEffectOfChangesInAccountingPolicyMember",
"unit": "iso4217:EUR"
}
},
"f14034": {
"value": "16000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:FinancialEffectOfChangesInAccountingPolicyMember",
"unit": "iso4217:EUR"
}
},
"f14036": {
"value": "2000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:FinancialEffectOfChangesInAccountingPolicyMember",
"unit": "iso4217:EUR"
}
},
"f14038": {
"value": "18000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:FinancialEffectOfChangesInAccountingPolicyMember",
"unit": "iso4217:EUR"
}
},
"f14041": {
"value": "91000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:PreviouslyStatedMember",
"unit": "iso4217:EUR"
}
},
"f14043": {
"value": "-19000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:PreviouslyStatedMember",
"unit": "iso4217:EUR"
}
},
"f14045": {
"value": "-493000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:PreviouslyStatedMember",
"unit": "iso4217:EUR"
}
},
"f14047": {
"value": "5862000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:PreviouslyStatedMember",
"unit": "iso4217:EUR"
}
},
"f14049": {
"value": "5441000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:PreviouslyStatedMember",
"unit": "iso4217:EUR"
}
},
"f14051": {
"value": "213000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:PreviouslyStatedMember",
"unit": "iso4217:EUR"
}
},
"f14053": {
"value": "5654000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00",
"ifrs-full:RetrospectiveApplicationAndRetrospectiveRestatementAxis": "ifrs-full:PreviouslyStatedMember",
"unit": "iso4217:EUR"
}
},
"f14056": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"f14058": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"f14060": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:EUR"
}
},
"f14062": {
"value": "352000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember",
"unit": "iso4217:EUR"
}
},
"f14064": {
"value": "352000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"f14066": {
"value": "26000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"f14068": {
"value": "378000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ProfitLoss",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f14071": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "akzoy:OtherComprehensiveIncomeExpense",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"f14073": {
"value": "-15000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:OtherComprehensiveIncomeExpense",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"f14075": {
"value": "-165000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:OtherComprehensiveIncomeExpense",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:EUR"
}
},
"f14077": {
"value": "-375000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:OtherComprehensiveIncomeExpense",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember",
"unit": "iso4217:EUR"
}
},
"f14079": {
"value": "-555000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:OtherComprehensiveIncomeExpense",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"f14081": {
"value": "2000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:OtherComprehensiveIncomeExpense",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"f14083": {
"value": "-553000000",
"decimals": -6,
"dimensions": {
"concept": "akzoy:OtherComprehensiveIncomeExpense",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f14086": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"f14088": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"f14090": {
"value": "2000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:EUR"
}
},
"f14092": {
"value": "86000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember",
"unit": "iso4217:EUR"
}
},
"f14094": {
"value": "88000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"f14096": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"f14098": {
"value": "88000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f14101": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"f14103": {
"value": "-15000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"f14105": {
"value": "-163000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:EUR"
}
},
"f14107": {
"value": "63000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember",
"unit": "iso4217:EUR"
}
},
"f14109": {
"value": "-115000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"f14111": {
"value": "28000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"f14113": {
"value": "-87000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:ComprehensiveIncome",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f14116": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"f14118": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"f14120": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:EUR"
}
},
"f14122": {
"value": "347000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember",
"unit": "iso4217:EUR"
}
},
"f14124": {
"value": "347000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"f14126": {
"value": "29000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"f14128": {
"value": "376000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsPaid",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f14132": {
"value": "-4000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"f14134": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"f14136": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:EUR"
}
},
"f14138": {
"value": "-656000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember",
"unit": "iso4217:EUR"
}
},
"f14140": {
"value": "-660000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"f14142": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"f14144": {
"value": "-660000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f14148": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"f14150": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"f14152": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:EUR"
}
},
"f14154": {
"value": "14000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember",
"unit": "iso4217:EUR"
}
},
"f14156": {
"value": "14000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"f14158": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"f14160": {
"value": "14000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f14163": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"f14165": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"f14167": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:EUR"
}
},
"f14169": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember",
"unit": "iso4217:EUR"
}
},
"f14171": {
"value": "0",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"f14173": {
"value": "3000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"f14175": {
"value": "3000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:IncreaseDecreaseThroughChangesInOwnershipInterestsInSubsidiariesThatDoNotResultInLossOfControl",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f14178": {
"value": "87000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember",
"unit": "iso4217:EUR"
}
},
"f14180": {
"value": "-34000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember",
"unit": "iso4217:EUR"
}
},
"f14182": {
"value": "-656000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember",
"unit": "iso4217:EUR"
}
},
"f14184": {
"value": "4936000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember",
"unit": "iso4217:EUR"
}
},
"f14186": {
"value": "4333000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember",
"unit": "iso4217:EUR"
}
},
"f14188": {
"value": "215000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember",
"unit": "iso4217:EUR"
}
},
"f14190": {
"value": "4548000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:Equity",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f14202": {
"value": "Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
\nGENERAL INFORMATION
\nAkzo Nobel N.V. is a public limited liability company
\nheadquartered in the Netherlands. The address of our
\nregistered office is Christian Neefestraat 2, Amsterdam;
\nthe Chamber of Commerce number is 09007809. We
\nhave attached a list of subsidiaries, associated companies
\nand joint ventures, drawn up in conformity with Articles
\n379 and 414 of Book 2 of the Dutch Civil Code, as
\nan appendix to our annual report. The principal activity of
\nAkzoNobel is the production and selling of paints
\nand coatings.
\nWe have prepared the Consolidated financial statements
\nof Akzo Nobel N.V. in accordance with International Finan-
\ncial Reporting Standards (IFRS) as adopted by the Euro-
\npean Union. The Consolidated financial statements also
\ncomply with the financial reporting requirements included
\nin Title 9 of Book 2 of the Dutch Civil Code.
\nThe Management report within the meaning of Article 391
\nof Book 2 of the Dutch Civil Code consists of the following
\nparts of the annual report:
\n\u2022
2022 results at a glance
\n\u2022
CEO statement
\n\u2022
How we created value
\n\u2022
Strategy and operations
\n\u2022
Sustainability statements
\n\u2022
Leadership and governance: Our Board of Management
\nand Executive Committee
\n\u2022
Leadership and governance: Statement of the Board of
\nManagement
\n\u2022
Leadership and governance: Corporate governance
\nstatement
\n\u2022
Leadership and governance: Risk management
\n\u2022
Leadership and governance: Integrity and compliance
\nmanagement
\n\u2022
Leadership and governance: Remuneration report
\n\u2022
Financial information: Note 6 Operating income
\n\u2022
Financial information: Note 27 Financial risk management
\nOn February 27, 2023, the Board of Management
\nauthorized the financial statements for issue. The financial
\nstatements as presented in this report are subject to adop-
\ntion by the Annual General Meeting of shareholders on
\nApril 21, 2023.
\nGOING CONCERN
\nThe Consolidated financial statements have been prepared
\non a going concern basis, resulting from management\u2019s
\nassessment of the ability of AkzoNobel to continue its
\noperations for the foreseeable future.
\nManagement has assessed the ability of AkzoNobel to
\ncontinue as a going concern based on an evaluation of,
\namongst others, the financial position, expected future
\ncash flows and market developments.
\nAt December 31, 2022, cash and cash equivalents were
\n\u20ac1.5 billion. We also assessed the ability of the company
\nto obtain financing, taking into account the company\u2019s
\nexternal credit rating which we are committed to retain at
\nstrong investment grade.
\nExpected future cash flows are based on the latest
\nforecasts. These forecasts take into account internal and
\nexternal developments relevant in the assessment of
\nthe ability of AkzoNobel to continue as a going concern,
\nincluding but not limited to market developments (see
\ndisclosure on e.g. impact from the war in Ukraine and the
\nsanctions on Russia in this Note), developments in the
\nmacro-economic environment (e.g. inflation, see disclosure
\non inflation in this Note) and climate-related developments
\n(see disclosure on climate change in this Note).
\nManagement\u2019s assessment did not lead to uncertainties
\nin relation to AkzoNobel\u2019s ability to continue as a
\ngoing concern.
\nIMPACT OF CLIMATE CHANGE
\nThe potential effects on the financial statements of climate
\nchange have been assessed. This includes the impact
\nof physical risks, such as those associated with water
\nscarcity, flooding and weather events and transitional risks
\nthat can lead to changes in technology, market dynam-
\nics and regulations. Also considered were AkzoNobel\u2019s
\ncommitments to reduce carbon emissions as approved
\nby the Science Based Targets initiative (SBTi), and related
\nestimates as to investments and the timing thereof.
\nThe resulting impact on the financial statements, including
\nin the areas of fixed assets depreciation and recoverability
\nassessments, was not material to AkzoNobel\u2019s financial
\nposition and results of operations as of and for the year
\nended December 31, 2022.
\nIMPACT FROM THE WAR IN UKRAINE
\nAND SANCTIONS ON RUSSIA
\nOur business in Ukraine and Russia combined represents
\nabout 2% of our revenue (2021: 2%), of which the vast
\nmajority concerned Russia.
\nFollowing the EU sanctions, the majority of our Perfor-
\nmance Coatings activities in Russia was suspended
\nand the residual Russian business is locally operated.
\nAkzoNobel has assessed the potential accounting impact
\nfrom the localization of the Russian business. Taking into
\naccount the applicable IFRS standards, we have conclud-
\ned that our Russian business can still be included in our
\nscope of consolidation.
\nNo significant impairments of assets occurred in Russia; in
\nUkraine, the value of the assets is immaterial.
\nIMPACT OF INFLATION
\nThe financial year 2022 was a year of significant inflation
\ndue to geopolitical and macro-economic developments.
\nThe impacts from rising inflation have been considered
\nin the financial statements where relevant. Reference is
\nmade to Note 6 Operating income on financial develop-
\nments in the year, Note 11 Intangible assets on the annual
\nimpairment testing process, Note 16 on the impact of raw
\nmaterial increases, Note 19 Post-retirement benefit provi-
\n103
AkzoNobel Report 2022
|
Financial statements
sions on the impact of inflation rate on the DBO and Note
\n27 Financial Risk Management on sensitivities in relation to
\nchanges in interest rate.
\nCONSOLIDATION
\nThe Consolidated financial statements include the accounts
\nof Akzo Nobel N.V. and its subsidiaries. Subsidiaries are com-
\npanies over which Akzo Nobel N.V. has control, because it
\nis exposed, or has rights, to variable returns from its involve-
\nment with the subsidiary and has the ability to affect returns
\nthrough its power over the subsidiary. Non-controlling inter-
\nests in equity and in results are presented separately.
\nCHANGES IN ACCOUNTING POLICIES
\nAND FIRST TIME APPLICATION
\nAccounting pronouncements with potential relevance for
\nAkzoNobel, which became effective for 2022 (amend-
\nments to IFRS 3 \u201cReference to the Conceptual Frame-
\nwork\u201d, amendments to IAS 16 \u201cProperty, Plant and
\nEquipment: Proceeds before Intended Use\u201d, amendments
\nto IAS 37 \u201dOnerous Contracts \u2013 Costs of Fulfilling a
\nContract\u201d and \u201cAnnual Improvements to IFRS Standards
\n2018-2020\u201d) had no material impact on our Consolidated
\nfinancial statements.
\nDISCONTINUED OPERATIONS
\nA discontinued operation is a component of our busi-
\nness that represents a separate major line of business or
\ngeographical area of operations that has been disposed
\nof or is held for sale, or is a subsidiary acquired exclusively
\nwith a view to resale. Assets and liabilities are classified as
\nheld for sale if it is highly probable that the carrying value
\nwill be recovered through a sale transaction within one
\nyear rather than through continuing use. When reclassify-
\ning assets and liabilities as held for sale, we recognize the
\nassets and liabilities at the lower of their carrying value or
\nfair value less costs to sell. Assets held for sale are not
\ndepreciated and amortized but tested for impairment. In
\ncase of discontinued operations, the comparative figures
\nin the Consolidated statement of income and Consolidated
\nstatement of cash flows are represented. The balance
\nsheet comparative figures are not represented.
\nUSE OF ESTIMATES
\nThe preparation of the financial statements in compliance
\nwith IFRS requires management to make judgments, esti-
\nmates and assumptions that affect amounts reported in
\nthe financial statements. The estimates and assumptions
\nare based on experience and various other factors that
\nare believed to be reasonable under the circumstances
\nand are used to judge the carrying values of assets and
\nliabilities that are not readily apparent from other sources.
\nThe estimates and underlying assumptions are reviewed
\non an ongoing basis. The most critical accounting policies
\ninvolving a higher degree of judgment and complexity in
\napplying principles of valuation and for which changes in
\nthe assumptions and estimates could result in significantly
\ndifferent results than those recorded in the financial state-
\nments are the following:
\n\u2022
Scope of consolidation, including purchase price
\nallocations for business combinations (Note 2)
\n\u2022
Income tax and deferred tax assets, including uncertain
\ntax positions (Note 9)
\n\u2022
Impairment of intangible assets, property, plant and
\nequipment and right-of-use assets (Note 11, 12, 13)
\n\u2022
Post-retirement benefit provisions (Note 19)
\n\u2022
Provisions and contingent liabilities (Note 20)
\nBUSINESS COMBINATIONS (NOTE 2)
\nIn business combinations, identifiable assets and liabilities,
\nand contingent liabilities are recognized at their fair values
\nat the acquisition date. Determining the fair value requires
\nsignificant judgments on future cash flows to be generated.
\nGoodwill in a business combination represents the excess
\nof the consideration paid over the net fair value of the
\nacquired identifiable assets, liabilities and contingent liabili-
\nties. If the cost of an acquisition is less than the fair value of
\nthe net assets of the subsidiary acquired, the difference is
\nrecognized directly in the statement of income.
\nThe fair value of brands, customer relationships and
\nknow-how acquired in a business combination is estimated
\nusing generally accepted valuation methods. These include
\nthe relief-from-royalty method, the incremental cash flow
\nmethod and the multi-period excess earnings method.
\nThe fair value of property, plant and equipment acquired
\nin a business combination is based on estimated
\nmarket
values.
\nThe fair value of inventories acquired in a business combi-
\nnation is determined based on estimated selling prices
\nin the ordinary course of business less the estimated
\ncosts of completion and sale and a reasonable profit
\nmargin, based on the effort required to complete and sell
\nthe inventories.
\nSTATEMENT OF CASH FLOWS
\nWe have used the indirect method to prepare the state-
\nment of cash flows. Cash flows in foreign currencies have
\nbeen translated at transaction rates. Acquisitions or
\ndivestments of subsidiaries are presented net of cash and
\ncash equivalents acquired or disposed of, respectively.
\nCash flows from derivatives are recognized in the state-
\nment of cash flows in the same category as those of the
\nhedged items.
\nOPERATING SEGMENTS
\nWe determine and present operating segments based on
\nthe information that is provided to the Executive Commit-
\ntee, our chief operating decision-maker during 2022, to
\nmake decisions about resources to be allocated to the
\nsegments and assess their performance. Segment results
\nreported to the Executive Committee include items directly
\nattributable to a segment as well as those items that can
\nbe allocated on a reasonable basis. Unallocated items
\nmainly comprise of corporate assets and corporate costs
\nand are reported in \u201cCorporate and other\u201d.
\nFOREIGN CURRENCIES
\nTransactions in foreign currencies are translated into the
\nfunctional currency using the foreign exchange rate at
\ntransaction date. Monetary assets and liabilities denomi-
\nnated in foreign currencies are translated into the function-
\nal currency using the exchange rates at the balance sheet
\ndate. Resulting foreign currency differences are included
\nin the statement of income in financing income and
\nexpenses. Non-monetary assets and liabilities denominat-
\n104
AkzoNobel Report 2022
|
Financial statements
ed in foreign currencies are translated into the functional
\ncurrency at the exchange rate at acquisition date.
\nThe assets and liabilities of entities with other func-
\ntional currencies are translated into euros, the functional
\ncurrency of the parent entity, using the exchange rates at
\nthe balance sheet date. The income and expenses of enti-
\nties with other functional currencies are translated into the
\nfunctional currency, using the exchange rates at transac-
\ntion date.
\nWhen a subsidiary is operating in a hyperinflationary
\ncountry, the financial statements of this entity are restated
\ninto the current purchasing power at the end of the report-
\ning period. Hyperinflation accounting is applied for Argen-
\ntina and T\u00fcrkiye based on the historical cost approach and
\nusing the Consumer Price Index (CPI).
\nCPI rate developments for Argentina and T\u00fcrkiye are
\nincluded in the table \u201cCPI rates at December 31\u201d.
\nCPI rates at December 31
\nCountry
2020
2021
2022
\nArgentina
386
582
1,135
\nT\u00fcrkiye
505
687
1,128
\nFor a consolidated overview of financial impacts from
\nhyperinflation accounting, refer to Note 8.
\nForeign exchange rate differences resulting from trans-
\nlation into the functional currency of investments in
\nsubsidiaries and of intercompany loans of a permanent
\nnature with other functional currencies are recorded as a
\nseparate component (cumulative translation reserve) within
\nother comprehensive income. These cumulative translation
\nadjustments are reclassified (either fully or partly) to the
\nstatement of income upon disposal (either fully or partly) or
\nliquidation of the foreign subsidiary to which the invest-
\nment or the intercompany loan with a permanent nature
\nrelates. Foreign currency differences arising on the transla-
\ntion of a financial liability designated as an effective hedge
\nof a net investment in a foreign operation are recognized
\nin the cumulative translation reserve (in other comprehen-
\nsive income).
\nEXCHANGE RATES OF KEY
\nCURRENCIES
\nThe principal exchange rates against the euro used in
\npreparing the balance sheet and the statement of income
\nare (table shows foreign currency equivalents of 1 euro):
\nBalance sheet
Statement of income
\n2021
2022
%
2021
2022
%
\nUS dollar
1.131
1.067
(5.7)
1.182
1.053
(10.9)
\nPound sterling
0.837
0.884
5.6
0.860
0.853
(0.8)
\nChinese yuan
7.197
7.426
3.2
7.626
7.086
(7.1)
\nREVENUE RECOGNITION (NOTE 5)
\nSale of goods
\nAkzoNobel\u2019s main business consists of straightforward
\nselling of goods (paints and coatings) to customers at
\ncontractually determined prices and conditions without
\nany additional services. Although the transfer of risks
\nand rewards is not the only criterion to be considered to
\ndetermine whether control over the goods has transferred,
\nit is in most situations considered to be the main indicator
\nof the customer\u2019s ability to direct the use of and obtain the
\nbenefits from the asset and largely also coincides with the
\nphysical transfer of the goods and the obligation of the
\ncustomer to pay.
\nVariable considerations, including among others rebates,
\nbonuses, discounts and payments to customers, are
\naccrued for as performance obligations are satisfied and
\nrevenue is recognized. Variable considerations are only
\nrecognized when it is highly probable that these are not
\nsubject to significant reversal. In case of expected returns,
\nno revenue is recognized for such products, but a refund
\nliability and an asset for the right to recover the to be
\nreturned products are recorded. A provision for warranties
\nis recognized when the underlying products or services are
\nsold, generally based on historical warranty data. Revenue
\nis recognized net of rebates, discounts and similar allow-
\nances, and net of sales tax.
\nEquipment provided to customers
\nAkzoNobel regularly provides mixing machines, store
\ninterior and other assets to its customers at the start of a
\npaints or coatings delivery contract. The delivery of such
\nassets qualifies as a separate performance obligation.
\nRevenue can only be recognized at the moment of transfer
\nof such assets, when there is an agreed sales price or
\nwhen there is a binding take-or-pay commitment for a
\nminimum quantity of paints or coatings to be acquired by
\nthe customer.
\nServices
\nAkzoNobel provides certain training, technical or support
\nservices to customers as well as shipping and handling
\nactivities for its customers. Service revenue is recognized
\nover time when the related services are being provided.
\nWhen not separately invoiced, part of the sales price of
\npaints or coatings is allocated to such services.
\nPOST-RETIREMENT BENEFITS
\n(NOTE 7, 19)
\nContributions to defined contribution plans are recognized
\nin the statement of income as incurred.
\nMost of our defined benefit pension plans are funded
\nwith plan assets that have been segregated in a trust or
\nfoundation. We also provide post-retirement benefits other
\nthan pensions to certain employees, which are gener-
\nally not funded. Valuations of both funded and unfunded
\nplans are carried out by independent actuaries based on
\nthe projected unit credit method. Post-retirement costs
\nprimarily represent the increase in the actuarial present
\nvalue of the obligation for projected benefits based on
\nemployee service during the year and interest on the net
\ndefined benefit liability/asset. When the calculation results
\nin a benefit to AkzoNobel, the recognized asset is limited
\nto the present value of economic benefits available in
\nthe form of any future refunds from the plan or reductions
\nin future contributions to the plan. An economic benefit
\nis available if it is realizable during the life of the plan,
\nor on the settlement of the plan liabilities. The effect of
\nthese so-called asset ceiling restrictions and any changes
\ntherein are recognized in other comprehensive income.
\nRemeasurement gains and losses, which arise in
\ncalculating our obligations, are recognized in other
\ncomprehensive income. When the benefits of a plan
\nimprove, the portion of the increased benefits related
\nto past service by employees is recognized as an
\nexpense in the statement of income immediately. We
\nrecognize gains and losses on the curtailment or settle-
\n105
AkzoNobel Report 2022
|
Financial statements
ment of a defined benefit plan when the curtailment or
\nsettlement occurs.
\nInterest on the net defined benefit liability/asset is included
\nin financing expenses related to post-retirement benefits.
\nOther charges and benefits recognized are reported
\nin operating income, unless recorded in other comprehen-
\nsive income.
\nOTHER EMPLOYEE BENEFITS
\n(NOTE 7, 20)
\nProvisions for other long-term employee benefits are
\nmeasured at present value, using actuarial assumptions and
\nmethods. Any actuarial gains and losses are recognized in
\nthe statement of income in the period in which they arise.
\nSHARE-BASED COMPENSATION
\n(NOTE 7)
\nAkzoNobel has a performance-related and a restricted
\nshare plan as well as a share-matching plan, under which
\nshares are conditionally granted to certain employees.
\nThe fair value is measured at grant date and amortized
\nover the three-year period during which the employees
\nnormally become unconditionally entitled to the shares
\nwith a corresponding increase in shareholders\u2019 equity.
\nAmortization is accelerated in the event of earlier vesting
\nor settlement.
\nINCOME TAX (NOTE 9)
\nIncome tax expense comprises both current and deferred
\ntax, including effects of changes in tax rates. In determin-
\ning the amount of current and deferred tax we also take
\ninto account the impact of uncertain tax positions and
\nwhether additional taxes may be due. Income tax is recog-
\nnized in the statement of income, unless it relates to items
\nrecognized in other comprehensive income or equity.
\nCurrent tax includes the expected tax payable and receiv-
\nable on the taxable income for the year, using tax rates
\nenacted or substantially enacted at reporting date, as well
\nas (any adjustments to) tax payables and receivables with
\nrespect to previous years.
\nDeferred tax is recognized using the liability method on
\ntemporary differences arising between the tax bases of
\nassets and liabilities and their carrying amounts in the
\nConsolidated financial statements. We do not recognize
\ndeferred tax for the initial recognition of goodwill, the
\ninitial recognition of assets or liabilities that affect neither
\naccounting nor taxable profit, and differences related to
\ninvestments in subsidiaries to the extent that they
\nwill probably not reverse in the foreseeable future and we
\ncan control the timing of the reversal of the temporary
\ndifference. Deferred tax assets are recognized for unused
\ntax losses, tax credits and deductible temporary differ-
\nences, to the extent that it is probable that future
\ntaxable profits will be available against which they can
\nbe utilized.
\nMeasurement of deferred tax assets and liabilities is
\nbased upon the enacted or substantially enacted tax
\nrates expected to apply to taxable income in the years in
\nwhich temporary differences are expected to be reversed.
\nDeferred tax positions are not discounted.
\nEARNINGS PER SHARE
\n(NOTE 10)
\nBasic earnings per share is calculated by dividing the
\nprofit for the period attributable to shareholders of the
\ncompany by the weighted average number of common
\nshares outstanding during the year, adjusted for any repur-
\nchased shares. Diluted earnings per share is calculated
\nby adjusting the weighted average number of common
\nshares outstanding during the year for the diluting effect
\nof the shares of the performance-related share plan, the
\nrestricted share plan and the share-matching plan.
\nAdjusted earnings per share represents the basic earnings
\nper share from continuing operations excluding identified
\nitems, after taxes.
\nGOVERNMENT GRANTS
\nGovernment grants related to costs are deducted from
\nthe relevant costs to be compensated in the same period.
\nGovernment grants to compensate for the cost of an asset
\nare deducted from the cost of the related asset. Emission
\nrights granted by the government are recorded at cost.
\nA provision is recorded if the actual emission is higher than
\nthe emission rights granted.
\nINTANGIBLE ASSETS (NOTE 11)
\nIntangible assets are valued at cost less accumulated
\namortization and impairment charges. Intangible assets
\nwith an indefinite useful life, such as goodwill and certain
\nbrands, are not amortized, but tested for impairment annu-
\nally using the value-in-use method.
\nIntangible assets with a finite useful life, such as licenses,
\nknow-how, certain brands, customer relationships, intellec-
\ntual property rights, emission rights, software expenditures
\n(in as far as AkzoNobel controls the software configured or
\ncustomized) and capitalized development costs, are capital-
\nized at historical cost and amortized on a straight-line basis
\nover the estimated useful life of the assets, which generally
\nranges from 5 to 40 years for brands with finite useful lives,
\n5 to 25 years for customer relationships and 3 to 15 years
\nfor other intangibles. Amortization methods, useful lives and
\nresidual values are reassessed annually. Research expendi-
\ntures are recognized as an expense as incurred.
\nPROPERTY, PLANT AND EQUIPMENT
\n(NOTE 12)
\nProperty, plant and equipment are valued at cost less
\naccumulated depreciation and impairment charges. Costs
\ninclude expenditures that are directly attributable to the
\nacquisition of the asset, including borrowing cost of capital
\ninvestment projects under construction.
\nDepreciation is calculated using the straight-line method,
\nbased on the estimated useful life of the asset compo-
\nnents.The useful life of plant equipment and machinery
\ngenerally ranges from 10 to 25 years, and for buildings
\nranges from 20 to 50 years. Land is not depreciated. In
\nthe majority of cases, residual value is assumed to be not
\nsignificant. Depreciation methods, useful lives and residual
\nvalues are reassessed annually.
\nCosts of major maintenance activities are capitalized and
\ndepreciated over the estimated useful life. Maintenance
\ncosts which cannot be separately defined as a component
\nof property, plant and equipment are expensed in the
\n106
AkzoNobel Report 2022
|
Financial statements
period in which they occur. We recognize conditional asset
\nretirement obligations in the periods in which sufficient
\ninformation becomes available to reasonably estimate the
\ncash outflow.
\nLEASES (NOTE 13, 21)
\nAs a lessee, we assess whether a contract is, or contains,
\na lease at inception. A contract is, or contains, a lease
\nif the contract conveys the right to control the use of an
\nidentified asset for a period of time in exchange for a
\nconsideration.
\nAt commencement or on modification of a contract that
\ncontains a lease component, we allocate the consideration
\nin the contract to each lease component on the basis of its
\nrelative stand-alone price. However, for the leases of cars
\nwe have elected not to separate non-lease components
\nand account for the lease and non-lease components as a
\nsingle lease component.
\nWe recognize a right-of-use asset and a lease liability at
\nthe lease commencement date. The right-of-use asset is
\ninitially measured at the present value of the lease liability.
\nThe right-of-use asset value contains lease prepayments,
\nlease incentives received, the initial direct costs and an
\nestimate of restoration, removal and dismantling costs.
\nFor deferred taxes associated with lease accounting under
\nIFRS 16, AkzoNobel determines the temporary differences
\nbetween the book basis and tax basis of the right-of-
\nuse asset and the lease liability on a net basis. It is the
\ncompany\u2019s view that these are integrally linked. As a result,
\na deferred tax position is reported on the net temporary
\ndifferences of the right-of-use assets and lease liabilities.
\nThe right-of-use assets are depreciated using the straight-
\nline method from the commencement date to the end of
\nthe lease term or shorter economic life. In addition, the
\nvalue of right-of-use assets is reduced by impairment
\nlosses, if any, and adjusted for certain remeasurements of
\nthe lease liability.
\nThe net present value of the lease liability is measured at
\nthe discounted value of the lease payments. The liability
\nincludes payments to be made in optional periods if it
\nis reasonably certain that we will exercise an option to
\nextend the lease, or that we will not exercise an option
\nto terminate the lease. The lease payments comprise the
\nfollowing:
\n\u2022
Fixed payments (including in substance fixed payments),
\nless any lease incentives
\n\u2022
Variable lease payments that depend on an index or a
\nrate
\n\u2022
The exercise price of a purchase option if it is
\nreasonably certain that the option will be exercised
\n\u2022
Payments of penalties for terminating the lease, if the
\nlease term reflects the lessee exercising an option to
\nterminate the lease; and
\n\u2022
Amounts expected to be payable under residual value
\nguarantees
\nThese lease payments are discounted using the interest
\nrate implicit in the lease contract, if that rate can be readily
\ndetermined. If that rate cannot be readily determined, the
\nincremental borrowing rate is used. We determine our
\nincremental borrowing rates by obtaining interest rates
\nfrom various external financing sources and make certain
\nadjustments to reflect the term of the lease and type of
\nthe asset leased. At the lease commencement dates,
\nwe assess whether it is reasonably certain that we will
\nexercise the extension options. We reassess whether it is
\nreasonably certain that we will exercise the options, if there
\nis a significant event or significant change in circumstances
\nwithin our control.
\nAt the commencement date, we assess whether it is
\nreasonably certain that:
\n\u2022
An option to extend is exercised; or
\n\u2022
An option to purchase is exercised; or
\n\u2022
An option to terminate the lease is not exercised
\nIn making these assessments, all relevant facts and
\ncircumstances that create an economic incentive for us
\nto exercise, or not to exercise, the option, including any
\nexpected changes in facts and circumstances from the
\ncommencement date until the exercise date of the option
\nare considered.
\nShort-term leases and leases of low-value assets
\nWe do not record right-of-use assets and lease liabilities
\non the balance sheet for leases of low-value assets and
\nshort-term leases. We recognize the lease payments asso-
\nciated with these leases as an expense on a straight-line
\nbasis over the lease term.
\nIMPAIRMENTS (NOTE 11, 12, 13)
\nWe assess the carrying value of intangible assets, property,
\nplant and equipment and right-of-use assets whenever
\nevents or changes in circumstances indicate that the carry-
\ning value of an asset may not be recoverable as a result
\nof e.g. changes in cash flow forecasts, damages, market
\ndevelopments or environmental and climate change risks.
\nIn addition, for goodwill and other intangible assets with
\nan indefinite useful life, the carrying value is reviewed at
\nleast annually or when circumstances indicate the carrying
\namount may be impaired. If the carrying value of an asset
\nor its cash-generating unit exceeds its estimated recov-
\nerable amount, an impairment loss is recognized in the
\nstatement of income on the functional level of the asset
\nimpaired. The assessment for impairment is performed at
\nthe lowest level of assets generating largely independent
\ncash inflows. For goodwill and other intangible assets with
\nan indefinite life, we have determined this to be at business
\nunit level (one level below operating segment).
\nExcept for goodwill, we reverse impairment losses in
\nthe statement of income if and to the extent we have
\nidentified a change in estimates used to determine the
\nrecoverable amount.
\nASSOCIATES AND JOINT VENTURES
\n(NOTE 14)
\nAssociates and joint ventures are accounted for using the
\nequity method and are initially recognized at cost. The
\nConsolidated financial statements include our share of the
\nincome and expenses of the associates and joint ventures,
\nwhereby the result is determined using our accounting
\nprinciples. When the share of losses exceeds the interest
\nin the investee, the carrying amount is reduced to nil and
\nrecognition of further losses is discontinued, unless we
\nhave further legal or constructive obligations.
\nINVENTORIES (NOTE 16)
\nInventories are measured at the lower of cost and net
\nrealizable value. Costs of inventories comprise all costs of
\npurchase, costs of conversion and other costs incurred
\nin bringing the inventories to the present location and
\n107
AkzoNobel Report 2022
|
Financial statements
condition. The costs of inventories are determined using
\nweighted average cost.
\nPROVISIONS (NOTE 20)
\nWe recognize provisions when a present legal or construc-
\ntive obligation as a result of a past event exists, it is
\nprobable that an outflow of economic benefits is required
\nto settle the obligation and the amount can be reliably esti-
\nmated. Provisions are measured at net present value. The
\nincrease of provisions as a result of the passage of time
\nis recognized in the statement of income under financing
\nincome and expenses.
\nProvisions for restructuring of activities are recognized
\nwhen a detailed and formal restructuring plan has been
\napproved, and the restructuring has either commenced or
\nhas been announced publicly. We do not provide for future
\noperating costs.
\nFINANCIAL INSTRUMENTS
\nClassi\ufb01cation
\nAll assets are measured at amortized cost, fair value
\nthrough profit or loss or fair value through other compre-
\nhensive income. Financial assets are classified according
\nto a model based on:
\n\u2022
A contractual cash flow characteristics test
\n\u2022
A business model dictating how the reporting entity
\nmanages its financial assets in order to generate cash
\nflows as either:
\n1. Hold to collect contractual cash flows
\n2. Collect contractual cash flows and sell
\n3. Neither 1 or 2
\n\u2022
Election of the fair value option in some specific cases in
\norder to eliminate an accounting mismatch
\nThe classification of a financial asset is determined at initial
\nrecognition, but if certain conditions are met, an asset
\nmight be subject to reclassification.
\nValuation and impairment
\nFinancial assets are assessed for impairment either accord-
\ning to the general approach or a simplified approach.
\nThe calculation of impairment under the general approach
\nuses the following stages:
\n\u2022
12-month expected credit losses; taking into account
\npossible default events within one year
\n\u2022
Lifetime expected credit losses in case of an increase in
\ncredit risk; through recognition of expected credit losses
\nover the remaining life of the exposure
\n\u2022
Lifetime expected credit losses, where interest is
\ncalculated on the net amount of the receivables less
\nimpairment loss
\nIn all above stages, the impairment calculation used is
\nbased on external credit ratings of involved parties or
\ndefault rates published by well-known credit risk agencies.
\nThe financial assets included in the general impairment
\napproach are long-term loans and other long-term receiv-
\nables.
\nThe calculation of impairment under the simplified
\napproach requires recognition of lifetime expected credit
\nloss (no tracking of changes in credit risk). The financial
\nassets included in the simplified impairment approach are
\ntrade receivables and the remaining financial assets.
\nMeasurement
\nRegular purchases and sales of financial assets and
\nliabilities are recognized on trade date. The initial measure-
\nment of all financial instruments is at fair value. Except
\nfor derivatives and cash and cash equivalents, the initial
\nmeasurement of financial instruments is adjusted for
\ndirectly attributable transaction costs.
\nDerivative \ufb01nancial instruments (Note 27)
\nDerivative financial instruments are recognized at fair value
\non the balance sheet. Fair values are derived from market
\nprices and quotes from dealers and brokers or are esti-
\nmated using observable market inputs. When determining
\nfair values, credit risk for our contract party, as well as for
\nAkzoNobel, is taken into account.
\nChanges in fair value are recognized in the statement of
\nincome, unless cash flow hedge accounting or net invest-
\nment hedge accounting is applied. In those cases, the
\neffective part of the fair value changes is deferred in other
\ncomprehensive income and released to the related specific
\nlines in the statement of income or balance sheet at the
\nsame time as the hedged item.
\nFinancial non-current assets (Note 15) and Trade
\nand other receivables (Note 17)
\nLoans and receivables are measured at amortized cost, using
\nthe effective interest method, less any impairment losses.
\nCash and cash equivalents and Short-term
\ninvestments (Note 21)
\nCash and cash equivalents and short-term investments are
\nmeasured at fair value. Cash and cash equivalents include
\nall cash balances and other investments that are directly
\nconvertible into known amounts of cash. Changes in fair
\nvalues are included in financing income and expenses.
\nLong-term and Short-term borrowings (Note 21,
\n27) and Trade and other payables (Note 22)
\nLong-term and short-term borrowings, as well as trade
\nand other payables, are measured at amortized cost, using
\nthe effective interest rate method. The interest expense on
\nborrowings is included in financing income and expenses.
\nThe fair value of borrowings, used for disclosure purposes,
\nis determined based on listed market price, if available. If a
\nlisted market price is not available, the fair value is calcu-
\nlated based on the present value of principal and interest
\ncash flows, discounted at the interest rate at the reporting
\ndate, considering AkzoNobel\u2019s credit risk.
\nNEW IFRS ACCOUNTING
\nSTANDARDS
\nIFRS standards and interpretations thereof not yet in force,
\nwhich may apply to our Consolidated financial state-
\nments for 2023 and beyond, have been assessed for their
\npotential impact.
\nThese include among others IFRS 17\u00a0\u201cInsurance
\nContracts\u201d, amendments to IAS 1 \u201cClassification of Liabili-
\nties as Current or Non-current\u201d, amendments to IAS 8
\n\u201cDefinition of Accounting Estimates\u201d, amendments to IAS
\n12 \u201cDeferred Tax related to Assets and Liabilities arising
\nfrom a Single Transaction\u201d, amendments to IAS 1 and
\nIFRS Practice Statement 2 \u201cDisclosure of Accounting Poli-
\ncies\u201d, amendments to IFRS 16 \u201cLease Liability in a
\nSale and Leaseback\u201d and amendments to IFRS 10 and
\nIAS 28 \u201cSale or Contribution of Assets between an Inves-
\ntor and its Associate or Joint Venture\u201d. These changes
\nare not expected to have a material effect on AkzoNobel\u2019s
\nConsolidated financial statements.
\n108
AkzoNobel Report 2022
|
Financial statements
Note 2 SCOPE OF
\nCONSOLIDATION
\nMaterial subsidiaries
\nThe Consolidated financial statements comprise the
\nassets, liabilities, income and expenses of 251 legal enti-
\nties. Due to a legal entity reduction program, focusing
\non merging entities and liquidating dormant entities, we
\nexpect the number of legal entities to reduce in the coming
\nyears. We consider legal entities material when they repre-
\nsent, for at least two subsequent years, more than 5% of
\neither revenue or operating income. Material subsidiaries
\nincluded in the table below are fully owned at year-end
\n2022 except for Akzo Nobel India Limited, refer to Note 18
\nfor an overview of non-controlling interests.
\nMaterial subsidiaries related to continuing
\noperations
\nPrincipal place of
\nbusiness/country of
\nLegal entity
incorporation
\nAkzo Nobel Coatings Inc.
US
\nAkzo Nobel Paints (Shanghai) Co Ltd.
China
\nAkzo Nobel India Limited
India
\nImperial Chemical Industries Limited
UK
\nAkzo Nobel Decorative Coatings B.V.
The Netherlands
\nAkzo Nobel Coatings SPA
Italy
\nAcquisitions
\nOn April 22, 2022, AkzoNobel acquired 100% of the
\nshares of Colombia based paints and coatings company
\nGrupo Orbis S.A. (Grupo Orbis) for \u20ac566 million. The
\nacquisition strengthens our position in Latin America. The
\ntransaction includes eight operational manufacturing sites.
\nSince its acquisition, Grupo Orbis contributed \u20ac336 million
\nto revenue and \u20ac29 million to operating income. Based on
\nfinancial information received from the acquiree, revenues
\nfor the period January 1, 2022 until the date of acquisition
\namounted to \u20ac123 million.
\nBased on the provisional purchase price allocation, the
\ntransaction resulted in \u20ac262 million of goodwill (non-
\ndeductible for tax purposes), \u20ac259 million of other
\nintangible assets and \u20ac121 million of property, plant and
\nequipment. The purchase price allocation will be final-
\nized before April 21, 2023. No material changes from the
\ncurrent purchase price allocation are expected.
\nThe purchase price allocation was performed using the
\nimplied internal rate of return on management\u2019s forecasts.
\nAn assessment of the assumptions applied in estimating
\nsuch forecasts was made, including potential synergies that
\nare expected to be realized as a result of the transaction.
\nThe goodwill is mainly attributable to synergies expected
\nto be achieved from integrating the company into the
\ngroup. The paints business of Grupo Orbis is being inte-
\ngrated in business unit Decorative Paints Latin America.
\nThe coatings businesses ultimately will be incorporated
\ninto the respective Performance Coatings business
\nunits in 2023. For the interim period, in 2022, these
\nbusinesses are reported in business unit Performance
\nCoatings Other.
\nOn December 1, 2022, we acquired the wheel liquid
\ncoatings business of Lankwitzer Lackfabrik GmbH for \u20ac36
\nmillion in an asset deal. The provisional purchase price
\nallocation resulted in \u20ac7 million of goodwill (deductible for
\ntax purposes), \u20ac17 million of other intangible assets and
\n\u20ac14 million other fixed and current assets. The goodwill is
\nmainly attributable to synergies expected to be achieved
\nfrom integrating the acquired business into the group.
\nThe purchase price is provisional due to the limited time
\nbetween the date of acquisition and the reporting date.
\nThe contribution of the Lankwitzer business to the 2022
\nstatement of income is not material. This business is being
\nintegrated in business unit Powder Coatings.
\nOn June 1, 2022, AkzoNobel announced the intended
\nacquisition of Kansai Paint\u2019s African paints and coatings
\nactivities. The intended acquisition is expected to further
\nstrengthen our activities in the region and provide opportu-
\nnities for future growth. The acquisition is expected to be
\ncompleted in the second half of 2023.
\nOn March 1, 2021, AkzoNobel acquired 100% of the
\nshares of Industrias Titan S.A.U. (Titan Paints) in Spain,
\nfor \u20ac83 million. The acquisition strengthens our paints
\nbusiness and footprint in Spain. The transaction included
\nthree production facilities and seven logistics and service
\ncenters for decorative paints. Based on the final purchase
\nprice
allocation, the transaction resulted in \u20ac16 million of
\ngoodwill
(non-deductible for tax purposes), \u20ac20 million of
\nother intangible assets and \u20ac47 million of property, plant
\nand equipment. The goodwill is mainly attributable to
\nsynergies expected to be achieved from integrating the
\ncompany into the group. Titan Paints is being integrated
\nin business unit Decorative Paints Europe, Middle East
\nand Africa.
\nRecognized fair values at acquisition
\nLankwitzer
\nGrupo Lackfabrik
\nOrbis S.A.,
GmbH,
Total
\nIn \u20ac millions
Colombia
Germany
Other
2022
\nOther intangibles
259
17
\u2014
276
\nProperty, plant and
121
4
\u2014
125
\nequipment
\nRight-of-use assets
8
2
\u2014
10
\nAssociates and joint
5
\u2014
\u2014
5
\nventures
\nInventories
91
6
\u2014
97
\nTrade and other receivables
98
2
(1)
99
\nCash and cash equivalents
14
\u2014
\u2014
14
\nLong-term debt
(79)
(2)
\u2014
(81)
\nProvisions
(9)
\u2014
\u2014
(9)
\nDeferred tax assets/
(104)
\u2014
\u2014
(104)
\n(liabilities)
\nNon controlling interests
(3)
\u2014
\u2014
(3)
\nTrade and other payables
(97)
\u2014
\u2014
(97)
\nNet identi\ufb01able assets
304
29
(1)
332
\nand liabilities
\nGoodwill
262
7
(7)
262
\nPurchase consideration
566
36
(8)
594
\nCash and cash equivalents
(14)
\u2014
\u2014
(14)
\nacquired
\nTo be received in 2023 and
\u2014
\u2014
8
8
\nlater years
\nNet cash out\ufb02ow
552
36
\u2014
588
\nDivestments
\nIn 2022 and 2021, no significant divestments occurred.
\n109
AkzoNobel Report 2022
|
Financial statements
Note 3 SEGMENT INFORMATION
\nDecorative Paints
\nWe provide decorative paints to both the professional and
\nthe do-it-yourself markets. We supply a variety of quality
\nproducts for every situation and surface, including paints,
\nlacquers and varnishes. We also offer a range of mixing
\nmachines and color concepts for the building and renova-
\ntion industry.
\nThe business units in the operating segment Decora-
\ntive Paints are set up regionally, as the paints business is
\nmanaged per region. Refer to Note 5 for a disaggregation
\nof revenues per region.
\nPerformance Coatings
\nWe are a supplier of performance coatings that protect
\nand enhance ships, cars, aircraft, yachts and architectural
\ncomponents (structural steel, building products, flooring),
\nconsumer goods (mobile devices, appliances, beverage
\ncans, furniture) and oil and gas facilities. The business
\nunits in the operating segment Performance Coatings
\nare set up per product/end market as the segment is
\nmanaged based on product/end market combinations.
\nRefer to Note 5 for a disaggregation of revenues per
\nproduct/end market.
\nThe tables in this Note include Alternative Performance
\nMeasures (APMs). Refer to Note 4 for further information
\non these APMs.
\nInformation per reportable segment
\nRevenue (third
Amortization and
Operating
Identi\ufb01ed
Adjusted
Adjusted
OPI
\nparties)
depreciation
income
items
\n1
\noperating income
\n1
\nEBITDA
\n1
\nEBITDA
\n1
\nROS%
\n1,2
\nmargin%
\n1,2
\nIn \u20ac millions
2021
2022
2021
2022
2021
\n3
\n2022
2021
\n3
\n2022
2021
\n3
\n2022
2021
\n3
\n2022
2021
\n3
\n2022
2021
\n3
\n2022
2021
\n3
\n2022
\nDecorative Paints
3,979
4,371
(154)
(154)
622
392
42
(5)
580
397
776
546
727
552
14.6
9.1
15.6
9.0
\nPerformance Coatings
5,603
6,472
(160)
(171)
616
444
2
(49)
614
493
776
615
773
664
11.0
7.6
11.0
6.9
\nCorporate and other
5
3
(37)
(43)
(120)
(128)
(18)
(27)
(102)
(101)
(83)
(85)
(64)
(59)
\nTotal
9,587
10,846
(351)
(368)
1,118
708
26
(81)
1,092
789
1,469
1,076
1,436
1,157
11.4
7.3
11.7
6.5
\n1
\nRefer to the glossary for definitions of the APMs.
\n2
\nROS% and OPI margin for Corporate and other is not shown, as this is
\nnot meaningful.
\n3
\nOperating income, adjusted operating income, EBITDA and adjusted EBITDA (and related measures)
\nper segment for 2021 have been updated to reflect changes in the financial reporting structure related
\nto a narrower definition of corporate activities and corporate costs in corporate and other activities.
\nInformation per reportable segment
\nInvested capital
Total assets
Total liabilities
Capital expenditures
\n1
\nROI%
\n1,2
\nIn \u20ac millions
2021
2022
2021
\n3
\n2022
2021
\n3
\n2022
2021
2022
2021
2022
\nDecorative Paints
3,022
3,604
5,591
5,890
1,862
1,581
108
91
20.2
10.8
\nPerformance Coatings
3,671
3,950
5,686
6,270
1,944
2,083
147
167
17.4
12.7
\nCorporate and other
428
581
2,601
2,581
4,436
6,529
33
34
\nTotal
7,121
8,135
13,878
14,741
8,242
10,193
288
292
16.0
9.8
\n1
\nRefer to the glossary for the definition of capital expenditures and ROI%.
\n2
\nROI% for Corporate and other is not shown, as this is not meaningful.
\n3
\nAs from 2022, total assets and total liabilities per segment exclude intercompany balances. Total assets
\nand total liabilities per segment for 2021 have been restated.
\nRegional information
\nIntangible assets and property,
\nRevenue by region of\u00a0destination
plant and equipment
Invested capital
Capital expenditures
\nIn \u20ac millions
2021
2022
2021
2022
2021
2022
2021
2022
\nThe Netherlands
335
319
1,206
1,223
1,787
1,900
45
45
\nOther EMEA countries
4,473
4,714
1,777
1,753
2,555
2,679
100
95
\nNorth Asia
1,735
1,728
1,203
1,162
969
965
45
40
\nSouth Asia Pacific
1,137
1,371
516
526
639
677
46
54
\nNorth America
1,163
1,416
602
648
809
890
37
42
\nLatin America*
744
1,298
186
728
362
1,024
15
16
\nTotal
9,587
10,846
5,490
6,040
7,121
8,135
288
292
\n* Previously reported as South America.
\n110
AkzoNobel Report 2022
|
Financial statements
Note 4 ALTERNATIVE PERFORMANCE
\nMEASURES
\nIn presenting and discussing AkzoNobel\u2019s (segmental)
\noperating results, management uses certain alterna-
\ntive performance measures not defined by IFRS, which
\nexclude the so-called identified items. ldentified items are
\nspecial charges and benefits, results on acquisitions and
\ndivestments, major restructuring and impairment charges,
\nand charges and benefits related to major legal, envi-
\nronmental and tax cases. These alternative performance
\nmeasures should not be viewed in isolation as alternatives
\nto the equivalent IFRS measures and should be used as
\nsupplementary information in conjunction with the most
\ndirectly comparable IFRS measures. Alternative perfor-
\nmance measures do not have a standardized meaning
\nunder IFRS and therefore may not be comparable to
\nsimilar measures presented by other companies. Where a
\nnon-financial measure is used to calculate an operational
\nor statistical ratio, this is also considered an alternative
\nperformance measure.
\nOperating income, adjusted operating income, EBITDA
\nand adjusted EBITDA (and related measures) per segment
\nfor 2021 have been updated to reflect changes in the
\nfinancial reporting structure related to a narrower definition
\nof corporate activities and corporate costs in corporate
\nand other activities.
\nThe tables in this note reconcile the alternative perfor-
\nmance measures used in the segment information (Note 3)
\nto the nearest IFRS measure.
\nRestructuring costs
\nRestructuring costs primarily relate to costs for accruals for
\ncertain employee benefits and for costs which are directly
\nassociated with plans to exit or cease specific activities
\nand closing down of facilities.
\nAlternative performance measures
\n2021
2022
\nContinuing
Discontinued
Continuing
Discontinued
\nIn \u20ac millions
operations
operations
Total
operations
operations
Total
\nOperating income
1,118
\u2014
1,118
708
\u2014
708
\nAPM adjustments to operating income
\n- Restructuring costs
28
\u2014
28
80
\u2014
80
\n-
Brazil ICMS case
(42)
\u2014
(42)
\u2014
\u2014
\u2014
\n- UK pensions past service credit
(23)
\u2014
(23)
\u2014
\u2014
\u2014
\n- Acquisition related costs
11
\u2014
11
9
\u2014
9
\n- Other
\u2014
\u2014
\u2014
(8)
\u2014
(8)
\nTotal APM adjustments (identi\ufb01ed
(26)
\u2014
(26)
81
\u2014
81
\nitems) to operating income
\nAdjusted operating income
1,092
\u2014
1,092
789
\u2014
789
\nPro\ufb01t for the period attributable to
823
6
829
362
(10)
352
\nshareholders of the company
\nAdjustments to operating income
(26)
\u2014
(26)
81
\u2014
81
\nAdjustments to interest
(29)
\u2014
(29)
(10)
\u2014
(10)
\nAdjustments to income tax
(15)
\u2014
(15)
(5)
\u2014
(5)
\nAdjustments to discontinued operations
\u2014
(8)
(8)
\u2014
\u2014
\u2014
\nTotal APM adjustments
(70)
(8)
(78)
66
\u2014
66
\nAdjusted pro\ufb01t for the period attribu-
753
(2)
751
428
(10)
418
\ntable to shareholders of the company
\nBrazil ICMS case
\nIn May 2021, the Brazilian Supreme Court (STF) recog-
\nnized the right to deduct state tax on goods and services
\n(ICMS) from the calculation basis of the Social Integration
\nProgram-PIS (Programa de Integra\u00e7\u00e3o Social) and the
\nFinancing of Social Security-COFINS (Contribui\u00e7\u00e3o para
\nFinanciamento da Seguridade Social). This STF decision
\ncovers a multi-year period prior to 2018. In 2021, a full-
\nyear net gain of \u20ac64 million was recognized in net income,
\nof which \u20ac42 million in Other results (in operating income),
\n\u20ac28 million in interest income, \u20ac14 million in income tax
\n(loss) and (net) \u20ac8 million in discontinued operations.
\nUK pensions past service credit
\nFollowing a court decision in April 2021, which allowed the
\namendment of the scheme documentation of one of the
\ncompany\u2019s UK pension funds, a past service credit (gain)
\nwas recognized in 2021.
\nAPM adjustments to interest
\nIn 2022, interest income of \u20ac10 million was recognized
\nrelated to the UK ACT case, refer to a description of the
\nACT case below. Adjustments to interest in 2021 included
\nan interest gain of \u20ac28 million from the Brazil ICMS case.
\nAPM adjustments to income tax: UK ACT case
\nIn July 2021 the UK Supreme Court issued a further deci-
\nsion in a group litigation case the company participates in
\n(\u201cFranked Investment Income\u201d; filed in 2003).
\nThe company assessed the consequences of this judge-
\nment in 2021 and performed a further file review which,
\ntaking into account legal advice, resulted in the recognition
\nof a net tax benefit of \u20ac29 million in 2021. In 2022, upon
\nfinalization of the full assessment, a net tax charge of \u20ac13
\nmillion was recognized.
\nAPM adjustments to income tax: Other items
\nIn 2022, \u20ac19 million of tax benefits related to restructuring
\ncosts were recognized (2021: \u20ac8 million). The tax benefits
\nhave been partly offset by the \u20ac13 million net tax charge
\nrelated to the UK ACT case.
\nIn 2021, a gain of \u20ac12 million was included for the (net)
\nre-recognition of deferred tax assets. This gain was partly
\noffset by the income tax (loss) related to the Brazil ICMS
\ncase (\u20ac14 million) and the impact from tax rate changes
\n(\u20ac19 million).
\n111
AkzoNobel Report 2022
|
Financial statements
Adjusted operating income, OPI margin and ROS%
\nIn \u20ac millions
2021
2022
\nRevenue from third parties
\nDecorative Paints
3,979
4,371
\nPerformance Coatings
5,603
6,472
\nCorporate and other
5
3
\nTotal
9,587
10,846
\nOperating income
\n1
\nDecorative Paints
622
392
\nPerformance Coatings
616
444
\nCorporate and other
(120)
(128)
\nTotal
1,118
708
\nTotal APM adjustments (identi\ufb01ed items)
\n1, 2
\nDecorative Paints
42
(5)
\nPerformance Coatings
2
(49)
\nCorporate and other
(18)
(27)
\nTotal
26
(81)
\nAdjusted operating income
\n1, 2
\nDecorative Paints
580
397
\nPerformance Coatings
614
493
\nCorporate and other
(102)
(101)
\nTotal
1,092
789
\nOPI margin%
\n1, 2, 3
\nDecorative Paints
15.6
9.0
\nPerformance Coatings
11.0
6.9
\nCorporate and other
\nTotal
11.7
6.5
\nROS%
\n1, 2, 3
\nDecorative Paints
14.6
9.1
\nPerformance Coatings
11.0
7.6
\nCorporate and other
\nTotal
11.4
7.3
\n1
\nOperating income, adjusted operating income, EBITDA and adjusted EBITDA (and
\nrelated measures) per segment for 2021 have been updated to reflect changes in the
\nfinancial reporting structure related to a narrower definition of corporate activities and
\ncorporate costs in corporate and other activities.
\n2
\nRefer to the glossary for definitions of the APMs.
\n3
\nOPI margin and ROS% for Corporate and other is not shown, as this is not meaningful.
\nLeverage ratio
\nLeverage ratio is calculated as net debt/EBITDA. For the
\ncalculation of net debt, refer to Note 21. Leverage ratio
\nis included in Note 27 in the paragraph on capital risk
\nmanagement.
\nEBITDA
\n*
\n2021
2022
\nOperating
Depreciation and
Operating
Depreciation and
\nIn \u20ac millions
income
amortization
EBITDA
income
amortization
EBITDA
\nDecorative Paints
622
(154)
776
392
(154)
546
\nPerformance Coatings
616
(160)
776
444
(171)
615
\nCorporate and other
(120)
(37)
(83)
(128)
(43)
(85)
\nTotal
1,118
(351)
1,469
708
(368)
1,076
\n*
\nRefer to the glossary for definitions of the APMs.
\nAdjusted EBITDA
\n*
\n2021
2022
\nAdjusted
Depreciation and
Adjusted
Depreciation and
\noperating
amortization exclu-
Adjusted
operating
amortization exclu-
Adjusted
\nIn \u20ac millions
income
ding identi\ufb01ed items
EBITDA
income
ding identi\ufb01ed items
EBITDA
\nDecorative Paints
580
(147)
727
397
(155)
552
\nPerformance Coatings
614
(159)
773
493
(171)
664
\nCorporate and other
(102)
(38)
(64)
(101)
(42)
(59)
\nTotal
1,092
(344)
1,436
789
(368)
1,157
\n*
\nRefer to the glossary for definitions of the APMs.
\nAdjusted earnings per share
\nIn \u20ac millions
2021
2022
\nProfit for the period attributable to
823
362
\nshareholders of the company from
\ncontinuing operations
\nAPM adjustments to operating income
(26)
81
\nAPM adjustments to interest
(29)
(10)
\nAPM adjustments to income tax
(15)
(5)
\nAdjusted pro\ufb01t from continuing
753
428
\noperations attributable to share-
\nholders of the company*
\nWeighted average number of shares
185.0
174.7
\n(in millions)
\nEarnings per share from continuing
4.45
2.07
\noperations (in \u20ac)
\nAdjusted earnings per share from
4.07
2.45
\ncontinuing operations (in \u20ac)
\n*
Refer to the glossary for definitions of the APMs.
\nROI%
\nIn \u20ac millions
2021
2022
\nAverage invested capital
\n1
\nDecorative Paints
2,872
3,678
\nPerformance Coatings
3,520
3,894
\nCorporate and other
437
490
\nTotal
6,829
8,062
\nAdjusted operating income
\n1, 2
\nDecorative Paints
580
397
\nPerformance Coatings
614
493
\nCorporate and other
(102)
(101)
\nTotal
1,092
789
\nROI%
\n3
\nDecorative Paints
20.2
10.8
\nPerformance Coatings
17.4
12.7
\nCorporate and other
\n3
\nTotal
16.0
9.8
\n1
\nRefer to the glossary for definitions of the APMs.
\n2
\nOperating income, adjusted operating income, EBITDA and adjusted EBITDA (and
\nrelated measures) per segment for 2021 have been updated to reflect changes in
\nthe financial reporting structure related to a narrower definition of corporate activities
\nand corporate costs in corporate and other activities.
\n3
\nROI% for Corporate and other is not shown, as this is not meaningful.
\n112
AkzoNobel Report 2022
|
Financial statements
Note 5 REVENUE
\nAkzoNobel derives revenue from the transfer of goods
\nand services at a point in time and over time in the major
\nproduct lines and geographical regions as disclosed in the
\ntable in this Note.
\nFor the receivables, which are included in Trade and other
\nreceivables, reference is made to Note 17.
\nAs at December 31, 2022, and at December 31, 2021, no
\nsignificant contract assets were recognized.
\nAs at December 31, 2022, the amount of contract
\nliabilities deferred to be recognized over time in 2023 was
\n\u20ac4 million. These contract liabilities primarily relate to
\nshipping, training and certain technical services, for which
\nrevenue is recognized over time. The amount of \u20ac3 million
\nincluded in contract liabilities at the beginning of the period
\nhas been recognized as revenue during the year 2022
\n(2021: \u20ac3 million).
\nRevenue disaggregation
\nDecorative Paints
Performance Coatings
Other
Total
\nIn \u20ac millions
2021
2022
2021
2022
2021
2022
2021
2022
\nPrimary geographical markets - revenue from third parties
\nThe Netherlands
231
206
99
110
5
3
335
319
\nOther EMEA countries
2,198
2,199
2,275
2,515
\u2014
\u2014
4,473
4,714
\nNorth Asia
560
564
1,175
1,164
\u2014
\u2014
1,735
1,728
\nSouth Asia Pacific
513
608
624
763
\u2014
\u2014
1,137
1,371
\nNorth America
\u2014
\u2014
1,163
1,416
\u2014
\u2014
1,163
1,416
\nLatin America
\n1
\n477
794
267
504
\u2014
\u2014
744
1,298
\nTotal
3,979
4,371
5,603
6,472
5
3
9,587
10,846
\nMajor goods/service lines - revenue from third parties
\nDecorative Paints Europe, Middle East and Africa
2,429
2,405
\u2014
\u2014
\u2014
\u2014
2,429
2,405
\nDecorative Paints Latin America
\n2
\n477
794
\u2014
\u2014
\u2014
\u2014
477
794
\nDecorative Paints Asia
1,073
1,172
\u2014
\u2014
\u2014
\u2014
1,073
1,172
\nPowder Coatings
\u2014
\u2014
1,315
1,376
\u2014
\u2014
1,315
1,376
\nMarine and Protective Coatings
\u2014
\u2014
1,164
1,374
\u2014
\u2014
1,164
1,374
\nAutomotive and Specialty Coatings
\u2014
\u2014
1,231
1,390
\u2014
\u2014
1,231
1,390
\nIndustrial Coatings
\u2014
\u2014
1,893
2,181
\u2014
\u2014
1,893
2,181
\nPerformance Coatings Other
\n2
\n\u2014
\u2014
\u2014
151
\u2014
\u2014
\u2014
151
\nCorporate and other
\u2014
\u2014
\u2014
\u2014
5
3
5
3
\nTotal
3,979
4,371
5,603
6,472
5
3
9,587
10,846
\nTiming of revenue recognition
\nGoods transferred at a point in time
3,923
4,284
5,405
6,258
\u2014
\u2014
9,328
10,542
\nServices transferred over time
56
87
198
214
5
3
259
304
\nTotal
3,979
4,371
5,603
6,472
5
3
9,587
10,846
\n1
\nPreviously reported as South America.
\n2
\nDecorative Paints Latin America includes Grupo Orbis revenues as from April 2022 to the extent these
\nrelate to the Decorative Paints segment. Performance Coatings Other relates to Grupo Orbis revenues
\n(as from April 2022) to the extent these relate to the Performance Coatings segment.
\n113
AkzoNobel Report 2022
|
Financial statements
Note 6 OPERATING INCOME
\nIn 2022, operating income was lower at \u20ac708 million
\n(2021: \u20ac1,118 million), as a result of lower volumes and
\ndespite pricing initiatives more than compensating for raw
\nmaterial and freight cost inflation. Operating expenses
\nincreased as a result of higher manufacturing and supply
\nchain costs. OPI margin at 6.5% (2021: 11.7%).
\nCosts by nature 2022
\nEmployee
Purchases and
\nIn \u20ac millions
bene\ufb01ts
Amortization
Depreciation
other costs
Total
\nCost of sales
(550)
(1)
(152)
(6,220)
(6,923)
\nSelling and distribution expenses
(965)
(57)
(93)
(1,193)
(2,308)
\nGeneral and administrative expenses
(263)
(24)
(24)
(338)
(649)
\nResearch and development expenses
(182)
(5)
(12)
(59)
(258)
\nOther results
\u2014
\u2014
\u2014
\u2014
\u2014
\nTotal
(1,960)
(87)
(281)
(7,810)
(10,138)
\nCosts by nature 2021
\nEmployee
Purchases and
\nIn \u20ac millions
bene\ufb01ts
Amortization
Depreciation
other costs
Total
\nCost of sales*
(529)
\u2014
(155)
(4,999)
(5,683)
\nSelling and distribution expenses*
(832)
(50)
(90)
(1,069)
(2,041)
\nGeneral and administrative expenses
(267)
(16)
(23)
(276)
(582)
\nResearch and development expenses
(168)
(4)
(13)
(45)
(230)
\nOther results
23
\u2014
\u2014
44
67
\nTotal
(1,773)
(70)
(281)
(6,345)
(8,469)
\n*
Cost of sales and selling and distribution expenses for 2021 have been updated to
\nreflect changes in the financial reporting structure related to recent changes in the
\norganizational set-up and related governance structure, leading to a reclassification
\nbetween cost of sales (decrease) and selling and distribution expenses (increase)
\nof \u20ac49 million.
\nNote 7 EMPLOYEE BENEFITS
\nSalaries, wages and other employee bene\ufb01ts in
\noperating income
\nIn \u20ac millions
2021
2022
\nSalaries and wages
(1,395)
(1,517)
\nPost-retirement cost
(115)
(146)
\nOther social charges
(263)
(297)
\nTotal
(1,773)
(1,960)
\nAverage number of employees of total AkzoNobel
\nAverage number during the year
2021
2022
\nDecorative Paints
12,500
13,800
\nPerformance Coatings
17,000
18,000
\nCorporate and other
3,200
3,300
\nTotal
32,700
35,100
\nAverage number of employees in the Netherlands
\nAverage number during the year
2021
2022
\nDecorative Paints
600
600
\nPerformance Coatings
1,100
1,100
\nCorporate and other
700
700
\nTotal
2,400
2,400
\nNumber of employees
\nAt year-end
2021
2022
\nDecorative Paints
12,500
14,000
\nPerformance Coatings
17,200
17,900
\nCorporate and other
3,100
3,300
\nTotal
32,800
35,200
\nThe average number of employees working outside the
\nNetherlands was 32,700 (2021: 30,300). In 2022, the
\nnumber of employees increased by 7% to 35,200 people
\n(year-end 2021: 32,800 people). Acquisitions in 2022
\nadded around 3,000 people, mainly relating to Grupo
\nOrbis employees.
\n114
AkzoNobel Report 2022
|
Financial statements
SHARE-BASED COMPENSATION
\nShare-based compensation relates to the equity-settled
\nperformance-related share plan and the restricted share
\nplans, as well as the share-matching plan. Charges recog-
\nnized in the 2022 statement of income for share-based
\ncompensation amounted to \u20ac16 million and are included in
\nsalaries and wages (2021: \u20ac18 million).
\nPerformance-related and restricted share plans
\nUnder the performance-related share plan and the
\nrestricted share plans, a number of conditional shares are
\ngranted to the members of the Board of Management,
\nmembers of the Executive Committee, executives and
\ncertain other employee categories each year. The number
\nof participants of the performance-related share plan
\nand the restricted share plans at year-end 2022 was 616
\n(2021: 479). The shares of the performance-related and
\nrestricted share plan series 2019-2021 have vested and
\nwere delivered to the participants in 2022.
\nThe performance targets for the conditional grant of
\nperformance-related shares of the 2020-2022 plan for
\nthe Board of Management and the Executive Committee
\nare linked for 50% to the relative TSR performance of the
\ncompany compared with the peer group and for 50% to
\nthe ROI performance of the company. The targets for the
\n2021-2023 and 2022-2024 performance-related share
\nFair value performance-related shares in \u20ac
\nNon-market
\nbased
\nOpening share
Market condi-
performance
Expected
Risk free
\nSeries
price per:
Fair Value
tion (TSR)
\n4
\nconditions
\n5
\nShare price
volatility
interest rate
\n2019 - 2021
January 2, 2019
61.09
52.57
69.60
69.60
20.12%
(0.04)%
\n2020 - 2022
April 21, 2020
\n1
\n53.42
42.95
63.88
63.88
21.42%
(0.33)%
\n2021 - 2023
April 22, 2021
\n2
\n103.20
NA
103.20
103.20
NA
NA
\n2022 - 2024
February 23, 2022
\nOctober 3, 2022
\n3
\n88.28
NA
88.28
88.28
NA
NA
\n2022 - 2024
57.70
NA
57.70
57.70
NA
NA
\n1
\nDate on which the Supervisory Board approved the use of the average share price calculation method to determine the number of shares granted.
\n2
\nDate of the AGM at which the new L
TI performance criteria for the Board of Management were approved.
\n3
\nDate on which Mr. Poux-Guillaume started working for AkzoNobel.
\n4
\n50% for the 2019-2021 and 2020-2022 grants, no longer applicable as from the 2021-2023 grant.
\n5
\n50% for the 2019-2021 and 2020-2022 grants, 100% as from the 2021-2023 grant.
\ngrants for the Board of Management and the Executive
\nCommittee are for 20% linked to revenue growth, for
\n40% to adjusted EBITDA, for 20% to ROI and for 20% to
\nperformance against Environmental, Social and Gover-
\nnance (ESG) KPIs. A two-year holding restriction applies.
\nThe plans for the executives and certain non-executive
\nemployee categories are a restricted share plan without
\nany performance conditions, whereby the conditional
\ngrant of shares will vest upon the condition that they
\nremain in service with the company during the three-year
\nvesting period. A one-year holding restriction applies for
\nthe executives.
\nThe conditional shares of the 2020-2022 performance
\nshare plan for the AkzoNobel participants vested for
\n0% (series 2019-2021: 58.33%), including extraordinary
\ndividend shares of 7.33% (series 2019-2021: 13.14%),
\nthe final vesting percentage amounted to 0% (series
\n2019-2021: 66.00%). The reason some shares still vest is
\nbecause AkzoNobel is legally bound to an agreement
\nwith a former member of the Executive Committee regard-
\ning the vesting of shares for this individual, as well
\nas a conditional share grant awarded to new Execu-
\ntive Committee Members at the time of their hiring, who
\nreceived these grants as buy-out from the contract at
\ntheir previous employer.
\nShare plans of AkzoNobel employees
\nEnd of
Balance at
Subject to
Subject
Balance at
\nPerformance/
Award
Vesting
holding
January 1,
Awarded
Vested in
Forfeited
Dividend in
performance
Unvested
to holding
December
\nShare plan
Vesting period
date
date
period
2022
in 2022
2022
in 2022
2022
condition
in 2022
period
31, 2022
\n2019 \u2013 2021 Restricted Share Plan E*
3 years
1/1/2019
1/1/2022
1/1/2023
157,455
\u2014
(157,455)
\u2014
\u2014
NA
\u2014
157,455
\u2014
\n2019 \u2013 2021 Performance Share Plan
3 years
1/1/2019
1/1/2022
1/1/2024
45,830
\u2014
(45,830)
\u2014
\u2014
\u2014
\u2014
45,830
\u2014
\n2020 \u2013 2022 Restricted Share Plan E*
3 years
1/1/2020
1/1/2023
1/1/2024
157,095
\u2014
(7,567)
(13,127)
\u2014
NA
136,401
136,401
136,401
\n2020 \u2013 2022 Performance Share Plan
3 years
1/1/2020
1/1/2023
1/1/2025
60,692
\u2014
\u2014
(51,286)
1,566
\u2014
10,972
10,972
10,972
\n2020 \u2013 2022 Restricted Share Plan NE*
3 years
4/1/2020
4/1/2023
NA
5,890
\u2014
\u2014
(210)
\u2014
NA
5,680
\u2014
5,680
\n2021 \u2013 2023 Restricted Share Plan E*
3 years
4/1/2021
4/1/2024
4/1/2025
176,947
509
(3,600)
(18,906)
\u2014
NA
154,950
154,950
154,950
\n2021 \u2013 2023 Performance Share Plan
3 years
1/1/2021
1/1/2024
1/1/2026
63,404
\u2014
\u2014
(3,206)
1,491
61,689
61,689
61,689
61,689
\n2021 \u2013 2023 Restricted Share Plan NE*
3 years
4/1/2021
4/1/2024
NA
27,140
\u2014
\u2014
(1,560)
\u2014
NA
25,580
\u2014
25,580
\n2022 \u2013 2024 Restricted Share Plan E*
3 years
4/1/2022
4/1/2025
4/1/2026
\u2014
189,797
(1,171)
(17,632)
\u2014
NA
170,994
170,994
170,994
\n2022 \u2013 2024 Performance Share Plan
3 years
1/1/2022
1/1/2025
1/1/2027
\u2014
84,820
\u2014
\u2014
2,188
87,008
87,008
87,008
87,008
\n2022 \u2013 2024 Restricted Share Plan NE*
3 years
4/1/2022
4/1/2025
NA
\u2014
49,247
\u2014
(2,065)
\u2014
NA
47,182
\u2014
47,182
\nTotal
694,453
324,373
(215,623)
(107,992)
5,245
148,697
700,456
825,299
700,456
\n* E means executive plan; NE means non-executive plan.
\n115
AkzoNobel Report 2022
|
Financial statements
The share price of a common AkzoNobel share at year
\nend 2022 amounted to \u20ac62.56 (2021: \u20ac96.50).
\nFair value of restricted and performance-
\nrelated shares
\nThe fair value of the restricted shares of the 2022-2024
\ngrant to executives, amounting to \u20ac82.47, is based on the
\nopening share price on February 23, 2022, of \u20ac88.28 and
\nthe expected dividend yield of 2.24%. The fair value of the
\nrestricted shares of the 2022-2024 grant to non-execu-
\ntives, amounting to \u20ac76.50, is based on the average of the
\nopening share prices during the grant period of April 26
\nuntil May 9, 2022, of \u20ac82.54 and the expected dividend
\nyield of 2.40%. The fair value of the performance-related
\n2022-2024 grant, based on the opening share price on
\nFebruary 23, 2022, amounts to \u20ac88.28. The fair value of
\nthe performance-related share grant to Mr. Poux-Guillau-
\nme of the 2022-2024 series, that was approved in the
\nEGM on September 6, 2022, based on the opening share
\nprice on October 3, 2022, amounts to \u20ac57.70. For the
\n2022-2024 and 2021-2023 grants of performance-related
\nshares all conditions are non-market based performance
\nconditions. The fair value of the 2021-2023 grant is
\nbased on the share price as per April 22, 2021, the date
\nof the AGM at which the new LTI performance criteria
\nfor the Board of Management were approved. The fair
\nvalue of the performance-related shares of the 2020-2022
\ngrant is for 50% based on a market condition (TSR) and
\nfor 50% based on a non-market based performance
\nconditions (ROI).
\nThe TSR part of the award is valued applying a Monte
\nCarlo simulation model and the other part is valued based
\non the share price at grant date. The parameters applied
\nfor the fair value calculations are: share price at grant date
\n(opening of first trading date from grant date), expected
\nvolatility (based on the share price development over the
\npast three years of AkzoNobel), and risk-free interest rate
\n(based on a Dutch zero-coupon government bond).
\nShare-matching plan
\nThe members of the Board of Management and the
\nmembers of the Executive Committee are eligible to
\nparticipate in the share-matching plan. Under certain
\nconditions, members who invest part of their short-term
\nincentive payment in AkzoNobel shares may have such
\nshares matched by the company one-on-one. During
\n2022, no potential matching shares were matched as the
\nmembers of the Board of Management and the members
\nof the Executive Committee were not eligible for matching
\nshares on the 2019 series. In 2022, the members of the
\nBoard of Management and the members of the Executive
\nCommittee invested part of their 2021 short-term incentive
\nin AkzoNobel shares, leading to 4,877 potential match-
\ning shares on December 31, 2022. For an overview of
\nthe matching shares outstanding for the members of the
\nBoard of Management per December 31, 2022, we refer
\nto the Remuneration report.
\nFair value of matching shares
\nThe fair value of the matching shares (\u20ac75.61) was based
\non the share price on the investment date (April 21, 2022:
\n\u20ac81.40), discounted for expected dividends over the
\nholding period (dividend yield: 2.43%).
\nNote 8 FINANCING INCOME
\nAND EXPENSES
\nFinancing income and expenses
\nIn \u20ac millions
2021
2022
\nFinancing income
12
19
\nFinancing expenses
(74)
(106)
\nNet interest on net debt
(62)
(87)
\nOther interest
\nFinancing income related to post-retire-
13
18
\nment benefits
\nInterest on provisions
3
17
\nExchange rate results
(21)
(85)
\nOther items
28
13
\nNet other \ufb01nancing credit/(charges)
23
(37)
\nTotal \ufb01nancing income and expenses
(39)
(124)
\nNet financing expenses for the year were \u20ac124 million
\n(2021: \u20ac39 million). Significant variances are:
\n\u2022
Net interest on net debt increased by \u20ac25 million to \u20ac87
\nmillion (2021: \u20ac62 million) mainly as a result of higher
\ninterest cost on debt from bonds issuance, increased
\nshort-term debt and financing related to the Grupo
\nOrbis acquisition
\n\u2022
Interest income on provisions increased by \u20ac14 million
\nto \u20ac17 million (2021: \u20ac3 million) due to the impact from
\ndiscounting at higher discount rates
\n\u2022
Exchange rate results were \u20ac85 million negative (2021:
\n\u20ac21 million negative), and include \u20ac20 million expenses
\nfrom Argentina and T\u00fcrkiye hyperinflation accounting
\n\u2022
Other items in 2022 include \u20ac10 million interest income
\nfrom the UK ACT case (refer to Note 4 for further details
\non the UK ACT case). In 2021, an interest income
\nof \u20ac28 million related to the Brazil ICMS case was
\nincluded.
\nThe average interest rate used for capitalized interest was
\n1.7% (2021: 1.9%). Capitalized interest was negligible in
\nboth 2022 and 2021. The average interest rate on total
\ndebt was 2.1% (2021: 2.3%).
\nAccounting impact hyperin\ufb02ation accounting
\nWe have applied IAS 29 \u201cFinancial Reporting in Hyper-
\ninflationary Economies\u201d for T\u00fcrkiye as from January 1,
\n2022. For Argentina, hyperinflation accounting was already
\napplied as from January 1, 2018. In addition, and in line
\nwith IAS 21 \u201cThe Effect of Changes in Foreign Exchange
\nRates\u201d, end of month rates are used to translate both the
\nbalance sheet and the statement of income into euros.
\nFor T\u00fcrkiye, the revaluation effect on the non-monetary
\nassets at January 1, 2022, was \u20ac16 million positive (after
\ntaxes), recorded as a restatement to opening sharehold-
\ners\u2019 equity. In addition, the opening balance of intangible
\nassets has been restated by \u20ac1 million (refer to Note 11)
\nand the opening balance of property, plant and equip-
\nment has been restated by \u20ac15 million (refer to Note 12).
\nRefer to Note 9 Income tax for the related opening balance
\nimpact on deferred taxes.
\nThe application of hyperinflation accounting and the use
\nof end of month rates to translate the statement of income
\ninto euros resulted in an \u20ac5 million positive impact on
\nrevenues, an \u20ac46 million negative impact on operating
\nincome and an \u20ac63 million negative impact on net income
\nfor the year.
\nNote 9 INCOME TAX
\nPre-tax income from continuing operations for the year
\namounted to a profit of \u20ac602 million (2021: \u20ac1,105 million).
\nThe net tax charges related to continuing operations are
\nincluded in the statement of income as shown in this Note
\nand amount to \u20ac214 million (2021: \u20ac246 million), leading to
\nan effective tax rate of 35.5% (2021: 22.3%).
\n116
AkzoNobel Report 2022
|
Financial statements
Classi\ufb01cation of current and deferred tax result
\nIn \u20ac millions
2021
2022
\nCurrent tax expense for
\nThe year
(205)
(198)
\nAdjustments for previous years
36
(24)
\nTotal current tax expense
(169)
(222)
\nDeferred tax expense for
\nOrigination and r
eversal of\u00a0temporary
(75)
21
\ndifferences and tax losses
\n(Derecognition)/recognition of deferred
18
(6)
\ntax assets
\nChanges in tax rates
(20)
(7)
\nTotal deferred tax expense
(77)
8
\nTotal
(246)
(214)
\nClassi\ufb01cation of current and deferred tax result
\nA breakdown into current and deferred tax expenses
\nand a split of the main categories is provided in the table
\nabove. For comparative reasons, this table presents the
\nincome tax expense excluding the impact from discontin-
\nued operations. The total deferred tax in the statement of
\nincome including discontinued operations was a credit of
\n\u20ac8 million (2021: \u20ac77 million charge). The total tax charge
\nincluding discontinued operations was \u20ac211 million (2021:
\n\u20ac248 million).
\nAdjustments for prior years in 2022 is mainly related to a
\nnet tax charge of \u20ac13 million for the UK Advanced Corpo-
\nration Tax (ACT) case, which is further described in Note 4
\non Alternative Performance Measures due to its identified
\nnatur
e.\u00a0Origination and r
eversal of temporary differences
\nand tax losses is driven, amongst others, by timing differ-
\nences between recognition and payments for provisions,
\ntiming differences on depreciation and amortization for tax
\npurposes versus the consolidated financial statements,
\nand tax loss carryforwards utilized against profits of the
\nyear or new tax losses incurred. Changes in tax rates
\nin 2022 mainly relate to the changes in the UK tax rate
\n(2021: Dutch and UK tax rates).
\nEffective tax rate reconciliation
\nIn 2022, the effective income tax rate based on the state-
\nment of income is 35.5% (2021: 22.3%). A reconciliation
\nbetween the effective tax rate and the weighted average
\nstatutory income tax rate is provided in the next table.
\nFor comparative reasons, this table presents the effective
\nEffective tax rate reconciliation
\nin\u00a0%
2021
2022
\nCorporate tax rate in the Netherlands
25.0
25.8
\nEffect of tax rates in other countries
0.2
(2.2)
\nWeighted average statutory income tax rate
25.2
23.6
\nNon-taxable income
(3.0)
(2.8)
\nNon-deductible expenses
2.3
6.1
\n(Rerecognition)/derecognition of deferred tax
(1.6)
1.0
\nassets
\nNon-refundable withholding taxes
0.9
2.4
\nAdjustments for prior years
(3.3)
4.0
\nDeferred tax adjustment due to changes in tax
1.8
1.2
\nrates
\nEffective tax rate
22.3
35.5
\nconsolidated tax rate excluding the impact from discon-
\ntinued operations. Including these results, the effective
\nconsolidated tax rate is 35.8% (2021: 22.3%).
\nNon-taxable income is mainly related to R&D credits and
\nthe tax exemption for investments (2021: interest on tax
\ncredits in Brazil, the Innovation box in the Netherlands,
\nR&D credits and the tax exemption for investments).
\nNon-deductible expenses are mainly related to the
\neffects of Argentina and T\u00fcrkiye hyperinflation accounting
\nand certain non-deductible costs in various countries
\n(2021: non-deductible costs and the effects of Argentina
\nhyperinflation accounting).
\nOrigination of deferred tax assets and liabilities 2022
\nRecognized in
\nBalance at
equity/Other
Balance at
\nJanuary 1,
Changes in
Recognized in comprehensive
December 31,
\nIn \u20ac millions
2022*
exchange rate
income
income
Acquisitions
2022
\nIntangible assets
(461)
23
\u2014
\u2014
(83)
(521)
\nProperty, plant and equipment*
75
2
(3)
\u2014
(17)
57
\nFinancial non-current assets
(406)
20
(25)
139
\u2014
(272)
\nPost-retirement benefit provisions
138
3
(12)
(53)
\u2014
76
\nOther provisions
28
\u2014
(3)
\u2014
\u2014
25
\nOther items
96
(2)
36
\u2014
(4)
126
\nTax credits
204
(1)
3
\u2014
\u2014
206
\nTax loss carryforwards
237
(9)
12
\u2014
\u2014
240
\nDeferred tax assets (liabilities)
(89)
36
8
86
(104)
(63)
\n*
Property, plant and equipment includes an opening balance adjustment of \u20ac3 million and other items of \u20ac1 million related to the
\napplication of IAS 29 \u201cFinancial Reporting in Hyperinflationary Economies\u201d in T\u00fcrkiye. Refer to Note 8 for further details.
\nOrigination of deferred tax assets and liabilities 2021
\nRecognized in
\nequity/Other
Balance at
\nBalance at
Changes in
Recognized in comprehensive
December 31,
\nIn \u20ac millions
January 1, 2021
exchange rate
income
income
Acquisitions
2021
\nIntangible assets
(417)
(23)
(17)
\u2014
(4)
(461)
\nProperty, plant and equipment
60
6
20
\u2014
(8)
78
\nFinancial non-current assets
(267)
(24)
(138)
23
\u2014
(406)
\nPost-retirement benefit provisions
156
4
(2)
(20)
\u2014
138
\nOther provisions
29
2
(3)
\u2014
\u2014
28
\nOther items
68
3
25
(2)
3
97
\nTax credits
184
\u2014
20
\u2014
\u2014
204
\nTax loss carryforwards
217
12
18
(12)
2
237
\nDeferred tax assets (liabilities)
30
(20)
(77)
(11)
(7)
(85)
\n117
AkzoNobel Report 2022
|
Financial statements
Deferred tax assets and liabilities per balance sheet item
\nDecember 31, 2021
December 31, 2022
\nIn \u20ac millions
Net balance
Assets
Liabilities
Net balance
Assets
Liabilities
\nIntangible assets
(461)
12
473
(521)
10
531
\nProperty, plant and equipment
78
123
45
56
124
68
\nFinancial non-current assets
(406)
25
431
(271)
6
277
\nPost-retirement benefit provisions
138
141
3
76
79
3
\nOther provisions
28
38
10
25
34
9
\nOther items
97
113
16
125
143
18
\nTax credits
204
204
\u2014
207
207
\u2014
\nTax loss carryforwards
237
237
\u2014
240
240
\u2014
\nTax assets/liabilities
(85)
893
978
(63)
843
906
\nSet-off of tax
\u2014
(411)
(411)
\u2014
(345)
(345)
\nNet deferred tax positions
\nExpiration year of loss carryforwards 2022
\n(85)
482
567
(63)
498
561
\nIn \u20ac millions
2023
2024
2025
2026
2027
Later
Unlimited
Total
\nDeferred
\ntax
\nTotal loss carryforwards
\u2014
1
1
2
13
56
3,014
3,087
779
\nLoss carryforwards not recognized in
\ndeferred tax assets
\n\u2014
(1)
(1)
\u2014
\u2014
(10)
(2,120)
(2,132)
(539)
\nTotal loss carryforwards recognized
\nExpiration year of loss carryforwards 2021
\n\u2014
\u2014
\u2014
2
13
46
894
955
240
\nIn \u20ac millions
2022
2023
2024
2025
2026
Later
Unlimited
Total
\nDeferred
\ntax
\nTotal loss carryforwards
1
\u2014
1
\u2014
3
17
3,131
3,153
795
\nLoss carryforwards not recognized in
\ndeferred tax assets
\n(1)
\u2014
(1)
\u2014
\u2014
(9)
(2,204)
(2,215)
(558)
\nTotal loss carryforwards recognized
\u2014
\u2014
\u2014
\u2014
3
8
927
938
237
\nThe impact of non-refundable withholding tax on the
\ntax rate is dependent on our relative share in the profit
\nof subsidiaries in countries that levy withholding tax on
\ndividends and on the timing of the remittance of such
\ndividends. Based on the Dutch tax system there is a
\nlimited credit for such taxes.
\nAdjustments for prior years in 2022 is mainly related to the
\nUK Advanced Corporation Tax (ACT) case, which is further
\ndescribed in Note 4 on Alternative Performance Measures
\ndue to its identified nature.
\nChanges in tax rates in 2022 mainly relate to the changes
\nin the UK tax rate (2021: Dutch and UK tax rates).
\nOrigination of deferred tax assets and liabilities
\nDeferred tax assets and liabilities originate from temporary
\ndifferences in various balance sheet line items, as well as
\nfrom tax credits and tax loss carryforwards. The tables
\non the previous page show the origination of deferred tax
\nassets and liabilities, and the movements thereof, for the
\nfinancial years 2022 and 2021.
\nReconciliation deferred tax assets and liabilities to
\nthe balance sheet
\nThe table on the left provides a reconciliation of the total
\ndeferred tax amounts for each of the originating items to
\nthe deferred tax asset and liability positions as included in
\nthe balance sheet.
\nDeferred tax assets recoverability assessment
\nIn assessing the recognition of deferred tax assets,
\nmanagement considers whether it is probable that some
\nportion or all of the deferred tax assets will be realized. The
\nultimate realization of the deferred tax assets is dependent
\nupon the generation of future taxable income against
\nwhich the deductible temporary differences, unused tax
\nlosses and unused tax credits can be utilized. Manage-
\nment considers the scheduled reversal of deferred tax
\nliabilities, projected future taxable income, and tax planning
\nstrategies in making this assessment. The amount of
\ndeferred tax assets considered realizable could change
\nif future estimates of projected taxable income during
\nthe carryforward period are revised. The majority of the
\namount of the non-current portion of deferred and
\ncurrent taxes will be recovered or settled after more than
\n12 months.
\nIn 2022 and 2021, deferred tax asset recoverability has
\nbeen assessed using taxable profit forecasts. In 2022,
\nthese assessments did not result in a significant net
\nderecognition or re-recognition of deferred tax assets
\n(2021: net re-recognition of \u20ac18 million).
\nBoth in 2022 and 2021, deferred tax assets not recog-
\nnized relate to tax loss carryforwards. The losses in the
\ntables on tax losses carried forward are gross amounts,
\nwith the tax impact included in the last column of the table.
\nFrom the total amount of recognized net deferred tax
\nassets, \u20ac206 million (2021: \u20ac151 million) is related to
\nentities that have suffered a loss in either the current or
\nthe previous year and where utilization is dependent on
\nfuture taxable profit in excess of the profit arising from the
\nreversal of existing taxable temporary differences. This
\nassessment is based on management\u2019s long-term projec-
\ntions and tax planning strategies.
\nA deferred tax liability is recognized for taxable temporary
\ndifferences related to investments in subsidiaries, branches
\n118
AkzoNobel Report 2022
|
Financial statements
and associates and interests in joint arrangements, to
\nthe extent that it is probable that these will reverse in the
\nforeseeable future. The expected net tax impact of the
\nremaining differences for which no deferred tax liabilities
\nhave been recognized is \u20ac55 million (2021: \u20ac31 million).
\nIncome tax recognized in equity
\nThe following table shows income tax items recognized in
\nequity by category.
\nIncome tax recognized in equity
\nIn \u20ac millions
2021
2022
\nCurrency exchange differences on inter-
1
2
\ncompany loans of a permanent nature
\nShare-based compensation
(2)
(2)
\nShare buyback
\u2014
2
\nPost-retirement benefits
3
86
\nChanges in tax rates
(11)
\u2014
\nIAS 29 opening balance adjustment
\u2014
(4)
\nTotal
(9)
84
\nCurrent tax
2
2
\nDeferred tax
(11)
82
\nTotal
(9)
84
\nImpact OECD Pillar Two Framework
\nAkzoNobel is closely monitoring progress on the OECD
\nPillar Two global minimum tax rate legislative framework in
\neach jurisdiction where the group has operations. At year-
\nend 2022, the group does not have sufficient information
\nto determine the potential quantitative impact. The recently
\nannounced safe harbor rules are likely to limit the financial
\nimpact in particular during the 3-year transitional period
\nduring which these safe harbor rules apply.
\nNote 10 EARNINGS PER SHARE
\nProfit for the period attributable to the shareholders of the
\ncompany was \u20ac352 million (2021: \u20ac829 million).
\nPro\ufb01t for the period
\nIn \u20ac millions
2021
2022
\nProfit before tax from continuing
1,105
602
\noperations
\nIncome tax
(246)
(214)
\nPro\ufb01t from continuing opera-
859
388
\ntions
\nProfit for the period attributable to
(36)
(26)
\nnon-controlling interests
\nPro\ufb01t for the period from
823
362
\ncontinuing operations attribut-
\nable to shareholders of the
\ncompany
\nProfit for the period from discon-
6
(10)
\ntinued operations attributable to
\nshareholders of the company
\nPro\ufb01t for the period attributable
829
352
\nto shareholders of the company
\nThe number of shares for the earnings per share calcula-
\ntion decreased as a result of the share buyback programs
\nof 2021 and 2022.
\nWeighted average number of common shares
\nNumber of shares
2021
2022
\nIssued common shares at
190,579,841
181,609,509
\nJanuary 1
\nEffect of issued common shares
225,806
186,077
\nduring the\u00a0year
\nEffect of share buyback program
(5,845,781)
(7,060,447)
\nShares for basic earnings per
184,959,866
174,735,139
\nshare for the year
\nEffect of dilutive shares
\nFor performance-related and
714,114
575,108
\nrestricted shares
\nFor share-matching plan
\u2014
3,251
\nShares for diluted earnings
185,673,980
175,313,498
\nper share
\nEarnings per share
\nin \u20ac
2021
2022
\nContinuing operations
\nBasic
4.45
2.07
\nDiluted
4.43
2.06
\nDiscontinued operations
\nBasic
0.03
(0.06)
\nDiluted
0.03
(0.05)
\nTotal operations
\nBasic
4.48
\n4.46
\n2.01
\nDiluted
2.01
\nRefer to Note 4 for the calculation of adjusted earnings
\nper share.
\nAkzoNobel Report 2022
|
Financial statements
119
Note 11 INTANGIBLE ASSETS
\nIntangible assets
\nCustomer
Other
\nIn \u20ac millions
Goodwill
Brands
lists
intangibles
Total
\n4,356
\nBalance at January 1, 2021
\nCost of acquisition
1,123
2,134
921
178
\nCost of internally developed intangibles
\u2014
\u2014
\u2014
212
212
\nAccumulated amortization/impairment
(27)
(190)
(546)
(251)
(1,014)
\nCarrying value at January 1, 2021
1,096
1,944
375
139
3,554
\n36
\nMovements in 2021
\nAcquisitions through business combinations
18
8
10
\u2014
\nInvestments - including internally developed intangibles
\u2014
\u2014
\u2014
35
35
\nAmortization
\u2014
(12)
(34)
(24)
(70)
\nChanges in exchange rates
41
90
5
(1)
135
\nTotal movements
59
86
(19)
10
136
\n4,564
\nBalance at December 31, 2021
\nCost of acquisition
1,182
2,239
972
171
\nCost of internally developed intangibles
\u2014
\u2014
\u2014
241
241
\nAccumulated amortization/impairment
(27)
(209)
(616)
(263)
(1,115)
\nCarrying value at December 31, 2021
1,155
2,030
356
149
3,690
\nImpact IAS 29 Hyperinflation T\u00fcrkiye*
\u2014
\u2014
\u2014
1
1
\nCarrying value at January 1, 2022
1,155
2,030
356
150
3,691
\n538
\nMovements in 2022
\nAcquisitions through business combinations
262
72
193
11
\nInvestments - including internally developed intangibles
\u2014
\u2014
\u2014
30
30
\nAmortization
\u2014
(15)
(40)
(32)
(87)
\nImpairments, including reversals thereof
\u2014
\u2014
\u2014
(2)
(2)
\nChanges in exchange rates
(40)
(22)
(36)
\u2014
(98)
\nTotal movements
222
35
117
7
381
\n4,999
\nBalance at December 31, 2022
\nCost of acquisition
1,405
2,288
1,127
179
\nCost of internally developed intangibles
\u2014
\u2014
\u2014
268
268
\nAccumulated amortization/impairment
(28)
(223)
(654)
(290)
(1,195)
\nCarrying value at December 31, 2022
1,377
2,065
473
157
4,072
\n* As per June 2022, T
\u00fcrkiye has been identified as a hyperinflationary economy. IAS 29
\n\u201cFinancial Reporting in Hyperinflationary Economies\u201d has been applied for our activities in
\nT\u00fcrkiye as from January 1, 2022. Refer to Note 8 for details on the financial impact from
\napplying IAS 29.
\nBrands as included in the table on the left comprise of
\nbrands with indefinite useful lives and brands with finite
\nuseful lives. Brands with indefinite useful lives are almost
\nfully related to Dulux, which is the major brand, due to its
\nglobal presence, high recognition and strategic nature.
\nOther intangibles include licenses, know-how, intellectual
\nproperty rights, software and development cost. Both at
\nyear-end 2022 and 2021, there were no material purchase
\ncommitments for individual intangible assets. No intangible
\nassets were registered as security for bank loans.
\nAcquisitions through business combinations
\nThe additions from acquisitions in 2022 primarily relate to
\nthe acquisition of Grupo Orbis S.A., Colombia, and of the
\nwheel liquid coatings business of Lankwitzer Lackfabrik
\nGmbH, Germany. In 2021, additions from acquisitions
\nprimarily related to the acquisition of Titan Paints in Spain.
\nRefer to Note 2 for disclosures on acquisitions.
\nChanges in exchange rates
\nChanges in exchange rates includes a \u20ac15 million posi-
\ntive adjustment from the IAS 29 hyperinflation impact for
\nT\u00fcrkiye and Argentina.
\nAnnual impairment testing
\nGoodwill and other intangibles with indefinite useful lives
\nare tested for impairment per business unit (one level
\nbelow segment level) annually or whenever an impairment
\ntrigger exists, applying the value-in-use method.
\nThe paints business of recently acquired Grupo Orbis has
\nbeen allocated to business unit Decorative Paints Latin
\nAmerica. The Grupo Orbis coatings businesses ultimately
\nwill be incorporated into the respective Performance
\nCoatings business units in 2023. For the interim period,
\nin 2022, these businesses are reported in business unit
\nPerformance Coatings Other.
\nThe impairment test is in principle based on cash flow
\nprojections of the five-year plan. Elements considered to
\ndetermine if a different approach would be more appropri-
\nate are mainly related to high growth/emerging economies,
\ngeo expansion opportunities, introduction of new product
\nranges and opportunities from market consolidation.
\nIn 2022, the above exception was applied for Decora-
\ntive Paints Asia, Decorative Paints Latin America and
\nPerformance Coatings Other (Grupo Orbis), for which the
\nrevenue growth and margin development projections were
\n120
AkzoNobel Report 2022
|
Financial statements
Goodwill and other intangibles per business unit
\nBrands with inde\ufb01nite
Other intangibles
\nGoodwill
useful lives
with \ufb01nite useful lives
Total intangibles
\nIn \u20ac millions, at December 31
2021
2022
2021
2022
2021
2022
2021
2022
\nDecorative Paints Europe, Middle East
114
107
837
837
146
136
1,097
1,080
\nand Africa
\nDecorative Paints Latin America
\u2014
138
87
102
\u2014
142
87
382
\nDecorative Paints Asia
9
8
928
901
31
21
968
930
\nPowder Coatings
155
152
\u2014
\u2014
32
19
187
171
\nMarine and Protective Coatings
174
197
\u2014
\u2014
80
94
254
291
\nAutomotive and Specialty Coatings
288
290
\u2014
\u2014
175
156
463
446
\nIndustrial Coatings
415
413
\u2014
\u2014
120
110
535
523
\nPerformance Coatings Other
\u2014
72
\u2014
\u2014
\u2014
59
\u2014
131
\nCorporate and other
\u2014
\u2013
\u2014
\u2014
99
118
99
118
\nTotal
1,155
1,377
1,852
1,840
683
855
3,690
4,072
\nextrapolated beyond the five-year explicit forecast
\nperiod for another five years, applying reduced average
\ngrowth rates.
\nMacro economic developments and other relevant vari-
\nables (e.g. inflation, the situation with respect to COVID-
\n19, geopolitical uncertainties, climate risks \u2013 refer to
\nNote 1 for a description of the impact from climate change
\non the financial statements) are closely monitored to
\nensure that the impact on the estimated future cash flows
\nis reflected in the models which are used to assess the
\nvalue of AkzoNobel\u2019s asset base.
\nKey assumptions 2022
\nPre-tax weighted
\nAverage revenue
average cost of
\nIn\u00a0% per year
growth 2023-2027
capital 2023-2027
\nDecorative Paints
1.8-6.7%
11.1-15.9%
\nPerformance Coatings
1.3-4.0%
10.8-12.4%
\nKey assumptions 2021
\nPre-tax weighted
\nAverage revenue
average cost of
\nIn\u00a0% per year
growth 2022-2026
capital 2022-2026
\nDecorative Paints
1.1-5.9%
8.4-12.5%
\nPerformance Coatings
2.6-4.7%
7.8-8.1%
\nThe key assumptions used in the projections for annual
\nimpairment testing are:
\n\u2022
Revenue growth per year: based on actual experience,
\nanalysis of markets and GDP growth, and expected
\nmarket share developments
\n\u2022
Margin development per year: based on actual
\nexperience and management\u2019s long-term projections
\n\u2022
Weighted average cost of capital per year: the pre-tax
\ndiscount rate determined per business unit, reflecting
\ncurrent market assessments of the time value of
\nmoney and the risks specifically associated with the
\nbusiness units
\nFor all business units, a terminal value was calculated based
\non long-term inflation expectations of 2% (2021: 1%). The
\nestimated pre-tax cash flows are discounted to their present
\nvalue using a pre-tax weighted average cost of capital. The
\ndiscount rates are determined for each business unit and
\nrange from 10.8% to 15.9% (2021: 7.8% to 12.5%), with a
\nweighted average of 11.7% (2021: 8.4%).
\nSensitivity tests were performed to assess the impact of
\nchanges in the key assumptions revenue growth (50%
\nlower), margin development (1 percentage point lower) and
\nthe weighted average cost of capital (1 percentage point
\nhigher). These assessments show that these changes in
\nkey assumptions would not cause carrying amounts to
\nexceed recoverable amounts for any of the business units,
\nexcept for the Latin America businesses where the recently
\nacquired Grupo Orbis business is included.
\nGiven the current uncertainties in the macro-economic
\nenvironment and high cost inflation, additional sensitivity
\ntests have been performed in order to assess the impact
\nof more severe adverse changes in the key assumptions.
\nThe conclusions from these tests are the same as above.
\nIn 2022 and 2021, no impairment charges were recog-
\nnized in relation to the annual impairment test.
\nSpeci\ufb01c asset impairments
\nPeriodical evaluations are performed in order to ensure
\ntimely detection of triggers that might indicate impairment
\nof assets. Whenever such triggers are noted, the related
\nassets are assessed for impairment as appropriate.
\nIn 2022 and 2021, no significant impairment charges were
\nrecorded in relation to specific assets.
\nNote 12 PROPERTY, PLANT AND
\nEQUIPMENT
\nAcquisitions
\nThe additions from acquisitions in 2022 primarily relate to
\nthe acquisition of Grupo Orbis S.A., Colombia, and of the
\nwheel liquid coatings business of Lankwitzer Lackfabrik
\nGmbH, Germany. In 2021, additions from acquisitions
\nprimarily related to the acquisition of Titan Paints in Spain.
\nRefer to Note 2 for disclosures on acquisitions.
\nInvestments in property, plant and equipment
\nLarge investment projects in 2022 are amongst others
\ninvestments at our Highpoint, US, Wood Coatings site,
\nand the setup of a new powder coatings manufacturing
\nline at our Hanoi, Vietnam site.
\nImpairments
\nPeriodical evaluations are performed in order to ensure
\ntimely detection of triggers that might indicate impairment
\nof assets. Whenever such triggers are noted, the related
\nassets are assessed for impairment as appropriate.
\nIn 2022 and 2021, no significant impairments were recognized.
\nChanges in exchange rates
\nChanges in exchange rates includes a \u20ac30 million posi-
\ntive adjustment from the IAS 29 hyperinflation impact for
\nT\u00fcrkiye and Argentina.
\n121
AkzoNobel Report 2022
|
Financial statements
Property, plant and equipment
\nConstruction in progress
\nPlant equipment and
and prepayments on
\nIn \u20ac millions
Land and buildings
machinery
Other equipment
projects
Assets not used
Total
\nBalance at January 1, 2021
\nCost of acquisition
1,425
1,937
890
244
10
4,506
\nAccumulated depreciation/impairment
(731)
(1,386)
(757)
(4)
(7)
(2,885)
\nCarrying value at January 1, 2021
694
551
133
240
3
1,621
\nMovements in 2021
\nAcquisitions
36
11
\u2014
\u2014
\u2014
47
\nDivestments
(5)
(3)
(1)
(1)
\u2014
(10)
\nInvestments
10
18
8
217
\u2014
253
\nTransfer between categories
30
112
28
(170)
\u2014
\u2014
\nDepreciation
(44)
(102)
(41)
\u2014
\u2014
(187)
\nImpairments, including reversals thereof
\u2014
(1)
\u2014
\u2014
\u2014
(1)
\nChanges in exchange rates
31
29
6
11
\u2014
77
\nTotal movements
58
64
\u2014
57
\u2014
179
\nBalance at December 31, 2021
\nCost of acquisition
1,546
2,124
919
300
10
4,899
\nAccumulated depreciation/impairment
(794)
(1,509)
(786)
(3)
(7)
(3,099)
\nCarrying value at December 31, 2021
752
615
133
297
3
1,800
\nImpact IAS 29 Hyperinflation T\u00fcrkiye*
10
3
\u2014
2
\u2014
15
\nCarrying value at January 1, 2022
762
618
133
299
3
1,815
\nMovements in 2022
\nAcquisitions
75
45
5
\u2014
\u2014
125
\nDivestments
(9)
(4)
(2)
(5)
\u2014
(20)
\nInvestments
2
11
6
242
1
262
\nTransfer between categories
53
87
36
(176)
\u2014
\u2014
\nDepreciation
(46)
(105)
(32)
\u2014
\u2014
(183)
\nChanges in exchange rates
(5)
(29)
(7)
10
\u2014
(31)
\nTotal movements
70
5
6
71
1
153
\nBalance at December 31, 2022
\nCost of acquisition
1,658
2,208
923
373
11
5,173
\nAccumulated depreciation/impairment
(826)
(1,585)
(784)
(3)
(7)
(3,205)
\nCarrying value at December 31, 2022
832
623
139
370
4
1,968
\n* As per June 2022, T
\u00fcrkiye has been identified as a hyperinflationary economy. IAS 29
\n\u201cFinancial Reporting in Hyperinflationary Economies\u201d has been applied for our activities in
\nT\u00fcrkiye as from January 1, 2022. Refer to Note 8 for details on the financial impact from
\napplying IAS 29.
\n122
AkzoNobel Report 2022
|
Financial statements
Note 13 LEASES
\nAkzoNobel mainly leases land, office spaces, stores and
\ncars. Some leases provide for additional rent payments
\nthat are based on changes in local price indices.
\nSome property leases contain extension options exercis-
\nable by AkzoNobel up to one year before the end of the
\nnon-cancellable contract period. We have estimated that
\nthe lease liability would increase by less than 20%, if we
\nwould exercise the extension options which are currently
\nnot included in the valuation of the lease liability. This
\nexcludes so-called \u201cevergreens\u201d or perpetual leases.
\nTotal net cash outflow from financing activities related to
\nleases recognized on the balance sheet was \u20ac104 million
\n(2021: \u20ac100 million). Net cash outflow for leases not
\nrecognized on the balance sheet was \u20ac19 million (2021:
\n\u20ac17 million).
\nRefer to Note 27 \u201cFinancial risk management\u201d for the
\nmaturities of lease liabilities.
\nThe table \u201cIncome/(expenses) recognized in profit and
\nloss\u201d shows the total impact from leases on our profit and
\nloss account.
\nRight-of-use assets
\nIn \u20ac millions
Land
Buildings
Other
Total
\nBalance at January 1, 2021
\nCost of acquisition
55
353
102
510
\nAccumulated depreciation/impairment
(16)
(128)
(42)
(186)
\nCarrying value at January 1, 2021
39
225
60
324
\nMovements in 2021
\nAdditions/modifications
2
35
32
69
\nDisposals
\u2014
(5)
(2)
(7)
\nDepreciation
(3)
(60)
(31)
(94)
\nImpairments, including reversals thereof
\u2014
(2)
\u2014
(2)
\nChanges in exchange rates
4
9
1
14
\nTotal movements
3
(23)
\u2014
(20)
\nCost of acquisition
61
372
109
542
\nAccumulated depreciation/impairment
(19)
(170)
(49)
(238)
\nCarrying value at December 31, 2021
42
202
60
304
\nMovements in 2022
\nAcquisitions
2
5
3
10
\nAdditions/modifications
\u2014
58
30
88
\nDisposals
\u2014
(7)
(2)
(9)
\nDepreciation
(3)
(64)
(31)
(98)
\nImpairments, including reversals thereof
\u2014
(3)
\u2014
(3)
\nChanges in exchange rates
1
(2)
\u2014
(1)
\nTotal movements
\u2014
(13)
\u2014
(13)
\nCost of acquisition
64
393
117
574
\nAccumulated depreciation/impairment
(22)
(204)
(57)
(283)
\nCarrying value at December 31, 2022
42
189
60
291
\nIncome/(expenses) recognized in pro\ufb01t and loss
\nIn \u20ac millions
2021
2022
\nSub lease income
3
2
\nDepreciation right-of-use assets
(94)
(98)
\nImpairments for right-of-use assets
(2)
(3)
\nInterest expense on lease liabilities
(6)
(6)
\nShort-term lease expenses
(7)
(11)
\nExpenses relating to low-value assets
(5)
(4)
\nVariable lease expenses
(5)
(4)
\nTotal expenses
(116)
(124)
\nImpairments
\nPeriodical evaluations are performed in order to ensure
\ntimely detection of triggers that might indicate impairment
\nof assets. Whenever such triggers are noted, the related
\nassets are assessed for impairment as appropriate.
\nIn 2022 and 2021, no significant impairments were
\nrecognized.
\nNote 14 INVESTMENTS IN ASSOCIATES
\nAND JOINT VENTURES
\nThe total value of investments in associates and joint
\nventures at December 31, 2022 amounted to \u20ac193 million
\n(2021: \u20ac178 million) and consisted of our equity share of
\n\u20ac191 million (2021: \u20ac176 million) and loans granted of \u20ac2
\nmillion (2021: \u20ac2 million).
\nBalance sheet information of our share in associates
\nAssociates
\nIn \u20ac millions, at December 31
2021
2022
\nCondensed balance sheet
\nNon-current assets
81
97
\nCurrent assets
141
152
\nTotal assets
222
249
\nShareholders\u2019 equity
176
191
\nNon-current liabilities
5
6
\nCurrent liabilities
41
52
\nTotal liabilities and equity
222
249
\n123
AkzoNobel Report 2022
|
Financial statements
Pro\ufb01t and loss of our share in associates
\nAssociates
\nIn \u20ac millions
2021
2022
\nCondensed statement of income
\nRevenue
194
218
\nProfit before tax
35
25
\nProfit from continuing operations
26
18
\nPro\ufb01t for the period
26
18
\nIn 2022, the results from associates amounted to a profit
\nof \u20ac18 million (2021: \u20ac26 million). No significant contingent
\nliabilities exist related to associates. The largest associate
\nof AkzoNobel is Metlac S.p.a., incorporated in Italy.
\nNone of the associates are considered individually material
\nto the group.
\nNote 15 FINANCIAL NON-CURRENT
\nASSETS
\nFinancial non-current assets
\nIn \u20ac millions, at December 31
2021
2022
\nPension assets
1,638
1,029
\nLoans and receivables
360
362
\nOther financial non-current assets
78
84
\nTotal
2,076
1,475
\nPension assets (\u20ac1,029 million) relate to pension plans in
\nan asset position (2021: \u20ac1,638 million). For more informa-
\ntion on post-retirement benefit plans, refer to Note 19.
\nLoans and receivables include the subordinated loan of
\n\u20ac89 million (2021: \u20ac88 million) granted to the Pension
\nFund APF in the Netherlands.
\nLoans and receivables are considered to have low credit
\nrisk; the impairment provision recognized during the period
\nwas limited to 12 months expected losses.
\nNote 16 INVENTORIES
\nThe total carrying value of inventories as per December
\n31, 2022 has increased compared to December 31, 2021,
\nmainly as a result of significant increases in raw material
\nprices throughout 2022.
\nInventories
\nIn \u20ac millions, at December 31
2021
2022
\nRaw materials and supplies
611
676
\nWork in progress
94
104
\nFinished products and goods for resale
945
1,063
\nTotal
1,650
1,843
\nOf the total carrying value of inventories at year-end
\n2022, \u20ac16 million is measured at net realizable value
\n(2021: \u20ac18 million). In 2022, \u20ac86 million was recognized
\nin the statement of income for the write-down of invento-
\nries (2021: \u20ac67 million), while \u20ac30 million of write-downs
\nwere reversed (2021: \u20ac32 million). There are no invento-
\nries subject to retention of title clauses.
\nNote 17 TRADE AND OTHER
\nRECEIVABLES
\nTrade and other receivables
\nIn \u20ac millions, at December 31
2021
2022
\nTrade receivables
1,973
2,123
\nPrepaid expenses
37
58
\nTax receivables other than income tax
145
156
\nFX contracts
15
18
\nReceivables from associates
9
4
\nOther receivables
160
88
\nTotal
2,339
2,447
\nTrade and other receivables can be broken down as
\nper the table above. Other receivables consist of a large
\nnumber of individually immaterial items. In 2021, Other
\nreceivables included the current portion of \u20ac53 million (\u00a344
\nmillion) of the escrow account for the Akzo Nobel (CPS)
\nPension Scheme in the UK, that was repaid in 2022.
\nAgeing of trade receivables
\nIn \u20ac millions, at December 31
2021
2022
\nPerforming trade receivables
1,849
1,987
\nPast due trade receivables
\n< 3 months
102
104
\n> 3 months
64
74
\nAllowance for impairment
(42)
(42)
\nTotal trade receivables
1,973
2,123
\nTrade receivables are presented net of an allowance for
\nimpairment of \u20ac42 million (2021: \u20ac42 million). In 2022,
\n\u20ac17 million of impairment losses were recognized in the
\nstatement of income (2021: \u20ac11 million) and \u20ac8 million
\nwas reversed (2021: \u20ac11 million). Since the total amount
\nof impairment losses under IFRS 9 is not significant, no
\nseparate disclosure was made in the statement of income.
\nAllowance for impairment of trade receivables
\nIn \u20ac millions
2021
2022
\nBalance at January 1
58
42
\nAdditions charged to income
11
17
\nRelease of unused amounts
(11)
(8)
\nUtilization
(17)
(9)
\nAcquisitions
\u2014
2
\nCurrency exchange differences
1
(2)
\nBalance at December 31
42
42
\n124
AkzoNobel Report 2022
|
Financial statements
Note 18 GROUP EQUITY
\nComposition of share capital at year-end 2021
\nAuthorized
Subscribed
\nIn \u20ac
share capital
share capital
\nPriority shares (48 with nominal value
19,200
19,200
\nof \u20ac400)
\nCumulative preferred shares (200
100,000,000
\u2014
\nmillion with nominal value of \u20ac0.50)
\nCommon shares (500 million with
250,000,000
90,804,755
\nnominal value of \u20ac0.50)
\nTotal
350,019,200
90,823,955
\nComposition of share capital at year-end 2022
\nAuthorized
Subscribed
\nIn \u20ac
share capital
share capital
\nPriority shares (48 with nominal value
19,200
19,200
\nof \u20ac400)
\nCumulative preferred shares (200
100,000,000
\u2014
\nmillion with nominal value of \u20ac0.50)
\nCommon shares (500 million with
250,000,000
87,187,614
\nnominal value of \u20ac0.50)
\nTotal
350,019,200
87,206,814
\nOutstanding common shares
\nNumber of shares
2021
2022
\nOutstanding at January 1
190,579,841
181,609,509
\nIssued in connection to perfor-
277,517
214,262
\nmance-related share plan and share-
\nmatching plan
\nShares cancelled related to share
(695,776)
(2,744,210)
\nbuyback from previous year
\nShares bought back during the year
(11,296,283)
(8,651,230)
\nShares bought back during the year
2,744,210
3,946,896
\nnot yet cancelled
\nOutstanding at December 31
181,609,509
174,375,227
\nWeighted average number of common shares
\nNumber of shares
2021
2022
\nWeighted average number of
184,959,866
174,735,139
\ncommon shares
\nNon-controlling interests
\n2021
2022
\nEquity stake
Equity stake
\nGroup entity
Partner at year-end 2022
%
in \u20ac millions
%
in \u20ac millions
\nAkzo Nobel India Limited, Kolkata, India
Privately held, India
25.24
56
25.24
54
\nPT ICI Paints Indonesia, Jakarta, Indonesia
PT DWI Satrya Utama, Indonesia
45.00
34
45.00
31
\nAkzo Nobel Kemipol A.S., Izmir, T\u00fcrkiye
Altan, Eyy\u00fcp and other family members
49.00
19
49.00
24
\nAkzo Nobel Paints (Malaysia) Sdn Bhd, Kuala
Permodalan Nasional Berhad, Malaysia
40.05
21
40.05
20
\nLumpur, Malaysia
\nInternational Paint of Shanghai Co. Ltd,
Shanghai Huayi Fine Chemical Co. Ltd and China
49.00
15
49.00
16
\nShanghai, China
National Shipbuilding Equipment & Materials Corp.
\nAkzo Nobel Saudi Arabia Ltd, Saudi Arabia
Yousuf Bin Ahmed Kanoo Co. Ltd, Saudi Arabia
40.00
12
40.00
14
\nAkzo Nobel Oman SAOC, Muscat, Oman
Omar Zawawi Establishment LLC, Oman
50.00
11
50.00
12
\nAkzo Nobel UAE Paints L.L.C., United Arab
Kanoo Group, United Arab Emirates
40.00
8
40.00
8
\nEmirates
\nSociete Tunisienne de Peintures Astral S.A.,
Several people
40.00
7
40.00
8
\nMegrine, Tunisia
\nInternational Paint (Korea) Ltd, Busan, South-Korea
Noroo Holdings, South Korea
40.00
11
40.00
6
\nAkzo Nobel Paints (Guangzhou) Limited,
Guangzhou Hi-tech Investment Group
10.00
5
10.00
5
\nGuangzhou, China
Corporation Ltd
\nOthers
12
17
\nTotal
211
215
\nSubscribed share capital
\nFor further details on subscribed share capital, refer to
\nNote F in the Company financial statements.
\nCumulative translation reserve
\nCumulative translation reserves comprise all foreign
\nexchange differences arising from the translation of the
\nfinancial statements of foreign operations, as well as from
\nthe translation of intercompany loans with a permanent
\nnature and liabilities and derivatives that hedge the net
\ninvestments in a foreign subsidiary.
\nEquity-settled transactions
\nEquity-settled transactions consist of the performance
\nrelated and restricted share plan and share-matching plan,
\nwhereby shares are granted to the Board of Management,
\nExecutive Committee, other executives and certain
\nnon-executive employee categories. For details on share-
\nbased compensation, refer to Note 7.
\nDividend
\nOur dividend policy is to pay a stable to rising dividend.
\nIn 2022, an interim dividend of \u20ac0.44 (2021: \u20ac0.44) per
\ncommon share was paid. We propose a 2022 final divi-
\ndend of\u00a0\u20ac1.54 (2021: \u20ac1.54) per common shar
e, which
\nwould equal a total 2022 dividend of \u20ac1.98 (2021: \u20ac1.98).
\nShare buybacks
\nIn February 2021, a \u20ac1 billion share buyback program was
\nannounced, which was completed in January 2022.
\nIn February 2022, a \u20ac500 million share buyback program was
\nannounced which was completed in 2022. As at December
\n31, 2022, a total of 7.3 million shares had been acquired
\nunder this program, of which 3.3 million were cancelled.
\nDuring 2022, 8,651,230 common shares were repur-
\nchased (2021: 11,296,283). The total amount of shares
\ncancelled was 7,448,544; cancelled shares are related
\nto share buyback in the current and the previous year
\n(2021: 9,247,849). For further details on weighted average
\nnumber of shares, refer to Note 10.
\nNon-controlling interests
\nNone of the non-controlling interests are considered
\nindividually material to the group. The effects of share
\ntransactions with non-controlling interest shareholders
\nare recorded in equity insofar these do not lead to
\nchanges in control.
\n125
AkzoNobel Report 2022
|
Financial statements
Note 19 POST-RETIREMENT BENEFIT
\nPROVISIONS
\nPost-retirement benefit provisions relate to defined benefit
\npension and other post-retirement benefit plans, includ-
\ning healthcare or welfare plans. The largest defined benefit
\npension plans are the ICI Pension Fund (ICIPF) and the
\nAkzo Nobel (CPS) Pension Scheme (CPS) in the UK which
\ntogether account for 86% of defined benefit obligations
\n(DBO) and 90% of plan assets. Other pension plans include
\namong others the largely unfunded plans in Germany, the
\nplans in the US and certain other smaller plans in the UK.
\nThe benefits of these pension plans are based primarily on
\nyears of service and employees\u2019 compensation. The funding
\npolicy for the plans is consistent with local requirements
\nin the countries of establishment. We also provide certain
\nhealthcare and life insurance benefits to retired employees,
\nmainly in the US and the Netherlands.
\nValuations of the obligations under the plans are carried out
\nregularly by independent qualified actuaries. We accrue for
\nthe expected costs of providing such post-retirement bene-
\nfits during the service years of the employees. Governance
\nof the benefit plans is the responsibility of the Executive
\nCommittee Pensions. This committee provides oversight of
\nthe costs and risks of the plans including oversight of the
\nimpact of the plans on the company in terms of cash flow,
\npension expenses and the balance sheet. The committee
\ndevelops and maintains policies on benefit design, funding,
\nasset allocation and assumption setting.
\nPension plans
\nAlmost all of the defined benefit plans have been closed
\nto new members since the early to mid-2000s, although
\nin many plans long-serving employees continue to accrue
\nbenefits. For plans in the US, benefit accrual is frozen
\nand employees participate in defined contribution plans
\nfor future service. In countries where plans are closed,
\nnew employees are eligible to join a defined contribution
\narrangement. In countries in high growth markets, pension
\nschemes currently are not material. Unless mandated by
\nlaw, it is our policy that any new plans are established as
\ndefined contribution plans.
\nThe most significant risks that we run in relation to
\ndefined benefit plans are investment returns falling short
\nof expectations, low discount rates, inflation exceeding
\nexpectations, retirees living longer than expected and
\nlegislation changes. The assets and liabilities of each of the
\nfunded plans are held outside of the company in a trust or
\na foundation, which is governed by a board of fiduciaries
\nor trustees, depending on the legal arrangements in the
\ncountry concerned. The primary objective with regards
\nto the investment of pension plan assets is to ensure
\nthat each individual plan has sufficient funds available to
\nsatisfy future benefit obligations in accordance with local
\nlegal and legislative requirements. For this purpose, we
\nwork closely with plan trustees or fiduciaries to develop
\ninvestment strategies. Studies are carried out periodically
\nto analyze and understand the trade-off between expected
\ninvestment returns, volatility of outcomes and the impact
\non cash contributions. We aim to strike a cautious balance
\nbetween these factors in order to agree affordable contri-
\nbution schedules with plan fiduciaries.
\nPlan assets principally consist of insurance (annuity)
\npolicies, long-term interest-earning investments and
\n(investment funds with holdings primarily in) quoted equity
\nsecurities. Our largest plans use derivatives (such as
\nindex futures, currency forward contracts and swaps) to
\nreduce volatility of underlying variables, for efficient portfo-
\nlio management and to improve the liability matching
\ncharacteristics of the assets. Limits have been set
\non the use of derivatives which are periodically subject
\nto review for compliance with the pension fund\u2019s invest-
\nment strategy.
\nIn line with our proactive pension risk management
\nstrategy, we seek to reduce risk in our pension plans over
\ntime. We evaluate potential de-risking opportunities on an
\nongoing basis. Future de-risking transactions may have
\nboth cash flow and balance sheet impacts which may be
\nsubstantial, as had some of the de-risking actions already
\ntaken. The cost of fully removing risk would exceed esti-
\nmated funding deficits.
\nBetween 2014 and 2022, ICIPF and a smaller UK plan,
\nthe ICI Specialty Chemicals Pension Fund (ISCPF), have
\ninvested in annuity buy-in contracts that aim to hedge all
\nkey risks related to their pensioner populations.
\nIn October 2022, the Trustee of the ICIPF entered into a
\nfurther annuity buy-in agreement with Legal and General
\nAssurance Society Limited. It covers, in aggregate, \u00a354
\nmillion (\u20ac62 million) of pensioner liabilities (insurer valua-
\ntion). The buy-in involved the purchase of a bulk annuity
\npolicy under which the insurer will pay to ICIPF amounts
\nequivalent to the benefits payable to members who have
\nrecently become pensioners. The pension liabilities remain
\nwith, and the matching annuity policies are held within,
\nICIPF. The accounting impact of the transaction is a lower
\nvaluation of the plan assets giving a reduction in other
\ncomprehensive income of \u00a312 million (\u20ac14 million).
\nIn November 2022, the Trustee of the CPS entered into its
\nfirst annuity buy-in agreement with Phoenix Life Limited.
\nIt covers, in aggregate, \u00a3640 million (\u20ac724 million) of
\npensioner liabilities (insurer valuation). The buy-in involved
\nthe purchase of a bulk annuity policy under which the
\ninsurer will pay to CPS amounts equivalent to the benefits
\npayable to a section of its pensioners. The pension
\nliabilities remain with, and the matching annuity policies are
\nheld within, CPS. The accounting impact of the transaction
\nis a lower valuation of the plan assets giving a reduction in
\nother comprehensive income of \u00a354 million (\u20ac62 million).
\nBy purchasing bulk annuities, the ICIPF, CPS and ISCPF
\nTrustees have taken significant steps in actively de-risking
\nliabilities and reducing the risk that AkzoNobel will be
\nrequired to contribute additional cash in the future.
\nCPS also has an insurance contract to hedge longevity
\nrisk in respect of a portion of its pensioners not impacted
\nby the recent buy-in transaction.
\nOn November 25, 2020, correspondence between the
\nChancellor of the Exchequer and the UK Statistics Author-
\nity (UKSA) was published regarding the future of the Retail
\nPrice Index (RPI) measurement of inflation. With effect
\nfrom February 2030 onwards, increases in the RPI will be
\naligned with those under the Consumer Prices Index (CPI)
\nwith owner occupiers\u2019 housing costs (CPIH). Broadly this
\nis expected to result in RPI inflation being 1% lower in the
\nlonger term than under the existing methodology. The infla-
\ntion assumption continues to be calculated using a market
\nbreakeven inflation rate and the CPI inflation assumption,
\non which the benefits of some plans are based, is set with
\nreference to RPI. Until 2030, the CPI inflation assumption
\nis calculated as 1% below RPI and from 2030 onwards as
\n0.1% below RPI.
\nOn April 22, 2021, a court ruling resulted in a \u00a320 million
\n(\u20ac23 million) past service credit in one of the UK\u2019s
\npension plans, the J.P. McDougall & Co Limited Staff
\nAkzoNobel Report 2022
|
Financial statements
126
Pension & Life Assurance Scheme, booked as an identi-
\nfied item. The court ruling rectified a deed change with
\nrespect to the retirement ages from which members will
\nreceive benefits.
\nThe remaining pension plans primarily represent plans
\naccounted for as defined contribution plans. This includes,
\namong others, the Pension Fund APF in the Netherlands
\nand the 401k Plan in the US.
\nReconciliation balance sheet
\n2021
2022
\nPlan
Plan
\nIn \u20ac millions
DBO
assets
Total
DBO
assets
Total
\nBalance at the beginning of the period
(14,184)
15,014
830
(14,310)
15,330
1,020
\n(31)
\nStatement of income
\nCurrent service cost
(32)
\u2014
(32)
(31)
\u2014
\nPast service cost
22
\u2014
22
\u2014
\u2014
\u2014
\nSettlements
\u2014
\u2014
\u2014
18
(18)
\u2014
\nNet interest (charge)/income on net defined benefit (liability)/asset
(193)
206
13
(254)
272
18
\nCost recognized in statement of income
(203)
206
3
(267)
254
(13)
\n(279)
\nRemeasurements recognized in Other comprehensive income
\nActuarial (loss)/gain due to liability experience
(123)
\u2014
(123)
(279)
\u2014
\nActuarial (loss)/gain due to liability financial assumption changes
289
\u2014
289
3,754
\u2014
3,754
\nActuarial (loss)/gain due to liability demographic assumption changes
56
\u2014
56
18
\u2014
18
\nActuarial loss due to buy-ins
\u2014
(30)
(30)
\u2014
(76)
(76)
\nReturn on plan assets (less than)/greater than discount rate
\u2014
(202)
(202)
\u2014
(3,784)
(3,784)
\nRemeasurement effects recognized in Other comprehensive income
222
(232)
(10)
3,493
(3,860)
(367)
\n70
\nCash \ufb02ow
\nEmployer contributions
\u2014
94
94
\u2014
70
\nEmployee contributions
(2)
2
\u2014
(2)
2
\u2014
\nBenefits and administration costs paid from plan assets
852
(852)
\u2014
842
(842)
\u2014
\nNet cash \ufb02ow
850
(756)
94
840
(770)
70
\n(1)
\nOther
\nAcquisitions/divestments/transfers
1
(1)
\u2014
\u2014
(1)
\nChanges in exchange rates
(996)
1,099
103
662
(760)
(98)
\nTotal other
(995)
1,098
103
662
(761)
(99)
\nBalance at the end of the period
(14,310)
15,330
1,020
(9,582)
10,193
611
\nAsset restriction
(3)
(9)
\nNet balance sheet position
1,017
602
\nPresentation of Net balance sheet position
\n1,029
Other financial non-current assets
1,638
\nPost-retirement benefit provisions
(578)
(387)
\nCurrent portion of provisions
(43)
(40)
\nNet balance sheet position
1,017
602
\nThe ITP2 plan in Sweden is financed through insurance
\nwith the Alecta Tj\u00e4nstepension \u00d6msesidigt (i.e. Alecta
\npension insurance, mutual) insurance company (Alecta)
\nand is classified as a multi-employer defined benefit plan.
\nAs AkzoNobel does not have access to sufficient informa-
\ntion from Alecta to enable defined benefit accounting
\ntreatment, it is accounted for as a defined contribution
\nplan. Contributions in 2022 were \u20ac2 million (2021: \u20ac2
\nmillion). Alecta\u2019s funding ratio is normally allowed to vary
\nbetween 125% and 175%. The most recently quoted ratio
\nat December\u00a02022 stood at 172%.
\nThe expenses of all plans accounted for as defined
\ncontribution plans in AkzoNobel totaled \u20ac89 million in 2022
\n(2021: \u20ac83 million).
\nDBO at funded and unfunded pension plans*
\nIn \u20ac millions, at December 31
2021
2022
\nWholly or partly funded plans
14,005
9,229
\nUnfunded plans
179
246
\nTotal
14,184
9,475
\n* Excludes other post-retirement benefit plans.
\nOther post-retirement bene\ufb01t plans
\nAkzoNobel provides certain healthcare and life insurance
\nbenefits to retired employees, mainly in the US and the
\nNetherlands. The risks to which the US healthcare plans
\nexpose AkzoNobel include the risk of future increases in
\nthe cost of healthcare which would increase the cost of
\nmaintaining the plans. The benefit payments to retirees
\nunder the Dutch plan are frozen. Both plans expose
\nAkzoNobel to the risk of a decline in discount rates, which
\nincreases the plan obligations, and longevity risk as the
\nplans generally pay lifetime benefits.
\nReconciliation balance sheet
\nThe closing net balance sheet position of \u20ac602 million
\n(2021: \u20ac1,017 million) includes the pension plans (\u20ac709
\nmillion net asset; 2021: \u20ac1,143 million net asset) and other
\npost-retirement plans (\u20ac107 million liability; 2021: \u20ac126
\nmillion liability).
\nAdministrative expenses
\nIn addition to the expenses borne by the funds them-
\nselves, some expenses are borne directly by AkzoNobel.
\nAdministrative expenses, especially for the UK pension
\nAkzoNobel Report 2022
|
Financial statements
127
funds, of \u20ac26 million are included in 2022 operating
\nincome (2021: \u20ac22 million). In addition, we directly incurred
\nasset management expenses of \u20ac2 million (2021:
\n\u20ac3 million), which have been included in other compre-
\nhensive income.
\nInterest costs
\nInterest costs on the DBO for both pensions and other
\npost-retirement benefits, together with the interest income
\non plan assets, comprise the financing income related to
\npost-retirement benefits of \u20ac18 million (2021: \u20ac13 million),
\nrefer to Note 8.
\nPension plans in asset position
\nPension balances recorded under Financial non-current
\nassets totaled \u20ac1,029 million (2021: \u20ac1,638 million). The
\ndecrease in 2022 is due to \u20ac556 million of net actuarial
\nlosses and \u20ac89 million of exchange rate translation losses,
\npartially offset by \u20ac21 million of employer contributions and
\nnet income of \u20ac15 million, in the relevant plans.
\nThese assets could be recognized under IFRIC 14
\nbecause economic benefits are available in the form of
\nfuture refunds from the plan or reductions in future contri-
\nbutions to the plan, either during the life of the plan or on
\nthe (final) settlement of the plan liabilities.
\nPlan assets
\nThe equities and government bond debt assets have
\nquoted prices in active markets, although most are held
\nthrough funds comprised of such instruments which are
\nnot actively traded themselves. The total value of plan
\nassets not quoted in active markets is \u20ac6,666 million
\n(2021: \u20ac8,420 million), including the UK buy-in annuity
\npolicies totaling \u20ac6,078 million (2021: \u20ac7,698 million),
\ninvestments in real estate totaling \u20ac343 million (2021:
\n\u20ac469 million) and other investments in infrastructure and
\ninsurance policies. The UK buy-in annuity policies have a
\nvalue that is equal to the DBO of the pensioners covered
\nby the policies.
\nPlan assets did not directly include any of AkzoNobel\u2019s
\nown transferable financial instruments, nor any property
\noccupied by or assets used by the company.
\nCash \ufb02ows
\nIn 2023, we expect to contribute \u20ac49 million (2022: \u20ac56
\nmillion) to our defined benefit pension plans. We expect to
\npay a further \u20ac11 million (2022: \u20ac11 million) to our other
\npost-retirement benefit plans. No allowance is made for
\nany special one-off contributions that may arise in relation
\nto new de-risking opportunities.
\nSensitivity of DBO
\nThe actuarially calculated sensitivity effects on DBO shown
\nallow for an alternative value for each assumption while
\nthe other actuarial assumptions remain unchanged. This
\ntable illustrates the overall impact on DBO for the changes
\nshown, which management assessed could be reasonably
\npossible over a longer term from a sensitivity test perspec-
\ntive. It should be noted, however, that this analysis does
\nnot indicate and probability of such changes occurring,
\nnot does it preclude larger changes in any given period or
\nlonger term. In addition, the significance of the impact and
\nthe range of reasonably possible alternative assumptions
\nmay differ between the different plans that comprise the
\ntotal DBO. In particular, the plans differ in benefit design,
\ncurrency and average term, meaning that different assump-
\ntions have different levels of significance for each plan.
\nThe sensitivity analysis is intended to illustrate the inher-
\nent uncertainty in the valuation of the DBO under market
\nconditions at the measurement date. Its results, in
\nprinciple, cannot be extrapolated due to increasing non-
\nPlan assets
\n2021
2022
\nIn \u20ac millions, at December 31
Total
Percentage of total
Total
Percentage of total
\nEquities
332
2
225
2
\nDebt - fixed interest government bonds
1,444
9
580
6
\nDebt - index-linked government bonds
3,221
21
1,230
12
\nDebt - corporate and other bonds
1,770
12
1,394
13
\nUK buy-in annuity policies
7,698
50
6,078
60
\nCash and cash equivalents
204
1
166
2
\nOther
661
5
520
5
\nTotal
15,330
100
10,193
100
\nCash \ufb02ows
\nPensions
Other post-retirement bene\ufb01ts
\nIn \u20ac millions
2022
2023
2022
2023
\nRegular contributions
43
41
11
11
\nTop-ups
13
8
\u2014
\u2014
\nTotal
56
49
11
11
\nSensitivity of DBO to change in assumptions
\nOther post-
\nICIPF
CPS
Other
retirement
\nIn \u20ac millions
UK
UK
pension plans
bene\ufb01ts
Total
\nDiscount rate: 0.5% decrease
274
143
73
5
495
\nPrice inflation: 0.5% increase*
158
85
38
\u2014
281
\nLife expectancy: one year increase from age 60
367
86
41
4
498
\nMaturity information
\nWeighted average duration of DBO (years)
9.2
12.0
11.6
8.7
10.2
\n*
The sensitivity to price inflation assumption includes corresponding changes to all inflation-related compensation increases,
\npensions in payment and pensions in deferment.
\n128
AkzoNobel Report 2022
|
Financial statements
linear effects that changes in the key actuarial assump-
\ntions, when deviating further from the assumptions
\npresented, may have on the total DBO. Any management
\nactions that may be taken to mitigate the inherent risks in
\nthe post-retirement defined benefit plans are not reflected
\nin this analysis, as they would normally be reflected in plan
\nasset changes rather than DBO changes.
\nThe sensitivities in the table only apply to the DBO and
\nnot to the net amounts recognized in the balance sheet.
\nMovements in the fair value of plan assets (which include
\nthe de-risking instruments) would, to a significant extent,
\nbe expected to offset movements in the DBO resulting
\nfrom changes in the given assumptions.
\nAt ICIPF, the annuity buy-in contracts cover 99% of
\npensioner liabilities (2021: 99%) and 88% of total liabilities
\n(2021: 84%).
\nAt CPS, the annuity buy-in contract covers 42% of
\npensioner liabilities (2021: 0%) and 28% of total liabilities
\n(2021: 0%). Also at CPS, the longevity hedge contract
\ncovers 48% of pensioner liabilities (2021: 48%) and 30%
\nof total liabilities (2021: 30%)
\nFuture bene\ufb01t payments
\nThe figures in the table on the right are the estimated
\nfuture benefit payments to be paid from the plans to
\nbeneficiaries over the next ten years.
\nFuture bene\ufb01t payments
\nOther post-
\nIn \u20ac millions
Pensions
retirement bene\ufb01ts
\n2023
816
11
\n2024
818
11
\n2025
826
10
\n2026
832
10
\n2027
842
9
\n2028 - 2032
4,321
41
\nKey \ufb01gures and assumptions by plan
\n2021
2022
\nOther post-
Other post-
\nICIPF
CPS
Other pension
retirement
ICIPF
CPS
Other
retirement
\nIn \u20ac millions or %
UK
UK
plans
bene\ufb01ts
Total
UK
UK pension plans
bene\ufb01ts
Total
\nPercentage of total DBO
61%
26%
12%
1%
100%
61%
25%
13%
1%
100%
\nDefined Benefit Obligation at year-end
(8,702)
(3,686)
(1,796)
(126)
(14,310)
(5,875)
(2,362)
(1,238)
(107)
(9,582)
\nFair value of plan assets at year-end
9,563
4,353
1,414
\u2014
15,330
6,293
2,895
1,005
\u2014
10,193
\nPlan funded status
861
667
(382)
(126)
1,020
418
533
(233)
(107)
611
\nRestriction on asset recognition
\u2014
\u2014
(3)
\u2014
(3)
\u2014
\u2014
(9)
\u2014
(9)
\nAmounts recognized on the balance sheet
861
667
(385)
(126)
1,017
418
533
(242)
(107)
602
\nPercentage of total current service cost
9%
28%
63%
\u2014
100%
6%
26%
68%
\u2014
100%
\nCurrent service cost
(3)
(9)
(20)
\u2014
(32)
(2)
(8)
(21)
\u2014
(31)
\nEmployer contributions
3
37
44
10
94
\u2014
13
45
12
70
\nDiscount rate
1.8%
1.9%
1.8%
3.3%
1.9%
4.9%
4.9%
4.6%
5.9%
4.9%
\nRate of compensation increase
1.5%
1.4%
2.0%
\u2014
1.5%
1.5%
1.4%
2.0%
\u2014
1.5%
\nInflation
3.5%
3.4%
2.3%
\u2014
3.3%
3.3%
3.3%
2.3%
\u2014
3.2%
\nPension increases
3.2%
2.8%
2.3%
\u2014
3.0%
3.1%
2.7%
2.2%
\u2014
2.9%
\nLife expectancy (in years)
\nCurrently aged 60
\nMales
26.2
26.2
26.2
25.8
26.2
26.2
26.2
25.7
25.8
26.1
\nFemales
27.7
29.0
28.8
27.8
28.2
27.8
29.1
28.1
27.8
28.2
\nCurrently aged 45, from age 60
\nMales
27.3
27.3
27.6
26.9
27.3
27.3
27.3
27.0
26.8
27.3
\nFemales
28.9
30.2
30.0
28.8
29.4
29.0
30.2
29.4
28.8
29.3
\n129
AkzoNobel Report 2022
|
Financial statements
Key plan details for the two largest pension plans
\n1
\nICI Pension Fund, UK
Akzo Nobel (CPS) Pension Scheme, UK
\nType of plan
Defined benefit, based upon years of service and final
Defined benefit, based upon years of service and final
\nsalary
salary
\nBenefits
Retirement pension for employee Dependents\u2019 pensions
Retirement pension for employee Dependents\u2019 pensions
\non death of employee/pensioner
on death of employee/pensioner
\nOptions for ill health early retirement
Options for ill health early retirement
\nPension increases (main benefit
Annually linked to UK RPI with a maximum of 5%
Annually linked to UK CPI with a maximum of 5%
\nsection)
\nPlan structure
Plans are set up under a trust and are tax approved
Plans are set up under a trust and are tax approved
\nGovernance
Trustee directors:
Trustee directors:
\nThree member-nominated
Three member-nominated
\nFour appointed with the agreement of Law Debenture
Two company-nominated
\nOne independent (Law Debenture)
One independent (Law Debenture)
\nRegulatory framework
The plans are tax approved and assets are held in trust for the benefit of participants. The trustees have a legal
\nduty to manage the trust in the best interests of participants. Investment strategy is controlled by the trustees in
\nconsultation with the company
\nFunding basis
A plan specific basis must be agreed with each trustee board in accordance with UK regulations. The basis is not
\nthe same as the IFRS calculation as it uses more prudent assumptions about life expectancy and the discount
\nrates reflect prudent estimates of the expected return on assets actually held, thus the trustees\u2019 investment strate-
\ngies will impact the discounted value of liabilities
\nFrequency of funding reviews
Normally every three years
Normally every three years
\nLatest completed valuation
March 31, 2020
March 31, 2020
\nFunding deficit at latest completed
\u00a323 million (\u20ac27 million) surplus
\u00a362 million (\u20ac73 million) deficit
\nvaluation
\n1,2
\nRecovery plan
As there were sufficient assets to cover the Fund's
\u00a326 million (\u20ac31 million) in 2021 and \u00a34 million (\u20ac5
\ntechnical provisions, a recovery plan is not required
million) in 2022, paid in March in each year from an
\nescrow account pre-funded with \u00a3142 million (\u20ac161
\nmillion)
\n3
\nin February 2019
\nNext funding review
March 31, 2023 (due to be completed before June 30,
March 31, 2023 (due to be completed before
\n2024)
June 30, 2024)
\nAsset allocation at March 31, 2022
\nMatching:
99.8%
84%
\nReturn seeking:
0.2%
16%
\nBuy-in annuity contracts cover 99% of pensioner
The longevity hedge contract covers 48% of pensioner
\nliabilities and 84% of total liabilities
liabilities and 30% of total liabilities
\nMembership at March 31, 2022
\nActive
71
273
\nDeferred
5,338
5,427
\nPensioner
35,032
16,570
\nTotal
40,441
22,270
\n1
\nAmounts in euro are a convenience translation using the December 31, 2022, exchange rate, unless indicated otherwise.
\n2
\nBased on local valuation regulations.
\n3
\nActual rate at time of transfer.
\nNote 20 OTHER PROVISIONS AND
\nAND CONTINGENT LIABILITIES
\nGeneral
\nProvisions are recognized when an outflow of economic
\nbenefits for settlement is probable and the amount can
\nbe reliably estimated. It should be understood that, in light
\nof possible future developments, such as: (a) potential
\nadditional lawsuits; (b) possible future settlements; and
\n(c) rulings or judgments in pending lawsuits, certain
\ncases may result in additional liabilities and related costs.
\nAt this point in time, we cannot estimate any additional
\namount of loss or range of loss in excess of the recorded
\namounts with sufficient certainty to allow such amount or
\nrange of amounts to be meaningful. While the outcome
\nof said cases, claims and disputes cannot be predicted
\nwith certainty, we believe, based upon legal advice and
\ninformation received, that the final outcome will not
\nmaterially affect our consolidated financial position but
\ncould be material to our results of operations or cash flows
\nin any one accounting period.
\nProvisions for restructuring of activities
\nProvisions for restructuring of activities comprise of accru-
\nals for certain employee benefits and for costs which are
\ndirectly associated with plans to exit or cease specific
\nactivities and closing down of facilities. For all restructuring
\nprovisions, a detailed formal plan exists and the imple-
\nmentation of the plan has started or the plan has been
\nannounced before the balance sheet date. Most restruc-
\nturing plans are expected to be completed within one year
\nfrom the balance sheet date.
\nEnvironmental liabilities
\nWe are confronted with costs arising out of environmental
\nlaws and regulations, which include obligations to eliminate
\nor limit the effects on the environment of the disposal or
\nrelease of certain wastes or substances at various sites.
\nProceedings involving environmental matters, such as the
\nalleged discharge of chemicals or waste materials into
\nthe air, water, or soil, are pending against us in various
\ncountries. In some cases, this concerns sites divested
\nin prior years or derelict sites belonging to companies
\nacquired in the past.
\nThe provision has been discounted using an average
\npre-tax discount rate of 3.8% (2021: 1.0%).
\n130
AkzoNobel Report 2022
|
Financial statements
Movements in other provisions
\nLiabilities to
\nRestructuring
Environmental
(former)
\nIn \u20ac millions
of\u00a0activities
costs
employees
Sundry
Total
\nBalance at January 1, 2022
43
66
132
99
340
\nAdditions made during the year
49
10
15
66
140
\nUtilization
(41)
(14)
(14)
(62)
(131)
\nAmounts reversed during the year
(9)
(6)
(17)
(10)
(42)
\nUnwind of discount
\u2014
(6)
(11)
(1)
(18)
\nAcquisitions
\u2014
\u2014
5
2
7
\nChanges in exchange rates
\u2014
1
(3)
(1)
(3)
\nBalance at December 31, 2022
42
51
107
93
293
\nNon-current portion of provisions
1
38
88
40
167
\nCurrent portion of provisions
41
13
19
53
126
\nBalance at December 31, 2022
42
51
107
93
293
\nLiabilities to (former) employees
\nLiabilities to (former) employees consist of employer liability
\nplans, jubilee plans and other long-term compensation
\nplans. The majority of the cash outflows related to liabilities
\nto (former) employees is expected to be after five years.
\nIn calculating the liabilities to (former) employees, a
\npre-tax discount rate of on average 5.0% (2021: 1.5%)
\nhas been used.
\nSundry provisions
\nSundry provisions relate to a variety of provisions, including
\nprovisions for (customer) claims, sales returns, guarantees
\nand other operational provisions. The majority of the cash
\noutflows related to sundry provisions is expected to be
\nwithin one to five years. In calculating the sundry provi-
\nsions, a pre-tax discount rate of on average 5.3% (2021:
\n1.0%) has been used.
\nContingent liabilities
\nEstimating the impact of environmental liabilities often is
\ncomplex and requires significant judgement. It requires
\nthe assessment of many (often interconnected) elements,
\nwhich contain varying levels of uncertainty. Environmental
\nliabilities can change substantially, among others due to
\nthe emergence of additional information on the nature or
\nextent of the contamination, the geological circumstances,
\nchanges in (the interpretation and enforcement of) environ-
\nmental regulations, new and evolving analytical and reme-
\ndiation techniques, success or lack of success of currently
\nanticipated clean-up methods, actions by governmental
\nagencies or private parties, success in allocating liability to
\nother potentially responsible parties, the financial viability
\nof other potentially responsible parties and third-party
\nindemnitors, and/or other factors.
\nEspecially for some sites for which we are faced with
\nrelatively new legislation, which are in the early stages of
\ndiscussions with regulators, and/or where there is limited
\ninformation available from earlier experience, there may be
\nconsiderable variability between the clean-up activities that
\nare currently being undertaken or planned and the ultimate
\nactions that could be required. For such sites, the costs for
\nthe earlier years might be rather reliably estimable, whilst
\nfor later years it is much more difficult, if possible
\nat all, to estimate the cost of environmental compliance
\nand remediation. If the level of uncertainty is such that no
\nreliable estimate can be made for the longer-term costs,
\nno provision for such costs is recorded. While it is not
\nfeasible to predict the outcome of all pending environmen-
\ntal exposures, it is reasonably possible that there will
\nbe a need for future (changes to) provisions for environ-
\nmental costs which, in management\u2019s opinion, based on
\ninformation currently available, would not have a material
\neffect on the company\u2019s financial position but could be
\nmaterial to the company\u2019s results of operations in any one
\naccounting period.
\nA number of claims against AkzoNobel are pending, many
\nof which are contested. We are also involved in legal
\ndisputes and disputes with tax authorities in several juris-
\ndictions. AkzoNobel has provided various indemnities and
\nguarantees in respect of past divestments to the relevant
\npurchasers and their permitted assigns (if applicable),
\nwhich in general are capped in time and/or amount (in
\nproportion to the value received). The provided guarantees
\nand indemnities have varying maturity periods. AkzoNo-
\nbel has received various claims under such indemnities
\nand guarantees. In some instances, AkzoNobel has been
\nnamed as a direct defendant despite the divestments.
\nAkzo Nobel N.V. has withdrawn its declarations of joint
\nand several liability under Article 403 of Book 2 of the
\nDutch Civil Code for certain Dutch former Specialty
\nChemicals subsidiaries divested as per October 1, 2018,
\nand is following the procedures to terminate its residual
\nliability under those declarations under Article 404 of
\nBook 2 of the Dutch Civil Code. One objection against
\nthe termination of residual liability is still pending and
\nAkzoNobel, Nouryon and Nobian continue to cooperate
\nto get this resolved.
\nCurrent portion of provisions
\nThe current portion of post-retirement benefit provisions
\n(\u20ac40 million) and the current portion of other provisions
\n(\u20ac126 million) add up to \u20ac166 million (2021: \u20ac149 million),
\nas reflected in the balance sheet.
\nDiscount rates
\nThe discount rates used in calculating the provisions
\nrecognized at December 31, 2022 are mentioned in the
\nparagraphs on provisions for environmental costs, liabilities
\nto (former) employees and sundry provisions. Changes in
\ndiscount rates will affect our consolidated financial posi-
\ntion. A sensitivity test showed that a one percentage point
\nincrease or decrease of discount rates will have an impact
\ndown or up, respectively, of \u20ac6 million on the provisions
\nrecognized at December 31, 2022.
\n131
AkzoNobel Report 2022
|
Financial statements
Note 21 NET DEBT
\nNet debt
\nLong-term
Short-term
Short-term Cash and cash
\nin \u20ac millions
borrowings
borrowings
investments
equivalents
Net debt
\nNet debt at January 1, 2021
2,771
119
(250)
(1,606)
1,034
\nNet cash from operating activities
\u2014
\u2014
\u2014
(605)
(605)
\nAcquisitions
2
13
\u2014
73
88
\nInvestments in short-term investments
\u2014
\u2014
(56)
56
\u2014
\nRepayments of short-term investments
\u2014
\u2014
247
(247)
\u2014
\nNet cash from other investing activities
\u2014
\u2014
\u2014
252
252
\nBuy-out of non-controlling interests
\u2014
\u2014
\u2014
1
1
\nUnwind of discount and amortized cost
8
\u2014
1
\u2014
9
\nProceeds from borrowings
\u2014
1,143
\u2014
(1,143)
\u2014
\nBorrowings repaid
\u2014
(590)
\u2014
590
\u2014
\nNew/modification/disposal of lease contracts
62
(1)
\u2014
\u2014
61
\nTransfers from long-term to short-term
(855)
855
\u2014
\u2014
\u2014
\nMovement bank overdrafts and short-term bank loans
\u2014
19
\u2014
(19)
\u2014
\nDividends
\u2014
\u2014
\u2014
391
391
\nShare buyback
\u2014
\u2014
\u2014
1,135
1,135
\nNet cash from discontinued operations
\u2014
\u2014
\u2014
1
1
\nChanges in exchange rates
6
(2)
\u2014
(31)
(27)
\nNet debt at December 31, 2021
1,994
1,556
(58)
(1,152)
2,340
\nNet debt at January 1, 2022
1,994
1,556
(58)
(1,152)
2,340
\nNet cash from operating activities
\u2014
\u2014
\u2014
(263)
(263)
\nAcquisitions
71
2
\u2014
588
661
\nInvestments in short-term investments
\u2014
\u2014
(1,361)
1,361
\u2014
\nRepayments of short-term investments
\u2014
\u2014
1,084
(1,084)
\u2014
\nNet cash from other investing activities
\u2014
\u2014
\u2014
230
230
\nBuy-out of non-controlling interests
\u2014
\u2014
\u2014
\u2014
\u2014
\nUnwind of discount and amortized cost
9
5
\u2014
\u2014
14
\nProceeds from borrowings
1,359
8,152
\u2014
(9,511)
\u2014
\nBorrowings repaid
\u2014
(7,322)
\u2014
7,322
\u2014
\nNew/modification/disposal of lease contracts
79
\u2014
\u2014
\u2014
79
\nTransfers from long-term to short-term
(139)
139
\u2014
\u2014
\u2014
\nMovement bank overdrafts and short-term bank loans
\u2014
16
\u2014
(16)
\u2014
\nDividends
\u2014
\u2014
\u2014
379
379
\nShare buyback
\u2014
\u2014
\u2014
669
669
\nNet cash from discontinued operations
\u2014
\u2014
\u2014
9
9
\nChanges in exchange rates
(41)
(5)
(1)
18
(29)
\nNet debt at December 31, 2022
3,332
2,543
(336)
(1,450)
4,089
\nAnalysis of net debt by category
\nIn \u20ac millions, at December 31
2021
2022
\nBonds issued
1,740
2,934
\nLease liabilities
212
198
\nOther long-term borrowings
42
200
\nLong-term borrowings
1,994
3,332
\nCurrent portion of long-term borrowings
754
2
\nCurrent portion of lease liabilities
87
86
\nDebt to credit institutions
711
2,450
\nOther short-term borrowings
4
5
\nShort-term borrowings
1,556
2,543
\nTotal borrowings
3,550
5,875
\nShort-term investments
(58)
(336)
\nCash and cash equivalents
(1,152)
(1,450)
\nNet debt
2,340
4,089
\nAkzoNobel\u2019s net debt is mainly denominated in euro.
\nMulti-currency revolving credit facility
\nWe have a multi-currency revolving credit facility of \u20ac1.3
\nbillion which runs until 2026. This facility does not contain
\nfinancial covenants or acceleration provisions that are
\nbased on adverse changes in ratings or material adverse
\nchange. At year-end 2022 and 2021, this facility has not
\nbeen drawn.
\nLong-term borrowings
\nBonds issued
\nIn \u20ac millions, at December 31
2021
2022
\n1 3/4% 2014/24 (\u20ac500 million)
499
499
\n1 1/8% 2016/26 (\u20ac500 million)
497
498
\n1 5/8% 2020/30 (\u20ac750 million)
744
745
\n1 1/2% 2022/28 (\u20ac600 million)
\u2014
595
\n2% 2022/32 (\u20ac600 million)
\u2014
597
\nTotal
1,740
2,934
\nIn March 2022, two bonds were issued with nominal
\nvalues of \u20ac600 million each, of which one at a coupon
\nrate of 1.5%, maturing in 2028 and one at a coupon rate
\nof 2.0%, maturing in 2032. For details on the exposure to
\ninterest rate and foreign currency risk, refer to Note 27.
\nThe average effective interest rate of the bonds included in
\nlong-term borrowings at year-end 2022 was 1.6% (year-
\nend 2021: 1.9%).
\nAkzoNobel Report 2022
|
Financial statements
132
Aggregated maturities of long-term borrowings
\nIn \u20ac millions
2024-2027
After 2027
\nBonds issued
997
1,937
\nLease liabilities
153
45
\nOther long-term borrowings
175
25
\nTotal
1,325
2,007
\nThe increase in Other long term borrowings is related to
\nloans included in the balance sheet of acquired companies
\nand acquisition related financing.
\nThe blended incremental borrowing rate applied to the
\nlease liabilities at year-end 2022 was 1.9% (2021: 1.8%).
\nAt year-end 2022 and 2021, none of the borrowings was
\nsecured by collateral.
\nShort-term borrowings
\nThe current portion of long-term borrowings decreased
\nmainly due to the maturing of a \u20ac750 million bond in
\nJuly 2022.
\nDebt to credit institutions includes our commercial paper
\nprogram. We have US dollar and euro commercial paper
\nprograms in place, which can be used to the extent that
\nthe equivalent portion of the \u20ac1.3 billion multi-currency
\nrevolving credit facility is not used. We had \u20ac1.3 billion
\ncommercial paper outstanding at year-end 2022 (2021:
\n\u20ac371 million) against an average interest rate of 1.6%
\n(2021: 0.5% negative). At year-end 2022, we had short-
\nterm bank loans outstanding of \u20ac1.1 billion (2021:
\n\u20ac300 million) against a 3-months Euribor plus a mark-up
\n(2021: 0.6% negative). None of these facilities contain
\nfinancial covenants.
\nShort-term investments
\nShort-term investments almost entirely consist of time
\ndeposits, money market funds and other marketable secu-
\nrities with a life time at investment date longer than three
\nmonths but shorter than twelve months. For more informa-
\ntion on credit risk management, refer to Note 27.
\nCash and cash equivalents
\nDeposits and money market funds within cash and cash
\nequivalents almost entirely consist of time deposits imme-
\ndiately convertible into known amounts of cash and with a
\nmaturity of three months or less from the date of purchase,
\nand marketable securities that can be redeemed immedi-
\nately when called.
\nAt December 31, 2022, an amount of \u20ac11 million in
\ncash and cash equivalents was restricted (2021:
\n\u20ac14 million). Restricted cash is defined as cash that
\ncannot be accessed centrally due to regulatory or
\ncontractual restrictions.
\nCash and cash equivalents
\nIn \u20ac millions, at December 31
2021
2022
\nCash on hand and in banks
877
922
\nShort-term investments with a life up
275
528
\nto three months
\nIncluded in cash and cash equiva-
1,152
1,450
\nlents in the balance sheet
\nDebt to credit institutions
(40)
(52)
\nTotal per statement of cash \ufb02ows
1,112
1,398
\nNote 22 TRADE AND OTHER PAYABLES
\nTrade and other payables
\nIn \u20ac millions, at December 31
2021
2022
\nTrade payables
2,376
2,206
\nTaxes and social security
191
184
\nAmounts payable to employees
264
234
\nInterest
42
58
\nFX contracts
27
60
\nDividends
6
4
\nOther liabilities
42
55
\nTotal
2,948
2,801
\nTrade and other payables can be broken down as per the
\nabove table. Other liabilities consist of a large number of
\nindividually immaterial items.
\nNote 23 CASH FLOW
\nOperating activities in 2022 resulted in a cash inflow of
\n\u20ac263 million (2021: cash inflow of \u20ac605 million).
\nThe amounts in the following table cannot be reconciled
\ndirectly to the respective balance sheet positions. They
\nreflect changes in balance sheet positions only to the
\nextent these have a cash flow impact, or they reverse the
\nnon-cash impact as included in profit for the period. These
\namounts exclude non-cash movements such as unwind-
\ning of discount, movements through other comprehensive
\nincome, acquisitions and divestments, and changes in
\nexchange rates.
\nChanges in working capital as per consolidated
\nstatement of cash \ufb02ows
\nIn \u20ac millions
2021
2022
\nTrade and other receivables
(240)
(95)
\nInventories
(439)
(134)
\nTrade and other payables
274
(280)
\nTotal
(405)
(509)
\nNote 24 COMMITMENTS
\nPurchase commitments for property, plant and equipment
\naggregated \u20ac23 million (2021: \u20ac35 million).
\nNote 25 RELATED PARTY
\nTRANSACTIONS
\nWe purchased and sold goods and services to various
\nrelated parties in which we hold a 50% or less equity inter-
\nest (associates and joint ventures). Such transactions were
\nconducted at terms comparable with transactions with
\nthird parties.
\nDuring 2022, we considered the members of the Execu-
\ntive Committee and the Supervisory Board to be the key
\nmanagement personnel as defined in IAS 24 \u201cRelated
\nparties\u201d. For details on their remuneration, as well as on
\nshares held by members of the Supervisory Board or
\nBoard of Management, refer to Note 26. In the ordinary
\ncourse of business, we also have transactions with various
\norganizations with which certain members of the Supervi-
\nsory Board or Executive Committee are associated.
\nFor related party transactions with pension funds, refer to
\nNotes 15 and 19.
\nAkzoNobel Report 2022
|
Financial statements
133
Note 26 REMUNERATION OF THE
\nSUPERVISORY BOARD AND THE
\nBOARD OF MANAGEMENT
\nTotal compensation for key management personnel
\nexpensed during the period amounted to \u20ac13.2 million
\n(2021: \u20ac14.4 million). An amount of \u20ac7.4 million relates to
\nshort-term employee benefits (2021: \u20ac6.6 million); \u20ac0.8
\nmillion relates to post contract benefits and other post
\ncontract compensation (2021: \u20ac0.6 million); \u20ac3.0 million
\nrelates to share-based compensation (2021: \u20ac7.2 million);
\nno payments relate to other long-term incentives (2021:
\n\u20acnil); \u20ac2.0 million payments relate to payments upon termi-
\nnation of employment (2021: \u20acnil). Additional charges were
\naccrued which relate to taxation on excessive pay of \u20ac1.0
\nmillion (\u201cBelasting heffing excessieve beloningsbestand-
\ndelen\u201d) (2021: \u20acnil).
\nThis compensation includes total remuneration for the
\nmembers of the Supervisory Board of \u20ac0.9 million (2021:
\n\u20ac0.8 million) and for the members of the Board of Manage-
\nment of \u20ac2.0 million (2021: \u20ac8.9 million). For more details
\non the remuneration of the individual members of the
\nSupervisory Board and the Board of Management refer-
\nence is made to the Remuneration report.
\nIn accordance with the Articles of Association and good
\ncorporate governance practice, the remuneration of
\nSupervisory Board members is not dependent on the
\nresults of the company. We do not grant share-based
\ncompensation to our Supervisory Board members.
\nShares held by the members of the
\nSupervisory Board
\nNumber of shares at year-end
2021
2022
\nNils Smedegaard Andersen, Chair
4,500
4,500
\nByron Grote*
7,394
8,061
\nPamela Kirby
\u2014
\u2014
\nDick Sluimers
\u2014
\u2014
\nPatrick Thomas
\u2014
\u2014
\nJolanda Poots-Bijl
\u2014
\u2014
\nEster Baiget
\u2014
\u2014
\nHans Van Bylen
\u2014
\u2014
\n* In the form of ADRs.
\nShares held by the Board of Management
\nNumber of shares at year-end
2021
2022
\nGreg Poux-Guillaume*
\u2014
\u2014
\nMaarten de Vries
14,643
21,766
\n*Appointed CEO as per November 1, 2022, replacing Thierry Vanlancker.
\nAn overview of shares held by the Supervisory Board
\nmembers is provided on this page. A similar overview is
\nprovided of the shares held by the Board of Management.
\nLoans
\nThe company does not grant loans, advance payments
\nor guarantees to members of the Supervisory Board,
\nmembers of the Executive Committee or any family
\nmembers of such persons.
\nNote 27 FINANCIAL RISK MANAGEMENT
\nFINANCIAL RISK MANAGEMENT
\nFRAMEWORK
\nOur activities expose us to a variety of financial risks:
\nliquidity risk, credit risk and market risk (including foreign
\nexchange rate risk, interest rate risk and capital risk).
\nThese risks are inherent to the way we operate as a multi-
\nnational with a large number of locally operating subsid-
\niaries. Our overall risk management program seeks to
\nidentify, assess, and \u2013 if necessary and possible \u2013 mitigate
\nthese financial risks in order to minimize potential adverse
\neffects on our financial performance.
\nOur risk mitigating activities include the use of derivative
\nfinancial instruments to hedge certain risk exposures.
\nThe Board of Management is ultimately responsible for risk
\nmanagement. We centrally identify, evaluate and hedge
\nfinancial risks, and monitor compliance with the corporate
\npolicies approved by the Board of Management, except
\nfor commodity risks, which are subject to identification,
\nevaluation, hedging and monitoring in the businesses.
\nNext to our centralized Treasury organization in Amster-
\ndam, we have treasury hubs located in Brazil and China
\nthat are primarily responsible for regional cash manage-
\nment and short-term financing. We do not allow exten-
\nsive treasury operations directly with external parties at
\nsubsidiary level.
\nMaturity of liabilities and cash out\ufb02ows
\nLess than
Between
Over 5
\nIn \u20ac millions
1\u00a0year
1\u00a0and\u00a05\u00a0years
years
\nAt December 31, 2021
\nBorrowings
1,469
1,006
776
\nInterest on borrowings
60
134
40
\nLease liabilities
87
165
47
\nTrade and other payables
2,921
\u2014
\u2014
\nFX contracts (hedges)
\nOutflow
2,819
\u2014
\u2014
\nInflow
(2,806)
\u2014
\u2014
\nTotal
4,550
1,305
863
\nAt December 31, 2022
\nBorrowings
2,457
1,172
1,962
\nInterest on borrowings
118
197
84
\nLease liabilities
86
153
45
\nTrade and other payables
2,741
\u2014
\u2014
\nFX contracts (hedges)
\nOutflow
3,097
\u2014
\u2014
\nInflow
(3,055)
\u2014
\u2014
\nTotal
5,444
1,522
2,091
\nLIQUIDITY RISK MANAGEMENT
\nThe primary objective of liquidity management is to provide
\nfor sufficient cash and cash equivalents at all times and
\nany place in the world to enable us to meet our payment
\nobligations. We aim for a well-spread maturity schedule of
\nour long-term borrowings and a strong liquidity position.
\nAt year-end 2022, we had \u20ac1.5 billion available as cash
\nand cash equivalents (2021: \u20ac1.2 billion) and \u20ac336 million
\navailable as short-term investments (2021: \u20ac58 million),
\nrefer to Note 21.
\nIn addition, we have a multi-currency revolving credit facil-
\nity of \u20ac1.3 billion which runs until 2026. This facility does
\nnot contain financial covenants or acceleration provisions
\nthat are based on adverse changes in ratings or on other
\nmaterial adverse changes. At year-end 2022 and 2021,
\nthis facility had not been drawn. We have US dollar and
\neuro commercial paper programs in place, which can be
\nused to the extent that the equivalent portion of the \u20ac1.3
\nbillion multi-currency revolving credit facility is not used.
\n134
AkzoNobel Report 2022
|
Financial statements
We had \u20ac1.3 billion commercial paper outstanding at
\nyear end 2022 (2021: \u20ac371 million) against an average
\ninterest rate of 1.6% (2021: average interest rate of 0.5%
\nnegative). Further, at year-end 2022, we had \u20ac1.1 billion
\nshort-term bank loans outstanding (2021: \u20ac300 million)
\nagainst 3-months Euribor plus a mark-up (2021: interest
\nrate of 0.6% negative). None of these facilities contain
\nfinancial covenants. The table on maturity of liabilities and
\ncash outflows in this Note shows our cash outflows per
\nmaturity group. The amounts disclosed in the table are the
\ncontractual undiscounted cash flows.
\nCREDIT RISK MANAGEMENT
\nCredit risk arises from financial assets such as cash and
\ncash equivalents, deposits with financial institutions,
\nmoney market funds, trade receivables and derivative
\nfinancial instruments with a positive fair value. We have
\na credit risk management policy in place to limit credit
\nlosses due to non-performance of financial counterparties
\nand customers. We monitor our exposure to credit risk
\non an ongoing basis at various levels. We only deal with
\nfinancial counterparties that have a sufficiently high credit
\nrating. Generally, we do not require collateral in respect of
\nfinancial assets. Investments in cash and cash equivalents,
\nshort-term investments and transactions involving
\nderivative financial instruments are entered into with
\ncounterparties that have sound credit ratings and a good
\nreputation. Derivative transactions are concluded mostly
\nwith parties with whom we have contractual netting agree-
\nments and ISDA agreements in place. We set limits per
\ncounterparty for the different types of financial instruments
\nwe use. We closely monitor the acceptable financial
\ncounterparty credit ratings and credit limits and revise
\nwhere required in line with the market circumstances.
\nWe do not expect non-performance by the counterparties
\nfor these financial instruments. Due to our geographical
\nspread and the diversity of our customers, we were not
\nsubject to any significant concentration of credit risks at
\nbalance sheet date.
\nThe credit risk from trade receivables is measured and
\nanalyzed by dedicated teams in the businesses, mainly
\nby means of ageing analysis, refer to Note 17. Addition-
\nally, trade receivables and financial assets measured at
\namortized cost are subject to the expected credit loss
\nimpairment model either using the general or the simplified
\napproach. For more information on the applied impairment
\napproaches per financial asset type, refer to Note 1.
\nThe maximum exposure to credit risk is represented by the
\ncarrying value of financial assets in the balance sheet.
\nAt year-end 2022, the credit risk on consolidated level was
\n\u20ac4.6 billion (2021: \u20ac3.9 billion) for cash and cash equiva-
\nlents, short-term investments, loans, trade and other
\nreceivables. Our credit risk is well spread among both
\nglobal and local counterparties. Our largest counterparty
\nrisk amounted to \u20ac280 million at year-end 2022 (2021:
\n\u20ac301 million).
\nFOREIGN EXCHANGE RISK
\nMANAGEMENT
\nTrade and \ufb01nancing transactions
\nWe operate in a large number of countries, where we have
\nclients and suppliers, many of whom are outside of
\nthe local functional currency environment. This creates
\ncurrency exposures which are partly netted out on group
\nlevel. The purpose of our foreign currency hedging
\nactivities is to protect us from the risk that the functional
\ncurrency net cash flows resulting from trade or financ-
\ning transactions are adversely affected by changes in
\nexchange rates. Our policy is to hedge our transactional
\nforeign exchange rate exposures above predefined
\nthresholds from recognized assets and liabilities. Hedge
\naccounting is generally not applied for foreign currency
\nhedging activities, except for certain specific forecasted
\ntransactions. In 2022 and 2021, we applied cash flow
\nhedge accounting on a COP 1,600 billion hedge of the
\nforeign currency risk related to the acquisition of Grupo
\nOrbis which was finalized in April 2022. The hedges
\nmatured in April 2022. The fair value of the cash flow
\nhedge of \u20ac31 million (positive) has subsequently been
\nreleased from other comprehensive income and allo-
\ncated to the purchase consideration. The hedges were
\nfully effective during 2022 and 2021. In 2022, cash flow
\nhedge accounting was applied on a $450 million hedge
\nfor foreign currency risk exposure related to the intended
\nacquisition of Kansai Paint\u2019s African activities, refer to
\nNote 2 for further details. The fair value of this hedge at
\nyear-end 2022 was \u20ac37 million negative; the spot result
\nrelated to this hedge was recognized in other compre-
\nhensive income and accumulated in the cash flow hedge
\nHedged notional amounts at year-end
\nBuy
Sell
Buy
Sell
\nIn \u20ac millions
2021
2021
2022
2022
\nUS dollar
263
413
784
692
\nPound sterling
601
45
649
10
\nChinese yuan
179
145
110
157
\nColombian peso
348
1
\u2014
1
\nOther*
391
745
278
821
\nTotal
1,782
1,349
1,821
1,681
\n* No individually significant position is included in \u2018Other\u2019, the amounts per currency
\nare highly disaggregated.
\nreserve. The hedge will mature in the course of 2023.
\nDuring 2022, the hedge was fully effective.
\nIn general, our forward exchange contracts have a maturity
\nof less than one year. When necessary, forward exchange
\ncontracts are rolled over at maturity. Currency derivatives
\nare not used for speculative purposes.
\nInvestments in foreign subsidiaries, associates
\nand joint ventures
\nDuring 2022 and 2021, net investment hedge account-
\ning was applied on hedges of certain net investments in
\nforeign operations, which were partly hedged. The main
\nnet investments that were hedged with forward exchange
\ncontracts for the same currencies were related to Chinese
\nyuan, Indonesian rupiah and Indian rupee (2021: Brazilian
\nreal, Chinese yuan, Indonesian rupiah and Vietnamese
\ndong). The spot results related to these hedges were
\nrecognized in other comprehensive income and accumu-
\nlated in the cumulative translation reserves. In addition,
\na net investment in Colombian peso was hedged with a
\nCOP 330 million bank loan. The spot result related to this
\nhedge was recognized in other comprehensive income
\nand accumulated in the cumulative translation reserves. At
\nyear-end 2022, the hedge of net investment in Colombian
\npeso was outstanding. During 2022 and 2021, the hedges
\nof net investments were fully effective.
\nINTEREST RATE RISK MANAGEMENT
\nWe are partly financed with debt in order to obtain more
\nefficient leverage. Fixed rate debt results in fair value inter-
\nest rate risk. Floating rate debt results in cash flow interest
\nrate risk. We treat fixed rate debt maturing within one year
\n135
AkzoNobel Report 2022
|
Financial statements
as floating rate debt for debt portfolio purposes. At the end
\nof 2022, the fixed/floating ratio of our outstanding bonds
\nwas 100 percent fixed (2021: 70 percent fixed). During
\n2022 and 2021, we have not used any interest
\nrate derivatives.
\nIBOR reform refers to the global reform of interest rate
\nbenchmarks, which includes the replacement of some
\ninterbank offered rates (IBOR) with alternative benchmark
\nrates. Our long-term borrowings have fixed interest rates
\nand we currently do not have any interest related hedging
\ninstruments. Fallback language has been added to our
\ncontracts while preparing for the transition to new rates.
\nBased on this and following an internal assessment of the
\nimpact of the IBOR reform, we conclude that the interest
\nrate benchmark reform does not have a material impact on
\nthe company\u2019s financial statements.
\nCAPITAL RISK MANAGEMENT
\nOur objectives when managing capital are to safeguard
\nour ability to satisfy our capital providers and to maintain a
\ncapital structure that optimizes our cost of capital. For this
\nwe maintain an adequate financial strategy, with the objec-
\ntive to retain a strong investment grade credit rating as
\nassigned by the rating agencies Moody\u2019s and Standard &
\nPoor\u2019s. The capital structure can be altered, among others,
\nby adjusting the amounts of dividends paid to sharehold-
\ners, return of capital to capital providers, or issuance of
\nnew debt or shares. In March 2022, two bonds were
\nissued with nominal values of \u20ac600 million each of which
\none at a coupon rate of 1.5%, maturing in 2028 and one
\nat a coupon rate of 2.0%, maturing in 2032. In July 2022,
\na bond of \u20ac750 million matured.
\nConsistent with other companies in the industry, we
\nmonitor capital headroom based on the leverage ratio
\nnet debt/EBITDA, for which we have set a target range
\nof around 2. The ratio was 3.8 at December 31, 2022
\n(December 31, 2021: 1.6). EBITDA is operating income
\nexcluding depreciation and amortization, which amounted
\nto \u20ac1,076 million for 2022 (2021: \u20ac1,469 million). Net debt
\nis calculated as the total of long- and short-term borrow-
\nings less cash and cash equivalents and short-term invest-
\nments, amounting to \u20ac4,089 million at year end 2022 (year
\nend 2021: \u20ac2,340 million).
\nFair value per \ufb01nancial instrument category
\nCarrying value per IFRS 9
\ncategory
\nMeasured
Fair value
\nMeasured at
at fair value
of items
\nCarrying
Out of scope
amortized
through pro\ufb01t
Total
measured at
\nIn \u20ac millions
amount
of IFRS 7
\n1
\ncost
or loss
carrying value
amortized cost
\n330
\n2021 year-end
\nFinancial non-current assets
\n2
\n2,076
1,766
302
8
310
\nTrade and other receivables
\n3
\n2,339
182
2,089
68
2,157
2,089
\nShort-term investments
58
\u2014
\u2014
58
58
\u2014
\nCash and cash equivalents
1,152
\u2014
\u2014
1,152
1,152
\u2014
\nTotal \ufb01nancial assets
5,625
1,948
2,391
1,286
3,677
2,419
\nLong-term borrowings
1,994
\u2014
1,994
\u2014
1,994
2,114
\nShort-term borrowings
1,556
\u2014
1,556
\u2014
1,556
1,570
\nTrade and other payables
\n4
\n2,948
455
2,466
27
2,493
2,466
\nTotal \ufb01nancial liabilities
6,498
455
6,016
27
6,043
6,150
\n2022 year-end
\n311
Financial non-current assets
\n2
\n1,475
1,158
308
9
317
\nTrade and other receivables
\n3
\n2,447
214
2,215
18
2,233
2,215
\nShort-term investments
336
\u2014
\u2014
336
336
\u2014
\nCash and cash equivalents
1,450
\u2014
\u2014
1,450
1,450
\u2014
\nTotal \ufb01nancial assets
5,708
1,372
2,523
1,813
4,336
2,526
\nLong-term borrowings
3,332
\u2014
3,332
\u2014
3,332
3,031
\nShort-term borrowings
2,543
\u2014
2,543
\u2014
2,543
2,543
\nTrade and other payables
\n4
\n2,801
418
2,323
60
2,383
2,323
\nTotal \ufb01nancial liabilities
8,676
418
8,198
60
8,258
7,897
\n1
\nMainly includes pension assets (refer to Note 15), (non) income tax related
\nreceivables (refer to Note 17), payables to employees and (non) income taxes payables
\n(refer to Note 22).
\n2
\n\u20ac308 million (2021: \u20ac302 million) relates to loans and receivables (refer to
\nNote 15), \u20ac9 million (2021: \u20ac8 million) relates to other than financial instruments
\n(refer to Note 15).
\n3
\n\u20ac2,215 million (2021: \u20ac2,089 million) relates to the remainder of trade and
\nother receivables (refer to Note 17) and \u20ac18 million (2021: \u20ac68 million) relates
\nto FX contracts.
\n4
\n\u20ac2,323 million (2021: \u20ac2,466 million) relates to the remainder of trade and other
\npayables (refer to Note 22) and \u20ac60 million (2021: \u20ac27 million) relates to
\nFX contracts.
\nFair value of \ufb01nancial instruments and
\nIFRS 9 categories
\nIn the table \u201cFair value per financial instrument category\u201d
\ninsight is provided in the recognition of the respec-
\ntive financial instruments per IFRS 9 category. The total
\ncarrying value is based on the accounting principles as
\noutlined in Note 1. Financial instruments are recognized at
\nfair value and subsequently recognized either at fair value
\nor at amortized cost, using the effective interest method.
\nThe financial instruments accounted for at fair value
\nthrough profit or loss are derivative financial instruments
\nand securities included in financial non-current assets,
\ncash and cash equivalents and short-term investments.
\nThe remaining financial instruments are accounted for at
\namortized cost.
\nThe following valuation methods for financial instruments
\ncarried at fair value through profit or loss are distinguished:
\n\u2022
Level 1: quoted prices (unadjusted) in active markets for
\nidentical assets or liabilities
\n\u2022
Level 2: inputs other than quoted prices included within
\nlevel 1 that are observable for the asset or liability,
\n136
AkzoNobel Report 2022
|
Financial statements
either directly (i.e. as prices) or indirectly (i.e. derived
\nfrom prices)
\n\u2022
Level 3: inputs for the asset or liability that are not based
\non observable market data (unobservable)
\nFor the purpose of determining the fair value per financial
\ninstrument category, shown in the column \u2018fair value\u2019, the
\nfollowing valuation methods were used:
\n\u2022
A level 1 valuation method was used to estimate the
\nfair value of the bonds issued included in our long-term
\nand short-term borrowings. The estimate is based on
\nthe quoted market prices for the same or similar issues
\nor on the current rates offered to us for debt with similar
\nmaturities.
\n\u2022
A level 2 valuation method was used to determine the
\nfair value of marketable securities included in cash
\nand cash equivalents and short-term investments by
\nobtaining the market price at reporting date. The fair
\nvalue of foreign currency contracts and swap contracts
\nwas determined by level 2 valuation techniques using
\nmarket observable input (such as foreign currency
\ninterest rates based on Reuters) and by obtaining
\nquotes from dealers and brokers. A level 2 valuation
\nmethod was used to determine the fair value of time
\ndeposits included in cash and cash equivalents and
\nshort-term investments using the market interest
\nrate. The carrying amounts of cash and banks, trade
\nreceivables less allowance for impairment, other short-
\nterm borrowings and other current liabilities approximate
\nfair value due to the short maturity period of those
\ninstruments and were determined using level 2 fair value
\nmethods.
\n\u2022
A level 3 fair valuation method (discounted cash flow)
\nwas used for the subordinated loan granted to the
\nPension Fund APF in the Netherlands, resulting in a fair
\nvalue of \u20ac93 million.
\nMASTER NETTING AGREEMENTS
\nWe enter into derivative transactions under International
\nSwaps and Derivatives Association (ISDA) master netting
\nagreements. In general, under such agreements the
\namounts owed by each counterparty on a single day in
\nSensitivities on \ufb01nancial instruments at year-end 2022
\nSensitivity object
Sensitivity
Hypothetical impact
\nForeign currencies:
\nWe perform foreign currency sensitivity analysis by
A 10% (2021: 10%) strengthening of the euro
Profit \u20ac9 million (2021: profit \u20ac6 million);
\napplying an adjustment to the spot rates prevailing
versus US dollar
Other comprehensive income loss \u20ac41
\nat year-end. This adjustment is based on observed
million (2021: profit \u20ac1 million)
\nchanges in the exchange rate in the past and manage-
A 10% (2021: 10%) strengthening of the euro
\nment\u2019s expectation for reasonably possible* future
versus the pound sterling
Profit \u20ac1 million (2021: profit \u20ac1 million)
\nmovements over a longer term from a sensitivity test
\nperspective. We then apply the expected possible
A 10% (2021: 10%) strengthening of the euro
Profit \u20ac1 million (2021: \u20acnil). Other compre-
\nvolatility to revalue all monetary assets and liabilities
versus Chinese yuan
hensive income \u20acnil (2021: profit \u20ac2 million)
\n(including derivative financial instruments) in a currency
\nother than the functional currency of the subsidiary in
A 10% (2021: 10%) strengthening of the euro
Profit \u20acnil (2021: \u20acnil). Other comprehensive
\nthe balance sheet at year-end. These effects are of a
versus Colombian peso
income \u20acnil (2021: loss \u20ac35 million)
\nfairly linear nature.
\nInterest rate:
\nWe perform interest rate sensitivity analysis by applying
A 100 basis points increase of
Loss \u20ac16 million (2021: loss \u20ac11 million)
\nan adjustment to the interest rate curve prevailing
EUR interest rates
\nat year-end. This adjustment is based on observed
\nchanges in the interest rate in the past and manage-
A 100 basis points increase of
Profit \u20ac1 million
(2021: \u20acnil)
\nment\u2019s expectation for reasonably possible* future
USD interest rates
\nmovements over a longer term from a sensitivity test
\nperspective. We then apply the expected possible
A 100 basis points increase of
Profit \u20ac1 million (2021: profit \u20ac1 million)
\nvolatility to revalue all interest bearing assets and liabili-
GBP interest rates
\nties. These effects are of a fairly linear nature.
\n*
This analysis does not indicate any probability of such changes occurring; nor does it preclude
\nlarger changes in any given period or longer term.
\nrespect of transactions outstanding in the same currency
\nmay be aggregated into a single net amount that is
\npayable by one party to the other. In certain circumstances
\n\u2013 e.g. when a credit event such as a default occurs \u2013 all
\noutstanding transactions under the agreement may be
\nterminated, the termination value is assessed and a net
\namount is payable in settlement of the transactions. We
\nhave evaluated the potential effect of netting agreements,
\nincluding the effect of rights of set-off and concluded
\nthe impact is immaterial. We did not offset any amounts
\nregarding derivative transactions.
\nNote 28 SUBSEQUENT EVENTS
\nNo significant subsequent events have been identified.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNotesAndOtherExplanatoryInformationExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14203": {
"value": "Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
\nGENERAL INFORMATION
\nAkzo Nobel N.V. is a public limited liability company
\nheadquartered in the Netherlands. The address of our
\nregistered office is Christian Neefestraat 2, Amsterdam;
\nthe Chamber of Commerce number is 09007809. We
\nhave attached a list of subsidiaries, associated companies
\nand joint ventures, drawn up in conformity with Articles
\n379 and 414 of Book 2 of the Dutch Civil Code, as
\nan appendix to our annual report. The principal activity of
\nAkzoNobel is the production and selling of paints
\nand coatings.
\nWe have prepared the Consolidated financial statements
\nof Akzo Nobel N.V. in accordance with International Finan-
\ncial Reporting Standards (IFRS) as adopted by the Euro-
\npean Union. The Consolidated financial statements also
\ncomply with the financial reporting requirements included
\nin Title 9 of Book 2 of the Dutch Civil Code.
\nThe Management report within the meaning of Article 391
\nof Book 2 of the Dutch Civil Code consists of the following
\nparts of the annual report:
\n\u2022
2022 results at a glance
\n\u2022
CEO statement
\n\u2022
How we created value
\n\u2022
Strategy and operations
\n\u2022
Sustainability statements
\n\u2022
Leadership and governance: Our Board of Management
\nand Executive Committee
\n\u2022
Leadership and governance: Statement of the Board of
\nManagement
\n\u2022
Leadership and governance: Corporate governance
\nstatement
\n\u2022
Leadership and governance: Risk management
\n\u2022
Leadership and governance: Integrity and compliance
\nmanagement
\n\u2022
Leadership and governance: Remuneration report
\n\u2022
Financial information: Note 6 Operating income
\n\u2022
Financial information: Note 27 Financial risk management
\nOn February 27, 2023, the Board of Management
\nauthorized the financial statements for issue. The financial
\nstatements as presented in this report are subject to adop-
\ntion by the Annual General Meeting of shareholders on
\nApril 21, 2023.
\nGOING CONCERN
\nThe Consolidated financial statements have been prepared
\non a going concern basis, resulting from management\u2019s
\nassessment of the ability of AkzoNobel to continue its
\noperations for the foreseeable future.
\nManagement has assessed the ability of AkzoNobel to
\ncontinue as a going concern based on an evaluation of,
\namongst others, the financial position, expected future
\ncash flows and market developments.
\nAt December 31, 2022, cash and cash equivalents were
\n\u20ac1.5 billion. We also assessed the ability of the company
\nto obtain financing, taking into account the company\u2019s
\nexternal credit rating which we are committed to retain at
\nstrong investment grade.
\nExpected future cash flows are based on the latest
\nforecasts. These forecasts take into account internal and
\nexternal developments relevant in the assessment of
\nthe ability of AkzoNobel to continue as a going concern,
\nincluding but not limited to market developments (see
\ndisclosure on e.g. impact from the war in Ukraine and the
\nsanctions on Russia in this Note), developments in the
\nmacro-economic environment (e.g. inflation, see disclosure
\non inflation in this Note) and climate-related developments
\n(see disclosure on climate change in this Note).
\nManagement\u2019s assessment did not lead to uncertainties
\nin relation to AkzoNobel\u2019s ability to continue as a
\ngoing concern.
\nIMPACT OF CLIMATE CHANGE
\nThe potential effects on the financial statements of climate
\nchange have been assessed. This includes the impact
\nof physical risks, such as those associated with water
\nscarcity, flooding and weather events and transitional risks
\nthat can lead to changes in technology, market dynam-
\nics and regulations. Also considered were AkzoNobel\u2019s
\ncommitments to reduce carbon emissions as approved
\nby the Science Based Targets initiative (SBTi), and related
\nestimates as to investments and the timing thereof.
\nThe resulting impact on the financial statements, including
\nin the areas of fixed assets depreciation and recoverability
\nassessments, was not material to AkzoNobel\u2019s financial
\nposition and results of operations as of and for the year
\nended December 31, 2022.
\nIMPACT FROM THE WAR IN UKRAINE
\nAND SANCTIONS ON RUSSIA
\nOur business in Ukraine and Russia combined represents
\nabout 2% of our revenue (2021: 2%), of which the vast
\nmajority concerned Russia.
\nFollowing the EU sanctions, the majority of our Perfor-
\nmance Coatings activities in Russia was suspended
\nand the residual Russian business is locally operated.
\nAkzoNobel has assessed the potential accounting impact
\nfrom the localization of the Russian business. Taking into
\naccount the applicable IFRS standards, we have conclud-
\ned that our Russian business can still be included in our
\nscope of consolidation.
\nNo significant impairments of assets occurred in Russia; in
\nUkraine, the value of the assets is immaterial.
\nIMPACT OF INFLATION
\nThe financial year 2022 was a year of significant inflation
\ndue to geopolitical and macro-economic developments.
\nThe impacts from rising inflation have been considered
\nin the financial statements where relevant. Reference is
\nmade to Note 6 Operating income on financial develop-
\nments in the year, Note 11 Intangible assets on the annual
\nimpairment testing process, Note 16 on the impact of raw
\nmaterial increases, Note 19 Post-retirement benefit provi-
\n103
AkzoNobel Report 2022
|
Financial statements
sions on the impact of inflation rate on the DBO and Note
\n27 Financial Risk Management on sensitivities in relation to
\nchanges in interest rate.
\nCONSOLIDATION
\nThe Consolidated financial statements include the accounts
\nof Akzo Nobel N.V. and its subsidiaries. Subsidiaries are com-
\npanies over which Akzo Nobel N.V. has control, because it
\nis exposed, or has rights, to variable returns from its involve-
\nment with the subsidiary and has the ability to affect returns
\nthrough its power over the subsidiary. Non-controlling inter-
\nests in equity and in results are presented separately.
\nCHANGES IN ACCOUNTING POLICIES
\nAND FIRST TIME APPLICATION
\nAccounting pronouncements with potential relevance for
\nAkzoNobel, which became effective for 2022 (amend-
\nments to IFRS 3 \u201cReference to the Conceptual Frame-
\nwork\u201d, amendments to IAS 16 \u201cProperty, Plant and
\nEquipment: Proceeds before Intended Use\u201d, amendments
\nto IAS 37 \u201dOnerous Contracts \u2013 Costs of Fulfilling a
\nContract\u201d and \u201cAnnual Improvements to IFRS Standards
\n2018-2020\u201d) had no material impact on our Consolidated
\nfinancial statements.
\nDISCONTINUED OPERATIONS
\nA discontinued operation is a component of our busi-
\nness that represents a separate major line of business or
\ngeographical area of operations that has been disposed
\nof or is held for sale, or is a subsidiary acquired exclusively
\nwith a view to resale. Assets and liabilities are classified as
\nheld for sale if it is highly probable that the carrying value
\nwill be recovered through a sale transaction within one
\nyear rather than through continuing use. When reclassify-
\ning assets and liabilities as held for sale, we recognize the
\nassets and liabilities at the lower of their carrying value or
\nfair value less costs to sell. Assets held for sale are not
\ndepreciated and amortized but tested for impairment. In
\ncase of discontinued operations, the comparative figures
\nin the Consolidated statement of income and Consolidated
\nstatement of cash flows are represented. The balance
\nsheet comparative figures are not represented.
\nUSE OF ESTIMATES
\nThe preparation of the financial statements in compliance
\nwith IFRS requires management to make judgments, esti-
\nmates and assumptions that affect amounts reported in
\nthe financial statements. The estimates and assumptions
\nare based on experience and various other factors that
\nare believed to be reasonable under the circumstances
\nand are used to judge the carrying values of assets and
\nliabilities that are not readily apparent from other sources.
\nThe estimates and underlying assumptions are reviewed
\non an ongoing basis. The most critical accounting policies
\ninvolving a higher degree of judgment and complexity in
\napplying principles of valuation and for which changes in
\nthe assumptions and estimates could result in significantly
\ndifferent results than those recorded in the financial state-
\nments are the following:
\n\u2022
Scope of consolidation, including purchase price
\nallocations for business combinations (Note 2)
\n\u2022
Income tax and deferred tax assets, including uncertain
\ntax positions (Note 9)
\n\u2022
Impairment of intangible assets, property, plant and
\nequipment and right-of-use assets (Note 11, 12, 13)
\n\u2022
Post-retirement benefit provisions (Note 19)
\n\u2022
Provisions and contingent liabilities (Note 20)
\nBUSINESS COMBINATIONS (NOTE 2)
\nIn business combinations, identifiable assets and liabilities,
\nand contingent liabilities are recognized at their fair values
\nat the acquisition date. Determining the fair value requires
\nsignificant judgments on future cash flows to be generated.
\nGoodwill in a business combination represents the excess
\nof the consideration paid over the net fair value of the
\nacquired identifiable assets, liabilities and contingent liabili-
\nties. If the cost of an acquisition is less than the fair value of
\nthe net assets of the subsidiary acquired, the difference is
\nrecognized directly in the statement of income.
\nThe fair value of brands, customer relationships and
\nknow-how acquired in a business combination is estimated
\nusing generally accepted valuation methods. These include
\nthe relief-from-royalty method, the incremental cash flow
\nmethod and the multi-period excess earnings method.
\nThe fair value of property, plant and equipment acquired
\nin a business combination is based on estimated
\nmarket
values.
\nThe fair value of inventories acquired in a business combi-
\nnation is determined based on estimated selling prices
\nin the ordinary course of business less the estimated
\ncosts of completion and sale and a reasonable profit
\nmargin, based on the effort required to complete and sell
\nthe inventories.
\nSTATEMENT OF CASH FLOWS
\nWe have used the indirect method to prepare the state-
\nment of cash flows. Cash flows in foreign currencies have
\nbeen translated at transaction rates. Acquisitions or
\ndivestments of subsidiaries are presented net of cash and
\ncash equivalents acquired or disposed of, respectively.
\nCash flows from derivatives are recognized in the state-
\nment of cash flows in the same category as those of the
\nhedged items.
\nOPERATING SEGMENTS
\nWe determine and present operating segments based on
\nthe information that is provided to the Executive Commit-
\ntee, our chief operating decision-maker during 2022, to
\nmake decisions about resources to be allocated to the
\nsegments and assess their performance. Segment results
\nreported to the Executive Committee include items directly
\nattributable to a segment as well as those items that can
\nbe allocated on a reasonable basis. Unallocated items
\nmainly comprise of corporate assets and corporate costs
\nand are reported in \u201cCorporate and other\u201d.
\nFOREIGN CURRENCIES
\nTransactions in foreign currencies are translated into the
\nfunctional currency using the foreign exchange rate at
\ntransaction date. Monetary assets and liabilities denomi-
\nnated in foreign currencies are translated into the function-
\nal currency using the exchange rates at the balance sheet
\ndate. Resulting foreign currency differences are included
\nin the statement of income in financing income and
\nexpenses. Non-monetary assets and liabilities denominat-
\n104
AkzoNobel Report 2022
|
Financial statements
ed in foreign currencies are translated into the functional
\ncurrency at the exchange rate at acquisition date.
\nThe assets and liabilities of entities with other func-
\ntional currencies are translated into euros, the functional
\ncurrency of the parent entity, using the exchange rates at
\nthe balance sheet date. The income and expenses of enti-
\nties with other functional currencies are translated into the
\nfunctional currency, using the exchange rates at transac-
\ntion date.
\nWhen a subsidiary is operating in a hyperinflationary
\ncountry, the financial statements of this entity are restated
\ninto the current purchasing power at the end of the report-
\ning period. Hyperinflation accounting is applied for Argen-
\ntina and T\u00fcrkiye based on the historical cost approach and
\nusing the Consumer Price Index (CPI).
\nCPI rate developments for Argentina and T\u00fcrkiye are
\nincluded in the table \u201cCPI rates at December 31\u201d.
\nCPI rates at December 31
\nCountry
2020
2021
2022
\nArgentina
386
582
1,135
\nT\u00fcrkiye
505
687
1,128
\nFor a consolidated overview of financial impacts from
\nhyperinflation accounting, refer to Note 8.
\nForeign exchange rate differences resulting from trans-
\nlation into the functional currency of investments in
\nsubsidiaries and of intercompany loans of a permanent
\nnature with other functional currencies are recorded as a
\nseparate component (cumulative translation reserve) within
\nother comprehensive income. These cumulative translation
\nadjustments are reclassified (either fully or partly) to the
\nstatement of income upon disposal (either fully or partly) or
\nliquidation of the foreign subsidiary to which the invest-
\nment or the intercompany loan with a permanent nature
\nrelates. Foreign currency differences arising on the transla-
\ntion of a financial liability designated as an effective hedge
\nof a net investment in a foreign operation are recognized
\nin the cumulative translation reserve (in other comprehen-
\nsive income).
\nEXCHANGE RATES OF KEY
\nCURRENCIES
\nThe principal exchange rates against the euro used in
\npreparing the balance sheet and the statement of income
\nare (table shows foreign currency equivalents of 1 euro):
\nBalance sheet
Statement of income
\n2021
2022
%
2021
2022
%
\nUS dollar
1.131
1.067
(5.7)
1.182
1.053
(10.9)
\nPound sterling
0.837
0.884
5.6
0.860
0.853
(0.8)
\nChinese yuan
7.197
7.426
3.2
7.626
7.086
(7.1)
\nREVENUE RECOGNITION (NOTE 5)
\nSale of goods
\nAkzoNobel\u2019s main business consists of straightforward
\nselling of goods (paints and coatings) to customers at
\ncontractually determined prices and conditions without
\nany additional services. Although the transfer of risks
\nand rewards is not the only criterion to be considered to
\ndetermine whether control over the goods has transferred,
\nit is in most situations considered to be the main indicator
\nof the customer\u2019s ability to direct the use of and obtain the
\nbenefits from the asset and largely also coincides with the
\nphysical transfer of the goods and the obligation of the
\ncustomer to pay.
\nVariable considerations, including among others rebates,
\nbonuses, discounts and payments to customers, are
\naccrued for as performance obligations are satisfied and
\nrevenue is recognized. Variable considerations are only
\nrecognized when it is highly probable that these are not
\nsubject to significant reversal. In case of expected returns,
\nno revenue is recognized for such products, but a refund
\nliability and an asset for the right to recover the to be
\nreturned products are recorded. A provision for warranties
\nis recognized when the underlying products or services are
\nsold, generally based on historical warranty data. Revenue
\nis recognized net of rebates, discounts and similar allow-
\nances, and net of sales tax.
\nEquipment provided to customers
\nAkzoNobel regularly provides mixing machines, store
\ninterior and other assets to its customers at the start of a
\npaints or coatings delivery contract. The delivery of such
\nassets qualifies as a separate performance obligation.
\nRevenue can only be recognized at the moment of transfer
\nof such assets, when there is an agreed sales price or
\nwhen there is a binding take-or-pay commitment for a
\nminimum quantity of paints or coatings to be acquired by
\nthe customer.
\nServices
\nAkzoNobel provides certain training, technical or support
\nservices to customers as well as shipping and handling
\nactivities for its customers. Service revenue is recognized
\nover time when the related services are being provided.
\nWhen not separately invoiced, part of the sales price of
\npaints or coatings is allocated to such services.
\nPOST-RETIREMENT BENEFITS
\n(NOTE 7, 19)
\nContributions to defined contribution plans are recognized
\nin the statement of income as incurred.
\nMost of our defined benefit pension plans are funded
\nwith plan assets that have been segregated in a trust or
\nfoundation. We also provide post-retirement benefits other
\nthan pensions to certain employees, which are gener-
\nally not funded. Valuations of both funded and unfunded
\nplans are carried out by independent actuaries based on
\nthe projected unit credit method. Post-retirement costs
\nprimarily represent the increase in the actuarial present
\nvalue of the obligation for projected benefits based on
\nemployee service during the year and interest on the net
\ndefined benefit liability/asset. When the calculation results
\nin a benefit to AkzoNobel, the recognized asset is limited
\nto the present value of economic benefits available in
\nthe form of any future refunds from the plan or reductions
\nin future contributions to the plan. An economic benefit
\nis available if it is realizable during the life of the plan,
\nor on the settlement of the plan liabilities. The effect of
\nthese so-called asset ceiling restrictions and any changes
\ntherein are recognized in other comprehensive income.
\nRemeasurement gains and losses, which arise in
\ncalculating our obligations, are recognized in other
\ncomprehensive income. When the benefits of a plan
\nimprove, the portion of the increased benefits related
\nto past service by employees is recognized as an
\nexpense in the statement of income immediately. We
\nrecognize gains and losses on the curtailment or settle-
\n105
AkzoNobel Report 2022
|
Financial statements
ment of a defined benefit plan when the curtailment or
\nsettlement occurs.
\nInterest on the net defined benefit liability/asset is included
\nin financing expenses related to post-retirement benefits.
\nOther charges and benefits recognized are reported
\nin operating income, unless recorded in other comprehen-
\nsive income.
\nOTHER EMPLOYEE BENEFITS
\n(NOTE 7, 20)
\nProvisions for other long-term employee benefits are
\nmeasured at present value, using actuarial assumptions and
\nmethods. Any actuarial gains and losses are recognized in
\nthe statement of income in the period in which they arise.
\nSHARE-BASED COMPENSATION
\n(NOTE 7)
\nAkzoNobel has a performance-related and a restricted
\nshare plan as well as a share-matching plan, under which
\nshares are conditionally granted to certain employees.
\nThe fair value is measured at grant date and amortized
\nover the three-year period during which the employees
\nnormally become unconditionally entitled to the shares
\nwith a corresponding increase in shareholders\u2019 equity.
\nAmortization is accelerated in the event of earlier vesting
\nor settlement.
\nINCOME TAX (NOTE 9)
\nIncome tax expense comprises both current and deferred
\ntax, including effects of changes in tax rates. In determin-
\ning the amount of current and deferred tax we also take
\ninto account the impact of uncertain tax positions and
\nwhether additional taxes may be due. Income tax is recog-
\nnized in the statement of income, unless it relates to items
\nrecognized in other comprehensive income or equity.
\nCurrent tax includes the expected tax payable and receiv-
\nable on the taxable income for the year, using tax rates
\nenacted or substantially enacted at reporting date, as well
\nas (any adjustments to) tax payables and receivables with
\nrespect to previous years.
\nDeferred tax is recognized using the liability method on
\ntemporary differences arising between the tax bases of
\nassets and liabilities and their carrying amounts in the
\nConsolidated financial statements. We do not recognize
\ndeferred tax for the initial recognition of goodwill, the
\ninitial recognition of assets or liabilities that affect neither
\naccounting nor taxable profit, and differences related to
\ninvestments in subsidiaries to the extent that they
\nwill probably not reverse in the foreseeable future and we
\ncan control the timing of the reversal of the temporary
\ndifference. Deferred tax assets are recognized for unused
\ntax losses, tax credits and deductible temporary differ-
\nences, to the extent that it is probable that future
\ntaxable profits will be available against which they can
\nbe utilized.
\nMeasurement of deferred tax assets and liabilities is
\nbased upon the enacted or substantially enacted tax
\nrates expected to apply to taxable income in the years in
\nwhich temporary differences are expected to be reversed.
\nDeferred tax positions are not discounted.
\nEARNINGS PER SHARE
\n(NOTE 10)
\nBasic earnings per share is calculated by dividing the
\nprofit for the period attributable to shareholders of the
\ncompany by the weighted average number of common
\nshares outstanding during the year, adjusted for any repur-
\nchased shares. Diluted earnings per share is calculated
\nby adjusting the weighted average number of common
\nshares outstanding during the year for the diluting effect
\nof the shares of the performance-related share plan, the
\nrestricted share plan and the share-matching plan.
\nAdjusted earnings per share represents the basic earnings
\nper share from continuing operations excluding identified
\nitems, after taxes.
\nGOVERNMENT GRANTS
\nGovernment grants related to costs are deducted from
\nthe relevant costs to be compensated in the same period.
\nGovernment grants to compensate for the cost of an asset
\nare deducted from the cost of the related asset. Emission
\nrights granted by the government are recorded at cost.
\nA provision is recorded if the actual emission is higher than
\nthe emission rights granted.
\nINTANGIBLE ASSETS (NOTE 11)
\nIntangible assets are valued at cost less accumulated
\namortization and impairment charges. Intangible assets
\nwith an indefinite useful life, such as goodwill and certain
\nbrands, are not amortized, but tested for impairment annu-
\nally using the value-in-use method.
\nIntangible assets with a finite useful life, such as licenses,
\nknow-how, certain brands, customer relationships, intellec-
\ntual property rights, emission rights, software expenditures
\n(in as far as AkzoNobel controls the software configured or
\ncustomized) and capitalized development costs, are capital-
\nized at historical cost and amortized on a straight-line basis
\nover the estimated useful life of the assets, which generally
\nranges from 5 to 40 years for brands with finite useful lives,
\n5 to 25 years for customer relationships and 3 to 15 years
\nfor other intangibles. Amortization methods, useful lives and
\nresidual values are reassessed annually. Research expendi-
\ntures are recognized as an expense as incurred.
\nPROPERTY, PLANT AND EQUIPMENT
\n(NOTE 12)
\nProperty, plant and equipment are valued at cost less
\naccumulated depreciation and impairment charges. Costs
\ninclude expenditures that are directly attributable to the
\nacquisition of the asset, including borrowing cost of capital
\ninvestment projects under construction.
\nDepreciation is calculated using the straight-line method,
\nbased on the estimated useful life of the asset compo-
\nnents.The useful life of plant equipment and machinery
\ngenerally ranges from 10 to 25 years, and for buildings
\nranges from 20 to 50 years. Land is not depreciated. In
\nthe majority of cases, residual value is assumed to be not
\nsignificant. Depreciation methods, useful lives and residual
\nvalues are reassessed annually.
\nCosts of major maintenance activities are capitalized and
\ndepreciated over the estimated useful life. Maintenance
\ncosts which cannot be separately defined as a component
\nof property, plant and equipment are expensed in the
\n106
AkzoNobel Report 2022
|
Financial statements
period in which they occur. We recognize conditional asset
\nretirement obligations in the periods in which sufficient
\ninformation becomes available to reasonably estimate the
\ncash outflow.
\nLEASES (NOTE 13, 21)
\nAs a lessee, we assess whether a contract is, or contains,
\na lease at inception. A contract is, or contains, a lease
\nif the contract conveys the right to control the use of an
\nidentified asset for a period of time in exchange for a
\nconsideration.
\nAt commencement or on modification of a contract that
\ncontains a lease component, we allocate the consideration
\nin the contract to each lease component on the basis of its
\nrelative stand-alone price. However, for the leases of cars
\nwe have elected not to separate non-lease components
\nand account for the lease and non-lease components as a
\nsingle lease component.
\nWe recognize a right-of-use asset and a lease liability at
\nthe lease commencement date. The right-of-use asset is
\ninitially measured at the present value of the lease liability.
\nThe right-of-use asset value contains lease prepayments,
\nlease incentives received, the initial direct costs and an
\nestimate of restoration, removal and dismantling costs.
\nFor deferred taxes associated with lease accounting under
\nIFRS 16, AkzoNobel determines the temporary differences
\nbetween the book basis and tax basis of the right-of-
\nuse asset and the lease liability on a net basis. It is the
\ncompany\u2019s view that these are integrally linked. As a result,
\na deferred tax position is reported on the net temporary
\ndifferences of the right-of-use assets and lease liabilities.
\nThe right-of-use assets are depreciated using the straight-
\nline method from the commencement date to the end of
\nthe lease term or shorter economic life. In addition, the
\nvalue of right-of-use assets is reduced by impairment
\nlosses, if any, and adjusted for certain remeasurements of
\nthe lease liability.
\nThe net present value of the lease liability is measured at
\nthe discounted value of the lease payments. The liability
\nincludes payments to be made in optional periods if it
\nis reasonably certain that we will exercise an option to
\nextend the lease, or that we will not exercise an option
\nto terminate the lease. The lease payments comprise the
\nfollowing:
\n\u2022
Fixed payments (including in substance fixed payments),
\nless any lease incentives
\n\u2022
Variable lease payments that depend on an index or a
\nrate
\n\u2022
The exercise price of a purchase option if it is
\nreasonably certain that the option will be exercised
\n\u2022
Payments of penalties for terminating the lease, if the
\nlease term reflects the lessee exercising an option to
\nterminate the lease; and
\n\u2022
Amounts expected to be payable under residual value
\nguarantees
\nThese lease payments are discounted using the interest
\nrate implicit in the lease contract, if that rate can be readily
\ndetermined. If that rate cannot be readily determined, the
\nincremental borrowing rate is used. We determine our
\nincremental borrowing rates by obtaining interest rates
\nfrom various external financing sources and make certain
\nadjustments to reflect the term of the lease and type of
\nthe asset leased. At the lease commencement dates,
\nwe assess whether it is reasonably certain that we will
\nexercise the extension options. We reassess whether it is
\nreasonably certain that we will exercise the options, if there
\nis a significant event or significant change in circumstances
\nwithin our control.
\nAt the commencement date, we assess whether it is
\nreasonably certain that:
\n\u2022
An option to extend is exercised; or
\n\u2022
An option to purchase is exercised; or
\n\u2022
An option to terminate the lease is not exercised
\nIn making these assessments, all relevant facts and
\ncircumstances that create an economic incentive for us
\nto exercise, or not to exercise, the option, including any
\nexpected changes in facts and circumstances from the
\ncommencement date until the exercise date of the option
\nare considered.
\nShort-term leases and leases of low-value assets
\nWe do not record right-of-use assets and lease liabilities
\non the balance sheet for leases of low-value assets and
\nshort-term leases. We recognize the lease payments asso-
\nciated with these leases as an expense on a straight-line
\nbasis over the lease term.
\nIMPAIRMENTS (NOTE 11, 12, 13)
\nWe assess the carrying value of intangible assets, property,
\nplant and equipment and right-of-use assets whenever
\nevents or changes in circumstances indicate that the carry-
\ning value of an asset may not be recoverable as a result
\nof e.g. changes in cash flow forecasts, damages, market
\ndevelopments or environmental and climate change risks.
\nIn addition, for goodwill and other intangible assets with
\nan indefinite useful life, the carrying value is reviewed at
\nleast annually or when circumstances indicate the carrying
\namount may be impaired. If the carrying value of an asset
\nor its cash-generating unit exceeds its estimated recov-
\nerable amount, an impairment loss is recognized in the
\nstatement of income on the functional level of the asset
\nimpaired. The assessment for impairment is performed at
\nthe lowest level of assets generating largely independent
\ncash inflows. For goodwill and other intangible assets with
\nan indefinite life, we have determined this to be at business
\nunit level (one level below operating segment).
\nExcept for goodwill, we reverse impairment losses in
\nthe statement of income if and to the extent we have
\nidentified a change in estimates used to determine the
\nrecoverable amount.
\nASSOCIATES AND JOINT VENTURES
\n(NOTE 14)
\nAssociates and joint ventures are accounted for using the
\nequity method and are initially recognized at cost. The
\nConsolidated financial statements include our share of the
\nincome and expenses of the associates and joint ventures,
\nwhereby the result is determined using our accounting
\nprinciples. When the share of losses exceeds the interest
\nin the investee, the carrying amount is reduced to nil and
\nrecognition of further losses is discontinued, unless we
\nhave further legal or constructive obligations.
\nINVENTORIES (NOTE 16)
\nInventories are measured at the lower of cost and net
\nrealizable value. Costs of inventories comprise all costs of
\npurchase, costs of conversion and other costs incurred
\nin bringing the inventories to the present location and
\n107
AkzoNobel Report 2022
|
Financial statements
condition. The costs of inventories are determined using
\nweighted average cost.
\nPROVISIONS (NOTE 20)
\nWe recognize provisions when a present legal or construc-
\ntive obligation as a result of a past event exists, it is
\nprobable that an outflow of economic benefits is required
\nto settle the obligation and the amount can be reliably esti-
\nmated. Provisions are measured at net present value. The
\nincrease of provisions as a result of the passage of time
\nis recognized in the statement of income under financing
\nincome and expenses.
\nProvisions for restructuring of activities are recognized
\nwhen a detailed and formal restructuring plan has been
\napproved, and the restructuring has either commenced or
\nhas been announced publicly. We do not provide for future
\noperating costs.
\nFINANCIAL INSTRUMENTS
\nClassi\ufb01cation
\nAll assets are measured at amortized cost, fair value
\nthrough profit or loss or fair value through other compre-
\nhensive income. Financial assets are classified according
\nto a model based on:
\n\u2022
A contractual cash flow characteristics test
\n\u2022
A business model dictating how the reporting entity
\nmanages its financial assets in order to generate cash
\nflows as either:
\n1. Hold to collect contractual cash flows
\n2. Collect contractual cash flows and sell
\n3. Neither 1 or 2
\n\u2022
Election of the fair value option in some specific cases in
\norder to eliminate an accounting mismatch
\nThe classification of a financial asset is determined at initial
\nrecognition, but if certain conditions are met, an asset
\nmight be subject to reclassification.
\nValuation and impairment
\nFinancial assets are assessed for impairment either accord-
\ning to the general approach or a simplified approach.
\nThe calculation of impairment under the general approach
\nuses the following stages:
\n\u2022
12-month expected credit losses; taking into account
\npossible default events within one year
\n\u2022
Lifetime expected credit losses in case of an increase in
\ncredit risk; through recognition of expected credit losses
\nover the remaining life of the exposure
\n\u2022
Lifetime expected credit losses, where interest is
\ncalculated on the net amount of the receivables less
\nimpairment loss
\nIn all above stages, the impairment calculation used is
\nbased on external credit ratings of involved parties or
\ndefault rates published by well-known credit risk agencies.
\nThe financial assets included in the general impairment
\napproach are long-term loans and other long-term receiv-
\nables.
\nThe calculation of impairment under the simplified
\napproach requires recognition of lifetime expected credit
\nloss (no tracking of changes in credit risk). The financial
\nassets included in the simplified impairment approach are
\ntrade receivables and the remaining financial assets.
\nMeasurement
\nRegular purchases and sales of financial assets and
\nliabilities are recognized on trade date. The initial measure-
\nment of all financial instruments is at fair value. Except
\nfor derivatives and cash and cash equivalents, the initial
\nmeasurement of financial instruments is adjusted for
\ndirectly attributable transaction costs.
\nDerivative \ufb01nancial instruments (Note 27)
\nDerivative financial instruments are recognized at fair value
\non the balance sheet. Fair values are derived from market
\nprices and quotes from dealers and brokers or are esti-
\nmated using observable market inputs. When determining
\nfair values, credit risk for our contract party, as well as for
\nAkzoNobel, is taken into account.
\nChanges in fair value are recognized in the statement of
\nincome, unless cash flow hedge accounting or net invest-
\nment hedge accounting is applied. In those cases, the
\neffective part of the fair value changes is deferred in other
\ncomprehensive income and released to the related specific
\nlines in the statement of income or balance sheet at the
\nsame time as the hedged item.
\nFinancial non-current assets (Note 15) and Trade
\nand other receivables (Note 17)
\nLoans and receivables are measured at amortized cost, using
\nthe effective interest method, less any impairment losses.
\nCash and cash equivalents and Short-term
\ninvestments (Note 21)
\nCash and cash equivalents and short-term investments are
\nmeasured at fair value. Cash and cash equivalents include
\nall cash balances and other investments that are directly
\nconvertible into known amounts of cash. Changes in fair
\nvalues are included in financing income and expenses.
\nLong-term and Short-term borrowings (Note 21,
\n27) and Trade and other payables (Note 22)
\nLong-term and short-term borrowings, as well as trade
\nand other payables, are measured at amortized cost, using
\nthe effective interest rate method. The interest expense on
\nborrowings is included in financing income and expenses.
\nThe fair value of borrowings, used for disclosure purposes,
\nis determined based on listed market price, if available. If a
\nlisted market price is not available, the fair value is calcu-
\nlated based on the present value of principal and interest
\ncash flows, discounted at the interest rate at the reporting
\ndate, considering AkzoNobel\u2019s credit risk.
\nNEW IFRS ACCOUNTING
\nSTANDARDS
\nIFRS standards and interpretations thereof not yet in force,
\nwhich may apply to our Consolidated financial state-
\nments for 2023 and beyond, have been assessed for their
\npotential impact.
\nThese include among others IFRS 17\u00a0\u201cInsurance
\nContracts\u201d, amendments to IAS 1 \u201cClassification of Liabili-
\nties as Current or Non-current\u201d, amendments to IAS 8
\n\u201cDefinition of Accounting Estimates\u201d, amendments to IAS
\n12 \u201cDeferred Tax related to Assets and Liabilities arising
\nfrom a Single Transaction\u201d, amendments to IAS 1 and
\nIFRS Practice Statement 2 \u201cDisclosure of Accounting Poli-
\ncies\u201d, amendments to IFRS 16 \u201cLease Liability in a
\nSale and Leaseback\u201d and amendments to IFRS 10 and
\nIAS 28 \u201cSale or Contribution of Assets between an Inves-
\ntor and its Associate or Joint Venture\u201d. These changes
\nare not expected to have a material effect on AkzoNobel\u2019s
\nConsolidated financial statements.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSummaryOfSignificantAccountingPoliciesExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14208": {
"value": "GENERAL INFORMATION Akzo Nobel N.V. is a public limited liability company
\nheadquartered in the Netherlands. The address of our
\nregistered office is Christian Neefestraat 2, Amsterdam;
\nthe Chamber of Commerce number is 09007809. We
\nhave attached a list of subsidiaries, associated companies
\nand joint ventures, drawn up in conformity with Articles
\n379 and 414 of Book 2 of the Dutch Civil Code, as
\nan appendix to our annual report. The principal activity of
\nAkzoNobel is the production and selling of paints
\nand coatings.
\nWe have prepared the Consolidated financial statements
\nof Akzo Nobel N.V. in accordance with International Finan-
\ncial Reporting Standards (IFRS) as adopted by the Euro-
\npean Union. The Consolidated financial statements also
\ncomply with the financial reporting requirements included
\nin Title 9 of Book 2 of the Dutch Civil Code.
\nThe Management report within the meaning of Article 391
\nof Book 2 of the Dutch Civil Code consists of the following
\nparts of the annual report:
\n\u2022
2022 results at a glance
\n\u2022
CEO statement
\n\u2022
How we created value
\n\u2022
Strategy and operations
\n\u2022
Sustainability statements
\n\u2022
Leadership and governance: Our Board of Management
\nand Executive Committee
\n\u2022
Leadership and governance: Statement of the Board of
\nManagement
\n\u2022
Leadership and governance: Corporate governance
\nstatement
\n\u2022
Leadership and governance: Risk management
\n\u2022
Leadership and governance: Integrity and compliance
\nmanagement
\n\u2022
Leadership and governance: Remuneration report
\n\u2022
Financial information: Note 6 Operating income
\n\u2022
Financial information: Note 27 Financial risk management
\nOn February 27, 2023, the Board of Management
\nauthorized the financial statements for issue. The financial
\nstatements as presented in this report are subject to adop-
\ntion by the Annual General Meeting of shareholders on
\nApril 21, 2023.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14211": {
"value": "Akzo Nobel N.V.",
"dimensions": {
"concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14212": {
"value": "public limited liability",
"dimensions": {
"concept": "ifrs-full:LegalFormOfEntity",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14214": {
"value": "Netherlands",
"dimensions": {
"concept": "ifrs-full:CountryOfIncorporation",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14215": {
"value": "Netherlands",
"dimensions": {
"concept": "ifrs-full:DomicileOfEntity",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14216": {
"value": "Netherlands",
"dimensions": {
"concept": "ifrs-full:PrincipalPlaceOfBusiness",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14218": {
"value": "Christian Neefestraat 2, Amsterdam",
"dimensions": {
"concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14224": {
"value": "The principal activity of AkzoNobel is the production and selling of paints \nand coatings.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14229": {
"value": "We have prepared the Consolidated financial statements
\nof Akzo Nobel N.V. in accordance with International Finan-
\ncial Reporting Standards (IFRS) as adopted by the Euro-
\npean Union. The Consolidated financial statements also
\ncomply with the financial reporting requirements included
\nin Title 9 of Book 2 of the Dutch Civil Code.
The Consolidated financial statements have been prepared
\non a going concern basis, resulting from management\u2019s
\nassessment of the ability of AkzoNobel to continue its
\noperations for the foreseeable future.
\nManagement has assessed the ability of AkzoNobel to
\ncontinue as a going concern based on an evaluation of,
\namongst others, the financial position, expected future
\ncash flows and market developments.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14231": {
"value": "We have prepared the Consolidated financial statements of Akzo Nobel N.V. in accordance with International Finan-
\ncial Reporting Standards (IFRS) as adopted by the Euro-
\npean Union.",
"dimensions": {
"concept": "ifrs-full:StatementOfIFRSCompliance",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14234": {
"value": "Akzo Nobel N.V.",
"dimensions": {
"concept": "ifrs-full:NameOfParentEntity",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14274": {
"value": "On February 27, 2023, the Board of Management authorized the financial statements for issue. The financial
\nstatements as presented in this report are subject to adop-
\ntion by the Annual General Meeting of shareholders on
April 21, 2023.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14283": {
"value": "GOING CONCERN The Consolidated financial statements have been prepared
\non a going concern basis, resulting from management\u2019s
\nassessment of the ability of AkzoNobel to continue its
\noperations for the foreseeable future.
\nManagement has assessed the ability of AkzoNobel to
\ncontinue as a going concern based on an evaluation of,
\namongst others, the financial position, expected future
\ncash flows and market developments.
\nAt December 31, 2022, cash and cash equivalents were
\n\u20ac1.5 billion. We also assessed the ability of the company
\nto obtain financing, taking into account the company\u2019s
\nexternal credit rating which we are committed to retain at
\nstrong investment grade.
\nExpected future cash flows are based on the latest
\nforecasts. These forecasts take into account internal and
\nexternal developments relevant in the assessment of
\nthe ability of AkzoNobel to continue as a going concern,
\nincluding but not limited to market developments (see
\ndisclosure on e.g. impact from the war in Ukraine and the
\nsanctions on Russia in this Note), developments in the
\nmacro-economic environment (e.g. inflation, see disclosure
\non inflation in this Note) and climate-related developments
\n(see disclosure on climate change in this Note).
\nManagement\u2019s assessment did not lead to uncertainties
\nin relation to AkzoNobel\u2019s ability to continue as a
\ngoing concern.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGoingConcernExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14371": {
"value": "CONSOLIDATION The Consolidated financial statements include the accounts
\nof Akzo Nobel N.V. and its subsidiaries. Subsidiaries are com-
\npanies over which Akzo Nobel N.V. has control, because it
\nis exposed, or has rights, to variable returns from its involve-
\nment with the subsidiary and has the ability to affect returns
\nthrough its power over the subsidiary. Non-controlling inter-
\nests in equity and in results are presented separately.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14382": {
"value": "CHANGES IN ACCOUNTING POLICIES AND FIRST TIME APPLICATION
\nAccounting pronouncements with potential relevance for
\nAkzoNobel, which became effective for 2022 (amend-
\nments to IFRS 3 \u201cReference to the Conceptual Frame-
\nwork\u201d, amendments to IAS 16 \u201cProperty, Plant and
\nEquipment: Proceeds before Intended Use\u201d, amendments
\nto IAS 37 \u201dOnerous Contracts \u2013 Costs of Fulfilling a
\nContract\u201d and \u201cAnnual Improvements to IFRS Standards
\n2018-2020\u201d) had no material impact on our Consolidated
\nfinancial statements.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14396": {
"value": "DISCONTINUED OPERATIONS A discontinued operation is a component of our busi-
\nness that represents a separate major line of business or
\ngeographical area of operations that has been disposed
\nof or is held for sale, or is a subsidiary acquired exclusively
\nwith a view to resale. Assets and liabilities are classified as
\nheld for sale if it is highly probable that the carrying value
\nwill be recovered through a sale transaction within one
\nyear rather than through continuing use. When reclassify-
\ning assets and liabilities as held for sale, we recognize the
\nassets and liabilities at the lower of their carrying value or
\nfair value less costs to sell. Assets held for sale are not
\ndepreciated and amortized but tested for impairment. In
\ncase of discontinued operations, the comparative figures
\nin the Consolidated statement of income and Consolidated
\nstatement of cash flows are represented. The balance
\nsheet comparative figures are not represented.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14415": {
"value": "USE OF ESTIMATES \nThe preparation of the financial statements in compliance \nwith IFRS requires management to make judgments, esti- \nmates and assumptions that affect amounts reported in \nthe financial statements. The estimates and assumptions \nare based on experience and various other factors that \nare believed to be reasonable under the circumstances \nand are used to judge the carrying values of assets and \nliabilities that are not readily apparent from other sources. \nThe estimates and underlying assumptions are reviewed \non an ongoing basis. The most critical accounting policies \ninvolving a higher degree of judgment and complexity in \napplying principles of valuation and for which changes in \nthe assumptions and estimates could result in significantly \ndifferent results than those recorded in the financial state- \nments are the following: \n\u2022 Scope of consolidation, including purchase price \nallocations for business combinations (Note 2) \n\u2022 Income tax and deferred tax assets, including uncertain \ntax positions (Note 9) \n\u2022 Impairment of intangible assets, property, plant and \nequipment and right-of-use assets (Note 11, 12, 13) \n\u2022 Post-retirement benefit provisions (Note 19) \n\u2022 Provisions and contingent liabilities (Note 20) Deferred tax assets recoverability assessment \nIn assessing the recognition of deferred tax assets, \nmanagement considers whether it is probable that some \nportion or all of the deferred tax assets will be realized. The \nultimate realization of the deferred tax assets is dependent \nupon the generation of future taxable income against \nwhich the deductible temporary differences, unused tax \nlosses and unused tax credits can be utilized. Manage- \nment considers the scheduled reversal of deferred tax \nliabilities, projected future taxable income, and tax planning \nstrategies in making this assessment. The amount of \ndeferred tax assets considered realizable could change \nif future estimates of projected taxable income during \nthe carryforward period are revised. The majority of the \namount of the non-current portion of deferred and \ncurrent taxes will be recovered or settled after more than \n12 months. \nIn 2022 and 2021, deferred tax asset recoverability has \nbeen assessed using taxable profit forecasts. In 2022, \nthese assessments did not result in a significant net \nderecognition or re-recognition of deferred tax assets \n(2021: net re-recognition of \u20ac18 million). \nBoth in 2022 and 2021, deferred tax assets not recog- \nnized relate to tax loss carryforwards. The losses in the \ntables on tax losses carried forward are gross amounts, \nwith the tax impact included in the last column of the table. \nFrom the total amount of recognized net deferred tax \nassets, \u20ac206 million (2021: \u20ac151 million) is related to \nentities that have suffered a loss in either the current or \nthe previous year and where utilization is dependent on \nfuture taxable profit in excess of the profit arising from the \nreversal of existing taxable temporary differences. This \nassessment is based on management\u2019s long-term projec- \ntions and tax planning strategies. \nA deferred tax liability is recognized for taxable temporary \ndifferences related to investments in subsidiaries, branches and associates and interests in joint arrangements, to \nthe extent that it is probable that these will reverse in the \nforeseeable future. The expected net tax impact of the \nremaining differences for which no deferred tax liabilities \nhave been recognized is \u20ac55 million (2021: \u20ac31 million). Annual impairment testing \nGoodwill and other intangibles with indefinite useful lives \nare tested for impairment per business unit (one level \nbelow segment level) annually or whenever an impairment \ntrigger exists, applying the value-in-use method. \nThe paints business of recently acquired Grupo Orbis has \nbeen allocated to business unit Decorative Paints Latin \nAmerica. The Grupo Orbis coatings businesses ultimately \nwill be incorporated into the respective Performance \nCoatings business units in 2023. For the interim period, \nin 2022, these businesses are reported in business unit \nPerformance Coatings Other. \nThe impairment test is in principle based on cash flow \nprojections of the five-year plan. Elements considered to \ndetermine if a different approach would be more appropri- \nate are mainly related to high growth/emerging economies, \ngeo expansion opportunities, introduction of new product \nranges and opportunities from market consolidation. \nIn 2022, the above exception was applied for Decora- \ntive Paints Asia, Decorative Paints Latin America and \nPerformance Coatings Other (Grupo Orbis), for which the \nrevenue growth and margin development projections were Goodwill and other intangibles per business unit \nBrands with inde\ufb01nite Other intangibles \nGoodwill useful lives with \ufb01nite useful lives Total intangibles \nIn \u20ac millions, at December 31 2021 2022 2021 2022 2021 2022 2021 2022 \nDecorative Paints Europe, Middle East 114 107 837 837 146 136 1,097 1,080 \nand Africa \nDecorative Paints Latin America \u2014 138 87 102 \u2014 142 87 382 \nDecorative Paints Asia 9 8 928 901 31 21 968 930 \nPowder Coatings 155 152 \u2014 \u2014 32 19 187 171 \nMarine and Protective Coatings 174 197 \u2014 \u2014 80 94 254 291 \nAutomotive and Specialty Coatings 288 290 \u2014 \u2014 175 156 463 446 \nIndustrial Coatings 415 413 \u2014 \u2014 120 110 535 523 \nPerformance Coatings Other \u2014 72 \u2014 \u2014 \u2014 59 \u2014 131 \nCorporate and other \u2014 \u2013 \u2014 \u2014 99 118 99 118 \nTotal 1,155 1,377 1,852 1,840 683 855 3,690 4,072 \nextrapolated beyond the five-year explicit forecast \nperiod for another five years, applying reduced average \ngrowth rates. \nMacro economic developments and other relevant vari- \nables (e.g. inflation, the situation with respect to COVID- \n19, geopolitical uncertainties, climate risks \u2013 refer to \nNote 1 for a description of the impact from climate change \non the financial statements) are closely monitored to \nensure that the impact on the estimated future cash flows \nis reflected in the models which are used to assess the \nvalue of AkzoNobel\u2019s asset base. \nKey assumptions 2022 \nPre-tax weighted \nAverage revenue average cost of \nIn\u00a0% per year growth 2023-2027 capital 2023-2027 \nDecorative Paints 1.8-6.7% 11.1-15.9% \nPerformance Coatings 1.3-4.0% 10.8-12.4% \nKey assumptions 2021 \nPre-tax weighted \nAverage revenue average cost of \nIn\u00a0% per year growth 2022-2026 capital 2022-2026 \nDecorative Paints 1.1-5.9% 8.4-12.5% \nPerformance Coatings 2.6-4.7% 7.8-8.1% \nThe key assumptions used in the projections for annual \nimpairment testing are: \n\u2022 Revenue growth per year: based on actual experience, \nanalysis of markets and GDP growth, and expected \nmarket share developments \n\u2022 Margin development per year: based on actual \nexperience and management\u2019s long-term projections \n\u2022 Weighted average cost of capital per year: the pre-tax \ndiscount rate determined per business unit, reflecting \ncurrent market assessments of the time value of \nmoney and the risks specifically associated with the \nbusiness units \nFor all business units, a terminal value was calculated based \non long-term inflation expectations of 2% (2021: 1%). The \nestimated pre-tax cash flows are discounted to their present \nvalue using a pre-tax weighted average cost of capital. The \ndiscount rates are determined for each business unit and \nrange from 10.8% to 15.9% (2021: 7.8% to 12.5%), with a \nweighted average of 11.7% (2021: 8.4%). \nSensitivity tests were performed to assess the impact of \nchanges in the key assumptions revenue growth (50% \nlower), margin development (1 percentage point lower) and \nthe weighted average cost of capital (1 percentage point \nhigher). These assessments show that these changes in \nkey assumptions would not cause carrying amounts to \nexceed recoverable amounts for any of the business units, \nexcept for the Latin America businesses where the recently \nacquired Grupo Orbis business is included. \nGiven the current uncertainties in the macro-economic \nenvironment and high cost inflation, additional sensitivity \ntests have been performed in order to assess the impact \nof more severe adverse changes in the key assumptions. \nThe conclusions from these tests are the same as above. \nIn 2022 and 2021, no impairment charges were recog- \nnized in relation to the annual impairment test. \nSpeci\ufb01c asset impairments \nPeriodical evaluations are performed in order to ensure \ntimely detection of triggers that might indicate impairment \nof assets. Whenever such triggers are noted, the related \nassets are assessed for impairment as appropriate. \nIn 2022 and 2021, no significant impairment charges were \nrecorded in relation to specific assets. Impairments \nPeriodical evaluations are performed in order to ensure \ntimely detection of triggers that might indicate impairment \nof assets. Whenever such triggers are noted, the related \nassets are assessed for impairment as appropriate. \nIn 2022 and 2021, no significant impairments were recognized. Impairments \nPeriodical evaluations are performed in order to ensure \ntimely detection of triggers that might indicate impairment \nof assets. Whenever such triggers are noted, the related \nassets are assessed for impairment as appropriate. \nIn 2022 and 2021, no significant impairments were \nrecognized. Sensitivity of DBO \nThe actuarially calculated sensitivity effects on DBO shown \nallow for an alternative value for each assumption while \nthe other actuarial assumptions remain unchanged. This \ntable illustrates the overall impact on DBO for the changes \nshown, which management assessed could be reasonably \npossible over a longer term from a sensitivity test perspec- \ntive. It should be noted, however, that this analysis does \nnot indicate and probability of such changes occurring, \nnot does it preclude larger changes in any given period or \nlonger term. In addition, the significance of the impact and \nthe range of reasonably possible alternative assumptions \nmay differ between the different plans that comprise the \ntotal DBO. In particular, the plans differ in benefit design, \ncurrency and average term, meaning that different assump- \ntions have different levels of significance for each plan. \nThe sensitivity analysis is intended to illustrate the inher- \nent uncertainty in the valuation of the DBO under market \nconditions at the measurement date. Its results, in \nprinciple, cannot be extrapolated due to increasing non- linear effects that changes in the key actuarial assump- \ntions, when deviating further from the assumptions \npresented, may have on the total DBO. Any management \nactions that may be taken to mitigate the inherent risks in \nthe post-retirement defined benefit plans are not reflected \nin this analysis, as they would normally be reflected in plan \nasset changes rather than DBO changes. \nThe sensitivities in the table only apply to the DBO and \nnot to the net amounts recognized in the balance sheet. \nMovements in the fair value of plan assets (which include \nthe de-risking instruments) would, to a significant extent, \nbe expected to offset movements in the DBO resulting \nfrom changes in the given assumptions. \nAt ICIPF, the annuity buy-in contracts cover 99% of \npensioner liabilities (2021: 99%) and 88% of total liabilities \n(2021: 84%). \nAt CPS, the annuity buy-in contract covers 42% of \npensioner liabilities (2021: 0%) and 28% of total liabilities \n(2021: 0%). Also at CPS, the longevity hedge contract \ncovers 48% of pensioner liabilities (2021: 48%) and 30% \nof total liabilities (2021: 30%) ",
"dimensions": {
"concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14417": {
"value": "USE OF ESTIMATES The preparation of the financial statements in compliance
\nwith IFRS requires management to make judgments, esti-
\nmates and assumptions that affect amounts reported in
\nthe financial statements. The estimates and assumptions
\nare based on experience and various other factors that
\nare believed to be reasonable under the circumstances
\nand are used to judge the carrying values of assets and
\nliabilities that are not readily apparent from other sources.
\nThe estimates and underlying assumptions are reviewed
\non an ongoing basis. The most critical accounting policies
\ninvolving a higher degree of judgment and complexity in
\napplying principles of valuation and for which changes in
\nthe assumptions and estimates could result in significantly
\ndifferent results than those recorded in the financial state-
\nments are the following:
\n\u2022
Scope of consolidation, including purchase price
\nallocations for business combinations (Note 2)
\n\u2022
Income tax and deferred tax assets, including uncertain
\ntax positions (Note 9)
\n\u2022
Impairment of intangible assets, property, plant and
\nequipment and right-of-use assets (Note 11, 12, 13)
\n\u2022
Post-retirement benefit provisions (Note 19)
\n\u2022
Provisions and contingent liabilities (Note 20)",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14449": {
"value": "BUSINESS COMBINATIONS (NOTE 2) In business combinations, identifiable assets and liabilities,
\nand contingent liabilities are recognized at their fair values
\nat the acquisition date. Determining the fair value requires
\nsignificant judgments on future cash flows to be generated.
\nGoodwill in a business combination represents the excess
\nof the consideration paid over the net fair value of the
\nacquired identifiable assets, liabilities and contingent liabili-
\nties. If the cost of an acquisition is less than the fair value of
\nthe net assets of the subsidiary acquired, the difference is
\nrecognized directly in the statement of income.
\nThe fair value of brands, customer relationships and
\nknow-how acquired in a business combination is estimated
\nusing generally accepted valuation methods. These include
\nthe relief-from-royalty method, the incremental cash flow
\nmethod and the multi-period excess earnings method.
\nThe fair value of property, plant and equipment acquired
\nin a business combination is based on estimated
\nmarket
values.
\nThe fair value of inventories acquired in a business combi-
\nnation is determined based on estimated selling prices
\nin the ordinary course of business less the estimated
\ncosts of completion and sale and a reasonable profit
\nmargin, based on the effort required to complete and sell
\nthe inventories.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14478": {
"value": "STATEMENT OF CASH FLOWS We have used the indirect method to prepare the state-
\nment of cash flows. Cash flows in foreign currencies have
\nbeen translated at transaction rates. Acquisitions or
\ndivestments of subsidiaries are presented net of cash and
\ncash equivalents acquired or disposed of, respectively.
\nCash flows from derivatives are recognized in the state-
\nment of cash flows in the same category as those of the
\nhedged items.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForCashFlowsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14490": {
"value": "OPERATING SEGMENTS We determine and present operating segments based on
\nthe information that is provided to the Executive Commit-
\ntee, our chief operating decision-maker during 2022, to
\nmake decisions about resources to be allocated to the
\nsegments and assess their performance. Segment results
\nreported to the Executive Committee include items directly
\nattributable to a segment as well as those items that can
\nbe allocated on a reasonable basis. Unallocated items
\nmainly comprise of corporate assets and corporate costs
\nand are reported in \u201cCorporate and other\u201d.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14504": {
"value": "FOREIGN CURRENCIES Transactions in foreign currencies are translated into the
\nfunctional currency using the foreign exchange rate at
\ntransaction date. Monetary assets and liabilities denomi-
\nnated in foreign currencies are translated into the function-
\nal currency using the exchange rates at the balance sheet
\ndate. Resulting foreign currency differences are included
\nin the statement of income in financing income and
\nexpenses. Non-monetary assets and liabilities denominat-
\n104
AkzoNobel Report 2022
|
Financial statements
ed in foreign currencies are translated into the functional
\ncurrency at the exchange rate at acquisition date.
\nThe assets and liabilities of entities with other func-
\ntional currencies are translated into euros, the functional
\ncurrency of the parent entity, using the exchange rates at
\nthe balance sheet date. The income and expenses of enti-
\nties with other functional currencies are translated into the
\nfunctional currency, using the exchange rates at transac-
\ntion date.
\nWhen a subsidiary is operating in a hyperinflationary
\ncountry, the financial statements of this entity are restated
\ninto the current purchasing power at the end of the report-
\ning period. Hyperinflation accounting is applied for Argen-
\ntina and T\u00fcrkiye based on the historical cost approach and
\nusing the Consumer Price Index (CPI).
\nCPI rate developments for Argentina and T\u00fcrkiye are
\nincluded in the table \u201cCPI rates at December 31\u201d.
\nCPI rates at December 31
\nCountry
2020
2021
2022
\nArgentina
386
582
1,135
\nT\u00fcrkiye
505
687
1,128
\nFor a consolidated overview of financial impacts from
\nhyperinflation accounting, refer to Note 8.
\nForeign exchange rate differences resulting from trans-
\nlation into the functional currency of investments in
\nsubsidiaries and of intercompany loans of a permanent
\nnature with other functional currencies are recorded as a
\nseparate component (cumulative translation reserve) within
\nother comprehensive income. These cumulative translation
\nadjustments are reclassified (either fully or partly) to the
\nstatement of income upon disposal (either fully or partly) or
\nliquidation of the foreign subsidiary to which the invest-
\nment or the intercompany loan with a permanent nature
\nrelates. Foreign currency differences arising on the transla-
\ntion of a financial liability designated as an effective hedge
\nof a net investment in a foreign operation are recognized
\nin the cumulative translation reserve (in other comprehen-
\nsive income).
\nEXCHANGE RATES OF KEY
\nCURRENCIES
\nThe principal exchange rates against the euro used in
\npreparing the balance sheet and the statement of income
\nare (table shows foreign currency equivalents of 1 euro):
\nBalance sheet
Statement of income
\n2021
2022
%
2021
2022
%
\nUS dollar
1.131
1.067
(5.7)
1.182
1.053
(10.9)
\nPound sterling
0.837
0.884
5.6
0.860
0.853
(0.8)
\nChinese yuan
7.197
7.426
3.2
7.626
7.086
(7.1)",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14505": {
"value": "FOREIGN CURRENCIES Transactions in foreign currencies are translated into the
\nfunctional currency using the foreign exchange rate at
\ntransaction date. Monetary assets and liabilities denomi-
\nnated in foreign currencies are translated into the function-
\nal currency using the exchange rates at the balance sheet
\ndate. Resulting foreign currency differences are included
\nin the statement of income in financing income and
\nexpenses. Non-monetary assets and liabilities denominat-
\n104
AkzoNobel Report 2022
|
Financial statements
ed in foreign currencies are translated into the functional
\ncurrency at the exchange rate at acquisition date.
\nThe assets and liabilities of entities with other func-
\ntional currencies are translated into euros, the functional
\ncurrency of the parent entity, using the exchange rates at
\nthe balance sheet date. The income and expenses of enti-
\nties with other functional currencies are translated into the
\nfunctional currency, using the exchange rates at transac-
\ntion date.
\nWhen a subsidiary is operating in a hyperinflationary
\ncountry, the financial statements of this entity are restated
\ninto the current purchasing power at the end of the report-
\ning period. Hyperinflation accounting is applied for Argen-
\ntina and T\u00fcrkiye based on the historical cost approach and
\nusing the Consumer Price Index (CPI).
\nCPI rate developments for Argentina and T\u00fcrkiye are
\nincluded in the table \u201cCPI rates at December 31\u201d.
\nCPI rates at December 31
\nCountry
2020
2021
2022
\nArgentina
386
582
1,135
\nT\u00fcrkiye
505
687
1,128
\nFor a consolidated overview of financial impacts from
\nhyperinflation accounting, refer to Note 8.
\nForeign exchange rate differences resulting from trans-
\nlation into the functional currency of investments in
\nsubsidiaries and of intercompany loans of a permanent
\nnature with other functional currencies are recorded as a
\nseparate component (cumulative translation reserve) within
\nother comprehensive income. These cumulative translation
\nadjustments are reclassified (either fully or partly) to the
\nstatement of income upon disposal (either fully or partly) or
\nliquidation of the foreign subsidiary to which the invest-
\nment or the intercompany loan with a permanent nature
\nrelates. Foreign currency differences arising on the transla-
\ntion of a financial liability designated as an effective hedge
\nof a net investment in a foreign operation are recognized
\nin the cumulative translation reserve (in other comprehen-
\nsive income).",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14544": {
"value": "When a subsidiary is operating in a hyperinflationary
\ncountry, the financial statements of this entity are restated
\ninto the current purchasing power at the end of the report-
\ning period. Hyperinflation accounting is applied for Argen-
\ntina and T\u00fcrkiye based on the historical cost approach and
\nusing the Consumer Price Index (CPI).
\nCPI rate developments for Argentina and T\u00fcrkiye are
\nincluded in the table \u201cCPI rates at December 31\u201d.
\nCPI rates at December 31
\nCountry
2020
2021
2022
\nArgentina
386
582
1,135
\nT\u00fcrkiye
505
687
1,128
\nFor a consolidated overview of financial impacts from
\nhyperinflation accounting, refer to Note 8.
Accounting impact hyperin\ufb02ation accounting
\nWe have applied IAS 29 \u201cFinancial Reporting in Hyper-
\ninflationary Economies\u201d for T\u00fcrkiye as from January 1,
\n2022. For Argentina, hyperinflation accounting was already
\napplied as from January 1, 2018. In addition, and in line
\nwith IAS 21 \u201cThe Effect of Changes in Foreign Exchange
\nRates\u201d, end of month rates are used to translate both the
\nbalance sheet and the statement of income into euros.
\nFor T\u00fcrkiye, the revaluation effect on the non-monetary
\nassets at January 1, 2022, was \u20ac16 million positive (after
\ntaxes), recorded as a restatement to opening sharehold-
\ners\u2019 equity. In addition, the opening balance of intangible
\nassets has been restated by \u20ac1 million (refer to Note 11)
\nand the opening balance of property, plant and equip-
\nment has been restated by \u20ac15 million (refer to Note 12).
\nRefer to Note 9 Income tax for the related opening balance
\nimpact on deferred taxes.
\nThe application of hyperinflation accounting and the use
\nof end of month rates to translate the statement of income
\ninto euros resulted in an \u20ac5 million positive impact on
\nrevenues, an \u20ac46 million negative impact on operating
\nincome and an \u20ac63 million negative impact on net income
\nfor the year.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfHyperinflationaryReportingExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14620": {
"value": "REVENUE RECOGNITION (NOTE 5) Sale of goods
\nAkzoNobel\u2019s main business consists of straightforward
\nselling of goods (paints and coatings) to customers at
\ncontractually determined prices and conditions without
\nany additional services. Although the transfer of risks
\nand rewards is not the only criterion to be considered to
\ndetermine whether control over the goods has transferred,
\nit is in most situations considered to be the main indicator
\nof the customer\u2019s ability to direct the use of and obtain the
\nbenefits from the asset and largely also coincides with the
\nphysical transfer of the goods and the obligation of the
\ncustomer to pay.
\nVariable considerations, including among others rebates,
\nbonuses, discounts and payments to customers, are
\naccrued for as performance obligations are satisfied and
\nrevenue is recognized. Variable considerations are only
\nrecognized when it is highly probable that these are not
\nsubject to significant reversal. In case of expected returns,
\nno revenue is recognized for such products, but a refund
\nliability and an asset for the right to recover the to be
\nreturned products are recorded. A provision for warranties
\nis recognized when the underlying products or services are
\nsold, generally based on historical warranty data. Revenue
\nis recognized net of rebates, discounts and similar allow-
\nances, and net of sales tax.
\nEquipment provided to customers
\nAkzoNobel regularly provides mixing machines, store
\ninterior and other assets to its customers at the start of a
\npaints or coatings delivery contract. The delivery of such
\nassets qualifies as a separate performance obligation.
\nRevenue can only be recognized at the moment of transfer
\nof such assets, when there is an agreed sales price or
\nwhen there is a binding take-or-pay commitment for a
\nminimum quantity of paints or coatings to be acquired by
\nthe customer.
\nServices
\nAkzoNobel provides certain training, technical or support
\nservices to customers as well as shipping and handling
\nactivities for its customers. Service revenue is recognized
\nover time when the related services are being provided.
\nWhen not separately invoiced, part of the sales price of
\npaints or coatings is allocated to such services.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14635": {
"value": "Variable considerations, including among others rebates, bonuses, discounts and payments to customers, are
\naccrued for as performance obligations are satisfied and
\nrevenue is recognized. Variable considerations are only
\nrecognized when it is highly probable that these are not
\nsubject to significant reversal.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscountsAndRebatesExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14669": {
"value": "POST-RETIREMENT BENEFITS (NOTE 7, 19)
\nContributions to defined contribution plans are recognized
\nin the statement of income as incurred.
\nMost of our defined benefit pension plans are funded
\nwith plan assets that have been segregated in a trust or
\nfoundation. We also provide post-retirement benefits other
\nthan pensions to certain employees, which are gener-
\nally not funded. Valuations of both funded and unfunded
\nplans are carried out by independent actuaries based on
\nthe projected unit credit method. Post-retirement costs
\nprimarily represent the increase in the actuarial present
\nvalue of the obligation for projected benefits based on
\nemployee service during the year and interest on the net
\ndefined benefit liability/asset. When the calculation results
\nin a benefit to AkzoNobel, the recognized asset is limited
\nto the present value of economic benefits available in
\nthe form of any future refunds from the plan or reductions
\nin future contributions to the plan. An economic benefit
\nis available if it is realizable during the life of the plan,
\nor on the settlement of the plan liabilities. The effect of
\nthese so-called asset ceiling restrictions and any changes
\ntherein are recognized in other comprehensive income.
\nRemeasurement gains and losses, which arise in
\ncalculating our obligations, are recognized in other
\ncomprehensive income. When the benefits of a plan
\nimprove, the portion of the increased benefits related
\nto past service by employees is recognized as an
\nexpense in the statement of income immediately. We
\nrecognize gains and losses on the curtailment or settle-
\n105
AkzoNobel Report 2022
|
Financial statements
ment of a defined benefit plan when the curtailment or
\nsettlement occurs.
\nInterest on the net defined benefit liability/asset is included
\nin financing expenses related to post-retirement benefits.
\nOther charges and benefits recognized are reported
\nin operating income, unless recorded in other comprehen-
\nsive income.
\nOTHER EMPLOYEE BENEFITS
\n(NOTE 7, 20)
\nProvisions for other long-term employee benefits are
\nmeasured at present value, using actuarial assumptions and
\nmethods. Any actuarial gains and losses are recognized in
\nthe statement of income in the period in which they arise.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14732": {
"value": "SHARE-BASED COMPENSATION (NOTE 7)
\nAkzoNobel has a performance-related and a restricted
\nshare plan as well as a share-matching plan, under which
\nshares are conditionally granted to certain employees.
\nThe fair value is measured at grant date and amortized
\nover the three-year period during which the employees
\nnormally become unconditionally entitled to the shares
\nwith a corresponding increase in shareholders\u2019 equity.
\nAmortization is accelerated in the event of earlier vesting
\nor settlement.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14746": {
"value": "INCOME TAX (NOTE 9) Income tax expense comprises both current and deferred
\ntax, including effects of changes in tax rates. In determin-
\ning the amount of current and deferred tax we also take
\ninto account the impact of uncertain tax positions and
\nwhether additional taxes may be due. Income tax is recog-
\nnized in the statement of income, unless it relates to items
\nrecognized in other comprehensive income or equity.
\nCurrent tax includes the expected tax payable and receiv-
\nable on the taxable income for the year, using tax rates
\nenacted or substantially enacted at reporting date, as well
\nas (any adjustments to) tax payables and receivables with
\nrespect to previous years.
\nDeferred tax is recognized using the liability method on
\ntemporary differences arising between the tax bases of
\nassets and liabilities and their carrying amounts in the
\nConsolidated financial statements. We do not recognize
\ndeferred tax for the initial recognition of goodwill, the
\ninitial recognition of assets or liabilities that affect neither
\naccounting nor taxable profit, and differences related to
\ninvestments in subsidiaries to the extent that they
\nwill probably not reverse in the foreseeable future and we
\ncan control the timing of the reversal of the temporary
\ndifference. Deferred tax assets are recognized for unused
\ntax losses, tax credits and deductible temporary differ-
\nences, to the extent that it is probable that future
\ntaxable profits will be available against which they can
\nbe utilized.
\nMeasurement of deferred tax assets and liabilities is
\nbased upon the enacted or substantially enacted tax
\nrates expected to apply to taxable income in the years in
\nwhich temporary differences are expected to be reversed.
\nDeferred tax positions are not discounted.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14761": {
"value": "Deferred tax is recognized using the liability method on temporary differences arising between the tax bases of
\nassets and liabilities and their carrying amounts in the
\nConsolidated financial statements. We do not recognize
\ndeferred tax for the initial recognition of goodwill, the
\ninitial recognition of assets or liabilities that affect neither
\naccounting nor taxable profit, and differences related to
\ninvestments in subsidiaries to the extent that they
\nwill probably not reverse in the foreseeable future and we
\ncan control the timing of the reversal of the temporary
\ndifference. Deferred tax assets are recognized for unused
\ntax losses, tax credits and deductible temporary differ-
\nences, to the extent that it is probable that future
\ntaxable profits will be available against which they can
\nbe utilized.
\nMeasurement of deferred tax assets and liabilities is
\nbased upon the enacted or substantially enacted tax
\nrates expected to apply to taxable income in the years in
\nwhich temporary differences are expected to be reversed.
Deferred tax positions are not discounted.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14785": {
"value": "EARNINGS PER SHARE (NOTE 10)
\nBasic earnings per share is calculated by dividing the
\nprofit for the period attributable to shareholders of the
\ncompany by the weighted average number of common
\nshares outstanding during the year, adjusted for any repur-
\nchased shares. Diluted earnings per share is calculated
\nby adjusting the weighted average number of common
\nshares outstanding during the year for the diluting effect
\nof the shares of the performance-related share plan, the
\nrestricted share plan and the share-matching plan.
\nAdjusted earnings per share represents the basic earnings
\nper share from continuing operations excluding identified
\nitems, after taxes.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14802": {
"value": "GOVERNMENT GRANTS Government grants related to costs are deducted from
\nthe relevant costs to be compensated in the same period.
\nGovernment grants to compensate for the cost of an asset
\nare deducted from the cost of the related asset. Emission
\nrights granted by the government are recorded at cost.
\nA provision is recorded if the actual emission is higher than
\nthe emission rights granted.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForGovernmentGrants",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14808": {
"value": "Emission rights granted by the government are recorded at cost.
\nA provision is recorded if the actual emission is higher than
the emission rights granted.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEmissionRightsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14816": {
"value": "INTANGIBLE ASSETS (NOTE 11) Intangible assets are valued at cost less accumulated
\namortization and impairment charges. Intangible assets
\nwith an indefinite useful life, such as goodwill and certain
\nbrands, are not amortized, but tested for impairment annu-
\nally using the value-in-use method.
\nIntangible assets with a finite useful life, such as licenses,
\nknow-how, certain brands, customer relationships, intellec-
\ntual property rights, emission rights, software expenditures
\n(in as far as AkzoNobel controls the software configured or
\ncustomized) and capitalized development costs, are capital-
\nized at historical cost and amortized on a straight-line basis
\nover the estimated useful life of the assets, which generally
\nranges from 5 to 40 years for brands with finite useful lives,
\n5 to 25 years for customer relationships and 3 to 15 years
\nfor other intangibles. Amortization methods, useful lives and
\nresidual values are reassessed annually. Research expendi-
\ntures are recognized as an expense as incurred.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14817": {
"value": "INTANGIBLE ASSETS (NOTE 11) Intangible assets are valued at cost less accumulated
\namortization and impairment charges. Intangible assets
\nwith an indefinite useful life, such as goodwill and certain
\nbrands, are not amortized, but tested for impairment annu-
\nally using the value-in-use method.
\nIntangible assets with a finite useful life, such as licenses,
\nknow-how, certain brands, customer relationships, intellec-
\ntual property rights, emission rights, software expenditures
\n(in as far as AkzoNobel controls the software configured or
\ncustomized) and capitalized development costs, are capital-
\nized at historical cost and amortized on a straight-line basis
\nover the estimated useful life of the assets, which generally
\nranges from 5 to 40 years for brands with finite useful lives,
\n5 to 25 years for customer relationships and 3 to 15 years
\nfor other intangibles. Amortization methods, useful lives and
\nresidual values are reassessed annually. Research expendi-
\ntures are recognized as an expense as incurred.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14818": {
"value": "INTANGIBLE ASSETS (NOTE 11) Intangible assets are valued at cost less accumulated
\namortization and impairment charges. Intangible assets
\nwith an indefinite useful life, such as goodwill and certain
\nbrands, are not amortized, but tested for impairment annu-
\nally using the value-in-use method.
\nIntangible assets with a finite useful life, such as licenses,
\nknow-how, certain brands, customer relationships, intellec-
\ntual property rights, emission rights, software expenditures
\n(in as far as AkzoNobel controls the software configured or
\ncustomized) and capitalized development costs, are capital-
\nized at historical cost and amortized on a straight-line basis
\nover the estimated useful life of the assets, which generally
\nranges from 5 to 40 years for brands with finite useful lives,
\n5 to 25 years for customer relationships and 3 to 15 years
\nfor other intangibles. Amortization methods, useful lives and
\nresidual values are reassessed annually. Research expendi-
\ntures are recognized as an expense as incurred.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14843": {
"value": "PROPERTY, PLANT AND EQUIPMENT (NOTE 12)
\nProperty, plant and equipment are valued at cost less
\naccumulated depreciation and impairment charges. Costs
\ninclude expenditures that are directly attributable to the
\nacquisition of the asset, including borrowing cost of capital
\ninvestment projects under construction.
\nDepreciation is calculated using the straight-line method,
\nbased on the estimated useful life of the asset compo-
\nnents.The useful life of plant equipment and machinery
\ngenerally ranges from 10 to 25 years, and for buildings
\nranges from 20 to 50 years. Land is not depreciated. In
\nthe majority of cases, residual value is assumed to be not
\nsignificant. Depreciation methods, useful lives and residual
\nvalues are reassessed annually.
\nCosts of major maintenance activities are capitalized and
\ndepreciated over the estimated useful life. Maintenance
\ncosts which cannot be separately defined as a component
\nof property, plant and equipment are expensed in the
\n106
AkzoNobel Report 2022
|
Financial statements
period in which they occur. We recognize conditional asset
\nretirement obligations in the periods in which sufficient
\ninformation becomes available to reasonably estimate the
\ncash outflow.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14852": {
"value": "Depreciation is calculated using the straight-line method, based on the estimated useful life of the asset compo-
\nnents.The useful life of plant equipment and machinery
\ngenerally ranges from 10 to 25 years, and for buildings
\nranges from 20 to 50 years. Land is not depreciated. In
\nthe majority of cases, residual value is assumed to be not
\nsignificant. Depreciation methods, useful lives and residual
\nvalues are reassessed annually.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14863": {
"value": "Costs of major maintenance activities are capitalized and depreciated over the estimated useful life. Maintenance
\ncosts which cannot be separately defined as a component
\nof property, plant and equipment are expensed in the
\n106
AkzoNobel Report 2022
|
Financial statements
period in which they occur. We recognize conditional asset
\nretirement obligations in the periods in which sufficient
\ninformation becomes available to reasonably estimate the
\ncash outflow.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForRepairsAndMaintenanceExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14894": {
"value": "LEASES (NOTE 13, 21) As a lessee, we assess whether a contract is, or contains,
\na lease at inception. A contract is, or contains, a lease
\nif the contract conveys the right to control the use of an
\nidentified asset for a period of time in exchange for a
\nconsideration.
\nAt commencement or on modification of a contract that
\ncontains a lease component, we allocate the consideration
\nin the contract to each lease component on the basis of its
\nrelative stand-alone price. However, for the leases of cars
\nwe have elected not to separate non-lease components
\nand account for the lease and non-lease components as a
\nsingle lease component.
\nWe recognize a right-of-use asset and a lease liability at
\nthe lease commencement date. The right-of-use asset is
\ninitially measured at the present value of the lease liability.
\nThe right-of-use asset value contains lease prepayments,
\nlease incentives received, the initial direct costs and an
\nestimate of restoration, removal and dismantling costs.
\nFor deferred taxes associated with lease accounting under
\nIFRS 16, AkzoNobel determines the temporary differences
\nbetween the book basis and tax basis of the right-of-
\nuse asset and the lease liability on a net basis. It is the
\ncompany\u2019s view that these are integrally linked. As a result,
\na deferred tax position is reported on the net temporary
\ndifferences of the right-of-use assets and lease liabilities.
\nThe right-of-use assets are depreciated using the straight-
\nline method from the commencement date to the end of
\nthe lease term or shorter economic life. In addition, the
\nvalue of right-of-use assets is reduced by impairment
\nlosses, if any, and adjusted for certain remeasurements of
\nthe lease liability.
\nThe net present value of the lease liability is measured at
\nthe discounted value of the lease payments. The liability
\nincludes payments to be made in optional periods if it
\nis reasonably certain that we will exercise an option to
\nextend the lease, or that we will not exercise an option
\nto terminate the lease. The lease payments comprise the
\nfollowing:
\n\u2022
Fixed payments (including in substance fixed payments),
\nless any lease incentives
\n\u2022
Variable lease payments that depend on an index or a
\nrate
\n\u2022
The exercise price of a purchase option if it is
\nreasonably certain that the option will be exercised
\n\u2022
Payments of penalties for terminating the lease, if the
\nlease term reflects the lessee exercising an option to
\nterminate the lease; and
\n\u2022
Amounts expected to be payable under residual value
\nguarantees
\nThese lease payments are discounted using the interest
\nrate implicit in the lease contract, if that rate can be readily
\ndetermined. If that rate cannot be readily determined, the
\nincremental borrowing rate is used. We determine our
\nincremental borrowing rates by obtaining interest rates
\nfrom various external financing sources and make certain
\nadjustments to reflect the term of the lease and type of
\nthe asset leased. At the lease commencement dates,
\nwe assess whether it is reasonably certain that we will
\nexercise the extension options. We reassess whether it is
\nreasonably certain that we will exercise the options, if there
\nis a significant event or significant change in circumstances
\nwithin our control.
\nAt the commencement date, we assess whether it is
\nreasonably certain that:
\n\u2022
An option to extend is exercised; or
\n\u2022
An option to purchase is exercised; or
\n\u2022
An option to terminate the lease is not exercised
\nIn making these assessments, all relevant facts and
\ncircumstances that create an economic incentive for us
\nto exercise, or not to exercise, the option, including any
\nexpected changes in facts and circumstances from the
\ncommencement date until the exercise date of the option
\nare considered.
\nShort-term leases and leases of low-value assets
\nWe do not record right-of-use assets and lease liabilities
\non the balance sheet for leases of low-value assets and
\nshort-term leases. We recognize the lease payments asso-
\nciated with these leases as an expense on a straight-line
\nbasis over the lease term.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14984": {
"value": "IMPAIRMENTS (NOTE 11, 12, 13)
\nWe assess the carrying value of intangible assets, property,
\nplant and equipment and right-of-use assets whenever
\nevents or changes in circumstances indicate that the carry-
\ning value of an asset may not be recoverable as a result
\nof e.g. changes in cash flow forecasts, damages, market
\ndevelopments or environmental and climate change risks.
\nIn addition, for goodwill and other intangible assets with
\nan indefinite useful life, the carrying value is reviewed at
\nleast annually or when circumstances indicate the carrying
\namount may be impaired. If the carrying value of an asset
\nor its cash-generating unit exceeds its estimated recov-
\nerable amount, an impairment loss is recognized in the
\nstatement of income on the functional level of the asset
\nimpaired. The assessment for impairment is performed at
\nthe lowest level of assets generating largely independent
\ncash inflows. For goodwill and other intangible assets with
\nan indefinite life, we have determined this to be at business
\nunit level (one level below operating segment).
\nExcept for goodwill, we reverse impairment losses in
\nthe statement of income if and to the extent we have
\nidentified a change in estimates used to determine the
\nrecoverable amount.
Valuation and impairment
\nFinancial assets are assessed for impairment either accord-
\ning to the general approach or a simplified approach.
\nThe calculation of impairment under the general approach
\nuses the following stages:
\n\u2022
12-month expected credit losses; taking into account
\npossible default events within one year
\n\u2022
Lifetime expected credit losses in case of an increase in
\ncredit risk; through recognition of expected credit losses
\nover the remaining life of the exposure
\n\u2022
Lifetime expected credit losses, where interest is
\ncalculated on the net amount of the receivables less
\nimpairment loss
\nIn all above stages, the impairment calculation used is
\nbased on external credit ratings of involved parties or
\ndefault rates published by well-known credit risk agencies.
\nThe financial assets included in the general impairment
\napproach are long-term loans and other long-term receiv-
\nables.
\nThe calculation of impairment under the simplified
\napproach requires recognition of lifetime expected credit
\nloss (no tracking of changes in credit risk). The financial
\nassets included in the simplified impairment approach are
\ntrade receivables and the remaining financial assets.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14986": {
"value": "IMPAIRMENTS (NOTE 11, 12, 13) We assess the carrying value of intangible assets, property,
\nplant and equipment and right-of-use assets whenever
\nevents or changes in circumstances indicate that the carry-
\ning value of an asset may not be recoverable as a result
\nof e.g. changes in cash flow forecasts, damages, market
\ndevelopments or environmental and climate change risks.
\nIn addition, for goodwill and other intangible assets with
\nan indefinite useful life, the carrying value is reviewed at
\nleast annually or when circumstances indicate the carrying
\namount may be impaired. If the carrying value of an asset
\nor its cash-generating unit exceeds its estimated recov-
\nerable amount, an impairment loss is recognized in the
\nstatement of income on the functional level of the asset
\nimpaired. The assessment for impairment is performed at
\nthe lowest level of assets generating largely independent
\ncash inflows. For goodwill and other intangible assets with
\nan indefinite life, we have determined this to be at business
\nunit level (one level below operating segment).
\nExcept for goodwill, we reverse impairment losses in
\nthe statement of income if and to the extent we have
\nidentified a change in estimates used to determine the
\nrecoverable amount.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15012": {
"value": "ASSOCIATES AND JOINT VENTURES (NOTE 14)
\nAssociates and joint ventures are accounted for using the
\nequity method and are initially recognized at cost. The
\nConsolidated financial statements include our share of the
\nincome and expenses of the associates and joint ventures,
\nwhereby the result is determined using our accounting
\nprinciples. When the share of losses exceeds the interest
\nin the investee, the carrying amount is reduced to nil and
\nrecognition of further losses is discontinued, unless we
\nhave further legal or constructive obligations.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15013": {
"value": "ASSOCIATES AND JOINT VENTURES (NOTE 14)
\nAssociates and joint ventures are accounted for using the
\nequity method and are initially recognized at cost. The
\nConsolidated financial statements include our share of the
\nincome and expenses of the associates and joint ventures,
\nwhereby the result is determined using our accounting
\nprinciples. When the share of losses exceeds the interest
\nin the investee, the carrying amount is reduced to nil and
\nrecognition of further losses is discontinued, unless we
\nhave further legal or constructive obligations.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15014": {
"value": "ASSOCIATES AND JOINT VENTURES (NOTE 14)
\nAssociates and joint ventures are accounted for using the
\nequity method and are initially recognized at cost. The
\nConsolidated financial statements include our share of the
\nincome and expenses of the associates and joint ventures,
\nwhereby the result is determined using our accounting
\nprinciples. When the share of losses exceeds the interest
\nin the investee, the carrying amount is reduced to nil and
\nrecognition of further losses is discontinued, unless we
\nhave further legal or constructive obligations.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15032": {
"value": "INVENTORIES (NOTE 16) Inventories are measured at the lower of cost and net
\nrealizable value. Costs of inventories comprise all costs of
\npurchase, costs of conversion and other costs incurred
\nin bringing the inventories to the present location and
\n107
AkzoNobel Report 2022
|
Financial statements
condition. The costs of inventories are determined using
\nweighted average cost.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15059": {
"value": "PROVISIONS (NOTE 20) We recognize provisions when a present legal or construc-
\ntive obligation as a result of a past event exists, it is
\nprobable that an outflow of economic benefits is required
\nto settle the obligation and the amount can be reliably esti-
\nmated. Provisions are measured at net present value. The
\nincrease of provisions as a result of the passage of time
\nis recognized in the statement of income under financing
\nincome and expenses.
\nProvisions for restructuring of activities are recognized
\nwhen a detailed and formal restructuring plan has been
\napproved, and the restructuring has either commenced or
\nhas been announced publicly. We do not provide for future
\noperating costs.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15076": {
"value": "FINANCIAL INSTRUMENTS Classi\ufb01cation
\nAll assets are measured at amortized cost, fair value
\nthrough profit or loss or fair value through other compre-
\nhensive income. Financial assets are classified according
\nto a model based on:
\n\u2022
A contractual cash flow characteristics test
\n\u2022
A business model dictating how the reporting entity
\nmanages its financial assets in order to generate cash
\nflows as either:
\n1. Hold to collect contractual cash flows
\n2. Collect contractual cash flows and sell
\n3. Neither 1 or 2
\n\u2022
Election of the fair value option in some specific cases in
\norder to eliminate an accounting mismatch
\nThe classification of a financial asset is determined at initial
\nrecognition, but if certain conditions are met, an asset
\nmight be subject to reclassification.
\nValuation and impairment
\nFinancial assets are assessed for impairment either accord-
\ning to the general approach or a simplified approach.
\nThe calculation of impairment under the general approach
\nuses the following stages:
\n\u2022
12-month expected credit losses; taking into account
\npossible default events within one year
\n\u2022
Lifetime expected credit losses in case of an increase in
\ncredit risk; through recognition of expected credit losses
\nover the remaining life of the exposure
\n\u2022
Lifetime expected credit losses, where interest is
\ncalculated on the net amount of the receivables less
\nimpairment loss
\nIn all above stages, the impairment calculation used is
\nbased on external credit ratings of involved parties or
\ndefault rates published by well-known credit risk agencies.
\nThe financial assets included in the general impairment
\napproach are long-term loans and other long-term receiv-
\nables.
\nThe calculation of impairment under the simplified
\napproach requires recognition of lifetime expected credit
\nloss (no tracking of changes in credit risk). The financial
\nassets included in the simplified impairment approach are
\ntrade receivables and the remaining financial assets.
\nMeasurement
\nRegular purchases and sales of financial assets and
\nliabilities are recognized on trade date. The initial measure-
\nment of all financial instruments is at fair value. Except
\nfor derivatives and cash and cash equivalents, the initial
\nmeasurement of financial instruments is adjusted for
\ndirectly attributable transaction costs.
\nDerivative \ufb01nancial instruments (Note 27)
\nDerivative financial instruments are recognized at fair value
\non the balance sheet. Fair values are derived from market
\nprices and quotes from dealers and brokers or are esti-
\nmated using observable market inputs. When determining
\nfair values, credit risk for our contract party, as well as for
\nAkzoNobel, is taken into account.
\nChanges in fair value are recognized in the statement of
\nincome, unless cash flow hedge accounting or net invest-
\nment hedge accounting is applied. In those cases, the
\neffective part of the fair value changes is deferred in other
\ncomprehensive income and released to the related specific
\nlines in the statement of income or balance sheet at the
\nsame time as the hedged item.
\nFinancial non-current assets (Note 15) and Trade
\nand other receivables (Note 17)
\nLoans and receivables are measured at amortized cost, using
\nthe effective interest method, less any impairment losses.
\nCash and cash equivalents and Short-term
\ninvestments (Note 21)
\nCash and cash equivalents and short-term investments are
\nmeasured at fair value. Cash and cash equivalents include
\nall cash balances and other investments that are directly
\nconvertible into known amounts of cash. Changes in fair
\nvalues are included in financing income and expenses.
\nLong-term and Short-term borrowings (Note 21,
\n27) and Trade and other payables (Note 22)
\nLong-term and short-term borrowings, as well as trade
\nand other payables, are measured at amortized cost, using
\nthe effective interest rate method. The interest expense on
\nborrowings is included in financing income and expenses.
\nThe fair value of borrowings, used for disclosure purposes,
\nis determined based on listed market price, if available. If a
\nlisted market price is not available, the fair value is calcu-
\nlated based on the present value of principal and interest
\ncash flows, discounted at the interest rate at the reporting
\ndate, considering AkzoNobel\u2019s credit risk.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15079": {
"value": "Classi\ufb01cation All assets are measured at amortized cost, fair value
\nthrough profit or loss or fair value through other compre-
\nhensive income. Financial assets are classified according
\nto a model based on:
\n\u2022
A contractual cash flow characteristics test
\n\u2022
A business model dictating how the reporting entity
\nmanages its financial assets in order to generate cash
\nflows as either:
\n1. Hold to collect contractual cash flows
\n2. Collect contractual cash flows and sell
\n3. Neither 1 or 2
\n\u2022
Election of the fair value option in some specific cases in
\norder to eliminate an accounting mismatch
\nThe classification of a financial asset is determined at initial
\nrecognition, but if certain conditions are met, an asset
\nmight be subject to reclassification.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForReclassificationOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15103": {
"value": "Valuation and impairment Financial assets are assessed for impairment either accord-
\ning to the general approach or a simplified approach.
\nThe calculation of impairment under the general approach
\nuses the following stages:
\n\u2022
12-month expected credit losses; taking into account
\npossible default events within one year
\n\u2022
Lifetime expected credit losses in case of an increase in
\ncredit risk; through recognition of expected credit losses
\nover the remaining life of the exposure
\n\u2022
Lifetime expected credit losses, where interest is
\ncalculated on the net amount of the receivables less
\nimpairment loss
\nIn all above stages, the impairment calculation used is
\nbased on external credit ratings of involved parties or
\ndefault rates published by well-known credit risk agencies.
\nThe financial assets included in the general impairment
\napproach are long-term loans and other long-term receiv-
\nables.
\nThe calculation of impairment under the simplified
\napproach requires recognition of lifetime expected credit
\nloss (no tracking of changes in credit risk). The financial
\nassets included in the simplified impairment approach are
\ntrade receivables and the remaining financial assets.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15133": {
"value": "Measurement Regular purchases and sales of financial assets and
\nliabilities are recognized on trade date. The initial measure-
\nment of all financial instruments is at fair value. Except
\nfor derivatives and cash and cash equivalents, the initial
\nmeasurement of financial instruments is adjusted for
\ndirectly attributable transaction costs.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15143": {
"value": "Derivative \ufb01nancial instruments (Note 27) Derivative financial instruments are recognized at fair value
\non the balance sheet. Fair values are derived from market
\nprices and quotes from dealers and brokers or are esti-
\nmated using observable market inputs. When determining
\nfair values, credit risk for our contract party, as well as for
\nAkzoNobel, is taken into account.
\nChanges in fair value are recognized in the statement of
\nincome, unless cash flow hedge accounting or net invest-
\nment hedge accounting is applied. In those cases, the
\neffective part of the fair value changes is deferred in other
\ncomprehensive income and released to the related specific
\nlines in the statement of income or balance sheet at the
\nsame time as the hedged item.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15144": {
"value": "Derivative \ufb01nancial instruments (Note 27) Derivative financial instruments are recognized at fair value
\non the balance sheet. Fair values are derived from market
\nprices and quotes from dealers and brokers or are esti-
\nmated using observable market inputs. When determining
\nfair values, credit risk for our contract party, as well as for
\nAkzoNobel, is taken into account.
\nChanges in fair value are recognized in the statement of
\nincome, unless cash flow hedge accounting or net invest-
\nment hedge accounting is applied. In those cases, the
\neffective part of the fair value changes is deferred in other
\ncomprehensive income and released to the related specific
\nlines in the statement of income or balance sheet at the
\nsame time as the hedged item.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15145": {
"value": "Derivative \ufb01nancial instruments (Note 27) Derivative financial instruments are recognized at fair value
\non the balance sheet. Fair values are derived from market
\nprices and quotes from dealers and brokers or are esti-
\nmated using observable market inputs. When determining
\nfair values, credit risk for our contract party, as well as for
\nAkzoNobel, is taken into account.
\nChanges in fair value are recognized in the statement of
\nincome, unless cash flow hedge accounting or net invest-
\nment hedge accounting is applied. In those cases, the
\neffective part of the fair value changes is deferred in other
\ncomprehensive income and released to the related specific
\nlines in the statement of income or balance sheet at the
\nsame time as the hedged item.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15166": {
"value": "Financial non-current assets (Note 15) and Trade and other receivables (Note 17)
\nLoans and receivables are measured at amortized cost, using
\nthe effective interest method, less any impairment losses.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15167": {
"value": "Financial non-current assets (Note 15) and Trade and other receivables (Note 17)
\nLoans and receivables are measured at amortized cost, using
\nthe effective interest method, less any impairment losses.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForLoansAndReceivablesExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15176": {
"value": "Cash and cash equivalents and Short-term investments (Note 21)
\nCash and cash equivalents and short-term investments are
\nmeasured at fair value. Cash and cash equivalents include
\nall cash balances and other investments that are directly
\nconvertible into known amounts of cash. Changes in fair
\nvalues are included in financing income and expenses.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15186": {
"value": "Long-term and Short-term borrowings (Note 21, 27) and Trade and other payables (Note 22)
\nLong-term and short-term borrowings, as well as trade
\nand other payables, are measured at amortized cost, using
\nthe effective interest rate method. The interest expense on
\nborrowings is included in financing income and expenses.
\nThe fair value of borrowings, used for disclosure purposes,
\nis determined based on listed market price, if available. If a
\nlisted market price is not available, the fair value is calcu-
\nlated based on the present value of principal and interest
\ncash flows, discounted at the interest rate at the reporting
date, considering AkzoNobel\u2019s credit risk.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15187": {
"value": "Long-term and Short-term borrowings (Note 21, 27) and Trade and other payables (Note 22)
\nLong-term and short-term borrowings, as well as trade
\nand other payables, are measured at amortized cost, using
\nthe effective interest rate method. The interest expense on
\nborrowings is included in financing income and expenses.
\nThe fair value of borrowings, used for disclosure purposes,
\nis determined based on listed market price, if available. If a
\nlisted market price is not available, the fair value is calcu-
\nlated based on the present value of principal and interest
\ncash flows, discounted at the interest rate at the reporting
date, considering AkzoNobel\u2019s credit risk.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15205": {
"value": "NEW IFRS ACCOUNTING STANDARDS
\nIFRS standards and interpretations thereof not yet in force,
\nwhich may apply to our Consolidated financial state-
\nments for 2023 and beyond, have been assessed for their
\npotential impact.
\nThese include among others IFRS 17\u00a0\u201cInsurance
\nContracts\u201d, amendments to IAS 1 \u201cClassification of Liabili-
\nties as Current or Non-current\u201d, amendments to IAS 8
\n\u201cDefinition of Accounting Estimates\u201d, amendments to IAS
\n12 \u201cDeferred Tax related to Assets and Liabilities arising
\nfrom a Single Transaction\u201d, amendments to IAS 1 and
\nIFRS Practice Statement 2 \u201cDisclosure of Accounting Poli-
\ncies\u201d, amendments to IFRS 16 \u201cLease Liability in a
\nSale and Leaseback\u201d and amendments to IFRS 10 and
\nIAS 28 \u201cSale or Contribution of Assets between an Inves-
\ntor and its Associate or Joint Venture\u201d. These changes
\nare not expected to have a material effect on AkzoNobel\u2019s
Consolidated financial statements.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfExpectedImpactOfInitialApplicationOfNewStandardsOrInterpretations",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15241": {
"value": "Note 2 SCOPE OF CONSOLIDATION
\nMaterial subsidiaries
\nThe Consolidated financial statements comprise the
\nassets, liabilities, income and expenses of 251 legal enti-
\nties. Due to a legal entity reduction program, focusing
\non merging entities and liquidating dormant entities, we
\nexpect the number of legal entities to reduce in the coming
\nyears. We consider legal entities material when they repre-
\nsent, for at least two subsequent years, more than 5% of
\neither revenue or operating income. Material subsidiaries
\nincluded in the table below are fully owned at year-end
\n2022 except for Akzo Nobel India Limited, refer to Note 18
\nfor an overview of non-controlling interests.
\nMaterial subsidiaries related to continuing
\noperations
\nPrincipal place of
\nbusiness/country of
\nLegal entity
incorporation
\nAkzo Nobel Coatings Inc.
US
\nAkzo Nobel Paints (Shanghai) Co Ltd.
China
\nAkzo Nobel India Limited
India
\nImperial Chemical Industries Limited
UK
\nAkzo Nobel Decorative Coatings B.V.
The Netherlands
\nAkzo Nobel Coatings SPA
Italy
\nAcquisitions
\nOn April 22, 2022, AkzoNobel acquired 100% of the
\nshares of Colombia based paints and coatings company
\nGrupo Orbis S.A. (Grupo Orbis) for \u20ac566 million. The
\nacquisition strengthens our position in Latin America. The
\ntransaction includes eight operational manufacturing sites.
\nSince its acquisition, Grupo Orbis contributed \u20ac336 million
\nto revenue and \u20ac29 million to operating income. Based on
\nfinancial information received from the acquiree, revenues
\nfor the period January 1, 2022 until the date of acquisition
\namounted to \u20ac123 million.
\nBased on the provisional purchase price allocation, the
\ntransaction resulted in \u20ac262 million of goodwill (non-
\ndeductible for tax purposes), \u20ac259 million of other
\nintangible assets and \u20ac121 million of property, plant and
\nequipment. The purchase price allocation will be final-
\nized before April 21, 2023. No material changes from the
\ncurrent purchase price allocation are expected.
\nThe purchase price allocation was performed using the
\nimplied internal rate of return on management\u2019s forecasts.
\nAn assessment of the assumptions applied in estimating
\nsuch forecasts was made, including potential synergies that
\nare expected to be realized as a result of the transaction.
\nThe goodwill is mainly attributable to synergies expected
\nto be achieved from integrating the company into the
\ngroup. The paints business of Grupo Orbis is being inte-
\ngrated in business unit Decorative Paints Latin America.
\nThe coatings businesses ultimately will be incorporated
\ninto the respective Performance Coatings business
\nunits in 2023. For the interim period, in 2022, these
\nbusinesses are reported in business unit Performance
\nCoatings Other.
\nOn December 1, 2022, we acquired the wheel liquid
\ncoatings business of Lankwitzer Lackfabrik GmbH for \u20ac36
\nmillion in an asset deal. The provisional purchase price
\nallocation resulted in \u20ac7 million of goodwill (deductible for
\ntax purposes), \u20ac17 million of other intangible assets and
\n\u20ac14 million other fixed and current assets. The goodwill is
\nmainly attributable to synergies expected to be achieved
\nfrom integrating the acquired business into the group.
\nThe purchase price is provisional due to the limited time
\nbetween the date of acquisition and the reporting date.
\nThe contribution of the Lankwitzer business to the 2022
\nstatement of income is not material. This business is being
\nintegrated in business unit Powder Coatings.
\nOn June 1, 2022, AkzoNobel announced the intended
\nacquisition of Kansai Paint\u2019s African paints and coatings
\nactivities. The intended acquisition is expected to further
\nstrengthen our activities in the region and provide opportu-
\nnities for future growth. The acquisition is expected to be
\ncompleted in the second half of 2023.
\nOn March 1, 2021, AkzoNobel acquired 100% of the
\nshares of Industrias Titan S.A.U. (Titan Paints) in Spain,
\nfor \u20ac83 million. The acquisition strengthens our paints
\nbusiness and footprint in Spain. The transaction included
\nthree production facilities and seven logistics and service
\ncenters for decorative paints. Based on the final purchase
\nprice
allocation, the transaction resulted in \u20ac16 million of
\ngoodwill
(non-deductible for tax purposes), \u20ac20 million of
\nother intangible assets and \u20ac47 million of property, plant
\nand equipment. The goodwill is mainly attributable to
\nsynergies expected to be achieved from integrating the
\ncompany into the group. Titan Paints is being integrated
\nin business unit Decorative Paints Europe, Middle East
\nand Africa.
\nRecognized fair values at acquisition
\nLankwitzer
\nGrupo Lackfabrik
\nOrbis S.A.,
GmbH,
Total
\nIn \u20ac millions
Colombia
Germany
Other
2022
\nOther intangibles
259
17
\u2014
276
\nProperty, plant and
121
4
\u2014
125
\nequipment
\nRight-of-use assets
8
2
\u2014
10
\nAssociates and joint
5
\u2014
\u2014
5
\nventures
\nInventories
91
6
\u2014
97
\nTrade and other receivables
98
2
(1)
99
\nCash and cash equivalents
14
\u2014
\u2014
14
\nLong-term debt
(79)
(2)
\u2014
(81)
\nProvisions
(9)
\u2014
\u2014
(9)
\nDeferred tax assets/
(104)
\u2014
\u2014
(104)
\n(liabilities)
\nNon controlling interests
(3)
\u2014
\u2014
(3)
\nTrade and other payables
(97)
\u2014
\u2014
(97)
\nNet identi\ufb01able assets
304
29
(1)
332
\nand liabilities
\nGoodwill
262
7
(7)
262
\nPurchase consideration
566
36
(8)
594
\nCash and cash equivalents
(14)
\u2014
\u2014
(14)
\nacquired
\nTo be received in 2023 and
\u2014
\u2014
8
8
\nlater years
\nNet cash out\ufb02ow
552
36
\u2014
588
\nDivestments
\nIn 2022 and 2021, no significant divestments occurred.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15245": {
"value": "Material subsidiaries The Consolidated financial statements comprise the
\nassets, liabilities, income and expenses of 251 legal enti-
\nties. Due to a legal entity reduction program, focusing
\non merging entities and liquidating dormant entities, we
\nexpect the number of legal entities to reduce in the coming
\nyears. We consider legal entities material when they repre-
\nsent, for at least two subsequent years, more than 5% of
\neither revenue or operating income. Material subsidiaries
\nincluded in the table below are fully owned at year-end
\n2022 except for Akzo Nobel India Limited, refer to Note 18
\nfor an overview of non-controlling interests.
\nMaterial subsidiaries related to continuing
\noperations
\nPrincipal place of
\nbusiness/country of
\nLegal entity
incorporation
\nAkzo Nobel Coatings Inc.
US
\nAkzo Nobel Paints (Shanghai) Co Ltd.
China
\nAkzo Nobel India Limited
India
\nImperial Chemical Industries Limited
UK
\nAkzo Nobel Decorative Coatings B.V.
The Netherlands
\nAkzo Nobel Coatings SPA
Italy",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15278": {
"value": "Acquisitions On April 22, 2022, AkzoNobel acquired 100% of the
\nshares of Colombia based paints and coatings company
\nGrupo Orbis S.A. (Grupo Orbis) for \u20ac566 million. The
\nacquisition strengthens our position in Latin America. The
\ntransaction includes eight operational manufacturing sites.
\nSince its acquisition, Grupo Orbis contributed \u20ac336 million
\nto revenue and \u20ac29 million to operating income. Based on
\nfinancial information received from the acquiree, revenues
\nfor the period January 1, 2022 until the date of acquisition
\namounted to \u20ac123 million.
\nBased on the provisional purchase price allocation, the
\ntransaction resulted in \u20ac262 million of goodwill (non-
\ndeductible for tax purposes), \u20ac259 million of other
\nintangible assets and \u20ac121 million of property, plant and
\nequipment. The purchase price allocation will be final-
\nized before April 21, 2023. No material changes from the
\ncurrent purchase price allocation are expected.
\nThe purchase price allocation was performed using the
\nimplied internal rate of return on management\u2019s forecasts.
\nAn assessment of the assumptions applied in estimating
\nsuch forecasts was made, including potential synergies that
\nare expected to be realized as a result of the transaction.
\nThe goodwill is mainly attributable to synergies expected
\nto be achieved from integrating the company into the
\ngroup. The paints business of Grupo Orbis is being inte-
\ngrated in business unit Decorative Paints Latin America.
\nThe coatings businesses ultimately will be incorporated
\ninto the respective Performance Coatings business
\nunits in 2023. For the interim period, in 2022, these
\nbusinesses are reported in business unit Performance
\nCoatings Other.
\nOn December 1, 2022, we acquired the wheel liquid
\ncoatings business of Lankwitzer Lackfabrik GmbH for \u20ac36
\nmillion in an asset deal. The provisional purchase price
\nallocation resulted in \u20ac7 million of goodwill (deductible for
\ntax purposes), \u20ac17 million of other intangible assets and
\n\u20ac14 million other fixed and current assets. The goodwill is
\nmainly attributable to synergies expected to be achieved
\nfrom integrating the acquired business into the group.
\nThe purchase price is provisional due to the limited time
\nbetween the date of acquisition and the reporting date.
\nThe contribution of the Lankwitzer business to the 2022
\nstatement of income is not material. This business is being
\nintegrated in business unit Powder Coatings.
\nOn June 1, 2022, AkzoNobel announced the intended
\nacquisition of Kansai Paint\u2019s African paints and coatings
\nactivities. The intended acquisition is expected to further
\nstrengthen our activities in the region and provide opportu-
\nnities for future growth. The acquisition is expected to be
\ncompleted in the second half of 2023.
\nOn March 1, 2021, AkzoNobel acquired 100% of the
\nshares of Industrias Titan S.A.U. (Titan Paints) in Spain,
\nfor \u20ac83 million. The acquisition strengthens our paints
\nbusiness and footprint in Spain. The transaction included
\nthree production facilities and seven logistics and service
\ncenters for decorative paints. Based on the final purchase
\nprice
allocation, the transaction resulted in \u20ac16 million of
\ngoodwill
(non-deductible for tax purposes), \u20ac20 million of
\nother intangible assets and \u20ac47 million of property, plant
\nand equipment. The goodwill is mainly attributable to
\nsynergies expected to be achieved from integrating the
\ncompany into the group. Titan Paints is being integrated
\nin business unit Decorative Paints Europe, Middle East
\nand Africa.
\nRecognized fair values at acquisition
\nLankwitzer
\nGrupo Lackfabrik
\nOrbis S.A.,
GmbH,
Total
\nIn \u20ac millions
Colombia
Germany
Other
2022
\nOther intangibles
259
17
\u2014
276
\nProperty, plant and
121
4
\u2014
125
\nequipment
\nRight-of-use assets
8
2
\u2014
10
\nAssociates and joint
5
\u2014
\u2014
5
\nventures
\nInventories
91
6
\u2014
97
\nTrade and other receivables
98
2
(1)
99
\nCash and cash equivalents
14
\u2014
\u2014
14
\nLong-term debt
(79)
(2)
\u2014
(81)
\nProvisions
(9)
\u2014
\u2014
(9)
\nDeferred tax assets/
(104)
\u2014
\u2014
(104)
\n(liabilities)
\nNon controlling interests
(3)
\u2014
\u2014
(3)
\nTrade and other payables
(97)
\u2014
\u2014
(97)
\nNet identi\ufb01able assets
304
29
(1)
332
\nand liabilities
\nGoodwill
262
7
(7)
262
\nPurchase consideration
566
36
(8)
594
\nCash and cash equivalents
(14)
\u2014
\u2014
(14)
\nacquired
\nTo be received in 2023 and
\u2014
\u2014
8
8
\nlater years
\nNet cash out\ufb02ow
552
36
\u2014
588",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15454": {
"value": "Divestments
\nIn 2022 and 2021, no significant divestments occurred.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15473": {
"value": "Note 3 SEGMENT INFORMATION Decorative Paints
\nWe provide decorative paints to both the professional and
\nthe do-it-yourself markets. We supply a variety of quality
\nproducts for every situation and surface, including paints,
\nlacquers and varnishes. We also offer a range of mixing
\nmachines and color concepts for the building and renova-
\ntion industry.
\nThe business units in the operating segment Decora-
\ntive Paints are set up regionally, as the paints business is
\nmanaged per region. Refer to Note 5 for a disaggregation
\nof revenues per region.
\nPerformance Coatings
\nWe are a supplier of performance coatings that protect
\nand enhance ships, cars, aircraft, yachts and architectural
\ncomponents (structural steel, building products, flooring),
\nconsumer goods (mobile devices, appliances, beverage
\ncans, furniture) and oil and gas facilities. The business
\nunits in the operating segment Performance Coatings
\nare set up per product/end market as the segment is
\nmanaged based on product/end market combinations.
\nRefer to Note 5 for a disaggregation of revenues per
\nproduct/end market.
\nThe tables in this Note include Alternative Performance
\nMeasures (APMs). Refer to Note 4 for further information
\non these APMs.
\nInformation per reportable segment
\nRevenue (third
Amortization and
Operating
Identi\ufb01ed
Adjusted
Adjusted
OPI
\nparties)
depreciation
income
items
\n1
\noperating income
\n1
\nEBITDA
\n1
\nEBITDA
\n1
\nROS%
\n1,2
\nmargin%
\n1,2
\nIn \u20ac millions
2021
2022
2021
2022
2021
\n3
\n2022
2021
\n3
\n2022
2021
\n3
\n2022
2021
\n3
\n2022
2021
\n3
\n2022
2021
\n3
\n2022
2021
\n3
\n2022
\nDecorative Paints
3,979
4,371
(154)
(154)
622
392
42
(5)
580
397
776
546
727
552
14.6
9.1
15.6
9.0
\nPerformance Coatings
5,603
6,472
(160)
(171)
616
444
2
(49)
614
493
776
615
773
664
11.0
7.6
11.0
6.9
\nCorporate and other
5
3
(37)
(43)
(120)
(128)
(18)
(27)
(102)
(101)
(83)
(85)
(64)
(59)
\nTotal
9,587
10,846
(351)
(368)
1,118
708
26
(81)
1,092
789
1,469
1,076
1,436
1,157
11.4
7.3
11.7
6.5
\n1
\nRefer to the glossary for definitions of the APMs.
\n2
\nROS% and OPI margin for Corporate and other is not shown, as this is
\nnot meaningful.
\n3
\nOperating income, adjusted operating income, EBITDA and adjusted EBITDA (and related measures)
\nper segment for 2021 have been updated to reflect changes in the financial reporting structure related
\nto a narrower definition of corporate activities and corporate costs in corporate and other activities.
\nInformation per reportable segment
\nInvested capital
Total assets
Total liabilities
Capital expenditures
\n1
\nROI%
\n1,2
\nIn \u20ac millions
2021
2022
2021
\n3
\n2022
2021
\n3
\n2022
2021
2022
2021
2022
\nDecorative Paints
3,022
3,604
5,591
5,890
1,862
1,581
108
91
20.2
10.8
\nPerformance Coatings
3,671
3,950
5,686
6,270
1,944
2,083
147
167
17.4
12.7
\nCorporate and other
428
581
2,601
2,581
4,436
6,529
33
34
\nTotal
7,121
8,135
13,878
14,741
8,242
10,193
288
292
16.0
9.8
\n1
\nRefer to the glossary for the definition of capital expenditures and ROI%.
\n2
\nROI% for Corporate and other is not shown, as this is not meaningful.
\n3
\nAs from 2022, total assets and total liabilities per segment exclude intercompany balances. Total assets
\nand total liabilities per segment for 2021 have been restated.
\nRegional information
\nIntangible assets and property,
\nRevenue by region of\u00a0destination
plant and equipment
Invested capital
Capital expenditures
\nIn \u20ac millions
2021
2022
2021
2022
2021
2022
2021
2022
\nThe Netherlands
335
319
1,206
1,223
1,787
1,900
45
45
\nOther EMEA countries
4,473
4,714
1,777
1,753
2,555
2,679
100
95
\nNorth Asia
1,735
1,728
1,203
1,162
969
965
45
40
\nSouth Asia Pacific
1,137
1,371
516
526
639
677
46
54
\nNorth America
1,163
1,416
602
648
809
890
37
42
\nLatin America*
744
1,298
186
728
362
1,024
15
16
\nTotal
9,587
10,846
5,490
6,040
7,121
8,135
288
292
\n* Previously reported as South America. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f16304": {
"value": "Note 5 REVENUE AkzoNobel derives revenue from the transfer of goods
\nand services at a point in time and over time in the major
\nproduct lines and geographical regions as disclosed in the
\ntable in this Note.
\nFor the receivables, which are included in Trade and other
\nreceivables, reference is made to Note 17.
\nAs at December 31, 2022, and at December 31, 2021, no
\nsignificant contract assets were recognized.
\nAs at December 31, 2022, the amount of contract
\nliabilities deferred to be recognized over time in 2023 was
\n\u20ac4 million. These contract liabilities primarily relate to
\nshipping, training and certain technical services, for which
\nrevenue is recognized over time. The amount of \u20ac3 million
\nincluded in contract liabilities at the beginning of the period
\nhas been recognized as revenue during the year 2022
\n(2021: \u20ac3 million).
\nRevenue disaggregation
\nDecorative Paints
Performance Coatings
Other
Total
\nIn \u20ac millions
2021
2022
2021
2022
2021
2022
2021
2022
\nPrimary geographical markets - revenue from third parties
\nThe Netherlands
231
206
99
110
5
3
335
319
\nOther EMEA countries
2,198
2,199
2,275
2,515
\u2014
\u2014
4,473
4,714
\nNorth Asia
560
564
1,175
1,164
\u2014
\u2014
1,735
1,728
\nSouth Asia Pacific
513
608
624
763
\u2014
\u2014
1,137
1,371
\nNorth America
\u2014
\u2014
1,163
1,416
\u2014
\u2014
1,163
1,416
\nLatin America
\n1
\n477
794
267
504
\u2014
\u2014
744
1,298
\nTotal
3,979
4,371
5,603
6,472
5
3
9,587
10,846
\nMajor goods/service lines - revenue from third parties
\nDecorative Paints Europe, Middle East and Africa
2,429
2,405
\u2014
\u2014
\u2014
\u2014
2,429
2,405
\nDecorative Paints Latin America
\n2
\n477
794
\u2014
\u2014
\u2014
\u2014
477
794
\nDecorative Paints Asia
1,073
1,172
\u2014
\u2014
\u2014
\u2014
1,073
1,172
\nPowder Coatings
\u2014
\u2014
1,315
1,376
\u2014
\u2014
1,315
1,376
\nMarine and Protective Coatings
\u2014
\u2014
1,164
1,374
\u2014
\u2014
1,164
1,374
\nAutomotive and Specialty Coatings
\u2014
\u2014
1,231
1,390
\u2014
\u2014
1,231
1,390
\nIndustrial Coatings
\u2014
\u2014
1,893
2,181
\u2014
\u2014
1,893
2,181
\nPerformance Coatings Other
\n2
\n\u2014
\u2014
\u2014
151
\u2014
\u2014
\u2014
151
\nCorporate and other
\u2014
\u2014
\u2014
\u2014
5
3
5
3
\nTotal
3,979
4,371
5,603
6,472
5
3
9,587
10,846
\nTiming of revenue recognition
\nGoods transferred at a point in time
3,923
4,284
5,405
6,258
\u2014
\u2014
9,328
10,542
\nServices transferred over time
56
87
198
214
5
3
259
304
\nTotal
3,979
4,371
5,603
6,472
5
3
9,587
10,846
\n1
\nPreviously reported as South America.
\n2
\nDecorative Paints Latin America includes Grupo Orbis revenues as from April 2022 to the extent these
\nrelate to the Decorative Paints segment. Performance Coatings Other relates to Grupo Orbis revenues
\n(as from April 2022) to the extent these relate to the Performance Coatings segment.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRevenueExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f16543": {
"value": "Note 6 OPERATING INCOME In 2022, operating income was lower at \u20ac708 million
\n(2021: \u20ac1,118 million), as a result of lower volumes and
\ndespite pricing initiatives more than compensating for raw
\nmaterial and freight cost inflation. Operating expenses
\nincreased as a result of higher manufacturing and supply
\nchain costs. OPI margin at 6.5% (2021: 11.7%).
\nCosts by nature 2022
\nEmployee
Purchases and
\nIn \u20ac millions
bene\ufb01ts
Amortization
Depreciation
other costs
Total
\nCost of sales
(550)
(1)
(152)
(6,220)
(6,923)
\nSelling and distribution expenses
(965)
(57)
(93)
(1,193)
(2,308)
\nGeneral and administrative expenses
(263)
(24)
(24)
(338)
(649)
\nResearch and development expenses
(182)
(5)
(12)
(59)
(258)
\nOther results
\u2014
\u2014
\u2014
\u2014
\u2014
\nTotal
(1,960)
(87)
(281)
(7,810)
(10,138)
\nCosts by nature 2021
\nEmployee
Purchases and
\nIn \u20ac millions
bene\ufb01ts
Amortization
Depreciation
other costs
Total
\nCost of sales*
(529)
\u2014
(155)
(4,999)
(5,683)
\nSelling and distribution expenses*
(832)
(50)
(90)
(1,069)
(2,041)
\nGeneral and administrative expenses
(267)
(16)
(23)
(276)
(582)
\nResearch and development expenses
(168)
(4)
(13)
(45)
(230)
\nOther results
23
\u2014
\u2014
44
67
\nTotal
(1,773)
(70)
(281)
(6,345)
(8,469)
\n*
Cost of sales and selling and distribution expenses for 2021 have been updated to
\nreflect changes in the financial reporting structure related to recent changes in the
\norganizational set-up and related governance structure, leading to a reclassification
\nbetween cost of sales (decrease) and selling and distribution expenses (increase)
\nof \u20ac49 million.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfProfitLossFromOperatingActivitiesExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f16552": {
"value": "Costs by nature 2022 Employee
Purchases and
\nIn \u20ac millions
bene\ufb01ts
Amortization
Depreciation
other costs
Total
\nCost of sales
(550)
(1)
(152)
(6,220)
(6,923)
\nSelling and distribution expenses
(965)
(57)
(93)
(1,193)
(2,308)
\nGeneral and administrative expenses
(263)
(24)
(24)
(338)
(649)
\nResearch and development expenses
(182)
(5)
(12)
(59)
(258)
\nOther results
\u2014
\u2014
\u2014
\u2014
\u2014
\nTotal
(1,960)
(87)
(281)
(7,810)
(10,138)
\nCosts by nature 2021
\nEmployee
Purchases and
\nIn \u20ac millions
bene\ufb01ts
Amortization
Depreciation
other costs
Total
\nCost of sales*
(529)
\u2014
(155)
(4,999)
(5,683)
\nSelling and distribution expenses*
(832)
(50)
(90)
(1,069)
(2,041)
\nGeneral and administrative expenses
(267)
(16)
(23)
(276)
(582)
\nResearch and development expenses
(168)
(4)
(13)
(45)
(230)
\nOther results
23
\u2014
\u2014
44
67
\nTotal
(1,773)
(70)
(281)
(6,345)
(8,469)
\n*
Cost of sales and selling and distribution expenses for 2021 have been updated to
\nreflect changes in the financial reporting structure related to recent changes in the
\norganizational set-up and related governance structure, leading to a reclassification
\nbetween cost of sales (decrease) and selling and distribution expenses (increase)
of \u20ac49 million.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfExpensesByNatureExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f16652": {
"value": "Note 7 EMPLOYEE BENEFITS Salaries, wages and other employee bene\ufb01ts in
\noperating income
\nIn \u20ac millions
2021
2022
\nSalaries and wages
(1,395)
(1,517)
\nPost-retirement cost
(115)
(146)
\nOther social charges
(263)
(297)
\nTotal
(1,773)
(1,960)
\nAverage number of employees of total AkzoNobel
\nAverage number during the year
2021
2022
\nDecorative Paints
12,500
13,800
\nPerformance Coatings
17,000
18,000
\nCorporate and other
3,200
3,300
\nTotal
32,700
35,100
\nAverage number of employees in the Netherlands
\nAverage number during the year
2021
2022
\nDecorative Paints
600
600
\nPerformance Coatings
1,100
1,100
\nCorporate and other
700
700
\nTotal
2,400
2,400
\nNumber of employees
\nAt year-end
2021
2022
\nDecorative Paints
12,500
14,000
\nPerformance Coatings
17,200
17,900
\nCorporate and other
3,100
3,300
\nTotal
32,800
35,200
\nThe average number of employees working outside the
\nNetherlands was 32,700 (2021: 30,300). In 2022, the
\nnumber of employees increased by 7% to 35,200 people
\n(year-end 2021: 32,800 people). Acquisitions in 2022
\nadded around 3,000 people, mainly relating to Grupo
\nOrbis employees.
\n114
AkzoNobel Report 2022
|
Financial statements
SHARE-BASED COMPENSATION
\nShare-based compensation relates to the equity-settled
\nperformance-related share plan and the restricted share
\nplans, as well as the share-matching plan. Charges recog-
\nnized in the 2022 statement of income for share-based
\ncompensation amounted to \u20ac16 million and are included in
\nsalaries and wages (2021: \u20ac18 million).
\nPerformance-related and restricted share plans
\nUnder the performance-related share plan and the
\nrestricted share plans, a number of conditional shares are
\ngranted to the members of the Board of Management,
\nmembers of the Executive Committee, executives and
\ncertain other employee categories each year. The number
\nof participants of the performance-related share plan
\nand the restricted share plans at year-end 2022 was 616
\n(2021: 479). The shares of the performance-related and
\nrestricted share plan series 2019-2021 have vested and
\nwere delivered to the participants in 2022.
\nThe performance targets for the conditional grant of
\nperformance-related shares of the 2020-2022 plan for
\nthe Board of Management and the Executive Committee
\nare linked for 50% to the relative TSR performance of the
\ncompany compared with the peer group and for 50% to
\nthe ROI performance of the company. The targets for the
\n2021-2023 and 2022-2024 performance-related share
\nFair value performance-related shares in \u20ac
\nNon-market
\nbased
\nOpening share
Market condi-
performance
Expected
Risk free
\nSeries
price per:
Fair Value
tion (TSR)
\n4
\nconditions
\n5
\nShare price
volatility
interest rate
\n2019 - 2021
January 2, 2019
61.09
52.57
69.60
69.60
20.12%
(0.04)%
\n2020 - 2022
April 21, 2020
\n1
\n53.42
42.95
63.88
63.88
21.42%
(0.33)%
\n2021 - 2023
April 22, 2021
\n2
\n103.20
NA
103.20
103.20
NA
NA
\n2022 - 2024
February 23, 2022
\nOctober 3, 2022
\n3
\n88.28
NA
88.28
88.28
NA
NA
\n2022 - 2024
57.70
NA
57.70
57.70
NA
NA
\n1
\nDate on which the Supervisory Board approved the use of the average share price calculation method to determine the number of shares granted.
\n2
\nDate of the AGM at which the new L
TI performance criteria for the Board of Management were approved.
\n3
\nDate on which Mr. Poux-Guillaume started working for AkzoNobel.
\n4
\n50% for the 2019-2021 and 2020-2022 grants, no longer applicable as from the 2021-2023 grant.
\n5
\n50% for the 2019-2021 and 2020-2022 grants, 100% as from the 2021-2023 grant.
\ngrants for the Board of Management and the Executive
\nCommittee are for 20% linked to revenue growth, for
\n40% to adjusted EBITDA, for 20% to ROI and for 20% to
\nperformance against Environmental, Social and Gover-
\nnance (ESG) KPIs. A two-year holding restriction applies.
\nThe plans for the executives and certain non-executive
\nemployee categories are a restricted share plan without
\nany performance conditions, whereby the conditional
\ngrant of shares will vest upon the condition that they
\nremain in service with the company during the three-year
\nvesting period. A one-year holding restriction applies for
\nthe executives.
\nThe conditional shares of the 2020-2022 performance
\nshare plan for the AkzoNobel participants vested for
\n0% (series 2019-2021: 58.33%), including extraordinary
\ndividend shares of 7.33% (series 2019-2021: 13.14%),
\nthe final vesting percentage amounted to 0% (series
\n2019-2021: 66.00%). The reason some shares still vest is
\nbecause AkzoNobel is legally bound to an agreement
\nwith a former member of the Executive Committee regard-
\ning the vesting of shares for this individual, as well
\nas a conditional share grant awarded to new Execu-
\ntive Committee Members at the time of their hiring, who
\nreceived these grants as buy-out from the contract at
\ntheir previous employer.
\nShare plans of AkzoNobel employees
\nEnd of
Balance at
Subject to
Subject
Balance at
\nPerformance/
Award
Vesting
holding
January 1,
Awarded
Vested in
Forfeited
Dividend in
performance
Unvested
to holding
December
\nShare plan
Vesting period
date
date
period
2022
in 2022
2022
in 2022
2022
condition
in 2022
period
31, 2022
\n2019 \u2013 2021 Restricted Share Plan E*
3 years
1/1/2019
1/1/2022
1/1/2023
157,455
\u2014
(157,455)
\u2014
\u2014
NA
\u2014
157,455
\u2014
\n2019 \u2013 2021 Performance Share Plan
3 years
1/1/2019
1/1/2022
1/1/2024
45,830
\u2014
(45,830)
\u2014
\u2014
\u2014
\u2014
45,830
\u2014
\n2020 \u2013 2022 Restricted Share Plan E*
3 years
1/1/2020
1/1/2023
1/1/2024
157,095
\u2014
(7,567)
(13,127)
\u2014
NA
136,401
136,401
136,401
\n2020 \u2013 2022 Performance Share Plan
3 years
1/1/2020
1/1/2023
1/1/2025
60,692
\u2014
\u2014
(51,286)
1,566
\u2014
10,972
10,972
10,972
\n2020 \u2013 2022 Restricted Share Plan NE*
3 years
4/1/2020
4/1/2023
NA
5,890
\u2014
\u2014
(210)
\u2014
NA
5,680
\u2014
5,680
\n2021 \u2013 2023 Restricted Share Plan E*
3 years
4/1/2021
4/1/2024
4/1/2025
176,947
509
(3,600)
(18,906)
\u2014
NA
154,950
154,950
154,950
\n2021 \u2013 2023 Performance Share Plan
3 years
1/1/2021
1/1/2024
1/1/2026
63,404
\u2014
\u2014
(3,206)
1,491
61,689
61,689
61,689
61,689
\n2021 \u2013 2023 Restricted Share Plan NE*
3 years
4/1/2021
4/1/2024
NA
27,140
\u2014
\u2014
(1,560)
\u2014
NA
25,580
\u2014
25,580
\n2022 \u2013 2024 Restricted Share Plan E*
3 years
4/1/2022
4/1/2025
4/1/2026
\u2014
189,797
(1,171)
(17,632)
\u2014
NA
170,994
170,994
170,994
\n2022 \u2013 2024 Performance Share Plan
3 years
1/1/2022
1/1/2025
1/1/2027
\u2014
84,820
\u2014
\u2014
2,188
87,008
87,008
87,008
87,008
\n2022 \u2013 2024 Restricted Share Plan NE*
3 years
4/1/2022
4/1/2025
NA
\u2014
49,247
\u2014
(2,065)
\u2014
NA
47,182
\u2014
47,182
\nTotal
694,453
324,373
(215,623)
(107,992)
5,245
148,697
700,456
825,299
700,456
\n* E means executive plan; NE means non-executive plan.
\n115
AkzoNobel Report 2022
|
Financial statements
The share price of a common AkzoNobel share at year
\nend 2022 amounted to \u20ac62.56 (2021: \u20ac96.50).
\nFair value of restricted and performance-
\nrelated shares
\nThe fair value of the restricted shares of the 2022-2024
\ngrant to executives, amounting to \u20ac82.47, is based on the
\nopening share price on February 23, 2022, of \u20ac88.28 and
\nthe expected dividend yield of 2.24%. The fair value of the
\nrestricted shares of the 2022-2024 grant to non-execu-
\ntives, amounting to \u20ac76.50, is based on the average of the
\nopening share prices during the grant period of April 26
\nuntil May 9, 2022, of \u20ac82.54 and the expected dividend
\nyield of 2.40%. The fair value of the performance-related
\n2022-2024 grant, based on the opening share price on
\nFebruary 23, 2022, amounts to \u20ac88.28. The fair value of
\nthe performance-related share grant to Mr. Poux-Guillau-
\nme of the 2022-2024 series, that was approved in the
\nEGM on September 6, 2022, based on the opening share
\nprice on October 3, 2022, amounts to \u20ac57.70. For the
\n2022-2024 and 2021-2023 grants of performance-related
\nshares all conditions are non-market based performance
\nconditions. The fair value of the 2021-2023 grant is
\nbased on the share price as per April 22, 2021, the date
\nof the AGM at which the new LTI performance criteria
\nfor the Board of Management were approved. The fair
\nvalue of the performance-related shares of the 2020-2022
\ngrant is for 50% based on a market condition (TSR) and
\nfor 50% based on a non-market based performance
\nconditions (ROI).
\nThe TSR part of the award is valued applying a Monte
\nCarlo simulation model and the other part is valued based
\non the share price at grant date. The parameters applied
\nfor the fair value calculations are: share price at grant date
\n(opening of first trading date from grant date), expected
\nvolatility (based on the share price development over the
\npast three years of AkzoNobel), and risk-free interest rate
\n(based on a Dutch zero-coupon government bond).
\nShare-matching plan
\nThe members of the Board of Management and the
\nmembers of the Executive Committee are eligible to
\nparticipate in the share-matching plan. Under certain
\nconditions, members who invest part of their short-term
\nincentive payment in AkzoNobel shares may have such
\nshares matched by the company one-on-one. During
\n2022, no potential matching shares were matched as the
\nmembers of the Board of Management and the members
\nof the Executive Committee were not eligible for matching
\nshares on the 2019 series. In 2022, the members of the
\nBoard of Management and the members of the Executive
\nCommittee invested part of their 2021 short-term incentive
\nin AkzoNobel shares, leading to 4,877 potential match-
\ning shares on December 31, 2022. For an overview of
\nthe matching shares outstanding for the members of the
\nBoard of Management per December 31, 2022, we refer
\nto the Remuneration report.
\nFair value of matching shares
\nThe fair value of the matching shares (\u20ac75.61) was based
\non the share price on the investment date (April 21, 2022:
\n\u20ac81.40), discounted for expected dividends over the
\nholding period (dividend yield: 2.43%).",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f16672": {
"value": "Average number of employees of total AkzoNobel Average number during the year
2021
2022
\nDecorative Paints
12,500
13,800
\nPerformance Coatings
17,000
18,000
\nCorporate and other
3,200
3,300
\nTotal
32,700
35,100
\nAverage number of employees in the Netherlands
\nAverage number during the year
2021
2022
\nDecorative Paints
600
600
\nPerformance Coatings
1,100
1,100
\nCorporate and other
700
700
\nTotal
2,400
2,400
\nNumber of employees
\nAt year-end
2021
2022
\nDecorative Paints
12,500
14,000
\nPerformance Coatings
17,200
17,900
\nCorporate and other
3,100
3,300
\nTotal
32,800
35,200
\nThe average number of employees working outside the
\nNetherlands was 32,700 (2021: 30,300). In 2022, the
\nnumber of employees increased by 7% to 35,200 people
\n(year-end 2021: 32,800 people). Acquisitions in 2022
\nadded around 3,000 people, mainly relating to Grupo
\nOrbis employees.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f16744": {
"value": "SHARE-BASED COMPENSATION Share-based compensation relates to the equity-settled
\nperformance-related share plan and the restricted share
\nplans, as well as the share-matching plan. Charges recog-
\nnized in the 2022 statement of income for share-based
\ncompensation amounted to \u20ac16 million and are included in
\nsalaries and wages (2021: \u20ac18 million).
\nPerformance-related and restricted share plans
\nUnder the performance-related share plan and the
\nrestricted share plans, a number of conditional shares are
\ngranted to the members of the Board of Management,
\nmembers of the Executive Committee, executives and
\ncertain other employee categories each year. The number
\nof participants of the performance-related share plan
\nand the restricted share plans at year-end 2022 was 616
\n(2021: 479). The shares of the performance-related and
\nrestricted share plan series 2019-2021 have vested and
\nwere delivered to the participants in 2022.
\nThe performance targets for the conditional grant of
\nperformance-related shares of the 2020-2022 plan for
\nthe Board of Management and the Executive Committee
\nare linked for 50% to the relative TSR performance of the
\ncompany compared with the peer group and for 50% to
\nthe ROI performance of the company. The targets for the
\n2021-2023 and 2022-2024 performance-related share
\nFair value performance-related shares in \u20ac
\nNon-market
\nbased
\nOpening share
Market condi-
performance
Expected
Risk free
\nSeries
price per:
Fair Value
tion (TSR)
\n4
\nconditions
\n5
\nShare price
volatility
interest rate
\n2019 - 2021
January 2, 2019
61.09
52.57
69.60
69.60
20.12%
(0.04)%
\n2020 - 2022
April 21, 2020
\n1
\n53.42
42.95
63.88
63.88
21.42%
(0.33)%
\n2021 - 2023
April 22, 2021
\n2
\n103.20
NA
103.20
103.20
NA
NA
\n2022 - 2024
February 23, 2022
\nOctober 3, 2022
\n3
\n88.28
NA
88.28
88.28
NA
NA
\n2022 - 2024
57.70
NA
57.70
57.70
NA
NA
\n1
\nDate on which the Supervisory Board approved the use of the average share price calculation method to determine the number of shares granted.
\n2
\nDate of the AGM at which the new L
TI performance criteria for the Board of Management were approved.
\n3
\nDate on which Mr. Poux-Guillaume started working for AkzoNobel.
\n4
\n50% for the 2019-2021 and 2020-2022 grants, no longer applicable as from the 2021-2023 grant.
\n5
\n50% for the 2019-2021 and 2020-2022 grants, 100% as from the 2021-2023 grant.
\ngrants for the Board of Management and the Executive
\nCommittee are for 20% linked to revenue growth, for
\n40% to adjusted EBITDA, for 20% to ROI and for 20% to
\nperformance against Environmental, Social and Gover-
\nnance (ESG) KPIs. A two-year holding restriction applies.
\nThe plans for the executives and certain non-executive
\nemployee categories are a restricted share plan without
\nany performance conditions, whereby the conditional
\ngrant of shares will vest upon the condition that they
\nremain in service with the company during the three-year
\nvesting period. A one-year holding restriction applies for
\nthe executives.
\nThe conditional shares of the 2020-2022 performance
\nshare plan for the AkzoNobel participants vested for
\n0% (series 2019-2021: 58.33%), including extraordinary
\ndividend shares of 7.33% (series 2019-2021: 13.14%),
\nthe final vesting percentage amounted to 0% (series
\n2019-2021: 66.00%). The reason some shares still vest is
\nbecause AkzoNobel is legally bound to an agreement
\nwith a former member of the Executive Committee regard-
\ning the vesting of shares for this individual, as well
\nas a conditional share grant awarded to new Execu-
\ntive Committee Members at the time of their hiring, who
\nreceived these grants as buy-out from the contract at
\ntheir previous employer.
\nShare plans of AkzoNobel employees
\nEnd of
Balance at
Subject to
Subject
Balance at
\nPerformance/
Award
Vesting
holding
January 1,
Awarded
Vested in
Forfeited
Dividend in
performance
Unvested
to holding
December
\nShare plan
Vesting period
date
date
period
2022
in 2022
2022
in 2022
2022
condition
in 2022
period
31, 2022
\n2019 \u2013 2021 Restricted Share Plan E*
3 years
1/1/2019
1/1/2022
1/1/2023
157,455
\u2014
(157,455)
\u2014
\u2014
NA
\u2014
157,455
\u2014
\n2019 \u2013 2021 Performance Share Plan
3 years
1/1/2019
1/1/2022
1/1/2024
45,830
\u2014
(45,830)
\u2014
\u2014
\u2014
\u2014
45,830
\u2014
\n2020 \u2013 2022 Restricted Share Plan E*
3 years
1/1/2020
1/1/2023
1/1/2024
157,095
\u2014
(7,567)
(13,127)
\u2014
NA
136,401
136,401
136,401
\n2020 \u2013 2022 Performance Share Plan
3 years
1/1/2020
1/1/2023
1/1/2025
60,692
\u2014
\u2014
(51,286)
1,566
\u2014
10,972
10,972
10,972
\n2020 \u2013 2022 Restricted Share Plan NE*
3 years
4/1/2020
4/1/2023
NA
5,890
\u2014
\u2014
(210)
\u2014
NA
5,680
\u2014
5,680
\n2021 \u2013 2023 Restricted Share Plan E*
3 years
4/1/2021
4/1/2024
4/1/2025
176,947
509
(3,600)
(18,906)
\u2014
NA
154,950
154,950
154,950
\n2021 \u2013 2023 Performance Share Plan
3 years
1/1/2021
1/1/2024
1/1/2026
63,404
\u2014
\u2014
(3,206)
1,491
61,689
61,689
61,689
61,689
\n2021 \u2013 2023 Restricted Share Plan NE*
3 years
4/1/2021
4/1/2024
NA
27,140
\u2014
\u2014
(1,560)
\u2014
NA
25,580
\u2014
25,580
\n2022 \u2013 2024 Restricted Share Plan E*
3 years
4/1/2022
4/1/2025
4/1/2026
\u2014
189,797
(1,171)
(17,632)
\u2014
NA
170,994
170,994
170,994
\n2022 \u2013 2024 Performance Share Plan
3 years
1/1/2022
1/1/2025
1/1/2027
\u2014
84,820
\u2014
\u2014
2,188
87,008
87,008
87,008
87,008
\n2022 \u2013 2024 Restricted Share Plan NE*
3 years
4/1/2022
4/1/2025
NA
\u2014
49,247
\u2014
(2,065)
\u2014
NA
47,182
\u2014
47,182
\nTotal
694,453
324,373
(215,623)
(107,992)
5,245
148,697
700,456
825,299
700,456
\n* E means executive plan; NE means non-executive plan.
\n115
AkzoNobel Report 2022
|
Financial statements
The share price of a common AkzoNobel share at year
\nend 2022 amounted to \u20ac62.56 (2021: \u20ac96.50).
\nFair value of restricted and performance-
\nrelated shares
\nThe fair value of the restricted shares of the 2022-2024
\ngrant to executives, amounting to \u20ac82.47, is based on the
\nopening share price on February 23, 2022, of \u20ac88.28 and
\nthe expected dividend yield of 2.24%. The fair value of the
\nrestricted shares of the 2022-2024 grant to non-execu-
\ntives, amounting to \u20ac76.50, is based on the average of the
\nopening share prices during the grant period of April 26
\nuntil May 9, 2022, of \u20ac82.54 and the expected dividend
\nyield of 2.40%. The fair value of the performance-related
\n2022-2024 grant, based on the opening share price on
\nFebruary 23, 2022, amounts to \u20ac88.28. The fair value of
\nthe performance-related share grant to Mr. Poux-Guillau-
\nme of the 2022-2024 series, that was approved in the
\nEGM on September 6, 2022, based on the opening share
\nprice on October 3, 2022, amounts to \u20ac57.70. For the
\n2022-2024 and 2021-2023 grants of performance-related
\nshares all conditions are non-market based performance
\nconditions. The fair value of the 2021-2023 grant is
\nbased on the share price as per April 22, 2021, the date
\nof the AGM at which the new LTI performance criteria
\nfor the Board of Management were approved. The fair
\nvalue of the performance-related shares of the 2020-2022
\ngrant is for 50% based on a market condition (TSR) and
\nfor 50% based on a non-market based performance
\nconditions (ROI).
\nThe TSR part of the award is valued applying a Monte
\nCarlo simulation model and the other part is valued based
\non the share price at grant date. The parameters applied
\nfor the fair value calculations are: share price at grant date
\n(opening of first trading date from grant date), expected
\nvolatility (based on the share price development over the
\npast three years of AkzoNobel), and risk-free interest rate
\n(based on a Dutch zero-coupon government bond).
\nShare-matching plan
\nThe members of the Board of Management and the
\nmembers of the Executive Committee are eligible to
\nparticipate in the share-matching plan. Under certain
\nconditions, members who invest part of their short-term
\nincentive payment in AkzoNobel shares may have such
\nshares matched by the company one-on-one. During
\n2022, no potential matching shares were matched as the
\nmembers of the Board of Management and the members
\nof the Executive Committee were not eligible for matching
\nshares on the 2019 series. In 2022, the members of the
\nBoard of Management and the members of the Executive
\nCommittee invested part of their 2021 short-term incentive
\nin AkzoNobel shares, leading to 4,877 potential match-
\ning shares on December 31, 2022. For an overview of
\nthe matching shares outstanding for the members of the
\nBoard of Management per December 31, 2022, we refer
\nto the Remuneration report.
\nFair value of matching shares
\nThe fair value of the matching shares (\u20ac75.61) was based
\non the share price on the investment date (April 21, 2022:
\n\u20ac81.40), discounted for expected dividends over the
\nholding period (dividend yield: 2.43%).",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17145": {
"value": "Note 8 FINANCING INCOME AND EXPENSES
\nFinancing income and expenses
\nIn \u20ac millions
2021
2022
\nFinancing income
12
19
\nFinancing expenses
(74)
(106)
\nNet interest on net debt
(62)
(87)
\nOther interest
\nFinancing income related to post-retire-
13
18
\nment benefits
\nInterest on provisions
3
17
\nExchange rate results
(21)
(85)
\nOther items
28
13
\nNet other \ufb01nancing credit/(charges)
23
(37)
\nTotal \ufb01nancing income and expenses
(39)
(124)
\nNet financing expenses for the year were \u20ac124 million
\n(2021: \u20ac39 million). Significant variances are:
\n\u2022
Net interest on net debt increased by \u20ac25 million to \u20ac87
\nmillion (2021: \u20ac62 million) mainly as a result of higher
\ninterest cost on debt from bonds issuance, increased
\nshort-term debt and financing related to the Grupo
\nOrbis acquisition
\n\u2022
Interest income on provisions increased by \u20ac14 million
\nto \u20ac17 million (2021: \u20ac3 million) due to the impact from
\ndiscounting at higher discount rates
\n\u2022
Exchange rate results were \u20ac85 million negative (2021:
\n\u20ac21 million negative), and include \u20ac20 million expenses
\nfrom Argentina and T\u00fcrkiye hyperinflation accounting
\n\u2022
Other items in 2022 include \u20ac10 million interest income
\nfrom the UK ACT case (refer to Note 4 for further details
\non the UK ACT case). In 2021, an interest income
\nof \u20ac28 million related to the Brazil ICMS case was
\nincluded.
\nThe average interest rate used for capitalized interest was
\n1.7% (2021: 1.9%). Capitalized interest was negligible in
\nboth 2022 and 2021. The average interest rate on total
\ndebt was 2.1% (2021: 2.3%).
\nAccounting impact hyperin\ufb02ation accounting
\nWe have applied IAS 29 \u201cFinancial Reporting in Hyper-
\ninflationary Economies\u201d for T\u00fcrkiye as from January 1,
\n2022. For Argentina, hyperinflation accounting was already
\napplied as from January 1, 2018. In addition, and in line
\nwith IAS 21 \u201cThe Effect of Changes in Foreign Exchange
\nRates\u201d, end of month rates are used to translate both the
\nbalance sheet and the statement of income into euros.
\nFor T\u00fcrkiye, the revaluation effect on the non-monetary
\nassets at January 1, 2022, was \u20ac16 million positive (after
\ntaxes), recorded as a restatement to opening sharehold-
\ners\u2019 equity. In addition, the opening balance of intangible
\nassets has been restated by \u20ac1 million (refer to Note 11)
\nand the opening balance of property, plant and equip-
\nment has been restated by \u20ac15 million (refer to Note 12).
\nRefer to Note 9 Income tax for the related opening balance
\nimpact on deferred taxes.
\nThe application of hyperinflation accounting and the use
\nof end of month rates to translate the statement of income
\ninto euros resulted in an \u20ac5 million positive impact on
\nrevenues, an \u20ac46 million negative impact on operating
\nincome and an \u20ac63 million negative impact on net income
\nfor the year.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17146": {
"value": "Note 8 FINANCING INCOME AND EXPENSES
\nFinancing income and expenses
\nIn \u20ac millions
2021
2022
\nFinancing income
12
19
\nFinancing expenses
(74)
(106)
\nNet interest on net debt
(62)
(87)
\nOther interest
\nFinancing income related to post-retire-
13
18
\nment benefits
\nInterest on provisions
3
17
\nExchange rate results
(21)
(85)
\nOther items
28
13
\nNet other \ufb01nancing credit/(charges)
23
(37)
\nTotal \ufb01nancing income and expenses
(39)
(124)
\nNet financing expenses for the year were \u20ac124 million
\n(2021: \u20ac39 million). Significant variances are:
\n\u2022
Net interest on net debt increased by \u20ac25 million to \u20ac87
\nmillion (2021: \u20ac62 million) mainly as a result of higher
\ninterest cost on debt from bonds issuance, increased
\nshort-term debt and financing related to the Grupo
\nOrbis acquisition
\n\u2022
Interest income on provisions increased by \u20ac14 million
\nto \u20ac17 million (2021: \u20ac3 million) due to the impact from
\ndiscounting at higher discount rates
\n\u2022
Exchange rate results were \u20ac85 million negative (2021:
\n\u20ac21 million negative), and include \u20ac20 million expenses
\nfrom Argentina and T\u00fcrkiye hyperinflation accounting
\n\u2022
Other items in 2022 include \u20ac10 million interest income
\nfrom the UK ACT case (refer to Note 4 for further details
\non the UK ACT case). In 2021, an interest income
\nof \u20ac28 million related to the Brazil ICMS case was
\nincluded.
\nThe average interest rate used for capitalized interest was
\n1.7% (2021: 1.9%). Capitalized interest was negligible in
\nboth 2022 and 2021. The average interest rate on total
\ndebt was 2.1% (2021: 2.3%).
\nAccounting impact hyperin\ufb02ation accounting
\nWe have applied IAS 29 \u201cFinancial Reporting in Hyper-
\ninflationary Economies\u201d for T\u00fcrkiye as from January 1,
\n2022. For Argentina, hyperinflation accounting was already
\napplied as from January 1, 2018. In addition, and in line
\nwith IAS 21 \u201cThe Effect of Changes in Foreign Exchange
\nRates\u201d, end of month rates are used to translate both the
\nbalance sheet and the statement of income into euros.
\nFor T\u00fcrkiye, the revaluation effect on the non-monetary
\nassets at January 1, 2022, was \u20ac16 million positive (after
\ntaxes), recorded as a restatement to opening sharehold-
\ners\u2019 equity. In addition, the opening balance of intangible
\nassets has been restated by \u20ac1 million (refer to Note 11)
\nand the opening balance of property, plant and equip-
\nment has been restated by \u20ac15 million (refer to Note 12).
\nRefer to Note 9 Income tax for the related opening balance
\nimpact on deferred taxes.
\nThe application of hyperinflation accounting and the use
\nof end of month rates to translate the statement of income
\ninto euros resulted in an \u20ac5 million positive impact on
\nrevenues, an \u20ac46 million negative impact on operating
\nincome and an \u20ac63 million negative impact on net income
\nfor the year.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceCostExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17147": {
"value": "Note 8 FINANCING INCOME AND EXPENSES
\nFinancing income and expenses
\nIn \u20ac millions
2021
2022
\nFinancing income
12
19
\nFinancing expenses
(74)
(106)
\nNet interest on net debt
(62)
(87)
\nOther interest
\nFinancing income related to post-retire-
13
18
\nment benefits
\nInterest on provisions
3
17
\nExchange rate results
(21)
(85)
\nOther items
28
13
\nNet other \ufb01nancing credit/(charges)
23
(37)
\nTotal \ufb01nancing income and expenses
(39)
(124)
\nNet financing expenses for the year were \u20ac124 million
\n(2021: \u20ac39 million). Significant variances are:
\n\u2022
Net interest on net debt increased by \u20ac25 million to \u20ac87
\nmillion (2021: \u20ac62 million) mainly as a result of higher
\ninterest cost on debt from bonds issuance, increased
\nshort-term debt and financing related to the Grupo
\nOrbis acquisition
\n\u2022
Interest income on provisions increased by \u20ac14 million
\nto \u20ac17 million (2021: \u20ac3 million) due to the impact from
\ndiscounting at higher discount rates
\n\u2022
Exchange rate results were \u20ac85 million negative (2021:
\n\u20ac21 million negative), and include \u20ac20 million expenses
\nfrom Argentina and T\u00fcrkiye hyperinflation accounting
\n\u2022
Other items in 2022 include \u20ac10 million interest income
\nfrom the UK ACT case (refer to Note 4 for further details
\non the UK ACT case). In 2021, an interest income
\nof \u20ac28 million related to the Brazil ICMS case was
\nincluded.
\nThe average interest rate used for capitalized interest was
\n1.7% (2021: 1.9%). Capitalized interest was negligible in
\nboth 2022 and 2021. The average interest rate on total
\ndebt was 2.1% (2021: 2.3%).
\nAccounting impact hyperin\ufb02ation accounting
\nWe have applied IAS 29 \u201cFinancial Reporting in Hyper-
\ninflationary Economies\u201d for T\u00fcrkiye as from January 1,
\n2022. For Argentina, hyperinflation accounting was already
\napplied as from January 1, 2018. In addition, and in line
\nwith IAS 21 \u201cThe Effect of Changes in Foreign Exchange
\nRates\u201d, end of month rates are used to translate both the
\nbalance sheet and the statement of income into euros.
\nFor T\u00fcrkiye, the revaluation effect on the non-monetary
\nassets at January 1, 2022, was \u20ac16 million positive (after
\ntaxes), recorded as a restatement to opening sharehold-
\ners\u2019 equity. In addition, the opening balance of intangible
\nassets has been restated by \u20ac1 million (refer to Note 11)
\nand the opening balance of property, plant and equip-
\nment has been restated by \u20ac15 million (refer to Note 12).
\nRefer to Note 9 Income tax for the related opening balance
\nimpact on deferred taxes.
\nThe application of hyperinflation accounting and the use
\nof end of month rates to translate the statement of income
\ninto euros resulted in an \u20ac5 million positive impact on
\nrevenues, an \u20ac46 million negative impact on operating
\nincome and an \u20ac63 million negative impact on net income
\nfor the year.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17242": {
"value": "Note 9 INCOME TAX Pre-tax income from continuing operations for the year
\namounted to a profit of \u20ac602 million (2021: \u20ac1,105 million).
\nThe net tax charges related to continuing operations are
\nincluded in the statement of income as shown in this Note
\nand amount to \u20ac214 million (2021: \u20ac246 million), leading to
\nan effective tax rate of 35.5% (2021: 22.3%).
\n116
AkzoNobel Report 2022
|
Financial statements
Classi\ufb01cation of current and deferred tax result
\nIn \u20ac millions
2021
2022
\nCurrent tax expense for
\nThe year
(205)
(198)
\nAdjustments for previous years
36
(24)
\nTotal current tax expense
(169)
(222)
\nDeferred tax expense for
\nOrigination and r
eversal of\u00a0temporary
(75)
21
\ndifferences and tax losses
\n(Derecognition)/recognition of deferred
18
(6)
\ntax assets
\nChanges in tax rates
(20)
(7)
\nTotal deferred tax expense
(77)
8
\nTotal
(246)
(214)
\nClassi\ufb01cation of current and deferred tax result
\nA breakdown into current and deferred tax expenses
\nand a split of the main categories is provided in the table
\nabove. For comparative reasons, this table presents the
\nincome tax expense excluding the impact from discontin-
\nued operations. The total deferred tax in the statement of
\nincome including discontinued operations was a credit of
\n\u20ac8 million (2021: \u20ac77 million charge). The total tax charge
\nincluding discontinued operations was \u20ac211 million (2021:
\n\u20ac248 million).
\nAdjustments for prior years in 2022 is mainly related to a
\nnet tax charge of \u20ac13 million for the UK Advanced Corpo-
\nration Tax (ACT) case, which is further described in Note 4
\non Alternative Performance Measures due to its identified
\nnatur
e.\u00a0Origination and r
eversal of temporary differences
\nand tax losses is driven, amongst others, by timing differ-
\nences between recognition and payments for provisions,
\ntiming differences on depreciation and amortization for tax
\npurposes versus the consolidated financial statements,
\nand tax loss carryforwards utilized against profits of the
\nyear or new tax losses incurred. Changes in tax rates
\nin 2022 mainly relate to the changes in the UK tax rate
\n(2021: Dutch and UK tax rates).
\nEffective tax rate reconciliation
\nIn 2022, the effective income tax rate based on the state-
\nment of income is 35.5% (2021: 22.3%). A reconciliation
\nbetween the effective tax rate and the weighted average
\nstatutory income tax rate is provided in the next table.
\nFor comparative reasons, this table presents the effective
\nEffective tax rate reconciliation
\nin\u00a0%
2021
2022
\nCorporate tax rate in the Netherlands
25.0
25.8
\nEffect of tax rates in other countries
0.2
(2.2)
\nWeighted average statutory income tax rate
25.2
23.6
\nNon-taxable income
(3.0)
(2.8)
\nNon-deductible expenses
2.3
6.1
\n(Rerecognition)/derecognition of deferred tax
(1.6)
1.0
\nassets
\nNon-refundable withholding taxes
0.9
2.4
\nAdjustments for prior years
(3.3)
4.0
\nDeferred tax adjustment due to changes in tax
1.8
1.2
\nrates
\nEffective tax rate
22.3
35.5
\nconsolidated tax rate excluding the impact from discon-
\ntinued operations. Including these results, the effective
\nconsolidated tax rate is 35.8% (2021: 22.3%).
\nNon-taxable income is mainly related to R&D credits and
\nthe tax exemption for investments (2021: interest on tax
\ncredits in Brazil, the Innovation box in the Netherlands,
\nR&D credits and the tax exemption for investments).
\nNon-deductible expenses are mainly related to the
\neffects of Argentina and T\u00fcrkiye hyperinflation accounting
\nand certain non-deductible costs in various countries
\n(2021: non-deductible costs and the effects of Argentina
\nhyperinflation accounting).
\nOrigination of deferred tax assets and liabilities 2022
\nRecognized in
\nBalance at
equity/Other
Balance at
\nJanuary 1,
Changes in
Recognized in comprehensive
December 31,
\nIn \u20ac millions
2022*
exchange rate
income
income
Acquisitions
2022
\nIntangible assets
(461)
23
\u2014
\u2014
(83)
(521)
\nProperty, plant and equipment*
75
2
(3)
\u2014
(17)
57
\nFinancial non-current assets
(406)
20
(25)
139
\u2014
(272)
\nPost-retirement benefit provisions
138
3
(12)
(53)
\u2014
76
\nOther provisions
28
\u2014
(3)
\u2014
\u2014
25
\nOther items
96
(2)
36
\u2014
(4)
126
\nTax credits
204
(1)
3
\u2014
\u2014
206
\nTax loss carryforwards
237
(9)
12
\u2014
\u2014
240
\nDeferred tax assets (liabilities)
(89)
36
8
86
(104)
(63)
\n*
Property, plant and equipment includes an opening balance adjustment of \u20ac3 million and other items of \u20ac1 million related to the
\napplication of IAS 29 \u201cFinancial Reporting in Hyperinflationary Economies\u201d in T\u00fcrkiye. Refer to Note 8 for further details.
\nOrigination of deferred tax assets and liabilities 2021
\nRecognized in
\nequity/Other
Balance at
\nBalance at
Changes in
Recognized in comprehensive
December 31,
\nIn \u20ac millions
January 1, 2021
exchange rate
income
income
Acquisitions
2021
\nIntangible assets
(417)
(23)
(17)
\u2014
(4)
(461)
\nProperty, plant and equipment
60
6
20
\u2014
(8)
78
\nFinancial non-current assets
(267)
(24)
(138)
23
\u2014
(406)
\nPost-retirement benefit provisions
156
4
(2)
(20)
\u2014
138
\nOther provisions
29
2
(3)
\u2014
\u2014
28
\nOther items
68
3
25
(2)
3
97
\nTax credits
184
\u2014
20
\u2014
\u2014
204
\nTax loss carryforwards
217
12
18
(12)
2
237
\nDeferred tax assets (liabilities)
30
(20)
(77)
(11)
(7)
(85)
\n117
AkzoNobel Report 2022
|
Financial statements
Deferred tax assets and liabilities per balance sheet item
\nDecember 31, 2021
December 31, 2022
\nIn \u20ac millions
Net balance
Assets
Liabilities
Net balance
Assets
Liabilities
\nIntangible assets
(461)
12
473
(521)
10
531
\nProperty, plant and equipment
78
123
45
56
124
68
\nFinancial non-current assets
(406)
25
431
(271)
6
277
\nPost-retirement benefit provisions
138
141
3
76
79
3
\nOther provisions
28
38
10
25
34
9
\nOther items
97
113
16
125
143
18
\nTax credits
204
204
\u2014
207
207
\u2014
\nTax loss carryforwards
237
237
\u2014
240
240
\u2014
\nTax assets/liabilities
(85)
893
978
(63)
843
906
\nSet-off of tax
\u2014
(411)
(411)
\u2014
(345)
(345)
\nNet deferred tax positions
\nExpiration year of loss carryforwards 2022
\n(85)
482
567
(63)
498
561
\nIn \u20ac millions
2023
2024
2025
2026
2027
Later
Unlimited
Total
\nDeferred
\ntax
\nTotal loss carryforwards
\u2014
1
1
2
13
56
3,014
3,087
779
\nLoss carryforwards not recognized in
\ndeferred tax assets
\n\u2014
(1)
(1)
\u2014
\u2014
(10)
(2,120)
(2,132)
(539)
\nTotal loss carryforwards recognized
\nExpiration year of loss carryforwards 2021
\n\u2014
\u2014
\u2014
2
13
46
894
955
240
\nIn \u20ac millions
2022
2023
2024
2025
2026
Later
Unlimited
Total
\nDeferred
\ntax
\nTotal loss carryforwards
1
\u2014
1
\u2014
3
17
3,131
3,153
795
\nLoss carryforwards not recognized in
\ndeferred tax assets
\n(1)
\u2014
(1)
\u2014
\u2014
(9)
(2,204)
(2,215)
(558)
\nTotal loss carryforwards recognized
\u2014
\u2014
\u2014
\u2014
3
8
927
938
237
\nThe impact of non-refundable withholding tax on the
\ntax rate is dependent on our relative share in the profit
\nof subsidiaries in countries that levy withholding tax on
\ndividends and on the timing of the remittance of such
\ndividends. Based on the Dutch tax system there is a
\nlimited credit for such taxes.
\nAdjustments for prior years in 2022 is mainly related to the
\nUK Advanced Corporation Tax (ACT) case, which is further
\ndescribed in Note 4 on Alternative Performance Measures
\ndue to its identified nature.
\nChanges in tax rates in 2022 mainly relate to the changes
\nin the UK tax rate (2021: Dutch and UK tax rates).
\nOrigination of deferred tax assets and liabilities
\nDeferred tax assets and liabilities originate from temporary
\ndifferences in various balance sheet line items, as well as
\nfrom tax credits and tax loss carryforwards. The tables
\non the previous page show the origination of deferred tax
\nassets and liabilities, and the movements thereof, for the
\nfinancial years 2022 and 2021.
\nReconciliation deferred tax assets and liabilities to
\nthe balance sheet
\nThe table on the left provides a reconciliation of the total
\ndeferred tax amounts for each of the originating items to
\nthe deferred tax asset and liability positions as included in
\nthe balance sheet.
\nDeferred tax assets recoverability assessment
\nIn assessing the recognition of deferred tax assets,
\nmanagement considers whether it is probable that some
\nportion or all of the deferred tax assets will be realized. The
\nultimate realization of the deferred tax assets is dependent
\nupon the generation of future taxable income against
\nwhich the deductible temporary differences, unused tax
\nlosses and unused tax credits can be utilized. Manage-
\nment considers the scheduled reversal of deferred tax
\nliabilities, projected future taxable income, and tax planning
\nstrategies in making this assessment. The amount of
\ndeferred tax assets considered realizable could change
\nif future estimates of projected taxable income during
\nthe carryforward period are revised. The majority of the
\namount of the non-current portion of deferred and
\ncurrent taxes will be recovered or settled after more than
\n12 months.
\nIn 2022 and 2021, deferred tax asset recoverability has
\nbeen assessed using taxable profit forecasts. In 2022,
\nthese assessments did not result in a significant net
\nderecognition or re-recognition of deferred tax assets
\n(2021: net re-recognition of \u20ac18 million).
\nBoth in 2022 and 2021, deferred tax assets not recog-
\nnized relate to tax loss carryforwards. The losses in the
\ntables on tax losses carried forward are gross amounts,
\nwith the tax impact included in the last column of the table.
\nFrom the total amount of recognized net deferred tax
\nassets, \u20ac206 million (2021: \u20ac151 million) is related to
\nentities that have suffered a loss in either the current or
\nthe previous year and where utilization is dependent on
\nfuture taxable profit in excess of the profit arising from the
\nreversal of existing taxable temporary differences. This
\nassessment is based on management\u2019s long-term projec-
\ntions and tax planning strategies.
\nA deferred tax liability is recognized for taxable temporary
\ndifferences related to investments in subsidiaries, branches
\n118
AkzoNobel Report 2022
|
Financial statements
and associates and interests in joint arrangements, to
\nthe extent that it is probable that these will reverse in the
\nforeseeable future. The expected net tax impact of the
\nremaining differences for which no deferred tax liabilities
\nhave been recognized is \u20ac55 million (2021: \u20ac31 million).
\nIncome tax recognized in equity
\nThe following table shows income tax items recognized in
\nequity by category.
\nIncome tax recognized in equity
\nIn \u20ac millions
2021
2022
\nCurrency exchange differences on inter-
1
2
\ncompany loans of a permanent nature
\nShare-based compensation
(2)
(2)
\nShare buyback
\u2014
2
\nPost-retirement benefits
3
86
\nChanges in tax rates
(11)
\u2014
\nIAS 29 opening balance adjustment
\u2014
(4)
\nTotal
(9)
84
\nCurrent tax
2
2
\nDeferred tax
(11)
82
\nTotal
(9)
84
\nImpact OECD Pillar Two Framework
\nAkzoNobel is closely monitoring progress on the OECD
\nPillar Two global minimum tax rate legislative framework in
\neach jurisdiction where the group has operations. At year-
\nend 2022, the group does not have sufficient information
\nto determine the potential quantitative impact. The recently
\nannounced safe harbor rules are likely to limit the financial
\nimpact in particular during the 3-year transitional period
\nduring which these safe harbor rules apply.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17243": {
"value": "Note 9 INCOME TAX Pre-tax income from continuing operations for the year
\namounted to a profit of \u20ac602 million (2021: \u20ac1,105 million).
\nThe net tax charges related to continuing operations are
\nincluded in the statement of income as shown in this Note
\nand amount to \u20ac214 million (2021: \u20ac246 million), leading to
\nan effective tax rate of 35.5% (2021: 22.3%).
\n116
AkzoNobel Report 2022
|
Financial statements
Classi\ufb01cation of current and deferred tax result
\nIn \u20ac millions
2021
2022
\nCurrent tax expense for
\nThe year
(205)
(198)
\nAdjustments for previous years
36
(24)
\nTotal current tax expense
(169)
(222)
\nDeferred tax expense for
\nOrigination and r
eversal of\u00a0temporary
(75)
21
\ndifferences and tax losses
\n(Derecognition)/recognition of deferred
18
(6)
\ntax assets
\nChanges in tax rates
(20)
(7)
\nTotal deferred tax expense
(77)
8
\nTotal
(246)
(214)
\nClassi\ufb01cation of current and deferred tax result
\nA breakdown into current and deferred tax expenses
\nand a split of the main categories is provided in the table
\nabove. For comparative reasons, this table presents the
\nincome tax expense excluding the impact from discontin-
\nued operations. The total deferred tax in the statement of
\nincome including discontinued operations was a credit of
\n\u20ac8 million (2021: \u20ac77 million charge). The total tax charge
\nincluding discontinued operations was \u20ac211 million (2021:
\n\u20ac248 million).
\nAdjustments for prior years in 2022 is mainly related to a
\nnet tax charge of \u20ac13 million for the UK Advanced Corpo-
\nration Tax (ACT) case, which is further described in Note 4
\non Alternative Performance Measures due to its identified
\nnatur
e.\u00a0Origination and r
eversal of temporary differences
\nand tax losses is driven, amongst others, by timing differ-
\nences between recognition and payments for provisions,
\ntiming differences on depreciation and amortization for tax
\npurposes versus the consolidated financial statements,
\nand tax loss carryforwards utilized against profits of the
\nyear or new tax losses incurred. Changes in tax rates
\nin 2022 mainly relate to the changes in the UK tax rate
\n(2021: Dutch and UK tax rates).
\nEffective tax rate reconciliation
\nIn 2022, the effective income tax rate based on the state-
\nment of income is 35.5% (2021: 22.3%). A reconciliation
\nbetween the effective tax rate and the weighted average
\nstatutory income tax rate is provided in the next table.
\nFor comparative reasons, this table presents the effective
\nEffective tax rate reconciliation
\nin\u00a0%
2021
2022
\nCorporate tax rate in the Netherlands
25.0
25.8
\nEffect of tax rates in other countries
0.2
(2.2)
\nWeighted average statutory income tax rate
25.2
23.6
\nNon-taxable income
(3.0)
(2.8)
\nNon-deductible expenses
2.3
6.1
\n(Rerecognition)/derecognition of deferred tax
(1.6)
1.0
\nassets
\nNon-refundable withholding taxes
0.9
2.4
\nAdjustments for prior years
(3.3)
4.0
\nDeferred tax adjustment due to changes in tax
1.8
1.2
\nrates
\nEffective tax rate
22.3
35.5
\nconsolidated tax rate excluding the impact from discon-
\ntinued operations. Including these results, the effective
\nconsolidated tax rate is 35.8% (2021: 22.3%).
\nNon-taxable income is mainly related to R&D credits and
\nthe tax exemption for investments (2021: interest on tax
\ncredits in Brazil, the Innovation box in the Netherlands,
\nR&D credits and the tax exemption for investments).
\nNon-deductible expenses are mainly related to the
\neffects of Argentina and T\u00fcrkiye hyperinflation accounting
\nand certain non-deductible costs in various countries
\n(2021: non-deductible costs and the effects of Argentina
\nhyperinflation accounting).
\nOrigination of deferred tax assets and liabilities 2022
\nRecognized in
\nBalance at
equity/Other
Balance at
\nJanuary 1,
Changes in
Recognized in comprehensive
December 31,
\nIn \u20ac millions
2022*
exchange rate
income
income
Acquisitions
2022
\nIntangible assets
(461)
23
\u2014
\u2014
(83)
(521)
\nProperty, plant and equipment*
75
2
(3)
\u2014
(17)
57
\nFinancial non-current assets
(406)
20
(25)
139
\u2014
(272)
\nPost-retirement benefit provisions
138
3
(12)
(53)
\u2014
76
\nOther provisions
28
\u2014
(3)
\u2014
\u2014
25
\nOther items
96
(2)
36
\u2014
(4)
126
\nTax credits
204
(1)
3
\u2014
\u2014
206
\nTax loss carryforwards
237
(9)
12
\u2014
\u2014
240
\nDeferred tax assets (liabilities)
(89)
36
8
86
(104)
(63)
\n*
Property, plant and equipment includes an opening balance adjustment of \u20ac3 million and other items of \u20ac1 million related to the
\napplication of IAS 29 \u201cFinancial Reporting in Hyperinflationary Economies\u201d in T\u00fcrkiye. Refer to Note 8 for further details.
\nOrigination of deferred tax assets and liabilities 2021
\nRecognized in
\nequity/Other
Balance at
\nBalance at
Changes in
Recognized in comprehensive
December 31,
\nIn \u20ac millions
January 1, 2021
exchange rate
income
income
Acquisitions
2021
\nIntangible assets
(417)
(23)
(17)
\u2014
(4)
(461)
\nProperty, plant and equipment
60
6
20
\u2014
(8)
78
\nFinancial non-current assets
(267)
(24)
(138)
23
\u2014
(406)
\nPost-retirement benefit provisions
156
4
(2)
(20)
\u2014
138
\nOther provisions
29
2
(3)
\u2014
\u2014
28
\nOther items
68
3
25
(2)
3
97
\nTax credits
184
\u2014
20
\u2014
\u2014
204
\nTax loss carryforwards
217
12
18
(12)
2
237
\nDeferred tax assets (liabilities)
30
(20)
(77)
(11)
(7)
(85)
\n117
AkzoNobel Report 2022
|
Financial statements
Deferred tax assets and liabilities per balance sheet item
\nDecember 31, 2021
December 31, 2022
\nIn \u20ac millions
Net balance
Assets
Liabilities
Net balance
Assets
Liabilities
\nIntangible assets
(461)
12
473
(521)
10
531
\nProperty, plant and equipment
78
123
45
56
124
68
\nFinancial non-current assets
(406)
25
431
(271)
6
277
\nPost-retirement benefit provisions
138
141
3
76
79
3
\nOther provisions
28
38
10
25
34
9
\nOther items
97
113
16
125
143
18
\nTax credits
204
204
\u2014
207
207
\u2014
\nTax loss carryforwards
237
237
\u2014
240
240
\u2014
\nTax assets/liabilities
(85)
893
978
(63)
843
906
\nSet-off of tax
\u2014
(411)
(411)
\u2014
(345)
(345)
\nNet deferred tax positions
\nExpiration year of loss carryforwards 2022
\n(85)
482
567
(63)
498
561
\nIn \u20ac millions
2023
2024
2025
2026
2027
Later
Unlimited
Total
\nDeferred
\ntax
\nTotal loss carryforwards
\u2014
1
1
2
13
56
3,014
3,087
779
\nLoss carryforwards not recognized in
\ndeferred tax assets
\n\u2014
(1)
(1)
\u2014
\u2014
(10)
(2,120)
(2,132)
(539)
\nTotal loss carryforwards recognized
\nExpiration year of loss carryforwards 2021
\n\u2014
\u2014
\u2014
2
13
46
894
955
240
\nIn \u20ac millions
2022
2023
2024
2025
2026
Later
Unlimited
Total
\nDeferred
\ntax
\nTotal loss carryforwards
1
\u2014
1
\u2014
3
17
3,131
3,153
795
\nLoss carryforwards not recognized in
\ndeferred tax assets
\n(1)
\u2014
(1)
\u2014
\u2014
(9)
(2,204)
(2,215)
(558)
\nTotal loss carryforwards recognized
\u2014
\u2014
\u2014
\u2014
3
8
927
938
237
\nThe impact of non-refundable withholding tax on the
\ntax rate is dependent on our relative share in the profit
\nof subsidiaries in countries that levy withholding tax on
\ndividends and on the timing of the remittance of such
\ndividends. Based on the Dutch tax system there is a
\nlimited credit for such taxes.
\nAdjustments for prior years in 2022 is mainly related to the
\nUK Advanced Corporation Tax (ACT) case, which is further
\ndescribed in Note 4 on Alternative Performance Measures
\ndue to its identified nature.
\nChanges in tax rates in 2022 mainly relate to the changes
\nin the UK tax rate (2021: Dutch and UK tax rates).
\nOrigination of deferred tax assets and liabilities
\nDeferred tax assets and liabilities originate from temporary
\ndifferences in various balance sheet line items, as well as
\nfrom tax credits and tax loss carryforwards. The tables
\non the previous page show the origination of deferred tax
\nassets and liabilities, and the movements thereof, for the
\nfinancial years 2022 and 2021.
\nReconciliation deferred tax assets and liabilities to
\nthe balance sheet
\nThe table on the left provides a reconciliation of the total
\ndeferred tax amounts for each of the originating items to
\nthe deferred tax asset and liability positions as included in
\nthe balance sheet.
\nDeferred tax assets recoverability assessment
\nIn assessing the recognition of deferred tax assets,
\nmanagement considers whether it is probable that some
\nportion or all of the deferred tax assets will be realized. The
\nultimate realization of the deferred tax assets is dependent
\nupon the generation of future taxable income against
\nwhich the deductible temporary differences, unused tax
\nlosses and unused tax credits can be utilized. Manage-
\nment considers the scheduled reversal of deferred tax
\nliabilities, projected future taxable income, and tax planning
\nstrategies in making this assessment. The amount of
\ndeferred tax assets considered realizable could change
\nif future estimates of projected taxable income during
\nthe carryforward period are revised. The majority of the
\namount of the non-current portion of deferred and
\ncurrent taxes will be recovered or settled after more than
\n12 months.
\nIn 2022 and 2021, deferred tax asset recoverability has
\nbeen assessed using taxable profit forecasts. In 2022,
\nthese assessments did not result in a significant net
\nderecognition or re-recognition of deferred tax assets
\n(2021: net re-recognition of \u20ac18 million).
\nBoth in 2022 and 2021, deferred tax assets not recog-
\nnized relate to tax loss carryforwards. The losses in the
\ntables on tax losses carried forward are gross amounts,
\nwith the tax impact included in the last column of the table.
\nFrom the total amount of recognized net deferred tax
\nassets, \u20ac206 million (2021: \u20ac151 million) is related to
\nentities that have suffered a loss in either the current or
\nthe previous year and where utilization is dependent on
\nfuture taxable profit in excess of the profit arising from the
\nreversal of existing taxable temporary differences. This
\nassessment is based on management\u2019s long-term projec-
\ntions and tax planning strategies.
\nA deferred tax liability is recognized for taxable temporary
\ndifferences related to investments in subsidiaries, branches
\n118
AkzoNobel Report 2022
|
Financial statements
and associates and interests in joint arrangements, to
\nthe extent that it is probable that these will reverse in the
\nforeseeable future. The expected net tax impact of the
\nremaining differences for which no deferred tax liabilities
\nhave been recognized is \u20ac55 million (2021: \u20ac31 million).
\nIncome tax recognized in equity
\nThe following table shows income tax items recognized in
\nequity by category.
\nIncome tax recognized in equity
\nIn \u20ac millions
2021
2022
\nCurrency exchange differences on inter-
1
2
\ncompany loans of a permanent nature
\nShare-based compensation
(2)
(2)
\nShare buyback
\u2014
2
\nPost-retirement benefits
3
86
\nChanges in tax rates
(11)
\u2014
\nIAS 29 opening balance adjustment
\u2014
(4)
\nTotal
(9)
84
\nCurrent tax
2
2
\nDeferred tax
(11)
82
\nTotal
(9)
84
\nImpact OECD Pillar Two Framework
\nAkzoNobel is closely monitoring progress on the OECD
\nPillar Two global minimum tax rate legislative framework in
\neach jurisdiction where the group has operations. At year-
\nend 2022, the group does not have sufficient information
\nto determine the potential quantitative impact. The recently
\nannounced safe harbor rules are likely to limit the financial
\nimpact in particular during the 3-year transitional period
\nduring which these safe harbor rules apply.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17866": {
"value": "Note 10 EARNINGS PER SHARE Profit for the period attributable to the shareholders of the
\ncompany was \u20ac352 million (2021: \u20ac829 million).
\nPro\ufb01t for the period
\nIn \u20ac millions
2021
2022
\nProfit before tax from continuing
1,105
602
\noperations
\nIncome tax
(246)
(214)
\nPro\ufb01t from continuing opera-
859
388
\ntions
\nProfit for the period attributable to
(36)
(26)
\nnon-controlling interests
\nPro\ufb01t for the period from
823
362
\ncontinuing operations attribut-
\nable to shareholders of the
\ncompany
\nProfit for the period from discon-
6
(10)
\ntinued operations attributable to
\nshareholders of the company
\nPro\ufb01t for the period attributable
829
352
\nto shareholders of the company
\nThe number of shares for the earnings per share calcula-
\ntion decreased as a result of the share buyback programs
\nof 2021 and 2022.
\nWeighted average number of common shares
\nNumber of shares
2021
2022
\nIssued common shares at
190,579,841
181,609,509
\nJanuary 1
\nEffect of issued common shares
225,806
186,077
\nduring the\u00a0year
\nEffect of share buyback program
(5,845,781)
(7,060,447)
\nShares for basic earnings per
184,959,866
174,735,139
\nshare for the year
\nEffect of dilutive shares
\nFor performance-related and
714,114
575,108
\nrestricted shares
\nFor share-matching plan
\u2014
3,251
\nShares for diluted earnings
185,673,980
175,313,498
\nper share
\nEarnings per share
\nin \u20ac
2021
2022
\nContinuing operations
\nBasic
4.45
2.07
\nDiluted
4.43
2.06
\nDiscontinued operations
\nBasic
0.03
(0.06)
\nDiluted
0.03
(0.05)
\nTotal operations
\nBasic
4.48
\n4.46
\n2.01
\nDiluted
2.01
\nRefer to Note 4 for the calculation of adjusted earnings
\nper share.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17980": {
"value": "Note 11 INTANGIBLE ASSETS Intangible assets
\nCustomer
Other
\nIn \u20ac millions
Goodwill
Brands
lists
intangibles
Total
\n4,356
\nBalance at January 1, 2021
\nCost of acquisition
1,123
2,134
921
178
\nCost of internally developed intangibles
\u2014
\u2014
\u2014
212
212
\nAccumulated amortization/impairment
(27)
(190)
(546)
(251)
(1,014)
\nCarrying value at January 1, 2021
1,096
1,944
375
139
3,554
\n36
\nMovements in 2021
\nAcquisitions through business combinations
18
8
10
\u2014
\nInvestments - including internally developed intangibles
\u2014
\u2014
\u2014
35
35
\nAmortization
\u2014
(12)
(34)
(24)
(70)
\nChanges in exchange rates
41
90
5
(1)
135
\nTotal movements
59
86
(19)
10
136
\n4,564
\nBalance at December 31, 2021
\nCost of acquisition
1,182
2,239
972
171
\nCost of internally developed intangibles
\u2014
\u2014
\u2014
241
241
\nAccumulated amortization/impairment
(27)
(209)
(616)
(263)
(1,115)
\nCarrying value at December 31, 2021
1,155
2,030
356
149
3,690
\nImpact IAS 29 Hyperinflation T\u00fcrkiye*
\u2014
\u2014
\u2014
1
1
\nCarrying value at January 1, 2022
1,155
2,030
356
150
3,691
\n538
\nMovements in 2022
\nAcquisitions through business combinations
262
72
193
11
\nInvestments - including internally developed intangibles
\u2014
\u2014
\u2014
30
30
\nAmortization
\u2014
(15)
(40)
(32)
(87)
\nImpairments, including reversals thereof
\u2014
\u2014
\u2014
(2)
(2)
\nChanges in exchange rates
(40)
(22)
(36)
\u2014
(98)
\nTotal movements
222
35
117
7
381
\n4,999
\nBalance at December 31, 2022
\nCost of acquisition
1,405
2,288
1,127
179
\nCost of internally developed intangibles
\u2014
\u2014
\u2014
268
268
\nAccumulated amortization/impairment
(28)
(223)
(654)
(290)
(1,195)
\nCarrying value at December 31, 2022
1,377
2,065
473
157
4,072
\n* As per June 2022, T
\u00fcrkiye has been identified as a hyperinflationary economy. IAS 29
\n\u201cFinancial Reporting in Hyperinflationary Economies\u201d has been applied for our activities in
\nT\u00fcrkiye as from January 1, 2022. Refer to Note 8 for details on the financial impact from
\napplying IAS 29.
\nBrands as included in the table on the left comprise of
\nbrands with indefinite useful lives and brands with finite
\nuseful lives. Brands with indefinite useful lives are almost
\nfully related to Dulux, which is the major brand, due to its
\nglobal presence, high recognition and strategic nature.
\nOther intangibles include licenses, know-how, intellectual
\nproperty rights, software and development cost. Both at
\nyear-end 2022 and 2021, there were no material purchase
\ncommitments for individual intangible assets. No intangible
\nassets were registered as security for bank loans.
\nAcquisitions through business combinations
\nThe additions from acquisitions in 2022 primarily relate to
\nthe acquisition of Grupo Orbis S.A., Colombia, and of the
\nwheel liquid coatings business of Lankwitzer Lackfabrik
\nGmbH, Germany. In 2021, additions from acquisitions
\nprimarily related to the acquisition of Titan Paints in Spain.
\nRefer to Note 2 for disclosures on acquisitions.
\nChanges in exchange rates
\nChanges in exchange rates includes a \u20ac15 million posi-
\ntive adjustment from the IAS 29 hyperinflation impact for
\nT\u00fcrkiye and Argentina.
\nAnnual impairment testing
\nGoodwill and other intangibles with indefinite useful lives
\nare tested for impairment per business unit (one level
\nbelow segment level) annually or whenever an impairment
\ntrigger exists, applying the value-in-use method.
\nThe paints business of recently acquired Grupo Orbis has
\nbeen allocated to business unit Decorative Paints Latin
\nAmerica. The Grupo Orbis coatings businesses ultimately
\nwill be incorporated into the respective Performance
\nCoatings business units in 2023. For the interim period,
\nin 2022, these businesses are reported in business unit
\nPerformance Coatings Other.
\nThe impairment test is in principle based on cash flow
\nprojections of the five-year plan. Elements considered to
\ndetermine if a different approach would be more appropri-
\nate are mainly related to high growth/emerging economies,
\ngeo expansion opportunities, introduction of new product
\nranges and opportunities from market consolidation.
\nIn 2022, the above exception was applied for Decora-
\ntive Paints Asia, Decorative Paints Latin America and
\nPerformance Coatings Other (Grupo Orbis), for which the
\nrevenue growth and margin development projections were
\n120
AkzoNobel Report 2022
|
Financial statements
Goodwill and other intangibles per business unit
\nBrands with inde\ufb01nite
Other intangibles
\nGoodwill
useful lives
with \ufb01nite useful lives
Total intangibles
\nIn \u20ac millions, at December 31
2021
2022
2021
2022
2021
2022
2021
2022
\nDecorative Paints Europe, Middle East
114
107
837
837
146
136
1,097
1,080
\nand Africa
\nDecorative Paints Latin America
\u2014
138
87
102
\u2014
142
87
382
\nDecorative Paints Asia
9
8
928
901
31
21
968
930
\nPowder Coatings
155
152
\u2014
\u2014
32
19
187
171
\nMarine and Protective Coatings
174
197
\u2014
\u2014
80
94
254
291
\nAutomotive and Specialty Coatings
288
290
\u2014
\u2014
175
156
463
446
\nIndustrial Coatings
415
413
\u2014
\u2014
120
110
535
523
\nPerformance Coatings Other
\u2014
72
\u2014
\u2014
\u2014
59
\u2014
131
\nCorporate and other
\u2014
\u2013
\u2014
\u2014
99
118
99
118
\nTotal
1,155
1,377
1,852
1,840
683
855
3,690
4,072
\nextrapolated beyond the five-year explicit forecast
\nperiod for another five years, applying reduced average
\ngrowth rates.
\nMacro economic developments and other relevant vari-
\nables (e.g. inflation, the situation with respect to COVID-
\n19, geopolitical uncertainties, climate risks \u2013 refer to
\nNote 1 for a description of the impact from climate change
\non the financial statements) are closely monitored to
\nensure that the impact on the estimated future cash flows
\nis reflected in the models which are used to assess the
\nvalue of AkzoNobel\u2019s asset base.
\nKey assumptions 2022
\nPre-tax weighted
\nAverage revenue
average cost of
\nIn\u00a0% per year
growth 2023-2027
capital 2023-2027
\nDecorative Paints
1.8-6.7%
11.1-15.9%
\nPerformance Coatings
1.3-4.0%
10.8-12.4%
\nKey assumptions 2021
\nPre-tax weighted
\nAverage revenue
average cost of
\nIn\u00a0% per year
growth 2022-2026
capital 2022-2026
\nDecorative Paints
1.1-5.9%
8.4-12.5%
\nPerformance Coatings
2.6-4.7%
7.8-8.1%
\nThe key assumptions used in the projections for annual
\nimpairment testing are:
\n\u2022
Revenue growth per year: based on actual experience,
\nanalysis of markets and GDP growth, and expected
\nmarket share developments
\n\u2022
Margin development per year: based on actual
\nexperience and management\u2019s long-term projections
\n\u2022
Weighted average cost of capital per year: the pre-tax
\ndiscount rate determined per business unit, reflecting
\ncurrent market assessments of the time value of
\nmoney and the risks specifically associated with the
\nbusiness units
\nFor all business units, a terminal value was calculated based
\non long-term inflation expectations of 2% (2021: 1%). The
\nestimated pre-tax cash flows are discounted to their present
\nvalue using a pre-tax weighted average cost of capital. The
\ndiscount rates are determined for each business unit and
\nrange from 10.8% to 15.9% (2021: 7.8% to 12.5%), with a
\nweighted average of 11.7% (2021: 8.4%).
\nSensitivity tests were performed to assess the impact of
\nchanges in the key assumptions revenue growth (50%
\nlower), margin development (1 percentage point lower) and
\nthe weighted average cost of capital (1 percentage point
\nhigher). These assessments show that these changes in
\nkey assumptions would not cause carrying amounts to
\nexceed recoverable amounts for any of the business units,
\nexcept for the Latin America businesses where the recently
\nacquired Grupo Orbis business is included.
\nGiven the current uncertainties in the macro-economic
\nenvironment and high cost inflation, additional sensitivity
\ntests have been performed in order to assess the impact
\nof more severe adverse changes in the key assumptions.
\nThe conclusions from these tests are the same as above.
\nIn 2022 and 2021, no impairment charges were recog-
\nnized in relation to the annual impairment test.
\nSpeci\ufb01c asset impairments
\nPeriodical evaluations are performed in order to ensure
\ntimely detection of triggers that might indicate impairment
\nof assets. Whenever such triggers are noted, the related
\nassets are assessed for impairment as appropriate.
\nIn 2022 and 2021, no significant impairment charges were
\nrecorded in relation to specific assets.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17981": {
"value": "Note 11 INTANGIBLE ASSETS Intangible assets
\nCustomer
Other
\nIn \u20ac millions
Goodwill
Brands
lists
intangibles
Total
\n4,356
\nBalance at January 1, 2021
\nCost of acquisition
1,123
2,134
921
178
\nCost of internally developed intangibles
\u2014
\u2014
\u2014
212
212
\nAccumulated amortization/impairment
(27)
(190)
(546)
(251)
(1,014)
\nCarrying value at January 1, 2021
1,096
1,944
375
139
3,554
\n36
\nMovements in 2021
\nAcquisitions through business combinations
18
8
10
\u2014
\nInvestments - including internally developed intangibles
\u2014
\u2014
\u2014
35
35
\nAmortization
\u2014
(12)
(34)
(24)
(70)
\nChanges in exchange rates
41
90
5
(1)
135
\nTotal movements
59
86
(19)
10
136
\n4,564
\nBalance at December 31, 2021
\nCost of acquisition
1,182
2,239
972
171
\nCost of internally developed intangibles
\u2014
\u2014
\u2014
241
241
\nAccumulated amortization/impairment
(27)
(209)
(616)
(263)
(1,115)
\nCarrying value at December 31, 2021
1,155
2,030
356
149
3,690
\nImpact IAS 29 Hyperinflation T\u00fcrkiye*
\u2014
\u2014
\u2014
1
1
\nCarrying value at January 1, 2022
1,155
2,030
356
150
3,691
\n538
\nMovements in 2022
\nAcquisitions through business combinations
262
72
193
11
\nInvestments - including internally developed intangibles
\u2014
\u2014
\u2014
30
30
\nAmortization
\u2014
(15)
(40)
(32)
(87)
\nImpairments, including reversals thereof
\u2014
\u2014
\u2014
(2)
(2)
\nChanges in exchange rates
(40)
(22)
(36)
\u2014
(98)
\nTotal movements
222
35
117
7
381
\n4,999
\nBalance at December 31, 2022
\nCost of acquisition
1,405
2,288
1,127
179
\nCost of internally developed intangibles
\u2014
\u2014
\u2014
268
268
\nAccumulated amortization/impairment
(28)
(223)
(654)
(290)
(1,195)
\nCarrying value at December 31, 2022
1,377
2,065
473
157
4,072
\n* As per June 2022, T
\u00fcrkiye has been identified as a hyperinflationary economy. IAS 29
\n\u201cFinancial Reporting in Hyperinflationary Economies\u201d has been applied for our activities in
\nT\u00fcrkiye as from January 1, 2022. Refer to Note 8 for details on the financial impact from
\napplying IAS 29.
\nBrands as included in the table on the left comprise of
\nbrands with indefinite useful lives and brands with finite
\nuseful lives. Brands with indefinite useful lives are almost
\nfully related to Dulux, which is the major brand, due to its
\nglobal presence, high recognition and strategic nature.
\nOther intangibles include licenses, know-how, intellectual
\nproperty rights, software and development cost. Both at
\nyear-end 2022 and 2021, there were no material purchase
\ncommitments for individual intangible assets. No intangible
\nassets were registered as security for bank loans.
\nAcquisitions through business combinations
\nThe additions from acquisitions in 2022 primarily relate to
\nthe acquisition of Grupo Orbis S.A., Colombia, and of the
\nwheel liquid coatings business of Lankwitzer Lackfabrik
\nGmbH, Germany. In 2021, additions from acquisitions
\nprimarily related to the acquisition of Titan Paints in Spain.
\nRefer to Note 2 for disclosures on acquisitions.
\nChanges in exchange rates
\nChanges in exchange rates includes a \u20ac15 million posi-
\ntive adjustment from the IAS 29 hyperinflation impact for
\nT\u00fcrkiye and Argentina.
\nAnnual impairment testing
\nGoodwill and other intangibles with indefinite useful lives
\nare tested for impairment per business unit (one level
\nbelow segment level) annually or whenever an impairment
\ntrigger exists, applying the value-in-use method.
\nThe paints business of recently acquired Grupo Orbis has
\nbeen allocated to business unit Decorative Paints Latin
\nAmerica. The Grupo Orbis coatings businesses ultimately
\nwill be incorporated into the respective Performance
\nCoatings business units in 2023. For the interim period,
\nin 2022, these businesses are reported in business unit
\nPerformance Coatings Other.
\nThe impairment test is in principle based on cash flow
\nprojections of the five-year plan. Elements considered to
\ndetermine if a different approach would be more appropri-
\nate are mainly related to high growth/emerging economies,
\ngeo expansion opportunities, introduction of new product
\nranges and opportunities from market consolidation.
\nIn 2022, the above exception was applied for Decora-
\ntive Paints Asia, Decorative Paints Latin America and
\nPerformance Coatings Other (Grupo Orbis), for which the
\nrevenue growth and margin development projections were
\n120
AkzoNobel Report 2022
|
Financial statements
Goodwill and other intangibles per business unit
\nBrands with inde\ufb01nite
Other intangibles
\nGoodwill
useful lives
with \ufb01nite useful lives
Total intangibles
\nIn \u20ac millions, at December 31
2021
2022
2021
2022
2021
2022
2021
2022
\nDecorative Paints Europe, Middle East
114
107
837
837
146
136
1,097
1,080
\nand Africa
\nDecorative Paints Latin America
\u2014
138
87
102
\u2014
142
87
382
\nDecorative Paints Asia
9
8
928
901
31
21
968
930
\nPowder Coatings
155
152
\u2014
\u2014
32
19
187
171
\nMarine and Protective Coatings
174
197
\u2014
\u2014
80
94
254
291
\nAutomotive and Specialty Coatings
288
290
\u2014
\u2014
175
156
463
446
\nIndustrial Coatings
415
413
\u2014
\u2014
120
110
535
523
\nPerformance Coatings Other
\u2014
72
\u2014
\u2014
\u2014
59
\u2014
131
\nCorporate and other
\u2014
\u2013
\u2014
\u2014
99
118
99
118
\nTotal
1,155
1,377
1,852
1,840
683
855
3,690
4,072
\nextrapolated beyond the five-year explicit forecast
\nperiod for another five years, applying reduced average
\ngrowth rates.
\nMacro economic developments and other relevant vari-
\nables (e.g. inflation, the situation with respect to COVID-
\n19, geopolitical uncertainties, climate risks \u2013 refer to
\nNote 1 for a description of the impact from climate change
\non the financial statements) are closely monitored to
\nensure that the impact on the estimated future cash flows
\nis reflected in the models which are used to assess the
\nvalue of AkzoNobel\u2019s asset base.
\nKey assumptions 2022
\nPre-tax weighted
\nAverage revenue
average cost of
\nIn\u00a0% per year
growth 2023-2027
capital 2023-2027
\nDecorative Paints
1.8-6.7%
11.1-15.9%
\nPerformance Coatings
1.3-4.0%
10.8-12.4%
\nKey assumptions 2021
\nPre-tax weighted
\nAverage revenue
average cost of
\nIn\u00a0% per year
growth 2022-2026
capital 2022-2026
\nDecorative Paints
1.1-5.9%
8.4-12.5%
\nPerformance Coatings
2.6-4.7%
7.8-8.1%
\nThe key assumptions used in the projections for annual
\nimpairment testing are:
\n\u2022
Revenue growth per year: based on actual experience,
\nanalysis of markets and GDP growth, and expected
\nmarket share developments
\n\u2022
Margin development per year: based on actual
\nexperience and management\u2019s long-term projections
\n\u2022
Weighted average cost of capital per year: the pre-tax
\ndiscount rate determined per business unit, reflecting
\ncurrent market assessments of the time value of
\nmoney and the risks specifically associated with the
\nbusiness units
\nFor all business units, a terminal value was calculated based
\non long-term inflation expectations of 2% (2021: 1%). The
\nestimated pre-tax cash flows are discounted to their present
\nvalue using a pre-tax weighted average cost of capital. The
\ndiscount rates are determined for each business unit and
\nrange from 10.8% to 15.9% (2021: 7.8% to 12.5%), with a
\nweighted average of 11.7% (2021: 8.4%).
\nSensitivity tests were performed to assess the impact of
\nchanges in the key assumptions revenue growth (50%
\nlower), margin development (1 percentage point lower) and
\nthe weighted average cost of capital (1 percentage point
\nhigher). These assessments show that these changes in
\nkey assumptions would not cause carrying amounts to
\nexceed recoverable amounts for any of the business units,
\nexcept for the Latin America businesses where the recently
\nacquired Grupo Orbis business is included.
\nGiven the current uncertainties in the macro-economic
\nenvironment and high cost inflation, additional sensitivity
\ntests have been performed in order to assess the impact
\nof more severe adverse changes in the key assumptions.
\nThe conclusions from these tests are the same as above.
\nIn 2022 and 2021, no impairment charges were recog-
\nnized in relation to the annual impairment test.
\nSpeci\ufb01c asset impairments
\nPeriodical evaluations are performed in order to ensure
\ntimely detection of triggers that might indicate impairment
\nof assets. Whenever such triggers are noted, the related
\nassets are assessed for impairment as appropriate.
\nIn 2022 and 2021, no significant impairment charges were
\nrecorded in relation to specific assets.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17984": {
"value": "Intangible assets
\nCustomer
Other
\nIn \u20ac millions
Goodwill
Brands
lists
intangibles
Total
\n4,356
\nBalance at January 1, 2021
\nCost of acquisition
1,123
2,134
921
178
\nCost of internally developed intangibles
\u2014
\u2014
\u2014
212
212
\nAccumulated amortization/impairment
(27)
(190)
(546)
(251)
(1,014)
\nCarrying value at January 1, 2021
1,096
1,944
375
139
3,554
\n36
\nMovements in 2021
\nAcquisitions through business combinations
18
8
10
\u2014
\nInvestments - including internally developed intangibles
\u2014
\u2014
\u2014
35
35
\nAmortization
\u2014
(12)
(34)
(24)
(70)
\nChanges in exchange rates
41
90
5
(1)
135
\nTotal movements
59
86
(19)
10
136
\n4,564
\nBalance at December 31, 2021
\nCost of acquisition
1,182
2,239
972
171
\nCost of internally developed intangibles
\u2014
\u2014
\u2014
241
241
\nAccumulated amortization/impairment
(27)
(209)
(616)
(263)
(1,115)
\nCarrying value at December 31, 2021
1,155
2,030
356
149
3,690
\nImpact IAS 29 Hyperinflation T\u00fcrkiye*
\u2014
\u2014
\u2014
1
1
\nCarrying value at January 1, 2022
1,155
2,030
356
150
3,691
\n538
\nMovements in 2022
\nAcquisitions through business combinations
262
72
193
11
\nInvestments - including internally developed intangibles
\u2014
\u2014
\u2014
30
30
\nAmortization
\u2014
(15)
(40)
(32)
(87)
\nImpairments, including reversals thereof
\u2014
\u2014
\u2014
(2)
(2)
\nChanges in exchange rates
(40)
(22)
(36)
\u2014
(98)
\nTotal movements
222
35
117
7
381
\n4,999
\nBalance at December 31, 2022
\nCost of acquisition
1,405
2,288
1,127
179
\nCost of internally developed intangibles
\u2014
\u2014
\u2014
268
268
\nAccumulated amortization/impairment
(28)
(223)
(654)
(290)
(1,195)
\nCarrying value at December 31, 2022
1,377
2,065
473
157
4,072
\n* As per June 2022, T
\u00fcrkiye has been identified as a hyperinflationary economy. IAS 29
\n\u201cFinancial Reporting in Hyperinflationary Economies\u201d has been applied for our activities in
\nT\u00fcrkiye as from January 1, 2022. Refer to Note 8 for details on the financial impact from
\napplying IAS 29.
Annual impairment testing
\nGoodwill and other intangibles with indefinite useful lives
\nare tested for impairment per business unit (one level
\nbelow segment level) annually or whenever an impairment
\ntrigger exists, applying the value-in-use method.
\nThe paints business of recently acquired Grupo Orbis has
\nbeen allocated to business unit Decorative Paints Latin
\nAmerica. The Grupo Orbis coatings businesses ultimately
\nwill be incorporated into the respective Performance
\nCoatings business units in 2023. For the interim period,
\nin 2022, these businesses are reported in business unit
\nPerformance Coatings Other.
\nThe impairment test is in principle based on cash flow
\nprojections of the five-year plan. Elements considered to
\ndetermine if a different approach would be more appropri-
\nate are mainly related to high growth/emerging economies,
\ngeo expansion opportunities, introduction of new product
\nranges and opportunities from market consolidation.
\nIn 2022, the above exception was applied for Decora-
\ntive Paints Asia, Decorative Paints Latin America and
\nPerformance Coatings Other (Grupo Orbis), for which the
\nrevenue growth and margin development projections were
Goodwill and other intangibles per business unit
\nBrands with inde\ufb01nite
Other intangibles
\nGoodwill
useful lives
with \ufb01nite useful lives
Total intangibles
\nIn \u20ac millions, at December 31
2021
2022
2021
2022
2021
2022
2021
2022
\nDecorative Paints Europe, Middle East
114
107
837
837
146
136
1,097
1,080
\nand Africa
\nDecorative Paints Latin America
\u2014
138
87
102
\u2014
142
87
382
\nDecorative Paints Asia
9
8
928
901
31
21
968
930
\nPowder Coatings
155
152
\u2014
\u2014
32
19
187
171
\nMarine and Protective Coatings
174
197
\u2014
\u2014
80
94
254
291
\nAutomotive and Specialty Coatings
288
290
\u2014
\u2014
175
156
463
446
\nIndustrial Coatings
415
413
\u2014
\u2014
120
110
535
523
\nPerformance Coatings Other
\u2014
72
\u2014
\u2014
\u2014
59
\u2014
131
\nCorporate and other
\u2014
\u2013
\u2014
\u2014
99
118
99
118
\nTotal
1,155
1,377
1,852
1,840
683
855
3,690
4,072
\nextrapolated beyond the five-year explicit forecast
\nperiod for another five years, applying reduced average
\ngrowth rates.
\nMacro economic developments and other relevant vari-
\nables (e.g. inflation, the situation with respect to COVID-
\n19, geopolitical uncertainties, climate risks \u2013 refer to
\nNote 1 for a description of the impact from climate change
\non the financial statements) are closely monitored to
\nensure that the impact on the estimated future cash flows
\nis reflected in the models which are used to assess the
\nvalue of AkzoNobel\u2019s asset base.
\nKey assumptions 2022
\nPre-tax weighted
\nAverage revenue
average cost of
\nIn\u00a0% per year
growth 2023-2027
capital 2023-2027
\nDecorative Paints
1.8-6.7%
11.1-15.9%
\nPerformance Coatings
1.3-4.0%
10.8-12.4%
\nKey assumptions 2021
\nPre-tax weighted
\nAverage revenue
average cost of
\nIn\u00a0% per year
growth 2022-2026
capital 2022-2026
\nDecorative Paints
1.1-5.9%
8.4-12.5%
\nPerformance Coatings
2.6-4.7%
7.8-8.1%
\nThe key assumptions used in the projections for annual
\nimpairment testing are:
\n\u2022
Revenue growth per year: based on actual experience,
\nanalysis of markets and GDP growth, and expected
\nmarket share developments
\n\u2022
Margin development per year: based on actual
\nexperience and management\u2019s long-term projections
\n\u2022
Weighted average cost of capital per year: the pre-tax
\ndiscount rate determined per business unit, reflecting
\ncurrent market assessments of the time value of
\nmoney and the risks specifically associated with the
\nbusiness units
\nFor all business units, a terminal value was calculated based
\non long-term inflation expectations of 2% (2021: 1%). The
\nestimated pre-tax cash flows are discounted to their present
\nvalue using a pre-tax weighted average cost of capital. The
\ndiscount rates are determined for each business unit and
\nrange from 10.8% to 15.9% (2021: 7.8% to 12.5%), with a
\nweighted average of 11.7% (2021: 8.4%).
\nSensitivity tests were performed to assess the impact of
\nchanges in the key assumptions revenue growth (50%
\nlower), margin development (1 percentage point lower) and
\nthe weighted average cost of capital (1 percentage point
\nhigher). These assessments show that these changes in
\nkey assumptions would not cause carrying amounts to
\nexceed recoverable amounts for any of the business units,
\nexcept for the Latin America businesses where the recently
\nacquired Grupo Orbis business is included.
\nGiven the current uncertainties in the macro-economic
\nenvironment and high cost inflation, additional sensitivity
\ntests have been performed in order to assess the impact
\nof more severe adverse changes in the key assumptions.
\nThe conclusions from these tests are the same as above.
\nIn 2022 and 2021, no impairment charges were recog-
\nnized in relation to the annual impairment test.
\nSpeci\ufb01c asset impairments
\nPeriodical evaluations are performed in order to ensure
\ntimely detection of triggers that might indicate impairment
\nof assets. Whenever such triggers are noted, the related
\nassets are assessed for impairment as appropriate.
\nIn 2022 and 2021, no significant impairment charges were
\nrecorded in relation to specific assets.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGoodwillExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18175": {
"value": "Annual impairment testing
\nGoodwill and other intangibles with indefinite useful lives
\nare tested for impairment per business unit (one level
\nbelow segment level) annually or whenever an impairment
\ntrigger exists, applying the value-in-use method.
\nThe paints business of recently acquired Grupo Orbis has
\nbeen allocated to business unit Decorative Paints Latin
\nAmerica. The Grupo Orbis coatings businesses ultimately
\nwill be incorporated into the respective Performance
\nCoatings business units in 2023. For the interim period,
\nin 2022, these businesses are reported in business unit
\nPerformance Coatings Other.
\nThe impairment test is in principle based on cash flow
\nprojections of the five-year plan. Elements considered to
\ndetermine if a different approach would be more appropri-
\nate are mainly related to high growth/emerging economies,
\ngeo expansion opportunities, introduction of new product
\nranges and opportunities from market consolidation.
\nIn 2022, the above exception was applied for Decora-
\ntive Paints Asia, Decorative Paints Latin America and
\nPerformance Coatings Other (Grupo Orbis), for which the
\nrevenue growth and margin development projections were
Goodwill and other intangibles per business unit
\nBrands with inde\ufb01nite
Other intangibles
\nGoodwill
useful lives
with \ufb01nite useful lives
Total intangibles
\nIn \u20ac millions, at December 31
2021
2022
2021
2022
2021
2022
2021
2022
\nDecorative Paints Europe, Middle East
114
107
837
837
146
136
1,097
1,080
\nand Africa
\nDecorative Paints Latin America
\u2014
138
87
102
\u2014
142
87
382
\nDecorative Paints Asia
9
8
928
901
31
21
968
930
\nPowder Coatings
155
152
\u2014
\u2014
32
19
187
171
\nMarine and Protective Coatings
174
197
\u2014
\u2014
80
94
254
291
\nAutomotive and Specialty Coatings
288
290
\u2014
\u2014
175
156
463
446
\nIndustrial Coatings
415
413
\u2014
\u2014
120
110
535
523
\nPerformance Coatings Other
\u2014
72
\u2014
\u2014
\u2014
59
\u2014
131
\nCorporate and other
\u2014
\u2013
\u2014
\u2014
99
118
99
118
\nTotal
1,155
1,377
1,852
1,840
683
855
3,690
4,072
\nextrapolated beyond the five-year explicit forecast
\nperiod for another five years, applying reduced average
\ngrowth rates.
\nMacro economic developments and other relevant vari-
\nables (e.g. inflation, the situation with respect to COVID-
\n19, geopolitical uncertainties, climate risks \u2013 refer to
\nNote 1 for a description of the impact from climate change
\non the financial statements) are closely monitored to
\nensure that the impact on the estimated future cash flows
\nis reflected in the models which are used to assess the
\nvalue of AkzoNobel\u2019s asset base.
\nKey assumptions 2022
\nPre-tax weighted
\nAverage revenue
average cost of
\nIn\u00a0% per year
growth 2023-2027
capital 2023-2027
\nDecorative Paints
1.8-6.7%
11.1-15.9%
\nPerformance Coatings
1.3-4.0%
10.8-12.4%
\nKey assumptions 2021
\nPre-tax weighted
\nAverage revenue
average cost of
\nIn\u00a0% per year
growth 2022-2026
capital 2022-2026
\nDecorative Paints
1.1-5.9%
8.4-12.5%
\nPerformance Coatings
2.6-4.7%
7.8-8.1%
\nThe key assumptions used in the projections for annual
\nimpairment testing are:
\n\u2022
Revenue growth per year: based on actual experience,
\nanalysis of markets and GDP growth, and expected
\nmarket share developments
\n\u2022
Margin development per year: based on actual
\nexperience and management\u2019s long-term projections
\n\u2022
Weighted average cost of capital per year: the pre-tax
\ndiscount rate determined per business unit, reflecting
\ncurrent market assessments of the time value of
\nmoney and the risks specifically associated with the
\nbusiness units
\nFor all business units, a terminal value was calculated based
\non long-term inflation expectations of 2% (2021: 1%). The
\nestimated pre-tax cash flows are discounted to their present
\nvalue using a pre-tax weighted average cost of capital. The
\ndiscount rates are determined for each business unit and
\nrange from 10.8% to 15.9% (2021: 7.8% to 12.5%), with a
\nweighted average of 11.7% (2021: 8.4%).
\nSensitivity tests were performed to assess the impact of
\nchanges in the key assumptions revenue growth (50%
\nlower), margin development (1 percentage point lower) and
\nthe weighted average cost of capital (1 percentage point
\nhigher). These assessments show that these changes in
\nkey assumptions would not cause carrying amounts to
\nexceed recoverable amounts for any of the business units,
\nexcept for the Latin America businesses where the recently
\nacquired Grupo Orbis business is included.
\nGiven the current uncertainties in the macro-economic
\nenvironment and high cost inflation, additional sensitivity
\ntests have been performed in order to assess the impact
\nof more severe adverse changes in the key assumptions.
\nThe conclusions from these tests are the same as above.
\nIn 2022 and 2021, no impairment charges were recog-
\nnized in relation to the annual impairment test.
\nSpeci\ufb01c asset impairments
\nPeriodical evaluations are performed in order to ensure
\ntimely detection of triggers that might indicate impairment
\nof assets. Whenever such triggers are noted, the related
\nassets are assessed for impairment as appropriate.
\nIn 2022 and 2021, no significant impairment charges were
\nrecorded in relation to specific assets.
Impairments
\nPeriodical evaluations are performed in order to ensure
\ntimely detection of triggers that might indicate impairment
\nof assets. Whenever such triggers are noted, the related
\nassets are assessed for impairment as appropriate.
\nIn 2022 and 2021, no significant impairments were recognized.
Impairments
\nPeriodical evaluations are performed in order to ensure
\ntimely detection of triggers that might indicate impairment
\nof assets. Whenever such triggers are noted, the related
\nassets are assessed for impairment as appropriate.
\nIn 2022 and 2021, no significant impairments were
\nrecognized.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18412": {
"value": "Note 12 PROPERTY, PLANT AND EQUIPMENT
\nAcquisitions
\nThe additions from acquisitions in 2022 primarily relate to
\nthe acquisition of Grupo Orbis S.A., Colombia, and of the
\nwheel liquid coatings business of Lankwitzer Lackfabrik
\nGmbH, Germany. In 2021, additions from acquisitions
\nprimarily related to the acquisition of Titan Paints in Spain.
\nRefer to Note 2 for disclosures on acquisitions.
\nInvestments in property, plant and equipment
\nLarge investment projects in 2022 are amongst others
\ninvestments at our Highpoint, US, Wood Coatings site,
\nand the setup of a new powder coatings manufacturing
\nline at our Hanoi, Vietnam site.
\nImpairments
\nPeriodical evaluations are performed in order to ensure
\ntimely detection of triggers that might indicate impairment
\nof assets. Whenever such triggers are noted, the related
\nassets are assessed for impairment as appropriate.
\nIn 2022 and 2021, no significant impairments were recognized.
\nChanges in exchange rates
\nChanges in exchange rates includes a \u20ac30 million posi-
\ntive adjustment from the IAS 29 hyperinflation impact for
\nT\u00fcrkiye and Argentina.
\n121
AkzoNobel Report 2022
|
Financial statements
Property, plant and equipment
\nConstruction in progress
\nPlant equipment and
and prepayments on
\nIn \u20ac millions
Land and buildings
machinery
Other equipment
projects
Assets not used
Total
\nBalance at January 1, 2021
\nCost of acquisition
1,425
1,937
890
244
10
4,506
\nAccumulated depreciation/impairment
(731)
(1,386)
(757)
(4)
(7)
(2,885)
\nCarrying value at January 1, 2021
694
551
133
240
3
1,621
\nMovements in 2021
\nAcquisitions
36
11
\u2014
\u2014
\u2014
47
\nDivestments
(5)
(3)
(1)
(1)
\u2014
(10)
\nInvestments
10
18
8
217
\u2014
253
\nTransfer between categories
30
112
28
(170)
\u2014
\u2014
\nDepreciation
(44)
(102)
(41)
\u2014
\u2014
(187)
\nImpairments, including reversals thereof
\u2014
(1)
\u2014
\u2014
\u2014
(1)
\nChanges in exchange rates
31
29
6
11
\u2014
77
\nTotal movements
58
64
\u2014
57
\u2014
179
\nBalance at December 31, 2021
\nCost of acquisition
1,546
2,124
919
300
10
4,899
\nAccumulated depreciation/impairment
(794)
(1,509)
(786)
(3)
(7)
(3,099)
\nCarrying value at December 31, 2021
752
615
133
297
3
1,800
\nImpact IAS 29 Hyperinflation T\u00fcrkiye*
10
3
\u2014
2
\u2014
15
\nCarrying value at January 1, 2022
762
618
133
299
3
1,815
\nMovements in 2022
\nAcquisitions
75
45
5
\u2014
\u2014
125
\nDivestments
(9)
(4)
(2)
(5)
\u2014
(20)
\nInvestments
2
11
6
242
1
262
\nTransfer between categories
53
87
36
(176)
\u2014
\u2014
\nDepreciation
(46)
(105)
(32)
\u2014
\u2014
(183)
\nChanges in exchange rates
(5)
(29)
(7)
10
\u2014
(31)
\nTotal movements
70
5
6
71
1
153
\nBalance at December 31, 2022
\nCost of acquisition
1,658
2,208
923
373
11
5,173
\nAccumulated depreciation/impairment
(826)
(1,585)
(784)
(3)
(7)
(3,205)
\nCarrying value at December 31, 2022
832
623
139
370
4
1,968
\n* As per June 2022, T
\u00fcrkiye has been identified as a hyperinflationary economy. IAS 29
\n\u201cFinancial Reporting in Hyperinflationary Economies\u201d has been applied for our activities in
\nT\u00fcrkiye as from January 1, 2022. Refer to Note 8 for details on the financial impact from
\napplying IAS 29.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18672": {
"value": "Note 13 LEASES AkzoNobel mainly leases land, office spaces, stores and
\ncars. Some leases provide for additional rent payments
\nthat are based on changes in local price indices.
\nSome property leases contain extension options exercis-
\nable by AkzoNobel up to one year before the end of the
\nnon-cancellable contract period. We have estimated that
\nthe lease liability would increase by less than 20%, if we
\nwould exercise the extension options which are currently
\nnot included in the valuation of the lease liability. This
\nexcludes so-called \u201cevergreens\u201d or perpetual leases.
\nTotal net cash outflow from financing activities related to
\nleases recognized on the balance sheet was \u20ac104 million
\n(2021: \u20ac100 million). Net cash outflow for leases not
\nrecognized on the balance sheet was \u20ac19 million (2021:
\n\u20ac17 million).
\nRefer to Note 27 \u201cFinancial risk management\u201d for the
\nmaturities of lease liabilities.
\nThe table \u201cIncome/(expenses) recognized in profit and
\nloss\u201d shows the total impact from leases on our profit and
\nloss account.
\nRight-of-use assets
\nIn \u20ac millions
Land
Buildings
Other
Total
\nBalance at January 1, 2021
\nCost of acquisition
55
353
102
510
\nAccumulated depreciation/impairment
(16)
(128)
(42)
(186)
\nCarrying value at January 1, 2021
39
225
60
324
\nMovements in 2021
\nAdditions/modifications
2
35
32
69
\nDisposals
\u2014
(5)
(2)
(7)
\nDepreciation
(3)
(60)
(31)
(94)
\nImpairments, including reversals thereof
\u2014
(2)
\u2014
(2)
\nChanges in exchange rates
4
9
1
14
\nTotal movements
3
(23)
\u2014
(20)
\nCost of acquisition
61
372
109
542
\nAccumulated depreciation/impairment
(19)
(170)
(49)
(238)
\nCarrying value at December 31, 2021
42
202
60
304
\nMovements in 2022
\nAcquisitions
2
5
3
10
\nAdditions/modifications
\u2014
58
30
88
\nDisposals
\u2014
(7)
(2)
(9)
\nDepreciation
(3)
(64)
(31)
(98)
\nImpairments, including reversals thereof
\u2014
(3)
\u2014
(3)
\nChanges in exchange rates
1
(2)
\u2014
(1)
\nTotal movements
\u2014
(13)
\u2014
(13)
\nCost of acquisition
64
393
117
574
\nAccumulated depreciation/impairment
(22)
(204)
(57)
(283)
\nCarrying value at December 31, 2022
42
189
60
291
\nIncome/(expenses) recognized in pro\ufb01t and loss
\nIn \u20ac millions
2021
2022
\nSub lease income
3
2
\nDepreciation right-of-use assets
(94)
(98)
\nImpairments for right-of-use assets
(2)
(3)
\nInterest expense on lease liabilities
(6)
(6)
\nShort-term lease expenses
(7)
(11)
\nExpenses relating to low-value assets
(5)
(4)
\nVariable lease expenses
(5)
(4)
\nTotal expenses
(116)
(124)
\nImpairments
\nPeriodical evaluations are performed in order to ensure
\ntimely detection of triggers that might indicate impairment
\nof assets. Whenever such triggers are noted, the related
\nassets are assessed for impairment as appropriate.
\nIn 2022 and 2021, no significant impairments were
\nrecognized.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLeasesExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18853": {
"value": "Note 14 INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
\nThe total value of investments in associates and joint
\nventures at December 31, 2022 amounted to \u20ac193 million
\n(2021: \u20ac178 million) and consisted of our equity share of
\n\u20ac191 million (2021: \u20ac176 million) and loans granted of \u20ac2
\nmillion (2021: \u20ac2 million).
\nBalance sheet information of our share in associates
\nAssociates
\nIn \u20ac millions, at December 31
2021
2022
\nCondensed balance sheet
\nNon-current assets
81
97
\nCurrent assets
141
152
\nTotal assets
222
249
\nShareholders\u2019 equity
176
191
\nNon-current liabilities
5
6
\nCurrent liabilities
41
52
\nTotal liabilities and equity
222
249
\n123
AkzoNobel Report 2022
|
Financial statements
Pro\ufb01t and loss of our share in associates
\nAssociates
\nIn \u20ac millions
2021
2022
\nCondensed statement of income
\nRevenue
194
218
\nProfit before tax
35
25
\nProfit from continuing operations
26
18
\nPro\ufb01t for the period
26
18
\nIn 2022, the results from associates amounted to a profit
\nof \u20ac18 million (2021: \u20ac26 million). No significant contingent
\nliabilities exist related to associates. The largest associate
\nof AkzoNobel is Metlac S.p.a., incorporated in Italy.
\nNone of the associates are considered individually material
\nto the group.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18854": {
"value": "Note 14 INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
\nThe total value of investments in associates and joint
\nventures at December 31, 2022 amounted to \u20ac193 million
\n(2021: \u20ac178 million) and consisted of our equity share of
\n\u20ac191 million (2021: \u20ac176 million) and loans granted of \u20ac2
\nmillion (2021: \u20ac2 million).
\nBalance sheet information of our share in associates
\nAssociates
\nIn \u20ac millions, at December 31
2021
2022
\nCondensed balance sheet
\nNon-current assets
81
97
\nCurrent assets
141
152
\nTotal assets
222
249
\nShareholders\u2019 equity
176
191
\nNon-current liabilities
5
6
\nCurrent liabilities
41
52
\nTotal liabilities and equity
222
249
\n123
AkzoNobel Report 2022
|
Financial statements
Pro\ufb01t and loss of our share in associates
\nAssociates
\nIn \u20ac millions
2021
2022
\nCondensed statement of income
\nRevenue
194
218
\nProfit before tax
35
25
\nProfit from continuing operations
26
18
\nPro\ufb01t for the period
26
18
\nIn 2022, the results from associates amounted to a profit
\nof \u20ac18 million (2021: \u20ac26 million). No significant contingent
\nliabilities exist related to associates. The largest associate
\nof AkzoNobel is Metlac S.p.a., incorporated in Italy.
\nNone of the associates are considered individually material
\nto the group.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfJointVenturesExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18934": {
"value": "Note 15 FINANCIAL NON-CURRENT ASSETS
\nFinancial non-current assets
\nIn \u20ac millions, at December 31
2021
2022
\nPension assets
1,638
1,029
\nLoans and receivables
360
362
\nOther financial non-current assets
78
84
\nTotal
2,076
1,475
\nPension assets (\u20ac1,029 million) relate to pension plans in
\nan asset position (2021: \u20ac1,638 million). For more informa-
\ntion on post-retirement benefit plans, refer to Note 19.
\nLoans and receivables include the subordinated loan of
\n\u20ac89 million (2021: \u20ac88 million) granted to the Pension
\nFund APF in the Netherlands.
\nLoans and receivables are considered to have low credit
\nrisk; the impairment provision recognized during the period
\nwas limited to 12 months expected losses.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherNoncurrentAssetsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18959": {
"value": "Loans and receivables are considered to have low credit
\nrisk; the impairment provision recognized during the period
\nwas limited to 12 months expected losses.
Trade receivables are presented net of an allowance for
\nimpairment of \u20ac42 million (2021: \u20ac42 million). In 2022,
\n\u20ac17 million of impairment losses were recognized in the
\nstatement of income (2021: \u20ac11 million) and \u20ac8 million
\nwas reversed (2021: \u20ac11 million). Since the total amount
\nof impairment losses under IFRS 9 is not significant, no
\nseparate disclosure was made in the statement of income.
\nAllowance for impairment of trade receivables
\nIn \u20ac millions
2021
2022
\nBalance at January 1
58
42
\nAdditions charged to income
11
17
\nRelease of unused amounts
(11)
(8)
\nUtilization
(17)
(9)
\nAcquisitions
\u2014
2
\nCurrency exchange differences
1
(2)
\nBalance at December 31
42
42
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18966": {
"value": "Note 16 INVENTORIES The total carrying value of inventories as per December
\n31, 2022 has increased compared to December 31, 2021,
\nmainly as a result of significant increases in raw material
\nprices throughout 2022.
\nInventories
\nIn \u20ac millions, at December 31
2021
2022
\nRaw materials and supplies
611
676
\nWork in progress
94
104
\nFinished products and goods for resale
945
1,063
\nTotal
1,650
1,843
\nOf the total carrying value of inventories at year-end
\n2022, \u20ac16 million is measured at net realizable value
\n(2021: \u20ac18 million). In 2022, \u20ac86 million was recognized
\nin the statement of income for the write-down of invento-
\nries (2021: \u20ac67 million), while \u20ac30 million of write-downs
\nwere reversed (2021: \u20ac32 million). There are no invento-
\nries subject to retention of title clauses.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInventoriesExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18997": {
"value": "Note 17 TRADE AND OTHER RECEIVABLES
\nTrade and other receivables
\nIn \u20ac millions, at December 31
2021
2022
\nTrade receivables
1,973
2,123
\nPrepaid expenses
37
58
\nTax receivables other than income tax
145
156
\nFX contracts
15
18
\nReceivables from associates
9
4
\nOther receivables
160
88
\nTotal
2,339
2,447
\nTrade and other receivables can be broken down as
\nper the table above. Other receivables consist of a large
\nnumber of individually immaterial items. In 2021, Other
\nreceivables included the current portion of \u20ac53 million (\u00a344
\nmillion) of the escrow account for the Akzo Nobel (CPS)
\nPension Scheme in the UK, that was repaid in 2022.
\nAgeing of trade receivables
\nIn \u20ac millions, at December 31
2021
2022
\nPerforming trade receivables
1,849
1,987
\nPast due trade receivables
\n< 3 months
102
104
\n> 3 months
64
74
\nAllowance for impairment
(42)
(42)
\nTotal trade receivables
1,973
2,123
\nTrade receivables are presented net of an allowance for
\nimpairment of \u20ac42 million (2021: \u20ac42 million). In 2022,
\n\u20ac17 million of impairment losses were recognized in the
\nstatement of income (2021: \u20ac11 million) and \u20ac8 million
\nwas reversed (2021: \u20ac11 million). Since the total amount
\nof impairment losses under IFRS 9 is not significant, no
\nseparate disclosure was made in the statement of income.
\nAllowance for impairment of trade receivables
\nIn \u20ac millions
2021
2022
\nBalance at January 1
58
42
\nAdditions charged to income
11
17
\nRelease of unused amounts
(11)
(8)
\nUtilization
(17)
(9)
\nAcquisitions
\u2014
2
\nCurrency exchange differences
1
(2)
\nBalance at December 31
42
42",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19100": {
"value": "Note 18 GROUP EQUITY Composition of share capital at year-end 2021
\nAuthorized
Subscribed
\nIn \u20ac
share capital
share capital
\nPriority shares (48 with nominal value
19,200
19,200
\nof \u20ac400)
\nCumulative preferred shares (200
100,000,000
\u2014
\nmillion with nominal value of \u20ac0.50)
\nCommon shares (500 million with
250,000,000
90,804,755
\nnominal value of \u20ac0.50)
\nTotal
350,019,200
90,823,955
\nComposition of share capital at year-end 2022
\nAuthorized
Subscribed
\nIn \u20ac
share capital
share capital
\nPriority shares (48 with nominal value
19,200
19,200
\nof \u20ac400)
\nCumulative preferred shares (200
100,000,000
\u2014
\nmillion with nominal value of \u20ac0.50)
\nCommon shares (500 million with
250,000,000
87,187,614
\nnominal value of \u20ac0.50)
\nTotal
350,019,200
87,206,814
\nOutstanding common shares
\nNumber of shares
2021
2022
\nOutstanding at January 1
190,579,841
181,609,509
\nIssued in connection to perfor-
277,517
214,262
\nmance-related share plan and share-
\nmatching plan
\nShares cancelled related to share
(695,776)
(2,744,210)
\nbuyback from previous year
\nShares bought back during the year
(11,296,283)
(8,651,230)
\nShares bought back during the year
2,744,210
3,946,896
\nnot yet cancelled
\nOutstanding at December 31
181,609,509
174,375,227
\nWeighted average number of common shares
\nNumber of shares
2021
2022
\nWeighted average number of
184,959,866
174,735,139
\ncommon shares
\nNon-controlling interests
\n2021
2022
\nEquity stake
Equity stake
\nGroup entity
Partner at year-end 2022
%
in \u20ac millions
%
in \u20ac millions
\nAkzo Nobel India Limited, Kolkata, India
Privately held, India
25.24
56
25.24
54
\nPT ICI Paints Indonesia, Jakarta, Indonesia
PT DWI Satrya Utama, Indonesia
45.00
34
45.00
31
\nAkzo Nobel Kemipol A.S., Izmir, T\u00fcrkiye
Altan, Eyy\u00fcp and other family members
49.00
19
49.00
24
\nAkzo Nobel Paints (Malaysia) Sdn Bhd, Kuala
Permodalan Nasional Berhad, Malaysia
40.05
21
40.05
20
\nLumpur, Malaysia
\nInternational Paint of Shanghai Co. Ltd,
Shanghai Huayi Fine Chemical Co. Ltd and China
49.00
15
49.00
16
\nShanghai, China
National Shipbuilding Equipment & Materials Corp.
\nAkzo Nobel Saudi Arabia Ltd, Saudi Arabia
Yousuf Bin Ahmed Kanoo Co. Ltd, Saudi Arabia
40.00
12
40.00
14
\nAkzo Nobel Oman SAOC, Muscat, Oman
Omar Zawawi Establishment LLC, Oman
50.00
11
50.00
12
\nAkzo Nobel UAE Paints L.L.C., United Arab
Kanoo Group, United Arab Emirates
40.00
8
40.00
8
\nEmirates
\nSociete Tunisienne de Peintures Astral S.A.,
Several people
40.00
7
40.00
8
\nMegrine, Tunisia
\nInternational Paint (Korea) Ltd, Busan, South-Korea
Noroo Holdings, South Korea
40.00
11
40.00
6
\nAkzo Nobel Paints (Guangzhou) Limited,
Guangzhou Hi-tech Investment Group
10.00
5
10.00
5
\nGuangzhou, China
Corporation Ltd
\nOthers
12
17
\nTotal
211
215
\nSubscribed share capital
\nFor further details on subscribed share capital, refer to
\nNote F in the Company financial statements.
\nCumulative translation reserve
\nCumulative translation reserves comprise all foreign
\nexchange differences arising from the translation of the
\nfinancial statements of foreign operations, as well as from
\nthe translation of intercompany loans with a permanent
\nnature and liabilities and derivatives that hedge the net
\ninvestments in a foreign subsidiary.
\nEquity-settled transactions
\nEquity-settled transactions consist of the performance
\nrelated and restricted share plan and share-matching plan,
\nwhereby shares are granted to the Board of Management,
\nExecutive Committee, other executives and certain
\nnon-executive employee categories. For details on share-
\nbased compensation, refer to Note 7.
\nDividend
\nOur dividend policy is to pay a stable to rising dividend.
\nIn 2022, an interim dividend of \u20ac0.44 (2021: \u20ac0.44) per
\ncommon share was paid. We propose a 2022 final divi-
\ndend of\u00a0\u20ac1.54 (2021: \u20ac1.54) per common shar
e, which
\nwould equal a total 2022 dividend of \u20ac1.98 (2021: \u20ac1.98).
\nShare buybacks
\nIn February 2021, a \u20ac1 billion share buyback program was
\nannounced, which was completed in January 2022.
\nIn February 2022, a \u20ac500 million share buyback program was
\nannounced which was completed in 2022. As at December
\n31, 2022, a total of 7.3 million shares had been acquired
\nunder this program, of which 3.3 million were cancelled.
\nDuring 2022, 8,651,230 common shares were repur-
\nchased (2021: 11,296,283). The total amount of shares
\ncancelled was 7,448,544; cancelled shares are related
\nto share buyback in the current and the previous year
\n(2021: 9,247,849). For further details on weighted average
\nnumber of shares, refer to Note 10.
\nNon-controlling interests
\nNone of the non-controlling interests are considered
\nindividually material to the group. The effects of share
\ntransactions with non-controlling interest shareholders
\nare recorded in equity insofar these do not lead to
\nchanges in control.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19102": {
"value": "Composition of share capital at year-end 2021
\nAuthorized
Subscribed
\nIn \u20ac
share capital
share capital
\nPriority shares (48 with nominal value
19,200
19,200
\nof \u20ac400)
\nCumulative preferred shares (200
100,000,000
\u2014
\nmillion with nominal value of \u20ac0.50)
\nCommon shares (500 million with
250,000,000
90,804,755
\nnominal value of \u20ac0.50)
\nTotal
350,019,200
90,823,955
\nComposition of share capital at year-end 2022
\nAuthorized
Subscribed
\nIn \u20ac
share capital
share capital
\nPriority shares (48 with nominal value
19,200
19,200
\nof \u20ac400)
\nCumulative preferred shares (200
100,000,000
\u2014
\nmillion with nominal value of \u20ac0.50)
\nCommon shares (500 million with
250,000,000
87,187,614
\nnominal value of \u20ac0.50)
\nTotal
350,019,200
87,206,814
Subscribed share capital
\nFor further details on subscribed share capital, refer to
\nNote F in the Company financial statements.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19179": {
"value": "Non-controlling interests
\n2021
2022
\nEquity stake
Equity stake
\nGroup entity
Partner at year-end 2022
%
in \u20ac millions
%
in \u20ac millions
\nAkzo Nobel India Limited, Kolkata, India
Privately held, India
25.24
56
25.24
54
\nPT ICI Paints Indonesia, Jakarta, Indonesia
PT DWI Satrya Utama, Indonesia
45.00
34
45.00
31
\nAkzo Nobel Kemipol A.S., Izmir, T\u00fcrkiye
Altan, Eyy\u00fcp and other family members
49.00
19
49.00
24
\nAkzo Nobel Paints (Malaysia) Sdn Bhd, Kuala
Permodalan Nasional Berhad, Malaysia
40.05
21
40.05
20
\nLumpur, Malaysia
\nInternational Paint of Shanghai Co. Ltd,
Shanghai Huayi Fine Chemical Co. Ltd and China
49.00
15
49.00
16
\nShanghai, China
National Shipbuilding Equipment & Materials Corp.
\nAkzo Nobel Saudi Arabia Ltd, Saudi Arabia
Yousuf Bin Ahmed Kanoo Co. Ltd, Saudi Arabia
40.00
12
40.00
14
\nAkzo Nobel Oman SAOC, Muscat, Oman
Omar Zawawi Establishment LLC, Oman
50.00
11
50.00
12
\nAkzo Nobel UAE Paints L.L.C., United Arab
Kanoo Group, United Arab Emirates
40.00
8
40.00
8
\nEmirates
\nSociete Tunisienne de Peintures Astral S.A.,
Several people
40.00
7
40.00
8
\nMegrine, Tunisia
\nInternational Paint (Korea) Ltd, Busan, South-Korea
Noroo Holdings, South Korea
40.00
11
40.00
6
\nAkzo Nobel Paints (Guangzhou) Limited,
Guangzhou Hi-tech Investment Group
10.00
5
10.00
5
\nGuangzhou, China
Corporation Ltd
\nOthers
12
17
\nTotal
211
215
Non-controlling interests
\nNone of the non-controlling interests are considered
\nindividually material to the group. The effects of share
\ntransactions with non-controlling interest shareholders
\nare recorded in equity insofar these do not lead to
\nchanges in control.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNoncontrollingInterestsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19275": {
"value": "Cumulative translation reserve Cumulative translation reserves comprise all foreign
\nexchange differences arising from the translation of the
\nfinancial statements of foreign operations, as well as from
\nthe translation of intercompany loans with a permanent
\nnature and liabilities and derivatives that hedge the net
\ninvestments in a foreign subsidiary.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19292": {
"value": "Dividend Our dividend policy is to pay a stable to rising dividend.
\nIn 2022, an interim dividend of \u20ac0.44 (2021: \u20ac0.44) per
\ncommon share was paid. We propose a 2022 final divi-
\ndend of\u00a0\u20ac1.54 (2021: \u20ac1.54) per common shar
e, which
\nwould equal a total 2022 dividend of \u20ac1.98 (2021: \u20ac1.98).",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDividendsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19337": {
"value": "Note 19 POST-RETIREMENT BENEFIT PROVISIONS
\nPost-retirement benefit provisions relate to defined benefit
\npension and other post-retirement benefit plans, includ-
\ning healthcare or welfare plans. The largest defined benefit
\npension plans are the ICI Pension Fund (ICIPF) and the
\nAkzo Nobel (CPS) Pension Scheme (CPS) in the UK which
\ntogether account for 86% of defined benefit obligations
\n(DBO) and 90% of plan assets. Other pension plans include
\namong others the largely unfunded plans in Germany, the
\nplans in the US and certain other smaller plans in the UK.
\nThe benefits of these pension plans are based primarily on
\nyears of service and employees\u2019 compensation. The funding
\npolicy for the plans is consistent with local requirements
\nin the countries of establishment. We also provide certain
\nhealthcare and life insurance benefits to retired employees,
\nmainly in the US and the Netherlands.
\nValuations of the obligations under the plans are carried out
\nregularly by independent qualified actuaries. We accrue for
\nthe expected costs of providing such post-retirement bene-
\nfits during the service years of the employees. Governance
\nof the benefit plans is the responsibility of the Executive
\nCommittee Pensions. This committee provides oversight of
\nthe costs and risks of the plans including oversight of the
\nimpact of the plans on the company in terms of cash flow,
\npension expenses and the balance sheet. The committee
\ndevelops and maintains policies on benefit design, funding,
\nasset allocation and assumption setting.
\nPension plans
\nAlmost all of the defined benefit plans have been closed
\nto new members since the early to mid-2000s, although
\nin many plans long-serving employees continue to accrue
\nbenefits. For plans in the US, benefit accrual is frozen
\nand employees participate in defined contribution plans
\nfor future service. In countries where plans are closed,
\nnew employees are eligible to join a defined contribution
\narrangement. In countries in high growth markets, pension
\nschemes currently are not material. Unless mandated by
\nlaw, it is our policy that any new plans are established as
\ndefined contribution plans.
\nThe most significant risks that we run in relation to
\ndefined benefit plans are investment returns falling short
\nof expectations, low discount rates, inflation exceeding
\nexpectations, retirees living longer than expected and
\nlegislation changes. The assets and liabilities of each of the
\nfunded plans are held outside of the company in a trust or
\na foundation, which is governed by a board of fiduciaries
\nor trustees, depending on the legal arrangements in the
\ncountry concerned. The primary objective with regards
\nto the investment of pension plan assets is to ensure
\nthat each individual plan has sufficient funds available to
\nsatisfy future benefit obligations in accordance with local
\nlegal and legislative requirements. For this purpose, we
\nwork closely with plan trustees or fiduciaries to develop
\ninvestment strategies. Studies are carried out periodically
\nto analyze and understand the trade-off between expected
\ninvestment returns, volatility of outcomes and the impact
\non cash contributions. We aim to strike a cautious balance
\nbetween these factors in order to agree affordable contri-
\nbution schedules with plan fiduciaries.
\nPlan assets principally consist of insurance (annuity)
\npolicies, long-term interest-earning investments and
\n(investment funds with holdings primarily in) quoted equity
\nsecurities. Our largest plans use derivatives (such as
\nindex futures, currency forward contracts and swaps) to
\nreduce volatility of underlying variables, for efficient portfo-
\nlio management and to improve the liability matching
\ncharacteristics of the assets. Limits have been set
\non the use of derivatives which are periodically subject
\nto review for compliance with the pension fund\u2019s invest-
\nment strategy.
\nIn line with our proactive pension risk management
\nstrategy, we seek to reduce risk in our pension plans over
\ntime. We evaluate potential de-risking opportunities on an
\nongoing basis. Future de-risking transactions may have
\nboth cash flow and balance sheet impacts which may be
\nsubstantial, as had some of the de-risking actions already
\ntaken. The cost of fully removing risk would exceed esti-
\nmated funding deficits.
\nBetween 2014 and 2022, ICIPF and a smaller UK plan,
\nthe ICI Specialty Chemicals Pension Fund (ISCPF), have
\ninvested in annuity buy-in contracts that aim to hedge all
\nkey risks related to their pensioner populations.
\nIn October 2022, the Trustee of the ICIPF entered into a
\nfurther annuity buy-in agreement with Legal and General
\nAssurance Society Limited. It covers, in aggregate, \u00a354
\nmillion (\u20ac62 million) of pensioner liabilities (insurer valua-
\ntion). The buy-in involved the purchase of a bulk annuity
\npolicy under which the insurer will pay to ICIPF amounts
\nequivalent to the benefits payable to members who have
\nrecently become pensioners. The pension liabilities remain
\nwith, and the matching annuity policies are held within,
\nICIPF. The accounting impact of the transaction is a lower
\nvaluation of the plan assets giving a reduction in other
\ncomprehensive income of \u00a312 million (\u20ac14 million).
\nIn November 2022, the Trustee of the CPS entered into its
\nfirst annuity buy-in agreement with Phoenix Life Limited.
\nIt covers, in aggregate, \u00a3640 million (\u20ac724 million) of
\npensioner liabilities (insurer valuation). The buy-in involved
\nthe purchase of a bulk annuity policy under which the
\ninsurer will pay to CPS amounts equivalent to the benefits
\npayable to a section of its pensioners. The pension
\nliabilities remain with, and the matching annuity policies are
\nheld within, CPS. The accounting impact of the transaction
\nis a lower valuation of the plan assets giving a reduction in
\nother comprehensive income of \u00a354 million (\u20ac62 million).
\nBy purchasing bulk annuities, the ICIPF, CPS and ISCPF
\nTrustees have taken significant steps in actively de-risking
\nliabilities and reducing the risk that AkzoNobel will be
\nrequired to contribute additional cash in the future.
\nCPS also has an insurance contract to hedge longevity
\nrisk in respect of a portion of its pensioners not impacted
\nby the recent buy-in transaction.
\nOn November 25, 2020, correspondence between the
\nChancellor of the Exchequer and the UK Statistics Author-
\nity (UKSA) was published regarding the future of the Retail
\nPrice Index (RPI) measurement of inflation. With effect
\nfrom February 2030 onwards, increases in the RPI will be
\naligned with those under the Consumer Prices Index (CPI)
\nwith owner occupiers\u2019 housing costs (CPIH). Broadly this
\nis expected to result in RPI inflation being 1% lower in the
\nlonger term than under the existing methodology. The infla-
\ntion assumption continues to be calculated using a market
\nbreakeven inflation rate and the CPI inflation assumption,
\non which the benefits of some plans are based, is set with
\nreference to RPI. Until 2030, the CPI inflation assumption
\nis calculated as 1% below RPI and from 2030 onwards as
\n0.1% below RPI.
\nOn April 22, 2021, a court ruling resulted in a \u00a320 million
\n(\u20ac23 million) past service credit in one of the UK\u2019s
\npension plans, the J.P. McDougall & Co Limited Staff
\nAkzoNobel Report 2022
|
Financial statements
126
Pension & Life Assurance Scheme, booked as an identi-
\nfied item. The court ruling rectified a deed change with
\nrespect to the retirement ages from which members will
\nreceive benefits.
\nThe remaining pension plans primarily represent plans
\naccounted for as defined contribution plans. This includes,
\namong others, the Pension Fund APF in the Netherlands
\nand the 401k Plan in the US.
\nReconciliation balance sheet
\n2021
2022
\nPlan
Plan
\nIn \u20ac millions
DBO
assets
Total
DBO
assets
Total
\nBalance at the beginning of the period
(14,184)
15,014
830
(14,310)
15,330
1,020
\n(31)
\nStatement of income
\nCurrent service cost
(32)
\u2014
(32)
(31)
\u2014
\nPast service cost
22
\u2014
22
\u2014
\u2014
\u2014
\nSettlements
\u2014
\u2014
\u2014
18
(18)
\u2014
\nNet interest (charge)/income on net defined benefit (liability)/asset
(193)
206
13
(254)
272
18
\nCost recognized in statement of income
(203)
206
3
(267)
254
(13)
\n(279)
\nRemeasurements recognized in Other comprehensive income
\nActuarial (loss)/gain due to liability experience
(123)
\u2014
(123)
(279)
\u2014
\nActuarial (loss)/gain due to liability financial assumption changes
289
\u2014
289
3,754
\u2014
3,754
\nActuarial (loss)/gain due to liability demographic assumption changes
56
\u2014
56
18
\u2014
18
\nActuarial loss due to buy-ins
\u2014
(30)
(30)
\u2014
(76)
(76)
\nReturn on plan assets (less than)/greater than discount rate
\u2014
(202)
(202)
\u2014
(3,784)
(3,784)
\nRemeasurement effects recognized in Other comprehensive income
222
(232)
(10)
3,493
(3,860)
(367)
\n70
\nCash \ufb02ow
\nEmployer contributions
\u2014
94
94
\u2014
70
\nEmployee contributions
(2)
2
\u2014
(2)
2
\u2014
\nBenefits and administration costs paid from plan assets
852
(852)
\u2014
842
(842)
\u2014
\nNet cash \ufb02ow
850
(756)
94
840
(770)
70
\n(1)
\nOther
\nAcquisitions/divestments/transfers
1
(1)
\u2014
\u2014
(1)
\nChanges in exchange rates
(996)
1,099
103
662
(760)
(98)
\nTotal other
(995)
1,098
103
662
(761)
(99)
\nBalance at the end of the period
(14,310)
15,330
1,020
(9,582)
10,193
611
\nAsset restriction
(3)
(9)
\nNet balance sheet position
1,017
602
\nPresentation of Net balance sheet position
\n1,029
Other financial non-current assets
1,638
\nPost-retirement benefit provisions
(578)
(387)
\nCurrent portion of provisions
(43)
(40)
\nNet balance sheet position
1,017
602
\nThe ITP2 plan in Sweden is financed through insurance
\nwith the Alecta Tj\u00e4nstepension \u00d6msesidigt (i.e. Alecta
\npension insurance, mutual) insurance company (Alecta)
\nand is classified as a multi-employer defined benefit plan.
\nAs AkzoNobel does not have access to sufficient informa-
\ntion from Alecta to enable defined benefit accounting
\ntreatment, it is accounted for as a defined contribution
\nplan. Contributions in 2022 were \u20ac2 million (2021: \u20ac2
\nmillion). Alecta\u2019s funding ratio is normally allowed to vary
\nbetween 125% and 175%. The most recently quoted ratio
\nat December\u00a02022 stood at 172%.
\nThe expenses of all plans accounted for as defined
\ncontribution plans in AkzoNobel totaled \u20ac89 million in 2022
\n(2021: \u20ac83 million).
\nDBO at funded and unfunded pension plans*
\nIn \u20ac millions, at December 31
2021
2022
\nWholly or partly funded plans
14,005
9,229
\nUnfunded plans
179
246
\nTotal
14,184
9,475
\n* Excludes other post-retirement benefit plans.
\nOther post-retirement bene\ufb01t plans
\nAkzoNobel provides certain healthcare and life insurance
\nbenefits to retired employees, mainly in the US and the
\nNetherlands. The risks to which the US healthcare plans
\nexpose AkzoNobel include the risk of future increases in
\nthe cost of healthcare which would increase the cost of
\nmaintaining the plans. The benefit payments to retirees
\nunder the Dutch plan are frozen. Both plans expose
\nAkzoNobel to the risk of a decline in discount rates, which
\nincreases the plan obligations, and longevity risk as the
\nplans generally pay lifetime benefits.
\nReconciliation balance sheet
\nThe closing net balance sheet position of \u20ac602 million
\n(2021: \u20ac1,017 million) includes the pension plans (\u20ac709
\nmillion net asset; 2021: \u20ac1,143 million net asset) and other
\npost-retirement plans (\u20ac107 million liability; 2021: \u20ac126
\nmillion liability).
\nAdministrative expenses
\nIn addition to the expenses borne by the funds them-
\nselves, some expenses are borne directly by AkzoNobel.
\nAdministrative expenses, especially for the UK pension
\nAkzoNobel Report 2022
|
Financial statements
127
funds, of \u20ac26 million are included in 2022 operating
\nincome (2021: \u20ac22 million). In addition, we directly incurred
\nasset management expenses of \u20ac2 million (2021:
\n\u20ac3 million), which have been included in other compre-
\nhensive income.
\nInterest costs
\nInterest costs on the DBO for both pensions and other
\npost-retirement benefits, together with the interest income
\non plan assets, comprise the financing income related to
\npost-retirement benefits of \u20ac18 million (2021: \u20ac13 million),
\nrefer to Note 8.
\nPension plans in asset position
\nPension balances recorded under Financial non-current
\nassets totaled \u20ac1,029 million (2021: \u20ac1,638 million). The
\ndecrease in 2022 is due to \u20ac556 million of net actuarial
\nlosses and \u20ac89 million of exchange rate translation losses,
\npartially offset by \u20ac21 million of employer contributions and
\nnet income of \u20ac15 million, in the relevant plans.
\nThese assets could be recognized under IFRIC 14
\nbecause economic benefits are available in the form of
\nfuture refunds from the plan or reductions in future contri-
\nbutions to the plan, either during the life of the plan or on
\nthe (final) settlement of the plan liabilities.
\nPlan assets
\nThe equities and government bond debt assets have
\nquoted prices in active markets, although most are held
\nthrough funds comprised of such instruments which are
\nnot actively traded themselves. The total value of plan
\nassets not quoted in active markets is \u20ac6,666 million
\n(2021: \u20ac8,420 million), including the UK buy-in annuity
\npolicies totaling \u20ac6,078 million (2021: \u20ac7,698 million),
\ninvestments in real estate totaling \u20ac343 million (2021:
\n\u20ac469 million) and other investments in infrastructure and
\ninsurance policies. The UK buy-in annuity policies have a
\nvalue that is equal to the DBO of the pensioners covered
\nby the policies.
\nPlan assets did not directly include any of AkzoNobel\u2019s
\nown transferable financial instruments, nor any property
\noccupied by or assets used by the company.
\nCash \ufb02ows
\nIn 2023, we expect to contribute \u20ac49 million (2022: \u20ac56
\nmillion) to our defined benefit pension plans. We expect to
\npay a further \u20ac11 million (2022: \u20ac11 million) to our other
\npost-retirement benefit plans. No allowance is made for
\nany special one-off contributions that may arise in relation
\nto new de-risking opportunities.
\nSensitivity of DBO
\nThe actuarially calculated sensitivity effects on DBO shown
\nallow for an alternative value for each assumption while
\nthe other actuarial assumptions remain unchanged. This
\ntable illustrates the overall impact on DBO for the changes
\nshown, which management assessed could be reasonably
\npossible over a longer term from a sensitivity test perspec-
\ntive. It should be noted, however, that this analysis does
\nnot indicate and probability of such changes occurring,
\nnot does it preclude larger changes in any given period or
\nlonger term. In addition, the significance of the impact and
\nthe range of reasonably possible alternative assumptions
\nmay differ between the different plans that comprise the
\ntotal DBO. In particular, the plans differ in benefit design,
\ncurrency and average term, meaning that different assump-
\ntions have different levels of significance for each plan.
\nThe sensitivity analysis is intended to illustrate the inher-
\nent uncertainty in the valuation of the DBO under market
\nconditions at the measurement date. Its results, in
\nprinciple, cannot be extrapolated due to increasing non-
\nPlan assets
\n2021
2022
\nIn \u20ac millions, at December 31
Total
Percentage of total
Total
Percentage of total
\nEquities
332
2
225
2
\nDebt - fixed interest government bonds
1,444
9
580
6
\nDebt - index-linked government bonds
3,221
21
1,230
12
\nDebt - corporate and other bonds
1,770
12
1,394
13
\nUK buy-in annuity policies
7,698
50
6,078
60
\nCash and cash equivalents
204
1
166
2
\nOther
661
5
520
5
\nTotal
15,330
100
10,193
100
\nCash \ufb02ows
\nPensions
Other post-retirement bene\ufb01ts
\nIn \u20ac millions
2022
2023
2022
2023
\nRegular contributions
43
41
11
11
\nTop-ups
13
8
\u2014
\u2014
\nTotal
56
49
11
11
\nSensitivity of DBO to change in assumptions
\nOther post-
\nICIPF
CPS
Other
retirement
\nIn \u20ac millions
UK
UK
pension plans
bene\ufb01ts
Total
\nDiscount rate: 0.5% decrease
274
143
73
5
495
\nPrice inflation: 0.5% increase*
158
85
38
\u2014
281
\nLife expectancy: one year increase from age 60
367
86
41
4
498
\nMaturity information
\nWeighted average duration of DBO (years)
9.2
12.0
11.6
8.7
10.2
\n*
The sensitivity to price inflation assumption includes corresponding changes to all inflation-related compensation increases,
\npensions in payment and pensions in deferment.
\n128
AkzoNobel Report 2022
|
Financial statements
linear effects that changes in the key actuarial assump-
\ntions, when deviating further from the assumptions
\npresented, may have on the total DBO. Any management
\nactions that may be taken to mitigate the inherent risks in
\nthe post-retirement defined benefit plans are not reflected
\nin this analysis, as they would normally be reflected in plan
\nasset changes rather than DBO changes.
\nThe sensitivities in the table only apply to the DBO and
\nnot to the net amounts recognized in the balance sheet.
\nMovements in the fair value of plan assets (which include
\nthe de-risking instruments) would, to a significant extent,
\nbe expected to offset movements in the DBO resulting
\nfrom changes in the given assumptions.
\nAt ICIPF, the annuity buy-in contracts cover 99% of
\npensioner liabilities (2021: 99%) and 88% of total liabilities
\n(2021: 84%).
\nAt CPS, the annuity buy-in contract covers 42% of
\npensioner liabilities (2021: 0%) and 28% of total liabilities
\n(2021: 0%). Also at CPS, the longevity hedge contract
\ncovers 48% of pensioner liabilities (2021: 48%) and 30%
\nof total liabilities (2021: 30%)
\nFuture bene\ufb01t payments
\nThe figures in the table on the right are the estimated
\nfuture benefit payments to be paid from the plans to
\nbeneficiaries over the next ten years.
\nFuture bene\ufb01t payments
\nOther post-
\nIn \u20ac millions
Pensions
retirement bene\ufb01ts
\n2023
816
11
\n2024
818
11
\n2025
826
10
\n2026
832
10
\n2027
842
9
\n2028 - 2032
4,321
41
\nKey \ufb01gures and assumptions by plan
\n2021
2022
\nOther post-
Other post-
\nICIPF
CPS
Other pension
retirement
ICIPF
CPS
Other
retirement
\nIn \u20ac millions or %
UK
UK
plans
bene\ufb01ts
Total
UK
UK pension plans
bene\ufb01ts
Total
\nPercentage of total DBO
61%
26%
12%
1%
100%
61%
25%
13%
1%
100%
\nDefined Benefit Obligation at year-end
(8,702)
(3,686)
(1,796)
(126)
(14,310)
(5,875)
(2,362)
(1,238)
(107)
(9,582)
\nFair value of plan assets at year-end
9,563
4,353
1,414
\u2014
15,330
6,293
2,895
1,005
\u2014
10,193
\nPlan funded status
861
667
(382)
(126)
1,020
418
533
(233)
(107)
611
\nRestriction on asset recognition
\u2014
\u2014
(3)
\u2014
(3)
\u2014
\u2014
(9)
\u2014
(9)
\nAmounts recognized on the balance sheet
861
667
(385)
(126)
1,017
418
533
(242)
(107)
602
\nPercentage of total current service cost
9%
28%
63%
\u2014
100%
6%
26%
68%
\u2014
100%
\nCurrent service cost
(3)
(9)
(20)
\u2014
(32)
(2)
(8)
(21)
\u2014
(31)
\nEmployer contributions
3
37
44
10
94
\u2014
13
45
12
70
\nDiscount rate
1.8%
1.9%
1.8%
3.3%
1.9%
4.9%
4.9%
4.6%
5.9%
4.9%
\nRate of compensation increase
1.5%
1.4%
2.0%
\u2014
1.5%
1.5%
1.4%
2.0%
\u2014
1.5%
\nInflation
3.5%
3.4%
2.3%
\u2014
3.3%
3.3%
3.3%
2.3%
\u2014
3.2%
\nPension increases
3.2%
2.8%
2.3%
\u2014
3.0%
3.1%
2.7%
2.2%
\u2014
2.9%
\nLife expectancy (in years)
\nCurrently aged 60
\nMales
26.2
26.2
26.2
25.8
26.2
26.2
26.2
25.7
25.8
26.1
\nFemales
27.7
29.0
28.8
27.8
28.2
27.8
29.1
28.1
27.8
28.2
\nCurrently aged 45, from age 60
\nMales
27.3
27.3
27.6
26.9
27.3
27.3
27.3
27.0
26.8
27.3
\nFemales
28.9
30.2
30.0
28.8
29.4
29.0
30.2
29.4
28.8
29.3
\n129
AkzoNobel Report 2022
|
Financial statements
Key plan details for the two largest pension plans
\n1
\nICI Pension Fund, UK
Akzo Nobel (CPS) Pension Scheme, UK
\nType of plan
Defined benefit, based upon years of service and final
Defined benefit, based upon years of service and final
\nsalary
salary
\nBenefits
Retirement pension for employee Dependents\u2019 pensions
Retirement pension for employee Dependents\u2019 pensions
\non death of employee/pensioner
on death of employee/pensioner
\nOptions for ill health early retirement
Options for ill health early retirement
\nPension increases (main benefit
Annually linked to UK RPI with a maximum of 5%
Annually linked to UK CPI with a maximum of 5%
\nsection)
\nPlan structure
Plans are set up under a trust and are tax approved
Plans are set up under a trust and are tax approved
\nGovernance
Trustee directors:
Trustee directors:
\nThree member-nominated
Three member-nominated
\nFour appointed with the agreement of Law Debenture
Two company-nominated
\nOne independent (Law Debenture)
One independent (Law Debenture)
\nRegulatory framework
The plans are tax approved and assets are held in trust for the benefit of participants. The trustees have a legal
\nduty to manage the trust in the best interests of participants. Investment strategy is controlled by the trustees in
\nconsultation with the company
\nFunding basis
A plan specific basis must be agreed with each trustee board in accordance with UK regulations. The basis is not
\nthe same as the IFRS calculation as it uses more prudent assumptions about life expectancy and the discount
\nrates reflect prudent estimates of the expected return on assets actually held, thus the trustees\u2019 investment strate-
\ngies will impact the discounted value of liabilities
\nFrequency of funding reviews
Normally every three years
Normally every three years
\nLatest completed valuation
March 31, 2020
March 31, 2020
\nFunding deficit at latest completed
\u00a323 million (\u20ac27 million) surplus
\u00a362 million (\u20ac73 million) deficit
\nvaluation
\n1,2
\nRecovery plan
As there were sufficient assets to cover the Fund's
\u00a326 million (\u20ac31 million) in 2021 and \u00a34 million (\u20ac5
\ntechnical provisions, a recovery plan is not required
million) in 2022, paid in March in each year from an
\nescrow account pre-funded with \u00a3142 million (\u20ac161
\nmillion)
\n3
\nin February 2019
\nNext funding review
March 31, 2023 (due to be completed before June 30,
March 31, 2023 (due to be completed before
\n2024)
June 30, 2024)
\nAsset allocation at March 31, 2022
\nMatching:
99.8%
84%
\nReturn seeking:
0.2%
16%
\nBuy-in annuity contracts cover 99% of pensioner
The longevity hedge contract covers 48% of pensioner
\nliabilities and 84% of total liabilities
liabilities and 30% of total liabilities
\nMembership at March 31, 2022
\nActive
71
273
\nDeferred
5,338
5,427
\nPensioner
35,032
16,570
\nTotal
40,441
22,270
\n1
\nAmounts in euro are a convenience translation using the December 31, 2022, exchange rate, unless indicated otherwise.
\n2
\nBased on local valuation regulations.
\n3
\nActual rate at time of transfer.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDefinedBenefitPlansExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20299": {
"value": "Note 20 OTHER PROVISIONS AND AND CONTINGENT LIABILITIES
\nGeneral
\nProvisions are recognized when an outflow of economic
\nbenefits for settlement is probable and the amount can
\nbe reliably estimated. It should be understood that, in light
\nof possible future developments, such as: (a) potential
\nadditional lawsuits; (b) possible future settlements; and
\n(c) rulings or judgments in pending lawsuits, certain
\ncases may result in additional liabilities and related costs.
\nAt this point in time, we cannot estimate any additional
\namount of loss or range of loss in excess of the recorded
\namounts with sufficient certainty to allow such amount or
\nrange of amounts to be meaningful. While the outcome
\nof said cases, claims and disputes cannot be predicted
\nwith certainty, we believe, based upon legal advice and
\ninformation received, that the final outcome will not
\nmaterially affect our consolidated financial position but
\ncould be material to our results of operations or cash flows
\nin any one accounting period.
\nProvisions for restructuring of activities
\nProvisions for restructuring of activities comprise of accru-
\nals for certain employee benefits and for costs which are
\ndirectly associated with plans to exit or cease specific
\nactivities and closing down of facilities. For all restructuring
\nprovisions, a detailed formal plan exists and the imple-
\nmentation of the plan has started or the plan has been
\nannounced before the balance sheet date. Most restruc-
\nturing plans are expected to be completed within one year
\nfrom the balance sheet date.
\nEnvironmental liabilities
\nWe are confronted with costs arising out of environmental
\nlaws and regulations, which include obligations to eliminate
\nor limit the effects on the environment of the disposal or
\nrelease of certain wastes or substances at various sites.
\nProceedings involving environmental matters, such as the
\nalleged discharge of chemicals or waste materials into
\nthe air, water, or soil, are pending against us in various
\ncountries. In some cases, this concerns sites divested
\nin prior years or derelict sites belonging to companies
\nacquired in the past.
\nThe provision has been discounted using an average
\npre-tax discount rate of 3.8% (2021: 1.0%).
\n130
AkzoNobel Report 2022
|
Financial statements
Movements in other provisions
\nLiabilities to
\nRestructuring
Environmental
(former)
\nIn \u20ac millions
of\u00a0activities
costs
employees
Sundry
Total
\nBalance at January 1, 2022
43
66
132
99
340
\nAdditions made during the year
49
10
15
66
140
\nUtilization
(41)
(14)
(14)
(62)
(131)
\nAmounts reversed during the year
(9)
(6)
(17)
(10)
(42)
\nUnwind of discount
\u2014
(6)
(11)
(1)
(18)
\nAcquisitions
\u2014
\u2014
5
2
7
\nChanges in exchange rates
\u2014
1
(3)
(1)
(3)
\nBalance at December 31, 2022
42
51
107
93
293
\nNon-current portion of provisions
1
38
88
40
167
\nCurrent portion of provisions
41
13
19
53
126
\nBalance at December 31, 2022
42
51
107
93
293
\nLiabilities to (former) employees
\nLiabilities to (former) employees consist of employer liability
\nplans, jubilee plans and other long-term compensation
\nplans. The majority of the cash outflows related to liabilities
\nto (former) employees is expected to be after five years.
\nIn calculating the liabilities to (former) employees, a
\npre-tax discount rate of on average 5.0% (2021: 1.5%)
\nhas been used.
\nSundry provisions
\nSundry provisions relate to a variety of provisions, including
\nprovisions for (customer) claims, sales returns, guarantees
\nand other operational provisions. The majority of the cash
\noutflows related to sundry provisions is expected to be
\nwithin one to five years. In calculating the sundry provi-
\nsions, a pre-tax discount rate of on average 5.3% (2021:
\n1.0%) has been used.
\nContingent liabilities
\nEstimating the impact of environmental liabilities often is
\ncomplex and requires significant judgement. It requires
\nthe assessment of many (often interconnected) elements,
\nwhich contain varying levels of uncertainty. Environmental
\nliabilities can change substantially, among others due to
\nthe emergence of additional information on the nature or
\nextent of the contamination, the geological circumstances,
\nchanges in (the interpretation and enforcement of) environ-
\nmental regulations, new and evolving analytical and reme-
\ndiation techniques, success or lack of success of currently
\nanticipated clean-up methods, actions by governmental
\nagencies or private parties, success in allocating liability to
\nother potentially responsible parties, the financial viability
\nof other potentially responsible parties and third-party
\nindemnitors, and/or other factors.
\nEspecially for some sites for which we are faced with
\nrelatively new legislation, which are in the early stages of
\ndiscussions with regulators, and/or where there is limited
\ninformation available from earlier experience, there may be
\nconsiderable variability between the clean-up activities that
\nare currently being undertaken or planned and the ultimate
\nactions that could be required. For such sites, the costs for
\nthe earlier years might be rather reliably estimable, whilst
\nfor later years it is much more difficult, if possible
\nat all, to estimate the cost of environmental compliance
\nand remediation. If the level of uncertainty is such that no
\nreliable estimate can be made for the longer-term costs,
\nno provision for such costs is recorded. While it is not
\nfeasible to predict the outcome of all pending environmen-
\ntal exposures, it is reasonably possible that there will
\nbe a need for future (changes to) provisions for environ-
\nmental costs which, in management\u2019s opinion, based on
\ninformation currently available, would not have a material
\neffect on the company\u2019s financial position but could be
\nmaterial to the company\u2019s results of operations in any one
\naccounting period.
\nA number of claims against AkzoNobel are pending, many
\nof which are contested. We are also involved in legal
\ndisputes and disputes with tax authorities in several juris-
\ndictions. AkzoNobel has provided various indemnities and
\nguarantees in respect of past divestments to the relevant
\npurchasers and their permitted assigns (if applicable),
\nwhich in general are capped in time and/or amount (in
\nproportion to the value received). The provided guarantees
\nand indemnities have varying maturity periods. AkzoNo-
\nbel has received various claims under such indemnities
\nand guarantees. In some instances, AkzoNobel has been
\nnamed as a direct defendant despite the divestments.
\nAkzo Nobel N.V. has withdrawn its declarations of joint
\nand several liability under Article 403 of Book 2 of the
\nDutch Civil Code for certain Dutch former Specialty
\nChemicals subsidiaries divested as per October 1, 2018,
\nand is following the procedures to terminate its residual
\nliability under those declarations under Article 404 of
\nBook 2 of the Dutch Civil Code. One objection against
\nthe termination of residual liability is still pending and
\nAkzoNobel, Nouryon and Nobian continue to cooperate
\nto get this resolved.
\nCurrent portion of provisions
\nThe current portion of post-retirement benefit provisions
\n(\u20ac40 million) and the current portion of other provisions
\n(\u20ac126 million) add up to \u20ac166 million (2021: \u20ac149 million),
\nas reflected in the balance sheet.
\nDiscount rates
\nThe discount rates used in calculating the provisions
\nrecognized at December 31, 2022 are mentioned in the
\nparagraphs on provisions for environmental costs, liabilities
\nto (former) employees and sundry provisions. Changes in
\ndiscount rates will affect our consolidated financial posi-
\ntion. A sensitivity test showed that a one percentage point
\nincrease or decrease of discount rates will have an impact
\ndown or up, respectively, of \u20ac6 million on the provisions
\nrecognized at December 31, 2022.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfProvisionsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20452": {
"value": "Contingent liabilities Estimating the impact of environmental liabilities often is
\ncomplex and requires significant judgement. It requires
\nthe assessment of many (often interconnected) elements,
\nwhich contain varying levels of uncertainty. Environmental
\nliabilities can change substantially, among others due to
\nthe emergence of additional information on the nature or
\nextent of the contamination, the geological circumstances,
\nchanges in (the interpretation and enforcement of) environ-
\nmental regulations, new and evolving analytical and reme-
\ndiation techniques, success or lack of success of currently
\nanticipated clean-up methods, actions by governmental
\nagencies or private parties, success in allocating liability to
\nother potentially responsible parties, the financial viability
\nof other potentially responsible parties and third-party
\nindemnitors, and/or other factors.
\nEspecially for some sites for which we are faced with
\nrelatively new legislation, which are in the early stages of
\ndiscussions with regulators, and/or where there is limited
\ninformation available from earlier experience, there may be
\nconsiderable variability between the clean-up activities that
\nare currently being undertaken or planned and the ultimate
\nactions that could be required. For such sites, the costs for
\nthe earlier years might be rather reliably estimable, whilst
\nfor later years it is much more difficult, if possible
\nat all, to estimate the cost of environmental compliance
\nand remediation. If the level of uncertainty is such that no
\nreliable estimate can be made for the longer-term costs,
\nno provision for such costs is recorded. While it is not
\nfeasible to predict the outcome of all pending environmen-
\ntal exposures, it is reasonably possible that there will
\nbe a need for future (changes to) provisions for environ-
\nmental costs which, in management\u2019s opinion, based on
\ninformation currently available, would not have a material
\neffect on the company\u2019s financial position but could be
\nmaterial to the company\u2019s results of operations in any one
\naccounting period.
\nA number of claims against AkzoNobel are pending, many
\nof which are contested. We are also involved in legal
\ndisputes and disputes with tax authorities in several juris-
\ndictions. AkzoNobel has provided various indemnities and
\nguarantees in respect of past divestments to the relevant
\npurchasers and their permitted assigns (if applicable),
\nwhich in general are capped in time and/or amount (in
\nproportion to the value received). The provided guarantees
\nand indemnities have varying maturity periods. AkzoNo-
\nbel has received various claims under such indemnities
\nand guarantees. In some instances, AkzoNobel has been
\nnamed as a direct defendant despite the divestments.
\nAkzo Nobel N.V. has withdrawn its declarations of joint
\nand several liability under Article 403 of Book 2 of the
\nDutch Civil Code for certain Dutch former Specialty
\nChemicals subsidiaries divested as per October 1, 2018,
\nand is following the procedures to terminate its residual
\nliability under those declarations under Article 404 of
\nBook 2 of the Dutch Civil Code. One objection against
\nthe termination of residual liability is still pending and
\nAkzoNobel, Nouryon and Nobian continue to cooperate
\nto get this resolved.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20543": {
"value": "Note 21 NET DEBT Net debt
\nLong-term
Short-term
Short-term Cash and cash
\nin \u20ac millions
borrowings
borrowings
investments
equivalents
Net debt
\nNet debt at January 1, 2021
2,771
119
(250)
(1,606)
1,034
\nNet cash from operating activities
\u2014
\u2014
\u2014
(605)
(605)
\nAcquisitions
2
13
\u2014
73
88
\nInvestments in short-term investments
\u2014
\u2014
(56)
56
\u2014
\nRepayments of short-term investments
\u2014
\u2014
247
(247)
\u2014
\nNet cash from other investing activities
\u2014
\u2014
\u2014
252
252
\nBuy-out of non-controlling interests
\u2014
\u2014
\u2014
1
1
\nUnwind of discount and amortized cost
8
\u2014
1
\u2014
9
\nProceeds from borrowings
\u2014
1,143
\u2014
(1,143)
\u2014
\nBorrowings repaid
\u2014
(590)
\u2014
590
\u2014
\nNew/modification/disposal of lease contracts
62
(1)
\u2014
\u2014
61
\nTransfers from long-term to short-term
(855)
855
\u2014
\u2014
\u2014
\nMovement bank overdrafts and short-term bank loans
\u2014
19
\u2014
(19)
\u2014
\nDividends
\u2014
\u2014
\u2014
391
391
\nShare buyback
\u2014
\u2014
\u2014
1,135
1,135
\nNet cash from discontinued operations
\u2014
\u2014
\u2014
1
1
\nChanges in exchange rates
6
(2)
\u2014
(31)
(27)
\nNet debt at December 31, 2021
1,994
1,556
(58)
(1,152)
2,340
\nNet debt at January 1, 2022
1,994
1,556
(58)
(1,152)
2,340
\nNet cash from operating activities
\u2014
\u2014
\u2014
(263)
(263)
\nAcquisitions
71
2
\u2014
588
661
\nInvestments in short-term investments
\u2014
\u2014
(1,361)
1,361
\u2014
\nRepayments of short-term investments
\u2014
\u2014
1,084
(1,084)
\u2014
\nNet cash from other investing activities
\u2014
\u2014
\u2014
230
230
\nBuy-out of non-controlling interests
\u2014
\u2014
\u2014
\u2014
\u2014
\nUnwind of discount and amortized cost
9
5
\u2014
\u2014
14
\nProceeds from borrowings
1,359
8,152
\u2014
(9,511)
\u2014
\nBorrowings repaid
\u2014
(7,322)
\u2014
7,322
\u2014
\nNew/modification/disposal of lease contracts
79
\u2014
\u2014
\u2014
79
\nTransfers from long-term to short-term
(139)
139
\u2014
\u2014
\u2014
\nMovement bank overdrafts and short-term bank loans
\u2014
16
\u2014
(16)
\u2014
\nDividends
\u2014
\u2014
\u2014
379
379
\nShare buyback
\u2014
\u2014
\u2014
669
669
\nNet cash from discontinued operations
\u2014
\u2014
\u2014
9
9
\nChanges in exchange rates
(41)
(5)
(1)
18
(29)
\nNet debt at December 31, 2022
3,332
2,543
(336)
(1,450)
4,089
\nAnalysis of net debt by category
\nIn \u20ac millions, at December 31
2021
2022
\nBonds issued
1,740
2,934
\nLease liabilities
212
198
\nOther long-term borrowings
42
200
\nLong-term borrowings
1,994
3,332
\nCurrent portion of long-term borrowings
754
2
\nCurrent portion of lease liabilities
87
86
\nDebt to credit institutions
711
2,450
\nOther short-term borrowings
4
5
\nShort-term borrowings
1,556
2,543
\nTotal borrowings
3,550
5,875
\nShort-term investments
(58)
(336)
\nCash and cash equivalents
(1,152)
(1,450)
\nNet debt
2,340
4,089
\nAkzoNobel\u2019s net debt is mainly denominated in euro.
\nMulti-currency revolving credit facility
\nWe have a multi-currency revolving credit facility of \u20ac1.3
\nbillion which runs until 2026. This facility does not contain
\nfinancial covenants or acceleration provisions that are
\nbased on adverse changes in ratings or material adverse
\nchange. At year-end 2022 and 2021, this facility has not
\nbeen drawn.
\nLong-term borrowings
\nBonds issued
\nIn \u20ac millions, at December 31
2021
2022
\n1 3/4% 2014/24 (\u20ac500 million)
499
499
\n1 1/8% 2016/26 (\u20ac500 million)
497
498
\n1 5/8% 2020/30 (\u20ac750 million)
744
745
\n1 1/2% 2022/28 (\u20ac600 million)
\u2014
595
\n2% 2022/32 (\u20ac600 million)
\u2014
597
\nTotal
1,740
2,934
\nIn March 2022, two bonds were issued with nominal
\nvalues of \u20ac600 million each, of which one at a coupon
\nrate of 1.5%, maturing in 2028 and one at a coupon rate
\nof 2.0%, maturing in 2032. For details on the exposure to
\ninterest rate and foreign currency risk, refer to Note 27.
\nThe average effective interest rate of the bonds included in
\nlong-term borrowings at year-end 2022 was 1.6% (year-
\nend 2021: 1.9%).
\nAkzoNobel Report 2022
|
Financial statements
132
Aggregated maturities of long-term borrowings
\nIn \u20ac millions
2024-2027
After 2027
\nBonds issued
997
1,937
\nLease liabilities
153
45
\nOther long-term borrowings
175
25
\nTotal
1,325
2,007
\nThe increase in Other long term borrowings is related to
\nloans included in the balance sheet of acquired companies
\nand acquisition related financing.
\nThe blended incremental borrowing rate applied to the
\nlease liabilities at year-end 2022 was 1.9% (2021: 1.8%).
\nAt year-end 2022 and 2021, none of the borrowings was
\nsecured by collateral.
\nShort-term borrowings
\nThe current portion of long-term borrowings decreased
\nmainly due to the maturing of a \u20ac750 million bond in
\nJuly 2022.
\nDebt to credit institutions includes our commercial paper
\nprogram. We have US dollar and euro commercial paper
\nprograms in place, which can be used to the extent that
\nthe equivalent portion of the \u20ac1.3 billion multi-currency
\nrevolving credit facility is not used. We had \u20ac1.3 billion
\ncommercial paper outstanding at year-end 2022 (2021:
\n\u20ac371 million) against an average interest rate of 1.6%
\n(2021: 0.5% negative). At year-end 2022, we had short-
\nterm bank loans outstanding of \u20ac1.1 billion (2021:
\n\u20ac300 million) against a 3-months Euribor plus a mark-up
\n(2021: 0.6% negative). None of these facilities contain
\nfinancial covenants.
\nShort-term investments
\nShort-term investments almost entirely consist of time
\ndeposits, money market funds and other marketable secu-
\nrities with a life time at investment date longer than three
\nmonths but shorter than twelve months. For more informa-
\ntion on credit risk management, refer to Note 27.
\nCash and cash equivalents
\nDeposits and money market funds within cash and cash
\nequivalents almost entirely consist of time deposits imme-
\ndiately convertible into known amounts of cash and with a
\nmaturity of three months or less from the date of purchase,
\nand marketable securities that can be redeemed immedi-
\nately when called.
\nAt December 31, 2022, an amount of \u20ac11 million in
\ncash and cash equivalents was restricted (2021:
\n\u20ac14 million). Restricted cash is defined as cash that
\ncannot be accessed centrally due to regulatory or
\ncontractual restrictions.
\nCash and cash equivalents
\nIn \u20ac millions, at December 31
2021
2022
\nCash on hand and in banks
877
922
\nShort-term investments with a life up
275
528
\nto three months
\nIncluded in cash and cash equiva-
1,152
1,450
\nlents in the balance sheet
\nDebt to credit institutions
(40)
(52)
\nTotal per statement of cash \ufb02ows
1,112
1,398",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDebtSecuritiesExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20823": {
"value": "Long-term borrowings Bonds issued
\nIn \u20ac millions, at December 31
2021
2022
\n1 3/4% 2014/24 (\u20ac500 million)
499
499
\n1 1/8% 2016/26 (\u20ac500 million)
497
498
\n1 5/8% 2020/30 (\u20ac750 million)
744
745
\n1 1/2% 2022/28 (\u20ac600 million)
\u2014
595
\n2% 2022/32 (\u20ac600 million)
\u2014
597
\nTotal
1,740
2,934
\nIn March 2022, two bonds were issued with nominal
\nvalues of \u20ac600 million each, of which one at a coupon
\nrate of 1.5%, maturing in 2028 and one at a coupon rate
\nof 2.0%, maturing in 2032. For details on the exposure to
\ninterest rate and foreign currency risk, refer to Note 27.
\nThe average effective interest rate of the bonds included in
\nlong-term borrowings at year-end 2022 was 1.6% (year-
\nend 2021: 1.9%).
\nAkzoNobel Report 2022
|
Financial statements
132
Aggregated maturities of long-term borrowings
\nIn \u20ac millions
2024-2027
After 2027
\nBonds issued
997
1,937
\nLease liabilities
153
45
\nOther long-term borrowings
175
25
\nTotal
1,325
2,007
\nThe increase in Other long term borrowings is related to
\nloans included in the balance sheet of acquired companies
\nand acquisition related financing.
\nThe blended incremental borrowing rate applied to the
\nlease liabilities at year-end 2022 was 1.9% (2021: 1.8%).
\nAt year-end 2022 and 2021, none of the borrowings was
\nsecured by collateral.
\nShort-term borrowings
\nThe current portion of long-term borrowings decreased
\nmainly due to the maturing of a \u20ac750 million bond in
\nJuly 2022.
\nDebt to credit institutions includes our commercial paper
\nprogram. We have US dollar and euro commercial paper
\nprograms in place, which can be used to the extent that
\nthe equivalent portion of the \u20ac1.3 billion multi-currency
\nrevolving credit facility is not used. We had \u20ac1.3 billion
\ncommercial paper outstanding at year-end 2022 (2021:
\n\u20ac371 million) against an average interest rate of 1.6%
\n(2021: 0.5% negative). At year-end 2022, we had short-
\nterm bank loans outstanding of \u20ac1.1 billion (2021:
\n\u20ac300 million) against a 3-months Euribor plus a mark-up
\n(2021: 0.6% negative). None of these facilities contain
\nfinancial covenants.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBorrowingsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20919": {
"value": "Cash and cash equivalents Deposits and money market funds within cash and cash
\nequivalents almost entirely consist of time deposits imme-
\ndiately convertible into known amounts of cash and with a
\nmaturity of three months or less from the date of purchase,
\nand marketable securities that can be redeemed immedi-
\nately when called.
\nAt December 31, 2022, an amount of \u20ac11 million in
\ncash and cash equivalents was restricted (2021:
\n\u20ac14 million). Restricted cash is defined as cash that
\ncannot be accessed centrally due to regulatory or
\ncontractual restrictions.
\nCash and cash equivalents
\nIn \u20ac millions, at December 31
2021
2022
\nCash on hand and in banks
877
922
\nShort-term investments with a life up
275
528
\nto three months
\nIncluded in cash and cash equiva-
1,152
1,450
\nlents in the balance sheet
\nDebt to credit institutions
(40)
(52)
\nTotal per statement of cash \ufb02ows
1,112
1,398",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20928": {
"value": "At December 31, 2022, an amount of \u20ac11 million in cash and cash equivalents was restricted (2021:
\n\u20ac14 million). Restricted cash is defined as cash that
\ncannot be accessed centrally due to regulatory or
\ncontractual restrictions.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20959": {
"value": "Note 22 TRADE AND OTHER PAYABLES Trade and other payables
\nIn \u20ac millions, at December 31
2021
2022
\nTrade payables
2,376
2,206
\nTaxes and social security
191
184
\nAmounts payable to employees
264
234
\nInterest
42
58
\nFX contracts
27
60
\nDividends
6
4
\nOther liabilities
42
55
\nTotal
2,948
2,801
\nTrade and other payables can be broken down as per the
\nabove table. Other liabilities consist of a large number of
\nindividually immaterial items.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20994": {
"value": "Note 23 CASH FLOW Operating activities in 2022 resulted in a cash inflow of
\n\u20ac263 million (2021: cash inflow of \u20ac605 million).
\nThe amounts in the following table cannot be reconciled
\ndirectly to the respective balance sheet positions. They
\nreflect changes in balance sheet positions only to the
\nextent these have a cash flow impact, or they reverse the
\nnon-cash impact as included in profit for the period. These
\namounts exclude non-cash movements such as unwind-
\ning of discount, movements through other comprehensive
\nincome, acquisitions and divestments, and changes in
\nexchange rates.
\nChanges in working capital as per consolidated
\nstatement of cash \ufb02ows
\nIn \u20ac millions
2021
2022
\nTrade and other receivables
(240)
(95)
\nInventories
(439)
(134)
\nTrade and other payables
274
(280)
\nTotal
(405)
(509)",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21026": {
"value": "Note 24 COMMITMENTS Purchase commitments for property, plant and equipment
\naggregated \u20ac23 million (2021: \u20ac35 million).",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21032": {
"value": "Note 25 RELATED PARTY TRANSACTIONS
\nWe purchased and sold goods and services to various
\nrelated parties in which we hold a 50% or less equity inter-
\nest (associates and joint ventures). Such transactions were
\nconducted at terms comparable with transactions with
\nthird parties.
\nDuring 2022, we considered the members of the Execu-
\ntive Committee and the Supervisory Board to be the key
\nmanagement personnel as defined in IAS 24 \u201cRelated
\nparties\u201d. For details on their remuneration, as well as on
\nshares held by members of the Supervisory Board or
\nBoard of Management, refer to Note 26. In the ordinary
\ncourse of business, we also have transactions with various
\norganizations with which certain members of the Supervi-
\nsory Board or Executive Committee are associated.
\nFor related party transactions with pension funds, refer to
\nNotes 15 and 19.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21066": {
"value": "Note 26 REMUNERATION OF THE SUPERVISORY BOARD AND THE
\nBOARD OF MANAGEMENT
\nTotal compensation for key management personnel
\nexpensed during the period amounted to \u20ac13.2 million
\n(2021: \u20ac14.4 million). An amount of \u20ac7.4 million relates to
\nshort-term employee benefits (2021: \u20ac6.6 million); \u20ac0.8
\nmillion relates to post contract benefits and other post
\ncontract compensation (2021: \u20ac0.6 million); \u20ac3.0 million
\nrelates to share-based compensation (2021: \u20ac7.2 million);
\nno payments relate to other long-term incentives (2021:
\n\u20acnil); \u20ac2.0 million payments relate to payments upon termi-
\nnation of employment (2021: \u20acnil). Additional charges were
\naccrued which relate to taxation on excessive pay of \u20ac1.0
\nmillion (\u201cBelasting heffing excessieve beloningsbestand-
\ndelen\u201d) (2021: \u20acnil).
\nThis compensation includes total remuneration for the
\nmembers of the Supervisory Board of \u20ac0.9 million (2021:
\n\u20ac0.8 million) and for the members of the Board of Manage-
\nment of \u20ac2.0 million (2021: \u20ac8.9 million). For more details
\non the remuneration of the individual members of the
\nSupervisory Board and the Board of Management refer-
\nence is made to the Remuneration report.
\nIn accordance with the Articles of Association and good
\ncorporate governance practice, the remuneration of
\nSupervisory Board members is not dependent on the
\nresults of the company. We do not grant share-based
\ncompensation to our Supervisory Board members.
\nShares held by the members of the
\nSupervisory Board
\nNumber of shares at year-end
2021
2022
\nNils Smedegaard Andersen, Chair
4,500
4,500
\nByron Grote*
7,394
8,061
\nPamela Kirby
\u2014
\u2014
\nDick Sluimers
\u2014
\u2014
\nPatrick Thomas
\u2014
\u2014
\nJolanda Poots-Bijl
\u2014
\u2014
\nEster Baiget
\u2014
\u2014
\nHans Van Bylen
\u2014
\u2014
\n* In the form of ADRs.
\nShares held by the Board of Management
\nNumber of shares at year-end
2021
2022
\nGreg Poux-Guillaume*
\u2014
\u2014
\nMaarten de Vries
14,643
21,766
\n*Appointed CEO as per November 1, 2022, replacing Thierry Vanlancker.
\nAn overview of shares held by the Supervisory Board
\nmembers is provided on this page. A similar overview is
\nprovided of the shares held by the Board of Management.
\nLoans
\nThe company does not grant loans, advance payments
\nor guarantees to members of the Supervisory Board,
\nmembers of the Executive Committee or any family
\nmembers of such persons.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21146": {
"value": "Note 27 FINANCIAL RISK MANAGEMENT FINANCIAL RISK MANAGEMENT
\nFRAMEWORK
\nOur activities expose us to a variety of financial risks:
\nliquidity risk, credit risk and market risk (including foreign
\nexchange rate risk, interest rate risk and capital risk).
\nThese risks are inherent to the way we operate as a multi-
\nnational with a large number of locally operating subsid-
\niaries. Our overall risk management program seeks to
\nidentify, assess, and \u2013 if necessary and possible \u2013 mitigate
\nthese financial risks in order to minimize potential adverse
\neffects on our financial performance.
\nOur risk mitigating activities include the use of derivative
\nfinancial instruments to hedge certain risk exposures.
\nThe Board of Management is ultimately responsible for risk
\nmanagement. We centrally identify, evaluate and hedge
\nfinancial risks, and monitor compliance with the corporate
\npolicies approved by the Board of Management, except
\nfor commodity risks, which are subject to identification,
\nevaluation, hedging and monitoring in the businesses.
\nNext to our centralized Treasury organization in Amster-
\ndam, we have treasury hubs located in Brazil and China
\nthat are primarily responsible for regional cash manage-
\nment and short-term financing. We do not allow exten-
\nsive treasury operations directly with external parties at
\nsubsidiary level.
\nMaturity of liabilities and cash out\ufb02ows
\nLess than
Between
Over 5
\nIn \u20ac millions
1\u00a0year
1\u00a0and\u00a05\u00a0years
years
\nAt December 31, 2021
\nBorrowings
1,469
1,006
776
\nInterest on borrowings
60
134
40
\nLease liabilities
87
165
47
\nTrade and other payables
2,921
\u2014
\u2014
\nFX contracts (hedges)
\nOutflow
2,819
\u2014
\u2014
\nInflow
(2,806)
\u2014
\u2014
\nTotal
4,550
1,305
863
\nAt December 31, 2022
\nBorrowings
2,457
1,172
1,962
\nInterest on borrowings
118
197
84
\nLease liabilities
86
153
45
\nTrade and other payables
2,741
\u2014
\u2014
\nFX contracts (hedges)
\nOutflow
3,097
\u2014
\u2014
\nInflow
(3,055)
\u2014
\u2014
\nTotal
5,444
1,522
2,091
\nLIQUIDITY RISK MANAGEMENT
\nThe primary objective of liquidity management is to provide
\nfor sufficient cash and cash equivalents at all times and
\nany place in the world to enable us to meet our payment
\nobligations. We aim for a well-spread maturity schedule of
\nour long-term borrowings and a strong liquidity position.
\nAt year-end 2022, we had \u20ac1.5 billion available as cash
\nand cash equivalents (2021: \u20ac1.2 billion) and \u20ac336 million
\navailable as short-term investments (2021: \u20ac58 million),
\nrefer to Note 21.
\nIn addition, we have a multi-currency revolving credit facil-
\nity of \u20ac1.3 billion which runs until 2026. This facility does
\nnot contain financial covenants or acceleration provisions
\nthat are based on adverse changes in ratings or on other
\nmaterial adverse changes. At year-end 2022 and 2021,
\nthis facility had not been drawn. We have US dollar and
\neuro commercial paper programs in place, which can be
\nused to the extent that the equivalent portion of the \u20ac1.3
\nbillion multi-currency revolving credit facility is not used.
\n134
AkzoNobel Report 2022
|
Financial statements
We had \u20ac1.3 billion commercial paper outstanding at
\nyear end 2022 (2021: \u20ac371 million) against an average
\ninterest rate of 1.6% (2021: average interest rate of 0.5%
\nnegative). Further, at year-end 2022, we had \u20ac1.1 billion
\nshort-term bank loans outstanding (2021: \u20ac300 million)
\nagainst 3-months Euribor plus a mark-up (2021: interest
\nrate of 0.6% negative). None of these facilities contain
\nfinancial covenants. The table on maturity of liabilities and
\ncash outflows in this Note shows our cash outflows per
\nmaturity group. The amounts disclosed in the table are the
\ncontractual undiscounted cash flows.
\nCREDIT RISK MANAGEMENT
\nCredit risk arises from financial assets such as cash and
\ncash equivalents, deposits with financial institutions,
\nmoney market funds, trade receivables and derivative
\nfinancial instruments with a positive fair value. We have
\na credit risk management policy in place to limit credit
\nlosses due to non-performance of financial counterparties
\nand customers. We monitor our exposure to credit risk
\non an ongoing basis at various levels. We only deal with
\nfinancial counterparties that have a sufficiently high credit
\nrating. Generally, we do not require collateral in respect of
\nfinancial assets. Investments in cash and cash equivalents,
\nshort-term investments and transactions involving
\nderivative financial instruments are entered into with
\ncounterparties that have sound credit ratings and a good
\nreputation. Derivative transactions are concluded mostly
\nwith parties with whom we have contractual netting agree-
\nments and ISDA agreements in place. We set limits per
\ncounterparty for the different types of financial instruments
\nwe use. We closely monitor the acceptable financial
\ncounterparty credit ratings and credit limits and revise
\nwhere required in line with the market circumstances.
\nWe do not expect non-performance by the counterparties
\nfor these financial instruments. Due to our geographical
\nspread and the diversity of our customers, we were not
\nsubject to any significant concentration of credit risks at
\nbalance sheet date.
\nThe credit risk from trade receivables is measured and
\nanalyzed by dedicated teams in the businesses, mainly
\nby means of ageing analysis, refer to Note 17. Addition-
\nally, trade receivables and financial assets measured at
\namortized cost are subject to the expected credit loss
\nimpairment model either using the general or the simplified
\napproach. For more information on the applied impairment
\napproaches per financial asset type, refer to Note 1.
\nThe maximum exposure to credit risk is represented by the
\ncarrying value of financial assets in the balance sheet.
\nAt year-end 2022, the credit risk on consolidated level was
\n\u20ac4.6 billion (2021: \u20ac3.9 billion) for cash and cash equiva-
\nlents, short-term investments, loans, trade and other
\nreceivables. Our credit risk is well spread among both
\nglobal and local counterparties. Our largest counterparty
\nrisk amounted to \u20ac280 million at year-end 2022 (2021:
\n\u20ac301 million).
\nFOREIGN EXCHANGE RISK
\nMANAGEMENT
\nTrade and \ufb01nancing transactions
\nWe operate in a large number of countries, where we have
\nclients and suppliers, many of whom are outside of
\nthe local functional currency environment. This creates
\ncurrency exposures which are partly netted out on group
\nlevel. The purpose of our foreign currency hedging
\nactivities is to protect us from the risk that the functional
\ncurrency net cash flows resulting from trade or financ-
\ning transactions are adversely affected by changes in
\nexchange rates. Our policy is to hedge our transactional
\nforeign exchange rate exposures above predefined
\nthresholds from recognized assets and liabilities. Hedge
\naccounting is generally not applied for foreign currency
\nhedging activities, except for certain specific forecasted
\ntransactions. In 2022 and 2021, we applied cash flow
\nhedge accounting on a COP 1,600 billion hedge of the
\nforeign currency risk related to the acquisition of Grupo
\nOrbis which was finalized in April 2022. The hedges
\nmatured in April 2022. The fair value of the cash flow
\nhedge of \u20ac31 million (positive) has subsequently been
\nreleased from other comprehensive income and allo-
\ncated to the purchase consideration. The hedges were
\nfully effective during 2022 and 2021. In 2022, cash flow
\nhedge accounting was applied on a $450 million hedge
\nfor foreign currency risk exposure related to the intended
\nacquisition of Kansai Paint\u2019s African activities, refer to
\nNote 2 for further details. The fair value of this hedge at
\nyear-end 2022 was \u20ac37 million negative; the spot result
\nrelated to this hedge was recognized in other compre-
\nhensive income and accumulated in the cash flow hedge
\nHedged notional amounts at year-end
\nBuy
Sell
Buy
Sell
\nIn \u20ac millions
2021
2021
2022
2022
\nUS dollar
263
413
784
692
\nPound sterling
601
45
649
10
\nChinese yuan
179
145
110
157
\nColombian peso
348
1
\u2014
1
\nOther*
391
745
278
821
\nTotal
1,782
1,349
1,821
1,681
\n* No individually significant position is included in \u2018Other\u2019, the amounts per currency
\nare highly disaggregated.
\nreserve. The hedge will mature in the course of 2023.
\nDuring 2022, the hedge was fully effective.
\nIn general, our forward exchange contracts have a maturity
\nof less than one year. When necessary, forward exchange
\ncontracts are rolled over at maturity. Currency derivatives
\nare not used for speculative purposes.
\nInvestments in foreign subsidiaries, associates
\nand joint ventures
\nDuring 2022 and 2021, net investment hedge account-
\ning was applied on hedges of certain net investments in
\nforeign operations, which were partly hedged. The main
\nnet investments that were hedged with forward exchange
\ncontracts for the same currencies were related to Chinese
\nyuan, Indonesian rupiah and Indian rupee (2021: Brazilian
\nreal, Chinese yuan, Indonesian rupiah and Vietnamese
\ndong). The spot results related to these hedges were
\nrecognized in other comprehensive income and accumu-
\nlated in the cumulative translation reserves. In addition,
\na net investment in Colombian peso was hedged with a
\nCOP 330 million bank loan. The spot result related to this
\nhedge was recognized in other comprehensive income
\nand accumulated in the cumulative translation reserves. At
\nyear-end 2022, the hedge of net investment in Colombian
\npeso was outstanding. During 2022 and 2021, the hedges
\nof net investments were fully effective.
\nINTEREST RATE RISK MANAGEMENT
\nWe are partly financed with debt in order to obtain more
\nefficient leverage. Fixed rate debt results in fair value inter-
\nest rate risk. Floating rate debt results in cash flow interest
\nrate risk. We treat fixed rate debt maturing within one year
\n135
AkzoNobel Report 2022
|
Financial statements
as floating rate debt for debt portfolio purposes. At the end
\nof 2022, the fixed/floating ratio of our outstanding bonds
\nwas 100 percent fixed (2021: 70 percent fixed). During
\n2022 and 2021, we have not used any interest
\nrate derivatives.
\nIBOR reform refers to the global reform of interest rate
\nbenchmarks, which includes the replacement of some
\ninterbank offered rates (IBOR) with alternative benchmark
\nrates. Our long-term borrowings have fixed interest rates
\nand we currently do not have any interest related hedging
\ninstruments. Fallback language has been added to our
\ncontracts while preparing for the transition to new rates.
\nBased on this and following an internal assessment of the
\nimpact of the IBOR reform, we conclude that the interest
\nrate benchmark reform does not have a material impact on
\nthe company\u2019s financial statements.
\nCAPITAL RISK MANAGEMENT
\nOur objectives when managing capital are to safeguard
\nour ability to satisfy our capital providers and to maintain a
\ncapital structure that optimizes our cost of capital. For this
\nwe maintain an adequate financial strategy, with the objec-
\ntive to retain a strong investment grade credit rating as
\nassigned by the rating agencies Moody\u2019s and Standard &
\nPoor\u2019s. The capital structure can be altered, among others,
\nby adjusting the amounts of dividends paid to sharehold-
\ners, return of capital to capital providers, or issuance of
\nnew debt or shares. In March 2022, two bonds were
\nissued with nominal values of \u20ac600 million each of which
\none at a coupon rate of 1.5%, maturing in 2028 and one
\nat a coupon rate of 2.0%, maturing in 2032. In July 2022,
\na bond of \u20ac750 million matured.
\nConsistent with other companies in the industry, we
\nmonitor capital headroom based on the leverage ratio
\nnet debt/EBITDA, for which we have set a target range
\nof around 2. The ratio was 3.8 at December 31, 2022
\n(December 31, 2021: 1.6). EBITDA is operating income
\nexcluding depreciation and amortization, which amounted
\nto \u20ac1,076 million for 2022 (2021: \u20ac1,469 million). Net debt
\nis calculated as the total of long- and short-term borrow-
\nings less cash and cash equivalents and short-term invest-
\nments, amounting to \u20ac4,089 million at year end 2022 (year
\nend 2021: \u20ac2,340 million).
\nFair value per \ufb01nancial instrument category
\nCarrying value per IFRS 9
\ncategory
\nMeasured
Fair value
\nMeasured at
at fair value
of items
\nCarrying
Out of scope
amortized
through pro\ufb01t
Total
measured at
\nIn \u20ac millions
amount
of IFRS 7
\n1
\ncost
or loss
carrying value
amortized cost
\n330
\n2021 year-end
\nFinancial non-current assets
\n2
\n2,076
1,766
302
8
310
\nTrade and other receivables
\n3
\n2,339
182
2,089
68
2,157
2,089
\nShort-term investments
58
\u2014
\u2014
58
58
\u2014
\nCash and cash equivalents
1,152
\u2014
\u2014
1,152
1,152
\u2014
\nTotal \ufb01nancial assets
5,625
1,948
2,391
1,286
3,677
2,419
\nLong-term borrowings
1,994
\u2014
1,994
\u2014
1,994
2,114
\nShort-term borrowings
1,556
\u2014
1,556
\u2014
1,556
1,570
\nTrade and other payables
\n4
\n2,948
455
2,466
27
2,493
2,466
\nTotal \ufb01nancial liabilities
6,498
455
6,016
27
6,043
6,150
\n2022 year-end
\n311
Financial non-current assets
\n2
\n1,475
1,158
308
9
317
\nTrade and other receivables
\n3
\n2,447
214
2,215
18
2,233
2,215
\nShort-term investments
336
\u2014
\u2014
336
336
\u2014
\nCash and cash equivalents
1,450
\u2014
\u2014
1,450
1,450
\u2014
\nTotal \ufb01nancial assets
5,708
1,372
2,523
1,813
4,336
2,526
\nLong-term borrowings
3,332
\u2014
3,332
\u2014
3,332
3,031
\nShort-term borrowings
2,543
\u2014
2,543
\u2014
2,543
2,543
\nTrade and other payables
\n4
\n2,801
418
2,323
60
2,383
2,323
\nTotal \ufb01nancial liabilities
8,676
418
8,198
60
8,258
7,897
\n1
\nMainly includes pension assets (refer to Note 15), (non) income tax related
\nreceivables (refer to Note 17), payables to employees and (non) income taxes payables
\n(refer to Note 22).
\n2
\n\u20ac308 million (2021: \u20ac302 million) relates to loans and receivables (refer to
\nNote 15), \u20ac9 million (2021: \u20ac8 million) relates to other than financial instruments
\n(refer to Note 15).
\n3
\n\u20ac2,215 million (2021: \u20ac2,089 million) relates to the remainder of trade and
\nother receivables (refer to Note 17) and \u20ac18 million (2021: \u20ac68 million) relates
\nto FX contracts.
\n4
\n\u20ac2,323 million (2021: \u20ac2,466 million) relates to the remainder of trade and other
\npayables (refer to Note 22) and \u20ac60 million (2021: \u20ac27 million) relates to
\nFX contracts.
\nFair value of \ufb01nancial instruments and
\nIFRS 9 categories
\nIn the table \u201cFair value per financial instrument category\u201d
\ninsight is provided in the recognition of the respec-
\ntive financial instruments per IFRS 9 category. The total
\ncarrying value is based on the accounting principles as
\noutlined in Note 1. Financial instruments are recognized at
\nfair value and subsequently recognized either at fair value
\nor at amortized cost, using the effective interest method.
\nThe financial instruments accounted for at fair value
\nthrough profit or loss are derivative financial instruments
\nand securities included in financial non-current assets,
\ncash and cash equivalents and short-term investments.
\nThe remaining financial instruments are accounted for at
\namortized cost.
\nThe following valuation methods for financial instruments
\ncarried at fair value through profit or loss are distinguished:
\n\u2022
Level 1: quoted prices (unadjusted) in active markets for
\nidentical assets or liabilities
\n\u2022
Level 2: inputs other than quoted prices included within
\nlevel 1 that are observable for the asset or liability,
\n136
AkzoNobel Report 2022
|
Financial statements
either directly (i.e. as prices) or indirectly (i.e. derived
\nfrom prices)
\n\u2022
Level 3: inputs for the asset or liability that are not based
\non observable market data (unobservable)
\nFor the purpose of determining the fair value per financial
\ninstrument category, shown in the column \u2018fair value\u2019, the
\nfollowing valuation methods were used:
\n\u2022
A level 1 valuation method was used to estimate the
\nfair value of the bonds issued included in our long-term
\nand short-term borrowings. The estimate is based on
\nthe quoted market prices for the same or similar issues
\nor on the current rates offered to us for debt with similar
\nmaturities.
\n\u2022
A level 2 valuation method was used to determine the
\nfair value of marketable securities included in cash
\nand cash equivalents and short-term investments by
\nobtaining the market price at reporting date. The fair
\nvalue of foreign currency contracts and swap contracts
\nwas determined by level 2 valuation techniques using
\nmarket observable input (such as foreign currency
\ninterest rates based on Reuters) and by obtaining
\nquotes from dealers and brokers. A level 2 valuation
\nmethod was used to determine the fair value of time
\ndeposits included in cash and cash equivalents and
\nshort-term investments using the market interest
\nrate. The carrying amounts of cash and banks, trade
\nreceivables less allowance for impairment, other short-
\nterm borrowings and other current liabilities approximate
\nfair value due to the short maturity period of those
\ninstruments and were determined using level 2 fair value
\nmethods.
\n\u2022
A level 3 fair valuation method (discounted cash flow)
\nwas used for the subordinated loan granted to the
\nPension Fund APF in the Netherlands, resulting in a fair
\nvalue of \u20ac93 million.
\nMASTER NETTING AGREEMENTS
\nWe enter into derivative transactions under International
\nSwaps and Derivatives Association (ISDA) master netting
\nagreements. In general, under such agreements the
\namounts owed by each counterparty on a single day in
\nSensitivities on \ufb01nancial instruments at year-end 2022
\nSensitivity object
Sensitivity
Hypothetical impact
\nForeign currencies:
\nWe perform foreign currency sensitivity analysis by
A 10% (2021: 10%) strengthening of the euro
Profit \u20ac9 million (2021: profit \u20ac6 million);
\napplying an adjustment to the spot rates prevailing
versus US dollar
Other comprehensive income loss \u20ac41
\nat year-end. This adjustment is based on observed
million (2021: profit \u20ac1 million)
\nchanges in the exchange rate in the past and manage-
A 10% (2021: 10%) strengthening of the euro
\nment\u2019s expectation for reasonably possible* future
versus the pound sterling
Profit \u20ac1 million (2021: profit \u20ac1 million)
\nmovements over a longer term from a sensitivity test
\nperspective. We then apply the expected possible
A 10% (2021: 10%) strengthening of the euro
Profit \u20ac1 million (2021: \u20acnil). Other compre-
\nvolatility to revalue all monetary assets and liabilities
versus Chinese yuan
hensive income \u20acnil (2021: profit \u20ac2 million)
\n(including derivative financial instruments) in a currency
\nother than the functional currency of the subsidiary in
A 10% (2021: 10%) strengthening of the euro
Profit \u20acnil (2021: \u20acnil). Other comprehensive
\nthe balance sheet at year-end. These effects are of a
versus Colombian peso
income \u20acnil (2021: loss \u20ac35 million)
\nfairly linear nature.
\nInterest rate:
\nWe perform interest rate sensitivity analysis by applying
A 100 basis points increase of
Loss \u20ac16 million (2021: loss \u20ac11 million)
\nan adjustment to the interest rate curve prevailing
EUR interest rates
\nat year-end. This adjustment is based on observed
\nchanges in the interest rate in the past and manage-
A 100 basis points increase of
Profit \u20ac1 million
(2021: \u20acnil)
\nment\u2019s expectation for reasonably possible* future
USD interest rates
\nmovements over a longer term from a sensitivity test
\nperspective. We then apply the expected possible
A 100 basis points increase of
Profit \u20ac1 million (2021: profit \u20ac1 million)
\nvolatility to revalue all interest bearing assets and liabili-
GBP interest rates
\nties. These effects are of a fairly linear nature.
\n*
This analysis does not indicate any probability of such changes occurring; nor does it preclude
\nlarger changes in any given period or longer term.
\nrespect of transactions outstanding in the same currency
\nmay be aggregated into a single net amount that is
\npayable by one party to the other. In certain circumstances
\n\u2013 e.g. when a credit event such as a default occurs \u2013 all
\noutstanding transactions under the agreement may be
\nterminated, the termination value is assessed and a net
\namount is payable in settlement of the transactions. We
\nhave evaluated the potential effect of netting agreements,
\nincluding the effect of rights of set-off and concluded
\nthe impact is immaterial. We did not offset any amounts
\nregarding derivative transactions.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21242": {
"value": "LIQUIDITY RISK MANAGEMENT The primary objective of liquidity management is to provide
\nfor sufficient cash and cash equivalents at all times and
\nany place in the world to enable us to meet our payment
\nobligations. We aim for a well-spread maturity schedule of
\nour long-term borrowings and a strong liquidity position.
\nAt year-end 2022, we had \u20ac1.5 billion available as cash
\nand cash equivalents (2021: \u20ac1.2 billion) and \u20ac336 million
\navailable as short-term investments (2021: \u20ac58 million),
\nrefer to Note 21.
\nIn addition, we have a multi-currency revolving credit facil-
\nity of \u20ac1.3 billion which runs until 2026. This facility does
\nnot contain financial covenants or acceleration provisions
\nthat are based on adverse changes in ratings or on other
\nmaterial adverse changes. At year-end 2022 and 2021,
\nthis facility had not been drawn. We have US dollar and
\neuro commercial paper programs in place, which can be
\nused to the extent that the equivalent portion of the \u20ac1.3
\nbillion multi-currency revolving credit facility is not used.
\n134
AkzoNobel Report 2022
|
Financial statements
We had \u20ac1.3 billion commercial paper outstanding at
\nyear end 2022 (2021: \u20ac371 million) against an average
\ninterest rate of 1.6% (2021: average interest rate of 0.5%
\nnegative). Further, at year-end 2022, we had \u20ac1.1 billion
\nshort-term bank loans outstanding (2021: \u20ac300 million)
\nagainst 3-months Euribor plus a mark-up (2021: interest
\nrate of 0.6% negative). None of these facilities contain
\nfinancial covenants. The table on maturity of liabilities and
\ncash outflows in this Note shows our cash outflows per
\nmaturity group. The amounts disclosed in the table are the
\ncontractual undiscounted cash flows.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21292": {
"value": "CREDIT RISK MANAGEMENT Credit risk arises from financial assets such as cash and
\ncash equivalents, deposits with financial institutions,
\nmoney market funds, trade receivables and derivative
\nfinancial instruments with a positive fair value. We have
\na credit risk management policy in place to limit credit
\nlosses due to non-performance of financial counterparties
\nand customers. We monitor our exposure to credit risk
\non an ongoing basis at various levels. We only deal with
\nfinancial counterparties that have a sufficiently high credit
\nrating. Generally, we do not require collateral in respect of
\nfinancial assets. Investments in cash and cash equivalents,
\nshort-term investments and transactions involving
\nderivative financial instruments are entered into with
\ncounterparties that have sound credit ratings and a good
\nreputation. Derivative transactions are concluded mostly
\nwith parties with whom we have contractual netting agree-
\nments and ISDA agreements in place. We set limits per
\ncounterparty for the different types of financial instruments
\nwe use. We closely monitor the acceptable financial
\ncounterparty credit ratings and credit limits and revise
\nwhere required in line with the market circumstances.
\nWe do not expect non-performance by the counterparties
\nfor these financial instruments. Due to our geographical
\nspread and the diversity of our customers, we were not
\nsubject to any significant concentration of credit risks at
\nbalance sheet date.
\nThe credit risk from trade receivables is measured and
\nanalyzed by dedicated teams in the businesses, mainly
\nby means of ageing analysis, refer to Note 17. Addition-
\nally, trade receivables and financial assets measured at
\namortized cost are subject to the expected credit loss
\nimpairment model either using the general or the simplified
\napproach. For more information on the applied impairment
\napproaches per financial asset type, refer to Note 1.
\nThe maximum exposure to credit risk is represented by the
\ncarrying value of financial assets in the balance sheet.
\nAt year-end 2022, the credit risk on consolidated level was
\n\u20ac4.6 billion (2021: \u20ac3.9 billion) for cash and cash equiva-
\nlents, short-term investments, loans, trade and other
\nreceivables. Our credit risk is well spread among both
\nglobal and local counterparties. Our largest counterparty
\nrisk amounted to \u20ac280 million at year-end 2022 (2021:
\n\u20ac301 million).",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCreditRiskExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21338": {
"value": "FOREIGN EXCHANGE RISK
\nMANAGEMENT
\nTrade and \ufb01nancing transactions
\nWe operate in a large number of countries, where we have
\nclients and suppliers, many of whom are outside of
\nthe local functional currency environment. This creates
\ncurrency exposures which are partly netted out on group
\nlevel. The purpose of our foreign currency hedging
\nactivities is to protect us from the risk that the functional
\ncurrency net cash flows resulting from trade or financ-
\ning transactions are adversely affected by changes in
\nexchange rates. Our policy is to hedge our transactional
\nforeign exchange rate exposures above predefined
\nthresholds from recognized assets and liabilities. Hedge
\naccounting is generally not applied for foreign currency
\nhedging activities, except for certain specific forecasted
\ntransactions. In 2022 and 2021, we applied cash flow
\nhedge accounting on a COP 1,600 billion hedge of the
\nforeign currency risk related to the acquisition of Grupo
\nOrbis which was finalized in April 2022. The hedges
\nmatured in April 2022. The fair value of the cash flow
\nhedge of \u20ac31 million (positive) has subsequently been
\nreleased from other comprehensive income and allo-
\ncated to the purchase consideration. The hedges were
\nfully effective during 2022 and 2021. In 2022, cash flow
\nhedge accounting was applied on a $450 million hedge
\nfor foreign currency risk exposure related to the intended
\nacquisition of Kansai Paint\u2019s African activities, refer to
\nNote 2 for further details. The fair value of this hedge at
\nyear-end 2022 was \u20ac37 million negative; the spot result
\nrelated to this hedge was recognized in other compre-
\nhensive income and accumulated in the cash flow hedge
\nHedged notional amounts at year-end
\nBuy
Sell
Buy
Sell
\nIn \u20ac millions
2021
2021
2022
2022
\nUS dollar
263
413
784
692
\nPound sterling
601
45
649
10
\nChinese yuan
179
145
110
157
\nColombian peso
348
1
\u2014
1
\nOther*
391
745
278
821
\nTotal
1,782
1,349
1,821
1,681
\n* No individually significant position is included in \u2018Other\u2019, the amounts per currency
\nare highly disaggregated.
\nreserve. The hedge will mature in the course of 2023.
\nDuring 2022, the hedge was fully effective.
\nIn general, our forward exchange contracts have a maturity
\nof less than one year. When necessary, forward exchange
\ncontracts are rolled over at maturity. Currency derivatives
\nare not used for speculative purposes.
\nInvestments in foreign subsidiaries, associates
\nand joint ventures
\nDuring 2022 and 2021, net investment hedge account-
\ning was applied on hedges of certain net investments in
\nforeign operations, which were partly hedged. The main
\nnet investments that were hedged with forward exchange
\ncontracts for the same currencies were related to Chinese
\nyuan, Indonesian rupiah and Indian rupee (2021: Brazilian
\nreal, Chinese yuan, Indonesian rupiah and Vietnamese
\ndong). The spot results related to these hedges were
\nrecognized in other comprehensive income and accumu-
\nlated in the cumulative translation reserves. In addition,
\na net investment in Colombian peso was hedged with a
\nCOP 330 million bank loan. The spot result related to this
\nhedge was recognized in other comprehensive income
\nand accumulated in the cumulative translation reserves. At
\nyear-end 2022, the hedge of net investment in Colombian
\npeso was outstanding. During 2022 and 2021, the hedges
\nof net investments were fully effective.
\nINTEREST RATE RISK MANAGEMENT
\nWe are partly financed with debt in order to obtain more
\nefficient leverage. Fixed rate debt results in fair value inter-
\nest rate risk. Floating rate debt results in cash flow interest
\nrate risk. We treat fixed rate debt maturing within one year
as floating rate debt for debt portfolio purposes. At the end
\nof 2022, the fixed/floating ratio of our outstanding bonds
\nwas 100 percent fixed (2021: 70 percent fixed). During
\n2022 and 2021, we have not used any interest
\nrate derivatives.
\nIBOR reform refers to the global reform of interest rate
\nbenchmarks, which includes the replacement of some
\ninterbank offered rates (IBOR) with alternative benchmark
\nrates. Our long-term borrowings have fixed interest rates
\nand we currently do not have any interest related hedging
\ninstruments. Fallback language has been added to our
\ncontracts while preparing for the transition to new rates.
\nBased on this and following an internal assessment of the
\nimpact of the IBOR reform, we conclude that the interest
\nrate benchmark reform does not have a material impact on
\nthe company\u2019s financial statements.
\nCAPITAL RISK MANAGEMENT
\nOur objectives when managing capital are to safeguard
\nour ability to satisfy our capital providers and to maintain a
\ncapital structure that optimizes our cost of capital. For this
\nwe maintain an adequate financial strategy, with the objec-
\ntive to retain a strong investment grade credit rating as
\nassigned by the rating agencies Moody\u2019s and Standard &
\nPoor\u2019s. The capital structure can be altered, among others,
\nby adjusting the amounts of dividends paid to sharehold-
\ners, return of capital to capital providers, or issuance of
\nnew debt or shares. In March 2022, two bonds were
\nissued with nominal values of \u20ac600 million each of which
\none at a coupon rate of 1.5%, maturing in 2028 and one
\nat a coupon rate of 2.0%, maturing in 2032. In July 2022,
\na bond of \u20ac750 million matured.
\nConsistent with other companies in the industry, we
\nmonitor capital headroom based on the leverage ratio
\nnet debt/EBITDA, for which we have set a target range
\nof around 2. The ratio was 3.8 at December 31, 2022
\n(December 31, 2021: 1.6). EBITDA is operating income
\nexcluding depreciation and amortization, which amounted
\nto \u20ac1,076 million for 2022 (2021: \u20ac1,469 million). Net debt
\nis calculated as the total of long- and short-term borrow-
\nings less cash and cash equivalents and short-term invest-
\nments, amounting to \u20ac4,089 million at year end 2022 (year
\nend 2021: \u20ac2,340 million).
\nFair value per \ufb01nancial instrument category
\nCarrying value per IFRS 9
\ncategory
\nMeasured
Fair value
\nMeasured at
at fair value
of items
\nCarrying
Out of scope
amortized
through pro\ufb01t
Total
measured at
\nIn \u20ac millions
amount
of IFRS 7
\n1
\ncost
or loss
carrying value
amortized cost
\n330
\n2021 year-end
\nFinancial non-current assets
\n2
\n2,076
1,766
302
8
310
\nTrade and other receivables
\n3
\n2,339
182
2,089
68
2,157
2,089
\nShort-term investments
58
\u2014
\u2014
58
58
\u2014
\nCash and cash equivalents
1,152
\u2014
\u2014
1,152
1,152
\u2014
\nTotal \ufb01nancial assets
5,625
1,948
2,391
1,286
3,677
2,419
\nLong-term borrowings
1,994
\u2014
1,994
\u2014
1,994
2,114
\nShort-term borrowings
1,556
\u2014
1,556
\u2014
1,556
1,570
\nTrade and other payables
\n4
\n2,948
455
2,466
27
2,493
2,466
\nTotal \ufb01nancial liabilities
6,498
455
6,016
27
6,043
6,150
\n2022 year-end
\n311
Financial non-current assets
\n2
\n1,475
1,158
308
9
317
\nTrade and other receivables
\n3
\n2,447
214
2,215
18
2,233
2,215
\nShort-term investments
336
\u2014
\u2014
336
336
\u2014
\nCash and cash equivalents
1,450
\u2014
\u2014
1,450
1,450
\u2014
\nTotal \ufb01nancial assets
5,708
1,372
2,523
1,813
4,336
2,526
\nLong-term borrowings
3,332
\u2014
3,332
\u2014
3,332
3,031
\nShort-term borrowings
2,543
\u2014
2,543
\u2014
2,543
2,543
\nTrade and other payables
\n4
\n2,801
418
2,323
60
2,383
2,323
\nTotal \ufb01nancial liabilities
8,676
418
8,198
60
8,258
7,897
\n1
\nMainly includes pension assets (refer to Note 15), (non) income tax related
\nreceivables (refer to Note 17), payables to employees and (non) income taxes payables
\n(refer to Note 22).
\n2
\n\u20ac308 million (2021: \u20ac302 million) relates to loans and receivables (refer to
\nNote 15), \u20ac9 million (2021: \u20ac8 million) relates to other than financial instruments
\n(refer to Note 15).
\n3
\n\u20ac2,215 million (2021: \u20ac2,089 million) relates to the remainder of trade and
\nother receivables (refer to Note 17) and \u20ac18 million (2021: \u20ac68 million) relates
\nto FX contracts.
\n4
\n\u20ac2,323 million (2021: \u20ac2,466 million) relates to the remainder of trade and other
\npayables (refer to Note 22) and \u20ac60 million (2021: \u20ac27 million) relates to
\nFX contracts.
\nFair value of \ufb01nancial instruments and
\nIFRS 9 categories
\nIn the table \u201cFair value per financial instrument category\u201d
\ninsight is provided in the recognition of the respec-
\ntive financial instruments per IFRS 9 category. The total
\ncarrying value is based on the accounting principles as
\noutlined in Note 1. Financial instruments are recognized at
\nfair value and subsequently recognized either at fair value
\nor at amortized cost, using the effective interest method.
\nThe financial instruments accounted for at fair value
\nthrough profit or loss are derivative financial instruments
\nand securities included in financial non-current assets,
\ncash and cash equivalents and short-term investments.
\nThe remaining financial instruments are accounted for at
\namortized cost.
\nThe following valuation methods for financial instruments
\ncarried at fair value through profit or loss are distinguished:
\n\u2022
Level 1: quoted prices (unadjusted) in active markets for
\nidentical assets or liabilities
\n\u2022
Level 2: inputs other than quoted prices included within
\nlevel 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived
\nfrom prices)
\n\u2022
Level 3: inputs for the asset or liability that are not based
\non observable market data (unobservable)
\nFor the purpose of determining the fair value per financial
\ninstrument category, shown in the column \u2018fair value\u2019, the
\nfollowing valuation methods were used:
\n\u2022
A level 1 valuation method was used to estimate the
\nfair value of the bonds issued included in our long-term
\nand short-term borrowings. The estimate is based on
\nthe quoted market prices for the same or similar issues
\nor on the current rates offered to us for debt with similar
\nmaturities.
\n\u2022
A level 2 valuation method was used to determine the
\nfair value of marketable securities included in cash
\nand cash equivalents and short-term investments by
\nobtaining the market price at reporting date. The fair
\nvalue of foreign currency contracts and swap contracts
\nwas determined by level 2 valuation techniques using
\nmarket observable input (such as foreign currency
\ninterest rates based on Reuters) and by obtaining
\nquotes from dealers and brokers. A level 2 valuation
\nmethod was used to determine the fair value of time
\ndeposits included in cash and cash equivalents and
\nshort-term investments using the market interest
\nrate. The carrying amounts of cash and banks, trade
\nreceivables less allowance for impairment, other short-
\nterm borrowings and other current liabilities approximate
\nfair value due to the short maturity period of those
\ninstruments and were determined using level 2 fair value
\nmethods.
\n\u2022
A level 3 fair valuation method (discounted cash flow)
\nwas used for the subordinated loan granted to the
\nPension Fund APF in the Netherlands, resulting in a fair
\nvalue of \u20ac93 million.
Sensitivities on \ufb01nancial instruments at year-end 2022
\nSensitivity object
Sensitivity
Hypothetical impact
\nForeign currencies:
\nWe perform foreign currency sensitivity analysis by
A 10% (2021: 10%) strengthening of the euro
Profit \u20ac9 million (2021: profit \u20ac6 million);
\napplying an adjustment to the spot rates prevailing
versus US dollar
Other comprehensive income loss \u20ac41
\nat year-end. This adjustment is based on observed
million (2021: profit \u20ac1 million)
\nchanges in the exchange rate in the past and manage-
A 10% (2021: 10%) strengthening of the euro
\nment\u2019s expectation for reasonably possible* future
versus the pound sterling
Profit \u20ac1 million (2021: profit \u20ac1 million)
\nmovements over a longer term from a sensitivity test
\nperspective. We then apply the expected possible
A 10% (2021: 10%) strengthening of the euro
Profit \u20ac1 million (2021: \u20acnil). Other compre-
\nvolatility to revalue all monetary assets and liabilities
versus Chinese yuan
hensive income \u20acnil (2021: profit \u20ac2 million)
\n(including derivative financial instruments) in a currency
\nother than the functional currency of the subsidiary in
A 10% (2021: 10%) strengthening of the euro
Profit \u20acnil (2021: \u20acnil). Other comprehensive
\nthe balance sheet at year-end. These effects are of a
versus Colombian peso
income \u20acnil (2021: loss \u20ac35 million)
\nfairly linear nature.
\nInterest rate:
\nWe perform interest rate sensitivity analysis by applying
A 100 basis points increase of
Loss \u20ac16 million (2021: loss \u20ac11 million)
\nan adjustment to the interest rate curve prevailing
EUR interest rates
\nat year-end. This adjustment is based on observed
\nchanges in the interest rate in the past and manage-
A 100 basis points increase of
Profit \u20ac1 million
(2021: \u20acnil)
\nment\u2019s expectation for reasonably possible* future
USD interest rates
\nmovements over a longer term from a sensitivity test
\nperspective. We then apply the expected possible
A 100 basis points increase of
Profit \u20ac1 million (2021: profit \u20ac1 million)
\nvolatility to revalue all interest bearing assets and liabili-
GBP interest rates
\nties. These effects are of a fairly linear nature.
\n*
This analysis does not indicate any probability of such changes occurring; nor does it preclude
\nlarger changes in any given period or longer term.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfMarketRiskExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21342": {
"value": "Trade and \ufb01nancing transactions We operate in a large number of countries, where we have
\nclients and suppliers, many of whom are outside of
\nthe local functional currency environment. This creates
\ncurrency exposures which are partly netted out on group
\nlevel. The purpose of our foreign currency hedging
\nactivities is to protect us from the risk that the functional
\ncurrency net cash flows resulting from trade or financ-
\ning transactions are adversely affected by changes in
\nexchange rates. Our policy is to hedge our transactional
\nforeign exchange rate exposures above predefined
\nthresholds from recognized assets and liabilities. Hedge
\naccounting is generally not applied for foreign currency
\nhedging activities, except for certain specific forecasted
\ntransactions. In 2022 and 2021, we applied cash flow
\nhedge accounting on a COP 1,600 billion hedge of the
\nforeign currency risk related to the acquisition of Grupo
\nOrbis which was finalized in April 2022. The hedges
\nmatured in April 2022. The fair value of the cash flow
\nhedge of \u20ac31 million (positive) has subsequently been
\nreleased from other comprehensive income and allo-
\ncated to the purchase consideration. The hedges were
\nfully effective during 2022 and 2021. In 2022, cash flow
\nhedge accounting was applied on a $450 million hedge
\nfor foreign currency risk exposure related to the intended
\nacquisition of Kansai Paint\u2019s African activities, refer to
\nNote 2 for further details. The fair value of this hedge at
\nyear-end 2022 was \u20ac37 million negative; the spot result
\nrelated to this hedge was recognized in other compre-
\nhensive income and accumulated in the cash flow hedge
\nHedged notional amounts at year-end
\nBuy
Sell
Buy
Sell
\nIn \u20ac millions
2021
2021
2022
2022
\nUS dollar
263
413
784
692
\nPound sterling
601
45
649
10
\nChinese yuan
179
145
110
157
\nColombian peso
348
1
\u2014
1
\nOther*
391
745
278
821
\nTotal
1,782
1,349
1,821
1,681
\n* No individually significant position is included in \u2018Other\u2019, the amounts per currency
\nare highly disaggregated.
\nreserve. The hedge will mature in the course of 2023.
\nDuring 2022, the hedge was fully effective.
\nIn general, our forward exchange contracts have a maturity
\nof less than one year. When necessary, forward exchange
\ncontracts are rolled over at maturity. Currency derivatives
\nare not used for speculative purposes.
\nInvestments in foreign subsidiaries, associates
\nand joint ventures
\nDuring 2022 and 2021, net investment hedge account-
\ning was applied on hedges of certain net investments in
\nforeign operations, which were partly hedged. The main
\nnet investments that were hedged with forward exchange
\ncontracts for the same currencies were related to Chinese
\nyuan, Indonesian rupiah and Indian rupee (2021: Brazilian
\nreal, Chinese yuan, Indonesian rupiah and Vietnamese
\ndong). The spot results related to these hedges were
\nrecognized in other comprehensive income and accumu-
\nlated in the cumulative translation reserves. In addition,
\na net investment in Colombian peso was hedged with a
\nCOP 330 million bank loan. The spot result related to this
\nhedge was recognized in other comprehensive income
\nand accumulated in the cumulative translation reserves. At
\nyear-end 2022, the hedge of net investment in Colombian
\npeso was outstanding. During 2022 and 2021, the hedges
\nof net investments were fully effective.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21479": {
"value": "CAPITAL RISK MANAGEMENT Our objectives when managing capital are to safeguard
\nour ability to satisfy our capital providers and to maintain a
\ncapital structure that optimizes our cost of capital. For this
\nwe maintain an adequate financial strategy, with the objec-
\ntive to retain a strong investment grade credit rating as
\nassigned by the rating agencies Moody\u2019s and Standard &
\nPoor\u2019s. The capital structure can be altered, among others,
\nby adjusting the amounts of dividends paid to sharehold-
\ners, return of capital to capital providers, or issuance of
\nnew debt or shares. In March 2022, two bonds were
\nissued with nominal values of \u20ac600 million each of which
\none at a coupon rate of 1.5%, maturing in 2028 and one
\nat a coupon rate of 2.0%, maturing in 2032. In July 2022,
\na bond of \u20ac750 million matured.
\nConsistent with other companies in the industry, we
\nmonitor capital headroom based on the leverage ratio
\nnet debt/EBITDA, for which we have set a target range
\nof around 2. The ratio was 3.8 at December 31, 2022
\n(December 31, 2021: 1.6). EBITDA is operating income
\nexcluding depreciation and amortization, which amounted
\nto \u20ac1,076 million for 2022 (2021: \u20ac1,469 million). Net debt
\nis calculated as the total of long- and short-term borrow-
\nings less cash and cash equivalents and short-term invest-
\nments, amounting to \u20ac4,089 million at year end 2022 (year
\nend 2021: \u20ac2,340 million).",
"dimensions": {
"concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21508": {
"value": "Fair value per \ufb01nancial instrument category Carrying value per IFRS 9
\ncategory
\nMeasured
Fair value
\nMeasured at
at fair value
of items
\nCarrying
Out of scope
amortized
through pro\ufb01t
Total
measured at
\nIn \u20ac millions
amount
of IFRS 7
\n1
\ncost
or loss
carrying value
amortized cost
\n330
\n2021 year-end
\nFinancial non-current assets
\n2
\n2,076
1,766
302
8
310
\nTrade and other receivables
\n3
\n2,339
182
2,089
68
2,157
2,089
\nShort-term investments
58
\u2014
\u2014
58
58
\u2014
\nCash and cash equivalents
1,152
\u2014
\u2014
1,152
1,152
\u2014
\nTotal \ufb01nancial assets
5,625
1,948
2,391
1,286
3,677
2,419
\nLong-term borrowings
1,994
\u2014
1,994
\u2014
1,994
2,114
\nShort-term borrowings
1,556
\u2014
1,556
\u2014
1,556
1,570
\nTrade and other payables
\n4
\n2,948
455
2,466
27
2,493
2,466
\nTotal \ufb01nancial liabilities
6,498
455
6,016
27
6,043
6,150
\n2022 year-end
\n311
Financial non-current assets
\n2
\n1,475
1,158
308
9
317
\nTrade and other receivables
\n3
\n2,447
214
2,215
18
2,233
2,215
\nShort-term investments
336
\u2014
\u2014
336
336
\u2014
\nCash and cash equivalents
1,450
\u2014
\u2014
1,450
1,450
\u2014
\nTotal \ufb01nancial assets
5,708
1,372
2,523
1,813
4,336
2,526
\nLong-term borrowings
3,332
\u2014
3,332
\u2014
3,332
3,031
\nShort-term borrowings
2,543
\u2014
2,543
\u2014
2,543
2,543
\nTrade and other payables
\n4
\n2,801
418
2,323
60
2,383
2,323
\nTotal \ufb01nancial liabilities
8,676
418
8,198
60
8,258
7,897
\n1
\nMainly includes pension assets (refer to Note 15), (non) income tax related
\nreceivables (refer to Note 17), payables to employees and (non) income taxes payables
\n(refer to Note 22).
\n2
\n\u20ac308 million (2021: \u20ac302 million) relates to loans and receivables (refer to
\nNote 15), \u20ac9 million (2021: \u20ac8 million) relates to other than financial instruments
\n(refer to Note 15).
\n3
\n\u20ac2,215 million (2021: \u20ac2,089 million) relates to the remainder of trade and
\nother receivables (refer to Note 17) and \u20ac18 million (2021: \u20ac68 million) relates
\nto FX contracts.
\n4
\n\u20ac2,323 million (2021: \u20ac2,466 million) relates to the remainder of trade and other
\npayables (refer to Note 22) and \u20ac60 million (2021: \u20ac27 million) relates to
\nFX contracts.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21683": {
"value": "Fair value of \ufb01nancial instruments and IFRS 9 categories
\nIn the table \u201cFair value per financial instrument category\u201d
\ninsight is provided in the recognition of the respec-
\ntive financial instruments per IFRS 9 category. The total
\ncarrying value is based on the accounting principles as
\noutlined in Note 1. Financial instruments are recognized at
\nfair value and subsequently recognized either at fair value
\nor at amortized cost, using the effective interest method.
\nThe financial instruments accounted for at fair value
\nthrough profit or loss are derivative financial instruments
\nand securities included in financial non-current assets,
\ncash and cash equivalents and short-term investments.
\nThe remaining financial instruments are accounted for at
\namortized cost.
\nThe following valuation methods for financial instruments
\ncarried at fair value through profit or loss are distinguished:
\n\u2022
Level 1: quoted prices (unadjusted) in active markets for
\nidentical assets or liabilities
\n\u2022
Level 2: inputs other than quoted prices included within
\nlevel 1 that are observable for the asset or liability,
136
AkzoNobel Report 2022
|
Financial statements
either directly (i.e. as prices) or indirectly (i.e. derived
\nfrom prices)
\n\u2022
Level 3: inputs for the asset or liability that are not based
\non observable market data (unobservable)
\nFor the purpose of determining the fair value per financial
\ninstrument category, shown in the column \u2018fair value\u2019, the
\nfollowing valuation methods were used:
\n\u2022
A level 1 valuation method was used to estimate the
\nfair value of the bonds issued included in our long-term
\nand short-term borrowings. The estimate is based on
\nthe quoted market prices for the same or similar issues
\nor on the current rates offered to us for debt with similar
\nmaturities.
\n\u2022
A level 2 valuation method was used to determine the
\nfair value of marketable securities included in cash
\nand cash equivalents and short-term investments by
\nobtaining the market price at reporting date. The fair
\nvalue of foreign currency contracts and swap contracts
\nwas determined by level 2 valuation techniques using
\nmarket observable input (such as foreign currency
\ninterest rates based on Reuters) and by obtaining
\nquotes from dealers and brokers. A level 2 valuation
\nmethod was used to determine the fair value of time
\ndeposits included in cash and cash equivalents and
\nshort-term investments using the market interest
\nrate. The carrying amounts of cash and banks, trade
\nreceivables less allowance for impairment, other short-
\nterm borrowings and other current liabilities approximate
\nfair value due to the short maturity period of those
\ninstruments and were determined using level 2 fair value
\nmethods.
\n\u2022
A level 3 fair valuation method (discounted cash flow)
\nwas used for the subordinated loan granted to the
\nPension Fund APF in the Netherlands, resulting in a fair
\nvalue of \u20ac93 million.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21684": {
"value": "Fair value of \ufb01nancial instruments and IFRS 9 categories
\nIn the table \u201cFair value per financial instrument category\u201d
\ninsight is provided in the recognition of the respec-
\ntive financial instruments per IFRS 9 category. The total
\ncarrying value is based on the accounting principles as
\noutlined in Note 1. Financial instruments are recognized at
\nfair value and subsequently recognized either at fair value
\nor at amortized cost, using the effective interest method.
\nThe financial instruments accounted for at fair value
\nthrough profit or loss are derivative financial instruments
\nand securities included in financial non-current assets,
\ncash and cash equivalents and short-term investments.
\nThe remaining financial instruments are accounted for at
\namortized cost.
\nThe following valuation methods for financial instruments
\ncarried at fair value through profit or loss are distinguished:
\n\u2022
Level 1: quoted prices (unadjusted) in active markets for
\nidentical assets or liabilities
\n\u2022
Level 2: inputs other than quoted prices included within
\nlevel 1 that are observable for the asset or liability,
136
AkzoNobel Report 2022
|
Financial statements
either directly (i.e. as prices) or indirectly (i.e. derived
\nfrom prices)
\n\u2022
Level 3: inputs for the asset or liability that are not based
\non observable market data (unobservable)
\nFor the purpose of determining the fair value per financial
\ninstrument category, shown in the column \u2018fair value\u2019, the
\nfollowing valuation methods were used:
\n\u2022
A level 1 valuation method was used to estimate the
\nfair value of the bonds issued included in our long-term
\nand short-term borrowings. The estimate is based on
\nthe quoted market prices for the same or similar issues
\nor on the current rates offered to us for debt with similar
\nmaturities.
\n\u2022
A level 2 valuation method was used to determine the
\nfair value of marketable securities included in cash
\nand cash equivalents and short-term investments by
\nobtaining the market price at reporting date. The fair
\nvalue of foreign currency contracts and swap contracts
\nwas determined by level 2 valuation techniques using
\nmarket observable input (such as foreign currency
\ninterest rates based on Reuters) and by obtaining
\nquotes from dealers and brokers. A level 2 valuation
\nmethod was used to determine the fair value of time
\ndeposits included in cash and cash equivalents and
\nshort-term investments using the market interest
\nrate. The carrying amounts of cash and banks, trade
\nreceivables less allowance for impairment, other short-
\nterm borrowings and other current liabilities approximate
\nfair value due to the short maturity period of those
\ninstruments and were determined using level 2 fair value
\nmethods.
\n\u2022
A level 3 fair valuation method (discounted cash flow)
\nwas used for the subordinated loan granted to the
\nPension Fund APF in the Netherlands, resulting in a fair
\nvalue of \u20ac93 million.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21779": {
"value": "Sensitivities on \ufb01nancial instruments at year-end 2022 Sensitivity object
Sensitivity
Hypothetical impact
\nForeign currencies:
\nWe perform foreign currency sensitivity analysis by
A 10% (2021: 10%) strengthening of the euro
Profit \u20ac9 million (2021: profit \u20ac6 million);
\napplying an adjustment to the spot rates prevailing
versus US dollar
Other comprehensive income loss \u20ac41
\nat year-end. This adjustment is based on observed
million (2021: profit \u20ac1 million)
\nchanges in the exchange rate in the past and manage-
A 10% (2021: 10%) strengthening of the euro
\nment\u2019s expectation for reasonably possible* future
versus the pound sterling
Profit \u20ac1 million (2021: profit \u20ac1 million)
\nmovements over a longer term from a sensitivity test
\nperspective. We then apply the expected possible
A 10% (2021: 10%) strengthening of the euro
Profit \u20ac1 million (2021: \u20acnil). Other compre-
\nvolatility to revalue all monetary assets and liabilities
versus Chinese yuan
hensive income \u20acnil (2021: profit \u20ac2 million)
\n(including derivative financial instruments) in a currency
\nother than the functional currency of the subsidiary in
A 10% (2021: 10%) strengthening of the euro
Profit \u20acnil (2021: \u20acnil). Other comprehensive
\nthe balance sheet at year-end. These effects are of a
versus Colombian peso
income \u20acnil (2021: loss \u20ac35 million)
\nfairly linear nature.
\nInterest rate:
\nWe perform interest rate sensitivity analysis by applying
A 100 basis points increase of
Loss \u20ac16 million (2021: loss \u20ac11 million)
\nan adjustment to the interest rate curve prevailing
EUR interest rates
\nat year-end. This adjustment is based on observed
\nchanges in the interest rate in the past and manage-
A 100 basis points increase of
Profit \u20ac1 million
(2021: \u20acnil)
\nment\u2019s expectation for reasonably possible* future
USD interest rates
\nmovements over a longer term from a sensitivity test
\nperspective. We then apply the expected possible
A 100 basis points increase of
Profit \u20ac1 million (2021: profit \u20ac1 million)
\nvolatility to revalue all interest bearing assets and liabili-
GBP interest rates
\nties. These effects are of a fairly linear nature.
\n*
This analysis does not indicate any probability of such changes occurring; nor does it preclude
\nlarger changes in any given period or longer term.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21849": {
"value": "Note 28 SUBSEQUENT EVENTS
\nNo significant subsequent events have been identified.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21866": {
"value": "COMPANY FINANCIAL STATEMENTS Statement of income
\nIn \u20ac millions, for the year ended
\nDecember 31
Note
2021
2022
\nRevenue
A
5
4
\nGross pro\ufb01t
5
4
\nGeneral and administrative expenses
(10)
(46)
\nOther results
\u2014
(1)
\n(10)
(47)
\nOperating income
(5)
(43)
\nFinancing income and expenses
B
(25)
(71)
\nNet income from subsidiaries, associates
D
871
440
\nand joint ventures
\n846
369
\nPro\ufb01t before tax
841
326
\nIncome tax
(12)
26
\nNet income
829
352
\nBalance sheet, before allocation of pro\ufb01t
\nIn \u20ac millions, at December 31
Note
2021
2022
\nAssets
\nNon-current assets
\nIntangible assets
C
91
99
\nDeferred tax assets
30
51
\nFinancial non-current assets
D
12,497
12,656
\nTotal non-current assets
12,618
12,806
\nCurrent assets
\nShort-term receivables
E
154
223
\nShort-term investments
G
\u2013
290
\nCash and cash equivalents
G
404
643
\nTotal current assets
558
1,156
\nTotal assets
13,176
13,962
\nEquity and liabilities
\nEquity
\nSubscribed share capital
91
87
\nCash flow hedge reserve
(19)
(34)
\nOther legal reserves
275
296
\nCumulative translation reserves
(493)
(656)
\nActuarial gains and losses
(2,613)
(2,902)
\nOther reserves
7,435
7,265
\nUndistributed results
749
277
\nShareholders\u2019 equity
F
5,425
4,333
\nProvisions
4
3
\nNon-current liabilities
\nLong-term borrowings
G
6,225
7,102
\nTotal non-current liabilities
6,225
7,102
\nCurrent liabilities
\nShort-term borrowings
G
1,425
2,403
\nOther current liabilities
H
97
121
\nTotal current liabilities
1,522
2,524
\nTotal equity and liabilities
13,176
13,962
\nAkzoNobel Report 2022
|
Financial statements
138
Note A GENERAL INFORMATION
\nAkzo Nobel N.V. is a company headquartered in the Neth-
\nerlands. The address of our registered office is Christian
\nNeefestraat 2, Amsterdam; the Chamber of Commerce
\nnumber is 09007809.
\nThe financial statements of Akzo Nobel N.V. have been
\nprepared in accordance with Part 9 of Book 2 of the Dutch
\nCivil Code, making use of the option of Article 362 of the
\nCode, meaning that the accounting principles used are
\nthe same as for the Consolidated financial statements.
\nForeign currency amounts have been translated, assets
\nand liabilities have been valued, and net income has been
\ndetermined in accordance with the principles of valuation
\nand determination of income presented in Note 1 of the
\nConsolidated financial statements.
\nFor the Company financial statements, revenue is gener-
\nated through service contracts with third parties.
\nConsolidated subsidiaries are all entities (including inter-
\nmediate subsidiaries) over which the company has control.
\nThe company controls an entity when it is exposed, or
\nhas rights, to variable returns from its involvement with
\nthe subsidiary and has the ability to affect those returns
\nthrough its power over the subsidiary. Subsidiaries are
\nrecognized from the date on which control is transferred to
\nthe company or its intermediate holding entities. They are
\nderecognized from the date that control ceases.
\nThe company applies the acquisition method to account
\nfor acquiring subsidiaries. The consideration transferred
\nfor the acquisition of a subsidiary is the fair value of assets
\ntransferred by the company, liabilities incurred to the
\nformer owners of the acquiree and the equity interests
\nissued by the company. Identifiable assets acquired and
\nliabilities and contingent liabilities assumed in an acquisi-
\ntion are measured initially at their fair values at the acquisi-
\ntion date, and are subsumed in the net asset value of the
\ninvestment in consolidated subsidiaries. Acquisition-related
\ncosts are expensed as incurred.
\nInvestments in consolidated subsidiaries are measured
\nusing the equity method, based on the measurement of
\nassets, provisions and liabilities and determination of profit
\nbased on the principles applied in the consolidated finan-
\ncial statements. When an acquisition of an investment in
\na consolidated subsidiary is achieved in stages, any previ-
\nously held equity interest is remeasured to fair value on the
\ndate of acquisition. The remeasurement against the book
\nvalue is accounted for in the statement of income. When
\nthe company ceases to have control over a subsidiary,
\nany retained interest is remeasured to its fair value, with
\nthe change in carrying amount to be accounted for in the
\nstatement of income.
\nWhen parts of investments in consolidated subsidiaries are
\nbought or sold, and such transaction does not result in the
\nloss of control, the difference between the consideration
\npaid or received and the carrying amount of the net assets
\nacquired or sold, is directly recognized in equity.
\nThe remuneration paragraph is included in Note 26 of
\nthe Consolidated financial statements. The number
\nof employees having a contract with the Company at
\nyear-end 2022 was 7 (2021: 7). All employees are based
\nin the Netherlands.
\nAkzo Nobel N.V. is head of the Dutch fiscal unity for corpo-
\nrate income tax. Members of the fiscal unity reflect taxes
\nin their accounts on the basis as if they are taxable on a
\nstandalone basis and are charged or credited accordingly
\nby the company.
\nNote B
FINANCING INCOME AND
\nEXPENSES
\nOther items in 2022 and 2021 mainly include foreign
\ncurrency results.
\nFinancing income and expenses
\nIn \u20ac millions
2021
2022
\nFinancing income - third parties
2
5
\nFinancing income - subsidiaries
77
53
\nFinancing expense - third parties
(94)
(75)
\nFinancing expense - subsidiaries
(6)
(39)
\nNet Interest on net debt
(21)
(56)
\nOther items
(4)
(15)
\nNet other \ufb01nancing income/(expenses)
(4)
(15)
\nTotal
(25)
(71)
\nNote C INTANGIBLE ASSETS
\nIntangible assets mainly include (internally developed)
\nsoftware.
\nIntangible assets
\nIn \u20ac millions
Other intangibles
\nBalance at January 1, 2021
\nCost of (internally developed) intangibles
82
\nAccumulated amortization
(11)
\nCarrying value at January 1, 2021
71
\nMovements in 2021
\nAdditions
31
\nAmortization
(11)
\nTotal movements
20
\nCost of (internally developed) intangibles
113
\nAccumulated amortization
(22)
\nBalance at December 31, 2021
91
\nMovements in 2022
\nAdditions
26
\nAmortization
(18)
\nTotal movements
8
\nCost of (internally developed) intangibles
139
\nAccumulated amortization
(40)
\nBalance at December 31, 2022
99
\nAkzoNobel Report 2022
|
Financial statements
139
Note D
FINANCIAL NON-CURRENT ASSETS
\nMovements in non-current assets
\nSubsidiaries
\nOther non-
\nIn \u20ac millions
Share in capital
Loans
current assets
Total
\nBalance at January 1, 2021
9,284
2,851
90
12,225
\nInvestments/acquisitions/capital contributions
41
\u2014
\u2014
41
\nDivestments/capital repayments/dividends
(61)
\u2014
\u2014
(61)
\nNet income from subsidiaries
871
\u2014
\u2014
871
\nEquity-settled transactions
11
\u2014
\u2014
11
\nLoans granted
\u2014
293
\u2014
293
\nLoans transferred
\u2014
29
\u2014
29
\nRepayment of loans
\u2014
(1,298)
\u2014
(1,298)
\nChanges in exchange rates
337
57
\u2014
394
\nPost-retirement benefits
(8)
\u2014
\u2014
(8)
\nBalance at December 31, 2021
10,475
1,932
90
12,497
\nImpact IAS 29 Hyperinflation T\u00fcrkiye
16
\u2014
\u2014
16
\nBalance at January 1, 2022
10,491
1,932
90
12,513
\nInvestments/acquisitions/capital contributions
458
\u2014
2
460
\nDivestments/capital repayments/dividends
(1,058)
\u2014
\u2014
(1,058)
\nNet income from subsidiaries
440
\u2014
\u2014
440
\nEquity-settled transactions
12
\u2014
\u2014
12
\nCash flow hedges
(3)
\u2014
\u2014
(3)
\nLoans granted
\u2014
987
\u2014
987
\nRepayment of loans
\u2014
(244)
\u2014
(244)
\nChanges in exchange rates
(180)
19
\u2014
(161)
\nPost-retirement benefits
(290)
\u2014
\u2014
(290)
\nBalance at December 31, 2022
9,870
2,694
92
12,656
\nInvestments in subsidiaries are measured using the equity
\nmethod of accounting.
\nIntercompany loans are priced at arm\u2019s length, taking
\nfactors like the credit quality of AkzoNobel and the coun-
\nterparty, country and currency risks into consideration. The
\nfair value of the loans to subsidiaries approximates
\nthe book value.
\nDue to an intra-group funding restructuring, several
\nintercompany loans were transferred in 2021 from certain
\nforeign subsidiaries to Akzo Nobel N.V..
\nLoans to subsidiaries that will mature in 2023 amounted
\nto \u20ac262 million, an amount of \u20ac1,738 million will mature
\nbetween 2024 and 2027 and an amount of \u20ac84 million
\nafter 2027. The remainder of the loans to subsidiaries has
\nno fixed repayment schedule.
\nOther non-current assets include the subordinated loan
\ngranted to the Pension Fund APF in the Netherlands.
\nUsing a level 3 fair valuation method (discounted cash
\nflow), a fair value of \u20ac93 million was determined for this
\nloan. For information on valuation methods, see Note 27 of
\nthe Consolidated financial statements.
\nNote E
SHORT-TERM RECEIVABLES
\nShort-term receivables
\nIn \u20ac millions, at December 31
2021
2022
\nReceivables from subsidiaries
133
202
\nFX contracts
14
18
\nOther receivables
7
3
\nTotal
154
223
\nShort-term receivables are expected to be settled within
\none year. Receivables from subsidiaries include interest to
\nbe received on intercompany loans of \u20ac17 million (2021:
\n\u20ac10 million). The fair value of the receivables from subsid-
\niaries approximates the book value.
\nNote F
SHAREHOLDERS\u2019 EQUITY
\nThe holders of common shares are entitled to receive
\ndividends as declared from time to time and are entitled
\nto one vote per share at the Annual General Meeting of
\nshareholders. The holders of the priority shares are
\nentitled to a dividend of 6% per share or the statutory
\ninterest in the Netherlands, whichever is lower, plus any
\naccrued and unpaid dividends. They are entitled to 800
\nvotes per share (in accordance with the 800 times higher
\nnominal value per share) at the Annual General Meeting
\nof shareholders. In addition, the holders of priority shares
\nhave the right to draw up binding lists of nominees for
\nappointment to the Supervisory Board and the Board of
\nManagement; amendments to the Articles of Association
\nare subject to the approval of the Meeting of Holders of
\nPriority Shares.
\nPriority shares may only be transferred to a transferee
\ndesignated by a Meeting of Holders of Priority Shares
\nand against payment of the par value of the shares, plus
\ninterest at the rate of 6% per annum or the statutory inter-
\nest in the Netherlands, whichever is lower, for the period
\nbetween the beginning of the year and the date of transfer.
\nThere are no restrictions on voting rights of holders of
\ncommon or priority shares. The Articles of Association set
\nout procedures for exercising voting rights. The Annual
\nGeneral Meeting of shareholders has resolved in 2022 to
\nauthorize the Board of Management for a period of 18
\nmonths (i) to issue shares (or grant rights to shares) in
\nthe capital of the company up to a maximum of 10% of
\nAkzoNobel Report 2022
|
Financial statements
140
Statement of changes in equity
\nSubscribed
\nLegal reserves
\nActuarial
Undistributed
Shareholders'
Cash \ufb02ow
Other
Cumulative trans-
\nIn \u20ac millions
share capital
hedges
legal reserves
lation reserves
gains & losses
Other reserves
results
equity
\nBalance at January 1, 2021
95
\u2014
246
(873)
(2,587)
8,317
548
5,746
\nChanges in exchange rates in respect of
\u2014
\u2014
\u2014
380
\u2014
\u2014
\u2014
380
\nsubsidiaries, associates and joint ventures
\nOther comprehensive income/(expense)
\u2014
(19)
\u2014
\u2014
\u2014
\u2014
\u2014
(19)
\nPost-retirement benefits
\u2014
\u2014
\u2014
\u2014
(26)
\u2014
\u2014
(26)
\nNet income
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
829
829
\nComprehensive income
\u2014
(19)
\u2014
380
(26)
\u2014
829
1,164
\nDividend
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
(365)
(365)
\nEquity-settled transactions
\u2014
\u2014
\u2014
\u2014
\u2014
16
\u2014
16
\nShare buyback
(4)
\u2014
\u2014
\u2014
\u2014
(1,131)
\u2014
(1,135)
\nAcquisition of non-controlling interests
\u2014
\u2014
\u2014
\u2014
\u2014
(1)
\u2014
(1)
\nAddition to other reserves
\u2014
\u2014
29
\u2014
\u2014
234
(263)
\u2014
\nBalance at December 31, 2021
91
(19)
275
(493)
(2,613)
7,435
749
5,425
\nImpact IAS 29 Hyperinflation T\u00fcrkiye*
\u2014
\u2014
\u2014
\u2014
\u2014
16
\u2014
16
\nBalance at January 1, 2022
91
(19)
275
(493)
(2,613)
7,451
749
5,441
\nChanges in exchange rates in respect of
\u2014
\u2014
\u2014
(163)
\u2014
\u2014
\u2014
(163)
\nsubsidiaries, associates and joint ventures
\nCash flow hedges
\u2014
(15)
\u2014
\u2014
\u2014
\u2014
\u2014
(15)
\nPost-retirement benefits
\u2014
\u2014
\u2014
\u2014
(289)
\u2014
\u2014
(289)
\nNet income
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
352
352
\nComprehensive income
\u2014
(15)
\u2014
(163)
(289)
\u2014
352
(115)
\nDividend
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
(347)
(347)
\nEquity-settled transactions
\u2014
\u2014
\u2014
\u2014
\u2014
14
\u2014
14
\nShare buyback
(4)
\u2014
\u2014
\u2014
\u2014
(656)
\u2014
(660)
\nAddition to other reserves
\u2014
\u2014
21
\u2014
\u2014
456
(477)
\u2014
\nBalance at December 31, 2022
87
(34)
296
(656)
(2,902)
7,265
277
4,333
\n*
As per June 2022, T\u00fcrkiye has been identified as a hyperinflationary economy. IAS 29 \u201cFinancial Reporting in Hyperinflationary Economies\u201d
\nhas been applied for our activities in T\u00fcrkiye as from January 1, 2022. Refer to Note 8 in the Consolidated Financial Statements for details on
\nthe financial impact from applying IAS 29. The opening balance adjustment includes a tax charge of \u20ac4 million.
\nUnrestricted reserves at year-end
\nIn \u20ac millions
2021
2022
\nShareholders' equity at year-end
5,425
4,333
\nSubscribed share capital
(91)
(87)
\nSubsidiaries' restrictions to transfer funds
(174)
(190)
\nReserve for development costs
(101)
(106)
\nUnrestricted reserves
5,059
3,950
\nthe total number of shares outstanding (and to restrict or
\nexclude the pre-emptive rights to those shares) and (ii)
\nto acquire shares in the capital of the company, provided
\nthat the shares that will at any time be held will not exceed
\n10% of the issued share capital. The issue or repurchase
\nof shares requires the approval of the Supervisory Board.
\nOn February 16, 2021, a \u20ac1 billion share buyback
\nprogram was announced, which was completed in
\nJanuary 2022. All shares bought back under this program
\nwere cancelled.
\nIn February 2022, a \u20ac500 million share buyback program
\nwas announced, which was completed in 2022. As at
\nDecember 31, 2022, a total of 7.3 million shares had
\nbeen acquired under this program, of which 3.3 million
\nwere cancelled.
\nOf the shareholders\u2019 equity of \u20ac4.3 billion (2021:
\n\u20ac5.4 billion), \u20ac4.0 billion (2021: \u20ac5.1 billion) was unrestrict-
\ned and available for distribution, subject to the relevant
\nprovisions of our Articles of Association and Dutch law.
\nDuring 2022, 8,651,230 common shares were
\nrepurchased (2021: 11,296,283 shares repurchased).
\nThe total amount of shares cancelled was 7,448,544;
\ncancelled shares related to share buybacks in the
\ncurrent and the previous year (2021: 9,247,849 shares
\ncancelled). For further details on weighted average
\nnumber of shares, refer to Note 10 of the Consolidated
\nfinancial statements.
\nAkzoNobel Report 2022
|
Financial statements
141
Legal reserves include the \u20ac190 million reserve relating
\nto earnings retained by subsidiaries, associates and joint
\nventures after the year 1983, to the extent that there are
\nlimitations to arrange profit distributions, and a \u20ac106 million
\nreserve for capitalized development costs.
\nDividend
\nOur dividend policy is to pay a stable to rising dividend.
\nIn 2022, an interim dividend of \u20ac0.44 (2021: \u20ac0.44) per
\ncommon share was paid. We propose a 2022 final divi-
\ndend of \u20ac1.54 (2021: \u20ac1.54) per common share, which
\nwould equal a total 2022 dividend of \u20ac1.98 (2021: \u20ac1.98).
\nNote G NET DEBT
\nAnalysis of net debt by category
\nIn \u20ac millions, at December 31
2021
2022
\nBonds issued
1,740
2,934
\nDebt from subsidiaries*
4,485
4,168
\nLong-term borrowings
6,225
7,102
\nCurrent portion of long-term
749
\u2014
\nborrowings
\nDebt to credit institutions
672
2,399
\nOther
4
4
\nShort-term borrowings
1,425
2,403
\nTotal borrowings
7,650
9,505
\nShort-term investments
\u2014
(290)
\nCash and cash equivalents
(404)
(643)
\nNet debt
7,246
8,572
\n*
Part of the debt from subsidiaries has no fixed repayment schedule. The fair value of
\nthe debt from subsidiaries approximates the book value.
\nMulti-currency revolving credit facility
\nWe have a multi-currency revolving credit facility of \u20ac1.3
\nbillion which runs until 2026. This facility does not contain
\nfinancial covenants or acceleration provisions that are
\nbased on adverse changes in ratings or material adverse
\nchange. At year-end 2022 and 2021, this facility has not
\nbeen drawn.
\nLong-term borrowings
\nFor the fair value of the bonds issued, refer to Note 27 of
\nthe Consolidated financial statements. We estimated the
\nfair value of the bonds issued based on the quoted market
\nprices (level 1) for the same or similar issues or on the
\ncurrent rates offered to us for debt with similar maturities. At
\nyear-end 2022, the fair value of the bonds included in long-
\nterm borrowings was \u20ac2,633 million (2021: \u20ac2,624 million).
\nBonds issued
\nIn \u20ac millions, at December 31
2021
2022
\n1 3/4% 2014/24 (\u20ac500 million)
499
499
\n1 1/8% 2016/26 (\u20ac500 million)
497
498
\n1 5/8% 2020/30 (\u20ac750 million)
744
745
\n1 1/2% 2022/28 (\u20ac600 million)
\u2014
595
\n2% 2022/32 (\u20ac600 million)
\u2014
597
\nTotal
1,740
2,934
\nIn March 2022, two bonds were issued with nominal
\nvalues of \u20ac600 million each, of which one at a coupon rate
\nof 1.5%, maturing in 2028 and one at a coupon rate of
\n2.0%, maturing in 2032.
\nAt year-end 2022 and 2021, none of the borrowings was
\nsecured by collateral.
\nIn 2023, an amount of \u20ac125 million of debt from subsidiar-
\nies will mature; a further amount of \u20ac100 million will mature
\nbetween 2024 and 2027. The remainder of the loans from
\nsubsidiaries has no fixed repayment schedule.
\nShort-term borrowings
\nFor the fair value of the debt to credit institutions, refer to
\nNote 27 of the Consolidated financial statements.
\nThe current portion of long-term borrowings decreased
\nmainly due to the maturing of a \u20ac750 million bond in
\nJuly 2022.
\nDebt to credit institutions includes our commercial paper
\nprogram. We have US dollar and euro commercial paper
\nprograms in place, which can be used to the extent that
\nthe equivalent portion of the \u20ac1.3 billion multi-currency
\nrevolving credit facility is not used. We had \u20ac1.3 billion
\ncommercial paper outstanding at year-end 2022 (2021:
\n\u20ac371 million) against an average interest rate of 1.6%
\n(2021: 0.5% negative). At year-end 2022, we had short-
\nterm bank loans outstanding of \u20ac1.1 billion (2021:
\n\u20ac300 million) against a 3-months Euribor plus a mark-up
\n(2021: interest rate of 0.6% negative). None of these facili-
\nties contain financial covenants.
\nShort-term investments
\nShort-term investments almost entirely consist of time
\ndeposits, money market funds and marketable securities
\nwith a lifetime at investment date longer than three months
\nbut shorter than twelve months. At year-end 2022, we had
\nshort-term investments outstanding for an amount of \u20ac290
\nmillion (2021: \u20acnil).
\nCash and cash equivalents
\nDeposits and money market funds within cash and
\ncash equivalents almost entirely consist of time deposits
\nimmediately convertible into known amounts of cash and
\nwith a maturity of three months or less from the date of
\npurchase and marketable securities that can be redeemed
\nimmediately when called.
\nCash and cash equivalents
\nIn \u20ac millions, at December 31
2021
2022
\nCash on hand and in banks
304
293
\nDeposits and money markets funds
100
350
\nwith a maturity less than three months
\nIncluded in cash and cash equiva-
404
643
\nlents in the balance sheet
\nNote H OTHER CURRENT
\nLIABILITIES
\nOther current liabilities
\nIn \u20ac millions, at December 31
2021
2022
\nPayables to subsidiairies*
30
23
\nFX contracts
27
60
\nOther suppliers
1
2
\nInterest payable
22
33
\nOther liabilities
17
3
\nTotal
97
121
\n* The fair value of the payables to subsidiaries approximates the book value.
\nOther current liabilities are expected to fall due in less than
\none year.
\nAkzoNobel Report 2022
|
Financial statements
142
Note I
FINANCIAL INSTRUMENTS
\nAt year-end 2022, Akzo Nobel N.V. had outstanding
\nforeign exchange contracts to buy currencies for a total of
\n\u20ac1.7 billion (year-end 2021: \u20ac1.7 billion), while contracts
\nto sell currencies totaled \u20ac1.5 billion (year-end 2021: \u20ac1.2
\nbillion). The contracts mainly relate to US dollars, pound
\nsterling and Chinese Yuan, and all have maturities within
\none year. These contracts offset the foreign exchange
\ncontracts concluded with the subsidiaries, and the fair
\nvalue changes are recognized in the statement of income
\nto offset the fair value changes on the contracts with the
\nsubsidiaries, or recognized in other comprehensive income
\nin case hedge accounting is applied. For information on
\nrisk exposure and risk management, see Note 27 of the
\nConsolidated \ufb01nancial statements.
\nNote J
CONTINGENT LIABILITIES
\nAkzo Nobel N.V. is parent of the group\u2019s \ufb01scal unity in the
\nNetherlands, and is therefore liable for the liabilities of said
\n\ufb01scal unity as a whole.
\nAkzo Nobel N.V. has declared in writing that it accepts joint
\nand several liability for contractual debts of certain Dutch
\nand Irish consolidated companies (Article 403 of Book
\n2 of the Dutch Civil Code and section 357(1) of the Irish
\nCompanies Act 2014). These debts, at year-end 2022,
\naggregating \u20ac0.6 billion (2021: \u20ac0.5 billion), are included in
\nthe Consolidated balance sheet.
\nAkzo Nobel N.V. has withdrawn its declarations of joint and
\nseveral liability under Article 403 of Book 2 of the
\nDutch Civil Code for certain Dutch former Specialty
\nChemicals subsidiaries divested as per October 1, 2018,
\nand is following the procedures to terminate its residual
\nliability under those declarations under Article 404 of
\nBook 2 of the Dutch Civil Code. One objection against the
\ntermination of residual liability is still pending and
\nAkzoNobel, Nouryon and Nobian continue to cooperate
\nto get this resolved.
\nAdditionally, at year-end 2022, guarantees were issued on
\nbehalf of consolidated companies for an amount of \u20ac0.4
\nbillion (2021: \u20ac0.3 billion). The debts and liabilities of the
\nconsolidated companies underlying these guarantees are
\nincluded in the Consolidated balance sheet.
\nNote K
INDEPENDENT AUDITOR\u2019S FEES
\nOur independent auditor, PricewaterhouseCoopers
\nAccountants N.V., has rendered, for the period to which
\nthe audit of the \ufb01nancial statements relates, in addition
\nto the audit of the statutory \ufb01nancial statements, mainly
\nstatutory audits of controlled entities.
\nFees PricewaterhouseCoopers
\nAccountants N.V.
\n2022
\nNetwork
\nIn the
outside the
\nIn \u20ac millions
Netherlands
Netherlands
Total
\nAudit of the \ufb01nancial
3.7
5.5
9.2
\nstatements
\nOther audit services
0.3
0.1
0.4
\nTax services
\u2014
\u2014
\u2014
\nOther non-audit
\u2014
\u2014
\u2014
\nservices
\nTotal
4.0
5.6
9.6
\nFees PricewaterhouseCoopers
\nAccountants N.V.
\n2021
\nNetwork
\nIn the
outside the
\nIn \u20ac millions
Netherlands
Netherlands
Total
\nAudit of the \ufb01nancial
4.1
4.3
8.4
\nstatements
\nOther audit services
0.2
0.1
0.3
\nTax services
\u2014
\u2014
\u2014
\nOther non-audit
\u2014
\u2014
\u2014
\nservices
\nTotal
4.3
4.4
8.7
\nAmsterdam, February 27, 2023
\nThe Board of Management
\nGreg Poux-Guillaume
\nMaarten de Vries
\nThe Supervisory Board
\nNils Smedegaard Andersen
\nEster Baiget
\nJolanda Poots-Bijl
\nHans Van Bylen
\nByron Grote
\nPamela Kirby
\nDick Sluimers
\nPatrick Thomas",
"dimensions": {
"concept": "ifrs-full:DisclosureOfConsolidatedAndSeparateFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:724500XYIJUGXAA5QD70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
}
}
}