{ "documentInfo": { "documentType": "https://xbrl.org/2021/xbrl-json", "features": { "xbrl:canonicalValues": true }, "namespaces": { "akzoy": "http://www.akzonobel.com/20231231", "ifrs-full": "https://xbrl.ifrs.org/taxonomy/2022-03-24/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/20231231/akzoy-2023-12-31.xsd" ] }, "facts": { "f-1": { "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" } }, "f-2": { "value": "10668000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Revenue", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-3": { "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" } }, "f-4": { "value": "6434000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CostOfSales", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-5": { "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" } }, "f-6": { "value": "4234000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GrossProfit", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-7": { "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" } }, "f-8": { "value": "2347000000", "decimals": -6, "dimensions": { "concept": "akzoy:SellingAndDistributionExpenses", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-9": { "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" } }, "f-10": { "value": "648000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GeneralAndAdministrativeExpense", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-11": { "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" } }, "f-12": { "value": "270000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ResearchAndDevelopmentExpense", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-13": { "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" } }, "f-14": { "value": "60000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherGainsLosses", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-15": { "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" } }, "f-16": { "value": "3205000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OperatingExpenseExcludingCostOfSales", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-17": { "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" } }, "f-18": { "value": "1029000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromOperatingActivities", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-19": { "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" } }, "f-20": { "value": "-272000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:FinanceIncomeCost", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-21": { "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" } }, "f-22": { "value": "27000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfProfitLossOfAssociatesAndJointVenturesAccountedForUsingEquityMethod", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-23": { "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" } }, "f-24": { "value": "784000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossBeforeTax", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-25": { "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" } }, "f-26": { "value": "296000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxExpenseContinuingOperations", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-27": { "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" } }, "f-28": { "value": "488000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromContinuingOperations", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-29": { "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" } }, "f-30": { "value": "-5000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromDiscontinuedOperations", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-31": { "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" } }, "f-32": { "value": "483000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-33": { "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" } }, "f-34": { "value": "442000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossAttributableToOwnersOfParent", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-35": { "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" } }, "f-36": { "value": "41000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossAttributableToNoncontrollingInterests", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-37": { "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" } }, "f-38": { "value": "483000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-39": { "value": "2.07", "decimals": 2, "dimensions": { "concept": "ifrs-full:BasicEarningsLossPerShareFromContinuingOperations", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-40": { "value": "2.62", "decimals": 2, "dimensions": { "concept": "ifrs-full:BasicEarningsLossPerShareFromContinuingOperations", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-41": { "value": "2.06", "decimals": 2, "dimensions": { "concept": "ifrs-full:DilutedEarningsLossPerShareFromContinuingOperations", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-42": { "value": "2.61", "decimals": 2, "dimensions": { "concept": "ifrs-full:DilutedEarningsLossPerShareFromContinuingOperations", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-43": { "value": "-0.06", "decimals": 2, "dimensions": { "concept": "ifrs-full:BasicEarningsLossPerShareFromDiscontinuedOperations", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-44": { "value": "-0.03", "decimals": 2, "dimensions": { "concept": "ifrs-full:BasicEarningsLossPerShareFromDiscontinuedOperations", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-45": { "value": "-0.05", "decimals": 2, "dimensions": { "concept": "ifrs-full:DilutedEarningsLossPerShareFromDiscontinuedOperations", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-46": { "value": "-0.03", "decimals": 2, "dimensions": { "concept": "ifrs-full:DilutedEarningsLossPerShareFromDiscontinuedOperations", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-47": { "value": "2.01", "decimals": 2, "dimensions": { "concept": "ifrs-full:BasicEarningsLossPerShare", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-48": { "value": "2.59", "decimals": 2, "dimensions": { "concept": "ifrs-full:BasicEarningsLossPerShare", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-49": { "value": "2.01", "decimals": 2, "dimensions": { "concept": "ifrs-full:DilutedEarningsLossPerShare", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-50": { "value": "2.58", "decimals": 2, "dimensions": { "concept": "ifrs-full:DilutedEarningsLossPerShare", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-51": { "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" } }, "f-52": { "value": "483000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-53": { "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" } }, "f-54": { "value": "-149000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-55": { "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" } }, "f-56": { "value": "-38000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToRemeasurementsOfDefinedBenefitPlansOfOtherComprehensiveIncome", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-57": { "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" } }, "f-58": { "value": "-111000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeNetOfTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-59": { "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" } }, "f-60": { "value": "-61000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxExchangeDifferencesOnTranslation", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-61": { "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" } }, "f-62": { "value": "34000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxCashFlowHedges", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-63": { "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" } }, "f-64": { "value": "1000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncomeThatWillBeReclassifiedToProfitOrLoss", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-65": { "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" } }, "f-66": { "value": "-28000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeThatWillBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-67": { "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" } }, "f-68": { "value": "139000000", "decimals": -6, "dimensions": { "concept": "akzoy:OtherComprehensiveExpense", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-69": { "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" } }, "f-70": { "value": "344000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-71": { "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" } }, "f-72": { "value": "310000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncomeAttributableToOwnersOfParent", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-73": { "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" } }, "f-74": { "value": "34000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncomeAttributableToNoncontrollingInterests", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-75": { "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" } }, "f-76": { "value": "344000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-77": { "value": "4072000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IntangibleAssetsAndGoodwill", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-78": { "value": "4081000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IntangibleAssetsAndGoodwill", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-79": { "value": "1968000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:PropertyPlantAndEquipment", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-80": { "value": "1994000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:PropertyPlantAndEquipment", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-81": { "value": "291000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RightofuseAssets", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-82": { "value": "302000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RightofuseAssets", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-83": { "value": "498000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxAssets", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-84": { "value": "512000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxAssets", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-85": { "value": "193000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InvestmentsInAssociatesAccountedForUsingEquityMethod", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-86": { "value": "216000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InvestmentsInAssociatesAccountedForUsingEquityMethod", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-87": { "value": "1475000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherNoncurrentFinancialAssets", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-88": { "value": "1409000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherNoncurrentFinancialAssets", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-89": { "value": "8497000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentAssets", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-90": { "value": "8514000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentAssets", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-91": { "value": "1843000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Inventories", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-92": { "value": "1649000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Inventories", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-93": { "value": "2447000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:TradeAndOtherCurrentReceivables", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-94": { "value": "2483000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:TradeAndOtherCurrentReceivables", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-95": { "value": "168000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxAssetsCurrent", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-96": { "value": "134000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxAssetsCurrent", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-97": { "value": "336000000", "decimals": -6, "dimensions": { "concept": "akzoy:ShortTermInvestments", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-98": { "value": "265000000", "decimals": -6, "dimensions": { "concept": "akzoy:ShortTermInvestments", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-99": { "value": "1450000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-100": { "value": "1513000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-101": { "value": "6244000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentAssets", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-102": { "value": "6044000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentAssets", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-103": { "value": "14741000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Assets", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-104": { "value": "14558000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Assets", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-105": { "value": "4333000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAttributableToOwnersOfParent", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-106": { "value": "4322000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAttributableToOwnersOfParent", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-107": { "value": "215000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncontrollingInterests", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-108": { "value": "224000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncontrollingInterests", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-109": { "value": "4548000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-110": { "value": "4546000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-111": { "value": "387000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentProvisionsForEmployeeBenefits", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-112": { "value": "423000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentProvisionsForEmployeeBenefits", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-113": { "value": "167000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherLongtermProvisions", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-114": { "value": "161000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherLongtermProvisions", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-115": { "value": "561000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxLiabilities", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-116": { "value": "557000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxLiabilities", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-117": { "value": "3332000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:LongtermBorrowings", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-118": { "value": "3165000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:LongtermBorrowings", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-119": { "value": "4447000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentLiabilities", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-120": { "value": "4306000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentLiabilities", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-121": { "value": "2543000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShorttermBorrowings", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-122": { "value": "2398000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShorttermBorrowings", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-123": { "value": "2801000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:TradeAndOtherCurrentPayables", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-124": { "value": "2933000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:TradeAndOtherCurrentPayables", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-125": { "value": "236000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxLiabilitiesCurrent", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-126": { "value": "211000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxLiabilitiesCurrent", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-127": { "value": "166000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentProvisions", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-128": { "value": "164000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentProvisions", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-129": { "value": "5746000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentLiabilities", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-130": { "value": "5706000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentLiabilities", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-131": { "value": "14741000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAndLiabilities", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-132": { "value": "14558000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAndLiabilities", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-133": { "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" } }, "f-134": { "value": "488000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromContinuingOperations", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-135": { "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" } }, "f-136": { "value": "357000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForDepreciationAndAmortisationExpense", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-137": { "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" } }, "f-138": { "value": "4000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForImpairmentLossReversalOfImpairmentLossRecognisedInProfitOrLoss", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-139": { "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" } }, "f-140": { "value": "-272000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForFinanceIncomeCost", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-141": { "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" } }, "f-142": { "value": "27000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForUndistributedProfitsOfAssociates", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-143": { "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" } }, "f-144": { "value": "-66000000", "decimals": -6, "dimensions": { "concept": "akzoy:AdjustmentsToAcquisitionsAndDivestments", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-145": { "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" } }, "f-146": { "value": "296000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForIncomeTaxExpense", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-147": { "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" } }, "f-148": { "value": "-254000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInWorkingCapital", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-149": { "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" } }, "f-150": { "value": "0", "decimals": -6, "dimensions": { "concept": "akzoy:AdjustmentsForPensionPreFunding", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-151": { "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" } }, "f-152": { "value": "-40000000", "decimals": -6, "dimensions": { "concept": "akzoy:ChangesInPostRetirementBenefitProvisions", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-153": { "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" } }, "f-154": { "value": "-13000000", "decimals": -6, "dimensions": { "concept": "akzoy:AdjustmentsForChangesInOtherProvisions", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-155": { "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" } }, "f-156": { "value": "167000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestPaidClassifiedAsOperatingActivities", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-157": { "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" } }, "f-158": { "value": "295000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxesPaidRefundClassifiedAsOperatingActivities", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-159": { "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" } }, "f-160": { "value": "63000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherAdjustmentsToReconcileProfitLoss", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-161": { "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" } }, "f-162": { "value": "1126000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInOperatingActivities", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-163": { "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" } }, "f-164": { "value": "286000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfPropertyPlantAndEquipmentIntangibleAssetsOtherThanGoodwillInvestmentPropertyAndOtherNoncurrentAssets", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-165": { "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" } }, "f-166": { "value": "71000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestReceivedClassifiedAsInvestingActivities", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-167": { "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" } }, "f-168": { "value": "13000000", "decimals": -6, "dimensions": { "concept": "akzoy:DividendsReceivedFromAssociatesAndJointVenturesClassifiedAsInvestingActivities", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-169": { "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" } }, "f-170": { "value": "114000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsUsedInObtainingControlOfSubsidiariesOrOtherBusinessesClassifiedAsInvestingActivities", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-171": { "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" } }, "f-172": { "value": "-64000000", "decimals": -6, "dimensions": { "concept": "akzoy:InvestmentsInShortTermInvestmentsClassifiedAsInvestingActivities", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-173": { "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" } }, "f-174": { "value": "142000000", "decimals": -6, "dimensions": { "concept": "akzoy:RepaymentsOfShortTermInvestmentsClassifiedAsInvestingActivities", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-175": { "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" } }, "f-176": { "value": "96000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromDisposalsOfPropertyPlantAndEquipmentIntangibleAssetsOtherThanGoodwillInvestmentPropertyAndOtherNoncurrentAssets", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-177": { "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" } }, "f-178": { "value": "-2000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherInflowsOutflowsOfCashClassifiedAsInvestingActivities", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-179": { "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" } }, "f-180": { "value": "-144000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInInvestingActivities", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-181": { "value": "9511000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromBorrowingsClassifiedAsFinancingActivities", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-182": { "value": "5836000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromBorrowingsClassifiedAsFinancingActivities", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-183": { "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" } }, "f-184": { "value": "6295000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RepaymentsOfBorrowingsClassifiedAsFinancingActivities", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-185": { "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" } }, "f-186": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:PaymentsToAcquireOrRedeemEntitysShares", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-187": { "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" } }, "f-188": { "value": "368000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaidClassifiedAsFinancingActivities", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-189": { "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" } }, "f-190": { "value": "-827000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInFinancingActivities", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-191": { "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" } }, "f-192": { "value": "155000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalentsBeforeEffectOfExchangeRateChanges", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-193": { "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" } }, "f-194": { "value": "-6000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalentsDiscontinuedOperations", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-195": { "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" } }, "f-196": { "value": "149000000", "decimals": -6, "dimensions": { "concept": "akzoy:IncreaseDecreaseInCashAndCashEquivalentsBeforeEffectOfExchangeRateChangesForContinuingOperations", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-197": { "value": "1112000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2022-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-198": { "value": "1398000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-199": { "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" } }, "f-200": { "value": "-94000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EffectOfExchangeRateChangesOnCashAndCashEquivalents", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-201": { "value": "1398000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-202": { "value": "1453000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalentsIfDifferentFromStatementOfFinancialPosition", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-203": { "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" } }, "f-204": { "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" } }, "f-205": { "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" } }, "f-206": { "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" } }, "f-207": { "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" } }, "f-208": { "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" } }, "f-209": { "value": "5636000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2022-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-210": { "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:CumulativeEffectAtDateOfInitialApplicationAxis": "ifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyRequiredByIFRSsMember", "unit": "iso4217:EUR" } }, "f-211": { "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:CumulativeEffectAtDateOfInitialApplicationAxis": "ifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyRequiredByIFRSsMember", "unit": "iso4217:EUR" } }, "f-212": { "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:CumulativeEffectAtDateOfInitialApplicationAxis": "ifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyRequiredByIFRSsMember", "unit": "iso4217:EUR" } }, "f-213": { "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:CumulativeEffectAtDateOfInitialApplicationAxis": "ifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyRequiredByIFRSsMember", "unit": "iso4217:EUR" } }, "f-214": { "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:CumulativeEffectAtDateOfInitialApplicationAxis": "ifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyRequiredByIFRSsMember", "unit": "iso4217:EUR" } }, "f-215": { "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:CumulativeEffectAtDateOfInitialApplicationAxis": "ifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyRequiredByIFRSsMember", "unit": "iso4217:EUR" } }, "f-216": { "value": "18000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2022-01-01T00:00:00", "ifrs-full:CumulativeEffectAtDateOfInitialApplicationAxis": "ifrs-full:IncreaseDecreaseDueToChangesInAccountingPolicyRequiredByIFRSsMember", "unit": "iso4217:EUR" } }, "f-217": { "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:CumulativeEffectAtDateOfInitialApplicationAxis": "ifrs-full:OpeningBalanceAfterAdjustmentCumulativeEffectAtDateOfInitialApplicationMember", "unit": "iso4217:EUR" } }, "f-218": { "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:CumulativeEffectAtDateOfInitialApplicationAxis": "ifrs-full:OpeningBalanceAfterAdjustmentCumulativeEffectAtDateOfInitialApplicationMember", "unit": "iso4217:EUR" } }, "f-219": { "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:CumulativeEffectAtDateOfInitialApplicationAxis": "ifrs-full:OpeningBalanceAfterAdjustmentCumulativeEffectAtDateOfInitialApplicationMember", "unit": "iso4217:EUR" } }, "f-220": { "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:CumulativeEffectAtDateOfInitialApplicationAxis": "ifrs-full:OpeningBalanceAfterAdjustmentCumulativeEffectAtDateOfInitialApplicationMember", "unit": "iso4217:EUR" } }, "f-221": { "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:CumulativeEffectAtDateOfInitialApplicationAxis": "ifrs-full:OpeningBalanceAfterAdjustmentCumulativeEffectAtDateOfInitialApplicationMember", "unit": "iso4217:EUR" } }, "f-222": { "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:CumulativeEffectAtDateOfInitialApplicationAxis": "ifrs-full:OpeningBalanceAfterAdjustmentCumulativeEffectAtDateOfInitialApplicationMember", "unit": "iso4217:EUR" } }, "f-223": { "value": "5654000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2022-01-01T00:00:00", "ifrs-full:CumulativeEffectAtDateOfInitialApplicationAxis": "ifrs-full:OpeningBalanceAfterAdjustmentCumulativeEffectAtDateOfInitialApplicationMember", "unit": "iso4217:EUR" } }, "f-224": { "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" } }, "f-225": { "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" } }, "f-226": { "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" } }, "f-227": { "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" } }, "f-228": { "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" } }, "f-229": { "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" } }, "f-230": { "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" } }, "f-231": { "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" } }, "f-232": { "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" } }, "f-233": { "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" } }, "f-234": { "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" } }, "f-235": { "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" } }, "f-236": { "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" } }, "f-237": { "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" } }, "f-238": { "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" } }, "f-239": { "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" } }, "f-240": { "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" } }, "f-241": { "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" } }, "f-242": { "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" } }, "f-243": { "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" } }, "f-244": { "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" } }, "f-245": { "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" } }, "f-246": { "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" } }, "f-247": { "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" } }, "f-248": { "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" } }, "f-249": { "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" } }, "f-250": { "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" } }, "f-251": { "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" } }, "f-252": { "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" } }, "f-253": { "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" } }, "f-254": { "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" } }, "f-255": { "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" } }, "f-256": { "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" } }, "f-257": { "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" } }, "f-258": { "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" } }, "f-259": { "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" } }, "f-260": { "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" } }, "f-261": { "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" } }, "f-262": { "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" } }, "f-263": { "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" } }, "f-264": { "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" } }, "f-265": { "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" } }, "f-266": { "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" } }, "f-267": { "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" } }, "f-268": { "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" } }, "f-269": { "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" } }, "f-270": { "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" } }, "f-271": { "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" } }, "f-272": { "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" } }, "f-273": { "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" } }, "f-274": { "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" } }, "f-275": { "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" } }, "f-276": { "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" } }, "f-277": { "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" } }, "f-278": { "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" } }, "f-279": { "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" } }, "f-280": { "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" } }, "f-281": { "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" } }, "f-282": { "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" } }, "f-283": { "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" } }, "f-284": { "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" } }, "f-285": { "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" } }, "f-286": { "value": "4548000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-287": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-288": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-289": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:EUR" } }, "f-290": { "value": "442000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-291": { "value": "442000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-292": { "value": "41000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-293": { "value": "483000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-294": { "value": "0", "decimals": -6, "dimensions": { "concept": "akzoy:ReclassificationAdjustmentsOnCashFlowHedgesForWhichHedgedFutureCashFlowsAreNoLongerExpectedToOccurAndExchangeDifferencesOnTransactionOfForeignOperations", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-295": { "value": "-46000000", "decimals": -6, "dimensions": { "concept": "akzoy:ReclassificationAdjustmentsOnCashFlowHedgesForWhichHedgedFutureCashFlowsAreNoLongerExpectedToOccurAndExchangeDifferencesOnTransactionOfForeignOperations", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-296": { "value": "4000000", "decimals": -6, "dimensions": { "concept": "akzoy:ReclassificationAdjustmentsOnCashFlowHedgesForWhichHedgedFutureCashFlowsAreNoLongerExpectedToOccurAndExchangeDifferencesOnTransactionOfForeignOperations", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:EUR" } }, "f-297": { "value": "0", "decimals": -6, "dimensions": { "concept": "akzoy:ReclassificationAdjustmentsOnCashFlowHedgesForWhichHedgedFutureCashFlowsAreNoLongerExpectedToOccurAndExchangeDifferencesOnTransactionOfForeignOperations", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-298": { "value": "-42000000", "decimals": -6, "dimensions": { "concept": "akzoy:ReclassificationAdjustmentsOnCashFlowHedgesForWhichHedgedFutureCashFlowsAreNoLongerExpectedToOccurAndExchangeDifferencesOnTransactionOfForeignOperations", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-299": { "value": "0", "decimals": -6, "dimensions": { "concept": "akzoy:ReclassificationAdjustmentsOnCashFlowHedgesForWhichHedgedFutureCashFlowsAreNoLongerExpectedToOccurAndExchangeDifferencesOnTransactionOfForeignOperations", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-300": { "value": "-42000000", "decimals": -6, "dimensions": { "concept": "akzoy:ReclassificationAdjustmentsOnCashFlowHedgesForWhichHedgedFutureCashFlowsAreNoLongerExpectedToOccurAndExchangeDifferencesOnTransactionOfForeignOperations", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-301": { "value": "0", "decimals": -6, "dimensions": { "concept": "akzoy:OtherComprehensiveIncomeExpense", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-302": { "value": "-12000000", "decimals": -6, "dimensions": { "concept": "akzoy:OtherComprehensiveIncomeExpense", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-303": { "value": "-50000000", "decimals": -6, "dimensions": { "concept": "akzoy:OtherComprehensiveIncomeExpense", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:EUR" } }, "f-304": { "value": "-149000000", "decimals": -6, "dimensions": { "concept": "akzoy:OtherComprehensiveIncomeExpense", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-305": { "value": "-211000000", "decimals": -6, "dimensions": { "concept": "akzoy:OtherComprehensiveIncomeExpense", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-306": { "value": "-7000000", "decimals": -6, "dimensions": { "concept": "akzoy:OtherComprehensiveIncomeExpense", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-307": { "value": "-218000000", "decimals": -6, "dimensions": { "concept": "akzoy:OtherComprehensiveIncomeExpense", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-308": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncome", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-309": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncome", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-310": { "value": "-1000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncome", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:EUR" } }, "f-311": { "value": "38000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncome", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-312": { "value": "37000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncome", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-313": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncome", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-314": { "value": "37000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncome", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-315": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-316": { "value": "34000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-317": { "value": "-55000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:EUR" } }, "f-318": { "value": "331000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-319": { "value": "310000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-320": { "value": "34000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-321": { "value": "344000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-322": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-323": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-324": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:EUR" } }, "f-325": { "value": "338000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-326": { "value": "338000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-327": { "value": "25000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-328": { "value": "363000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-329": { "value": "-2000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-330": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-331": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:EUR" } }, "f-332": { "value": "2000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-333": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-334": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-335": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-336": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-337": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-338": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:EUR" } }, "f-339": { "value": "17000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-340": { "value": "17000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-341": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-342": { "value": "17000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-343": { "value": "85000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-344": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-345": { "value": "-711000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:EUR" } }, "f-346": { "value": "4948000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-347": { "value": "4322000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-348": { "value": "224000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-349": { "value": "4546000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-350": { "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" } }, "f-351": { "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" } }, "f-352": { "value": "1000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DecreaseIncreaseThroughTaxOnSharebasedPaymentTransactions", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-353": { "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" } }, "f-355": { "value": "
Note 1: SUMMARY OF MATERIAL ACCOUNTING POLICIES
General information
Akzo Nobel N.V. is a public limited liability company headquartered in the Netherlands. The
address of our registered office is Christian Neefestraat 2, Amsterdam; the Chamber of
Commerce number is 09007809. We have attached a list of subsidiaries and associated
companies, drawn up in conformity with Articles 379 and 414 of Book 2 of the Dutch Civil
Code, as an appendix to our annual report. The principal activity of AkzoNobel is the
production and selling of paints and coatings.
We have prepared the Consolidated financial statements of Akzo Nobel N.V. in accordance
with International Financial Reporting Standards as adopted by the European Union (IFRS).
The Consolidated financial statements also comply with the financial reporting requirements
included in Title 9 of Book 2 of the Dutch Civil Code.
The management report within the meaning of Article 391 of Book 2 of the Dutch Civil
Code consists of the following parts of the annual report:
\u2022 2023 results at a glance
\u2022 CEO statement
\u2022 How we created value
\u2022 Strategy and operations
\u2022 Sustainability statements
\u2022 Leadership and governance: Our Board of Management and Executive Committee
\u2022 Leadership and governance: Statement of the Board of Management
\u2022 Leadership and governance: Corporate governance statement
\u2022 Leadership and governance: Risk management
\u2022 Leadership and governance: Integrity and compliance management
\u2022 Leadership and governance: Remuneration report
\u2022 Financial information: Note 5 Operating income
\u2022 Financial information: Note 26 Financial risk management
\u2022 Appendix: EU taxonomy
On February 26, 2024, the Board of Management authorized the financial statements for
issue. The financial statements as presented in this report are subject to adoption by the
Annual General Meeting of shareholders on April 25, 2024.
Going concern
The Consolidated financial statements have been prepared on a going concern basis,
resulting from management's assessment of the ability of AkzoNobel to continue its
operations for the foreseeable future.
Management has assessed the ability of AkzoNobel to continue as a going concern based
on an evaluation of, among others, the financial position, expected future cash flows and
market developments.
At December 31, 2023, cash and cash equivalents were \u20ac1.5 billion. We also assessed the
ability of the company to obtain financing, taking into account the company's external credit
rating, which we are committed to retain at strong investment grade.
Expected future cash flows are based on the latest forecasts. These forecasts take into
account internal and external developments relevant in the assessment of the ability of
AkzoNobel to continue as a going concern, including but not limited to market
developments, developments in the macro-economic environment (e.g. inflation, see
disclosure on inflation in this Note) and climate-related developments (see disclosure on
climate change in this Note).
Management's assessment did not lead to uncertainties in relation to AkzoNobel's ability to
continue as a going concern.
Impact of climate change
The potential effects on the financial statements of climate change have been assessed.
This assessment included the impact of\u00a0physical risks, such as those associated with water
scarcity, flooding and weather events, as well as transitional risks that may lead to changes
in technology, market dynamics and regulations. A desktop study was performed relating
to physical climate risks. We also considered AkzoNobel's commitments to reduce carbon
emissions as\u00a0approved by the\u00a0Science Based Targets initiative (SBTi), and related estimates
as to investments and the timing thereof. The\u00a0resulting impact on the financial statements,
including in the areas of fixed assets depreciation and recoverability assessments, was\u00a0not
deemed material to the company's financial position and results of operations as of, and for
the year ended, December 31, 2023.
Impact from the war in Ukraine and sanctions on Russia
Our business in Ukraine and Russia combined represented less than 2% of our 2023
revenue (2022: about 2%), of which the vast majority concerned Russia.
In 2022, following the EU sanctions, the majority of our Performance Coatings activities in
Russia were suspended. The residual Russian business since then has been locally
operated. AkzoNobel has assessed the potential accounting impact from the localization of
the Russian business. Taking into account the applicable IFRS standards, we have
concluded that our Russian business can still be included in our scope of consolidation.
No significant impairments of assets occurred in Russia in either 2023 or 2022; in Ukraine,
the value of the assets is immaterial.
Impact of inflation
The financial year 2023 saw continued inflation due to geo-political and macro-economic
developments. The impacts from rising inflation have been considered in the financial
statements where relevant. Reference is made to Note 5 Operating income on financial
developments during the year, Note 7 Financing income and expenses, Note 10 Intangible
assets on the annual impairment testing process, Note 15 Inventories on the impact of raw
material price increases, Note 18 Post-retirement benefit provisions on the impact of
inflation rates on the defined benefit obligations (DBO) and Note 26 Financial Risk
Management on sensitivities in relation to changes in interest rates.
Consolidation
The Consolidated financial statements include the accounts of Akzo Nobel N.V. and its
subsidiaries. Subsidiaries are companies over which Akzo Nobel N.V. has control, because
it is exposed, or has rights, to variable returns from its involvement with the subsidiary and it
has the ability to affect returns through its power over the subsidiary. Non-controlling
interests in equity and in results are presented separately.
Changes in accounting policies and first-time application
Accounting pronouncements with potential relevance for AkzoNobel, which became
effective for 2023, include IFRS 17 \u201cInsurance contracts\u201d and amendments to this
standard, amendments to IAS\u00a08 \u201cDefinition of accounting estimates\u201d, amendments to IAS 1
and IFRS Practice Statement 2 \u201cDisclosure of Accounting Policies\u201d, amendments to IAS 12
\u201cDeferred Tax related to Assets and Liabilities arising from a Single Transaction\u201d and
\u201cInternational Tax Reform - Pillar Two Model Rules\u201d. These changes in accounting policies
had no material impact on our Consolidated financial statements. With regards to the
exemption for recognizing and disclosing information about deferred tax assets and
liabilities related to Pillar Two income taxes, as per the amendments to IAS 12, reference is
made to Note 8 Income tax.
Discontinued operations/Held for sale
A discontinued operation is a component of our business that represents a separate major
line of business or geographical area of operations that has been disposed of, or is held for
sale, or is a subsidiary acquired exclusively with a view to resale. Assets and liabilities are
classified as held for sale if it is highly probable that the carrying value will be recovered
through a sale transaction within one year, rather than through continuing use. When
reclassifying assets and liabilities as held for sale, we recognize the assets and liabilities at
the lower of their carrying value or fair value less costs to sell. Assets held for sale are not
depreciated and amortized but tested for impairment. In case of discontinued operations,
the comparative figures in the Consolidated statement of income and Consolidated
statement of cash flows are re-presented. The Consolidated balance sheet comparative
figures are not re-presented.
Use of estimates
The preparation of the financial statements in compliance with IFRS requires management
to make judgments, estimates and assumptions that affect amounts reported in the
financial statements. The estimates and assumptions are based on experience and various
other factors that are believed to be reasonable under the circumstances and are used to
judge the carrying values of assets and liabilities that are not readily apparent from other
sources. The estimates and underlying assumptions are reviewed on an ongoing basis. The
most critical accounting policies involving a higher degree of judgment and complexity in
applying principles of valuation and for which changes in the assumptions and estimates
could result in significantly different results than those recorded in the financial statements
are the following:
\u2022 Scope of consolidation, including purchase price allocations for business combinations
(Note 2)
\u2022 Income tax and deferred tax assets, including uncertain tax positions (Note 8)
\u2022 Impairment of intangible assets, property, plant and equipment and right-of-use assets
(Note 10, 11, 12)
\u2022 Post-retirement benefit provisions (Note 18)
\u2022 Provisions and contingent liabilities (Note 19)
Business combinations (Note 2)
In business combinations, identifiable assets and liabilities, and contingent liabilities, are
recognized at their fair values at the acquisition date. Determining the fair value requires
significant judgments on future cash flows to be generated.
Goodwill in a business combination represents the excess of the consideration paid over
the net fair value of the acquired identifiable assets, liabilities and contingent liabilities. If the
cost of an acquisition is less than the fair value of the net assets of the subsidiary acquired,
the difference is recognized directly in the statement of income.
The fair value of brands, customer relationships and know-how acquired in a business
combination is estimated using generally accepted valuation methods. These include the
relief-from-royalty method, the incremental cash flow method and the multi-period excess
earnings method.
The fair value of property, plant and equipment acquired in a business combination is
based on estimated market values.
The fair value of inventories acquired in a business combination is determined based on
estimated selling prices in the ordinary course of business, less the estimated costs of
completion and sale and a reasonable profit margin, based on the effort required to
complete and sell the inventories.
Statement of cash flows
We have used the indirect method to prepare the statement of cash flows. Cash flows in
foreign currencies have been translated at transaction rates. Acquisitions or divestments of
subsidiaries are presented net of cash and cash equivalents acquired or disposed of,
respectively. Cash flows from derivatives are recognized in the statement of cash flows in
the same category as those of the hedged items.
Operating segments
We determine and present operating segments based on the information that is provided to
the Executive Committee, our chief operating decision-maker during 2023, to make
decisions about resources to be allocated to the segments and assess their performance.
Segment results reported to the Executive Committee include items directly attributable to
a segment, as well as those items that can be allocated on a reasonable basis.
Foreign currencies
Transactions in foreign currencies are translated into the functional currency using the
foreign exchange rate at transaction date. Monetary assets and liabilities denominated in
foreign currencies are translated into the functional currency using the exchange rates at
the balance sheet date. Resulting foreign currency differences are included in the statement
of income in financing income and expenses. Non-monetary assets and liabilities
denominated in foreign currencies are translated into the functional currency at the
exchange rate at acquisition date.
The assets and liabilities of entities with other functional currencies are translated into euros,
the functional currency of the parent entity, using the exchange rates at the balance sheet
date. The income and expenses of entities with other functional currencies are translated
into the functional currency, using the exchange rates at transaction date.
Foreign exchange rate differences resulting from translation into the functional currency of
investments in subsidiaries and of intercompany loans of a permanent nature with other
functional currencies are recorded as a separate component (cumulative translation
reserve) within other comprehensive income. These cumulative translation adjustments are
reclassified (either fully or partly) to the statement of income upon disposal (either fully or
partly) or liquidation of the foreign subsidiary to which the investment or the intercompany
loan with a permanent nature relates. Foreign currency differences arising on the translation
of a financial liability designated as an effective hedge of a net investment in a foreign
operation are recognized in the cumulative translation reserve (in Other comprehensive
income).
When a subsidiary is operating in a hyperinflationary country, the financial statements of this
entity are restated into the current purchasing power at the end of the reporting period. In
addition, exchange rates at this balance sheet date are used to translate both the balance
sheet and the statement of income into euros. Hyperinflation accounting is applied for
Argentina and T\u00fcrkiye based on the historical cost approach and using the Consumer Price
Index (CPI). CPI rate developments for Argentina and T\u00fcrkiye are included in the table CPI
rates at December 31. For reference, the balance sheet exchange rates for both countries
have also been included.
CPI rates at December 31
Country
2021
2022
2023
Argentina
582
1,135
3,533
T\u00fcrkiye
687
1,128
1,859
Balance sheet exchange rates1 at December 31
Currency
2021
2022
2023
Argentinian peso
116.16
188.62
849.91
Turkish lira
15.00
19.97
32.73
1Foreign currency equivalent of 1 euro
For a consolidated overview of financial impacts from hyperinflation accounting, refer to
Note 7 Financing income and expenses.
Exchange rates of key currencies
The principal exchange rates against the euro used in preparing the balance sheet and the
statement of income are (table shows foreign currency equivalents of 1 euro):
Currency
Balance sheet
Statement of income
2022
2023
%
2022
2023
%
US dollar
1.07
1.11
3.8
1.05
1.08
2.6
Pound sterling
0.88
0.87
(1.7)
0.85
0.87
2.0
Chinese yuan
7.43
7.86
5.9
7.09
7.67
8.3
Revenue recognition (Note 4)
Sale of goods
AkzoNobel's main business consists of straightforward selling of goods (paints and
coatings) to customers at contractually determined prices and conditions without any
additional services. Although the transfer of risks and rewards is not the only criterion to be
considered to determine whether control over the goods has transferred, it is in most
situations considered to be the main indicator of the customer's ability to direct the use of,
and obtain the benefits from the asset, and largely also coincides with the physical transfer
of the goods and the obligation of the customer to pay.
Variable considerations, including among others rebates, bonuses, discounts and
payments to customers, are accrued for as performance obligations are satisfied and
revenue is recognized. Variable considerations are only recognized when it is highly
probable that these are not subject to significant reversal. In case of expected returns,
revenue is not recognized for such products. Instead, we record a liability for the refund and
an asset for the products that will be returned. A provision for warranties is recognized
when the underlying products or services are sold, generally based on historical warranty
data. Revenue is recognized net of rebates, discounts and similar allowances, and net of
sales tax.
Equipment provided to customers
AkzoNobel regularly provides mixing machines, store interior and other assets to its
customers at the start of a paints or coatings delivery contract. The delivery of such assets
qualifies as a separate performance obligation. Revenue can only be recognized at the
moment of transfer of such assets, when there is an agreed sales price or when there is a
binding take-or-pay commitment for a minimum quantity of paints or coatings to be
acquired by the customer.
Services
AkzoNobel provides certain training, technical or support services to customers, as well as
shipping and handling activities for its customers. Service revenue is recognized over time
when the related services are being provided. When not separately invoiced, part of the
sales price of paints or coatings is allocated to such services.
Post-retirement benefits (Note 6, 18)
Contributions to defined contribution plans are recognized in the statement of income as
incurred.
Most of our defined benefit pension plans are funded with plan assets that have been
segregated in a trust or foundation. We also provide post-retirement benefits other than
pensions to certain employees, which are generally not funded. Valuations of both funded
and unfunded plans are carried out by independent actuaries, based on the projected unit
credit method. Post-retirement costs primarily represent the increase in the actuarial
present value of the obligation for projected benefits, based on employee service during the
year and interest on the net defined benefit liability/asset. When the calculation results in a
benefit to AkzoNobel, the recognized asset is limited to the present value of economic
benefits available in the form of any future refunds from the plan or reductions in future
contributions to the plan. An economic benefit is available if it is realizable during the life of
the plan, or on the settlement of the plan liabilities. The effect of these so-called asset
ceiling restrictions and any changes therein are recognized in Other comprehensive income.
Remeasurement gains and losses, which arise in calculating our obligations, are recognized
in Other comprehensive income. When the benefits of a plan improve, the portion of the
increased benefits related to past service by employees is recognized as an expense in the
statement of income immediately. We recognize gains and losses on the curtailment or
settlement of a defined benefit plan when the curtailment or settlement occurs.
Interest on the net defined benefit liability/asset is included in financing expenses related to
post-retirement benefits. Other charges and benefits recognized are reported in operating
income, unless recorded in other comprehensive income.
Other employee benefits (Note 6, 19)
Provisions for other long-term employee benefits are measured at present value, using
actuarial assumptions and methods. Any actuarial gains and losses are recognized in the
statement of income in the period in which they arise.
Share-based compensation (Note 6)
AkzoNobel has a performance-related and a restricted share plan, as well as a share-
matching plan, under which equity-settled shares are granted to certain employees. The fair
value is measured at grant date and amortized over the three-year period during which the
employees normally become unconditionally entitled to the shares with a corresponding
increase in shareholders' equity. Amortization is accelerated in the event of earlier vesting or
settlement.
Income tax (Note 8)
Income tax expense comprises both current and deferred tax, including effects of changes
in tax rates. In determining the amount of current and deferred tax, we also take into
account the impact of uncertain tax positions and whether additional taxes may be due.
Income tax is recognized in the statement of income, unless it relates to items recognized in
other comprehensive income or equity.
Current tax includes the expected tax payable and receivable on the taxable income for the
year, using tax rates enacted or substantively enacted at reporting date, as well as (any
adjustments to) tax payables and receivables with respect to previous years.
Deferred tax is recognized using the liability method on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the
Consolidated financial statements. We do not recognize deferred tax for the initial
recognition of goodwill, the initial recognition of assets or liabilities that affect neither
accounting nor taxable profit, and differences related to investments in subsidiaries to the
extent that they will probably not reverse in the foreseeable future and we can control the
timing of the reversal of the temporary difference. Deferred tax assets are recognized for
unused tax losses, tax credits and deductible temporary differences, to the extent that it is
probable that future taxable profits will be available against which they can be utilized.
AkzoNobel has applied the exemption for recognizing and disclosing information about
deferred tax assets and liabilities related to Pillar Two income taxes.
Measurement of deferred tax assets and liabilities is based upon the enacted or
substantively enacted tax rates expected to apply to taxable income in the years in which
temporary differences are expected to be reversed. Deferred tax positions are not
discounted.
Earnings per share (Note 9)
Basic earnings per share is calculated by dividing the profit for the period attributable to
shareholders of the company by the weighted average number of common shares
outstanding during the year, adjusted for any repurchased shares. Diluted earnings per
share is calculated by adjusting the weighted average number of common shares
outstanding during the year for the diluting effect of the shares of the performance-related
share plan, the restricted share plan and the share-matching plan.
Adjusted earnings per share represents the basic earnings per share from continuing
operations excluding identified items, after taxes.
Government grants
Government grants related to costs are deducted from the relevant costs to be
compensated in the same period. Government grants to compensate for the cost of an
asset are deducted from the cost of the related asset. Emission rights granted by the
government are recorded at cost. A\u00a0provision is recorded if the actual emission is higher
than the emission rights granted.
Intangible assets (Note 10)
Intangible assets are valued at cost less accumulated amortization and impairment
charges. Intangible assets with an indefinite useful life, such as goodwill and certain brands,
are not amortized, but tested for impairment annually using the value-in-use method.
Intangible assets with a finite useful life, such as licenses, know-how, certain brands,
customer relationships, intellectual property rights, emission rights, software expenditures
(in as far as AkzoNobel controls the software configured or customized) and capitalized
development costs, are capitalized at historical cost and amortized on a straight-line basis
over the estimated useful life of the assets, which generally ranges from 5 to 40 years for
brands with finite useful lives, 5 to 25 years for customer relationships, and 3 to 15 years for
other intangibles. Amortization methods, useful lives and residual values are reassessed
annually. Research expenditures are recognized as an expense as incurred.
Property, plant and equipment (Note 11)
Property, plant and equipment are valued at cost less accumulated depreciation and
impairment charges. Costs include expenditures that are directly attributable to the
acquisition of the asset, including borrowing cost of capital investment projects under
construction.
Depreciation is calculated using the straight-line method, based on the estimated useful life
of the asset components. The useful life of plant equipment and machinery generally ranges
from 10 to 25 years, and for buildings ranges from 20 to 50 years. Land is not depreciated.
Other equipment contains assets with a useful life ranging from 3 to 20 years. In the
majority of cases, residual value is assumed to be not significant. Depreciation methods,
useful lives and residual values are reassessed annually.
Costs of major maintenance activities are capitalized and depreciated over the estimated
useful life. Maintenance costs which cannot be separately defined as a component of
property, plant and equipment are expensed in the period in which they occur. We
recognize conditional asset retirement obligations in the periods in which sufficient
information becomes available to reasonably estimate the cash outflow.
Leases (Note 12, 20)
As a lessee, we assess whether a contract is, or contains, a lease at inception. A contract
is, or contains, a lease if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for a consideration.
At commencement, or on modification, of a contract that contains a lease component, we
allocate the consideration in the contract to each lease component on the basis of its
relative stand-alone price. However, for the leases of cars, we have elected not to separate
non-lease components and account for the lease and non-lease components as a single
lease component.
We recognize a right-of-use asset and a lease liability at the lease commencement date.
The right-of-use asset is initially measured at the present value of the lease liability. The
right-of-use asset value contains lease prepayments, lease incentives received, the initial
direct costs and an estimate of restoration, removal and dismantling costs.
The right-of-use assets are depreciated using the straight-line method from the
commencement date to the end of the lease term or shorter economic life. In addition, the
value of right-of-use assets is reduced by impairment losses, if any, and adjusted for certain
remeasurements of the lease liability.
The net present value of the lease liability is measured at the discounted value of the lease
payments. The liability includes payments to be made in optional periods if it is reasonably
certain that we will exercise an option to extend the lease, or that we will not exercise an
option to terminate the lease. The lease payments comprise the following:
\u2022 Fixed payments (including in substance fixed payments), less any lease incentives
\u2022 Variable lease payments that depend on an index or a rate
\u2022 The exercise price of a purchase option if it is reasonably certain that the option will be
exercised
\u2022 Payments of penalties for terminating the lease, if the lease term reflects the lessee
exercising an option to terminate the lease; and
\u2022 Amounts expected to be payable under residual value guarantees
These lease payments are discounted using the interest rate implicit in the lease contract, if
that rate can be readily determined. If that rate cannot be readily determined, the
incremental borrowing rate is used. We determine our incremental borrowing rates by
obtaining interest rates from various external financing sources and make certain
adjustments to reflect the term of the lease and type of the asset leased. At the lease
commencement dates, we assess whether it is reasonably certain that we will exercise the
extension options. We reassess whether it is reasonably certain that we will exercise the
options, if there is a significant event or significant change in circumstances within our
control.
At the commencement date, we assess whether it is reasonably certain that:
\u2022 An option to extend is exercised; or
\u2022 An option to purchase is exercised; or
\u2022 An option to terminate the lease is not exercised
In making these assessments, all relevant facts and circumstances that create an economic
incentive for us to exercise, or not to exercise, the option, including any expected changes
in facts and circumstances from the commencement date until the exercise date of the
option, are considered.
Short-term leases and leases of low-value assets
We do not record right-of-use assets and lease liabilities on the balance sheet for leases of
low-value assets and short-term leases. We recognize the lease payments associated with
these leases as an expense on a straight-line basis over the lease term.
Impairments (Note 10, 11, 12)
We assess the carrying value of intangible assets, property, plant and equipment and right-
of-use assets whenever events or changes in circumstances indicate that the carrying value
of an asset may not be recoverable as a result of e.g. changes in cash flow forecasts,
damages, market developments or environmental and climate change risks. In addition, for
goodwill and other intangible assets with an indefinite useful life, the carrying value is
reviewed at least annually or when circumstances indicate the carrying amount may be
impaired. If the carrying value of an asset or its cash-generating unit exceeds its estimated
recoverable amount, an impairment loss is recognized in the statement of income on the
functional level of the asset impaired. The assessment for impairment is performed at the
lowest level of assets generating largely independent cash inflows. For goodwill and other
intangible assets with an indefinite life, we have determined this to be at business unit level
(one level below operating segment).
Except for goodwill, we reverse impairment losses in the statement of income if and to the
extent we have identified a change in estimates used to determine the recoverable amount.
Associates (Note 13)
Associates are accounted for using the equity method and are initially recognized at cost.
The Consolidated financial statements include our share of the income and expenses of the
associates, whereby the result is determined using our accounting principles. When the
share of losses exceeds the interest in the investee, the carrying amount is reduced to nil
and recognition of further losses is discontinued, unless we have further legal or
constructive obligations.
Inventories (Note 15)
Inventories are measured at the lower of cost and net realizable value. Costs of inventories
comprise all costs of purchase, costs of conversion and other costs incurred in bringing the
inventories to the present location and condition. The costs of inventories are determined
using weighted average cost.
Provisions (Note 19)
We recognize provisions when a present legal or constructive obligation as a result of a
past event exists, it is probable that an outflow of economic benefits is required to settle the
obligation and the amount can be reliably estimated. Provisions are measured at net
present value. The increase of provisions as a result of the passage of time is recognized in
the statement of income under financing income and expenses.
Provisions for restructuring of activities are recognized when a detailed and formal
restructuring plan has been approved, and the restructuring has either commenced or has
been announced publicly. We do not provide for future operating costs.
Financial instruments
Classification
All assets are measured at amortized cost, fair value through profit or loss or fair value
through other comprehensive income. Financial assets are classified according to a model
based on:
\u2022 A contractual cash flow characteristics test
\u2022 A business model dictating how the reporting entity manages its financial assets in
order to generate cash flows as either:
1. Hold to collect contractual cash flows
2. Collect contractual cash flows and sell
3. Neither 1 or 2
\u2022 Election of the fair value option in some specific cases in order to eliminate an
accounting mismatch
The classification of a financial asset is determined at initial recognition, but if certain
conditions are met, an asset might be subject to reclassification.
Valuation and impairment
Financial assets are assessed for impairment either according to the general approach or a
simplified approach.
The calculation of impairment under the general approach uses the following stages:
\u2022 12-month expected credit losses, taking into account possible default events within
one year
\u2022 Lifetime expected credit losses in case of an increase in credit risk, through recognition
of expected credit losses over the remaining life of the exposure
\u2022 Lifetime expected credit losses, where interest is calculated on the net amount of the
receivables less impairment loss
In all above stages, the impairment calculation used is based on external credit ratings of
involved parties or default rates published by well-known credit risk agencies.
The financial assets included in the general impairment approach are long-term loans and
other long-term receivables.
The calculation of impairment under the simplified approach requires recognition of lifetime
expected credit loss (no tracking of changes in credit risk). The financial assets included in
the simplified impairment approach are trade receivables and the remaining financial assets.
Measurement
Regular purchases and sales of financial assets and liabilities are recognized on trade date.
The initial measurement of all financial instruments is at fair value. Except for derivatives and
cash and cash equivalents, the initial measurement of financial instruments is adjusted for
directly attributable transaction costs.
Derivative financial instruments (Note 26)
Derivative financial instruments are recognized at fair value on the balance sheet. Fair values
are derived from market prices and quotes from dealers and brokers or are estimated using
observable market inputs. When determining fair values, credit risk for our contract party,
as well as for AkzoNobel, is taken into account.
Changes in fair value are recognized in the statement of income, unless cash flow hedge
accounting or net investment hedge accounting is applied. In those cases, the effective part
of the fair value changes is deferred in other comprehensive income and released to the
related specific lines in the statement of income or balance sheet at the same time as the
hedged item.
Financial non-current assets (Note 14) and Trade and other
receivables (Note 16)
Loans and receivables are measured at amortized cost, using the effective interest method,
less any impairment losses. Positions are netted, if there is an intention to set off and when
legally enforceable.
Cash and cash equivalents and short-term investments
(Note\u00a020)
Cash and cash equivalents and short-term investments are measured at fair value. Cash
and cash equivalents include all cash balances and other investments that are directly
convertible into known amounts of cash. Changes in fair values are included in financing
income and expenses.
Long-term and Short-term borrowings (Note 20, 26) and
Trade\u00a0and other payables (Note 21)
Long-term and short-term borrowings, as well as trade and other payables, are measured
at amortized cost, using the effective interest rate method. The interest expense on
borrowings is included in financing income and expenses. The fair value of borrowings,
used for disclosure purposes, is determined based on listed market price, if available. If a
listed market price is not available, the fair value is calculated based on the present value of
principal and interest cash flows, discounted at the interest rate at the reporting date,
considering AkzoNobel\u2019s credit risk.\u00a0 Positions are netted, if there is an intention to set off
and when legally enforceable.
New IFRS accounting standards
IFRS standards and interpretations thereof not yet in force, which may apply to our
Consolidated financial statements for 2024 and beyond, have been assessed for their
potential impact.
These include, among others, amendments to IAS 1 \"Classification of Liabilities as Current
or Non-current\" and \"Non-current Liabilities with Covenants\", amendments to IFRS\u00a016
\"Lease Liability in Sale and Leaseback\", amendments to IAS 7 and IFRS 7 \"Supplier
Finance Arrangements\", amendments to IAS\u00a021 \"Lack of Exchangeability\" and
amendments to IFRS\u00a010 and IAS 28 \"Sale or Contribution of Assets between an Investor
and its Associate or Joint Venture\". These changes are not expected to have a material
effect on AkzoNobel\u2019s Consolidated financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMaterialAccountingPolicyInformationExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-354": { "value": "
Note 1: SUMMARY OF MATERIAL ACCOUNTING POLICIES
General information
Akzo Nobel N.V. is a public limited liability company headquartered in the Netherlands. The
address of our registered office is Christian Neefestraat 2, Amsterdam; the Chamber of
Commerce number is 09007809. We have attached a list of subsidiaries and associated
companies, drawn up in conformity with Articles 379 and 414 of Book 2 of the Dutch Civil
Code, as an appendix to our annual report. The principal activity of AkzoNobel is the
production and selling of paints and coatings.
We have prepared the Consolidated financial statements of Akzo Nobel N.V. in accordance
with International Financial Reporting Standards as adopted by the European Union (IFRS).
The Consolidated financial statements also comply with the financial reporting requirements
included in Title 9 of Book 2 of the Dutch Civil Code.
The management report within the meaning of Article 391 of Book 2 of the Dutch Civil
Code consists of the following parts of the annual report:
\u2022 2023 results at a glance
\u2022 CEO statement
\u2022 How we created value
\u2022 Strategy and operations
\u2022 Sustainability statements
\u2022 Leadership and governance: Our Board of Management and Executive Committee
\u2022 Leadership and governance: Statement of the Board of Management
\u2022 Leadership and governance: Corporate governance statement
\u2022 Leadership and governance: Risk management
\u2022 Leadership and governance: Integrity and compliance management
\u2022 Leadership and governance: Remuneration report
\u2022 Financial information: Note 5 Operating income
\u2022 Financial information: Note 26 Financial risk management
\u2022 Appendix: EU taxonomy
On February 26, 2024, the Board of Management authorized the financial statements for
issue. The financial statements as presented in this report are subject to adoption by the
Annual General Meeting of shareholders on April 25, 2024.
Going concern
The Consolidated financial statements have been prepared on a going concern basis,
resulting from management's assessment of the ability of AkzoNobel to continue its
operations for the foreseeable future.
Management has assessed the ability of AkzoNobel to continue as a going concern based
on an evaluation of, among others, the financial position, expected future cash flows and
market developments.
At December 31, 2023, cash and cash equivalents were \u20ac1.5 billion. We also assessed the
ability of the company to obtain financing, taking into account the company's external credit
rating, which we are committed to retain at strong investment grade.
Expected future cash flows are based on the latest forecasts. These forecasts take into
account internal and external developments relevant in the assessment of the ability of
AkzoNobel to continue as a going concern, including but not limited to market
developments, developments in the macro-economic environment (e.g. inflation, see
disclosure on inflation in this Note) and climate-related developments (see disclosure on
climate change in this Note).
Management's assessment did not lead to uncertainties in relation to AkzoNobel's ability to
continue as a going concern.
Impact of climate change
The potential effects on the financial statements of climate change have been assessed.
This assessment included the impact of\u00a0physical risks, such as those associated with water
scarcity, flooding and weather events, as well as transitional risks that may lead to changes
in technology, market dynamics and regulations. A desktop study was performed relating
to physical climate risks. We also considered AkzoNobel's commitments to reduce carbon
emissions as\u00a0approved by the\u00a0Science Based Targets initiative (SBTi), and related estimates
as to investments and the timing thereof. The\u00a0resulting impact on the financial statements,
including in the areas of fixed assets depreciation and recoverability assessments, was\u00a0not
deemed material to the company's financial position and results of operations as of, and for
the year ended, December 31, 2023.
Impact from the war in Ukraine and sanctions on Russia
Our business in Ukraine and Russia combined represented less than 2% of our 2023
revenue (2022: about 2%), of which the vast majority concerned Russia.
In 2022, following the EU sanctions, the majority of our Performance Coatings activities in
Russia were suspended. The residual Russian business since then has been locally
operated. AkzoNobel has assessed the potential accounting impact from the localization of
the Russian business. Taking into account the applicable IFRS standards, we have
concluded that our Russian business can still be included in our scope of consolidation.
No significant impairments of assets occurred in Russia in either 2023 or 2022; in Ukraine,
the value of the assets is immaterial.
Impact of inflation
The financial year 2023 saw continued inflation due to geo-political and macro-economic
developments. The impacts from rising inflation have been considered in the financial
statements where relevant. Reference is made to Note 5 Operating income on financial
developments during the year, Note 7 Financing income and expenses, Note 10 Intangible
assets on the annual impairment testing process, Note 15 Inventories on the impact of raw
material price increases, Note 18 Post-retirement benefit provisions on the impact of
inflation rates on the defined benefit obligations (DBO) and Note 26 Financial Risk
Management on sensitivities in relation to changes in interest rates.
Consolidation
The Consolidated financial statements include the accounts of Akzo Nobel N.V. and its
subsidiaries. Subsidiaries are companies over which Akzo Nobel N.V. has control, because
it is exposed, or has rights, to variable returns from its involvement with the subsidiary and it
has the ability to affect returns through its power over the subsidiary. Non-controlling
interests in equity and in results are presented separately.
Changes in accounting policies and first-time application
Accounting pronouncements with potential relevance for AkzoNobel, which became
effective for 2023, include IFRS 17 \u201cInsurance contracts\u201d and amendments to this
standard, amendments to IAS\u00a08 \u201cDefinition of accounting estimates\u201d, amendments to IAS 1
and IFRS Practice Statement 2 \u201cDisclosure of Accounting Policies\u201d, amendments to IAS 12
\u201cDeferred Tax related to Assets and Liabilities arising from a Single Transaction\u201d and
\u201cInternational Tax Reform - Pillar Two Model Rules\u201d. These changes in accounting policies
had no material impact on our Consolidated financial statements. With regards to the
exemption for recognizing and disclosing information about deferred tax assets and
liabilities related to Pillar Two income taxes, as per the amendments to IAS 12, reference is
made to Note 8 Income tax.
Discontinued operations/Held for sale
A discontinued operation is a component of our business that represents a separate major
line of business or geographical area of operations that has been disposed of, or is held for
sale, or is a subsidiary acquired exclusively with a view to resale. Assets and liabilities are
classified as held for sale if it is highly probable that the carrying value will be recovered
through a sale transaction within one year, rather than through continuing use. When
reclassifying assets and liabilities as held for sale, we recognize the assets and liabilities at
the lower of their carrying value or fair value less costs to sell. Assets held for sale are not
depreciated and amortized but tested for impairment. In case of discontinued operations,
the comparative figures in the Consolidated statement of income and Consolidated
statement of cash flows are re-presented. The Consolidated balance sheet comparative
figures are not re-presented.
Use of estimates
The preparation of the financial statements in compliance with IFRS requires management
to make judgments, estimates and assumptions that affect amounts reported in the
financial statements. The estimates and assumptions are based on experience and various
other factors that are believed to be reasonable under the circumstances and are used to
judge the carrying values of assets and liabilities that are not readily apparent from other
sources. The estimates and underlying assumptions are reviewed on an ongoing basis. The
most critical accounting policies involving a higher degree of judgment and complexity in
applying principles of valuation and for which changes in the assumptions and estimates
could result in significantly different results than those recorded in the financial statements
are the following:
\u2022 Scope of consolidation, including purchase price allocations for business combinations
(Note 2)
\u2022 Income tax and deferred tax assets, including uncertain tax positions (Note 8)
\u2022 Impairment of intangible assets, property, plant and equipment and right-of-use assets
(Note 10, 11, 12)
\u2022 Post-retirement benefit provisions (Note 18)
\u2022 Provisions and contingent liabilities (Note 19)
Business combinations (Note 2)
In business combinations, identifiable assets and liabilities, and contingent liabilities, are
recognized at their fair values at the acquisition date. Determining the fair value requires
significant judgments on future cash flows to be generated.
Goodwill in a business combination represents the excess of the consideration paid over
the net fair value of the acquired identifiable assets, liabilities and contingent liabilities. If the
cost of an acquisition is less than the fair value of the net assets of the subsidiary acquired,
the difference is recognized directly in the statement of income.
The fair value of brands, customer relationships and know-how acquired in a business
combination is estimated using generally accepted valuation methods. These include the
relief-from-royalty method, the incremental cash flow method and the multi-period excess
earnings method.
The fair value of property, plant and equipment acquired in a business combination is
based on estimated market values.
The fair value of inventories acquired in a business combination is determined based on
estimated selling prices in the ordinary course of business, less the estimated costs of
completion and sale and a reasonable profit margin, based on the effort required to
complete and sell the inventories.
Statement of cash flows
We have used the indirect method to prepare the statement of cash flows. Cash flows in
foreign currencies have been translated at transaction rates. Acquisitions or divestments of
subsidiaries are presented net of cash and cash equivalents acquired or disposed of,
respectively. Cash flows from derivatives are recognized in the statement of cash flows in
the same category as those of the hedged items.
Operating segments
We determine and present operating segments based on the information that is provided to
the Executive Committee, our chief operating decision-maker during 2023, to make
decisions about resources to be allocated to the segments and assess their performance.
Segment results reported to the Executive Committee include items directly attributable to
a segment, as well as those items that can be allocated on a reasonable basis.
Foreign currencies
Transactions in foreign currencies are translated into the functional currency using the
foreign exchange rate at transaction date. Monetary assets and liabilities denominated in
foreign currencies are translated into the functional currency using the exchange rates at
the balance sheet date. Resulting foreign currency differences are included in the statement
of income in financing income and expenses. Non-monetary assets and liabilities
denominated in foreign currencies are translated into the functional currency at the
exchange rate at acquisition date.
The assets and liabilities of entities with other functional currencies are translated into euros,
the functional currency of the parent entity, using the exchange rates at the balance sheet
date. The income and expenses of entities with other functional currencies are translated
into the functional currency, using the exchange rates at transaction date.
Foreign exchange rate differences resulting from translation into the functional currency of
investments in subsidiaries and of intercompany loans of a permanent nature with other
functional currencies are recorded as a separate component (cumulative translation
reserve) within other comprehensive income. These cumulative translation adjustments are
reclassified (either fully or partly) to the statement of income upon disposal (either fully or
partly) or liquidation of the foreign subsidiary to which the investment or the intercompany
loan with a permanent nature relates. Foreign currency differences arising on the translation
of a financial liability designated as an effective hedge of a net investment in a foreign
operation are recognized in the cumulative translation reserve (in Other comprehensive
income).
When a subsidiary is operating in a hyperinflationary country, the financial statements of this
entity are restated into the current purchasing power at the end of the reporting period. In
addition, exchange rates at this balance sheet date are used to translate both the balance
sheet and the statement of income into euros. Hyperinflation accounting is applied for
Argentina and T\u00fcrkiye based on the historical cost approach and using the Consumer Price
Index (CPI). CPI rate developments for Argentina and T\u00fcrkiye are included in the table CPI
rates at December 31. For reference, the balance sheet exchange rates for both countries
have also been included.
CPI rates at December 31
Country
2021
2022
2023
Argentina
582
1,135
3,533
T\u00fcrkiye
687
1,128
1,859
Balance sheet exchange rates1 at December 31
Currency
2021
2022
2023
Argentinian peso
116.16
188.62
849.91
Turkish lira
15.00
19.97
32.73
1Foreign currency equivalent of 1 euro
For a consolidated overview of financial impacts from hyperinflation accounting, refer to
Note 7 Financing income and expenses.
Exchange rates of key currencies
The principal exchange rates against the euro used in preparing the balance sheet and the
statement of income are (table shows foreign currency equivalents of 1 euro):
Currency
Balance sheet
Statement of income
2022
2023
%
2022
2023
%
US dollar
1.07
1.11
3.8
1.05
1.08
2.6
Pound sterling
0.88
0.87
(1.7)
0.85
0.87
2.0
Chinese yuan
7.43
7.86
5.9
7.09
7.67
8.3
Revenue recognition (Note 4)
Sale of goods
AkzoNobel's main business consists of straightforward selling of goods (paints and
coatings) to customers at contractually determined prices and conditions without any
additional services. Although the transfer of risks and rewards is not the only criterion to be
considered to determine whether control over the goods has transferred, it is in most
situations considered to be the main indicator of the customer's ability to direct the use of,
and obtain the benefits from the asset, and largely also coincides with the physical transfer
of the goods and the obligation of the customer to pay.
Variable considerations, including among others rebates, bonuses, discounts and
payments to customers, are accrued for as performance obligations are satisfied and
revenue is recognized. Variable considerations are only recognized when it is highly
probable that these are not subject to significant reversal. In case of expected returns,
revenue is not recognized for such products. Instead, we record a liability for the refund and
an asset for the products that will be returned. A provision for warranties is recognized
when the underlying products or services are sold, generally based on historical warranty
data. Revenue is recognized net of rebates, discounts and similar allowances, and net of
sales tax.
Equipment provided to customers
AkzoNobel regularly provides mixing machines, store interior and other assets to its
customers at the start of a paints or coatings delivery contract. The delivery of such assets
qualifies as a separate performance obligation. Revenue can only be recognized at the
moment of transfer of such assets, when there is an agreed sales price or when there is a
binding take-or-pay commitment for a minimum quantity of paints or coatings to be
acquired by the customer.
Services
AkzoNobel provides certain training, technical or support services to customers, as well as
shipping and handling activities for its customers. Service revenue is recognized over time
when the related services are being provided. When not separately invoiced, part of the
sales price of paints or coatings is allocated to such services.
Post-retirement benefits (Note 6, 18)
Contributions to defined contribution plans are recognized in the statement of income as
incurred.
Most of our defined benefit pension plans are funded with plan assets that have been
segregated in a trust or foundation. We also provide post-retirement benefits other than
pensions to certain employees, which are generally not funded. Valuations of both funded
and unfunded plans are carried out by independent actuaries, based on the projected unit
credit method. Post-retirement costs primarily represent the increase in the actuarial
present value of the obligation for projected benefits, based on employee service during the
year and interest on the net defined benefit liability/asset. When the calculation results in a
benefit to AkzoNobel, the recognized asset is limited to the present value of economic
benefits available in the form of any future refunds from the plan or reductions in future
contributions to the plan. An economic benefit is available if it is realizable during the life of
the plan, or on the settlement of the plan liabilities. The effect of these so-called asset
ceiling restrictions and any changes therein are recognized in Other comprehensive income.
Remeasurement gains and losses, which arise in calculating our obligations, are recognized
in Other comprehensive income. When the benefits of a plan improve, the portion of the
increased benefits related to past service by employees is recognized as an expense in the
statement of income immediately. We recognize gains and losses on the curtailment or
settlement of a defined benefit plan when the curtailment or settlement occurs.
Interest on the net defined benefit liability/asset is included in financing expenses related to
post-retirement benefits. Other charges and benefits recognized are reported in operating
income, unless recorded in other comprehensive income.
Other employee benefits (Note 6, 19)
Provisions for other long-term employee benefits are measured at present value, using
actuarial assumptions and methods. Any actuarial gains and losses are recognized in the
statement of income in the period in which they arise.
Share-based compensation (Note 6)
AkzoNobel has a performance-related and a restricted share plan, as well as a share-
matching plan, under which equity-settled shares are granted to certain employees. The fair
value is measured at grant date and amortized over the three-year period during which the
employees normally become unconditionally entitled to the shares with a corresponding
increase in shareholders' equity. Amortization is accelerated in the event of earlier vesting or
settlement.
Income tax (Note 8)
Income tax expense comprises both current and deferred tax, including effects of changes
in tax rates. In determining the amount of current and deferred tax, we also take into
account the impact of uncertain tax positions and whether additional taxes may be due.
Income tax is recognized in the statement of income, unless it relates to items recognized in
other comprehensive income or equity.
Current tax includes the expected tax payable and receivable on the taxable income for the
year, using tax rates enacted or substantively enacted at reporting date, as well as (any
adjustments to) tax payables and receivables with respect to previous years.
Deferred tax is recognized using the liability method on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the
Consolidated financial statements. We do not recognize deferred tax for the initial
recognition of goodwill, the initial recognition of assets or liabilities that affect neither
accounting nor taxable profit, and differences related to investments in subsidiaries to the
extent that they will probably not reverse in the foreseeable future and we can control the
timing of the reversal of the temporary difference. Deferred tax assets are recognized for
unused tax losses, tax credits and deductible temporary differences, to the extent that it is
probable that future taxable profits will be available against which they can be utilized.
AkzoNobel has applied the exemption for recognizing and disclosing information about
deferred tax assets and liabilities related to Pillar Two income taxes.
Measurement of deferred tax assets and liabilities is based upon the enacted or
substantively enacted tax rates expected to apply to taxable income in the years in which
temporary differences are expected to be reversed. Deferred tax positions are not
discounted.
Earnings per share (Note 9)
Basic earnings per share is calculated by dividing the profit for the period attributable to
shareholders of the company by the weighted average number of common shares
outstanding during the year, adjusted for any repurchased shares. Diluted earnings per
share is calculated by adjusting the weighted average number of common shares
outstanding during the year for the diluting effect of the shares of the performance-related
share plan, the restricted share plan and the share-matching plan.
Adjusted earnings per share represents the basic earnings per share from continuing
operations excluding identified items, after taxes.
Government grants
Government grants related to costs are deducted from the relevant costs to be
compensated in the same period. Government grants to compensate for the cost of an
asset are deducted from the cost of the related asset. Emission rights granted by the
government are recorded at cost. A\u00a0provision is recorded if the actual emission is higher
than the emission rights granted.
Intangible assets (Note 10)
Intangible assets are valued at cost less accumulated amortization and impairment
charges. Intangible assets with an indefinite useful life, such as goodwill and certain brands,
are not amortized, but tested for impairment annually using the value-in-use method.
Intangible assets with a finite useful life, such as licenses, know-how, certain brands,
customer relationships, intellectual property rights, emission rights, software expenditures
(in as far as AkzoNobel controls the software configured or customized) and capitalized
development costs, are capitalized at historical cost and amortized on a straight-line basis
over the estimated useful life of the assets, which generally ranges from 5 to 40 years for
brands with finite useful lives, 5 to 25 years for customer relationships, and 3 to 15 years for
other intangibles. Amortization methods, useful lives and residual values are reassessed
annually. Research expenditures are recognized as an expense as incurred.
Property, plant and equipment (Note 11)
Property, plant and equipment are valued at cost less accumulated depreciation and
impairment charges. Costs include expenditures that are directly attributable to the
acquisition of the asset, including borrowing cost of capital investment projects under
construction.
Depreciation is calculated using the straight-line method, based on the estimated useful life
of the asset components. The useful life of plant equipment and machinery generally ranges
from 10 to 25 years, and for buildings ranges from 20 to 50 years. Land is not depreciated.
Other equipment contains assets with a useful life ranging from 3 to 20 years. In the
majority of cases, residual value is assumed to be not significant. Depreciation methods,
useful lives and residual values are reassessed annually.
Costs of major maintenance activities are capitalized and depreciated over the estimated
useful life. Maintenance costs which cannot be separately defined as a component of
property, plant and equipment are expensed in the period in which they occur. We
recognize conditional asset retirement obligations in the periods in which sufficient
information becomes available to reasonably estimate the cash outflow.
Leases (Note 12, 20)
As a lessee, we assess whether a contract is, or contains, a lease at inception. A contract
is, or contains, a lease if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for a consideration.
At commencement, or on modification, of a contract that contains a lease component, we
allocate the consideration in the contract to each lease component on the basis of its
relative stand-alone price. However, for the leases of cars, we have elected not to separate
non-lease components and account for the lease and non-lease components as a single
lease component.
We recognize a right-of-use asset and a lease liability at the lease commencement date.
The right-of-use asset is initially measured at the present value of the lease liability. The
right-of-use asset value contains lease prepayments, lease incentives received, the initial
direct costs and an estimate of restoration, removal and dismantling costs.
The right-of-use assets are depreciated using the straight-line method from the
commencement date to the end of the lease term or shorter economic life. In addition, the
value of right-of-use assets is reduced by impairment losses, if any, and adjusted for certain
remeasurements of the lease liability.
The net present value of the lease liability is measured at the discounted value of the lease
payments. The liability includes payments to be made in optional periods if it is reasonably
certain that we will exercise an option to extend the lease, or that we will not exercise an
option to terminate the lease. The lease payments comprise the following:
\u2022 Fixed payments (including in substance fixed payments), less any lease incentives
\u2022 Variable lease payments that depend on an index or a rate
\u2022 The exercise price of a purchase option if it is reasonably certain that the option will be
exercised
\u2022 Payments of penalties for terminating the lease, if the lease term reflects the lessee
exercising an option to terminate the lease; and
\u2022 Amounts expected to be payable under residual value guarantees
These lease payments are discounted using the interest rate implicit in the lease contract, if
that rate can be readily determined. If that rate cannot be readily determined, the
incremental borrowing rate is used. We determine our incremental borrowing rates by
obtaining interest rates from various external financing sources and make certain
adjustments to reflect the term of the lease and type of the asset leased. At the lease
commencement dates, we assess whether it is reasonably certain that we will exercise the
extension options. We reassess whether it is reasonably certain that we will exercise the
options, if there is a significant event or significant change in circumstances within our
control.
At the commencement date, we assess whether it is reasonably certain that:
\u2022 An option to extend is exercised; or
\u2022 An option to purchase is exercised; or
\u2022 An option to terminate the lease is not exercised
In making these assessments, all relevant facts and circumstances that create an economic
incentive for us to exercise, or not to exercise, the option, including any expected changes
in facts and circumstances from the commencement date until the exercise date of the
option, are considered.
Short-term leases and leases of low-value assets
We do not record right-of-use assets and lease liabilities on the balance sheet for leases of
low-value assets and short-term leases. We recognize the lease payments associated with
these leases as an expense on a straight-line basis over the lease term.
Impairments (Note 10, 11, 12)
We assess the carrying value of intangible assets, property, plant and equipment and right-
of-use assets whenever events or changes in circumstances indicate that the carrying value
of an asset may not be recoverable as a result of e.g. changes in cash flow forecasts,
damages, market developments or environmental and climate change risks. In addition, for
goodwill and other intangible assets with an indefinite useful life, the carrying value is
reviewed at least annually or when circumstances indicate the carrying amount may be
impaired. If the carrying value of an asset or its cash-generating unit exceeds its estimated
recoverable amount, an impairment loss is recognized in the statement of income on the
functional level of the asset impaired. The assessment for impairment is performed at the
lowest level of assets generating largely independent cash inflows. For goodwill and other
intangible assets with an indefinite life, we have determined this to be at business unit level
(one level below operating segment).
Except for goodwill, we reverse impairment losses in the statement of income if and to the
extent we have identified a change in estimates used to determine the recoverable amount.
Associates (Note 13)
Associates are accounted for using the equity method and are initially recognized at cost.
The Consolidated financial statements include our share of the income and expenses of the
associates, whereby the result is determined using our accounting principles. When the
share of losses exceeds the interest in the investee, the carrying amount is reduced to nil
and recognition of further losses is discontinued, unless we have further legal or
constructive obligations.
Inventories (Note 15)
Inventories are measured at the lower of cost and net realizable value. Costs of inventories
comprise all costs of purchase, costs of conversion and other costs incurred in bringing the
inventories to the present location and condition. The costs of inventories are determined
using weighted average cost.
Provisions (Note 19)
We recognize provisions when a present legal or constructive obligation as a result of a
past event exists, it is probable that an outflow of economic benefits is required to settle the
obligation and the amount can be reliably estimated. Provisions are measured at net
present value. The increase of provisions as a result of the passage of time is recognized in
the statement of income under financing income and expenses.
Provisions for restructuring of activities are recognized when a detailed and formal
restructuring plan has been approved, and the restructuring has either commenced or has
been announced publicly. We do not provide for future operating costs.
Financial instruments
Classification
All assets are measured at amortized cost, fair value through profit or loss or fair value
through other comprehensive income. Financial assets are classified according to a model
based on:
\u2022 A contractual cash flow characteristics test
\u2022 A business model dictating how the reporting entity manages its financial assets in
order to generate cash flows as either:
1. Hold to collect contractual cash flows
2. Collect contractual cash flows and sell
3. Neither 1 or 2
\u2022 Election of the fair value option in some specific cases in order to eliminate an
accounting mismatch
The classification of a financial asset is determined at initial recognition, but if certain
conditions are met, an asset might be subject to reclassification.
Valuation and impairment
Financial assets are assessed for impairment either according to the general approach or a
simplified approach.
The calculation of impairment under the general approach uses the following stages:
\u2022 12-month expected credit losses, taking into account possible default events within
one year
\u2022 Lifetime expected credit losses in case of an increase in credit risk, through recognition
of expected credit losses over the remaining life of the exposure
\u2022 Lifetime expected credit losses, where interest is calculated on the net amount of the
receivables less impairment loss
In all above stages, the impairment calculation used is based on external credit ratings of
involved parties or default rates published by well-known credit risk agencies.
The financial assets included in the general impairment approach are long-term loans and
other long-term receivables.
The calculation of impairment under the simplified approach requires recognition of lifetime
expected credit loss (no tracking of changes in credit risk). The financial assets included in
the simplified impairment approach are trade receivables and the remaining financial assets.
Measurement
Regular purchases and sales of financial assets and liabilities are recognized on trade date.
The initial measurement of all financial instruments is at fair value. Except for derivatives and
cash and cash equivalents, the initial measurement of financial instruments is adjusted for
directly attributable transaction costs.
Derivative financial instruments (Note 26)
Derivative financial instruments are recognized at fair value on the balance sheet. Fair values
are derived from market prices and quotes from dealers and brokers or are estimated using
observable market inputs. When determining fair values, credit risk for our contract party,
as well as for AkzoNobel, is taken into account.
Changes in fair value are recognized in the statement of income, unless cash flow hedge
accounting or net investment hedge accounting is applied. In those cases, the effective part
of the fair value changes is deferred in other comprehensive income and released to the
related specific lines in the statement of income or balance sheet at the same time as the
hedged item.
Financial non-current assets (Note 14) and Trade and other
receivables (Note 16)
Loans and receivables are measured at amortized cost, using the effective interest method,
less any impairment losses. Positions are netted, if there is an intention to set off and when
legally enforceable.
Cash and cash equivalents and short-term investments
(Note\u00a020)
Cash and cash equivalents and short-term investments are measured at fair value. Cash
and cash equivalents include all cash balances and other investments that are directly
convertible into known amounts of cash. Changes in fair values are included in financing
income and expenses.
Long-term and Short-term borrowings (Note 20, 26) and
Trade\u00a0and other payables (Note 21)
Long-term and short-term borrowings, as well as trade and other payables, are measured
at amortized cost, using the effective interest rate method. The interest expense on
borrowings is included in financing income and expenses. The fair value of borrowings,
used for disclosure purposes, is determined based on listed market price, if available. If a
listed market price is not available, the fair value is calculated based on the present value of
principal and interest cash flows, discounted at the interest rate at the reporting date,
considering AkzoNobel\u2019s credit risk.\u00a0 Positions are netted, if there is an intention to set off
and when legally enforceable.
New IFRS accounting standards
IFRS standards and interpretations thereof not yet in force, which may apply to our
Consolidated financial statements for 2024 and beyond, have been assessed for their
potential impact.
These include, among others, amendments to IAS 1 \"Classification of Liabilities as Current
or Non-current\" and \"Non-current Liabilities with Covenants\", amendments to IFRS\u00a016
\"Lease Liability in Sale and Leaseback\", amendments to IAS 7 and IFRS 7 \"Supplier
Finance Arrangements\", amendments to IAS\u00a021 \"Lack of Exchangeability\" and
amendments to IFRS\u00a010 and IAS 28 \"Sale or Contribution of Assets between an Investor
and its Associate or Joint Venture\". These changes are not expected to have a material
effect on AkzoNobel\u2019s Consolidated financial statements.
Note 2: Scope of consolidation
Material subsidiaries
The Consolidated financial statements comprise the assets, liabilities, income and expenses
of 238 legal entities. We consider legal entities material when they represent, for at least
two subsequent years, more than 5% of either revenue or operating income. Material
subsidiaries included in the table below are fully owned at year-end 2023, except for Akzo
Nobel India Limited (74.76% owned by AkzoNobel). Refer to Note 17 Group equity for an
overview of non-controlling interests.
Material subsidiaries related to continuing operations
Legal entity
Principal place of business
Akzo Nobel Coatings Inc.
US
Akzo Nobel Paints (Shanghai) Co Ltd.
China
Akzo Nobel India Limited
India
Imperial Chemical Industries Limited
UK
Akzo Nobel Decorative Coatings B.V.
The Netherlands
Akzo Nobel Coatings SPA
Italy
Akzo Nobel Ltda
Brazil
Acquisitions
On August 1, 2023, AkzoNobel acquired 100% of the shares of Valspar Coatings Holding
Co. Ltd., Hong Kong (hereafter: \"the Huarun business\") for \u20ac72 million. The acquisition
strengthens our position in China. It will allow us further market segmentation and reinforce
our position outside of the premium segment.
The provisional purchase price allocation resulted in \u20ac32 million of goodwill (non-deductible
for tax purposes), \u20ac28 million of other intangible assets (of which \u20ac13 million relates to
brands which have finite useful lives) and \u20ac42 million other fixed and current assets,
excluding deferred taxes. Revenue of the Huarun business over 2023 amounted to \u20ac66
million. Since its acquisition, the Huarun business contributed \u20ac32 million to AkzoNobel's
consolidated revenues.
The goodwill is mainly attributable to synergies expected to be achieved from integrating
the acquired business into the group. The purchase price allocation is provisional due to the
limited time between the date of acquisition and the reporting date. The purchase price
allocation will be finalized before August 1, 2024. No material changes from the current
purchase price allocation are expected. The Huarun business has been integrated in
business unit Decorative Paints China and North Asia.
On April 22, 2022, AkzoNobel acquired 100% of the shares of Colombia-based paints and
coatings company Grupo Orbis S.A. (Grupo Orbis) for \u20ac566 million. The acquisition
strengthens our position in Latin America.
Based on the final purchase price allocation, the transaction resulted in \u20ac267 million of
goodwill, non-deductible for tax purposes (2022: \u20ac262 million), \u20ac257 million of other
intangible assets (2022: \u20ac259 million), \u20ac120 million of property, plant and equipment (2022:
\u20ac121 million) and \u20ac199 million other fixed and current assets\u00a0 (2022: \u20ac202 million).
The goodwill is mainly attributable to synergies expected to be achieved from integrating
the company into the group. The paints business of Grupo Orbis has been integrated in
business unit Decorative Paints Latin America. The coatings businesses have been
integrated in the respective Performance Coatings business units in 2023. In 2022, these
businesses were temporarily reported in business unit Performance Coatings Other.
On December 1, 2022, we acquired the wheel liquid coatings business of Lankwitzer
Lackfabrik GmbH for \u20ac36 million in an asset deal. The final purchase price allocation
resulted in \u20ac5 million of goodwill, deductible for tax purposes (2022: \u20ac7 million), \u20ac20 million
of other intangible assets (2022: \u20ac17 million) and \u20ac13 million other fixed and current assets
(2022: \u20ac14 million). The goodwill is mainly attributable to synergies expected to be achieved
from integrating the acquired business into the group. This business has been integrated in
business unit Powder Coatings.
Recognized fair values at acquisition
in \u20ac millions
Huarun
business
Other1
Total 2023
Other intangibles
28
10
38
Property, plant and equipment
7
(1)
6
Right of use assets
15
\u2014
15
Inventories
2
(1)
1
Trade and other receivables
12
(1)
11
Cash and cash equivalents
6
\u2014
6
Provisions
(1)
(1)
(2)
Deferred tax assets/(liabilities)
(10)
1
(9)
Trade and other payables
(19)
\u2014
(19)
Net identifiable assets and liabilities
40
7
47
Goodwill
32
2
34
Purchase consideration
72
9
81
Cash and cash equivalents acquired
(6)
\u2014
(6)
To be received in 2024 and later years
\u2014
(1)
(1)
Net cash outflow2
66
8
74
1 Contains the final adjustments to the Grupo Orbis and Lankwitzer purchase price allocation.
2 Note that 'Acquisition of consolidated companies, net of cash acquired' in the Consolidated statement of cash flows further
contains \u20ac40 million related to the previously anticipated acquisition of Kansai Paints Africa.
Divestments
In 2023 and 2022, no divestments occurred, other than property divestments.
Note 3: Segment information
In presenting and discussing segmental operating results AkzoNobel uses two operational
segments, Decorative Paints and Performance Coatings. Items which are not allocated to
either one of these segments, mainly comprise of corporate assets and corporate costs
and are reported in \u201cCorporate and other\u201d.
Decorative Paints
We provide decorative paints to both the professional and the do-it-yourself markets. We
supply a variety of quality products for every situation and surface, including paints,\u00a0
lacquers and varnishes. We also offer a range of mixing machines and color concepts for
the building and renovation industry.
The business units in the operating segment Decorative Paints are set up regionally, as the
paints business is managed per region. Refer to Note 4 Revenue for a disaggregation of
revenues per region.
Performance Coatings
We are a supplier of performance coatings that protect and enhance ships, cars, aircraft,
yachts and architectural components (structural steel, building products, flooring),
consumer goods (mobile devices, appliances, beverage cans, furniture) and oil and gas
facilities. The business units in the operating segment Performance Coatings are set up per
product/end market as the segment is managed based on product/end market
combinations. Refer to Note 4 Revenue for a disaggregation of revenues per product/end
market.
Due to the integration of all resins activities in Latin America into the Industrial Coatings
business unit, these activities have been reallocated from Decorative Paints to Performance
Coatings. The 2022 comparative figures have been updated to allow proper comparison.\u00a0
The tables in this Note include Alternative Performance Measures (APMs). For further
information, refer to the section Alternative Performance Measures in this Note.
Information per reportable segment
Revenue (third
parties)3
Amortization
and
depreciation3
Operating
income3
Identified
items1,3
Adjusted
operating
income1,3
EBITDA1,3
Adjusted
EBITDA1,3
ROS%1,2,3
OPI margin
%1,2,3
in \u20ac millions
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
Decorative Paints
4,344
4,300
(154)
(145)
388
500
(5)
\u2014
393
500
542
645
548
645
9.0
11.6
8.9
11.6
Performance Coatings
6,499
6,368
(171)
(170)
448
698
(49)
13
497
685
619
868
668
854
7.6
10.8
6.9
11.0
Corporate and other
3
\u2014
(43)
(42)
(128)
(169)
(27)
(58)
(101)
(111)
(85)
(127)
(59)
(70)
Total
10,846
10,668
(368)
(357)
708
1,029
(81)
(45)
789
1,074
1,076
1,386
1,157
1,429
7.3
10.1
6.5
9.6
1 Refer to the glossary for definitions of the APMs.
2 ROS% and OPI margin for Corporate and other is not shown, as this is not meaningful.
3 Revenue, operating income and adjusted operating income (and related measures) of the segments for 2022 have been updated to reflect changes in the financial reporting structure.
Information per reportable segment
Invested capital
Total assets
Total liabilities
Capital
expenditures1
ROI%1,2,3
in \u20ac millions
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
Decorative Paints
3,604
3,650
5,890
5,835
1,581
1,604
91
99
10.7
13.3
Performance Coatings
3,950
3,641
6,270
6,294
2,083
2,213
167
165
12.8
18.4
Corporate and other
581
555
2,581
2,429
6,529
6,195
34
22
Total
8,135
7,846
14,741
14,558
10,193
10,012
292
286
9.8
13.0
1 Refer to the glossary for the definition of capital expenditures and ROI%.
2 ROI% for Corporate and other is not shown, as this is not meaningful.
3 ROI% for 2022 for the segments has been updated to reflect changes in the financial reporting structure.
Regional information
Revenue by region
of destination
Intangible assets
and property, plant
and equipment
Invested capital
Capital
expenditures
in \u20ac millions
2022
2023
2022
2023
2022
2023
2022
2023
The Netherlands
319
315
1,223
1,210
1,900
1,984
45
34
Other EMEA countries
4,714
4,672
1,753
1,730
2,679
2,474
95
102
North Asia
1,728
1,719
1,162
1,165
965
993
40
36
South Asia Pacific
1,371
1,304
526
523
677
597
54
63
North America
1,416
1,377
648
631
890
775
42
29
Latin America
1,298
1,281
728
816
1,024
1,023
16
22
Total
10,846
10,668
6,040
6,075
8,135
7,846
292
286
Alternative Performance Measures
In presenting and discussing AkzoNobel\u2019s (segmental) operating results, management uses
certain Alternative Performance Measures not defined by IFRS, which exclude the so-called
identified items. ldentified items are special charges and benefits, results on acquisitions
and divestments, major restructuring and impairment charges, and charges and benefits
related to major legal, environmental and tax cases. These Alternative Performance
Measures should not be viewed in isolation as alternatives to the equivalent IFRS measures
and should be used as supplementary information in conjunction with the most directly
comparable IFRS measures. Alternative Performance Measures do not have a standardized
meaning under IFRS and therefore may not be comparable to similar measures presented
by other companies. Where a non-financial measure is used to calculate an operational or
statistical ratio, this is also considered an alternative performance measure.
A reconciliation of the Alternative Performance Measures to the most directly comparable
IFRS measures can be found in the tables on this page and the next pages.
Identified items
Restructuring related costs
Restructuring related costs primarily relate to costs for accruals for certain employee
benefits and for other costs which are directly associated with plans to exit or cease
specific activities and closing down of facilities.
Property divestments
Property divestments in 2023 primarily relate to the gains on the divestment of the
Offenbach site in Germany and the Bangkok site in Thailand.
Adjustments to interest
Adjustments to interest in 2023 mainly related to the wind down of the cash flow hedges
related to the previously anticipated acquisition of Kansai Paints Africa. Refer to Note 26
Financial risk management for more details.
In 2022, interest income of \u20ac10 million was recognized related to the UK ACT case. The UK
ACT case is a group litigation case the company participates in (\u201cFranked Investment
Income litigation/case\u201d; filed in 2003) in order to seek recovery of Advance Corporation Tax.
Adjustments to income tax
In 2023, adjustments to income tax amounted to a net tax charge of \u20ac13 million, which
mainly related to the tax impact on the identified items in interest and operating income. In
2022 this tax impact on identified items in interest and operating income of \u20ac18 million was
partly offset by a \u20ac13 million tax charge related to the UK ACT case.
Reconciliations of APMs to the nearest IFRS measures
Alternative Performance Measures
2022
2023
in \u20ac millions
Continu-
ing
operations
Discon-
tinued
operations
Total
Continu-
ing
operations
Discon-
tinued
operations
Total
Operating income
708
\u2014
708
1,029
\u2014
1,029
APM adjustments to
operating income
Restructuring related costs
80
\u2014
80
89
\u2014
89
Property divestments
\u2014
\u2014
\u2014
(63)
\u2014
(63)
Acquisition related costs
9
\u2014
9
15
\u2014
15
Other
(8)
\u2014
(8)
4
\u2014
4
Total APM adjustments
(Identified items) to
operating income
81
\u2014
81
45
\u2014
45
Adjusted operating income
789
\u2014
789
1,074
\u2014
1,074
Profit for the period
attributable to shareholders
of the company
362
(10)
352
447
(5)
442
Adjustments to operating
income
81
\u2014
81
45
\u2014
45
Adjustments to interest
(10)
\u2014
(10)
44
\u2014
44
Adjustments to income tax
(5)
\u2014
(5)
(13)
\u2014
(13)
Total APM adjustments
66
\u2014
66
76
\u2014
76
Adjusted profit for the
period attributable to
shareholders of the
company
428
(10)
418
523
(5)
518
Adjusted operating income, OPI margin and ROS%
in \u20ac millions
2022
2023
Revenue from third parties1
Decorative Paints
4,344
4,300
Performance Coatings
6,499
6,368
Corporate and other
3
\u2014
Total
10,846
10,668
Operating income1
Decorative Paints
388
500
Performance Coatings
448
698
Corporate and other
(128)
(169)
Total
708
1,029
Total APM adjustments (Identified items) in Operating income1,2
Decorative Paints
(5)
\u2014
Performance Coatings
(49)
13
Corporate and other
(27)
(58)
Total
(81)
(45)
Adjusted operating income1,2
Decorative Paints
393
500
Performance Coatings
497
685
Corporate and other
(101)
(111)
Total
789
1,074
OPI margin%1.2,3
Decorative Paints
8.9
11.6
Performance Coatings
6.9
11.0
Corporate and other
Total
6.5
9.6
ROS%1,2,3
Decorative Paints
9.0
11.6
Performance Coatings
7.6
10.8
Corporate and other
Total
7.3
10.1
1 Revenue, operating income and adjusted operating income (and related measures) for 2022 of the segments have been updated to
reflect changes in the financial reporting structure.
2 Refer to the glossary for definitions of the APMs.
3 OPI margin and ROS% for Corporate and other is not shown, as this is not meaningful.
EBITDA*
2022
2023
in \u20ac millions
Operating
income
Depreciation
and
amortization
EBITDA
Operating
income
Depreciation
and
amortization
EBITDA
Decorative Paints
388
(154)
542
500
(145)
645
Performance Coatings
448
(171)
619
698
(170)
868
Corporate and other
(128)
(43)
(85)
(169)
(42)
(127)
Total
708
(368)
1,076
1,029
(357)
1,386
* Refer to the glossary for definitions of the APMs.
Adjusted EBITDA*
2022
2023
in \u20ac millions
Adjusted
operating
income
Depreciation
and
amortization
excluding
Identified
items
Adjusted
EBITDA
Adjusted
operating
income
Depreciation
and
amortization
excluding
Identified
items
Adjusted
EBITDA
Decorative Paints
393
(155)
548
500
(145)
645
Performance Coatings
497
(171)
668
685
(169)
854
Corporate and other
(101)
(42)
(59)
(111)
(41)
(70)
Total
789
(368)
1,157
1,074
(355)
1,429
* Refer to the glossary for definitions of the APMs.
Leverage ratio is calculated as net debt/EBITDA. For the calculation of net debt, refer to
Note 20 Net debt. Further information on the leverage ratio is included in Note 26 Financial
risk management, in the paragraph on capital risk management.
ROI%1
in \u20ac millions
2022
2023
Average invested capital1
Decorative Paints
3,677
3,755
Performance Coatings
3,895
3,725
Corporate and other
490
753
Total
8,062
8,233
Adjusted operating income1, 2
Decorative Paints
393
500
Performance Coatings
497
685
Corporate and other
(101)
(111)
Total
789
1,074
ROI%3
Decorative Paints
10.7
13.3
Performance Coatings
12.8
18.4
Corporate and other3
Total
9.8
13.0
1 Refer to the glossary for definitions of the APMs.
2 Operating income and adjusted operating income (and related measures) for 2022 for the segments have been updated to reflect
changes in the financial reporting structure.
3 ROI% for Corporate and other is not shown, as this is not meaningful.
Adjusted earnings per share*
in \u20ac millions
2022
2023
Profit for the period attributable to shareholders of the
company from continuing operations
388
488
APM adjustments to operating income
81
45
APM adjustment to interest
(10)
44
APM adjustment to income tax
(5)
(13)
Non-controlling interests
(26)
(41)
Adjusted profit from continuing operations attributable
to shareholders of the company*
428
523
Weighted average number of shares (in millions)
174.7
170.6
Adjusted earnings per share from continuing operations (in \u20ac)
2.45
3.07
* Refer to the glossary for definitions of the APMs.
Free cash flow
in \u20ac millions
2022
2023
Net cash generated from/(used for) operating activities
263
1,126
Capital expenditures
(292)
(286)
Free cash flow
(29)
840
Note 4: Revenue
AkzoNobel derives revenue from the transfer of goods and services at a point in time and
over time, in the major product lines and geographical regions as disclosed in the table in
this Note.
For the receivables, which are included in Trade and other receivables, reference is made to
Note 16 Trade and other receivables.
As at December 31, 2023, and at December 31, 2022, no significant contract assets were
recognized.
As at December 31, 2023, the amount of contract liabilities deferred to be recognized over
time in 2024 was \u20ac4 million. These contract liabilities primarily relate to shipping, training
and certain technical services, for which revenue is recognized over time. The amount of \u20ac4
million included in contract liabilities at the beginning of the period has been recognized as
revenue during the year 2023 (2022: \u20ac3 million).
Financial integration Grupo Orbis
In 2022, as from the moment of acquisition (April 2022), the Grupo Orbis results related to
Performance Coatings were included in business unit Performance Coatings Other. In
2023, the Grupo Orbis Performance Coatings results have been included in the respective
business units in the Performance Coatings segment. The 2022 comparative figures have
been updated to allow for proper comparison.
Revenue disaggregation
Decorative Paints
Performance Coatings
Other
Total
in \u20ac millions
2022
2023
2022
2023
2022
2023
2022
2023
Primary geographical markets - revenue from third parties
The Netherlands
206
214
110
101
3
\u2014
319
315
Other EMEA countries
2,199
2,199
2,515
2,473
\u2014
\u2014
4,714
4,672
North Asia
564
543
1,164
1,177
\u2014
\u2014
1,728
1,720
South Asia Pacific
608
564
763
740
\u2014
\u2014
1,371
1,304
North America
\u2014
\u2014
1,416
1,379
\u2014
\u2014
1,416
1,379
Latin America*
767
780
531
498
\u2014
\u2014
1,298
1,278
Total
4,344
4,300
6,499
6,368
3
\u2014
10,846
10,668
Major goods/service lines - revenue from third parties
Decorative Paints Europe, Middle East and Africa
2,405
2,413
\u2014
\u2014
\u2014
\u2014
2,405
2,413
Decorative Paints Latin America*
767
780
\u2014
\u2014
\u2014
\u2014
767
780
Decorative Paints China and North Asia
564
543
\u2014
\u2014
\u2014
\u2014
564
543
Decorative Paints South East and South Asia
608
564
\u2014
\u2014
\u2014
\u2014
608
564
Powder Coatings*
\u2014
\u2014
1,385
1,377
\u2014
\u2014
1,385
1,377
Marine and Protective Coatings*
\u2014
\u2014
1,389
1,482
\u2014
\u2014
1,389
1,482
Automotive and Specialty Coatings*
\u2014
\u2014
1,407
1,422
\u2014
\u2014
1,407
1,422
Industrial Coatings*
\u2014
\u2014
2,318
2,087
\u2014
\u2014
2,318
2,087
Corporate and other
\u2014
\u2014
\u2014
\u2014
3
\u2014
3
\u2014
Total
4,344
4,300
6,499
6,368
3
\u2014
10,846
10,668
Timing of revenue recognition
Goods transferred at a point in time
4,257
4,101
6,285
6,288
\u2014
\u2014
10,542
10,389
Services transferred over time
87
199
214
80
3
\u2014
304
279
Total
4,344
4,300
6,499
6,368
3
\u2014
10,846
10,668
* Revenues for 2022 of the business units and the segments have been updated to reflect changes in the financial reporting structure; updates reflect the financial integration of Grupo Orbis into the respective business units in Performance Coatings, and the integration of all
Resins activities in Latin America into Industrial Coatings (refer to Note 3 Segment information).
Note 5: Operating income
Operating income
Operating income increased 45% to \u20ac1,029 million (2022:
\u20ac708 million), with a rebound in gross margins more than
offsetting operating cost inflation. OPI margin improved to
9.6% (2022: 6.5%).
Costs by nature 2023
in \u20ac millions
Employee
benefits
Amortization
Depreciation
Purchases and
other costs
Total
Cost of sales
(550)
(1)
(150)
(5,733)
(6,434)
Selling and distribution expenses
(991)
(52)
(94)
(1,210)
(2,347)
General and administrative expenses
(279)
(22)
(19)
(328)
(648)
Research and development expenses
(186)
(5)
(14)
(65)
(270)
Other results
(2)
\u2014
\u2014
62
60
Total
(2,008)
(80)
(277)
(7,274)
(9,639)
Costs by nature 2022
in \u20ac millions
Employee
benefits
Amortization
Depreciation
Purchases and
other costs
Total
Cost of sales
(550)
(1)
(152)
(6,220)
(6,923)
Selling and distribution expenses
(965)
(57)
(93)
(1,193)
(2,308)
General and administrative expenses
(263)
(24)
(24)
(338)
(649)
Research and development expenses
(182)
(5)
(12)
(59)
(258)
Other results
\u2014
\u2014
\u2014
\u2014
\u2014
Total
(1,960)
(87)
(281)
(7,810)
(10,138)
Note 6: Employee benefits
Salaries, wages and other employee benefits in operating income
in \u20ac millions
2022
2023
Salaries and wages
(1,517)
(1,573)
Post-retirement cost
(146)
(138)
Other social charges
(297)
(297)
Total
(1,960)
(2,008)
Average number of employees total AkzoNobel
Average number during the year
2022
2023
Decorative Paints
13,800
14,200
Performance Coatings
18,000
17,400
Corporate and other
3,300
3,300
Total
35,100
34,900
Average number of employees in the Netherlands
Average number during the year
2022
2023
Decorative Paints
600
600
Performance Coatings
1,100
1,100
Corporate and other
700
700
Total
2,400
2,400
Number of employees
At year-end
2022
2023
Decorative Paints
14,000
14,300
Performance Coatings
17,900
17,500
Corporate and other
3,300
3,400
Total
35,200
35,200
The average number of employees working outside the Netherlands was 32,500 (2022:
32,700). In 2023, the number of employees remained stable at 35,200 people (year-end
2022: 35,200 people). Acquisitions in 2023 added around 200 people.
Share-based compensation
Share-based compensation relates to the equity-settled performance-related share plan
and the restricted share plans, as well as the share-matching plan. Charges recognized in
the 2023 statement of income for share-based compensation amounted to \u20ac18 million and
are included in salaries and wages (2022: \u20ac16 million).
Performance-related and restricted share plans
Under the performance-related share plan and the restricted share plans, a number of
conditional shares are granted to the members of the Board of Management, members of
the Executive Committee, executives and certain other employee categories each year. The
number of participants of the performance-related share plan and the restricted share plans
at year-end 2023 was 666 (2022: 616). The shares of the performance-related and
restricted share plan series 2020-2022 have vested and were delivered to the participants
in 2023.
The performance targets for the conditional grant of performance-related shares of the
current plans for the Board of Management and the Executive Committee (series
2021-2023, 2022-2024 and 2023-2025) are linked to revenue growth (20%), adjusted
EBITDA (40%), ROI ( 20%), and Environmental, Social and Governance (ESG) KPIs (20%).
A\u00a0two-year holding restriction after vesting applies.
The plans for the executives and certain non-executive employee categories are restricted
share plans without any performance conditions, whereby the conditional grant of shares
will vest upon the condition that they remain in service with the company during the three-
year vesting period. A one-year holding restriction after vesting applies for the executives.
The conditional shares of the 2021-2023 performance share plan for the AkzoNobel
participants vested for 12.30% (series 2020-2022: 0%), including dividend shares of 7.42%
(series 2020-2022: 7.33%), the final vesting percentage amounted to 13.21% (series
2020-2022: 0%).
The share price of a common AkzoNobel share at year end 2023 amounted to \u20ac74.82
(2022: \u20ac62.56).
Fair value of restricted and performance-related shares
The fair value of the restricted shares of the 2023-2025 grant to executives, amounting to
\u20ac68.78, is based on the opening share price on April 26, 2023, of \u20ac74.56 and the expected
dividend yield of 2.66%.
The fair value of the restricted shares of the 2023-2025 grant to non-executives, amounting
to \u20ac69.00, is based on the opening share price on July 3, 2023 of \u20ac 74.78 and the
expected dividend yield of 2.65%.
The fair value of the performance-related 2023-2025 grant, based on the opening share
price on February 23, 2023, amounts to \u20ac69.26. For a later grant under this program, this
was based on the opening share price on July\u00a03, 2023, of \u20ac74.78.
Fair value performance-related shares in \u20ac
Series
Opening share
price per:
Fair
Value
Market
condition
(TSR)5
Non-market
based
performance
conditions6
Share
price
Expected
volatility
Risk free
interest
rate
2020 - 2022
April 21, 20201
53.42
42.95
63.88
63.88
21.42%
(0.33)%
2021 - 2023
April 22, 20212
103.20
NA
103.20
103.20
NA
NA
2022 - 2024
February 23, 2022
88.28
NA
88.28
88.28
NA
NA
2022 - 2024
October 3, 20223
57.70
NA
57.70
57.70
NA
NA
2023 - 2025
February 23, 2023
69.26
NA
69.26
69.26
NA
NA
2023 - 2025
July 3, 20234
74.78
NA
74.78
74.78
NA
NA
1 Date on which the Supervisory Board approved the use of the average share price calculation method to determine the number of
shares granted.
2\u00a0 Date of the AGM at which the new LTI performance criteria for the Board of Management were approved.
3\u00a0 Date on which Mr. Poux-Guillaume started working for AkzoNobel.
4\u00a0 Date on which Mr. Sohet started working for AkzoNobel.
5 50% for the 2020-2022 grant, no longer applicable as from the 2021-2023 grant.
6 50% for the 2020-2022 grant, 100% as from the 2021-2023 grant.
Share-matching plan
The members of the Board of Management and the members of the Executive Committee
are eligible to participate in the share-matching plan. Under certain conditions, members
who invest part of their short-term incentive payment in AkzoNobel shares may have such
shares matched by the company one-on-one. During 2023, no potential matching shares
were matched as the members of the Board of Management and the members of the
Executive Committee were not eligible for matching shares on the 2020 series. However, in
2023, the 2,708 potential matching shares that were granted to Thierry Vanlancker were
pro-rated, resulting in 903 potential matching shares. These shares were matched upon
termination of the management agreement in April 2023. In 2023, the members of the
Board of Management and the members of the Executive Committee invested part of their
2022 short-term incentive in AkzoNobel shares, leading to 2,545 potential matching shares.
The total number of matching shares outstanding per December 31, 2023, is 3,626. For an
overview of the matching shares outstanding for the members of the Board of Management
per December 31, 2023, we refer to the Remuneration report.
Fair value of matching shares
The fair value of the matching shares of \u20ac68.78 was based on the opening share price on
the investment date of April\u00a026, 2023, being \u20ac74.56, discounted for expected dividends
over the holding period (dividend yield: 2.66%).
Share plans of AkzoNobel employees
Share plan
Performance/
Vesting
period
Award
date
Vesting
date
End of
holding
period
Balance at
January 1,
2023
Awarded
in 2023
Vested in
2023
Forfeited
in 2023
Dividend
in
2023
Subject to
performance
condition
Unvested
in 2023
Subject to
holding
period
Balance at
December
31, 2023
2020 \u2013 2022 Restricted Share Plan E1
3 years
1/1/2020
1/1/2023
1/1/2024
136,401
\u2014
(136,401)
\u2014
\u2014
NA
\u2014
136,401
\u2014
2020 \u2013 2022 Performance Share Plan2
3 years
1/1/2020
1/1/2023
1/1/2025
10,972
\u2014
(10,972)
\u2014
\u2014
\u2014
\u2014
10,972
\u2014
2020 \u2013 2022 Restricted Share Plan NE1
3 years
1/4/2020
1/4/2023
NA
5,680
\u2014
(5,680)
\u2014
\u2014
NA
\u2014
\u2014
\u2014
2021 \u2013 2023 Restricted Share Plan E1
3 years
1/4/2021
1/4/2024
1/4/2025
154,950
240
(10,127)
(14,208)
\u2014
NA
130,855
130,855
130,855
2021 \u2013 2023 Performance Share Plan
3 years
1/1/2021
1/1/2024
1/1/2026
61,689
\u2014
\u2014
(54,716)
1,690
8,663
8,663
8,663
8,663
2021 \u2013 2023 Restricted Share Plan NE1
3 years
1/4/2021
1/4/2024
NA
25,580
\u2014
(480)
(1,080)
\u2014
NA
24,020
\u2014
24,020
2022 \u2013 2024 Restricted Share Plan E1
3 years
1/4/2022
1/4/2025
1/4/2026
170,994
240
(6,777)
(21,032)
\u2014
NA
143,425
143,425
143,425
2022 \u2013 2024 Performance Share Plan
3 years
1/1/2022
1/1/2025
1/1/2027
87,008
\u2014
\u2014
(25,946)
985
62,047
62,047
62,047
62,047
2022 \u2013 2024 Restricted Share Plan NE1
3 years
1/4/2022
1/4/2025
NA
47,182
390
(335)
(3,020)
\u2014
NA
44,217
\u2014
44,217
2023 \u2013 2025 Restricted Share Plan E1
3 years
1/4/2023
1/4/2026
1/4/2027
\u2014
247,214
(443)
(21,026)
\u2014
NA
225,745
225,745
225,745
2023 \u2013 2025 Performance Share Plan
3 years
1/1/2023
1/1/2026
1/1/2028
\u2014
108,147
\u2014
(6,147)
2,795
104,795
104,795
104,795
104,795
2023 \u2013 2025 Restricted Share Plan NE1
3 years
1/4/2023
1/4/2026
NA
\u2014
64,050
\u2014
(1,025)
\u2014
NA
63,025
\u2014
63,025
Total
700,456
420,281
(171,215)
(148,200)
5,470
175,505
806,792
822,903
806,792
1 E means executive plan; NE means non-executive plan.
2 Shares vested since AkzoNobel is legally bound to an agreement with a former member of the Executive Committee regarding the vesting of shares for this individual, as well as a
conditional share grant awarded to new Executive Committee ,members at the time of their hiring, who received these grants as buy-out from the contract at their previous employer.
Note 7: Financing income and expenses
Financing income and expenses
in \u20ac millions
2022
2023
Interest on net debt
Financing income
19
69
Financing expenses
(106)
(192)
Net interest on net debt
(87)
(123)
Other interest
Financing income related to post- retirement benefits
18
33
Interest on provisions
17
(1)
Exchange rate results
(65)
(128)
Hyperinflation: net gain/(loss) on monetary position
(20)
(46)
Other items
13
(7)
Net other financing credit/(charges)
(37)
(149)
Total financing income and expenses
(124)
(272)
Net financing expenses for the year were \u20ac272 million (2022 : \u20ac124 million). Significant
variances are:
\u2022 Net interest on net debt increased by \u20ac36 million to a \u20ac123 million charge (2022: \u20ac87
million); higher interest rates impacted both financing income and financing expenses
\u2022 Financing income related to post-retirement benefits increased by \u20ac15 million to \u20ac33
million (2022: \u20ac18 million) mainly as a result of higher discount rates. Interest income
from financial assets measured at amortized cost (including the loan to Pension Fund
APF in the Netherlands) amounted to approximately \u20ac5 million in both years. The
remainder was generated by financial assets measured at fair value through profit and
loss
\u2022 Interest income on provisions decreased by \u20ac18 million to negative \u20ac1 million (2022:
\u20ac17 million) due to the impact on discounting from changes in discount rates
\u2022 Exchange rate results were negative \u20ac128 million (2022: negative \u20ac65 million) and
contain \u20ac36 million negative result on cash flow hedging contracts, related to the
previously anticipated acquisition of Kansai Paints Africa (refer to Note 26 Financial risk
management for more details)
\u2022 Hyperinflation: the net loss on monetary position increased by \u20ac26 million to \u20ac46 million
\u2022 Other items decreased by \u20ac20 million, mainly due to \u20ac10 million interest income from
the UK ACT case which was included in 2022 (refer to Note 3 Segment information for
more details)
The average interest rate used for capitalized interest was 2.1% (2022: 1.7%). Capitalized
interest was negligible in both 2023 and 2022. The average interest rate on total debt was
3.2% (2022: 2.1%).
Impact hyperinflation accounting
We have applied IAS 29 \"Financial Reporting in Hyperinflationary Economies\" for T\u00fcrkiye as
from January 1, 2022. For Argentina, hyperinflation accounting was already applied as from
January 1, 2018. In addition, and in line with IAS 21 \"The Effects of Changes in Foreign
Exchange Rates\", end of period rates are used to translate both the balance sheet and the
statement of income into euros.
For T\u00fcrkiye, the revaluation effect on the non-monetary assets at January 1, 2022, was \u20ac16
million positive (after taxes), recorded as a restatement to opening shareholders\u2019 equity. In
addition, the opening balance of intangible assets has been restated by \u20ac1 million (refer to
Note 10 Intangible assets) and the opening balance of property, plant and equipment has
been restated by \u20ac15 million (refer to Note 11 Property, plant and equipment). Refer to
Note 8 Income tax for the related opening balance impact on deferred taxes.
The impact of the application of hyperinflation accounting and the use of end of period
rates to translate the statement of the income statement is shown in the table below.
Hyperinflation accounting
in \u20ac millions
2022
2023
Revenue
5
(64)
Operating income
(46)
(54)
Net interest on net debt
0
17
Exchange rate results
4
54
Hyperinflation: net gain/(loss) on monetary position
(20)
(46)
Financing income and expenses
(16)
25
Profit before tax
(62)
(29)
Income tax
(12)
(48)
Profit for the period
(74)
(77)
Attributable to
Shareholders of the company
(63)
(65)
Non-controlling interests
(11)
(12)
Note 8: Income tax
Pre-tax income from continuing operations for the year amounted to a profit of \u20ac784 million
(2022: \u20ac602 million). The net tax charges related to continuing operations are included in
the statement of income as shown in this Note and amount to \u20ac296 million (2022: \u20ac214
million), leading to an effective tax rate of 37.8% (2022: 35.5%).
Classification of current and deferred tax result
A breakdown into current and deferred tax expenses and a split of the main categories is
provided in the table below. For comparative reasons, this table presents the income tax
expense excluding the impact from discontinued operations. The total deferred tax in the
statement of income including discontinued operations was \u20ac9 million (2022: \u20ac8 million
income). The total tax charge including discontinued operations was \u20ac296 million (2022:
\u20ac211 million).
Classification of current and deferred tax result
in \u20ac millions
2022
2023
Current tax expense for
The year
(198)
(277)
Adjustments for previous years
(24)
(28)
Total current tax expense
(222)
(305)
Deferred tax expense for
Origination and reversal of temporary differences and tax
losses
21
57
(Derecognition)/recognition of deferred tax assets
(6)
(47)
Changes in tax rates
(7)
(1)
Total deferred tax expense
8
9
Total
(214)
(296)
Adjustments for prior years in 2023 mainly related to true-ups as a result of tax audits, while
in 2022 in addition a net tax charge of \u20ac13 million for the UK ACT case was recorded (refer
to Note 3 Segment information for more details).
Origination and reversal of temporary differences and tax losses is driven, amongst others,
by timing differences between recognition and payments for provisions, timing differences
on depreciation and amortization for tax purposes versus the consolidated financial
statements and tax loss carryforwards utilized against profits of the year or new tax losses
incurred.
The derecognition of deferred tax assets in 2023 mainly related to re-assessments of,
among others, technical tax limitations to deduct interest.
Effective tax rate reconciliation
In 2023, the effective income tax rate based on the statement of income was 37.8% (2022:
35.5%). A reconciliation between the effective tax rate and the weighted average statutory
income tax rate is provided in the table below. For comparative reasons, this table presents
the effective consolidated tax rate excluding the impact from discontinued operations.
Including these results, the effective consolidated tax rate is 37.8% (2022: 35.8%).
Effective tax rate reconciliation
in %
2022
2023
Corporate tax rate in the Netherlands
25.8
25.8
Effect of tax rates in other countries
(2.2)
(1.7)
Weighted average statutory income tax rate
23.6
24.1
Non-taxable income
(2.8)
(2.8)
Non-deductible expenses
3.3
2.2
Non-refundable withholding taxes
2.4
1.4
(Recognition)/derecognition of deferred tax assets
1.0
6.0
Adjustments for prior years
4.0
3.5
Hyperinflation impact
2.8
3.2
Deferred tax adjustment due to changes in tax rates
1.2
0.2
Effective tax rate
35.5
37.8
Non-taxable income in both 2023 and 2022 was mainly related to R&D credits and the tax
exemption for investments.
Non-deductible expenses are related to certain non-deductible costs in various countries.
The impact of non-refundable withholding tax on the tax rate is dependent on our relative
share in the profit of subsidiaries in countries that levy withholding tax on dividends and on
the timing of the remittance of such dividends. Based on the Dutch tax system there is a
limited credit for such taxes.
The derecognition of deferred tax assets in 2023 mainly relates to re-assessments of,
among others, technical tax limitations to deduct interest.
Adjustments for prior years in 2023 mainly related to true-ups as a result of tax audits, while
in 2022 in addition also a net tax charge of \u20ac13 million for the UK ACT case was recorded
(refer to Note 3 Segment information for more details).
The net effect of hyperinflation accounting in Argentina and T\u00fcrkiye combined in 2023 is
3.2% (2022: 2.8%). This mainly relates to the restatement of reserves, which results in a
non-taxable, non-cash impact on the effective tax rate.
Origination of deferred tax assets and liabilities
Deferred tax assets and liabilities originate from temporary differences in various balance
sheet line items, as well as from tax credits and tax loss carryforwards. The tables show the
origination of deferred tax assets and liabilities, and the movements thereof, for the financial
years 2023 and 2022.
Origination of deferred tax assets and liabilities 2023
in \u20ac millions
Balance at January
1, 2023
Changes in
exchange rate
Recognized in
income
Recognized in
equity / Other
comprehensive
income
Acquisitions
Balance at
December 31, 2023
Intangible assets
(521)
9
(16)
\u2014
(5)
(533)
Property, plant and equipment
57
17
(24)
\u2014
(1)
49
Financial non-current assets
(272)
(4)
7
22
\u2014
(247)
Post-retirement benefit provisions
76
\u2014
(7)
16
\u2014
85
Other provisions
25
(1)
4
\u2014
\u2014
28
Other items
126
(3)
(28)
(1)
(3)
91
Tax credits
206
\u2014
16
\u2014
\u2014
222
Tax loss carryforwards
240
(37)
57
\u2014
\u2014
260
Deferred tax assets (liabilities)
(63)
(19)
9
37
(9)
(45)
Origination of deferred tax assets and liabilities 2022
in \u20ac millions
Balance at January
1, 2022
Changes in
exchange rate
Recognized in
income
Recognized in
equity / Other
comprehensive
income
Acquisitions
Balance at
December 31, 2022
Intangible assets
(461)
23
\u2014
\u2014
(83)
(521)
Property, plant and equipment*
75
2
(3)
\u2014
(17)
57
Financial non-current assets
(406)
20
(25)
139
\u2014
(272)
Post-retirement benefit provisions
138
3
(12)
(53)
\u2014
76
Other provisions
28
\u2014
(3)
\u2014
\u2014
25
Other items*
96
(2)
36
\u2014
(4)
126
Tax credits
204
(1)
3
\u2014
\u2014
206
Tax loss carryforwards
237
(9)
12
\u2014
\u2014
240
Deferred tax assets (liabilities)
(89)
36
8
86
(104)
(63)
* Property, plant and equipment includes an opening balance adjustment of \u20ac3 million and other items of \u20ac1 million related to the application of IAS 29 \"Financial Reporting in Hyperinflationary Economies\" in T\u00fcrkiye. Refer to Note 7 Financing income and expenses for further
details.
Reconciliation deferred tax assets and liabilities to the balance
sheet
The table provides a reconciliation of the total deferred tax amounts for each of the
originating items to the deferred tax asset and liability positions as included in the balance
sheet.
Deferred tax assets and liabilities per balance sheet item
December 31, 2022
December 31, 2023
in \u20ac millions
Net
balance
Assets
Liabilities
Net
balance
Assets
Liabilities
Intangible assets
(521)
10
531
(533)
9
542
Property, plant and equipment
56
124
68
49
123
74
Financial non-current assets
(271)
6
277
(247)
11
258
Post-retirement benefit provisions
76
79
3
85
88
3
Other provisions
25
34
9
28
38
10
Other items
125
143
18
91
107
16
Tax credits
207
207
\u2014
222
222
\u2014
Tax loss carryforwards
240
240
\u2014
260
260
\u2014
Tax assets/liabilities
(63)
843
906
(45)
858
903
Set-off of tax
\u2014
(345)
(345)
\u2014
(346)
(346)
Net deferred tax positions
(63)
498
561
(45)
512
557
Deferred tax assets recoverability assessment
In assessing the recognition of deferred tax assets, management considers whether it is
probable that some portion or all of the deferred tax assets will be realized. The ultimate
realization of the deferred tax assets is dependent upon the generation of future taxable
income against which the deductible temporary differences, unused tax losses and unused
tax credits can be utilized.
Management considers the scheduled reversal of deferred tax liabilities, projected future
taxable income, and tax planning strategies in making this assessment. The projections
used to assess recoverability are, in general, based on a projection of 10 years. Specific
facts and circumstances per country may lead to shorter or longer projection periods being
used. Growth in profitability is projected using GDP growth, adjusting for specific factors
affecting profitability of our operations within the country.
The amount of deferred tax assets considered realizable could change if future estimates of
projected taxable income during the carryforward period, or other variables, are revised.
The majority of the amount of the non-current portion of deferred and current taxes will be
recovered or settled after more than 12 months.
In 2023, the assessment of deferred tax asset recoverability on the basis of taxable profit
forecasts resulted in derecognition of deferred tax assets related to non-deductible interest
carried forward. In 2022, the assessment of deferred tax asset recoverability on the basis of
taxable profit forecasts did not result in a significant net derecognition or re-recognition.
At year-end 2023, approximately 70% (2022: approximately 75%) of the recognized
deferred assets\u00a0 concerned the UK, the Netherlands and Germany.
From the total amount of recognized net deferred tax assets, \u20ac151 million (2022: \u20ac206
million) is related to entities that have suffered a loss in either the current or the previous
year and where utilization is dependent on future taxable profit in excess of the profit arising
from the reversal of existing taxable temporary differences. This assessment is based on
management\u2019s long-term projections and tax planning strategies.
In 2023, deferred tax assets not recognized include \u20ac548 million of tax loss carryforwards
and \u20ac44 million of non-deductible interest. In 2022, deferred tax assets not recognized fully
related to tax loss carryforwards. The losses in the tables on tax losses carried forward on
the next page are gross amounts, with the tax impact included in the last column of the
table.
A deferred tax liability is recognized for taxable temporary differences related to investments
in subsidiaries, branches and associates and interests in joint arrangements, to the extent
that it is probable that these will reverse in the foreseeable future. The expected net tax
impact of the remaining differences for which no deferred tax liabilities have been
recognized is \u20ac47 million (2022: \u20ac55 million).
Expiration year of loss carryforwards 2023
in \u20ac millions
2024
2025
2026
2027
2028
Later
Unlimited
Total
Deferred tax
Total loss carryforwards
1
1
4
5
76
51
3,009
3,147
808
Loss carryforwards not recognized in deferred tax assets
\u2014
\u2014
(1)
(1)
(1)
(17)
(2,153)
(2,173)
(548)
Total loss carryforwards recognized
1
1
3
4
75
34
856
974
260
Expiration year of loss carryforwards 2022
in \u20ac millions
2023
2024
2025
2026
2027
Later
Unlimited
Total
Deferred tax
Total loss carryforwards
\u2014
1
1
2
13
56
3,014
3,087
779
Loss carryforwards not recognized in deferred tax assets
\u2014
(1)
(1)
\u2014
\u2014
(10)
(2,120)
(2,132)
(539)
Total loss carryforwards recognized
\u2014
\u2014
\u2014
2
13
46
894
955
240
Uncertain tax positions
Liabilities for uncertain tax positions are recognized if and to the extent it is probable that
additional taxes will become due, and the amount can be measured reliably.
Our assessments are based on our best estimate of how the tax authorities concerned are
likely to evaluate and respond to the cases in question, taking into account expert advice.
Uncertain tax positions for which liabilities have been recorded, mainly relate to international
transfer pricing and deductibility of expenses.
In certain cases, uncertain tax positions are related to disputes with tax authorities. Such
disputes are usually strongly contested and defended by the company, often assisted by
outside counsel and/or experts. Significant judgment is involved in the determination of
such liabilities. Probability is assessed by applying interpretation of legislation and relevant
case law.
Impact OECD Pillar Two framework
On December\u00a015, 2022, the Council of the EU adopted the Pillar Two directive, which was
subsequently embedded in Dutch law on December 19, 2023. This directive will introduce
a minimum corporate tax rate set at 15% for each jurisdiction in which a company
operates. For AkzoNobel, the new rules will be applicable as of 2024.
In the 2023 financial statements, AkzoNobel applied the exemption for recognizing and
disclosing information about deferred tax assets and liabilities related to Pillar Two income
taxes.
AkzoNobel performed an analysis of the expected impact of the implementation of the
directive for AkzoNobel Group based on historical data. Based on this analysis, the
Transitional CbCR Safe Harbour is expected to be applicable for the majority of jurisdictions
and hence effectively excludes those jurisdictions from the scope of the rules in the initial
years. For the remaining jurisdictions, no material financial impact is anticipated for the
foreseeable future. Due to complexities in applying the Pillar Two legislation as well as the
fact that further guidance on rules and regulations is expected in the coming period, the
company will continue to assess the impact of the Pillar Two legislation on its future
performance.
Income tax recognized in equity
The following table shows income tax items recognized in equity by category.
Income tax recognized in equity
in \u20ac millions
2022
2023
Currency exchange differences on intercompany loans of a
permanent nature
2
(1)
Share-based compensation
(2)
(1)
Share buyback
2
\u2014
Post-retirement benefits
86
38
Changes in tax rates
\u2014
\u2014
IAS 29 opening balance adjustment
(4)
\u2014
Total
84
36
Current tax
2
(1)
Deferred tax
82
37
Total
84
36
Note 9: Earnings per share
Profit for the period attributable to the shareholders of the company was \u20ac442 million
(2022: \u20ac352 million).
Profit for the period
in \u20ac millions
2022
2023
Profit before tax from continuing operations
602
784
Income tax
(214)
(296)
Profit from continuing operations
388
488
Profit for the period attributable to non-controlling interests
(26)
(41)
Profit for the period from continuing operations
attributable to shareholders of the company
362
447
Profit for the period from discontinued operations attributable
to shareholders of the company
(10)
(5)
Profit for the period attributable to shareholders of the
company
352
442
In 2022, the number of shares for the earnings per share calculation decreased as a result
of share buyback programs; in 2023 there was no impact from share buybacks.
Weighted average number of common shares
Number of shares
2022
2023
Issued common shares at January 1
181,609,509
170,428,331
Effect of issued common shares during the year
186,077
145,224
Effect of share buyback program
(7,060,447)
\u2014
Shares for basic earnings per share for the year
174,735,139
170,573,555
Effect of dilutive shares
For performance-related and restricted shares
575,108
761,918
For share-matching plan
3,251
3,283
Shares for diluted earnings per share
175,313,498
171,338,756
Earnings per share
in \u20ac
2022
2023
Continuing operations
Basic
2.07
2.62
Diluted
2.06
2.61
Discontinued operations
Basic
(0.06)
(0.03)
Diluted
(0.05)
(0.03)
Total operations
Basic
2.01
2.59
Diluted
2.01
2.58
Refer to Note 3 Segment information for the calculation of adjusted earnings per share.
Note 10: Intangible assets
Intangible assets
in \u20ac millions
Goodwill
Brands
Customer lists
Other intangibles
Total
Balance at December 31, 2021
Cost of acquisition
1,182
2,239
972
171
4,564
Cost of internally developed intangibles
\u2014
\u2014
\u2014
241
241
Accumulated amortization/impairment
(27)
(209)
(616)
(263)
(1,115)
Carrying value at December 31, 2021
1,155
2,030
356
149
3,690
Impact IAS 29 Hyperinflation T\u00fcrkiye*
\u2014
\u2014
\u2014
1
1
Carrying value at January 1, 2022
1,155
2,030
356
150
3,691
Movements in 2022
Acquisitions through business combinations
262
72
193
11
538
Investments - including internally developed intangibles
\u2014
\u2014
\u2014
30
30
Amortization
\u2014
(15)
(40)
(32)
(87)
Impairments, including reversals thereof
\u2014
\u2014
\u2014
(2)
(2)
Hyperinflation adjustment
6
9
\u2014
\u2014
15
Changes in exchange rates
(46)
(31)
(36)
\u2014
(113)
Total movements
222
35
117
7
381
Balance at December 31, 2022
Cost of acquisition
1,405
2,288
1,127
179
4,999
Cost of internally developed intangibles
\u2014
\u2014
\u2014
268
268
Accumulated amortization/impairment
(28)
(223)
(654)
(290)
(1,195)
Carrying value at December 31, 2022
1,377
2,065
473
157
4,072
Movements in 2023
Acquisitions through business combinations
34
16
26
(4)
72
Investments - including internally developed intangibles
\u2014
\u2014
\u2014
21
21
Amortization
\u2014
(17)
(31)
(32)
(80)
Impairments, including reversals thereof
\u2014
\u2014
\u2014
(1)
(1)
Hyperinflation adjustment
10
17
\u2014
\u2014
27
Changes in exchange rates
9
(64)
23
2
(30)
Total movements
53
(48)
18
(14)
9
Balance at December 31, 2023
Cost of acquisition
1,458
2,255
1,151
180
5,044
Cost of internally developed intangibles
\u2014
\u2014
\u2014
273
273
Accumulated amortization/impairment
(28)
(238)
(660)
(310)
(1,236)
Carrying value at December 31, 2023
1,430
2,017
491
143
4,081
* As per June 2022, T\u00fcrkiye has been identified as a hyperinflationary economy. IAS 29 \"Financial Reporting in Hyperinflationary Economies\" has been applied for our activities in T\u00fcrkiye as from January 1, 2022. Refer to Note 7 Financing income and expenses for details on the
financial impact from applying IAS 29.
Brands
Brands as included in the table below comprise of brands with indefinite useful lives and
brands with finite useful lives. Brands with indefinite useful lives are almost fully related to
Dulux, which is the major brand, due to its global presence, high recognition and strategic
nature. Other intangibles include licenses, know-how, intellectual property rights, software
and development cost. Both at year-end 2023 and 2022, there were no material purchase
commitments for individual intangible assets. No intangible assets were registered as
security for bank loans.
Acquisitions through business combinations
The additions from acquisitions in 2023 primarily relate to the acquisition of the Huarun
business, China. In 2022, additions from acquisitions primarily related to the acquisition of
Grupo Orbis S.A., Colombia, and of the wheel liquid coatings business of Lankwitzer
Lackfabrick GmbH, Germany. Refer to Note 2 Scope of consolidation for disclosures on
acquisitions.
The paints business of Grupo Orbis has been allocated to business unit Decorative Paints
Latin America in 2022. In 2022, the Grupo Orbis coatings businesses were reported in
Performance Coatings Other. In 2023, these businesses have been included in the
respective Performance Coatings business units.
Annual impairment testing
Goodwill and other intangibles with indefinite useful lives are tested for impairment per
business unit (one level below segment level) annually or whenever an impairment trigger
exists, applying the value-in-use method.
The impairment test is based on the five-year plan, which contains euro-denominated cash
flow projections for each of the business units. After the five-year plan period the terminal
growth rate is applied, unless a different approach would be more appropriate. Elements
considered to determine if a different approach would be more appropriate include high
growth/emerging economies, geographic expansion opportunities, introduction of new
product ranges and opportunities from market consolidation. In 2023, this exception was
applied for Decorative Paints China and North Asia and for Decorative Paints South East
and South Asia, for which the revenue growth and margin development projections were
extrapolated beyond the five-year explicit forecast period for another five years, applying
reduced average growth rates.
Macro-economic developments and other relevant variables (e.g. inflation, geopolitical
uncertainties, climate risks - refer to Note 1 Summary of material accounting policies for a
description of the impact from climate change on the financial statements) are closely
monitored to ensure that the impact on the estimated future cash flows is reflected in the
models which are used to assess the value of AkzoNobel's asset base. The impact of
climate change did not have a significant effect on the estimated future cash flows.
Goodwill and other intangibles per business unit
in \u20ac millions
Goodwill
Brands with indefinite
useful lives
Other intangibles with
finite useful lives
Total intangibles
2022
2023
2022
2023
2022
2023
2022
2023
Decorative Paints Europe, Middle East and Africa
107
106
837
836
136
126
1,080
1,068
Decorative Paints Latin America
138
179
102
90
142
193
382
462
Decorative Paints China and North Asia
\u2014
32
680
643
9
35
689
710
Decorative Paints South East and South Asia
8
7
221
208
12
10
241
225
Powder Coatings
152
155
\u2014
\u2014
19
34
171
189
Marine and Protective Coatings
197
210
\u2014
\u2014
94
96
291
306
Automotive and Specialty Coatings
290
301
\u2014
\u2014
156
150
446
451
Industrial Coatings
413
440
\u2014
\u2014
110
125
523
565
Performance Coatings Other
72
\u2014
\u2014
\u2014
59
\u2014
131
\u2014
Corporate and other
\u2014
\u2014
\u2014
\u2014
118
105
118
105
Total
1,377
1,430
1,840
1,777
855
874
4,072
4,081
The key assumptions used in the projections for annual impairment testing are:
\u2022 Revenue growth per year: based on actual experience, analysis of markets and GDP
growth, and expected market share developments
\u2022 Margin development per year: based on actual experience and management\u2019s long-
term projections
\u2022 Weighted average cost of capital per year: the pre-tax discount rate determined per
business unit, reflecting current market assessments of the time value of money and
the risks specifically associated with the business unit
Key assumptions 2023
in % per year
Average revenue
growth 2024-2028
Pre-tax weighted
average cost of
capital 2024 -2028
Decorative Paints
2.4%-5.8%
10.8%-15.3%
Performance Coatings
2.0%-3.6%
10.7%-11.2%
Key assumptions 2022
in % per year
Average revenue
growth 2023-2027
Pre-tax weighted
average cost of
capital 2023-2027
Decorative Paints
1.8-6.7%
11.1-15.9%
Performance Coatings
1.3-4.0%
10.8-12.4%
For all business units, a terminal value was calculated based on long-term inflation
expectations of 2% (2022: 2%). The estimated pre-tax cash flows have been discounted to
their present value using a pre-tax weighted average cost of capital. Discount rates have
been determined for each business unit and range from 10.7% to 15.3% (2022: 10.8% to
15.9%), with a weighted average of 11.5% (2022: 11.7%). Both the long-term inflation
expectations and the discount rates are reflective of the inflation expectation in the
eurozone.
In 2023 and 2022, no impairment charges were recognized in relation to the annual
impairment test.
In addition to the annual impairment test, sensitivity tests were performed to assess the
impact of changes in the key assumptions revenue growth (50% lower), margin
development (1 percentage point lower) and weighted average cost of capital
(1\u00a0percentage point higher).
Given the continued uncertainty in the macro-economic environment, additional sensitivity
tests have been performed, like last year, in order to assess the impact of more severe
adverse changes in key assumptions.
Both the regular sensitivity tests and the additional sensitivity tests show that the changes
in key assumptions would not cause carrying amounts to exceed recoverable amounts for
any of the business units, except for Decorative Paints China and North Asia, where the
recently acquired Huarun business is included.
Impairment of specific intangible assets
Periodical evaluations are performed in order to ensure timely detection of triggers that
might indicate impairment of specific assets. Whenever such triggers are noted, the related
assets are assessed for impairment as appropriate. In 2023 and 2022, no significant
impairment charges were recorded in relation to specific assets.
Note 11: Property, plant and equipment
Property, plant and equipment
in \u20ac millions
Land and buildings
Plant equipment
and machinery
Other equipment
Construction in
progress and
prepayments on
projects
Assets not used
Total
Balance at December 31, 2021
Cost of acquisition
1,546
2,124
919
300
10
4,899
Accumulated depreciation/impairment
(794)
(1,509)
(786)
(3)
(7)
(3,099)
Carrying value at December 31, 2021
752
615
133
297
3
1,800
Impact IAS 29 Hyperinflation T\u00fcrkiye*
10
3
\u2014
2
\u2014
15
Carrying value at January 1, 2022
762
618
133
299
3
1,815
Movements in 2022
Acquisitions
75
45
5
\u2014
\u2014
125
Divestments
(9)
(4)
(2)
(5)
\u2014
(20)
Investments
2
11
6
242
1
262
Transfer between categories
53
87
36
(176)
\u2014
\u2014
Depreciation
(46)
(105)
(32)
\u2014
\u2014
(183)
Hyperinflation adjustment
27
2
\u2014
1
\u2014
30
Changes in exchange rates
(32)
(31)
(7)
9
\u2014
(61)
Total movements
70
5
6
71
1
153
Balance at December 31, 2022
Cost of acquisition
1,658
2,208
923
373
11
5,173
Accumulated depreciation/impairment
(826)
(1,585)
(784)
(3)
(7)
(3,205)
Carrying value at December 31, 2022
832
623
139
370
4
1,968
Movements in 2023
Acquisitions
5
1
\u2014
\u2014
\u2014
6
Divestments
(14)
(3)
(3)
(1)
(1)
(22)
Investments
2
8
2
253
\u2014
265
Transfer between categories
70
145
40
(255)
\u2014
\u2014
Depreciation
(44)
(101)
(32)
\u2014
(1)
(178)
Impairments, including reversals thereof
(1)
(2)
\u2014
\u2014
\u2014
(3)
Hyperinflation adjustment
29
13
1
8
\u2014
51
Changes in exchange rates
(40)
(21)
(9)
(23)
\u2014
(93)
Total movements
7
40
(1)
(18)
(2)
26
Balance at December 31, 2023
Cost of acquisition
1,656
2,310
904
354
10
5,234
Accumulated depreciation/impairment
(817)
(1,647)
(766)
(2)
(8)
(3,240)
Carrying value at December 31, 2023
839
663
138
352
2
1,994
* As per June 2022, T\u00fcrkiye has been identified as a hyperinflationary economy. IAS 29 \"Financial Reporting in Hyperinflationary Economies\" has been applied for our activities in T\u00fcrkiye as from January 1, 2022. Refer to Note 7 Financing income and expenses for details on the
financial impact from applying IAS 29.
Acquisitions
The additions from acquisitions in 2023 primarily relate to the acquisition of the Huarun
business, China. The additions from acquisitions in 2022 primarily relate to the acquisition
of Grupo Orbis S.A., Colombia, and of the wheel liquid coatings business of Lankwitzer
Lackfabrik GmbH, Germany. Refer to Note 2 Scope of consolidation for disclosures on
acquisitions.
Investments in property, plant and equipment
In both 2023 and 2022 we have large investment projects. These include setting up a new
R&D center and relocating the production site in Barcelona, Spain, upgrading a Powder
Coatings plant in Gwalior, India, and establishing a new Powder Coatings manufacturing
line at our Hanoi, Vietnam location, as well as relocating our Wood Coatings site to High
Point, US.
Impairment of specific property, plant and equipment assets
Periodical evaluations are performed in order to ensure timely detection of triggers that
might indicate impairment of specific assets. Whenever such triggers are noted, the related
assets are assessed for impairment as appropriate. In 2023 and 2022, no significant
impairments were recognized.
Note 12: Leases
Right-of-use assets
in \u20ac millions
Land
Buildings
Other
Total
Balance at January 1, 2022
Cost of acquisition
61
372
109
542
Accumulated depreciation/impairment
(19)
(170)
(49)
(238)
Carrying value at January 1, 2022
42
202
60
304
Movements in 2022
Acquisitions
2
5
3
10
Additions/modifications
\u2014
58
30
88
Disposals
\u2014
(7)
(2)
(9)
Depreciation
(3)
(64)
(31)
(98)
Impairments, including reversals thereof
\u2014
(3)
\u2014
(3)
Changes in exchange rates
1
(2)
\u2014
(1)
Total movements
\u2014
(13)
\u2014
(13)
Cost of acquisition
64
393
117
574
Accumulated depreciation/impairment
(22)
(204)
(57)
(283)
Carrying value at December 31, 2022
42
189
60
291
Movements in 2023
Acquisitions
15
\u2014
\u2014
15
Additions/modifications
2
61
46
109
Disposals
(1)
(5)
(6)
(12)
Depreciation
(2)
(63)
(34)
(99)
Changes in exchange rates
(2)
2
(2)
(2)
Total movements
12
(5)
4
11
Cost of acquisition
77
399
123
599
Accumulated depreciation/impairment
(23)
(215)
(59)
(297)
Carrying value at December 31, 2023
54
184
64
302
AkzoNobel mainly leases land, office spaces, stores and cars. Some leases provide for
additional rent payments that are based on changes in local price indices.
Some property leases contain extension options exercisable by AkzoNobel up to one year
before the end of the non-cancellable contract period. We have estimated that the lease
liability would increase by less than 20%, if we would exercise the extension options which
are currently not included in the valuation of the lease liability. This excludes so-called
\u201cevergreens\u201d or perpetual leases.
Total net cash outflow from financing activities related to leases recognized on the balance
sheet was \u20ac107 million (2022: \u20ac104 million). Net cash outflow for leases not recognized on
the balance sheet was \u20ac21 million (2022: \u20ac19 million).
Refer to Note 26 Financial risk management for the maturities of lease liabilities.
The table below shows the total impact from leases on our profit and loss account.
Income/(expenses) recognized in profit and loss
in \u20ac millions
2022
2023
Sub lease income
2
\u2014
Depreciation right-of-use assets
(98)
(99)
Impairments for right-of-use assets
(3)
\u2014
Interest expense on lease liabilities
(6)
(7)
Short-term lease expenses
(11)
(14)
Expenses relating to low-value assets
(4)
(5)
Variable lease expenses
(4)
(2)
Total expenses
(124)
(127)
Impairments of specific right-of-use assets
Periodical evaluations are performed in order to ensure timely detection of triggers that
might indicate impairment of specific assets. Whenever such triggers are noted, the related
assets are assessed for impairment as appropriate.
In 2023 and 2022, no significant impairments were recognized.
Note 13: Investments in associates
The total value of investments in associates at December 31, 2023, amounted to \u20ac216
million (2022: \u20ac193 million) and consisted of our equity share of \u20ac214 million (2022: \u20ac191
million) and loans granted of \u20ac2 million (2022: \u20ac2 million).
Balance sheet information of our share in associates
Associates
in \u20ac millions, at December 31
2022
2023
Condensed balance sheet
Non-current assets
97
108
Current assets
152
163
Total assets
249
271
Shareholders\u2019equity
191
214
Non-current liabilities
6
8
Current liabilities
52
49
Total liabilities and equity
249
271
Profit and loss of our share in associates
Associates
in \u20ac millions
2022
2023
Condensed statement of income
Revenue
218
209
Profit before tax
25
38
Profit for the period
18
27
In 2023, the results from associates amounted to a profit of \u20ac27 million (2022: \u20ac18 million).
No significant contingent liabilities exist related to associates. The largest associate of
AkzoNobel is Metlac S.p.a., incorporated in Italy. None of the associates are considered
individually material to the group.
Note 14: Financial non-current assets
Financial non-current assets can be broken down as per the table below.
Financial non-current assets
in \u20ac millions, at December 31
2022
2023
Pension assets
1,029
1,017
Loans and receivables
362
299
Other financial non-current assets
84
93
Total
1,475
1,409
Pension assets (\u20ac1,017 million) relate to pension plans in an asset position (2022: \u20ac1,029
million). For more information on post-retirement benefit plans, refer to Note 18 Post-
retirement benefit provisions.
Loans and receivables include the subordinated loan granted to the Pension Fund APF in
the Netherlands valued at \u20ac90 million (2022: \u20ac89 million).
Loans and receivables are considered to have low credit risk; the impairment provision
recognized during the period was limited to 12 months expected losses.
Note 15: Inventories
The total carrying value of inventories as per December 31, 2023 has decreased compared
to December 31, 2022, mainly due to the combined impact of lower raw material prices,
currency translation and lower volumes. Inventories can be broken down as per the table
below.
Inventories
in \u20ac millions, at December 31
2022
2023
Raw materials and supplies
676
579
Work in progress
104
91
Finished products and goods for resale
1,063
979
Total
1,843
1,649
Of the total carrying value of inventories at year-end 2023, \u20ac10 million was measured at net
realizable value (2022: \u20ac16 million). In 2023, \u20ac86 million was recognized in the statement of
income for the write-down of inventories (2022: \u20ac86 million), while \u20ac20 million of write-
downs were reversed (2022: \u20ac30 million). There are no inventories subject to retention of
title clauses.
Note 16: Trade and other receivables
Trade and other receivables can be broken down as per the table below.
Trade and other receivables
in \u20ac millions, at December 31
2022
2023
Trade receivables
2,123
2,187
Prepaid expenses
58
39
Tax receivables other than income tax
156
154
FX contracts
18
14
Receivables from associates
4
\u2014
Other receivables
88
89
Total
2,447
2,483
Other receivables consist of a large number of individually immaterial items.
Ageing of trade receivables
in \u20ac millions, at December 31
2022
2023
Performing trade receivables
1,987
2,040
Past due trade receivables
< 3 months
104
118
> 3 months
74
68
Allowance for impairment
(42)
(39)
Total trade receivables
2,123
2,187
Trade receivables are presented net of an allowance for impairment of \u20ac39 million (2022:
\u20ac42 million). In 2023, \u20ac14 million of impairment losses were recognized in the statement of
income (2022: \u20ac17 million) and \u20ac8 million was reversed (2022: \u20ac8 million). Since the total
amount of impairment losses under IFRS 9 is not significant, no separate disclosure was
made in the statement of income.
Allowance for impairment of trade receivables
in \u20ac millions
2022
2023
Balance at January 1
42
42
Additions charged to income
17
14
Release of unused amounts
(8)
(8)
Utilization
(9)
(8)
Acquisitions
2
\u2014
Currency exchange differences
(2)
(1)
Balance at December 31
42
39
Note 17: Group equity
Composition of share capital at year-end 2022
in \u20ac
Authorized share
capital
Subscribed share
capital
Priority shares (48 with nominal value of \u20ac400)
19,200
19,200
Cumulative preferred shares (200 million with nominal value of
\u20ac0.50)
100,000,000
\u2014
Common shares (500 million with nominal value of \u20ac0.50)
250,000,000
87,187,614
Total
350,019,200
87,206,814
Composition of share capital at year-end 2023
in \u20ac
Authorized share
capital
Subscribed share
capital
Priority shares (48 with nominal value of \u20ac400)
19,200
19,200
Cumulative preferred shares (200 million with nominal value of
\u20ac0.50)
100,000,000
\u2014
Common shares (500 million with nominal value of \u20ac0.50)
250,000,000
85,300,338
Total
350,019,200
85,319,538
Outstanding common shares
Number of shares
2022
2023
Outstanding at January\u00a01
181,609,509
174,375,227
Issued in connection to performance-related share plan,
restricted share plan and share-matching plan
214,262
172,344
Shares cancelled related to share buyback from previous year
(2,744,210)
(3,946,896)
Shares bought back during the year
(8,651,230)
\u2014
Shares bought back during the year not yet cancelled
3,946,896
\u2014
Outstanding at December 31
174,375,227
170,600,675
Weighted average number of common shares
Number of shares
2022
2023
Weighted average number of common shares
174,735,139
170,573,555
Subscribed share capital
For further details on subscribed share capital, refer to Note F Shareholder's equity in the
Company financial statements.
Cash flow hedge reserve
The cash flow hedge reserve comprises the effective portion of the cumulative net change
in the fair value of hedging instruments used in cash flow hedges, pending subsequent
recognition in the statement of income or in the initial cost or other carrying amount of a
non-financial asset or non-financial liability.
Cumulative translation reserve
Cumulative translation reserves comprise all foreign exchange differences arising from the
translation of the financial statements of foreign operations, as well as from the translation
of intercompany loans with a permanent nature and liabilities and derivatives that hedge the
net investments in a foreign subsidiary.
Equity-settled transactions
Equity-settled transactions relate to the performance-related and restricted share plans and
the share-matching plan, whereby shares are granted to the Board of Management,
Executive Committee, other executives and certain non-executive employee categories. For
details on share-based compensation, refer to Note 6 Employee benefits.
Dividend
Our dividend policy is to pay a stable to rising dividend. In 2023, an interim dividend of
\u20ac0.44 (2022: \u20ac0.44) per common share was paid. We propose a 2023 final dividend of
\u20ac1.54 (2022: \u20ac1.54) per common share, which would equal a total 2023 dividend of \u20ac1.98
(2022: \u20ac1.98).
Share buybacks
In February 2022, a \u20ac500 million share buyback program was announced which was
completed in 2022. As at December 31, 2022, a total of 7.3 million shares had been
acquired under this program, of which 3.4 million shares were cancelled.
All 3.9 million shares which were repurchased in 2022 and still outstanding at December
31, 2022, were cancelled in 2023.
For further details on weighted average number of shares, refer to Note 9 Earnings per
share.
Non-controlling interests
None of the non-controlling interests are considered individually material to the group. The
effects of share transactions with non-controlling interest shareholders are recorded in
equity insofar these do not lead to changes in control.
Non-controlling interests
2022
2023
Group entity
Partner at year-end 2023
%
Equity stake
in \u20ac millions
%
Equity stake
in \u20ac millions
Akzo Nobel India Limited, Kolkata, India
Privately held, India
25.24
54
25.24
55
PT ICI Paints Indonesia, Jakarta, Indonesia
PT DWI Satrya Utama, Indonesia
45.00
31
45.00
32
Akzo Nobel Kemipol A.S., Izmir, T\u00fcrkiye
Altan, Eyy\u00fcp and other family members
49.00
24
49.00
24
International Paints of Shanghai Co. Ltd, Shanghai, China
Shanghai Huayi Fine Chemical Co. Ltd and China National
Shipbuilding Equipment & Materials Corp.
49.00
16
49.00
21
Akzo Nobel Paints (Malaysia) Sdn. Bhd.,Kuala Lumpur, Malaysia
Permodalan Nasional Berhad, Malaysia
40.05
20
40.05
17
Akzo Nobel Saudi Arabia Ltd, Saudi Arabia
Yousuf Bin Ahmed Kanoo Co. Ltd, Saudi Arabia
40.00
14
40.00
16
Akzo Nobel Oman SAOC, Muscat, Oman
Omar Zawawi Establishment LLC, Oman
50.00
12
50.00
12
Akzo Nobel UAE Paints L.L.C., United Arab Emirates
Kanoo Group, United Arab Emirates
40.00
8
40.00
11
Societe Tunisienne de Peintures Astral S.A., Megrine, Tunisia
Several people
40.00
8
40.00
10
International Paint (Korea) Ltd, Busan, South-Korea
Noroo Holdings, South Korea
40.00
6
40.00
6
Akzo Nobel Coatings SA, Casablanca, Morocco
Soci\u00e9t\u00e9 Industrielle de Peinture and several people
40.00
4
40.00
5
Others
18
15
Total
215
224
Note 18: Post-retirement benefit provisions
Post-retirement benefit provisions relate to defined benefit pension and other post-
retirement benefit plans, including healthcare or welfare plans. The largest defined benefit
pension plans are the ICI Pension Fund (ICIPF) and the Akzo Nobel (CPS) Pension Scheme
(CPS) in the UK which together account for 86% of defined benefit obligations (DBO) and
90% of plan assets. Other pension plans include among others the largely unfunded plans
in Germany, the plans in the US and certain other smaller plans in the UK. The benefits of
these pension plans are based primarily on years of service and employees\u2019 compensation.
The funding policy for the plans is consistent with local requirements in the countries of
establishment. We also provide certain healthcare and life insurance benefits to retired
employees, mainly in the US and the Netherlands.
Valuations of the obligations under the plans are carried out regularly by independent
qualified actuaries. We accrue for the expected costs of providing such post-retirement
benefits during the service years of the employees. Governance of the benefit plans is the
responsibility of the Executive Pensions Committee. This committee provides oversight of
the costs and risks of the plans including oversight of the impact of the plans on the
company in terms of cash flow, pension expenses and the balance sheet. The committee
develops and maintains policies on benefit design, funding, asset allocation and
assumption setting.
Pension plans
Almost all of the defined benefit plans have been closed to new members since the early to
mid-2000s, although in many plans long-serving employees continue to accrue benefits.
For plans in the US, benefit accrual is frozen and employees participate in defined
contribution plans for future service. In countries where plans are closed, new employees
are eligible to join a defined contribution arrangement. In countries in high growth markets,
pension schemes currently are not material. Unless mandated by law, it is our policy that
any new plans are established as defined contribution plans.
The most significant risks that we run in relation to defined benefit plans are investment
returns falling short of expectations, low discount rates, inflation exceeding expectations,
retirees living longer than expected and legislation changes. The assets and liabilities of
each of the funded plans are held outside of the company in a trust or a foundation, which
is governed by a board of fiduciaries or trustees, depending on the legal arrangements in
the country concerned. The primary objective with regards to the investment of pension
plan assets is to ensure that each individual plan has sufficient funds available to satisfy
future benefit obligations in accordance with local legal and legislative requirements. For this
purpose, we work closely with plan trustees or fiduciaries to develop investment strategies.
Studies are carried out periodically to analyze and understand the trade-off between
expected investment returns, volatility of outcomes and the impact on cash contributions.
We aim to strike a cautious balance between these factors in order to agree affordable
contribution schedules with plan fiduciaries.
Plan assets principally consist of insurance (annuity) policies, long-term interest-earning
investments and (investment funds with holdings primarily in) quoted equity securities. Our
largest plans use derivatives (such as index futures, currency forward contracts and swaps)
to reduce volatility of underlying variables, for efficient portfolio management and to improve
the liability matching characteristics of the assets. Limits have been set on the use of
derivatives which are periodically subject to review for compliance with the pension fund\u2019s
investment strategy.
In line with our proactive pension risk management strategy, we seek to reduce risk in our
pension plans over time. We evaluate potential de-risking opportunities on an ongoing
basis. Future de-risking transactions may have both cash flow and balance sheet impacts
which may be substantial, as had some of the de-risking actions already taken. The cost of
fully removing risk would exceed estimated funding deficits.
Between 2014 and 2023, ICIPF and a smaller UK plan, the ICI Specialty Chemicals Pension
Fund (ISCPF), have invested in annuity buy-in contracts that aim to hedge all key risks
related to their pensioner populations. CPS also invested in an annuity buy-in contract in
November 2022 that aims to hedge all key risks related to 39% of their pensioner liabilities.
In April 2023, the Trustee of the ISCPF entered into a further annuity buy-in agreement with
Pension Insurance Corporation plc. It covers, in aggregate, \u00a3148 million (\u20ac168 million) of
pensioner liabilities (insurer valuation). The buy-in involved the purchase of a bulk annuity
policy under which the insurer will pay to ISCPF amounts equivalent to the benefits payable
to all remaining pensioner and deferred members. The pension liabilities remain with, and
the matching annuity policies are held within, ISCPF. The accounting impact of the
transaction is a lower valuation of the plan assets giving a reduction in other comprehensive
income of \u00a345 million (\u20ac51 million).
By purchasing bulk annuities, the ICIPF, CPS and ISCPF Trustees have taken significant
steps in actively de-risking liabilities and reducing the risk that AkzoNobel will be required to
contribute additional cash in the future.
CPS also has an insurance contract to hedge longevity risk in respect of a portion of its
pensioners not impacted by the recent buy-in transaction.
On November 25, 2020, correspondence between the Chancellor of the Exchequer and
the UK Statistics Authority (UKSA) was published regarding the future of the Retail Price
Index (RPI) measurement of inflation. With effect from February 2030 onwards, increases in
the RPI will be aligned with those under the Consumer Prices Index (CPI) with owner
occupiers\u2019 housing costs (CPIH). Broadly this is expected to result in RPI inflation being 1%
lower in the longer term than under the existing methodology. The inflation assumption
continues to be calculated using a market breakeven inflation rate and the CPI inflation
assumption, on which the benefits of some plans are based, is set with reference to RPI.
Until 2030, the CPI inflation assumption is calculated as 1% below RPI and from 2030
onwards as 0.1% below RPI.
The Virgin Media Ltd versus NTL Pension Trustees decision, handed down by the UK High
Court on June 16, 2023, has implications for the validity of trust deeds of amendment over
the last 25 years. This decision is being appealed. Whether this decision could also have
implications for AkzoNobel\u2019s defined benefit pension plans in the UK, is yet to be
determined. We are not in a position to make a reliable estimate of the impact of this
decision, if any, or of the impact of any related legal or governmental follow-up actions.
Therefore, no changes were made to the defined benefit obligation at this stage.
The remaining pension plans primarily represent plans accounted for as defined
contribution plans. This includes, among others, the Pension Fund APF in the Netherlands
and the 401k Plan in the US.
The ITP2 plan in Sweden is financed through insurance with the Alecta insurance company
and is classified as a multi-employer defined benefit plan. As AkzoNobel does not have
access to sufficient information from Alecta to enable defined benefit accounting treatment,
it is accounted for as a defined contribution plan. Contributions in 2023 were \u20ac1 million
(2022: \u20ac2 million). Alecta\u2019s funding ratio is normally allowed to vary between 125% and
175%. The most recently quoted ratio at September 2023 stood at 178%.
The expenses of all plans accounted for as defined contribution plans in AkzoNobel totaled
\u20ac90 million in 2023 (2022: \u20ac89 million).
DBO at funded and unfunded pension plans*
in \u20ac millions, at December 31
2022
2023
Wholly or partly funded plans
9,229
9,137
Unfunded plans
246
270
Total
9,475
9,407
* Excludes other post-retirement benefit plans.
Other post-retirement benefit plans
AkzoNobel provides certain healthcare and life insurance benefits to retired employees,
mainly in the US and the Netherlands. The risks to which the US healthcare plans expose
AkzoNobel include the risk of future increases in the cost of healthcare which would
increase the cost of maintaining the plans. The benefit payments to retirees under the
Dutch plan are frozen. Both plans expose AkzoNobel to the risk of a decline in discount
rates, which increases the plan obligations, and longevity risk as the plans generally pay
lifetime benefits.
Reconciliation to the balance sheet
The closing net balance sheet position of \u20ac549 million net asset (2022: \u20ac602 million net
asset) includes the pension plans (\u20ac652 million net asset; 2022: \u20ac709 million net asset) and
other post-retirement plans (\u20ac103 million liability; 2022: \u20ac107 million liability).
Reconciliation to the balance sheet
2022
2023
in \u20ac millions
DBO
Plan
assets
Total
DBO
Plan
assets
Total
Balance at the beginning of the period
(14,310)
15,330
1,020
(9,582)
10,193
611
Statement of income
Current service cost
(31)
\u2014
(31)
(22)
\u2014
(22)
Past service cost
\u2014
\u2014
\u2014
(1)
\u2014
(1)
Settlements
18
(18)
\u2014
13
(13)
\u2014
Net interest (charge)/income on net defined benefit (liability)/asset
(254)
272
18
(455)
488
33
Cost recognized in statement of income
(267)
254
(13)
(465)
475
10
Remeasurements recognized in Other comprehensive income
Actuarial (loss)/gain due to liability experience
(279)
\u2014
(279)
(131)
\u2014
(131)
Actuarial (loss)/gain due to liability financial assumption changes
3,754
\u2014
3,754
(233)
\u2014
(233)
Actuarial (loss)/gain due to liability demographic assumption changes
18
\u2014
18
256
\u2014
256
Actuarial (loss)/gain due to buy-ins
\u2014
(76)
(76)
\u2014
(51)
(51)
Return on plan assets (less than)/greater than discount rate
\u2014
(3,784)
(3,784)
\u2014
10
10
Remeasurement effects recognized in Other comprehensive income
3,493
(3,860)
(367)
(108)
(41)
(149)
Cash flow
Employer contributions
\u2014
70
70
\u2014
63
63
Employee contributions
(2)
2
\u2014
(2)
2
\u2014
Benefits and administration costs paid from plan assets
842
(842)
\u2014
793
(793)
\u2014
Net cash flow
840
(770)
70
791
(728)
63
Other
Acquisitions/divestments/transfers
\u2014
(1)
(1)
1
(1)
\u2014
Changes in exchange rates
662
(760)
(98)
(147)
168
21
Total other
662
(761)
(99)
(146)
167
21
Balance at the end of the period
(9,582)
10,193
611
(9,510)
10,066
556
Asset restriction
(9)
(7)
Net balance sheet position
602
549
Presentation of Net balance sheet position
Financial non-current assets
1,029
1,017
Post-retirement benefit provisions
(387)
(423)
Current portion of provisions
(40)
(45)
Net balance sheet position
602
549
Administrative expenses
In addition to the expenses borne by the funds themselves, some expenses are borne
directly by AkzoNobel. Administrative expenses, especially for the UK pension funds, of \u20ac25
million are included in 2023 operating income (2022: \u20ac26 million). In addition, we directly
incurred asset management expenses of \u20ac2 million (2022: \u20ac2 million), which have been
included in other comprehensive income.
Interest costs
Interest costs on the DBO for both pensions and other post-retirement benefits, together
with the interest income on plan assets, comprise the financing income related to post-
retirement benefits of \u20ac33 million (2022: \u20ac18 million), refer to Note 7 Financing income and
expenses.
Pension plans in asset position
Pension balances recorded under Financial non-current assets totaled \u20ac1,017 million
(2022: \u20ac1,029 million). The \u20ac12 million decrease in 2023 is due to \u20ac87 million of net
actuarial losses, partly offset by \u20ac15 million of of employer contributions, net income of \u20ac42
million and exchange rate translation gains of \u20ac18 million.
Plan assets could be recognized in the Company's balance sheet under IFRIC 14 because
economic benefits are available in the form of future refunds from the plan or reductions in
future contributions to the plan, either during the life of the plan or on the (final) settlement
of the plan liabilities.
Plan assets
The equities and government bond debt assets have quoted prices in active markets,
although most are held through funds comprised of such instruments which are not actively
traded themselves. The UK buy-in annuity policies have a value that is equal to the DBO of
the pensioners covered by the policies.
The total value of plan assets not quoted in active markets is \u20ac6,603 million ( 2022: \u20ac6,666
million), including the UK buy-in annuity policies totaling \u20ac6,123 million (2022: \u20ac6,078
million), investments in real estate totaling \u20ac258 million (2022: \u20ac343 million) and other
investments in infrastructure and insurance policies.
Plan assets did not directly include any of AkzoNobel\u2019s own transferable financial
instruments, nor any property occupied by or assets used by the company.
Plan assets
2022
2023
in \u20ac millions, at December 31
Total
Percentage of
total
Total
Percentage of
total
Equities
225
2
192
2
Debt - fixed interest government
bonds
580
6
562
6
Debt - index-linked government bonds
1,230
12
1,177
12
Debt - corporate and other bonds
1,394
13
1,503
15
UK buy-in annuity policies
6,078
60
6,123
61
Cash and cash equivalents
166
2
126
1
Other
520
5
383
3
Total
10,193
100
10,066
100
Cash flows
In 2024, we expect to contribute \u20ac43 million (2023: \u20ac53 million) to our defined benefit
pension plans. We expect to pay a further \u20ac10 million (2023: \u20ac10 million) to our other post-
retirement benefit plans. No allowance is made for any special one-off contributions that
may arise in relation to new de-risking opportunities.
Cash flows
Pensions
Other post-
retirement
benefits
in \u20ac millions
2023
2024
2023
2024
Regular contributions
45
36
10
10
Top-ups
8
7
\u2014
\u2014
Total
53
43
10
10
Sensitivity of DBO
The actuarially calculated sensitivity effects on DBO shown in the table allow for an
alternative value for each assumption while the other actuarial assumptions remain
unchanged. This table illustrates the overall impact on DBO for the changes shown, which
management assessed could be reasonably possible over a longer term from a sensitivity
test perspective. It should be noted, however, that this analysis does not indicate and
probability of such changes occurring, not does it preclude larger changes in any given
period or longer term.
In addition, the significance of the impact and the range of reasonably possible alternative
assumptions may differ between the different plans that comprise the total DBO. In
particular, the plans differ in benefit design, currency and average term, meaning that
different assumptions have different levels of significance for each plan.
The sensitivity analysis is intended to illustrate the inherent uncertainty in the valuation of the
DBO under market conditions at the measurement date. Its results, in principle, cannot be
extrapolated due to increasing non-linear effects that changes in the key actuarial
assumptions, when deviating further from the assumptions presented, may have on the
total DBO. Any management actions that may be taken to mitigate the inherent risks in the
post-retirement defined benefit plans are not reflected in this analysis, as they would
normally be reflected in plan asset changes rather than DBO changes.
The sensitivities in the table only apply to the DBO and not to the net amounts recognized
in the balance sheet. Movements in the fair value of plan assets (which include the de-
risking instruments) would, to a significant extent, be expected to offset movements in the
DBO resulting from changes in the given assumptions.
At ICIPF, the annuity buy-in contracts cover 99% of pensioner liabilities (2022: 99%) and
88% of total liabilities (2022: 88%).
At CPS, the annuity buy-in contract covers 39% of pensioner liabilities (2022: 42%) and
28% of total liabilities (2022: 28%). Also at CPS, the longevity hedge contract covers 45%
of pensioner liabilities (2022: 48%) and 33% of total liabilities (2022: 30%).
Sensitivity of DBO to change in assumptions
in \u20ac millions
ICIPF
UK
CPS
UK
Other
pension plans
Other post-
retirement
benefits
Total
Discount rate: 0.5% decrease
260
140
74
4
478
Price inflation: 0.5% increase*
152
85
39
\u2014
276
Life expectancy: one year increase from age 60
362
94
42
4
502
Maturity information
Weighted average duration of DBO (years)
8.9
11.8
11.3
8.7
10.0
* The sensitivity to price inflation assumption includes corresponding changes to all inflation-related compensation increases,
pensions in payment and pensions in deferment.
Future benefit payments
The figures in the table below are the estimated future benefit payments to be paid from the
plans to beneficiaries over the next ten years.
Future benefit payments
in \u20ac millions
Pensions
Other post-
retirement
benefits
2024
786
10
2025
792
10
2026
797
10
2027
806
9
2028
809
9
2029-2033
4,157
39
Key figures and assumptions by plan
2022
2023
in \u20ac millions or %
ICIPF
UK
CPS
UK
Other
pension
plans
Other post-
retirement
benefits
Total
ICIPF
UK
CPS
UK
Other
pension
plans
Other post-
retirement
benefits
Total
Percentage of total DBO
61%
25%
13%
1%
100%
61%
25%
13%
1%
100%
Defined Benefit Obligation at year-end
(5,875)
(2,362)
(1,238)
(107)
(9,582)
(5,762)
(2,373)
(1,272)
(103)
(9,510)
Fair value of plan assets at year-end
6,293
2,895
1,005
\u2014
10,193
6,176
2,931
959
\u2014
10,066
Plan funded status
418
533
(233)
(107)
611
414
558
(313)
(103)
556
Restriction on asset recognition
\u2014
\u2014
(9)
\u2014
(9)
\u2014
\u2014
(7)
\u2014
(7)
Amounts recognized on the balance sheet
418
533
(242)
(107)
602
414
558
(320)
(103)
549
Percentage of total current service cost
6%
26%
68%
\u2014
100%
5%
23%
72%
\u2014
100%
Current service cost
(2)
(8)
(21)
\u2014
(31)
(1)
(5)
(16)
\u2014
(22)
Employer contributions
\u2014
13
45
12
70
1
7
45
10
63
Discount rate
4.9%
4.9%
4.6%
5.9%
4.9%
4.6%
4.6%
4.3%
6.1%
4.6%
Rate of compensation increase
1.5%
1.4%
2.0%
\u2014
1.5%
1.4%
1.4%
2.2%
\u2014
1.5%
Inflation
3.3%
3.3%
2.3%
\u2014
3.2%
3.1%
3.1%
2.4%
\u2014
3.0%
Pension increases
3.1%
2.7%
2.2%
\u2014
2.9%
2.9%
2.6%
2.2%
\u2014
2.8%
Life expectancy (in years)
Currently aged 60
Males
26.2
26.2
25.7
25.8
26.1
25.7
25.5
26.0
25.7
25.7
Females
27.8
29.1
28.1
27.8
28.2
27.3
28.5
28.6
27.8
27.8
Currently aged 45, from age 60
Males
27.3
27.3
27.0
26.8
27.3
26.8
26.6
27.4
26.6
26.8
Females
29.0
30.2
29.4
28.8
29.3
28.5
29.6
29.8
28.7
28.9
Key plan details for the two largest pension plans1
ICI Pension Fund, UK
Akzo Nobel (CPS) Pension Scheme, UK
Type of plan
Defined benefit, based upon years of service and final salary
Defined benefit, based upon years of service and final salary
Benefits
Retirement pension for employee
Dependents\u2019 pensions on death of employee/pensioner
Options for ill health early retirement
Retirement pension for employee
Dependents\u2019 pensions on death of employee/pensioner
Options for ill health early retirement
Pension increases (main benefit section)
Annually linked to UK RPI with a maximum of 5%
Annually linked to UK CPI with a maximum of 5%
Plan structure
Plans are set up under a trust and are tax approved
Plans are set up under a trust and are tax approved
Governance
Trustee directors:
Three\u00a0 member-nominated
Four appointed with the agreement of Law Debenture
One independent (Law Debenture)
Trustee directors:
Three member-nominated
Two company-nominated
One independent (Law Debenture)
Regulatory framework
The plans are tax approved and assets are held in trust for the benefit of participants. The trustees have a legal duty to manage the trust in the best
interests of participants. Investment strategy is controlled by the trustees in consultation with the company
Funding basis
A plan specific basis must be agreed with each trustee board in accordance with UK regulations. The basis is not the same as the IFRS calculation as it
uses more prudent assumptions about life expectancy and the discount rates reflect prudent estimates of the expected return on assets actually held,
thus the trustees\u2019 investment strategies will impact the discounted value of liabilities
Frequency of funding reviews
Normally every three years
Normally every three years
Latest completed valuation
March 31, 2023
March 31, 2023
Funding surplus/deficit at latest completed valuation1,2
\u00a349 million (\u20ac56 million) surplus
\u00a3190 million (\u20ac219 million) surplus
Recovery plan
As there were sufficient assets to cover the Fund's technical provisions, a
recovery plan is not required
As there were sufficient assets to cover the Fund's technical provisions, a
recovery plan is not required
Next funding review
March 31, 2026 (due to be completed before June 30, 2027)
March 31, 2026 (due to be completed before June 30, 2027)
Asset allocation at March 31, 2023
Matching:
Return seeking:
100%
0%
Buy-in annuity contracts cover 99% of pensioner liabilities and 88% of total
liabilities
86%
14%
Buy-in annuity contract covers 39% of pensioner liabilities and 28% of total
liabilities. The longevity hedge contract covers 45% of pensioner liabilities
and 33% of total liabilities
Membership at March 31, 2023
Active members
65
238
Deferred members
4,877
5,056
Pensioners, spouses and dependants
33,440
16,110
Total
38,382
21,404
1 Amounts in euro are a convenience translation using the December 31, 2023, exchange rate.
2 Based on local valuation regulations.
Note 19: Other provisions and contingent liabilities
General
Provisions are recognized for legal and constructive obligations, when an outflow of
economic benefits for settlement is probable and the amount can be reliably estimated. It
should be understood that, in light of possible future developments, such as: (a) potential
additional lawsuits; (b) possible future settlements; and (c) rulings or judgments in pending
lawsuits, certain cases may result in additional liabilities and related costs. At this point in
time, we cannot estimate any additional amount of loss or range of loss in excess of the
recorded amounts with sufficient certainty to allow such amount or range of amounts to be
meaningful. While the outcome of said cases, claims and disputes cannot be predicted with
certainty, we believe, based upon legal advice and information received, that the final
outcome will not materially affect our consolidated financial position but could be material to
our results of operations or cash flows in any one accounting period.
Movements in other provisions
in \u20ac millions
Restructuring
of activities
Environmental
costs
Liabilities
to (former)\u00a0
employees
Sundry
Total
Balance at January 1, 2023
42
51
107
93
293
Additions made during the year
55
11
28
48
142
Utilization
(55)
(18)
(21)
(48)
(142)
Amounts reversed during the year
(6)
\u2014
\u2014
(9)
(15)
Unwind of discount
\u2014
(2)
3
\u2014
1
Acquisitions
\u2014
1
\u2014
1
2
Changes in exchange rates
\u2014
(1)
\u2014
\u2014
(1)
Balance at December 31, 2023
36
42
117
85
280
Non-current portion of provisions
1
30
88
42
161
Current portion of provisions
35
12
29
43
119
Balance at December 31, 2023
36
42
117
85
280
Provisions for restructuring of activities
Provisions for restructuring of activities comprise of accruals for certain employee benefits
and for costs which are directly associated with plans to exit or cease specific activities and
closing down of facilities. For all restructuring provisions, a detailed formal plan exists and
the implementation of the plan has started or the plan has been announced before the
balance sheet date. Most restructuring plans are expected to be completed within one year
from the balance sheet date.
Environmental liabilities
We are confronted with costs arising out of environmental laws and regulations, which
include obligations to eliminate or limit the effects on the environment of the disposal or
release of certain wastes or substances at various sites. Proceedings involving
environmental matters, such as the alleged discharge of chemicals or waste materials into
the air, water, or soil, are pending against us in various countries. In some cases, this
concerns sites divested in prior years or derelict sites belonging to companies acquired in
the past. The majority of the cash outflows relating to the environmental liabilities is
expected to be within one to five years, whilst some one-third is projected to be spent after
ten years. The provision has been discounted using an average pre-tax discount rate of
3.7% (2022: 3.8%).
Estimating the impact of environmental liabilities often is complex and requires significant
judgement. It requires the assessment of many (often interconnected) elements, which
contain varying levels of uncertainty. Environmental liabilities can change substantially,
among others due to the emergence of additional information on the nature or extent of the
contamination, the geological circumstances, changes in (the interpretation and
enforcement of) environmental regulations, new and evolving analytical and remediation
techniques, success or lack of success of currently anticipated clean-up methods, actions
by governmental agencies or private parties, success in allocating liability to other
potentially responsible parties, the financial viability of other potentially responsible parties
and third-party indemnitors, and/or other factors.
Especially for some sites for which we are faced with relatively new legislation, which are in
the early stages of discussions with regulators, and/or where there is limited information
available from earlier experience, there may be considerable variability between the clean-
up activities that are currently being undertaken or planned and the ultimate actions that
could be required. For such sites, the costs for the earlier years might be rather reliably
estimable, whilst for later years it is much more difficult, if possible at all, to estimate the
cost of environmental compliance and remediation. If the level of uncertainty is such that no
reliable estimate can be made for the longer-term costs, no provision for such costs is
recorded. While it is not feasible to predict the outcome of all pending environmental
exposures, it is reasonably possible that there will be a need for future (changes to)
provisions for environmental costs which, in management\u2019s opinion, based on information
currently available, would not have a material effect on the company\u2019s financial position but
could be material to the company\u2019s results of operations in any one accounting period.
Liabilities to (former) employees
Liabilities to (former) employees consist of employer liability plans, jubilee plans and other
long-term compensation plans. The majority of the cash outflows related to liabilities to
(former) employees is expected to be after five years. In calculating the liabilities to (former)
employees, a pre-tax discount rate of on average 4.3% (2022: 5.0%) has been used.
Sundry provisions
Sundry provisions relate to a variety of provisions, including provisions for (customer)
claims, sales returns, guarantees and other operational provisions. The majority of the cash
outflows related to sundry provisions is expected to be within one to five years. In
calculating the sundry provisions, a pre-tax discount rate of on average 3.7% (2022: 5.3%)
has been used.
Contingent liabilities
A number of claims against AkzoNobel are pending, many of which are contested. This\u00a0
includes those where Akzo Nobel N.V. and two of its subsidiaries are currently defending
claims brought by INPEX Operations Australia Pty Ltd and JKC Australia LNG Pty Ltd
relating to the Ichthys Onshore Project in Darwin, Western Australia. A trial has been listed
in the Federal Court of Australia, commencing June\u00a017, 2024. The claims are contested
and AkzoNobel denies liability in respect of both of these claims.\u00a0
We are also involved in legal disputes and disputes with tax authorities in several
jurisdictions. Those disputes include situations in which AkzoNobel has provided various
indemnities and guarantees in respect of past divestments to the relevant purchasers and
their permitted assigns (if applicable), which in general are capped in time and/or amount (in
proportion to the value received). The provided guarantees and indemnities have varying
maturity periods. AkzoNobel has received various claims under such indemnities and
guarantees. In some instances, AkzoNobel has been named as a direct defendant despite
the divestments.
Akzo Nobel N.V. has withdrawn its declarations of joint and several liability under Article 403
of Book 2 of the Dutch Civil Code for certain Dutch former Specialty Chemicals subsidiaries
divested as per October 1, 2018, and is following the procedures to terminate its residual
liability under those declarations under Article 404 of Book 2 of the Dutch Civil Code. One
objection against the termination of residual liability is still pending and AkzoNobel, Nouryon
and Nobian continue to cooperate to get this resolved.
Current portion of provisions
The current portion of post-retirement benefit provisions (\u20ac45 million) and the current
portion of other provisions (\u20ac119 million) add up to \u20ac164 million (2022: \u20ac166 million), as
reflected in the balance sheet.
Discount rates
The discount rates used in calculating the provisions recognized at December 31, 2023,
are mentioned in the paragraphs on provisions for environmental costs, liabilities to (former)
employees and sundry provisions. Changes in discount rates will affect our consolidated
financial position. A sensitivity test showed that a one percentage point increase or
decrease of discount rates will have an impact down or up, respectively, of \u20ac6 million on
the provisions recognized at December 31, 2023.
Note 20: Net debt
Net debt
in \u20ac millions
Long-term
borrowings
Short-term
borrowings
Short-term
investments
Cash and cash
equivalents
Net debt
Net debt at January 1, 2022
1,994
1,556
(58)
(1,152)
2,340
Net cash from operating activities
\u2014
\u2014
\u2014
(263)
(263)
Acquisitions
71
2
\u2014
588
661
Investments in short-term investments
\u2014
\u2014
(1,361)
1,361
\u2014
Repayments of short-term investments
\u2014
\u2014
1,084
(1,084)
\u2014
Net cash from other investing activities
\u2014
\u2014
\u2014
230
230
Unwind of discount and amortized cost
9
5
\u2014
\u2014
14
Proceeds from borrowings
1,359
8,152
\u2014
(9,511)
\u2014
Borrowings repaid
\u2014
(7,322)
\u2014
7,322
\u2014
New/modification/disposal of lease contracts
79
\u2014
\u2014
\u2014
79
Transfers from long-term to short-term
(139)
139
\u2014
\u2014
\u2014
Movement bank overdrafts and short-term bank loans
\u2014
16
\u2014
(16)
\u2014
Dividends
\u2014
\u2014
\u2014
379
379
Share buyback
\u2014
\u2014
\u2014
669
669
Net cash from discontinued operations
\u2014
\u2014
\u2014
9
9
Changes in exchange rates
(41)
(5)
(1)
18
(29)
Net debt at December 31, 2022
3,332
2,543
(336)
(1,450)
4,089
Net debt at January 1, 2023
3,332
2,543
(336)
(1,450)
4,089
Net cash from operating activities
\u2014
\u2014
\u2014
(1,126)
(1,126)
Acquisitions
\u2014
\u2014
\u2014
114
114
Investments in short-term investments
\u2014
\u2014
(64)
64
\u2014
Repayments of short-term investments
\u2014
\u2014
142
(142)
\u2014
Net cash from other investing activities
\u2014
\u2014
\u2014
108
108
Net gain/loss from changes in fair value
\u2014
\u2014
(7)
\u2014
(7)
Unwind of discount and amortized cost
10
2
\u2014
\u2014
12
Proceeds from borrowings
499
5,337
\u2014
(5,836)
\u2014
Borrowings repaid
\u2014
(6,295)
\u2014
6,295
\u2014
New/modification/disposal of lease contracts
96
\u2014
\u2014
\u2014
96
Transfers from long-term to short-term
(793)
793
\u2014
\u2014
\u2014
Movement bank overdrafts and short-term bank loans
\u2014
18
\u2014
(18)
\u2014
Dividends
\u2014
\u2014
\u2014
368
368
Net cash from discontinued operations
\u2014
\u2014
\u2014
6
6
Changes in exchange rates
21
\u2014
\u2014
104
125
Net debt at December 31, 2023
3,165
2,398
(265)
(1,513)
3,785
Analysis of net debt by category
in \u20ac millions, at December 31
2022
2023
Bonds issued
2,934
2,933
Lease liabilities
198
194
Other long-term borrowings
200
38
Long-term borrowings
3,332
3,165
Current portion of long-term borrowings
2
671
Current portion of lease liabilities
86
89
Debt to credit institutions
2,450
1,635
Other short-term borrowings
5
3
Short-term borrowings
2,543
2,398
Total borrowings
5,875
5,563
Short-term investments
(336)
(265)
Cash and cash equivalents
(1,450)
(1,513)
Net debt
4,089
3,785
AkzoNobel\u2019s net debt is mainly denominated in euro.
Multi-currency revolving credit facility
We have a multi-currency revolving credit facility of \u20ac1.3 billion which runs until 2027. This
facility does not contain financial covenants or acceleration provisions that are based on
adverse changes in ratings or material adverse change. At year-end 2023 and 2022, this
facility has not been drawn.
Long-term borrowings
At year-end 2023, bonds issued amounted to \u20ac2,933 million (2022: \u20ac2,934 million); a
specification is included in the table below.
Bonds issued
in \u20ac millions, at December 31
2022
2023
1 3/4% 2014/24 (\u20ac500 million)
499
\u2014
1 1/8% 2016/26 (\u20ac500 million)
498
499
1 1/2% 2022/28 (\u20ac600 million)
597
598
1 5/8% 2020/30 (\u20ac750 million)
745
745
2% 2022/32 (\u20ac600 million)
595
595
4% 2023/33 (\u20ac500 million)
\u2014
496
Total
2,934
2,933
In May 2023, a bond was issued with a nominal value of \u20ac500 million, with a coupon of 4%,
maturing in 2033.
For details on the exposure to interest rate and foreign currency risk, refer to Note 26
Financial risk management.
The average effective interest rate of the bonds included in long-term borrowings at year-
end 2023 was 2.0% (year-end 2022: 1.6%).
Aggregated maturities of long-term borrowings
in \u20ac millions
2025-2028
After 2028
Bonds issued
1,097
1,836
Lease liabilities
158
36
Other long-term borrowings
15
23
Total
1,270
1,895
The blended incremental borrowing rate applied to the lease liabilities at year-end 2023 was
2.4% (2022: 1.9%).
At year-end 2023 and 2022, none of the borrowings was secured by collateral.
Short-term borrowings
The current portion of long-term borrowings increased mainly due to maturing of a \u20ac500
million bond and other loans in 2024.
At year-end 2023, our debt to credit institutions amounted to \u20ac1,635 million (2022: \u20ac2,450
million). Debt to credit institutions includes our commercial paper program and short-term
bank loans. We have US dollar and euro commercial paper programs in place, which can
be used to the extent that the equivalent portion of the \u20ac1.3 billion multi-currency revolving
credit facility is not used. We had \u20ac0.8 billion commercial paper outstanding at year-end
2023 (2022: \u20ac1.3 billion) against an average interest rate of 4.1% (2022: 1.6%). At year-end
2023, we had short-term bank loans outstanding of \u20ac0.8 billion (2022: \u20ac1.1 billion) against
a 3-months Euribor plus a mark-up (2022: 3-months Euribor plus a mark-up). None of
these facilities contain financial covenants.
Short-term investments
At year-end 2023, we had short-term investments outstanding for an amount of \u20ac265
million (2022: \u20ac336 million). Short-term investments almost entirely consist of time deposits,
money market funds and other marketable securities with a life time at investment date
longer than three months but shorter than twelve months. For more information on credit
risk management, refer to Note 26 Financial risk management.
Cash and cash equivalents
Cash and cash equivalents are specified in the table below.
Cash and cash equivalents
in \u20ac millions, at December 31
2022
2023
Cash on hand and in banks
922
957
Short-term investments with a life up to three months
528
556
Cash and cash equivalents in the balance sheet
1,450
1,513
Debt to credit institutions
(52)
(60)
Total per statement of cash flows
1,398
1,453
Deposits and money market funds within cash and cash equivalents almost entirely consist
of time deposits immediately convertible into known amounts of cash and with a maturity of
three months or less from the date of purchase, and marketable securities that can be
redeemed immediately when called.
We face cross-border foreign exchange controls and/or other legal restrictions in a few
countries that (currently) limit the ability to make these balances available for general use by
the group. Mainly as a result of these restrictions, at December 31, 2023, an amount of \u20ac57
million in cash and cash equivalents (2022: \u20ac11 million) and \u20ac3 million in short-term
investments (2022: \u20acnil) was restricted. The vast majority of these funds are available for
use in the relevant subsidiaries\u2019 day-to-day business.
Note 21: Trade and other payables
Trade and other payables
in \u20ac millions, at December 31
2022
2023
Trade payables
2,206
2,312
Taxes and social security contributions
184
192
Amounts payable to employees
234
275
Interest
58
86
FX contracts
60
13
Dividends
4
1
Other liabilities
55
54
Total
2,801
2,933
Trade and other payables can be broken down as per the above table. Other liabilities
consist of a large number of individually immaterial items.
Note 22: Cash flow
Operating activities in 2023 resulted in a cash inflow of \u20ac1,126 million (2022: cash inflow of
\u20ac263 million).
Changes in working capital as per consolidated statement of cash flows
in \u20ac millions
2022
2023
Trade and other receivables
(95)
(111)
Inventories
(134)
131
Trade and other payables
(280)
234
Total
(509)
254
The amounts in the table above cannot be reconciled directly to the respective balance
sheet positions. They reflect changes in balance sheet positions only to the extent these
have a cash flow impact, or they reverse the non-cash impact as included in profit for the
period. These amounts exclude non-cash movements such as unwinding of discount,
movements through other comprehensive income, acquisitions and divestments, and
changes in exchange rates.
Note 23: Commitments
Purchase commitments for property, plant and equipment aggregated \u20ac18 million (2022:
\u20ac23 million).
Note 24: Related party transactions
We purchased and sold goods and services to various related parties in which we hold a
50% or less equity interest (associates). Such transactions were conducted at terms
comparable with transactions with third parties.
During 2023, we considered the members of the Executive Committee and the Supervisory
Board to be the key management personnel as defined in IAS 24 \u201cRelated parties\u201d. For
details on their remuneration, as well as on shares held by members of the Supervisory
Board or Board of Management, refer to Note 25 Remuneration of the Supervisory Board
and the Board of Management. In the ordinary course of business, we also have
transactions with various organizations with which certain members of the Supervisory
Board or Executive Committee are associated.
For related party transactions with pension funds, refer to Note 14 Financial non-current
assets and Note 18 Post-retirement benefit provisions.
Note 25: Remuneration of the Supervisory Board and the Board of
Management
Total compensation for key management personnel expensed during the period amounted
to \u20ac19.2 million (2022: \u20ac13.2 million). An amount of \u20ac11.6 million relates to short-term
employee benefits (2022: \u20ac7.4 million); \u20ac1.0 million relates to post contract benefits and
other post contract compensation (2022: \u20ac0.8 million); \u20ac5.4 million relates to share-based
compensation (2022: \u20ac3.0 million); no payments relate to other long-term incentives (2022:
\u20acnil); \u20ac1.2 million payments relate to payments upon termination of employment (2022: \u20ac2.0
million). In 2023, no charges were accrued which relate to taxation on excessive pay
(\u201cBelasting heffing excessieve beloningsbestanddelen\u201d) (2022: \u20ac1.0 million).
This compensation includes total remuneration for the members of the Supervisory Board
of \u20ac0.9 million (2022: \u20ac0.9 million) and for the members of the Board of Management of
\u20ac7.7 million (2022: \u20ac6.9 million). For more details on the remuneration of the individual
members of the Supervisory Board and the Board of Management reference is made to the
Remuneration report.
In accordance with the Articles of Association and good corporate governance practice, the
remuneration of Supervisory Board members is not dependent on the results of the
company. We do not grant share-based compensation to our Supervisory Board members.
An overview of shares held by the Supervisory Board members is provided on this page.\u00a0 \u00a0
A similar overview is provided of the shares held by the Board of Management.
Loans
The company does not grant loans, advance payments or guarantees to members of the
Supervisory Board, members of the Executive Committee or any family members of such
persons.
Shares held by the members of the Supervisory Board
Number of shares at year-end
2022
2023
Ben Noteboom
\u2014
2,300
Byron Grote*
8,061
9,894
Pamela Kirby
\u2014
\u2014
Dick Sluimers
\u2014
\u2014
Patrick Thomas
\u2014
\u2014
Jolanda Poots-Bijl
\u2014
\u2014
Ester Baiget
\u2014
\u2014
Hans Van Bylen
\u2014
\u2014
* In the form of ADRs.
Shares held by the Board of Management
Number of shares at year-end
2022
2023
Greg Poux-Guillaume*
\u2014
1,046
Maarten de Vries
21,766
22,558
* Appointed CEO as per November 1, 2022, replacing Thierry Vanlancker.
Note 26: Financial risk management
Financial Risk Management Framework
Our activities expose us to a variety of financial risks: liquidity risk, credit risk and market
risk (including foreign exchange rate risk, interest rate risk and capital risk). These risks are
inherent to the way we operate as a multinational with a large number of locally operating
subsidiaries. Our overall risk management program seeks to identify, assess, and \u2013 if
necessary and possible \u2013 mitigate these financial risks in order to minimize potential
adverse effects on our financial performance.
Our risk mitigating activities include the use of derivative financial instruments to hedge
certain risk exposures. The Board of Management is ultimately responsible for risk
management. We centrally identify, evaluate and hedge financial risks, and monitor
compliance with the corporate policies approved by the Board of Management, except for
commodity risks, which are subject to identification, evaluation, hedging and monitoring in
the businesses. Next to our centralized Treasury organization in Amsterdam, we have
treasury hubs located in Brazil and China that are primarily responsible for regional cash
management and short-term financing. We do not allow extensive treasury operations
directly with external parties at subsidiary level.
Liquidity risk management
The primary objective of liquidity management is to provide for sufficient cash and cash
equivalents at all times and any place in the world to enable us to meet our payment
obligations. We aim for a well-spread maturity schedule of our long-term borrowings and a
strong liquidity position. At year-end 2023, we had \u20ac1.5 billion available as cash and cash
equivalents (2022: \u20ac1.2 billion) and \u20ac265 million available as short-term investments (2022:
\u20ac58 million), refer to Note 20 Net debt.
In addition, we have a multi-currency revolving credit facility of \u20ac1.3 billion which runs until
2027. This facility does not contain financial covenants or acceleration provisions that are
based on adverse changes in ratings or on other material adverse changes. At year-end
2023 and 2022, this facility had not been drawn. We have US dollar and euro commercial
paper programs in place, which can be used to the extent that the equivalent portion of the
\u20ac1.3 billion multi-currency revolving credit facility is not used. We had \u20ac0.8 billion
commercial paper outstanding at year end 2023 (2022: \u20ac1.3 billion) against an average
interest rate of 4.1% (2022: average interest rate of 1.6%). Further, at year-end 2023, we
had \u20ac0.8 billion short-term bank loans outstanding (2022: \u20ac1.1 billion) against 3-months
Maturity of liabilities and cash outflows
in \u20ac millions
Less than
1 year
Between 1
and 5 years
Over 5
years
At December 31, 2022
Borrowings
2,457
1,172
1,962
Interest on borrowings
118
197
84
Lease liabilities
86
153
45
Trade and other payables
2,741
\u2014
\u2014
FX contracts (hedges)
Outflow
3,097
\u2014
\u2014
Inflow
(3,055)
\u2014
\u2014
Total
5,444
1,522
2,091
At December 31, 2023
Borrowings
2,309
1,112
1,859
Interest on borrowings
154
249
182
Lease liabilities
89
158
36
Trade and other payables
2,920
\u2014
\u2014
FX contracts (hedges)
Outflow
2,451
\u2014
\u2014
Inflow
(2,450)
\u2014
\u2014
Total
5,473
1,519
2,077
Euribor plus a mark-up (2022: 3-months Euribor plus a mark-up). None of these facilities
contain financial covenants. The table on maturity of liabilities and cash outflows in this Note
shows our cash outflows per maturity group. The amounts disclosed in the table are the
contractual undiscounted cash flows.
Credit risk management
Credit risk arises from financial assets such as cash and cash equivalents, deposits with
financial institutions, money market funds, trade receivables and derivative financial
instruments with a positive fair value. We have a credit risk management policy in place to
limit credit losses due to non-performance of financial counterparties and customers. We
monitor our exposure to credit risk on an ongoing basis at various levels. We only deal with
financial counterparties that have a sufficiently high credit rating. Generally, we do not
require collateral in respect of financial assets. Investments in cash and cash equivalents,
short-term investments and transactions involving derivative financial instruments are
entered into with counterparties that have sound credit ratings and a good reputation.
Derivative transactions are concluded mostly with parties with whom we have contractual
netting agreements and ISDA agreements in place. We set limits per counterparty for the
different types of financial instruments we use. We closely monitor the acceptable financial
counterparty credit ratings and credit limits and revise where required in line with the market
circumstances. We do not expect non-performance by the counterparties for these
financial instruments. Due to our geographical spread and the diversity of our customers,
we were not subject to any significant concentration of credit risks at balance sheet date.
The credit risk from trade receivables is measured and analyzed by dedicated teams in the
businesses, mainly by means of ageing analysis, refer to Note 16 Trade and other
receivables. Additionally, trade receivables and financial assets measured at amortized cost
are subject to the expected credit loss impairment model either using the general or the
simplified approach. For more information on the applied impairment approaches per
financial asset type, refer to Note 1 Summary of material accounting policies.
The maximum exposure to credit risk is represented by the carrying value of financial assets
in the balance sheet.
At year-end 2023, the credit risk on consolidated level was \u20ac4.6 billion (2022: \u20ac4.6 billion)
for cash and cash equivalents, short-term investments, loans and trade and other
receivables. Our credit risk is well spread among both global and local counterparties. Our
largest counterparty risk amounted to \u20ac332 million at year-end 2023 (2022: \u20ac280 million).
Foreign exchange risk management
Trade and financing transactions
We operate in a large number of countries, where we have clients and suppliers, many of
whom are outside of the local functional currency environment. This creates currency
exposures which are partly netted out on group level. The purpose of our foreign currency
hedging activities is to protect us from the risk that the functional currency net cash flows
resulting from trade or financing transactions are adversely affected by changes in
exchange rates. Our policy is to hedge our transactional foreign exchange rate exposures
above predefined thresholds from recognized assets and liabilities. Hedge accounting is
generally not applied for foreign currency hedging activities, except for certain specific
forecasted transactions.
As from July 2022, cash flow hedge accounting was applied on a $450 million hedge for
foreign currency risk exposure related to the intended acquisition of Kansai Paint's African
activities, which continued in 2023. In November 2023, the decision was made not to
proceed with the acquisition. Related to this hedge, a total loss of \u20ac36 million was recorded
in the year in the statement of income under financing expenses, which included a loss of
\u20ac46 million related to the recycling of the amount accumulated in the cash flow hedge
reserve through other comprehensive income.
In general, our forward exchange contracts have a maturity of less than one year. When
necessary, forward exchange contracts are rolled over at maturity. Currency derivatives are
not used for speculative purposes.
Hedged notional amounts at year-end1
Buy
Sell
Buy
Sell
in \u20ac millions
2022
2022
2023
2023
US dollar
784
692
270
658
Pound sterling
649
10
794
\u2014
Chinese yuan
110
157
46
58
Brazilian real
30
64
19
57
Thai baht
\u2014
117
12
114
Other2
248
641
230
543
Total
1,821
1,681
1,371
1,430
1 No hedge accounting applied on these hedged notional amounts in 2023.
2 No individually significant position is included in 'Other', the amounts per currency are highly disaggregated.
Investments in foreign subsidiaries and associates
During 2023 and 2022, net investment hedge accounting was applied on hedges of certain
net investments in foreign operations, which were partly hedged. The main net investments
included were related to Chinese yuan, Brazilian real, Vietnamese dong and Indian rupee\u00a0
(2022: Brazilian real, Chinese yuan, Indonesian rupiah and Indian rupee), which were
hedged with forward exchange contracts for the same currencies. The spot results related
to these hedges were recognized in other comprehensive income and accumulated in the
cumulative translation reserves. In addition, a net investment in Colombian peso was
hedged with a COP 330 billion bank loan. The spot result related to this hedge was
recognized in other comprehensive income and accumulated in the cumulative translation
reserves. At year-end 2023, the hedge of the net investment in Colombian peso was
outstanding. During 2023 and 2022, the hedges of net investments were fully effective.
Interest rate risk management
We are partly financed with debt in order to obtain more efficient leverage. Interest rate risk
is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. Fixed rate debt results in fair value interest rate
risk. Floating rate debt results in cash flow interest rate risk. At the end of 2023, 62% of our
total debt consisted of fixed rate bonds (2022: 50%), 14% consisted of commercial paper
(2022: 22%) and 15% of short-term loans (2022: 19%). The fixed/floating ratio of our
outstanding bonds was 100% fixed (2022: 100% fixed). The weighted average maturity of
our outstanding bonds at year-end is 5.4 years (2022: 5.7 years). The remainder of our total
debt consisted of leases and other debt. For more information about our debt, refer to Note
20 Net debt. During 2023 and 2022, we have not used any interest rate derivatives.
Capital risk management
Our objectives when managing capital are to safeguard our ability to satisfy our capital
providers and to maintain a capital structure that optimizes our cost of capital. For this we
maintain an adequate financial strategy, with the objective to retain a strong investment
grade credit rating as assigned by the rating agencies Moody\u2019s and Standard & Poor\u2019s. The
capital structure can be altered, among others, by adjusting the amounts of dividends paid
to shareholders, return of capital to capital providers, or issuance of new debt or shares. In
May 2023, a bond was issued with a nominal value of \u20ac500 million, with a coupon of 4%,
maturing in 2033.
Consistent with other companies in the industry, we monitor capital headroom based on
the leverage ratio net debt/EBITDA for which we have set a target range of around 2. The
ratio was 2.7 at December 31, 2023 (December 31, 2022: 3.8). EBITDA amounted to
\u20ac1,386 million for 2023 (2022: \u20ac1,076 million). Net debt amounted to \u20ac3,785 million at year
end 2023 (year end 2022: \u20ac4,089 million).
Fair value of financial instruments and IFRS 9 categories
In the table \u201cFair value per financial instrument category\u201d on the next page insight is
provided in the recognition of the respective financial instruments per IFRS 9 category. The
total carrying value is based on the accounting principles as outlined in Note 1 Summary of
material accounting policies. Financial instruments are recognized at fair value and
subsequently recognized either at fair value or at amortized cost, using the effective interest
method. The financial instruments accounted for at fair value through profit or loss are
derivative financial instruments and securities included in financial non-current assets and
other current liabilities, cash and cash equivalents and short-term investments. The
remaining financial instruments are accounted for at amortized cost.
Fair value per financial instrument category
Carrying value per IFRS9 category
in \u20ac millions
Carrying
amount
Out of scope
of IFRS71
Measured at
amortized
cost
Measured at
fair value
through profit
or loss
Total carrying
value
Fair value of items
measured at
amortized cost
2022 year-end
Financial non-current assets2
1,475
1,158
308
9
317
311
Trade and other receivables3
2,447
214
2,215
18
2,233
2,215
Short-term investments
336
\u2014
\u2014
336
336
\u2014
Cash and cash equivalents
1,450
\u2014
\u2014
1,450
1,450
\u2014
Total financial assets
5,708
1,372
2,523
1,813
4,336
2,526
Long-term borrowings
3,332
\u2014
3,332
\u2014
3,332
3,031
Short-term borrowings
2,543
\u2014
2,543
\u2014
2,543
2,543
Trade and other payables4
2,801
418
2,323
60
2,383
2,323
Total financial liabilities
8,676
418
8,198
60
8,258
7,897
2023 year-end
Financial non-current assets2
1,409
1,136
264
9
273
271
Trade and other receivables3
2,483
193
2,276
14
2,290
2,276
Short-term investments
265
\u2014
\u2014
265
265
\u2014
Cash and cash equivalents
1,513
\u2014
\u2014
1,513
1,513
\u2014
Total financial assets
5,670
1,329
2,540
1,801
4,341
2,547
Long-term borrowings
3,165
\u2014
3,165
\u2014
3,165
3,015
Short-term borrowings
2,398
\u2014
2,398
\u2014
2,398
2,390
Trade and other payables4
2,933
467
2,453
13
2,466
2,453
Total financial liabilities
8,496
467
8,016
13
8,029
7,858
1 Mainly includes pension assets (refer to Note 14), (non) income tax related receivables (refer to Note 16), payables to employees and (non) income taxes payables (refer to Note 21).
2 \u20ac264 million (2022: \u20ac308 million) mainly relates to loans and receivables (refer to Note 14), \u20ac9 million (2022: \u20ac9 million) relates to other than financial instruments (refer to Note 14).
3 \u20ac2,276 million (2022: \u20ac2,215 million) relates to the remainder of trade and other receivables (refer to Note 16) and \u20ac14 million (2022: \u20ac18 million) relates to FX contracts.
4 \u20ac2,453 million (2022: \u20ac2,323 million) relates to the remainder of trade and other payables (refer to Note 21) and \u20ac13 million (2022: \u20ac60 million) relates to FX contracts.
The following valuation methods for financial instruments carried at fair value through profit
or loss are distinguished:
\u2022 Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
\u2022 Level 2: inputs other than quoted prices included within level 1 that are observable for
the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)
\u2022 Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable)
For the purpose of determining the fair value per financial instrument category, shown in the
column 'fair value', the following valuation methods were used:
A level 1 valuation method was used to estimate the fair value of the bonds issued included
in our long-term and short-term borrowings. The estimate is based on the quoted market
prices for the same or similar issues or on the current rates offered to us for debt with
similar maturities.
A level 2 valuation method was used to determine the fair value of marketable securities
included in cash and cash equivalents and short-term investments by obtaining the market
price at reporting date. The fair value of foreign currency contracts and swap contracts was
determined by level 2 valuation techniques using market observable input (such as foreign
currency interest rates based on Reuters) and by obtaining quotes from dealers and
brokers. A level 2 valuation method was used to determine the fair value of time deposits
included in cash and cash equivalents and short-term investments using the market interest
rate. The carrying amounts of cash and banks, trade receivables less allowance for
impairment, other short-term borrowings and other current liabilities approximate fair value
due to the short maturity period of those instruments and were determined using level 2 fair
value methods.
A level 3 fair valuation method (discounted cash flow using applicable market interest rates
at balance sheet date) was used for the subordinated loan granted to the Pension Fund
APF in the Netherlands, resulting in a fair value of \u20ac98 million.
Sensitivities on financial instruments at year-end 2023
Sensitivity object
Sensitivity
Hypothetical impact
Foreign currencies:
We perform foreign currency sensitivity analysis by applying an adjustment
to the spot rates prevailing at year-end. This adjustment is based on
observed changes in the exchange rate in the past and management's
expectation for reasonably possible1 future movements over a longer term
from a sensitivity test perspective. We then apply the expected possible
volatility to revalue all monetary assets and liabilities (including derivative
financial instruments) in a currency other than the functional currency of the
subsidiary in the balance sheet at year-end. These effects are of a fairly
linear nature.
A 10% (2022: 10%) strengthening of the euro versus US dollar
A 10% (2022: 10%) strengthening of the euro versus the pound sterling
A 10% (2022: 10%) strengthening of the euro versus Chinese yuan
Profit \u20ac22 million (2022: profit \u20ac9 million). Other comprehensive income \u20acnil\u00a0
(2022: loss \u20ac41 million)
Loss \u20ac5 million (2022: profit \u20ac1 million)
Profit \u20ac1 million (2022: profit \u20ac1 million)
Interest rate:
We perform interest rate sensitivity analysis by applying an adjustment to
the interest rate curve prevailing at year-end. This adjustment is based on
observed changes in the interest rate in the past and management's
expectation for reasonably possible1 future movements over a longer term
from a sensitivity test perspective. We then apply the expected possible
volatility to revalue all interest bearing assets and liabilities. These effects are
of a fairly linear nature.
A 100 basis points (2022: 100 basis points) increase of EUR interest rates
A 100 basis points (2022: 100 basis points) increase of USD interest rates
A 100 basis points (2022: 100 basis points) increase of GBP interest rates
Loss \u20ac15 million (2022: loss \u20ac16 million)
Profit \u20ac1 million (2022: profit \u20ac1 million)
Profit \u20ac1 million (2022: profit \u20ac1 million)
1 This analysis does not indicate any probability of such changes occurring; nor does it preclude larger changes in any given period or longer term.
Master netting agreements
We enter into derivative transactions under International Swaps and Derivatives Association
(ISDA) master netting agreements. In general, under such agreements the amounts owed
by each counterparty on a single day in respect of transactions outstanding in the same
currency may be aggregated into a single net amount that is payable by one party to the
other. In certain circumstances \u2013 e.g. when a credit event such as a default occurs \u2013 all
outstanding transactions under the agreement may be terminated, the termination value is
assessed and a net amount is payable in settlement of the transactions. We have evaluated
the potential effect of netting agreements, including the effect of rights of set-off and
concluded the impact is immaterial. We did not offset any amounts regarding derivative
transactions.
Note 27: Subsequent events
No significant subsequent events have been identified.
", "dimensions": { "concept": "ifrs-full:DisclosureOfNotesAndOtherExplanatoryInformationExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-356": { "value": "
General information
Akzo Nobel N.V. is a public limited liability company headquartered in the Netherlands. The
address of our registered office is Christian Neefestraat 2, Amsterdam; the Chamber of
Commerce number is 09007809. We have attached a list of subsidiaries and associated
companies, drawn up in conformity with Articles 379 and 414 of Book 2 of the Dutch Civil
Code, as an appendix to our annual report. The principal activity of AkzoNobel is the
production and selling of paints and coatings.
We have prepared the Consolidated financial statements of Akzo Nobel N.V. in accordance
with International Financial Reporting Standards as adopted by the European Union (IFRS).
The Consolidated financial statements also comply with the financial reporting requirements
included in Title 9 of Book 2 of the Dutch Civil Code.
The management report within the meaning of Article 391 of Book 2 of the Dutch Civil
Code consists of the following parts of the annual report:
\u2022 2023 results at a glance
\u2022 CEO statement
\u2022 How we created value
\u2022 Strategy and operations
\u2022 Sustainability statements
\u2022 Leadership and governance: Our Board of Management and Executive Committee
\u2022 Leadership and governance: Statement of the Board of Management
\u2022 Leadership and governance: Corporate governance statement
\u2022 Leadership and governance: Risk management
\u2022 Leadership and governance: Integrity and compliance management
\u2022 Leadership and governance: Remuneration report
\u2022 Financial information: Note 5 Operating income
\u2022 Financial information: Note 26 Financial risk management
\u2022 Appendix: EU taxonomy
On February 26, 2024, the Board of Management authorized the financial statements for
issue. The financial statements as presented in this report are subject to adoption by the
Annual General Meeting of shareholders on April 25, 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-357": { "value": "Akzo Nobel N.V.", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-358": { "value": "Akzo Nobel N.V.", "dimensions": { "concept": "ifrs-full:NameOfUltimateParentOfGroup", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-359": { "value": "public limited liability company", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-360": { "value": "Netherlands", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-361": { "value": "Netherlands", "dimensions": { "concept": "ifrs-full:PrincipalPlaceOfBusiness", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-362": { "value": "Netherlands", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-363": { "value": "Christian Neefestraat 2, Amsterdam", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-364": { "value": "The principal activity of AkzoNobel is the production and selling of paints and coatings", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-365": { "value": "
We have prepared the Consolidated financial statements of Akzo Nobel N.V. in accordance
with International Financial Reporting Standards as adopted by the European Union (IFRS).
The Consolidated financial statements also comply with the financial reporting requirements
included in Title 9 of Book 2 of the Dutch Civil Code.
Going concern
The Consolidated financial statements have been prepared on a going concern basis,
resulting from management's assessment of the ability of AkzoNobel to continue its
operations for the foreseeable future.
Management has assessed the ability of AkzoNobel to continue as a going concern based
on an evaluation of, among others, the financial position, expected future cash flows and
market developments.
At December 31, 2023, cash and cash equivalents were \u20ac1.5 billion. We also assessed the
ability of the company to obtain financing, taking into account the company's external credit
rating, which we are committed to retain at strong investment grade.
Expected future cash flows are based on the latest forecasts. These forecasts take into
account internal and external developments relevant in the assessment of the ability of
AkzoNobel to continue as a going concern, including but not limited to market
developments, developments in the macro-economic environment (e.g. inflation, see
disclosure on inflation in this Note) and climate-related developments (see disclosure on
climate change in this Note).
Management's assessment did not lead to uncertainties in relation to AkzoNobel's ability to
continue as a going concern.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-366": { "value": "
We have prepared the Consolidated financial statements of Akzo Nobel N.V. in accordance
with International Financial Reporting Standards as adopted by the European Union (IFRS).", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-367": { "value": "Akzo Nobel N.V.", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-368": { "value": "
On February 26, 2024, the Board of Management authorized the financial statements for
issue. The financial statements as presented in this report are subject to adoption by the
Annual General Meeting of shareholders on April 25, 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-369": { "value": "
Going concern
The Consolidated financial statements have been prepared on a going concern basis,
resulting from management's assessment of the ability of AkzoNobel to continue its
operations for the foreseeable future.
Management has assessed the ability of AkzoNobel to continue as a going concern based
on an evaluation of, among others, the financial position, expected future cash flows and
market developments.
At December 31, 2023, cash and cash equivalents were \u20ac1.5 billion. We also assessed the
ability of the company to obtain financing, taking into account the company's external credit
rating, which we are committed to retain at strong investment grade.
Expected future cash flows are based on the latest forecasts. These forecasts take into
account internal and external developments relevant in the assessment of the ability of
AkzoNobel to continue as a going concern, including but not limited to market
developments, developments in the macro-economic environment (e.g. inflation, see
disclosure on inflation in this Note) and climate-related developments (see disclosure on
climate change in this Note).
Management's assessment did not lead to uncertainties in relation to AkzoNobel's ability to
continue as a going concern.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-370": { "value": "
Consolidation
The Consolidated financial statements include the accounts of Akzo Nobel N.V. and its
subsidiaries. Subsidiaries are companies over which Akzo Nobel N.V. has control, because
it is exposed, or has rights, to variable returns from its involvement with the subsidiary and it
has the ability to affect returns through its power over the subsidiary. Non-controlling
interests in equity and in results are presented separately.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-371": { "value": "
Changes in accounting policies and first-time application
Accounting pronouncements with potential relevance for AkzoNobel, which became
effective for 2023, include IFRS 17 \u201cInsurance contracts\u201d and amendments to this
standard, amendments to IAS\u00a08 \u201cDefinition of accounting estimates\u201d, amendments to IAS 1
and IFRS Practice Statement 2 \u201cDisclosure of Accounting Policies\u201d, amendments to IAS 12
\u201cDeferred Tax related to Assets and Liabilities arising from a Single Transaction\u201d and
\u201cInternational Tax Reform - Pillar Two Model Rules\u201d. These changes in accounting policies
had no material impact on our Consolidated financial statements. With regards to the
exemption for recognizing and disclosing information about deferred tax assets and
liabilities related to Pillar Two income taxes, as per the amendments to IAS 12, reference is
made to Note 8 Income tax.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-372": { "value": "
Discontinued operations/Held for sale
A discontinued operation is a component of our business that represents a separate major
line of business or geographical area of operations that has been disposed of, or is held for
sale, or is a subsidiary acquired exclusively with a view to resale. Assets and liabilities are
classified as held for sale if it is highly probable that the carrying value will be recovered
through a sale transaction within one year, rather than through continuing use. When
reclassifying assets and liabilities as held for sale, we recognize the assets and liabilities at
the lower of their carrying value or fair value less costs to sell. Assets held for sale are not
depreciated and amortized but tested for impairment. In case of discontinued operations,
the comparative figures in the Consolidated statement of income and Consolidated
statement of cash flows are re-presented. The Consolidated balance sheet comparative
figures are not re-presented.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-375": { "value": "
Use of estimates
The preparation of the financial statements in compliance with IFRS requires management
to make judgments, estimates and assumptions that affect amounts reported in the
financial statements. The estimates and assumptions are based on experience and various
other factors that are believed to be reasonable under the circumstances and are used to
judge the carrying values of assets and liabilities that are not readily apparent from other
sources. The estimates and underlying assumptions are reviewed on an ongoing basis. The
most critical accounting policies involving a higher degree of judgment and complexity in
applying principles of valuation and for which changes in the assumptions and estimates
could result in significantly different results than those recorded in the financial statements
are the following:
\u2022 Scope of consolidation, including purchase price allocations for business combinations
(Note 2)
\u2022 Income tax and deferred tax assets, including uncertain tax positions (Note 8)
\u2022 Impairment of intangible assets, property, plant and equipment and right-of-use assets
(Note 10, 11, 12)
\u2022 Post-retirement benefit provisions (Note 18)
\u2022 Provisions and contingent liabilities (Note 19)
", "dimensions": { "concept": "ifrs-full:DisclosureOfAssetsAndLiabilitiesWithSignificantRiskOfMaterialAdjustmentExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-374": { "value": "
Use of estimates
The preparation of the financial statements in compliance with IFRS requires management
to make judgments, estimates and assumptions that affect amounts reported in the
financial statements. The estimates and assumptions are based on experience and various
other factors that are believed to be reasonable under the circumstances and are used to
judge the carrying values of assets and liabilities that are not readily apparent from other
sources. The estimates and underlying assumptions are reviewed on an ongoing basis. The
most critical accounting policies involving a higher degree of judgment and complexity in
applying principles of valuation and for which changes in the assumptions and estimates
could result in significantly different results than those recorded in the financial statements
are the following:
\u2022 Scope of consolidation, including purchase price allocations for business combinations
(Note 2)
\u2022 Income tax and deferred tax assets, including uncertain tax positions (Note 8)
\u2022 Impairment of intangible assets, property, plant and equipment and right-of-use assets
(Note 10, 11, 12)
\u2022 Post-retirement benefit provisions (Note 18)
\u2022 Provisions and contingent liabilities (Note 19)
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-373": { "value": "Use of estimatesThe preparation of the financial statements in compliance with IFRS requires management to make judgments, estimates and assumptions that affect amounts reported in the financial statements. The estimates and assumptions are based on experience and various other factors that are believed to be reasonable under the circumstances and are used to judge the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are reviewed on an ongoing basis. The most critical accounting policies involving a higher degree of judgment and complexity in applying principles of valuation and for which changes in the assumptions and estimates could result in significantly different results than those recorded in the financial statements are the following:\u2022 Scope of consolidation, including purchase price allocations for business combinations (Note 2)\u2022 Income tax and deferred tax assets, including uncertain tax positions (Note 8)\u2022 Impairment of intangible assets, property, plant and equipment and right-of-use assets (Note 10, 11, 12)\u2022 Post-retirement benefit provisions (Note 18)\u2022 Provisions and contingent liabilities (Note 19)", "dimensions": { "concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-377": { "value": "
Business combinations (Note 2)
In business combinations, identifiable assets and liabilities, and contingent liabilities, are
recognized at their fair values at the acquisition date. Determining the fair value requires
significant judgments on future cash flows to be generated.
Goodwill in a business combination represents the excess of the consideration paid over
the net fair value of the acquired identifiable assets, liabilities and contingent liabilities. If the
cost of an acquisition is less than the fair value of the net assets of the subsidiary acquired,
the difference is recognized directly in the statement of income.
The fair value of brands, customer relationships and know-how acquired in a business
combination is estimated using generally accepted valuation methods. These include the
relief-from-royalty method, the incremental cash flow method and the multi-period excess
earnings method.
The fair value of property, plant and equipment acquired in a business combination is
based on estimated market values.
The fair value of inventories acquired in a business combination is determined based on
estimated selling prices in the ordinary course of business, less the estimated costs of
completion and sale and a reasonable profit margin, based on the effort required to
complete and sell the inventories.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-376": { "value": "
Business combinations (Note 2)
In business combinations, identifiable assets and liabilities, and contingent liabilities, are
recognized at their fair values at the acquisition date. Determining the fair value requires
significant judgments on future cash flows to be generated.
Goodwill in a business combination represents the excess of the consideration paid over
the net fair value of the acquired identifiable assets, liabilities and contingent liabilities. If the
cost of an acquisition is less than the fair value of the net assets of the subsidiary acquired,
the difference is recognized directly in the statement of income.
The fair value of brands, customer relationships and know-how acquired in a business
combination is estimated using generally accepted valuation methods. These include the
relief-from-royalty method, the incremental cash flow method and the multi-period excess
earnings method.
The fair value of property, plant and equipment acquired in a business combination is
based on estimated market values.
The fair value of inventories acquired in a business combination is determined based on
estimated selling prices in the ordinary course of business, less the estimated costs of
completion and sale and a reasonable profit margin, based on the effort required to
complete and sell the inventories.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-378": { "value": "
Statement of cash flows
We have used the indirect method to prepare the statement of cash flows. Cash flows in
foreign currencies have been translated at transaction rates. Acquisitions or divestments of
subsidiaries are presented net of cash and cash equivalents acquired or disposed of,
respectively. Cash flows from derivatives are recognized in the statement of cash flows in
the same category as those of the hedged items.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForCashFlowsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-379": { "value": "
Operating segments
We determine and present operating segments based on the information that is provided to
the Executive Committee, our chief operating decision-maker during 2023, to make
decisions about resources to be allocated to the segments and assess their performance.
Segment results reported to the Executive Committee include items directly attributable to
a segment, as well as those items that can be allocated on a reasonable basis.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-381": { "value": "
Foreign currencies
Transactions in foreign currencies are translated into the functional currency using the
foreign exchange rate at transaction date. Monetary assets and liabilities denominated in
foreign currencies are translated into the functional currency using the exchange rates at
the balance sheet date. Resulting foreign currency differences are included in the statement
of income in financing income and expenses. Non-monetary assets and liabilities
denominated in foreign currencies are translated into the functional currency at the
exchange rate at acquisition date.
The assets and liabilities of entities with other functional currencies are translated into euros,
the functional currency of the parent entity, using the exchange rates at the balance sheet
date. The income and expenses of entities with other functional currencies are translated
into the functional currency, using the exchange rates at transaction date.
Foreign exchange rate differences resulting from translation into the functional currency of
investments in subsidiaries and of intercompany loans of a permanent nature with other
functional currencies are recorded as a separate component (cumulative translation
reserve) within other comprehensive income. These cumulative translation adjustments are
reclassified (either fully or partly) to the statement of income upon disposal (either fully or
partly) or liquidation of the foreign subsidiary to which the investment or the intercompany
loan with a permanent nature relates. Foreign currency differences arising on the translation
of a financial liability designated as an effective hedge of a net investment in a foreign
operation are recognized in the cumulative translation reserve (in Other comprehensive
income).
When a subsidiary is operating in a hyperinflationary country, the financial statements of this
entity are restated into the current purchasing power at the end of the reporting period. In
addition, exchange rates at this balance sheet date are used to translate both the balance
sheet and the statement of income into euros. Hyperinflation accounting is applied for
Argentina and T\u00fcrkiye based on the historical cost approach and using the Consumer Price
Index (CPI). CPI rate developments for Argentina and T\u00fcrkiye are included in the table CPI
rates at December 31. For reference, the balance sheet exchange rates for both countries
have also been included.
CPI rates at December 31
Country
2021
2022
2023
Argentina
582
1,135
3,533
T\u00fcrkiye
687
1,128
1,859
Balance sheet exchange rates1 at December 31
Currency
2021
2022
2023
Argentinian peso
116.16
188.62
849.91
Turkish lira
15.00
19.97
32.73
1Foreign currency equivalent of 1 euro
For a consolidated overview of financial impacts from hyperinflation accounting, refer to
Note 7 Financing income and expenses.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-380": { "value": "
Foreign currencies
Transactions in foreign currencies are translated into the functional currency using the
foreign exchange rate at transaction date. Monetary assets and liabilities denominated in
foreign currencies are translated into the functional currency using the exchange rates at
the balance sheet date. Resulting foreign currency differences are included in the statement
of income in financing income and expenses. Non-monetary assets and liabilities
denominated in foreign currencies are translated into the functional currency at the
exchange rate at acquisition date.
The assets and liabilities of entities with other functional currencies are translated into euros,
the functional currency of the parent entity, using the exchange rates at the balance sheet
date. The income and expenses of entities with other functional currencies are translated
into the functional currency, using the exchange rates at transaction date.
Foreign exchange rate differences resulting from translation into the functional currency of
investments in subsidiaries and of intercompany loans of a permanent nature with other
functional currencies are recorded as a separate component (cumulative translation
reserve) within other comprehensive income. These cumulative translation adjustments are
reclassified (either fully or partly) to the statement of income upon disposal (either fully or
partly) or liquidation of the foreign subsidiary to which the investment or the intercompany
loan with a permanent nature relates. Foreign currency differences arising on the translation
of a financial liability designated as an effective hedge of a net investment in a foreign
operation are recognized in the cumulative translation reserve (in Other comprehensive
income).
When a subsidiary is operating in a hyperinflationary country, the financial statements of this
entity are restated into the current purchasing power at the end of the reporting period. In
addition, exchange rates at this balance sheet date are used to translate both the balance
sheet and the statement of income into euros. Hyperinflation accounting is applied for
Argentina and T\u00fcrkiye based on the historical cost approach and using the Consumer Price
Index (CPI). CPI rate developments for Argentina and T\u00fcrkiye are included in the table CPI
rates at December 31. For reference, the balance sheet exchange rates for both countries
have also been included.
CPI rates at December 31
Country
2021
2022
2023
Argentina
582
1,135
3,533
T\u00fcrkiye
687
1,128
1,859
Balance sheet exchange rates1 at December 31
Currency
2021
2022
2023
Argentinian peso
116.16
188.62
849.91
Turkish lira
15.00
19.97
32.73
1Foreign currency equivalent of 1 euro
For a consolidated overview of financial impacts from hyperinflation accounting, refer to
Note 7 Financing income and expenses.
Exchange rates of key currencies
The principal exchange rates against the euro used in preparing the balance sheet and the
statement of income are (table shows foreign currency equivalents of 1 euro):
Currency
Balance sheet
Statement of income
2022
2023
%
2022
2023
%
US dollar
1.07
1.11
3.8
1.05
1.08
2.6
Pound sterling
0.88
0.87
(1.7)
0.85
0.87
2.0
Chinese yuan
7.43
7.86
5.9
7.09
7.67
8.3
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-382": { "value": "
When a subsidiary is operating in a hyperinflationary country, the financial statements of this
entity are restated into the current purchasing power at the end of the reporting period. In
addition, exchange rates at this balance sheet date are used to translate both the balance
sheet and the statement of income into euros. Hyperinflation accounting is applied for
Argentina and T\u00fcrkiye based on the historical cost approach and using the Consumer Price
Index (CPI). CPI rate developments for Argentina and T\u00fcrkiye are included in the table CPI
rates at December 31. For reference, the balance sheet exchange rates for both countries
have also been included.
CPI rates at December 31
Country
2021
2022
2023
Argentina
582
1,135
3,533
T\u00fcrkiye
687
1,128
1,859
Balance sheet exchange rates1 at December 31
Currency
2021
2022
2023
Argentinian peso
116.16
188.62
849.91
Turkish lira
15.00
19.97
32.73
1Foreign currency equivalent of 1 euro
For a consolidated overview of financial impacts from hyperinflation accounting, refer to
Note 7 Financing income and expenses.
Note 7: Financing income and expenses
Financing income and expenses
in \u20ac millions
2022
2023
Interest on net debt
Financing income
19
69
Financing expenses
(106)
(192)
Net interest on net debt
(87)
(123)
Other interest
Financing income related to post- retirement benefits
18
33
Interest on provisions
17
(1)
Exchange rate results
(65)
(128)
Hyperinflation: net gain/(loss) on monetary position
(20)
(46)
Other items
13
(7)
Net other financing credit/(charges)
(37)
(149)
Total financing income and expenses
(124)
(272)
Net financing expenses for the year were \u20ac272 million (2022 : \u20ac124 million). Significant
variances are:
\u2022 Net interest on net debt increased by \u20ac36 million to a \u20ac123 million charge (2022: \u20ac87
million); higher interest rates impacted both financing income and financing expenses
\u2022 Financing income related to post-retirement benefits increased by \u20ac15 million to \u20ac33
million (2022: \u20ac18 million) mainly as a result of higher discount rates. Interest income
from financial assets measured at amortized cost (including the loan to Pension Fund
APF in the Netherlands) amounted to approximately \u20ac5 million in both years. The
remainder was generated by financial assets measured at fair value through profit and
loss
\u2022 Interest income on provisions decreased by \u20ac18 million to negative \u20ac1 million (2022:
\u20ac17 million) due to the impact on discounting from changes in discount rates
\u2022 Exchange rate results were negative \u20ac128 million (2022: negative \u20ac65 million) and
contain \u20ac36 million negative result on cash flow hedging contracts, related to the
previously anticipated acquisition of Kansai Paints Africa (refer to Note 26 Financial risk
management for more details)
\u2022 Hyperinflation: the net loss on monetary position increased by \u20ac26 million to \u20ac46 million
\u2022 Other items decreased by \u20ac20 million, mainly due to \u20ac10 million interest income from
the UK ACT case which was included in 2022 (refer to Note 3 Segment information for
more details)
The average interest rate used for capitalized interest was 2.1% (2022: 1.7%). Capitalized
interest was negligible in both 2023 and 2022. The average interest rate on total debt was
3.2% (2022: 2.1%).
Impact hyperinflation accounting
We have applied IAS 29 \"Financial Reporting in Hyperinflationary Economies\" for T\u00fcrkiye as
from January 1, 2022. For Argentina, hyperinflation accounting was already applied as from
January 1, 2018. In addition, and in line with IAS 21 \"The Effects of Changes in Foreign
Exchange Rates\", end of period rates are used to translate both the balance sheet and the
statement of income into euros.
For T\u00fcrkiye, the revaluation effect on the non-monetary assets at January 1, 2022, was \u20ac16
million positive (after taxes), recorded as a restatement to opening shareholders\u2019 equity. In
addition, the opening balance of intangible assets has been restated by \u20ac1 million (refer to
Note 10 Intangible assets) and the opening balance of property, plant and equipment has
been restated by \u20ac15 million (refer to Note 11 Property, plant and equipment). Refer to
Note 8 Income tax for the related opening balance impact on deferred taxes.
The impact of the application of hyperinflation accounting and the use of end of period
rates to translate the statement of the income statement is shown in the table below.
Hyperinflation accounting
in \u20ac millions
2022
2023
Revenue
5
(64)
Operating income
(46)
(54)
Net interest on net debt
0
17
Exchange rate results
4
54
Hyperinflation: net gain/(loss) on monetary position
(20)
(46)
Financing income and expenses
(16)
25
Profit before tax
(62)
(29)
Income tax
(12)
(48)
Profit for the period
(74)
(77)
Attributable to
Shareholders of the company
(63)
(65)
Non-controlling interests
(11)
(12)
", "dimensions": { "concept": "ifrs-full:DisclosureOfHyperinflationaryReportingExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-383": { "value": "
Revenue recognition (Note 4)
Sale of goods
AkzoNobel's main business consists of straightforward selling of goods (paints and
coatings) to customers at contractually determined prices and conditions without any
additional services. Although the transfer of risks and rewards is not the only criterion to be
considered to determine whether control over the goods has transferred, it is in most
situations considered to be the main indicator of the customer's ability to direct the use of,
and obtain the benefits from the asset, and largely also coincides with the physical transfer
of the goods and the obligation of the customer to pay.
Variable considerations, including among others rebates, bonuses, discounts and
payments to customers, are accrued for as performance obligations are satisfied and
revenue is recognized. Variable considerations are only recognized when it is highly
probable that these are not subject to significant reversal. In case of expected returns,
revenue is not recognized for such products. Instead, we record a liability for the refund and
an asset for the products that will be returned. A provision for warranties is recognized
when the underlying products or services are sold, generally based on historical warranty
data. Revenue is recognized net of rebates, discounts and similar allowances, and net of
sales tax.
Equipment provided to customers
AkzoNobel regularly provides mixing machines, store interior and other assets to its
customers at the start of a paints or coatings delivery contract. The delivery of such assets
qualifies as a separate performance obligation. Revenue can only be recognized at the
moment of transfer of such assets, when there is an agreed sales price or when there is a
binding take-or-pay commitment for a minimum quantity of paints or coatings to be
acquired by the customer.
Services
AkzoNobel provides certain training, technical or support services to customers, as well as
shipping and handling activities for its customers. Service revenue is recognized over time
when the related services are being provided. When not separately invoiced, part of the
sales price of paints or coatings is allocated to such services.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-384": { "value": "
Variable considerations, including among others rebates, bonuses, discounts and
payments to customers, are accrued for as performance obligations are satisfied and
revenue is recognized. Variable considerations are only recognized when it is highly
probable that these are not subject to significant reversal.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscountsAndRebatesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-385": { "value": "
Post-retirement benefits (Note 6, 18)
Contributions to defined contribution plans are recognized in the statement of income as
incurred.
Most of our defined benefit pension plans are funded with plan assets that have been
segregated in a trust or foundation. We also provide post-retirement benefits other than
pensions to certain employees, which are generally not funded. Valuations of both funded
and unfunded plans are carried out by independent actuaries, based on the projected unit
credit method. Post-retirement costs primarily represent the increase in the actuarial
present value of the obligation for projected benefits, based on employee service during the
year and interest on the net defined benefit liability/asset. When the calculation results in a
benefit to AkzoNobel, the recognized asset is limited to the present value of economic
benefits available in the form of any future refunds from the plan or reductions in future
contributions to the plan. An economic benefit is available if it is realizable during the life of
the plan, or on the settlement of the plan liabilities. The effect of these so-called asset
ceiling restrictions and any changes therein are recognized in Other comprehensive income.
Remeasurement gains and losses, which arise in calculating our obligations, are recognized
in Other comprehensive income. When the benefits of a plan improve, the portion of the
increased benefits related to past service by employees is recognized as an expense in the
statement of income immediately. We recognize gains and losses on the curtailment or
settlement of a defined benefit plan when the curtailment or settlement occurs.
Interest on the net defined benefit liability/asset is included in financing expenses related to
post-retirement benefits. Other charges and benefits recognized are reported in operating
income, unless recorded in other comprehensive income.
Other employee benefits (Note 6, 19)
Provisions for other long-term employee benefits are measured at present value, using
actuarial assumptions and methods. Any actuarial gains and losses are recognized in the
statement of income in the period in which they arise.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-386": { "value": "
Share-based compensation (Note 6)
AkzoNobel has a performance-related and a restricted share plan, as well as a share-
matching plan, under which equity-settled shares are granted to certain employees. The fair
value is measured at grant date and amortized over the three-year period during which the
employees normally become unconditionally entitled to the shares with a corresponding
increase in shareholders' equity. Amortization is accelerated in the event of earlier vesting or
settlement.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-387": { "value": "
Income tax (Note 8)
Income tax expense comprises both current and deferred tax, including effects of changes
in tax rates. In determining the amount of current and deferred tax, we also take into
account the impact of uncertain tax positions and whether additional taxes may be due.
Income tax is recognized in the statement of income, unless it relates to items recognized in
other comprehensive income or equity.
Current tax includes the expected tax payable and receivable on the taxable income for the
year, using tax rates enacted or substantively enacted at reporting date, as well as (any
adjustments to) tax payables and receivables with respect to previous years.
Deferred tax is recognized using the liability method on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the
Consolidated financial statements. We do not recognize deferred tax for the initial
recognition of goodwill, the initial recognition of assets or liabilities that affect neither
accounting nor taxable profit, and differences related to investments in subsidiaries to the
extent that they will probably not reverse in the foreseeable future and we can control the
timing of the reversal of the temporary difference. Deferred tax assets are recognized for
unused tax losses, tax credits and deductible temporary differences, to the extent that it is
probable that future taxable profits will be available against which they can be utilized.
AkzoNobel has applied the exemption for recognizing and disclosing information about
deferred tax assets and liabilities related to Pillar Two income taxes.
Measurement of deferred tax assets and liabilities is based upon the enacted or
substantively enacted tax rates expected to apply to taxable income in the years in which
temporary differences are expected to be reversed. Deferred tax positions are not
discounted.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-388": { "value": "
Deferred tax is recognized using the liability method on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the
Consolidated financial statements. We do not recognize deferred tax for the initial
recognition of goodwill, the initial recognition of assets or liabilities that affect neither
accounting nor taxable profit, and differences related to investments in subsidiaries to the
extent that they will probably not reverse in the foreseeable future and we can control the
timing of the reversal of the temporary difference. Deferred tax assets are recognized for
unused tax losses, tax credits and deductible temporary differences, to the extent that it is
probable that future taxable profits will be available against which they can be utilized.
AkzoNobel has applied the exemption for recognizing and disclosing information about
deferred tax assets and liabilities related to Pillar Two income taxes.
Measurement of deferred tax assets and liabilities is based upon the enacted or
substantively enacted tax rates expected to apply to taxable income in the years in which
temporary differences are expected to be reversed. Deferred tax positions are not
discounted.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-389": { "value": "
Earnings per share (Note 9)
Basic earnings per share is calculated by dividing the profit for the period attributable to
shareholders of the company by the weighted average number of common shares
outstanding during the year, adjusted for any repurchased shares. Diluted earnings per
share is calculated by adjusting the weighted average number of common shares
outstanding during the year for the diluting effect of the shares of the performance-related
share plan, the restricted share plan and the share-matching plan.
Adjusted earnings per share represents the basic earnings per share from continuing
operations excluding identified items, after taxes.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-390": { "value": "
Government grants
Government grants related to costs are deducted from the relevant costs to be
compensated in the same period. Government grants to compensate for the cost of an
asset are deducted from the cost of the related asset. Emission rights granted by the
government are recorded at cost. A\u00a0provision is recorded if the actual emission is higher
than the emission rights granted.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGovernmentGrants", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-391": { "value": "Emission rights granted by the
government are recorded at cost. A\u00a0provision is recorded if the actual emission is higher
than the emission rights granted.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmissionRightsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-394": { "value": "
Intangible assets (Note 10)
Intangible assets are valued at cost less accumulated amortization and impairment
charges. Intangible assets with an indefinite useful life, such as goodwill and certain brands,
are not amortized, but tested for impairment annually using the value-in-use method.
Intangible assets with a finite useful life, such as licenses, know-how, certain brands,
customer relationships, intellectual property rights, emission rights, software expenditures
(in as far as AkzoNobel controls the software configured or customized) and capitalized
development costs, are capitalized at historical cost and amortized on a straight-line basis
over the estimated useful life of the assets, which generally ranges from 5 to 40 years for
brands with finite useful lives, 5 to 25 years for customer relationships, and 3 to 15 years for
other intangibles. Amortization methods, useful lives and residual values are reassessed
annually. Research expenditures are recognized as an expense as incurred.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-393": { "value": "
Intangible assets (Note 10)
Intangible assets are valued at cost less accumulated amortization and impairment
charges. Intangible assets with an indefinite useful life, such as goodwill and certain brands,
are not amortized, but tested for impairment annually using the value-in-use method.
Intangible assets with a finite useful life, such as licenses, know-how, certain brands,
customer relationships, intellectual property rights, emission rights, software expenditures
(in as far as AkzoNobel controls the software configured or customized) and capitalized
development costs, are capitalized at historical cost and amortized on a straight-line basis
over the estimated useful life of the assets, which generally ranges from 5 to 40 years for
brands with finite useful lives, 5 to 25 years for customer relationships, and 3 to 15 years for
other intangibles. Amortization methods, useful lives and residual values are reassessed
annually. Research expenditures are recognized as an expense as incurred.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-392": { "value": "
Intangible assets (Note 10)
Intangible assets are valued at cost less accumulated amortization and impairment
charges. Intangible assets with an indefinite useful life, such as goodwill and certain brands,
are not amortized, but tested for impairment annually using the value-in-use method.
Intangible assets with a finite useful life, such as licenses, know-how, certain brands,
customer relationships, intellectual property rights, emission rights, software expenditures
(in as far as AkzoNobel controls the software configured or customized) and capitalized
development costs, are capitalized at historical cost and amortized on a straight-line basis
over the estimated useful life of the assets, which generally ranges from 5 to 40 years for
brands with finite useful lives, 5 to 25 years for customer relationships, and 3 to 15 years for
other intangibles. Amortization methods, useful lives and residual values are reassessed
annually. Research expenditures are recognized as an expense as incurred.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-395": { "value": "Research expenditures are recognized as an expense as incurred.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForResearchAndDevelopmentExpenseExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-396": { "value": "
Property, plant and equipment (Note 11)
Property, plant and equipment are valued at cost less accumulated depreciation and
impairment charges. Costs include expenditures that are directly attributable to the
acquisition of the asset, including borrowing cost of capital investment projects under
construction.
Depreciation is calculated using the straight-line method, based on the estimated useful life
of the asset components. The useful life of plant equipment and machinery generally ranges
from 10 to 25 years, and for buildings ranges from 20 to 50 years. Land is not depreciated.
Other equipment contains assets with a useful life ranging from 3 to 20 years. In the
majority of cases, residual value is assumed to be not significant. Depreciation methods,
useful lives and residual values are reassessed annually.
Costs of major maintenance activities are capitalized and depreciated over the estimated
useful life. Maintenance costs which cannot be separately defined as a component of
property, plant and equipment are expensed in the period in which they occur. We
recognize conditional asset retirement obligations in the periods in which sufficient
information becomes available to reasonably estimate the cash outflow.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-397": { "value": "
Depreciation is calculated using the straight-line method, based on the estimated useful life
of the asset components. The useful life of plant equipment and machinery generally ranges
from 10 to 25 years, and for buildings ranges from 20 to 50 years. Land is not depreciated.
Other equipment contains assets with a useful life ranging from 3 to 20 years. In the
majority of cases, residual value is assumed to be not significant. Depreciation methods,
useful lives and residual values are reassessed annually.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-398": { "value": "
Costs of major maintenance activities are capitalized and depreciated over the estimated
useful life. Maintenance costs which cannot be separately defined as a component of
property, plant and equipment are expensed in the period in which they occur. We
recognize conditional asset retirement obligations in the periods in which sufficient
information becomes available to reasonably estimate the cash outflow.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRepairsAndMaintenanceExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-399": { "value": "
Leases (Note 12, 20)
As a lessee, we assess whether a contract is, or contains, a lease at inception. A contract
is, or contains, a lease if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for a consideration.
At commencement, or on modification, of a contract that contains a lease component, we
allocate the consideration in the contract to each lease component on the basis of its
relative stand-alone price. However, for the leases of cars, we have elected not to separate
non-lease components and account for the lease and non-lease components as a single
lease component.
We recognize a right-of-use asset and a lease liability at the lease commencement date.
The right-of-use asset is initially measured at the present value of the lease liability. The
right-of-use asset value contains lease prepayments, lease incentives received, the initial
direct costs and an estimate of restoration, removal and dismantling costs.
The right-of-use assets are depreciated using the straight-line method from the
commencement date to the end of the lease term or shorter economic life. In addition, the
value of right-of-use assets is reduced by impairment losses, if any, and adjusted for certain
remeasurements of the lease liability.
The net present value of the lease liability is measured at the discounted value of the lease
payments. The liability includes payments to be made in optional periods if it is reasonably
certain that we will exercise an option to extend the lease, or that we will not exercise an
option to terminate the lease. The lease payments comprise the following:
\u2022 Fixed payments (including in substance fixed payments), less any lease incentives
\u2022 Variable lease payments that depend on an index or a rate
\u2022 The exercise price of a purchase option if it is reasonably certain that the option will be
exercised
\u2022 Payments of penalties for terminating the lease, if the lease term reflects the lessee
exercising an option to terminate the lease; and
\u2022 Amounts expected to be payable under residual value guarantees
These lease payments are discounted using the interest rate implicit in the lease contract, if
that rate can be readily determined. If that rate cannot be readily determined, the
incremental borrowing rate is used. We determine our incremental borrowing rates by
obtaining interest rates from various external financing sources and make certain
adjustments to reflect the term of the lease and type of the asset leased. At the lease
commencement dates, we assess whether it is reasonably certain that we will exercise the
extension options. We reassess whether it is reasonably certain that we will exercise the
options, if there is a significant event or significant change in circumstances within our
control.
At the commencement date, we assess whether it is reasonably certain that:
\u2022 An option to extend is exercised; or
\u2022 An option to purchase is exercised; or
\u2022 An option to terminate the lease is not exercised
In making these assessments, all relevant facts and circumstances that create an economic
incentive for us to exercise, or not to exercise, the option, including any expected changes
in facts and circumstances from the commencement date until the exercise date of the
option, are considered.
Short-term leases and leases of low-value assets
We do not record right-of-use assets and lease liabilities on the balance sheet for leases of
low-value assets and short-term leases. We recognize the lease payments associated with
these leases as an expense on a straight-line basis over the lease term.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-401": { "value": "
Impairments (Note 10, 11, 12)
We assess the carrying value of intangible assets, property, plant and equipment and right-
of-use assets whenever events or changes in circumstances indicate that the carrying value
of an asset may not be recoverable as a result of e.g. changes in cash flow forecasts,
damages, market developments or environmental and climate change risks. In addition, for
goodwill and other intangible assets with an indefinite useful life, the carrying value is
reviewed at least annually or when circumstances indicate the carrying amount may be
impaired. If the carrying value of an asset or its cash-generating unit exceeds its estimated
recoverable amount, an impairment loss is recognized in the statement of income on the
functional level of the asset impaired. The assessment for impairment is performed at the
lowest level of assets generating largely independent cash inflows. For goodwill and other
intangible assets with an indefinite life, we have determined this to be at business unit level
(one level below operating segment).
Except for goodwill, we reverse impairment losses in the statement of income if and to the
extent we have identified a change in estimates used to determine the recoverable amount.
Valuation and impairment
Financial assets are assessed for impairment either according to the general approach or a
simplified approach.
The calculation of impairment under the general approach uses the following stages:
\u2022 12-month expected credit losses, taking into account possible default events within
one year
\u2022 Lifetime expected credit losses in case of an increase in credit risk, through recognition
of expected credit losses over the remaining life of the exposure
\u2022 Lifetime expected credit losses, where interest is calculated on the net amount of the
receivables less impairment loss
In all above stages, the impairment calculation used is based on external credit ratings of
involved parties or default rates published by well-known credit risk agencies.
The financial assets included in the general impairment approach are long-term loans and
other long-term receivables.
The calculation of impairment under the simplified approach requires recognition of lifetime
expected credit loss (no tracking of changes in credit risk). The financial assets included in
the simplified impairment approach are trade receivables and the remaining financial assets.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-400": { "value": "
Impairments (Note 10, 11, 12)
We assess the carrying value of intangible assets, property, plant and equipment and right-
of-use assets whenever events or changes in circumstances indicate that the carrying value
of an asset may not be recoverable as a result of e.g. changes in cash flow forecasts,
damages, market developments or environmental and climate change risks. In addition, for
goodwill and other intangible assets with an indefinite useful life, the carrying value is
reviewed at least annually or when circumstances indicate the carrying amount may be
impaired. If the carrying value of an asset or its cash-generating unit exceeds its estimated
recoverable amount, an impairment loss is recognized in the statement of income on the
functional level of the asset impaired. The assessment for impairment is performed at the
lowest level of assets generating largely independent cash inflows. For goodwill and other
intangible assets with an indefinite life, we have determined this to be at business unit level
(one level below operating segment).
Except for goodwill, we reverse impairment losses in the statement of income if and to the
extent we have identified a change in estimates used to determine the recoverable amount.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-404": { "value": "
Associates (Note 13)
Associates are accounted for using the equity method and are initially recognized at cost.
The Consolidated financial statements include our share of the income and expenses of the
associates, whereby the result is determined using our accounting principles. When the
share of losses exceeds the interest in the investee, the carrying amount is reduced to nil
and recognition of further losses is discontinued, unless we have further legal or
constructive obligations.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-403": { "value": "
Associates (Note 13)
Associates are accounted for using the equity method and are initially recognized at cost.
The Consolidated financial statements include our share of the income and expenses of the
associates, whereby the result is determined using our accounting principles. When the
share of losses exceeds the interest in the investee, the carrying amount is reduced to nil
and recognition of further losses is discontinued, unless we have further legal or
constructive obligations.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-402": { "value": "
Associates (Note 13)
Associates are accounted for using the equity method and are initially recognized at cost.
The Consolidated financial statements include our share of the income and expenses of the
associates, whereby the result is determined using our accounting principles. When the
share of losses exceeds the interest in the investee, the carrying amount is reduced to nil
and recognition of further losses is discontinued, unless we have further legal or
constructive obligations.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-405": { "value": "
Inventories (Note 15)
Inventories are measured at the lower of cost and net realizable value. Costs of inventories
comprise all costs of purchase, costs of conversion and other costs incurred in bringing the
inventories to the present location and condition. The costs of inventories are determined
using weighted average cost.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-406": { "value": "
Provisions (Note 19)
We recognize provisions when a present legal or constructive obligation as a result of a
past event exists, it is probable that an outflow of economic benefits is required to settle the
obligation and the amount can be reliably estimated. Provisions are measured at net
present value. The increase of provisions as a result of the passage of time is recognized in
the statement of income under financing income and expenses.
Provisions for restructuring of activities are recognized when a detailed and formal
restructuring plan has been approved, and the restructuring has either commenced or has
been announced publicly. We do not provide for future operating costs.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-407": { "value": "
Financial instruments
Classification
All assets are measured at amortized cost, fair value through profit or loss or fair value
through other comprehensive income. Financial assets are classified according to a model
based on:
\u2022 A contractual cash flow characteristics test
\u2022 A business model dictating how the reporting entity manages its financial assets in
order to generate cash flows as either:
1. Hold to collect contractual cash flows
2. Collect contractual cash flows and sell
3. Neither 1 or 2
\u2022 Election of the fair value option in some specific cases in order to eliminate an
accounting mismatch
The classification of a financial asset is determined at initial recognition, but if certain
conditions are met, an asset might be subject to reclassification.
Valuation and impairment
Financial assets are assessed for impairment either according to the general approach or a
simplified approach.
The calculation of impairment under the general approach uses the following stages:
\u2022 12-month expected credit losses, taking into account possible default events within
one year
\u2022 Lifetime expected credit losses in case of an increase in credit risk, through recognition
of expected credit losses over the remaining life of the exposure
\u2022 Lifetime expected credit losses, where interest is calculated on the net amount of the
receivables less impairment loss
In all above stages, the impairment calculation used is based on external credit ratings of
involved parties or default rates published by well-known credit risk agencies.
The financial assets included in the general impairment approach are long-term loans and
other long-term receivables.
The calculation of impairment under the simplified approach requires recognition of lifetime
expected credit loss (no tracking of changes in credit risk). The financial assets included in
the simplified impairment approach are trade receivables and the remaining financial assets.
Measurement
Regular purchases and sales of financial assets and liabilities are recognized on trade date.
The initial measurement of all financial instruments is at fair value. Except for derivatives and
cash and cash equivalents, the initial measurement of financial instruments is adjusted for
directly attributable transaction costs.
Derivative financial instruments (Note 26)
Derivative financial instruments are recognized at fair value on the balance sheet. Fair values
are derived from market prices and quotes from dealers and brokers or are estimated using
observable market inputs. When determining fair values, credit risk for our contract party,
as well as for AkzoNobel, is taken into account.
Changes in fair value are recognized in the statement of income, unless cash flow hedge
accounting or net investment hedge accounting is applied. In those cases, the effective part
of the fair value changes is deferred in other comprehensive income and released to the
related specific lines in the statement of income or balance sheet at the same time as the
hedged item.
Financial non-current assets (Note 14) and Trade and other
receivables (Note 16)
Loans and receivables are measured at amortized cost, using the effective interest method,
less any impairment losses. Positions are netted, if there is an intention to set off and when
legally enforceable.
Cash and cash equivalents and short-term investments
(Note\u00a020)
Cash and cash equivalents and short-term investments are measured at fair value. Cash
and cash equivalents include all cash balances and other investments that are directly
convertible into known amounts of cash. Changes in fair values are included in financing
income and expenses.
Long-term and Short-term borrowings (Note 20, 26) and
Trade\u00a0and other payables (Note 21)
Long-term and short-term borrowings, as well as trade and other payables, are measured
at amortized cost, using the effective interest rate method. The interest expense on
borrowings is included in financing income and expenses. The fair value of borrowings,
used for disclosure purposes, is determined based on listed market price, if available. If a
listed market price is not available, the fair value is calculated based on the present value of
principal and interest cash flows, discounted at the interest rate at the reporting date,
considering AkzoNobel\u2019s credit risk.\u00a0 Positions are netted, if there is an intention to set off
and when legally enforceable.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-408": { "value": "
Classification
All assets are measured at amortized cost, fair value through profit or loss or fair value
through other comprehensive income. Financial assets are classified according to a model
based on:
\u2022 A contractual cash flow characteristics test
\u2022 A business model dictating how the reporting entity manages its financial assets in
order to generate cash flows as either:
1. Hold to collect contractual cash flows
2. Collect contractual cash flows and sell
3. Neither 1 or 2
\u2022 Election of the fair value option in some specific cases in order to eliminate an
accounting mismatch
The classification of a financial asset is determined at initial recognition, but if certain
conditions are met, an asset might be subject to reclassification.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForReclassificationOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-409": { "value": "
Valuation and impairment
Financial assets are assessed for impairment either according to the general approach or a
simplified approach.
The calculation of impairment under the general approach uses the following stages:
\u2022 12-month expected credit losses, taking into account possible default events within
one year
\u2022 Lifetime expected credit losses in case of an increase in credit risk, through recognition
of expected credit losses over the remaining life of the exposure
\u2022 Lifetime expected credit losses, where interest is calculated on the net amount of the
receivables less impairment loss
In all above stages, the impairment calculation used is based on external credit ratings of
involved parties or default rates published by well-known credit risk agencies.
The financial assets included in the general impairment approach are long-term loans and
other long-term receivables.
The calculation of impairment under the simplified approach requires recognition of lifetime
expected credit loss (no tracking of changes in credit risk). The financial assets included in
the simplified impairment approach are trade receivables and the remaining financial assets.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-410": { "value": "
Measurement
Regular purchases and sales of financial assets and liabilities are recognized on trade date.
The initial measurement of all financial instruments is at fair value. Except for derivatives and
cash and cash equivalents, the initial measurement of financial instruments is adjusted for
directly attributable transaction costs.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-415": { "value": "
Derivative financial instruments (Note 26)
Derivative financial instruments are recognized at fair value on the balance sheet. Fair values
are derived from market prices and quotes from dealers and brokers or are estimated using
observable market inputs. When determining fair values, credit risk for our contract party,
as well as for AkzoNobel, is taken into account.
Changes in fair value are recognized in the statement of income, unless cash flow hedge
accounting or net investment hedge accounting is applied. In those cases, the effective part
of the fair value changes is deferred in other comprehensive income and released to the
related specific lines in the statement of income or balance sheet at the same time as the
hedged item.
Cash and cash equivalents and short-term investments
(Note\u00a020)
Cash and cash equivalents and short-term investments are measured at fair value. Cash
and cash equivalents include all cash balances and other investments that are directly
convertible into known amounts of cash. Changes in fair values are included in financing
income and expenses.
Long-term and Short-term borrowings (Note 20, 26) and
Trade\u00a0and other payables (Note 21)
Long-term and short-term borrowings, as well as trade and other payables, are measured
at amortized cost, using the effective interest rate method. The interest expense on
borrowings is included in financing income and expenses. The fair value of borrowings,
used for disclosure purposes, is determined based on listed market price, if available. If a
listed market price is not available, the fair value is calculated based on the present value of
principal and interest cash flows, discounted at the interest rate at the reporting date,
considering AkzoNobel\u2019s credit risk.\u00a0 Positions are netted, if there is an intention to set off
and when legally enforceable.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-414": { "value": "
Derivative financial instruments (Note 26)
Derivative financial instruments are recognized at fair value on the balance sheet. Fair values
are derived from market prices and quotes from dealers and brokers or are estimated using
observable market inputs. When determining fair values, credit risk for our contract party,
as well as for AkzoNobel, is taken into account.
Changes in fair value are recognized in the statement of income, unless cash flow hedge
accounting or net investment hedge accounting is applied. In those cases, the effective part
of the fair value changes is deferred in other comprehensive income and released to the
related specific lines in the statement of income or balance sheet at the same time as the
hedged item.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-413": { "value": "
Derivative financial instruments (Note 26)
Derivative financial instruments are recognized at fair value on the balance sheet. Fair values
are derived from market prices and quotes from dealers and brokers or are estimated using
observable market inputs. When determining fair values, credit risk for our contract party,
as well as for AkzoNobel, is taken into account.
Changes in fair value are recognized in the statement of income, unless cash flow hedge
accounting or net investment hedge accounting is applied. In those cases, the effective part
of the fair value changes is deferred in other comprehensive income and released to the
related specific lines in the statement of income or balance sheet at the same time as the
hedged item.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-412": { "value": "
Derivative financial instruments (Note 26)
Derivative financial instruments are recognized at fair value on the balance sheet. Fair values
are derived from market prices and quotes from dealers and brokers or are estimated using
observable market inputs. When determining fair values, credit risk for our contract party,
as well as for AkzoNobel, is taken into account.
Changes in fair value are recognized in the statement of income, unless cash flow hedge
accounting or net investment hedge accounting is applied. In those cases, the effective part
of the fair value changes is deferred in other comprehensive income and released to the
related specific lines in the statement of income or balance sheet at the same time as the
hedged item.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-411": { "value": "
Derivative financial instruments (Note 26)
Derivative financial instruments are recognized at fair value on the balance sheet. Fair values
are derived from market prices and quotes from dealers and brokers or are estimated using
observable market inputs. When determining fair values, credit risk for our contract party,
as well as for AkzoNobel, is taken into account.
Changes in fair value are recognized in the statement of income, unless cash flow hedge
accounting or net investment hedge accounting is applied. In those cases, the effective part
of the fair value changes is deferred in other comprehensive income and released to the
related specific lines in the statement of income or balance sheet at the same time as the
hedged item.
Cash and cash equivalents and short-term investments
(Note\u00a020)
Cash and cash equivalents and short-term investments are measured at fair value. Cash
and cash equivalents include all cash balances and other investments that are directly
convertible into known amounts of cash. Changes in fair values are included in financing
income and expenses.
Long-term and Short-term borrowings (Note 20, 26) and
Trade\u00a0and other payables (Note 21)
Long-term and short-term borrowings, as well as trade and other payables, are measured
at amortized cost, using the effective interest rate method. The interest expense on
borrowings is included in financing income and expenses. The fair value of borrowings,
used for disclosure purposes, is determined based on listed market price, if available. If a
listed market price is not available, the fair value is calculated based on the present value of
principal and interest cash flows, discounted at the interest rate at the reporting date,
considering AkzoNobel\u2019s credit risk.\u00a0 Positions are netted, if there is an intention to set off
and when legally enforceable.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-416": { "value": "
Financial non-current assets (Note 14) and Trade and other
receivables (Note 16)
Loans and receivables are measured at amortized cost, using the effective interest method,
less any impairment losses. Positions are netted, if there is an intention to set off and when
legally enforceable.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-417": { "value": "
Cash and cash equivalents and short-term investments
(Note\u00a020)
Cash and cash equivalents and short-term investments are measured at fair value. Cash
and cash equivalents include all cash balances and other investments that are directly
convertible into known amounts of cash. Changes in fair values are included in financing
income and expenses.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-418": { "value": "Changes in fair values are included in financing
income and expenses.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-420": { "value": "
Long-term and Short-term borrowings (Note 20, 26) and
Trade\u00a0and other payables (Note 21)
Long-term and short-term borrowings, as well as trade and other payables, are measured
at amortized cost, using the effective interest rate method. The interest expense on
borrowings is included in financing income and expenses. The fair value of borrowings,
used for disclosure purposes, is determined based on listed market price, if available. If a
listed market price is not available, the fair value is calculated based on the present value of
principal and interest cash flows, discounted at the interest rate at the reporting date,
considering AkzoNobel\u2019s credit risk.\u00a0 Positions are netted, if there is an intention to set off
and when legally enforceable.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-419": { "value": "
Long-term and Short-term borrowings (Note 20, 26) and
Trade\u00a0and other payables (Note 21)
Long-term and short-term borrowings, as well as trade and other payables, are measured
at amortized cost, using the effective interest rate method. The interest expense on
borrowings is included in financing income and expenses. The fair value of borrowings,
used for disclosure purposes, is determined based on listed market price, if available. If a
listed market price is not available, the fair value is calculated based on the present value of
principal and interest cash flows, discounted at the interest rate at the reporting date,
considering AkzoNobel\u2019s credit risk.\u00a0 Positions are netted, if there is an intention to set off
and when legally enforceable.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-421": { "value": "
New IFRS accounting standards
IFRS standards and interpretations thereof not yet in force, which may apply to our
Consolidated financial statements for 2024 and beyond, have been assessed for their
potential impact.
These include, among others, amendments to IAS 1 \"Classification of Liabilities as Current
or Non-current\" and \"Non-current Liabilities with Covenants\", amendments to IFRS\u00a016
\"Lease Liability in Sale and Leaseback\", amendments to IAS 7 and IFRS 7 \"Supplier
Finance Arrangements\", amendments to IAS\u00a021 \"Lack of Exchangeability\" and
amendments to IFRS\u00a010 and IAS 28 \"Sale or Contribution of Assets between an Investor
and its Associate or Joint Venture\". These changes are not expected to have a material
effect on AkzoNobel\u2019s Consolidated financial statements.
", "dimensions": { "concept": "ifrs-full:DescriptionOfExpectedImpactOfInitialApplicationOfNewStandardsOrInterpretations", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-422": { "value": "
Note 2: Scope of consolidation
Material subsidiaries
The Consolidated financial statements comprise the assets, liabilities, income and expenses
of 238 legal entities. We consider legal entities material when they represent, for at least
two subsequent years, more than 5% of either revenue or operating income. Material
subsidiaries included in the table below are fully owned at year-end 2023, except for Akzo
Nobel India Limited (74.76% owned by AkzoNobel). Refer to Note 17 Group equity for an
overview of non-controlling interests.
Material subsidiaries related to continuing operations
Legal entity
Principal place of business
Akzo Nobel Coatings Inc.
US
Akzo Nobel Paints (Shanghai) Co Ltd.
China
Akzo Nobel India Limited
India
Imperial Chemical Industries Limited
UK
Akzo Nobel Decorative Coatings B.V.
The Netherlands
Akzo Nobel Coatings SPA
Italy
Akzo Nobel Ltda
Brazil
Acquisitions
On August 1, 2023, AkzoNobel acquired 100% of the shares of Valspar Coatings Holding
Co. Ltd., Hong Kong (hereafter: \"the Huarun business\") for \u20ac72 million. The acquisition
strengthens our position in China. It will allow us further market segmentation and reinforce
our position outside of the premium segment.
The provisional purchase price allocation resulted in \u20ac32 million of goodwill (non-deductible
for tax purposes), \u20ac28 million of other intangible assets (of which \u20ac13 million relates to
brands which have finite useful lives) and \u20ac42 million other fixed and current assets,
excluding deferred taxes. Revenue of the Huarun business over 2023 amounted to \u20ac66
million. Since its acquisition, the Huarun business contributed \u20ac32 million to AkzoNobel's
consolidated revenues.
The goodwill is mainly attributable to synergies expected to be achieved from integrating
the acquired business into the group. The purchase price allocation is provisional due to the
limited time between the date of acquisition and the reporting date. The purchase price
allocation will be finalized before August 1, 2024. No material changes from the current
purchase price allocation are expected. The Huarun business has been integrated in
business unit Decorative Paints China and North Asia.
On April 22, 2022, AkzoNobel acquired 100% of the shares of Colombia-based paints and
coatings company Grupo Orbis S.A. (Grupo Orbis) for \u20ac566 million. The acquisition
strengthens our position in Latin America.
Based on the final purchase price allocation, the transaction resulted in \u20ac267 million of
goodwill, non-deductible for tax purposes (2022: \u20ac262 million), \u20ac257 million of other
intangible assets (2022: \u20ac259 million), \u20ac120 million of property, plant and equipment (2022:
\u20ac121 million) and \u20ac199 million other fixed and current assets\u00a0 (2022: \u20ac202 million).
The goodwill is mainly attributable to synergies expected to be achieved from integrating
the company into the group. The paints business of Grupo Orbis has been integrated in
business unit Decorative Paints Latin America. The coatings businesses have been
integrated in the respective Performance Coatings business units in 2023. In 2022, these
businesses were temporarily reported in business unit Performance Coatings Other.
On December 1, 2022, we acquired the wheel liquid coatings business of Lankwitzer
Lackfabrik GmbH for \u20ac36 million in an asset deal. The final purchase price allocation
resulted in \u20ac5 million of goodwill, deductible for tax purposes (2022: \u20ac7 million), \u20ac20 million
of other intangible assets (2022: \u20ac17 million) and \u20ac13 million other fixed and current assets
(2022: \u20ac14 million). The goodwill is mainly attributable to synergies expected to be achieved
from integrating the acquired business into the group. This business has been integrated in
business unit Powder Coatings.
Recognized fair values at acquisition
in \u20ac millions
Huarun
business
Other1
Total 2023
Other intangibles
28
10
38
Property, plant and equipment
7
(1)
6
Right of use assets
15
\u2014
15
Inventories
2
(1)
1
Trade and other receivables
12
(1)
11
Cash and cash equivalents
6
\u2014
6
Provisions
(1)
(1)
(2)
Deferred tax assets/(liabilities)
(10)
1
(9)
Trade and other payables
(19)
\u2014
(19)
Net identifiable assets and liabilities
40
7
47
Goodwill
32
2
34
Purchase consideration
72
9
81
Cash and cash equivalents acquired
(6)
\u2014
(6)
To be received in 2024 and later years
\u2014
(1)
(1)
Net cash outflow2
66
8
74
1 Contains the final adjustments to the Grupo Orbis and Lankwitzer purchase price allocation.
2 Note that 'Acquisition of consolidated companies, net of cash acquired' in the Consolidated statement of cash flows further
contains \u20ac40 million related to the previously anticipated acquisition of Kansai Paints Africa.
Divestments
In 2023 and 2022, no divestments occurred, other than property divestments. Please refer
to Note 3 Segment information for more details on the property divestments.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-423": { "value": "
Material subsidiaries
The Consolidated financial statements comprise the assets, liabilities, income and expenses
of 238 legal entities. We consider legal entities material when they represent, for at least
two subsequent years, more than 5% of either revenue or operating income. Material
subsidiaries included in the table below are fully owned at year-end 2023, except for Akzo
Nobel India Limited (74.76% owned by AkzoNobel). Refer to Note 17 Group equity for an
overview of non-controlling interests.
Material subsidiaries related to continuing operations
Legal entity
Principal place of business
Akzo Nobel Coatings Inc.
US
Akzo Nobel Paints (Shanghai) Co Ltd.
China
Akzo Nobel India Limited
India
Imperial Chemical Industries Limited
UK
Akzo Nobel Decorative Coatings B.V.
The Netherlands
Akzo Nobel Coatings SPA
Italy
Akzo Nobel Ltda
Brazil
", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-424": { "value": "
Acquisitions
On August 1, 2023, AkzoNobel acquired 100% of the shares of Valspar Coatings Holding
Co. Ltd., Hong Kong (hereafter: \"the Huarun business\") for \u20ac72 million. The acquisition
strengthens our position in China. It will allow us further market segmentation and reinforce
our position outside of the premium segment.
The provisional purchase price allocation resulted in \u20ac32 million of goodwill (non-deductible
for tax purposes), \u20ac28 million of other intangible assets (of which \u20ac13 million relates to
brands which have finite useful lives) and \u20ac42 million other fixed and current assets,
excluding deferred taxes. Revenue of the Huarun business over 2023 amounted to \u20ac66
million. Since its acquisition, the Huarun business contributed \u20ac32 million to AkzoNobel's
consolidated revenues.
The goodwill is mainly attributable to synergies expected to be achieved from integrating
the acquired business into the group. The purchase price allocation is provisional due to the
limited time between the date of acquisition and the reporting date. The purchase price
allocation will be finalized before August 1, 2024. No material changes from the current
purchase price allocation are expected. The Huarun business has been integrated in
business unit Decorative Paints China and North Asia.
On April 22, 2022, AkzoNobel acquired 100% of the shares of Colombia-based paints and
coatings company Grupo Orbis S.A. (Grupo Orbis) for \u20ac566 million. The acquisition
strengthens our position in Latin America.
Based on the final purchase price allocation, the transaction resulted in \u20ac267 million of
goodwill, non-deductible for tax purposes (2022: \u20ac262 million), \u20ac257 million of other
intangible assets (2022: \u20ac259 million), \u20ac120 million of property, plant and equipment (2022:
\u20ac121 million) and \u20ac199 million other fixed and current assets\u00a0 (2022: \u20ac202 million).
The goodwill is mainly attributable to synergies expected to be achieved from integrating
the company into the group. The paints business of Grupo Orbis has been integrated in
business unit Decorative Paints Latin America. The coatings businesses have been
integrated in the respective Performance Coatings business units in 2023. In 2022, these
businesses were temporarily reported in business unit Performance Coatings Other.
On December 1, 2022, we acquired the wheel liquid coatings business of Lankwitzer
Lackfabrik GmbH for \u20ac36 million in an asset deal. The final purchase price allocation
resulted in \u20ac5 million of goodwill, deductible for tax purposes (2022: \u20ac7 million), \u20ac20 million
of other intangible assets (2022: \u20ac17 million) and \u20ac13 million other fixed and current assets
(2022: \u20ac14 million). The goodwill is mainly attributable to synergies expected to be achieved
from integrating the acquired business into the group. This business has been integrated in
business unit Powder Coatings.
Recognized fair values at acquisition
in \u20ac millions
Huarun
business
Other1
Total 2023
Other intangibles
28
10
38
Property, plant and equipment
7
(1)
6
Right of use assets
15
\u2014
15
Inventories
2
(1)
1
Trade and other receivables
12
(1)
11
Cash and cash equivalents
6
\u2014
6
Provisions
(1)
(1)
(2)
Deferred tax assets/(liabilities)
(10)
1
(9)
Trade and other payables
(19)
\u2014
(19)
Net identifiable assets and liabilities
40
7
47
Goodwill
32
2
34
Purchase consideration
72
9
81
Cash and cash equivalents acquired
(6)
\u2014
(6)
To be received in 2024 and later years
\u2014
(1)
(1)
Net cash outflow2
66
8
74
1 Contains the final adjustments to the Grupo Orbis and Lankwitzer purchase price allocation.
2 Note that 'Acquisition of consolidated companies, net of cash acquired' in the Consolidated statement of cash flows further
contains \u20ac40 million related to the previously anticipated acquisition of Kansai Paints Africa.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-425": { "value": "
Divestments
In 2023 and 2022, no divestments occurred, other than property divestments. Please refer
to Note 3 Segment information for more details on the property divestments.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-426": { "value": "
Note 3: Segment information
In presenting and discussing segmental operating results AkzoNobel uses two operational
segments, Decorative Paints and Performance Coatings. Items which are not allocated to
either one of these segments, mainly comprise of corporate assets and corporate costs
and are reported in \u201cCorporate and other\u201d.
Decorative Paints
We provide decorative paints to both the professional and the do-it-yourself markets. We
supply a variety of quality products for every situation and surface, including paints,\u00a0
lacquers and varnishes. We also offer a range of mixing machines and color concepts for
the building and renovation industry.
The business units in the operating segment Decorative Paints are set up regionally, as the
paints business is managed per region. Refer to Note 4 Revenue for a disaggregation of
revenues per region.
Performance Coatings
We are a supplier of performance coatings that protect and enhance ships, cars, aircraft,
yachts and architectural components (structural steel, building products, flooring),
consumer goods (mobile devices, appliances, beverage cans, furniture) and oil and gas
facilities. The business units in the operating segment Performance Coatings are set up per
product/end market as the segment is managed based on product/end market
combinations. Refer to Note 4 Revenue for a disaggregation of revenues per product/end
market.
Due to the integration of all resins activities in Latin America into the Industrial Coatings
business unit, these activities have been reallocated from Decorative Paints to Performance
Coatings. The 2022 comparative figures have been updated to allow proper comparison.\u00a0
The tables in this Note include Alternative Performance Measures (APMs). For further
information, refer to the section Alternative Performance Measures in this Note.
Information per reportable segment
Revenue (third
parties)3
Amortization
and
depreciation3
Operating
income3
Identified
items1,3
Adjusted
operating
income1,3
EBITDA1,3
Adjusted
EBITDA1,3
ROS%1,2,3
OPI margin
%1,2,3
in \u20ac millions
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
Decorative Paints
4,344
4,300
(154)
(145)
388
500
(5)
\u2014
393
500
542
645
548
645
9.0
11.6
8.9
11.6
Performance Coatings
6,499
6,368
(171)
(170)
448
698
(49)
13
497
685
619
868
668
854
7.6
10.8
6.9
11.0
Corporate and other
3
\u2014
(43)
(42)
(128)
(169)
(27)
(58)
(101)
(111)
(85)
(127)
(59)
(70)
Total
10,846
10,668
(368)
(357)
708
1,029
(81)
(45)
789
1,074
1,076
1,386
1,157
1,429
7.3
10.1
6.5
9.6
1 Refer to the glossary for definitions of the APMs.
2 ROS% and OPI margin for Corporate and other is not shown, as this is not meaningful.
3 Revenue, operating income and adjusted operating income (and related measures) of the segments for 2022 have been updated to reflect changes in the financial reporting structure.
Information per reportable segment
Invested capital
Total assets
Total liabilities
Capital
expenditures1
ROI%1,2,3
in \u20ac millions
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
Decorative Paints
3,604
3,650
5,890
5,835
1,581
1,604
91
99
10.7
13.3
Performance Coatings
3,950
3,641
6,270
6,294
2,083
2,213
167
165
12.8
18.4
Corporate and other
581
555
2,581
2,429
6,529
6,195
34
22
Total
8,135
7,846
14,741
14,558
10,193
10,012
292
286
9.8
13.0
1 Refer to the glossary for the definition of capital expenditures and ROI%.
2 ROI% for Corporate and other is not shown, as this is not meaningful.
3 ROI% for 2022 for the segments has been updated to reflect changes in the financial reporting structure.
Regional information
Revenue by region
of destination
Intangible assets
and property, plant
and equipment
Invested capital
Capital
expenditures
in \u20ac millions
2022
2023
2022
2023
2022
2023
2022
2023
The Netherlands
319
315
1,223
1,210
1,900
1,984
45
34
Other EMEA countries
4,714
4,672
1,753
1,730
2,679
2,474
95
102
North Asia
1,728
1,719
1,162
1,165
965
993
40
36
South Asia Pacific
1,371
1,304
526
523
677
597
54
63
North America
1,416
1,377
648
631
890
775
42
29
Latin America
1,298
1,281
728
816
1,024
1,023
16
22
Total
10,846
10,668
6,040
6,075
8,135
7,846
292
286
Alternative Performance Measures
In presenting and discussing AkzoNobel\u2019s (segmental) operating results, management uses
certain Alternative Performance Measures not defined by IFRS, which exclude the so-called
identified items. ldentified items are special charges and benefits, results on acquisitions
and divestments, major restructuring and impairment charges, and charges and benefits
related to major legal, environmental and tax cases. These Alternative Performance
Measures should not be viewed in isolation as alternatives to the equivalent IFRS measures
and should be used as supplementary information in conjunction with the most directly
comparable IFRS measures. Alternative Performance Measures do not have a standardized
meaning under IFRS and therefore may not be comparable to similar measures presented
by other companies. Where a non-financial measure is used to calculate an operational or
statistical ratio, this is also considered an alternative performance measure.
A reconciliation of the Alternative Performance Measures to the most directly comparable
IFRS measures can be found in the tables on this page and the next pages.
Identified items
Restructuring related costs
Restructuring related costs primarily relate to costs for accruals for certain employee
benefits and for other costs which are directly associated with plans to exit or cease
specific activities and closing down of facilities.
Property divestments
Property divestments in 2023 primarily relate to the gains on the divestment of the
Offenbach site in Germany and the Bangkok site in Thailand.
Adjustments to interest
Adjustments to interest in 2023 mainly related to the wind down of the cash flow hedges
related to the previously anticipated acquisition of Kansai Paints Africa. Refer to Note 26
Financial risk management for more details.
In 2022, interest income of \u20ac10 million was recognized related to the UK ACT case. The UK
ACT case is a group litigation case the company participates in (\u201cFranked Investment
Income litigation/case\u201d; filed in 2003) in order to seek recovery of Advance Corporation Tax.
Adjustments to income tax
In 2023, adjustments to income tax amounted to a net tax charge of \u20ac13 million, which
mainly related to the tax impact on the identified items in interest and operating income. In
2022 this tax impact on identified items in interest and operating income of \u20ac18 million was
partly offset by a \u20ac13 million tax charge related to the UK ACT case.
Reconciliations of APMs to the nearest IFRS measures
Alternative Performance Measures
2022
2023
in \u20ac millions
Continu-
ing
operations
Discon-
tinued
operations
Total
Continu-
ing
operations
Discon-
tinued
operations
Total
Operating income
708
\u2014
708
1,029
\u2014
1,029
APM adjustments to
operating income
Restructuring related costs
80
\u2014
80
89
\u2014
89
Property divestments
\u2014
\u2014
\u2014
(63)
\u2014
(63)
Acquisition related costs
9
\u2014
9
15
\u2014
15
Other
(8)
\u2014
(8)
4
\u2014
4
Total APM adjustments
(Identified items) to
operating income
81
\u2014
81
45
\u2014
45
Adjusted operating income
789
\u2014
789
1,074
\u2014
1,074
Profit for the period
attributable to shareholders
of the company
362
(10)
352
447
(5)
442
Adjustments to operating
income
81
\u2014
81
45
\u2014
45
Adjustments to interest
(10)
\u2014
(10)
44
\u2014
44
Adjustments to income tax
(5)
\u2014
(5)
(13)
\u2014
(13)
Total APM adjustments
66
\u2014
66
76
\u2014
76
Adjusted profit for the
period attributable to
shareholders of the
company
428
(10)
418
523
(5)
518
Adjusted operating income, OPI margin and ROS%
in \u20ac millions
2022
2023
Revenue from third parties1
Decorative Paints
4,344
4,300
Performance Coatings
6,499
6,368
Corporate and other
3
\u2014
Total
10,846
10,668
Operating income1
Decorative Paints
388
500
Performance Coatings
448
698
Corporate and other
(128)
(169)
Total
708
1,029
Total APM adjustments (Identified items) in Operating income1,2
Decorative Paints
(5)
\u2014
Performance Coatings
(49)
13
Corporate and other
(27)
(58)
Total
(81)
(45)
Adjusted operating income1,2
Decorative Paints
393
500
Performance Coatings
497
685
Corporate and other
(101)
(111)
Total
789
1,074
OPI margin%1.2,3
Decorative Paints
8.9
11.6
Performance Coatings
6.9
11.0
Corporate and other
Total
6.5
9.6
ROS%1,2,3
Decorative Paints
9.0
11.6
Performance Coatings
7.6
10.8
Corporate and other
Total
7.3
10.1
1 Revenue, operating income and adjusted operating income (and related measures) for 2022 of the segments have been updated to
reflect changes in the financial reporting structure.
2 Refer to the glossary for definitions of the APMs.
3 OPI margin and ROS% for Corporate and other is not shown, as this is not meaningful.
EBITDA*
2022
2023
in \u20ac millions
Operating
income
Depreciation
and
amortization
EBITDA
Operating
income
Depreciation
and
amortization
EBITDA
Decorative Paints
388
(154)
542
500
(145)
645
Performance Coatings
448
(171)
619
698
(170)
868
Corporate and other
(128)
(43)
(85)
(169)
(42)
(127)
Total
708
(368)
1,076
1,029
(357)
1,386
* Refer to the glossary for definitions of the APMs.
Adjusted EBITDA*
2022
2023
in \u20ac millions
Adjusted
operating
income
Depreciation
and
amortization
excluding
Identified
items
Adjusted
EBITDA
Adjusted
operating
income
Depreciation
and
amortization
excluding
Identified
items
Adjusted
EBITDA
Decorative Paints
393
(155)
548
500
(145)
645
Performance Coatings
497
(171)
668
685
(169)
854
Corporate and other
(101)
(42)
(59)
(111)
(41)
(70)
Total
789
(368)
1,157
1,074
(355)
1,429
* Refer to the glossary for definitions of the APMs.
Leverage ratio is calculated as net debt/EBITDA. For the calculation of net debt, refer to
Note 20 Net debt. Further information on the leverage ratio is included in Note 26 Financial
risk management, in the paragraph on capital risk management.
ROI%1
in \u20ac millions
2022
2023
Average invested capital1
Decorative Paints
3,677
3,755
Performance Coatings
3,895
3,725
Corporate and other
490
753
Total
8,062
8,233
Adjusted operating income1, 2
Decorative Paints
393
500
Performance Coatings
497
685
Corporate and other
(101)
(111)
Total
789
1,074
ROI%3
Decorative Paints
10.7
13.3
Performance Coatings
12.8
18.4
Corporate and other3
Total
9.8
13.0
1 Refer to the glossary for definitions of the APMs.
2 Operating income and adjusted operating income (and related measures) for 2022 for the segments have been updated to reflect
changes in the financial reporting structure.
3 ROI% for Corporate and other is not shown, as this is not meaningful.
Adjusted earnings per share*
in \u20ac millions
2022
2023
Profit for the period attributable to shareholders of the
company from continuing operations
388
488
APM adjustments to operating income
81
45
APM adjustment to interest
(10)
44
APM adjustment to income tax
(5)
(13)
Non-controlling interests
(26)
(41)
Adjusted profit from continuing operations attributable
to shareholders of the company*
428
523
Weighted average number of shares (in millions)
174.7
170.6
Adjusted earnings per share from continuing operations (in \u20ac)
2.45
3.07
* Refer to the glossary for definitions of the APMs.
Free cash flow
in \u20ac millions
2022
2023
Net cash generated from/(used for) operating activities
263
1,126
Capital expenditures
(292)
(286)
Free cash flow
(29)
840
", "dimensions": { "concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-427": { "value": "
Information per reportable segment
Revenue (third
parties)3
Amortization
and
depreciation3
Operating
income3
Identified
items1,3
Adjusted
operating
income1,3
EBITDA1,3
Adjusted
EBITDA1,3
ROS%1,2,3
OPI margin
%1,2,3
in \u20ac millions
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
Decorative Paints
4,344
4,300
(154)
(145)
388
500
(5)
\u2014
393
500
542
645
548
645
9.0
11.6
8.9
11.6
Performance Coatings
6,499
6,368
(171)
(170)
448
698
(49)
13
497
685
619
868
668
854
7.6
10.8
6.9
11.0
Corporate and other
3
\u2014
(43)
(42)
(128)
(169)
(27)
(58)
(101)
(111)
(85)
(127)
(59)
(70)
Total
10,846
10,668
(368)
(357)
708
1,029
(81)
(45)
789
1,074
1,076
1,386
1,157
1,429
7.3
10.1
6.5
9.6
1 Refer to the glossary for definitions of the APMs.
2 ROS% and OPI margin for Corporate and other is not shown, as this is not meaningful.
3 Revenue, operating income and adjusted operating income (and related measures) of the segments for 2022 have been updated to reflect changes in the financial reporting structure.
Information per reportable segment
Invested capital
Total assets
Total liabilities
Capital
expenditures1
ROI%1,2,3
in \u20ac millions
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
Decorative Paints
3,604
3,650
5,890
5,835
1,581
1,604
91
99
10.7
13.3
Performance Coatings
3,950
3,641
6,270
6,294
2,083
2,213
167
165
12.8
18.4
Corporate and other
581
555
2,581
2,429
6,529
6,195
34
22
Total
8,135
7,846
14,741
14,558
10,193
10,012
292
286
9.8
13.0
1 Refer to the glossary for the definition of capital expenditures and ROI%.
2 ROI% for Corporate and other is not shown, as this is not meaningful.
3 ROI% for 2022 for the segments has been updated to reflect changes in the financial reporting structure.
Alternative Performance Measures
2022
2023
in \u20ac millions
Continu-
ing
operations
Discon-
tinued
operations
Total
Continu-
ing
operations
Discon-
tinued
operations
Total
Operating income
708
\u2014
708
1,029
\u2014
1,029
APM adjustments to
operating income
Restructuring related costs
80
\u2014
80
89
\u2014
89
Property divestments
\u2014
\u2014
\u2014
(63)
\u2014
(63)
Acquisition related costs
9
\u2014
9
15
\u2014
15
Other
(8)
\u2014
(8)
4
\u2014
4
Total APM adjustments
(Identified items) to
operating income
81
\u2014
81
45
\u2014
45
Adjusted operating income
789
\u2014
789
1,074
\u2014
1,074
Profit for the period
attributable to shareholders
of the company
362
(10)
352
447
(5)
442
Adjustments to operating
income
81
\u2014
81
45
\u2014
45
Adjustments to interest
(10)
\u2014
(10)
44
\u2014
44
Adjustments to income tax
(5)
\u2014
(5)
(13)
\u2014
(13)
Total APM adjustments
66
\u2014
66
76
\u2014
76
Adjusted profit for the
period attributable to
shareholders of the
company
428
(10)
418
523
(5)
518
Adjusted operating income, OPI margin and ROS%
in \u20ac millions
2022
2023
Revenue from third parties1
Decorative Paints
4,344
4,300
Performance Coatings
6,499
6,368
Corporate and other
3
\u2014
Total
10,846
10,668
Operating income1
Decorative Paints
388
500
Performance Coatings
448
698
Corporate and other
(128)
(169)
Total
708
1,029
Total APM adjustments (Identified items) in Operating income1,2
Decorative Paints
(5)
\u2014
Performance Coatings
(49)
13
Corporate and other
(27)
(58)
Total
(81)
(45)
Adjusted operating income1,2
Decorative Paints
393
500
Performance Coatings
497
685
Corporate and other
(101)
(111)
Total
789
1,074
OPI margin%1.2,3
Decorative Paints
8.9
11.6
Performance Coatings
6.9
11.0
Corporate and other
Total
6.5
9.6
ROS%1,2,3
Decorative Paints
9.0
11.6
Performance Coatings
7.6
10.8
Corporate and other
Total
7.3
10.1
1 Revenue, operating income and adjusted operating income (and related measures) for 2022 of the segments have been updated to
reflect changes in the financial reporting structure.
2 Refer to the glossary for definitions of the APMs.
3 OPI margin and ROS% for Corporate and other is not shown, as this is not meaningful.
ROI%1
in \u20ac millions
2022
2023
Average invested capital1
Decorative Paints
3,677
3,755
Performance Coatings
3,895
3,725
Corporate and other
490
753
Total
8,062
8,233
Adjusted operating income1, 2
Decorative Paints
393
500
Performance Coatings
497
685
Corporate and other
(101)
(111)
Total
789
1,074
ROI%3
Decorative Paints
10.7
13.3
Performance Coatings
12.8
18.4
Corporate and other3
Total
9.8
13.0
1 Refer to the glossary for definitions of the APMs.
2 Operating income and adjusted operating income (and related measures) for 2022 for the segments have been updated to reflect
changes in the financial reporting structure.
3 ROI% for Corporate and other is not shown, as this is not meaningful.
* Revenues for 2022 of the business units and the segments have been updated to reflect changes in the financial reporting structure; updates reflect the financial integration of Grupo Orbis into the respective business units in Performance Coatings, and the integration of all
Resins activities in Latin America into Industrial Coatings (refer to Note 3 Segment information).
", "dimensions": { "concept": "ifrs-full:DisclosureOfReclassificationsOrChangesInPresentationExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-429": { "value": "
Note 4: Revenue
AkzoNobel derives revenue from the transfer of goods and services at a point in time and
over time, in the major product lines and geographical regions as disclosed in the table in
this Note.
For the receivables, which are included in Trade and other receivables, reference is made to
Note 16 Trade and other receivables.
As at December 31, 2023, and at December 31, 2022, no significant contract assets were
recognized.
As at December 31, 2023, the amount of contract liabilities deferred to be recognized over
time in 2024 was \u20ac4 million. These contract liabilities primarily relate to shipping, training
and certain technical services, for which revenue is recognized over time. The amount of \u20ac4
million included in contract liabilities at the beginning of the period has been recognized as
revenue during the year 2023 (2022: \u20ac3 million).
Financial integration Grupo Orbis
In 2022, as from the moment of acquisition (April 2022), the Grupo Orbis results related to
Performance Coatings were included in business unit Performance Coatings Other. In
2023, the Grupo Orbis Performance Coatings results have been included in the respective
business units in the Performance Coatings segment. The 2022 comparative figures have
been updated to allow for proper comparison.
Revenue disaggregation
Decorative Paints
Performance Coatings
Other
Total
in \u20ac millions
2022
2023
2022
2023
2022
2023
2022
2023
Primary geographical markets - revenue from third parties
The Netherlands
206
214
110
101
3
\u2014
319
315
Other EMEA countries
2,199
2,199
2,515
2,473
\u2014
\u2014
4,714
4,672
North Asia
564
543
1,164
1,177
\u2014
\u2014
1,728
1,720
South Asia Pacific
608
564
763
740
\u2014
\u2014
1,371
1,304
North America
\u2014
\u2014
1,416
1,379
\u2014
\u2014
1,416
1,379
Latin America*
767
780
531
498
\u2014
\u2014
1,298
1,278
Total
4,344
4,300
6,499
6,368
3
\u2014
10,846
10,668
Major goods/service lines - revenue from third parties
Decorative Paints Europe, Middle East and Africa
2,405
2,413
\u2014
\u2014
\u2014
\u2014
2,405
2,413
Decorative Paints Latin America*
767
780
\u2014
\u2014
\u2014
\u2014
767
780
Decorative Paints China and North Asia
564
543
\u2014
\u2014
\u2014
\u2014
564
543
Decorative Paints South East and South Asia
608
564
\u2014
\u2014
\u2014
\u2014
608
564
Powder Coatings*
\u2014
\u2014
1,385
1,377
\u2014
\u2014
1,385
1,377
Marine and Protective Coatings*
\u2014
\u2014
1,389
1,482
\u2014
\u2014
1,389
1,482
Automotive and Specialty Coatings*
\u2014
\u2014
1,407
1,422
\u2014
\u2014
1,407
1,422
Industrial Coatings*
\u2014
\u2014
2,318
2,087
\u2014
\u2014
2,318
2,087
Corporate and other
\u2014
\u2014
\u2014
\u2014
3
\u2014
3
\u2014
Total
4,344
4,300
6,499
6,368
3
\u2014
10,846
10,668
Timing of revenue recognition
Goods transferred at a point in time
4,257
4,101
6,285
6,288
\u2014
\u2014
10,542
10,389
Services transferred over time
87
199
214
80
3
\u2014
304
279
Total
4,344
4,300
6,499
6,368
3
\u2014
10,846
10,668
* Revenues for 2022 of the business units and the segments have been updated to reflect changes in the financial reporting structure; updates reflect the financial integration of Grupo Orbis into the respective business units in Performance Coatings, and the integration of all
Resins activities in Latin America into Industrial Coatings (refer to Note 3 Segment information).
", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-428": { "value": "
Note 4: Revenue
AkzoNobel derives revenue from the transfer of goods and services at a point in time and
over time, in the major product lines and geographical regions as disclosed in the table in
this Note.
For the receivables, which are included in Trade and other receivables, reference is made to
Note 16 Trade and other receivables.
As at December 31, 2023, and at December 31, 2022, no significant contract assets were
recognized.
As at December 31, 2023, the amount of contract liabilities deferred to be recognized over
time in 2024 was \u20ac4 million. These contract liabilities primarily relate to shipping, training
and certain technical services, for which revenue is recognized over time. The amount of \u20ac4
million included in contract liabilities at the beginning of the period has been recognized as
revenue during the year 2023 (2022: \u20ac3 million).
Financial integration Grupo Orbis
In 2022, as from the moment of acquisition (April 2022), the Grupo Orbis results related to
Performance Coatings were included in business unit Performance Coatings Other. In
2023, the Grupo Orbis Performance Coatings results have been included in the respective
business units in the Performance Coatings segment. The 2022 comparative figures have
been updated to allow for proper comparison.
Revenue disaggregation
Decorative Paints
Performance Coatings
Other
Total
in \u20ac millions
2022
2023
2022
2023
2022
2023
2022
2023
Primary geographical markets - revenue from third parties
The Netherlands
206
214
110
101
3
\u2014
319
315
Other EMEA countries
2,199
2,199
2,515
2,473
\u2014
\u2014
4,714
4,672
North Asia
564
543
1,164
1,177
\u2014
\u2014
1,728
1,720
South Asia Pacific
608
564
763
740
\u2014
\u2014
1,371
1,304
North America
\u2014
\u2014
1,416
1,379
\u2014
\u2014
1,416
1,379
Latin America*
767
780
531
498
\u2014
\u2014
1,298
1,278
Total
4,344
4,300
6,499
6,368
3
\u2014
10,846
10,668
Major goods/service lines - revenue from third parties
Decorative Paints Europe, Middle East and Africa
2,405
2,413
\u2014
\u2014
\u2014
\u2014
2,405
2,413
Decorative Paints Latin America*
767
780
\u2014
\u2014
\u2014
\u2014
767
780
Decorative Paints China and North Asia
564
543
\u2014
\u2014
\u2014
\u2014
564
543
Decorative Paints South East and South Asia
608
564
\u2014
\u2014
\u2014
\u2014
608
564
Powder Coatings*
\u2014
\u2014
1,385
1,377
\u2014
\u2014
1,385
1,377
Marine and Protective Coatings*
\u2014
\u2014
1,389
1,482
\u2014
\u2014
1,389
1,482
Automotive and Specialty Coatings*
\u2014
\u2014
1,407
1,422
\u2014
\u2014
1,407
1,422
Industrial Coatings*
\u2014
\u2014
2,318
2,087
\u2014
\u2014
2,318
2,087
Corporate and other
\u2014
\u2014
\u2014
\u2014
3
\u2014
3
\u2014
Total
4,344
4,300
6,499
6,368
3
\u2014
10,846
10,668
Timing of revenue recognition
Goods transferred at a point in time
4,257
4,101
6,285
6,288
\u2014
\u2014
10,542
10,389
Services transferred over time
87
199
214
80
3
\u2014
304
279
Total
4,344
4,300
6,499
6,368
3
\u2014
10,846
10,668
* Revenues for 2022 of the business units and the segments have been updated to reflect changes in the financial reporting structure; updates reflect the financial integration of Grupo Orbis into the respective business units in Performance Coatings, and the integration of all
Resins activities in Latin America into Industrial Coatings (refer to Note 3 Segment information).
", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-430": { "value": "
Note 5: Operating income
Operating income
Operating income increased 45% to \u20ac1,029 million (2022:
\u20ac708 million), with a rebound in gross margins more than
offsetting operating cost inflation. OPI margin improved to
9.6% (2022: 6.5%).
Costs by nature 2023
in \u20ac millions
Employee
benefits
Amortization
Depreciation
Purchases and
other costs
Total
Cost of sales
(550)
(1)
(150)
(5,733)
(6,434)
Selling and distribution expenses
(991)
(52)
(94)
(1,210)
(2,347)
General and administrative expenses
(279)
(22)
(19)
(328)
(648)
Research and development expenses
(186)
(5)
(14)
(65)
(270)
Other results
(2)
\u2014
\u2014
62
60
Total
(2,008)
(80)
(277)
(7,274)
(9,639)
Costs by nature 2022
in \u20ac millions
Employee
benefits
Amortization
Depreciation
Purchases and
other costs
Total
Cost of sales
(550)
(1)
(152)
(6,220)
(6,923)
Selling and distribution expenses
(965)
(57)
(93)
(1,193)
(2,308)
General and administrative expenses
(263)
(24)
(24)
(338)
(649)
Research and development expenses
(182)
(5)
(12)
(59)
(258)
Other results
\u2014
\u2014
\u2014
\u2014
\u2014
Total
(1,960)
(87)
(281)
(7,810)
(10,138)
", "dimensions": { "concept": "ifrs-full:DisclosureOfProfitLossFromOperatingActivitiesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-436": { "value": "
Costs by nature 2023
in \u20ac millions
Employee
benefits
Amortization
Depreciation
Purchases and
other costs
Total
Cost of sales
(550)
(1)
(150)
(5,733)
(6,434)
Selling and distribution expenses
(991)
(52)
(94)
(1,210)
(2,347)
General and administrative expenses
(279)
(22)
(19)
(328)
(648)
Research and development expenses
(186)
(5)
(14)
(65)
(270)
Other results
(2)
\u2014
\u2014
62
60
Total
(2,008)
(80)
(277)
(7,274)
(9,639)
Costs by nature 2022
in \u20ac millions
Employee
benefits
Amortization
Depreciation
Purchases and
other costs
Total
Cost of sales
(550)
(1)
(152)
(6,220)
(6,923)
Selling and distribution expenses
(965)
(57)
(93)
(1,193)
(2,308)
General and administrative expenses
(263)
(24)
(24)
(338)
(649)
Research and development expenses
(182)
(5)
(12)
(59)
(258)
Other results
\u2014
\u2014
\u2014
\u2014
\u2014
Total
(1,960)
(87)
(281)
(7,810)
(10,138)
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralAndAdministrativeExpenseExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-435": { "value": "
Costs by nature 2023
in \u20ac millions
Employee
benefits
Amortization
Depreciation
Purchases and
other costs
Total
Cost of sales
(550)
(1)
(150)
(5,733)
(6,434)
Selling and distribution expenses
(991)
(52)
(94)
(1,210)
(2,347)
General and administrative expenses
(279)
(22)
(19)
(328)
(648)
Research and development expenses
(186)
(5)
(14)
(65)
(270)
Other results
(2)
\u2014
\u2014
62
60
Total
(2,008)
(80)
(277)
(7,274)
(9,639)
Costs by nature 2022
in \u20ac millions
Employee
benefits
Amortization
Depreciation
Purchases and
other costs
Total
Cost of sales
(550)
(1)
(152)
(6,220)
(6,923)
Selling and distribution expenses
(965)
(57)
(93)
(1,193)
(2,308)
General and administrative expenses
(263)
(24)
(24)
(338)
(649)
Research and development expenses
(182)
(5)
(12)
(59)
(258)
Other results
\u2014
\u2014
\u2014
\u2014
\u2014
Total
(1,960)
(87)
(281)
(7,810)
(10,138)
", "dimensions": { "concept": "ifrs-full:DisclosureOfResearchAndDevelopmentExpenseExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-434": { "value": "
Costs by nature 2023
in \u20ac millions
Employee
benefits
Amortization
Depreciation
Purchases and
other costs
Total
Cost of sales
(550)
(1)
(150)
(5,733)
(6,434)
Selling and distribution expenses
(991)
(52)
(94)
(1,210)
(2,347)
General and administrative expenses
(279)
(22)
(19)
(328)
(648)
Research and development expenses
(186)
(5)
(14)
(65)
(270)
Other results
(2)
\u2014
\u2014
62
60
Total
(2,008)
(80)
(277)
(7,274)
(9,639)
Costs by nature 2022
in \u20ac millions
Employee
benefits
Amortization
Depreciation
Purchases and
other costs
Total
Cost of sales
(550)
(1)
(152)
(6,220)
(6,923)
Selling and distribution expenses
(965)
(57)
(93)
(1,193)
(2,308)
General and administrative expenses
(263)
(24)
(24)
(338)
(649)
Research and development expenses
(182)
(5)
(12)
(59)
(258)
Other results
\u2014
\u2014
\u2014
\u2014
\u2014
Total
(1,960)
(87)
(281)
(7,810)
(10,138)
", "dimensions": { "concept": "ifrs-full:DisclosureOfCostOfSalesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-433": { "value": "
Costs by nature 2023
in \u20ac millions
Employee
benefits
Amortization
Depreciation
Purchases and
other costs
Total
Cost of sales
(550)
(1)
(150)
(5,733)
(6,434)
Selling and distribution expenses
(991)
(52)
(94)
(1,210)
(2,347)
General and administrative expenses
(279)
(22)
(19)
(328)
(648)
Research and development expenses
(186)
(5)
(14)
(65)
(270)
Other results
(2)
\u2014
\u2014
62
60
Total
(2,008)
(80)
(277)
(7,274)
(9,639)
Costs by nature 2022
in \u20ac millions
Employee
benefits
Amortization
Depreciation
Purchases and
other costs
Total
Cost of sales
(550)
(1)
(152)
(6,220)
(6,923)
Selling and distribution expenses
(965)
(57)
(93)
(1,193)
(2,308)
General and administrative expenses
(263)
(24)
(24)
(338)
(649)
Research and development expenses
(182)
(5)
(12)
(59)
(258)
Other results
\u2014
\u2014
\u2014
\u2014
\u2014
Total
(1,960)
(87)
(281)
(7,810)
(10,138)
", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-432": { "value": "
Costs by nature 2023
in \u20ac millions
Employee
benefits
Amortization
Depreciation
Purchases and
other costs
Total
Cost of sales
(550)
(1)
(150)
(5,733)
(6,434)
Selling and distribution expenses
(991)
(52)
(94)
(1,210)
(2,347)
General and administrative expenses
(279)
(22)
(19)
(328)
(648)
Research and development expenses
(186)
(5)
(14)
(65)
(270)
Other results
(2)
\u2014
\u2014
62
60
Total
(2,008)
(80)
(277)
(7,274)
(9,639)
Costs by nature 2022
in \u20ac millions
Employee
benefits
Amortization
Depreciation
Purchases and
other costs
Total
Cost of sales
(550)
(1)
(152)
(6,220)
(6,923)
Selling and distribution expenses
(965)
(57)
(93)
(1,193)
(2,308)
General and administrative expenses
(263)
(24)
(24)
(338)
(649)
Research and development expenses
(182)
(5)
(12)
(59)
(258)
Other results
\u2014
\u2014
\u2014
\u2014
\u2014
Total
(1,960)
(87)
(281)
(7,810)
(10,138)
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesByNatureExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-431": { "value": "
Costs by nature 2023
in \u20ac millions
Employee
benefits
Amortization
Depreciation
Purchases and
other costs
Total
Cost of sales
(550)
(1)
(150)
(5,733)
(6,434)
Selling and distribution expenses
(991)
(52)
(94)
(1,210)
(2,347)
General and administrative expenses
(279)
(22)
(19)
(328)
(648)
Research and development expenses
(186)
(5)
(14)
(65)
(270)
Other results
(2)
\u2014
\u2014
62
60
Total
(2,008)
(80)
(277)
(7,274)
(9,639)
Costs by nature 2022
in \u20ac millions
Employee
benefits
Amortization
Depreciation
Purchases and
other costs
Total
Cost of sales
(550)
(1)
(152)
(6,220)
(6,923)
Selling and distribution expenses
(965)
(57)
(93)
(1,193)
(2,308)
General and administrative expenses
(263)
(24)
(24)
(338)
(649)
Research and development expenses
(182)
(5)
(12)
(59)
(258)
Other results
\u2014
\u2014
\u2014
\u2014
\u2014
Total
(1,960)
(87)
(281)
(7,810)
(10,138)
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-437": { "value": "
Note 6: Employee benefits
Salaries, wages and other employee benefits in operating income
in \u20ac millions
2022
2023
Salaries and wages
(1,517)
(1,573)
Post-retirement cost
(146)
(138)
Other social charges
(297)
(297)
Total
(1,960)
(2,008)
Average number of employees total AkzoNobel
Average number during the year
2022
2023
Decorative Paints
13,800
14,200
Performance Coatings
18,000
17,400
Corporate and other
3,300
3,300
Total
35,100
34,900
Average number of employees in the Netherlands
Average number during the year
2022
2023
Decorative Paints
600
600
Performance Coatings
1,100
1,100
Corporate and other
700
700
Total
2,400
2,400
Number of employees
At year-end
2022
2023
Decorative Paints
14,000
14,300
Performance Coatings
17,900
17,500
Corporate and other
3,300
3,400
Total
35,200
35,200
The average number of employees working outside the Netherlands was 32,500 (2022:
32,700). In 2023, the number of employees remained stable at 35,200 people (year-end
2022: 35,200 people). Acquisitions in 2023 added around 200 people.
Share-based compensation
Share-based compensation relates to the equity-settled performance-related share plan
and the restricted share plans, as well as the share-matching plan. Charges recognized in
the 2023 statement of income for share-based compensation amounted to \u20ac18 million and
are included in salaries and wages (2022: \u20ac16 million).
Performance-related and restricted share plans
Under the performance-related share plan and the restricted share plans, a number of
conditional shares are granted to the members of the Board of Management, members of
the Executive Committee, executives and certain other employee categories each year. The
number of participants of the performance-related share plan and the restricted share plans
at year-end 2023 was 666 (2022: 616). The shares of the performance-related and
restricted share plan series 2020-2022 have vested and were delivered to the participants
in 2023.
The performance targets for the conditional grant of performance-related shares of the
current plans for the Board of Management and the Executive Committee (series
2021-2023, 2022-2024 and 2023-2025) are linked to revenue growth (20%), adjusted
EBITDA (40%), ROI ( 20%), and Environmental, Social and Governance (ESG) KPIs (20%).
A\u00a0two-year holding restriction after vesting applies.
The plans for the executives and certain non-executive employee categories are restricted
share plans without any performance conditions, whereby the conditional grant of shares
will vest upon the condition that they remain in service with the company during the three-
year vesting period. A one-year holding restriction after vesting applies for the executives.
The conditional shares of the 2021-2023 performance share plan for the AkzoNobel
participants vested for 12.30% (series 2020-2022: 0%), including dividend shares of 7.42%
(series 2020-2022: 7.33%), the final vesting percentage amounted to 13.21% (series
2020-2022: 0%).
The share price of a common AkzoNobel share at year end 2023 amounted to \u20ac74.82
(2022: \u20ac62.56).
Fair value of restricted and performance-related shares
The fair value of the restricted shares of the 2023-2025 grant to executives, amounting to
\u20ac68.78, is based on the opening share price on April 26, 2023, of \u20ac74.56 and the expected
dividend yield of 2.66%.
The fair value of the restricted shares of the 2023-2025 grant to non-executives, amounting
to \u20ac69.00, is based on the opening share price on July 3, 2023 of \u20ac 74.78 and the
expected dividend yield of 2.65%.
The fair value of the performance-related 2023-2025 grant, based on the opening share
price on February 23, 2023, amounts to \u20ac69.26. For a later grant under this program, this
was based on the opening share price on July\u00a03, 2023, of \u20ac74.78.
Fair value performance-related shares in \u20ac
Series
Opening share
price per:
Fair
Value
Market
condition
(TSR)5
Non-market
based
performance
conditions6
Share
price
Expected
volatility
Risk free
interest
rate
2020 - 2022
April 21, 20201
53.42
42.95
63.88
63.88
21.42%
(0.33)%
2021 - 2023
April 22, 20212
103.20
NA
103.20
103.20
NA
NA
2022 - 2024
February 23, 2022
88.28
NA
88.28
88.28
NA
NA
2022 - 2024
October 3, 20223
57.70
NA
57.70
57.70
NA
NA
2023 - 2025
February 23, 2023
69.26
NA
69.26
69.26
NA
NA
2023 - 2025
July 3, 20234
74.78
NA
74.78
74.78
NA
NA
1 Date on which the Supervisory Board approved the use of the average share price calculation method to determine the number of
shares granted.
2\u00a0 Date of the AGM at which the new LTI performance criteria for the Board of Management were approved.
3\u00a0 Date on which Mr. Poux-Guillaume started working for AkzoNobel.
4\u00a0 Date on which Mr. Sohet started working for AkzoNobel.
5 50% for the 2020-2022 grant, no longer applicable as from the 2021-2023 grant.
6 50% for the 2020-2022 grant, 100% as from the 2021-2023 grant.
Share-matching plan
The members of the Board of Management and the members of the Executive Committee
are eligible to participate in the share-matching plan. Under certain conditions, members
who invest part of their short-term incentive payment in AkzoNobel shares may have such
shares matched by the company one-on-one. During 2023, no potential matching shares
were matched as the members of the Board of Management and the members of the
Executive Committee were not eligible for matching shares on the 2020 series. However, in
2023, the 2,708 potential matching shares that were granted to Thierry Vanlancker were
pro-rated, resulting in 903 potential matching shares. These shares were matched upon
termination of the management agreement in April 2023. In 2023, the members of the
Board of Management and the members of the Executive Committee invested part of their
2022 short-term incentive in AkzoNobel shares, leading to 2,545 potential matching shares.
The total number of matching shares outstanding per December 31, 2023, is 3,626. For an
overview of the matching shares outstanding for the members of the Board of Management
per December 31, 2023, we refer to the Remuneration report.
Fair value of matching shares
The fair value of the matching shares of \u20ac68.78 was based on the opening share price on
the investment date of April\u00a026, 2023, being \u20ac74.56, discounted for expected dividends
over the holding period (dividend yield: 2.66%).
Share plans of AkzoNobel employees
Share plan
Performance/
Vesting
period
Award
date
Vesting
date
End of
holding
period
Balance at
January 1,
2023
Awarded
in 2023
Vested in
2023
Forfeited
in 2023
Dividend
in
2023
Subject to
performance
condition
Unvested
in 2023
Subject to
holding
period
Balance at
December
31, 2023
2020 \u2013 2022 Restricted Share Plan E1
3 years
1/1/2020
1/1/2023
1/1/2024
136,401
\u2014
(136,401)
\u2014
\u2014
NA
\u2014
136,401
\u2014
2020 \u2013 2022 Performance Share Plan2
3 years
1/1/2020
1/1/2023
1/1/2025
10,972
\u2014
(10,972)
\u2014
\u2014
\u2014
\u2014
10,972
\u2014
2020 \u2013 2022 Restricted Share Plan NE1
3 years
1/4/2020
1/4/2023
NA
5,680
\u2014
(5,680)
\u2014
\u2014
NA
\u2014
\u2014
\u2014
2021 \u2013 2023 Restricted Share Plan E1
3 years
1/4/2021
1/4/2024
1/4/2025
154,950
240
(10,127)
(14,208)
\u2014
NA
130,855
130,855
130,855
2021 \u2013 2023 Performance Share Plan
3 years
1/1/2021
1/1/2024
1/1/2026
61,689
\u2014
\u2014
(54,716)
1,690
8,663
8,663
8,663
8,663
2021 \u2013 2023 Restricted Share Plan NE1
3 years
1/4/2021
1/4/2024
NA
25,580
\u2014
(480)
(1,080)
\u2014
NA
24,020
\u2014
24,020
2022 \u2013 2024 Restricted Share Plan E1
3 years
1/4/2022
1/4/2025
1/4/2026
170,994
240
(6,777)
(21,032)
\u2014
NA
143,425
143,425
143,425
2022 \u2013 2024 Performance Share Plan
3 years
1/1/2022
1/1/2025
1/1/2027
87,008
\u2014
\u2014
(25,946)
985
62,047
62,047
62,047
62,047
2022 \u2013 2024 Restricted Share Plan NE1
3 years
1/4/2022
1/4/2025
NA
47,182
390
(335)
(3,020)
\u2014
NA
44,217
\u2014
44,217
2023 \u2013 2025 Restricted Share Plan E1
3 years
1/4/2023
1/4/2026
1/4/2027
\u2014
247,214
(443)
(21,026)
\u2014
NA
225,745
225,745
225,745
2023 \u2013 2025 Performance Share Plan
3 years
1/1/2023
1/1/2026
1/1/2028
\u2014
108,147
\u2014
(6,147)
2,795
104,795
104,795
104,795
104,795
2023 \u2013 2025 Restricted Share Plan NE1
3 years
1/4/2023
1/4/2026
NA
\u2014
64,050
\u2014
(1,025)
\u2014
NA
63,025
\u2014
63,025
Total
700,456
420,281
(171,215)
(148,200)
5,470
175,505
806,792
822,903
806,792
1 E means executive plan; NE means non-executive plan.
2 Shares vested since AkzoNobel is legally bound to an agreement with a former member of the Executive Committee regarding the vesting of shares for this individual, as well as a
conditional share grant awarded to new Executive Committee ,members at the time of their hiring, who received these grants as buy-out from the contract at their previous employer.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-438": { "value": "
Salaries, wages and other employee benefits in operating income
in \u20ac millions
2022
2023
Salaries and wages
(1,517)
(1,573)
Post-retirement cost
(146)
(138)
Other social charges
(297)
(297)
Total
(1,960)
(2,008)
Average number of employees total AkzoNobel
Average number during the year
2022
2023
Decorative Paints
13,800
14,200
Performance Coatings
18,000
17,400
Corporate and other
3,300
3,300
Total
35,100
34,900
Average number of employees in the Netherlands
Average number during the year
2022
2023
Decorative Paints
600
600
Performance Coatings
1,100
1,100
Corporate and other
700
700
Total
2,400
2,400
Number of employees
At year-end
2022
2023
Decorative Paints
14,000
14,300
Performance Coatings
17,900
17,500
Corporate and other
3,300
3,400
Total
35,200
35,200
The average number of employees working outside the Netherlands was 32,500 (2022:
32,700). In 2023, the number of employees remained stable at 35,200 people (year-end
2022: 35,200 people). Acquisitions in 2023 added around 200 people.", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-439": { "value": "
Share-based compensation
Share-based compensation relates to the equity-settled performance-related share plan
and the restricted share plans, as well as the share-matching plan. Charges recognized in
the 2023 statement of income for share-based compensation amounted to \u20ac18 million and
are included in salaries and wages (2022: \u20ac16 million).
Performance-related and restricted share plans
Under the performance-related share plan and the restricted share plans, a number of
conditional shares are granted to the members of the Board of Management, members of
the Executive Committee, executives and certain other employee categories each year. The
number of participants of the performance-related share plan and the restricted share plans
at year-end 2023 was 666 (2022: 616). The shares of the performance-related and
restricted share plan series 2020-2022 have vested and were delivered to the participants
in 2023.
The performance targets for the conditional grant of performance-related shares of the
current plans for the Board of Management and the Executive Committee (series
2021-2023, 2022-2024 and 2023-2025) are linked to revenue growth (20%), adjusted
EBITDA (40%), ROI ( 20%), and Environmental, Social and Governance (ESG) KPIs (20%).
A\u00a0two-year holding restriction after vesting applies.
The plans for the executives and certain non-executive employee categories are restricted
share plans without any performance conditions, whereby the conditional grant of shares
will vest upon the condition that they remain in service with the company during the three-
year vesting period. A one-year holding restriction after vesting applies for the executives.
The conditional shares of the 2021-2023 performance share plan for the AkzoNobel
participants vested for 12.30% (series 2020-2022: 0%), including dividend shares of 7.42%
(series 2020-2022: 7.33%), the final vesting percentage amounted to 13.21% (series
2020-2022: 0%).
The share price of a common AkzoNobel share at year end 2023 amounted to \u20ac74.82
(2022: \u20ac62.56).
Fair value of restricted and performance-related shares
The fair value of the restricted shares of the 2023-2025 grant to executives, amounting to
\u20ac68.78, is based on the opening share price on April 26, 2023, of \u20ac74.56 and the expected
dividend yield of 2.66%.
The fair value of the restricted shares of the 2023-2025 grant to non-executives, amounting
to \u20ac69.00, is based on the opening share price on July 3, 2023 of \u20ac 74.78 and the
expected dividend yield of 2.65%.
The fair value of the performance-related 2023-2025 grant, based on the opening share
price on February 23, 2023, amounts to \u20ac69.26. For a later grant under this program, this
was based on the opening share price on July\u00a03, 2023, of \u20ac74.78.
Fair value performance-related shares in \u20ac
Series
Opening share
price per:
Fair
Value
Market
condition
(TSR)5
Non-market
based
performance
conditions6
Share
price
Expected
volatility
Risk free
interest
rate
2020 - 2022
April 21, 20201
53.42
42.95
63.88
63.88
21.42%
(0.33)%
2021 - 2023
April 22, 20212
103.20
NA
103.20
103.20
NA
NA
2022 - 2024
February 23, 2022
88.28
NA
88.28
88.28
NA
NA
2022 - 2024
October 3, 20223
57.70
NA
57.70
57.70
NA
NA
2023 - 2025
February 23, 2023
69.26
NA
69.26
69.26
NA
NA
2023 - 2025
July 3, 20234
74.78
NA
74.78
74.78
NA
NA
1 Date on which the Supervisory Board approved the use of the average share price calculation method to determine the number of
shares granted.
2\u00a0 Date of the AGM at which the new LTI performance criteria for the Board of Management were approved.
3\u00a0 Date on which Mr. Poux-Guillaume started working for AkzoNobel.
4\u00a0 Date on which Mr. Sohet started working for AkzoNobel.
5 50% for the 2020-2022 grant, no longer applicable as from the 2021-2023 grant.
6 50% for the 2020-2022 grant, 100% as from the 2021-2023 grant.
Share-matching plan
The members of the Board of Management and the members of the Executive Committee
are eligible to participate in the share-matching plan. Under certain conditions, members
who invest part of their short-term incentive payment in AkzoNobel shares may have such
shares matched by the company one-on-one. During 2023, no potential matching shares
were matched as the members of the Board of Management and the members of the
Executive Committee were not eligible for matching shares on the 2020 series. However, in
2023, the 2,708 potential matching shares that were granted to Thierry Vanlancker were
pro-rated, resulting in 903 potential matching shares. These shares were matched upon
termination of the management agreement in April 2023. In 2023, the members of the
Board of Management and the members of the Executive Committee invested part of their
2022 short-term incentive in AkzoNobel shares, leading to 2,545 potential matching shares.
The total number of matching shares outstanding per December 31, 2023, is 3,626. For an
overview of the matching shares outstanding for the members of the Board of Management
per December 31, 2023, we refer to the Remuneration report.
Fair value of matching shares
The fair value of the matching shares of \u20ac68.78 was based on the opening share price on
the investment date of April\u00a026, 2023, being \u20ac74.56, discounted for expected dividends
over the holding period (dividend yield: 2.66%).
Share plans of AkzoNobel employees
Share plan
Performance/
Vesting
period
Award
date
Vesting
date
End of
holding
period
Balance at
January 1,
2023
Awarded
in 2023
Vested in
2023
Forfeited
in 2023
Dividend
in
2023
Subject to
performance
condition
Unvested
in 2023
Subject to
holding
period
Balance at
December
31, 2023
2020 \u2013 2022 Restricted Share Plan E1
3 years
1/1/2020
1/1/2023
1/1/2024
136,401
\u2014
(136,401)
\u2014
\u2014
NA
\u2014
136,401
\u2014
2020 \u2013 2022 Performance Share Plan2
3 years
1/1/2020
1/1/2023
1/1/2025
10,972
\u2014
(10,972)
\u2014
\u2014
\u2014
\u2014
10,972
\u2014
2020 \u2013 2022 Restricted Share Plan NE1
3 years
1/4/2020
1/4/2023
NA
5,680
\u2014
(5,680)
\u2014
\u2014
NA
\u2014
\u2014
\u2014
2021 \u2013 2023 Restricted Share Plan E1
3 years
1/4/2021
1/4/2024
1/4/2025
154,950
240
(10,127)
(14,208)
\u2014
NA
130,855
130,855
130,855
2021 \u2013 2023 Performance Share Plan
3 years
1/1/2021
1/1/2024
1/1/2026
61,689
\u2014
\u2014
(54,716)
1,690
8,663
8,663
8,663
8,663
2021 \u2013 2023 Restricted Share Plan NE1
3 years
1/4/2021
1/4/2024
NA
25,580
\u2014
(480)
(1,080)
\u2014
NA
24,020
\u2014
24,020
2022 \u2013 2024 Restricted Share Plan E1
3 years
1/4/2022
1/4/2025
1/4/2026
170,994
240
(6,777)
(21,032)
\u2014
NA
143,425
143,425
143,425
2022 \u2013 2024 Performance Share Plan
3 years
1/1/2022
1/1/2025
1/1/2027
87,008
\u2014
\u2014
(25,946)
985
62,047
62,047
62,047
62,047
2022 \u2013 2024 Restricted Share Plan NE1
3 years
1/4/2022
1/4/2025
NA
47,182
390
(335)
(3,020)
\u2014
NA
44,217
\u2014
44,217
2023 \u2013 2025 Restricted Share Plan E1
3 years
1/4/2023
1/4/2026
1/4/2027
\u2014
247,214
(443)
(21,026)
\u2014
NA
225,745
225,745
225,745
2023 \u2013 2025 Performance Share Plan
3 years
1/1/2023
1/1/2026
1/1/2028
\u2014
108,147
\u2014
(6,147)
2,795
104,795
104,795
104,795
104,795
2023 \u2013 2025 Restricted Share Plan NE1
3 years
1/4/2023
1/4/2026
NA
\u2014
64,050
\u2014
(1,025)
\u2014
NA
63,025
\u2014
63,025
Total
700,456
420,281
(171,215)
(148,200)
5,470
175,505
806,792
822,903
806,792
1 E means executive plan; NE means non-executive plan.
2 Shares vested since AkzoNobel is legally bound to an agreement with a former member of the Executive Committee regarding the vesting of shares for this individual, as well as a
conditional share grant awarded to new Executive Committee ,members at the time of their hiring, who received these grants as buy-out from the contract at their previous employer.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-445": { "value": "
Note 7: Financing income and expenses
Financing income and expenses
in \u20ac millions
2022
2023
Interest on net debt
Financing income
19
69
Financing expenses
(106)
(192)
Net interest on net debt
(87)
(123)
Other interest
Financing income related to post- retirement benefits
18
33
Interest on provisions
17
(1)
Exchange rate results
(65)
(128)
Hyperinflation: net gain/(loss) on monetary position
(20)
(46)
Other items
13
(7)
Net other financing credit/(charges)
(37)
(149)
Total financing income and expenses
(124)
(272)
Net financing expenses for the year were \u20ac272 million (2022 : \u20ac124 million). Significant
variances are:
\u2022 Net interest on net debt increased by \u20ac36 million to a \u20ac123 million charge (2022: \u20ac87
million); higher interest rates impacted both financing income and financing expenses
\u2022 Financing income related to post-retirement benefits increased by \u20ac15 million to \u20ac33
million (2022: \u20ac18 million) mainly as a result of higher discount rates. Interest income
from financial assets measured at amortized cost (including the loan to Pension Fund
APF in the Netherlands) amounted to approximately \u20ac5 million in both years. The
remainder was generated by financial assets measured at fair value through profit and
loss
\u2022 Interest income on provisions decreased by \u20ac18 million to negative \u20ac1 million (2022:
\u20ac17 million) due to the impact on discounting from changes in discount rates
\u2022 Exchange rate results were negative \u20ac128 million (2022: negative \u20ac65 million) and
contain \u20ac36 million negative result on cash flow hedging contracts, related to the
previously anticipated acquisition of Kansai Paints Africa (refer to Note 26 Financial risk
management for more details)
\u2022 Hyperinflation: the net loss on monetary position increased by \u20ac26 million to \u20ac46 million
\u2022 Other items decreased by \u20ac20 million, mainly due to \u20ac10 million interest income from
the UK ACT case which was included in 2022 (refer to Note 3 Segment information for
more details)
The average interest rate used for capitalized interest was 2.1% (2022: 1.7%). Capitalized
interest was negligible in both 2023 and 2022. The average interest rate on total debt was
3.2% (2022: 2.1%).
Impact hyperinflation accounting
We have applied IAS 29 \"Financial Reporting in Hyperinflationary Economies\" for T\u00fcrkiye as
from January 1, 2022. For Argentina, hyperinflation accounting was already applied as from
January 1, 2018. In addition, and in line with IAS 21 \"The Effects of Changes in Foreign
Exchange Rates\", end of period rates are used to translate both the balance sheet and the
statement of income into euros.
For T\u00fcrkiye, the revaluation effect on the non-monetary assets at January 1, 2022, was \u20ac16
million positive (after taxes), recorded as a restatement to opening shareholders\u2019 equity. In
addition, the opening balance of intangible assets has been restated by \u20ac1 million (refer to
Note 10 Intangible assets) and the opening balance of property, plant and equipment has
been restated by \u20ac15 million (refer to Note 11 Property, plant and equipment). Refer to
Note 8 Income tax for the related opening balance impact on deferred taxes.
The impact of the application of hyperinflation accounting and the use of end of period
rates to translate the statement of the income statement is shown in the table below.
Hyperinflation accounting
in \u20ac millions
2022
2023
Revenue
5
(64)
Operating income
(46)
(54)
Net interest on net debt
0
17
Exchange rate results
4
54
Hyperinflation: net gain/(loss) on monetary position
(20)
(46)
Financing income and expenses
(16)
25
Profit before tax
(62)
(29)
Income tax
(12)
(48)
Profit for the period
(74)
(77)
Attributable to
Shareholders of the company
(63)
(65)
Non-controlling interests
(11)
(12)
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-444": { "value": "
Note 7: Financing income and expenses
Financing income and expenses
in \u20ac millions
2022
2023
Interest on net debt
Financing income
19
69
Financing expenses
(106)
(192)
Net interest on net debt
(87)
(123)
Other interest
Financing income related to post- retirement benefits
18
33
Interest on provisions
17
(1)
Exchange rate results
(65)
(128)
Hyperinflation: net gain/(loss) on monetary position
(20)
(46)
Other items
13
(7)
Net other financing credit/(charges)
(37)
(149)
Total financing income and expenses
(124)
(272)
Net financing expenses for the year were \u20ac272 million (2022 : \u20ac124 million). Significant
variances are:
\u2022 Net interest on net debt increased by \u20ac36 million to a \u20ac123 million charge (2022: \u20ac87
million); higher interest rates impacted both financing income and financing expenses
\u2022 Financing income related to post-retirement benefits increased by \u20ac15 million to \u20ac33
million (2022: \u20ac18 million) mainly as a result of higher discount rates. Interest income
from financial assets measured at amortized cost (including the loan to Pension Fund
APF in the Netherlands) amounted to approximately \u20ac5 million in both years. The
remainder was generated by financial assets measured at fair value through profit and
loss
\u2022 Interest income on provisions decreased by \u20ac18 million to negative \u20ac1 million (2022:
\u20ac17 million) due to the impact on discounting from changes in discount rates
\u2022 Exchange rate results were negative \u20ac128 million (2022: negative \u20ac65 million) and
contain \u20ac36 million negative result on cash flow hedging contracts, related to the
previously anticipated acquisition of Kansai Paints Africa (refer to Note 26 Financial risk
management for more details)
\u2022 Hyperinflation: the net loss on monetary position increased by \u20ac26 million to \u20ac46 million
\u2022 Other items decreased by \u20ac20 million, mainly due to \u20ac10 million interest income from
the UK ACT case which was included in 2022 (refer to Note 3 Segment information for
more details)
The average interest rate used for capitalized interest was 2.1% (2022: 1.7%). Capitalized
interest was negligible in both 2023 and 2022. The average interest rate on total debt was
3.2% (2022: 2.1%).
Impact hyperinflation accounting
We have applied IAS 29 \"Financial Reporting in Hyperinflationary Economies\" for T\u00fcrkiye as
from January 1, 2022. For Argentina, hyperinflation accounting was already applied as from
January 1, 2018. In addition, and in line with IAS 21 \"The Effects of Changes in Foreign
Exchange Rates\", end of period rates are used to translate both the balance sheet and the
statement of income into euros.
For T\u00fcrkiye, the revaluation effect on the non-monetary assets at January 1, 2022, was \u20ac16
million positive (after taxes), recorded as a restatement to opening shareholders\u2019 equity. In
addition, the opening balance of intangible assets has been restated by \u20ac1 million (refer to
Note 10 Intangible assets) and the opening balance of property, plant and equipment has
been restated by \u20ac15 million (refer to Note 11 Property, plant and equipment). Refer to
Note 8 Income tax for the related opening balance impact on deferred taxes.
The impact of the application of hyperinflation accounting and the use of end of period
rates to translate the statement of the income statement is shown in the table below.
Hyperinflation accounting
in \u20ac millions
2022
2023
Revenue
5
(64)
Operating income
(46)
(54)
Net interest on net debt
0
17
Exchange rate results
4
54
Hyperinflation: net gain/(loss) on monetary position
(20)
(46)
Financing income and expenses
(16)
25
Profit before tax
(62)
(29)
Income tax
(12)
(48)
Profit for the period
(74)
(77)
Attributable to
Shareholders of the company
(63)
(65)
Non-controlling interests
(11)
(12)
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-443": { "value": "
Note 7: Financing income and expenses
Financing income and expenses
in \u20ac millions
2022
2023
Interest on net debt
Financing income
19
69
Financing expenses
(106)
(192)
Net interest on net debt
(87)
(123)
Other interest
Financing income related to post- retirement benefits
18
33
Interest on provisions
17
(1)
Exchange rate results
(65)
(128)
Hyperinflation: net gain/(loss) on monetary position
(20)
(46)
Other items
13
(7)
Net other financing credit/(charges)
(37)
(149)
Total financing income and expenses
(124)
(272)
Net financing expenses for the year were \u20ac272 million (2022 : \u20ac124 million). Significant
variances are:
\u2022 Net interest on net debt increased by \u20ac36 million to a \u20ac123 million charge (2022: \u20ac87
million); higher interest rates impacted both financing income and financing expenses
\u2022 Financing income related to post-retirement benefits increased by \u20ac15 million to \u20ac33
million (2022: \u20ac18 million) mainly as a result of higher discount rates. Interest income
from financial assets measured at amortized cost (including the loan to Pension Fund
APF in the Netherlands) amounted to approximately \u20ac5 million in both years. The
remainder was generated by financial assets measured at fair value through profit and
loss
\u2022 Interest income on provisions decreased by \u20ac18 million to negative \u20ac1 million (2022:
\u20ac17 million) due to the impact on discounting from changes in discount rates
\u2022 Exchange rate results were negative \u20ac128 million (2022: negative \u20ac65 million) and
contain \u20ac36 million negative result on cash flow hedging contracts, related to the
previously anticipated acquisition of Kansai Paints Africa (refer to Note 26 Financial risk
management for more details)
\u2022 Hyperinflation: the net loss on monetary position increased by \u20ac26 million to \u20ac46 million
\u2022 Other items decreased by \u20ac20 million, mainly due to \u20ac10 million interest income from
the UK ACT case which was included in 2022 (refer to Note 3 Segment information for
more details)
The average interest rate used for capitalized interest was 2.1% (2022: 1.7%). Capitalized
interest was negligible in both 2023 and 2022. The average interest rate on total debt was
3.2% (2022: 2.1%).
Impact hyperinflation accounting
We have applied IAS 29 \"Financial Reporting in Hyperinflationary Economies\" for T\u00fcrkiye as
from January 1, 2022. For Argentina, hyperinflation accounting was already applied as from
January 1, 2018. In addition, and in line with IAS 21 \"The Effects of Changes in Foreign
Exchange Rates\", end of period rates are used to translate both the balance sheet and the
statement of income into euros.
For T\u00fcrkiye, the revaluation effect on the non-monetary assets at January 1, 2022, was \u20ac16
million positive (after taxes), recorded as a restatement to opening shareholders\u2019 equity. In
addition, the opening balance of intangible assets has been restated by \u20ac1 million (refer to
Note 10 Intangible assets) and the opening balance of property, plant and equipment has
been restated by \u20ac15 million (refer to Note 11 Property, plant and equipment). Refer to
Note 8 Income tax for the related opening balance impact on deferred taxes.
The impact of the application of hyperinflation accounting and the use of end of period
rates to translate the statement of the income statement is shown in the table below.
Hyperinflation accounting
in \u20ac millions
2022
2023
Revenue
5
(64)
Operating income
(46)
(54)
Net interest on net debt
0
17
Exchange rate results
4
54
Hyperinflation: net gain/(loss) on monetary position
(20)
(46)
Financing income and expenses
(16)
25
Profit before tax
(62)
(29)
Income tax
(12)
(48)
Profit for the period
(74)
(77)
Attributable to
Shareholders of the company
(63)
(65)
Non-controlling interests
(11)
(12)
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-442": { "value": "
Note 7: Financing income and expenses
Financing income and expenses
in \u20ac millions
2022
2023
Interest on net debt
Financing income
19
69
Financing expenses
(106)
(192)
Net interest on net debt
(87)
(123)
Other interest
Financing income related to post- retirement benefits
18
33
Interest on provisions
17
(1)
Exchange rate results
(65)
(128)
Hyperinflation: net gain/(loss) on monetary position
(20)
(46)
Other items
13
(7)
Net other financing credit/(charges)
(37)
(149)
Total financing income and expenses
(124)
(272)
Net financing expenses for the year were \u20ac272 million (2022 : \u20ac124 million). Significant
variances are:
\u2022 Net interest on net debt increased by \u20ac36 million to a \u20ac123 million charge (2022: \u20ac87
million); higher interest rates impacted both financing income and financing expenses
\u2022 Financing income related to post-retirement benefits increased by \u20ac15 million to \u20ac33
million (2022: \u20ac18 million) mainly as a result of higher discount rates. Interest income
from financial assets measured at amortized cost (including the loan to Pension Fund
APF in the Netherlands) amounted to approximately \u20ac5 million in both years. The
remainder was generated by financial assets measured at fair value through profit and
loss
\u2022 Interest income on provisions decreased by \u20ac18 million to negative \u20ac1 million (2022:
\u20ac17 million) due to the impact on discounting from changes in discount rates
\u2022 Exchange rate results were negative \u20ac128 million (2022: negative \u20ac65 million) and
contain \u20ac36 million negative result on cash flow hedging contracts, related to the
previously anticipated acquisition of Kansai Paints Africa (refer to Note 26 Financial risk
management for more details)
\u2022 Hyperinflation: the net loss on monetary position increased by \u20ac26 million to \u20ac46 million
\u2022 Other items decreased by \u20ac20 million, mainly due to \u20ac10 million interest income from
the UK ACT case which was included in 2022 (refer to Note 3 Segment information for
more details)
The average interest rate used for capitalized interest was 2.1% (2022: 1.7%). Capitalized
interest was negligible in both 2023 and 2022. The average interest rate on total debt was
3.2% (2022: 2.1%).
Impact hyperinflation accounting
We have applied IAS 29 \"Financial Reporting in Hyperinflationary Economies\" for T\u00fcrkiye as
from January 1, 2022. For Argentina, hyperinflation accounting was already applied as from
January 1, 2018. In addition, and in line with IAS 21 \"The Effects of Changes in Foreign
Exchange Rates\", end of period rates are used to translate both the balance sheet and the
statement of income into euros.
For T\u00fcrkiye, the revaluation effect on the non-monetary assets at January 1, 2022, was \u20ac16
million positive (after taxes), recorded as a restatement to opening shareholders\u2019 equity. In
addition, the opening balance of intangible assets has been restated by \u20ac1 million (refer to
Note 10 Intangible assets) and the opening balance of property, plant and equipment has
been restated by \u20ac15 million (refer to Note 11 Property, plant and equipment). Refer to
Note 8 Income tax for the related opening balance impact on deferred taxes.
The impact of the application of hyperinflation accounting and the use of end of period
rates to translate the statement of the income statement is shown in the table below.
Hyperinflation accounting
in \u20ac millions
2022
2023
Revenue
5
(64)
Operating income
(46)
(54)
Net interest on net debt
0
17
Exchange rate results
4
54
Hyperinflation: net gain/(loss) on monetary position
(20)
(46)
Financing income and expenses
(16)
25
Profit before tax
(62)
(29)
Income tax
(12)
(48)
Profit for the period
(74)
(77)
Attributable to
Shareholders of the company
(63)
(65)
Non-controlling interests
(11)
(12)
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-441": { "value": "
Note 7: Financing income and expenses
Financing income and expenses
in \u20ac millions
2022
2023
Interest on net debt
Financing income
19
69
Financing expenses
(106)
(192)
Net interest on net debt
(87)
(123)
Other interest
Financing income related to post- retirement benefits
18
33
Interest on provisions
17
(1)
Exchange rate results
(65)
(128)
Hyperinflation: net gain/(loss) on monetary position
(20)
(46)
Other items
13
(7)
Net other financing credit/(charges)
(37)
(149)
Total financing income and expenses
(124)
(272)
Net financing expenses for the year were \u20ac272 million (2022 : \u20ac124 million). Significant
variances are:
\u2022 Net interest on net debt increased by \u20ac36 million to a \u20ac123 million charge (2022: \u20ac87
million); higher interest rates impacted both financing income and financing expenses
\u2022 Financing income related to post-retirement benefits increased by \u20ac15 million to \u20ac33
million (2022: \u20ac18 million) mainly as a result of higher discount rates. Interest income
from financial assets measured at amortized cost (including the loan to Pension Fund
APF in the Netherlands) amounted to approximately \u20ac5 million in both years. The
remainder was generated by financial assets measured at fair value through profit and
loss
\u2022 Interest income on provisions decreased by \u20ac18 million to negative \u20ac1 million (2022:
\u20ac17 million) due to the impact on discounting from changes in discount rates
\u2022 Exchange rate results were negative \u20ac128 million (2022: negative \u20ac65 million) and
contain \u20ac36 million negative result on cash flow hedging contracts, related to the
previously anticipated acquisition of Kansai Paints Africa (refer to Note 26 Financial risk
management for more details)
\u2022 Hyperinflation: the net loss on monetary position increased by \u20ac26 million to \u20ac46 million
\u2022 Other items decreased by \u20ac20 million, mainly due to \u20ac10 million interest income from
the UK ACT case which was included in 2022 (refer to Note 3 Segment information for
more details)
The average interest rate used for capitalized interest was 2.1% (2022: 1.7%). Capitalized
interest was negligible in both 2023 and 2022. The average interest rate on total debt was
3.2% (2022: 2.1%).
Impact hyperinflation accounting
We have applied IAS 29 \"Financial Reporting in Hyperinflationary Economies\" for T\u00fcrkiye as
from January 1, 2022. For Argentina, hyperinflation accounting was already applied as from
January 1, 2018. In addition, and in line with IAS 21 \"The Effects of Changes in Foreign
Exchange Rates\", end of period rates are used to translate both the balance sheet and the
statement of income into euros.
For T\u00fcrkiye, the revaluation effect on the non-monetary assets at January 1, 2022, was \u20ac16
million positive (after taxes), recorded as a restatement to opening shareholders\u2019 equity. In
addition, the opening balance of intangible assets has been restated by \u20ac1 million (refer to
Note 10 Intangible assets) and the opening balance of property, plant and equipment has
been restated by \u20ac15 million (refer to Note 11 Property, plant and equipment). Refer to
Note 8 Income tax for the related opening balance impact on deferred taxes.
The impact of the application of hyperinflation accounting and the use of end of period
rates to translate the statement of the income statement is shown in the table below.
Hyperinflation accounting
in \u20ac millions
2022
2023
Revenue
5
(64)
Operating income
(46)
(54)
Net interest on net debt
0
17
Exchange rate results
4
54
Hyperinflation: net gain/(loss) on monetary position
(20)
(46)
Financing income and expenses
(16)
25
Profit before tax
(62)
(29)
Income tax
(12)
(48)
Profit for the period
(74)
(77)
Attributable to
Shareholders of the company
(63)
(65)
Non-controlling interests
(11)
(12)
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-440": { "value": "
Note 7: Financing income and expenses
Financing income and expenses
in \u20ac millions
2022
2023
Interest on net debt
Financing income
19
69
Financing expenses
(106)
(192)
Net interest on net debt
(87)
(123)
Other interest
Financing income related to post- retirement benefits
18
33
Interest on provisions
17
(1)
Exchange rate results
(65)
(128)
Hyperinflation: net gain/(loss) on monetary position
(20)
(46)
Other items
13
(7)
Net other financing credit/(charges)
(37)
(149)
Total financing income and expenses
(124)
(272)
Net financing expenses for the year were \u20ac272 million (2022 : \u20ac124 million). Significant
variances are:
\u2022 Net interest on net debt increased by \u20ac36 million to a \u20ac123 million charge (2022: \u20ac87
million); higher interest rates impacted both financing income and financing expenses
\u2022 Financing income related to post-retirement benefits increased by \u20ac15 million to \u20ac33
million (2022: \u20ac18 million) mainly as a result of higher discount rates. Interest income
from financial assets measured at amortized cost (including the loan to Pension Fund
APF in the Netherlands) amounted to approximately \u20ac5 million in both years. The
remainder was generated by financial assets measured at fair value through profit and
loss
\u2022 Interest income on provisions decreased by \u20ac18 million to negative \u20ac1 million (2022:
\u20ac17 million) due to the impact on discounting from changes in discount rates
\u2022 Exchange rate results were negative \u20ac128 million (2022: negative \u20ac65 million) and
contain \u20ac36 million negative result on cash flow hedging contracts, related to the
previously anticipated acquisition of Kansai Paints Africa (refer to Note 26 Financial risk
management for more details)
\u2022 Hyperinflation: the net loss on monetary position increased by \u20ac26 million to \u20ac46 million
\u2022 Other items decreased by \u20ac20 million, mainly due to \u20ac10 million interest income from
the UK ACT case which was included in 2022 (refer to Note 3 Segment information for
more details)
The average interest rate used for capitalized interest was 2.1% (2022: 1.7%). Capitalized
interest was negligible in both 2023 and 2022. The average interest rate on total debt was
3.2% (2022: 2.1%).
Impact hyperinflation accounting
We have applied IAS 29 \"Financial Reporting in Hyperinflationary Economies\" for T\u00fcrkiye as
from January 1, 2022. For Argentina, hyperinflation accounting was already applied as from
January 1, 2018. In addition, and in line with IAS 21 \"The Effects of Changes in Foreign
Exchange Rates\", end of period rates are used to translate both the balance sheet and the
statement of income into euros.
For T\u00fcrkiye, the revaluation effect on the non-monetary assets at January 1, 2022, was \u20ac16
million positive (after taxes), recorded as a restatement to opening shareholders\u2019 equity. In
addition, the opening balance of intangible assets has been restated by \u20ac1 million (refer to
Note 10 Intangible assets) and the opening balance of property, plant and equipment has
been restated by \u20ac15 million (refer to Note 11 Property, plant and equipment). Refer to
Note 8 Income tax for the related opening balance impact on deferred taxes.
The impact of the application of hyperinflation accounting and the use of end of period
rates to translate the statement of the income statement is shown in the table below.
Hyperinflation accounting
in \u20ac millions
2022
2023
Revenue
5
(64)
Operating income
(46)
(54)
Net interest on net debt
0
17
Exchange rate results
4
54
Hyperinflation: net gain/(loss) on monetary position
(20)
(46)
Financing income and expenses
(16)
25
Profit before tax
(62)
(29)
Income tax
(12)
(48)
Profit for the period
(74)
(77)
Attributable to
Shareholders of the company
(63)
(65)
Non-controlling interests
(11)
(12)
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-447": { "value": "
Note 8: Income tax
Pre-tax income from continuing operations for the year amounted to a profit of \u20ac784 million
(2022: \u20ac602 million). The net tax charges related to continuing operations are included in
the statement of income as shown in this Note and amount to \u20ac296 million (2022: \u20ac214
million), leading to an effective tax rate of 37.8% (2022: 35.5%).
Classification of current and deferred tax result
A breakdown into current and deferred tax expenses and a split of the main categories is
provided in the table below. For comparative reasons, this table presents the income tax
expense excluding the impact from discontinued operations. The total deferred tax in the
statement of income including discontinued operations was \u20ac9 million (2022: \u20ac8 million
income). The total tax charge including discontinued operations was \u20ac296 million (2022:
\u20ac211 million).
Classification of current and deferred tax result
in \u20ac millions
2022
2023
Current tax expense for
The year
(198)
(277)
Adjustments for previous years
(24)
(28)
Total current tax expense
(222)
(305)
Deferred tax expense for
Origination and reversal of temporary differences and tax
losses
21
57
(Derecognition)/recognition of deferred tax assets
(6)
(47)
Changes in tax rates
(7)
(1)
Total deferred tax expense
8
9
Total
(214)
(296)
Adjustments for prior years in 2023 mainly related to true-ups as a result of tax audits, while
in 2022 in addition a net tax charge of \u20ac13 million for the UK ACT case was recorded (refer
to Note 3 Segment information for more details).
Origination and reversal of temporary differences and tax losses is driven, amongst others,
by timing differences between recognition and payments for provisions, timing differences
on depreciation and amortization for tax purposes versus the consolidated financial
statements and tax loss carryforwards utilized against profits of the year or new tax losses
incurred.
The derecognition of deferred tax assets in 2023 mainly related to re-assessments of,
among others, technical tax limitations to deduct interest.
Effective tax rate reconciliation
In 2023, the effective income tax rate based on the statement of income was 37.8% (2022:
35.5%). A reconciliation between the effective tax rate and the weighted average statutory
income tax rate is provided in the table below. For comparative reasons, this table presents
the effective consolidated tax rate excluding the impact from discontinued operations.
Including these results, the effective consolidated tax rate is 37.8% (2022: 35.8%).
Effective tax rate reconciliation
in %
2022
2023
Corporate tax rate in the Netherlands
25.8
25.8
Effect of tax rates in other countries
(2.2)
(1.7)
Weighted average statutory income tax rate
23.6
24.1
Non-taxable income
(2.8)
(2.8)
Non-deductible expenses
3.3
2.2
Non-refundable withholding taxes
2.4
1.4
(Recognition)/derecognition of deferred tax assets
1.0
6.0
Adjustments for prior years
4.0
3.5
Hyperinflation impact
2.8
3.2
Deferred tax adjustment due to changes in tax rates
1.2
0.2
Effective tax rate
35.5
37.8
Non-taxable income in both 2023 and 2022 was mainly related to R&D credits and the tax
exemption for investments.
Non-deductible expenses are related to certain non-deductible costs in various countries.
The impact of non-refundable withholding tax on the tax rate is dependent on our relative
share in the profit of subsidiaries in countries that levy withholding tax on dividends and on
the timing of the remittance of such dividends. Based on the Dutch tax system there is a
limited credit for such taxes.
The derecognition of deferred tax assets in 2023 mainly relates to re-assessments of,
among others, technical tax limitations to deduct interest.
Adjustments for prior years in 2023 mainly related to true-ups as a result of tax audits, while
in 2022 in addition also a net tax charge of \u20ac13 million for the UK ACT case was recorded
(refer to Note 3 Segment information for more details).
The net effect of hyperinflation accounting in Argentina and T\u00fcrkiye combined in 2023 is
3.2% (2022: 2.8%). This mainly relates to the restatement of reserves, which results in a
non-taxable, non-cash impact on the effective tax rate.
Origination of deferred tax assets and liabilities
Deferred tax assets and liabilities originate from temporary differences in various balance
sheet line items, as well as from tax credits and tax loss carryforwards. The tables show the
origination of deferred tax assets and liabilities, and the movements thereof, for the financial
years 2023 and 2022.
Origination of deferred tax assets and liabilities 2023
in \u20ac millions
Balance at January
1, 2023
Changes in
exchange rate
Recognized in
income
Recognized in
equity / Other
comprehensive
income
Acquisitions
Balance at
December 31, 2023
Intangible assets
(521)
9
(16)
\u2014
(5)
(533)
Property, plant and equipment
57
17
(24)
\u2014
(1)
49
Financial non-current assets
(272)
(4)
7
22
\u2014
(247)
Post-retirement benefit provisions
76
\u2014
(7)
16
\u2014
85
Other provisions
25
(1)
4
\u2014
\u2014
28
Other items
126
(3)
(28)
(1)
(3)
91
Tax credits
206
\u2014
16
\u2014
\u2014
222
Tax loss carryforwards
240
(37)
57
\u2014
\u2014
260
Deferred tax assets (liabilities)
(63)
(19)
9
37
(9)
(45)
Origination of deferred tax assets and liabilities 2022
in \u20ac millions
Balance at January
1, 2022
Changes in
exchange rate
Recognized in
income
Recognized in
equity / Other
comprehensive
income
Acquisitions
Balance at
December 31, 2022
Intangible assets
(461)
23
\u2014
\u2014
(83)
(521)
Property, plant and equipment*
75
2
(3)
\u2014
(17)
57
Financial non-current assets
(406)
20
(25)
139
\u2014
(272)
Post-retirement benefit provisions
138
3
(12)
(53)
\u2014
76
Other provisions
28
\u2014
(3)
\u2014
\u2014
25
Other items*
96
(2)
36
\u2014
(4)
126
Tax credits
204
(1)
3
\u2014
\u2014
206
Tax loss carryforwards
237
(9)
12
\u2014
\u2014
240
Deferred tax assets (liabilities)
(89)
36
8
86
(104)
(63)
* Property, plant and equipment includes an opening balance adjustment of \u20ac3 million and other items of \u20ac1 million related to the application of IAS 29 \"Financial Reporting in Hyperinflationary Economies\" in T\u00fcrkiye. Refer to Note 7 Financing income and expenses for further
details.
Reconciliation deferred tax assets and liabilities to the balance
sheet
The table provides a reconciliation of the total deferred tax amounts for each of the
originating items to the deferred tax asset and liability positions as included in the balance
sheet.
Deferred tax assets and liabilities per balance sheet item
December 31, 2022
December 31, 2023
in \u20ac millions
Net
balance
Assets
Liabilities
Net
balance
Assets
Liabilities
Intangible assets
(521)
10
531
(533)
9
542
Property, plant and equipment
56
124
68
49
123
74
Financial non-current assets
(271)
6
277
(247)
11
258
Post-retirement benefit provisions
76
79
3
85
88
3
Other provisions
25
34
9
28
38
10
Other items
125
143
18
91
107
16
Tax credits
207
207
\u2014
222
222
\u2014
Tax loss carryforwards
240
240
\u2014
260
260
\u2014
Tax assets/liabilities
(63)
843
906
(45)
858
903
Set-off of tax
\u2014
(345)
(345)
\u2014
(346)
(346)
Net deferred tax positions
(63)
498
561
(45)
512
557
Deferred tax assets recoverability assessment
In assessing the recognition of deferred tax assets, management considers whether it is
probable that some portion or all of the deferred tax assets will be realized. The ultimate
realization of the deferred tax assets is dependent upon the generation of future taxable
income against which the deductible temporary differences, unused tax losses and unused
tax credits can be utilized.
Management considers the scheduled reversal of deferred tax liabilities, projected future
taxable income, and tax planning strategies in making this assessment. The projections
used to assess recoverability are, in general, based on a projection of 10 years. Specific
facts and circumstances per country may lead to shorter or longer projection periods being
used. Growth in profitability is projected using GDP growth, adjusting for specific factors
affecting profitability of our operations within the country.
The amount of deferred tax assets considered realizable could change if future estimates of
projected taxable income during the carryforward period, or other variables, are revised.
The majority of the amount of the non-current portion of deferred and current taxes will be
recovered or settled after more than 12 months.
In 2023, the assessment of deferred tax asset recoverability on the basis of taxable profit
forecasts resulted in derecognition of deferred tax assets related to non-deductible interest
carried forward. In 2022, the assessment of deferred tax asset recoverability on the basis of
taxable profit forecasts did not result in a significant net derecognition or re-recognition.
At year-end 2023, approximately 70% (2022: approximately 75%) of the recognized
deferred assets\u00a0 concerned the UK, the Netherlands and Germany.
From the total amount of recognized net deferred tax assets, \u20ac151 million (2022: \u20ac206
million) is related to entities that have suffered a loss in either the current or the previous
year and where utilization is dependent on future taxable profit in excess of the profit arising
from the reversal of existing taxable temporary differences. This assessment is based on
management\u2019s long-term projections and tax planning strategies.
In 2023, deferred tax assets not recognized include \u20ac548 million of tax loss carryforwards
and \u20ac44 million of non-deductible interest. In 2022, deferred tax assets not recognized fully
related to tax loss carryforwards. The losses in the tables on tax losses carried forward on
the next page are gross amounts, with the tax impact included in the last column of the
table.
A deferred tax liability is recognized for taxable temporary differences related to investments
in subsidiaries, branches and associates and interests in joint arrangements, to the extent
that it is probable that these will reverse in the foreseeable future. The expected net tax
impact of the remaining differences for which no deferred tax liabilities have been
recognized is \u20ac47 million (2022: \u20ac55 million).
Expiration year of loss carryforwards 2023
in \u20ac millions
2024
2025
2026
2027
2028
Later
Unlimited
Total
Deferred tax
Total loss carryforwards
1
1
4
5
76
51
3,009
3,147
808
Loss carryforwards not recognized in deferred tax assets
\u2014
\u2014
(1)
(1)
(1)
(17)
(2,153)
(2,173)
(548)
Total loss carryforwards recognized
1
1
3
4
75
34
856
974
260
Expiration year of loss carryforwards 2022
in \u20ac millions
2023
2024
2025
2026
2027
Later
Unlimited
Total
Deferred tax
Total loss carryforwards
\u2014
1
1
2
13
56
3,014
3,087
779
Loss carryforwards not recognized in deferred tax assets
\u2014
(1)
(1)
\u2014
\u2014
(10)
(2,120)
(2,132)
(539)
Total loss carryforwards recognized
\u2014
\u2014
\u2014
2
13
46
894
955
240
Uncertain tax positions
Liabilities for uncertain tax positions are recognized if and to the extent it is probable that
additional taxes will become due, and the amount can be measured reliably.
Our assessments are based on our best estimate of how the tax authorities concerned are
likely to evaluate and respond to the cases in question, taking into account expert advice.
Uncertain tax positions for which liabilities have been recorded, mainly relate to international
transfer pricing and deductibility of expenses.
In certain cases, uncertain tax positions are related to disputes with tax authorities. Such
disputes are usually strongly contested and defended by the company, often assisted by
outside counsel and/or experts. Significant judgment is involved in the determination of
such liabilities. Probability is assessed by applying interpretation of legislation and relevant
case law.
Impact OECD Pillar Two framework
On December\u00a015, 2022, the Council of the EU adopted the Pillar Two directive, which was
subsequently embedded in Dutch law on December 19, 2023. This directive will introduce
a minimum corporate tax rate set at 15% for each jurisdiction in which a company
operates. For AkzoNobel, the new rules will be applicable as of 2024.
In the 2023 financial statements, AkzoNobel applied the exemption for recognizing and
disclosing information about deferred tax assets and liabilities related to Pillar Two income
taxes.
AkzoNobel performed an analysis of the expected impact of the implementation of the
directive for AkzoNobel Group based on historical data. Based on this analysis, the
Transitional CbCR Safe Harbour is expected to be applicable for the majority of jurisdictions
and hence effectively excludes those jurisdictions from the scope of the rules in the initial
years. For the remaining jurisdictions, no material financial impact is anticipated for the
foreseeable future. Due to complexities in applying the Pillar Two legislation as well as the
fact that further guidance on rules and regulations is expected in the coming period, the
company will continue to assess the impact of the Pillar Two legislation on its future
performance.
Income tax recognized in equity
The following table shows income tax items recognized in equity by category.
Income tax recognized in equity
in \u20ac millions
2022
2023
Currency exchange differences on intercompany loans of a
permanent nature
2
(1)
Share-based compensation
(2)
(1)
Share buyback
2
\u2014
Post-retirement benefits
86
38
Changes in tax rates
\u2014
\u2014
IAS 29 opening balance adjustment
(4)
\u2014
Total
84
36
Current tax
2
(1)
Deferred tax
82
37
Total
84
36
", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-446": { "value": "
Note 8: Income tax
Pre-tax income from continuing operations for the year amounted to a profit of \u20ac784 million
(2022: \u20ac602 million). The net tax charges related to continuing operations are included in
the statement of income as shown in this Note and amount to \u20ac296 million (2022: \u20ac214
million), leading to an effective tax rate of 37.8% (2022: 35.5%).
Classification of current and deferred tax result
A breakdown into current and deferred tax expenses and a split of the main categories is
provided in the table below. For comparative reasons, this table presents the income tax
expense excluding the impact from discontinued operations. The total deferred tax in the
statement of income including discontinued operations was \u20ac9 million (2022: \u20ac8 million
income). The total tax charge including discontinued operations was \u20ac296 million (2022:
\u20ac211 million).
Classification of current and deferred tax result
in \u20ac millions
2022
2023
Current tax expense for
The year
(198)
(277)
Adjustments for previous years
(24)
(28)
Total current tax expense
(222)
(305)
Deferred tax expense for
Origination and reversal of temporary differences and tax
losses
21
57
(Derecognition)/recognition of deferred tax assets
(6)
(47)
Changes in tax rates
(7)
(1)
Total deferred tax expense
8
9
Total
(214)
(296)
Adjustments for prior years in 2023 mainly related to true-ups as a result of tax audits, while
in 2022 in addition a net tax charge of \u20ac13 million for the UK ACT case was recorded (refer
to Note 3 Segment information for more details).
Origination and reversal of temporary differences and tax losses is driven, amongst others,
by timing differences between recognition and payments for provisions, timing differences
on depreciation and amortization for tax purposes versus the consolidated financial
statements and tax loss carryforwards utilized against profits of the year or new tax losses
incurred.
The derecognition of deferred tax assets in 2023 mainly related to re-assessments of,
among others, technical tax limitations to deduct interest.
Effective tax rate reconciliation
In 2023, the effective income tax rate based on the statement of income was 37.8% (2022:
35.5%). A reconciliation between the effective tax rate and the weighted average statutory
income tax rate is provided in the table below. For comparative reasons, this table presents
the effective consolidated tax rate excluding the impact from discontinued operations.
Including these results, the effective consolidated tax rate is 37.8% (2022: 35.8%).
Effective tax rate reconciliation
in %
2022
2023
Corporate tax rate in the Netherlands
25.8
25.8
Effect of tax rates in other countries
(2.2)
(1.7)
Weighted average statutory income tax rate
23.6
24.1
Non-taxable income
(2.8)
(2.8)
Non-deductible expenses
3.3
2.2
Non-refundable withholding taxes
2.4
1.4
(Recognition)/derecognition of deferred tax assets
1.0
6.0
Adjustments for prior years
4.0
3.5
Hyperinflation impact
2.8
3.2
Deferred tax adjustment due to changes in tax rates
1.2
0.2
Effective tax rate
35.5
37.8
Non-taxable income in both 2023 and 2022 was mainly related to R&D credits and the tax
exemption for investments.
Non-deductible expenses are related to certain non-deductible costs in various countries.
The impact of non-refundable withholding tax on the tax rate is dependent on our relative
share in the profit of subsidiaries in countries that levy withholding tax on dividends and on
the timing of the remittance of such dividends. Based on the Dutch tax system there is a
limited credit for such taxes.
The derecognition of deferred tax assets in 2023 mainly relates to re-assessments of,
among others, technical tax limitations to deduct interest.
Adjustments for prior years in 2023 mainly related to true-ups as a result of tax audits, while
in 2022 in addition also a net tax charge of \u20ac13 million for the UK ACT case was recorded
(refer to Note 3 Segment information for more details).
The net effect of hyperinflation accounting in Argentina and T\u00fcrkiye combined in 2023 is
3.2% (2022: 2.8%). This mainly relates to the restatement of reserves, which results in a
non-taxable, non-cash impact on the effective tax rate.
Origination of deferred tax assets and liabilities
Deferred tax assets and liabilities originate from temporary differences in various balance
sheet line items, as well as from tax credits and tax loss carryforwards. The tables show the
origination of deferred tax assets and liabilities, and the movements thereof, for the financial
years 2023 and 2022.
Origination of deferred tax assets and liabilities 2023
in \u20ac millions
Balance at January
1, 2023
Changes in
exchange rate
Recognized in
income
Recognized in
equity / Other
comprehensive
income
Acquisitions
Balance at
December 31, 2023
Intangible assets
(521)
9
(16)
\u2014
(5)
(533)
Property, plant and equipment
57
17
(24)
\u2014
(1)
49
Financial non-current assets
(272)
(4)
7
22
\u2014
(247)
Post-retirement benefit provisions
76
\u2014
(7)
16
\u2014
85
Other provisions
25
(1)
4
\u2014
\u2014
28
Other items
126
(3)
(28)
(1)
(3)
91
Tax credits
206
\u2014
16
\u2014
\u2014
222
Tax loss carryforwards
240
(37)
57
\u2014
\u2014
260
Deferred tax assets (liabilities)
(63)
(19)
9
37
(9)
(45)
Origination of deferred tax assets and liabilities 2022
in \u20ac millions
Balance at January
1, 2022
Changes in
exchange rate
Recognized in
income
Recognized in
equity / Other
comprehensive
income
Acquisitions
Balance at
December 31, 2022
Intangible assets
(461)
23
\u2014
\u2014
(83)
(521)
Property, plant and equipment*
75
2
(3)
\u2014
(17)
57
Financial non-current assets
(406)
20
(25)
139
\u2014
(272)
Post-retirement benefit provisions
138
3
(12)
(53)
\u2014
76
Other provisions
28
\u2014
(3)
\u2014
\u2014
25
Other items*
96
(2)
36
\u2014
(4)
126
Tax credits
204
(1)
3
\u2014
\u2014
206
Tax loss carryforwards
237
(9)
12
\u2014
\u2014
240
Deferred tax assets (liabilities)
(89)
36
8
86
(104)
(63)
* Property, plant and equipment includes an opening balance adjustment of \u20ac3 million and other items of \u20ac1 million related to the application of IAS 29 \"Financial Reporting in Hyperinflationary Economies\" in T\u00fcrkiye. Refer to Note 7 Financing income and expenses for further
details.
Reconciliation deferred tax assets and liabilities to the balance
sheet
The table provides a reconciliation of the total deferred tax amounts for each of the
originating items to the deferred tax asset and liability positions as included in the balance
sheet.
Deferred tax assets and liabilities per balance sheet item
December 31, 2022
December 31, 2023
in \u20ac millions
Net
balance
Assets
Liabilities
Net
balance
Assets
Liabilities
Intangible assets
(521)
10
531
(533)
9
542
Property, plant and equipment
56
124
68
49
123
74
Financial non-current assets
(271)
6
277
(247)
11
258
Post-retirement benefit provisions
76
79
3
85
88
3
Other provisions
25
34
9
28
38
10
Other items
125
143
18
91
107
16
Tax credits
207
207
\u2014
222
222
\u2014
Tax loss carryforwards
240
240
\u2014
260
260
\u2014
Tax assets/liabilities
(63)
843
906
(45)
858
903
Set-off of tax
\u2014
(345)
(345)
\u2014
(346)
(346)
Net deferred tax positions
(63)
498
561
(45)
512
557
Deferred tax assets recoverability assessment
In assessing the recognition of deferred tax assets, management considers whether it is
probable that some portion or all of the deferred tax assets will be realized. The ultimate
realization of the deferred tax assets is dependent upon the generation of future taxable
income against which the deductible temporary differences, unused tax losses and unused
tax credits can be utilized.
Management considers the scheduled reversal of deferred tax liabilities, projected future
taxable income, and tax planning strategies in making this assessment. The projections
used to assess recoverability are, in general, based on a projection of 10 years. Specific
facts and circumstances per country may lead to shorter or longer projection periods being
used. Growth in profitability is projected using GDP growth, adjusting for specific factors
affecting profitability of our operations within the country.
The amount of deferred tax assets considered realizable could change if future estimates of
projected taxable income during the carryforward period, or other variables, are revised.
The majority of the amount of the non-current portion of deferred and current taxes will be
recovered or settled after more than 12 months.
In 2023, the assessment of deferred tax asset recoverability on the basis of taxable profit
forecasts resulted in derecognition of deferred tax assets related to non-deductible interest
carried forward. In 2022, the assessment of deferred tax asset recoverability on the basis of
taxable profit forecasts did not result in a significant net derecognition or re-recognition.
At year-end 2023, approximately 70% (2022: approximately 75%) of the recognized
deferred assets\u00a0 concerned the UK, the Netherlands and Germany.
From the total amount of recognized net deferred tax assets, \u20ac151 million (2022: \u20ac206
million) is related to entities that have suffered a loss in either the current or the previous
year and where utilization is dependent on future taxable profit in excess of the profit arising
from the reversal of existing taxable temporary differences. This assessment is based on
management\u2019s long-term projections and tax planning strategies.
In 2023, deferred tax assets not recognized include \u20ac548 million of tax loss carryforwards
and \u20ac44 million of non-deductible interest. In 2022, deferred tax assets not recognized fully
related to tax loss carryforwards. The losses in the tables on tax losses carried forward on
the next page are gross amounts, with the tax impact included in the last column of the
table.
A deferred tax liability is recognized for taxable temporary differences related to investments
in subsidiaries, branches and associates and interests in joint arrangements, to the extent
that it is probable that these will reverse in the foreseeable future. The expected net tax
impact of the remaining differences for which no deferred tax liabilities have been
recognized is \u20ac47 million (2022: \u20ac55 million).
Expiration year of loss carryforwards 2023
in \u20ac millions
2024
2025
2026
2027
2028
Later
Unlimited
Total
Deferred tax
Total loss carryforwards
1
1
4
5
76
51
3,009
3,147
808
Loss carryforwards not recognized in deferred tax assets
\u2014
\u2014
(1)
(1)
(1)
(17)
(2,153)
(2,173)
(548)
Total loss carryforwards recognized
1
1
3
4
75
34
856
974
260
Expiration year of loss carryforwards 2022
in \u20ac millions
2023
2024
2025
2026
2027
Later
Unlimited
Total
Deferred tax
Total loss carryforwards
\u2014
1
1
2
13
56
3,014
3,087
779
Loss carryforwards not recognized in deferred tax assets
\u2014
(1)
(1)
\u2014
\u2014
(10)
(2,120)
(2,132)
(539)
Total loss carryforwards recognized
\u2014
\u2014
\u2014
2
13
46
894
955
240
Uncertain tax positions
Liabilities for uncertain tax positions are recognized if and to the extent it is probable that
additional taxes will become due, and the amount can be measured reliably.
Our assessments are based on our best estimate of how the tax authorities concerned are
likely to evaluate and respond to the cases in question, taking into account expert advice.
Uncertain tax positions for which liabilities have been recorded, mainly relate to international
transfer pricing and deductibility of expenses.
In certain cases, uncertain tax positions are related to disputes with tax authorities. Such
disputes are usually strongly contested and defended by the company, often assisted by
outside counsel and/or experts. Significant judgment is involved in the determination of
such liabilities. Probability is assessed by applying interpretation of legislation and relevant
case law.
Impact OECD Pillar Two framework
On December\u00a015, 2022, the Council of the EU adopted the Pillar Two directive, which was
subsequently embedded in Dutch law on December 19, 2023. This directive will introduce
a minimum corporate tax rate set at 15% for each jurisdiction in which a company
operates. For AkzoNobel, the new rules will be applicable as of 2024.
In the 2023 financial statements, AkzoNobel applied the exemption for recognizing and
disclosing information about deferred tax assets and liabilities related to Pillar Two income
taxes.
AkzoNobel performed an analysis of the expected impact of the implementation of the
directive for AkzoNobel Group based on historical data. Based on this analysis, the
Transitional CbCR Safe Harbour is expected to be applicable for the majority of jurisdictions
and hence effectively excludes those jurisdictions from the scope of the rules in the initial
years. For the remaining jurisdictions, no material financial impact is anticipated for the
foreseeable future. Due to complexities in applying the Pillar Two legislation as well as the
fact that further guidance on rules and regulations is expected in the coming period, the
company will continue to assess the impact of the Pillar Two legislation on its future
performance.
Income tax recognized in equity
The following table shows income tax items recognized in equity by category.
Income tax recognized in equity
in \u20ac millions
2022
2023
Currency exchange differences on intercompany loans of a
permanent nature
2
(1)
Share-based compensation
(2)
(1)
Share buyback
2
\u2014
Post-retirement benefits
86
38
Changes in tax rates
\u2014
\u2014
IAS 29 opening balance adjustment
(4)
\u2014
Total
84
36
Current tax
2
(1)
Deferred tax
82
37
Total
84
36
", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-448": { "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" } }, "f-449": { "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" } }, "f-450": { "value": "
Note 9: Earnings per share
Profit for the period attributable to the shareholders of the company was \u20ac442 million
(2022: \u20ac352 million).
Profit for the period
in \u20ac millions
2022
2023
Profit before tax from continuing operations
602
784
Income tax
(214)
(296)
Profit from continuing operations
388
488
Profit for the period attributable to non-controlling interests
(26)
(41)
Profit for the period from continuing operations
attributable to shareholders of the company
362
447
Profit for the period from discontinued operations attributable
to shareholders of the company
(10)
(5)
Profit for the period attributable to shareholders of the
company
352
442
In 2022, the number of shares for the earnings per share calculation decreased as a result
of share buyback programs; in 2023 there was no impact from share buybacks.
Weighted average number of common shares
Number of shares
2022
2023
Issued common shares at January 1
181,609,509
170,428,331
Effect of issued common shares during the year
186,077
145,224
Effect of share buyback program
(7,060,447)
\u2014
Shares for basic earnings per share for the year
174,735,139
170,573,555
Effect of dilutive shares
For performance-related and restricted shares
575,108
761,918
For share-matching plan
3,251
3,283
Shares for diluted earnings per share
175,313,498
171,338,756
Earnings per share
in \u20ac
2022
2023
Continuing operations
Basic
2.07
2.62
Diluted
2.06
2.61
Discontinued operations
Basic
(0.06)
(0.03)
Diluted
(0.05)
(0.03)
Total operations
Basic
2.01
2.59
Diluted
2.01
2.58
Refer to Note 3 Segment information for the calculation of adjusted earnings per share.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-453": { "value": "
Note 10: Intangible assets
Intangible assets
in \u20ac millions
Goodwill
Brands
Customer lists
Other intangibles
Total
Balance at December 31, 2021
Cost of acquisition
1,182
2,239
972
171
4,564
Cost of internally developed intangibles
\u2014
\u2014
\u2014
241
241
Accumulated amortization/impairment
(27)
(209)
(616)
(263)
(1,115)
Carrying value at December 31, 2021
1,155
2,030
356
149
3,690
Impact IAS 29 Hyperinflation T\u00fcrkiye*
\u2014
\u2014
\u2014
1
1
Carrying value at January 1, 2022
1,155
2,030
356
150
3,691
Movements in 2022
Acquisitions through business combinations
262
72
193
11
538
Investments - including internally developed intangibles
\u2014
\u2014
\u2014
30
30
Amortization
\u2014
(15)
(40)
(32)
(87)
Impairments, including reversals thereof
\u2014
\u2014
\u2014
(2)
(2)
Hyperinflation adjustment
6
9
\u2014
\u2014
15
Changes in exchange rates
(46)
(31)
(36)
\u2014
(113)
Total movements
222
35
117
7
381
Balance at December 31, 2022
Cost of acquisition
1,405
2,288
1,127
179
4,999
Cost of internally developed intangibles
\u2014
\u2014
\u2014
268
268
Accumulated amortization/impairment
(28)
(223)
(654)
(290)
(1,195)
Carrying value at December 31, 2022
1,377
2,065
473
157
4,072
Movements in 2023
Acquisitions through business combinations
34
16
26
(4)
72
Investments - including internally developed intangibles
\u2014
\u2014
\u2014
21
21
Amortization
\u2014
(17)
(31)
(32)
(80)
Impairments, including reversals thereof
\u2014
\u2014
\u2014
(1)
(1)
Hyperinflation adjustment
10
17
\u2014
\u2014
27
Changes in exchange rates
9
(64)
23
2
(30)
Total movements
53
(48)
18
(14)
9
Balance at December 31, 2023
Cost of acquisition
1,458
2,255
1,151
180
5,044
Cost of internally developed intangibles
\u2014
\u2014
\u2014
273
273
Accumulated amortization/impairment
(28)
(238)
(660)
(310)
(1,236)
Carrying value at December 31, 2023
1,430
2,017
491
143
4,081
* As per June 2022, T\u00fcrkiye has been identified as a hyperinflationary economy. IAS 29 \"Financial Reporting in Hyperinflationary Economies\" has been applied for our activities in T\u00fcrkiye as from January 1, 2022. Refer to Note 7 Financing income and expenses for details on the
financial impact from applying IAS 29.
Brands
Brands as included in the table below comprise of brands with indefinite useful lives and
brands with finite useful lives. Brands with indefinite useful lives are almost fully related to
Dulux, which is the major brand, due to its global presence, high recognition and strategic
nature. Other intangibles include licenses, know-how, intellectual property rights, software
and development cost. Both at year-end 2023 and 2022, there were no material purchase
commitments for individual intangible assets. No intangible assets were registered as
security for bank loans.
Acquisitions through business combinations
The additions from acquisitions in 2023 primarily relate to the acquisition of the Huarun
business, China. In 2022, additions from acquisitions primarily related to the acquisition of
Grupo Orbis S.A., Colombia, and of the wheel liquid coatings business of Lankwitzer
Lackfabrick GmbH, Germany. Refer to Note 2 Scope of consolidation for disclosures on
acquisitions.
The paints business of Grupo Orbis has been allocated to business unit Decorative Paints
Latin America in 2022. In 2022, the Grupo Orbis coatings businesses were reported in
Performance Coatings Other. In 2023, these businesses have been included in the
respective Performance Coatings business units.
Annual impairment testing
Goodwill and other intangibles with indefinite useful lives are tested for impairment per
business unit (one level below segment level) annually or whenever an impairment trigger
exists, applying the value-in-use method.
The impairment test is based on the five-year plan, which contains euro-denominated cash
flow projections for each of the business units. After the five-year plan period the terminal
growth rate is applied, unless a different approach would be more appropriate. Elements
considered to determine if a different approach would be more appropriate include high
growth/emerging economies, geographic expansion opportunities, introduction of new
product ranges and opportunities from market consolidation. In 2023, this exception was
applied for Decorative Paints China and North Asia and for Decorative Paints South East
and South Asia, for which the revenue growth and margin development projections were
extrapolated beyond the five-year explicit forecast period for another five years, applying
reduced average growth rates.
Macro-economic developments and other relevant variables (e.g. inflation, geopolitical
uncertainties, climate risks - refer to Note 1 Summary of material accounting policies for a
description of the impact from climate change on the financial statements) are closely
monitored to ensure that the impact on the estimated future cash flows is reflected in the
models which are used to assess the value of AkzoNobel's asset base. The impact of
climate change did not have a significant effect on the estimated future cash flows.
Goodwill and other intangibles per business unit
in \u20ac millions
Goodwill
Brands with indefinite
useful lives
Other intangibles with
finite useful lives
Total intangibles
2022
2023
2022
2023
2022
2023
2022
2023
Decorative Paints Europe, Middle East and Africa
107
106
837
836
136
126
1,080
1,068
Decorative Paints Latin America
138
179
102
90
142
193
382
462
Decorative Paints China and North Asia
\u2014
32
680
643
9
35
689
710
Decorative Paints South East and South Asia
8
7
221
208
12
10
241
225
Powder Coatings
152
155
\u2014
\u2014
19
34
171
189
Marine and Protective Coatings
197
210
\u2014
\u2014
94
96
291
306
Automotive and Specialty Coatings
290
301
\u2014
\u2014
156
150
446
451
Industrial Coatings
413
440
\u2014
\u2014
110
125
523
565
Performance Coatings Other
72
\u2014
\u2014
\u2014
59
\u2014
131
\u2014
Corporate and other
\u2014
\u2014
\u2014
\u2014
118
105
118
105
Total
1,377
1,430
1,840
1,777
855
874
4,072
4,081
The key assumptions used in the projections for annual impairment testing are:
\u2022 Revenue growth per year: based on actual experience, analysis of markets and GDP
growth, and expected market share developments
\u2022 Margin development per year: based on actual experience and management\u2019s long-
term projections
\u2022 Weighted average cost of capital per year: the pre-tax discount rate determined per
business unit, reflecting current market assessments of the time value of money and
the risks specifically associated with the business unit
Key assumptions 2023
in % per year
Average revenue
growth 2024-2028
Pre-tax weighted
average cost of
capital 2024 -2028
Decorative Paints
2.4%-5.8%
10.8%-15.3%
Performance Coatings
2.0%-3.6%
10.7%-11.2%
Key assumptions 2022
in % per year
Average revenue
growth 2023-2027
Pre-tax weighted
average cost of
capital 2023-2027
Decorative Paints
1.8-6.7%
11.1-15.9%
Performance Coatings
1.3-4.0%
10.8-12.4%
For all business units, a terminal value was calculated based on long-term inflation
expectations of 2% (2022: 2%). The estimated pre-tax cash flows have been discounted to
their present value using a pre-tax weighted average cost of capital. Discount rates have
been determined for each business unit and range from 10.7% to 15.3% (2022: 10.8% to
15.9%), with a weighted average of 11.5% (2022: 11.7%). Both the long-term inflation
expectations and the discount rates are reflective of the inflation expectation in the
eurozone.
In 2023 and 2022, no impairment charges were recognized in relation to the annual
impairment test.
In addition to the annual impairment test, sensitivity tests were performed to assess the
impact of changes in the key assumptions revenue growth (50% lower), margin
development (1 percentage point lower) and weighted average cost of capital
(1\u00a0percentage point higher).
Given the continued uncertainty in the macro-economic environment, additional sensitivity
tests have been performed, like last year, in order to assess the impact of more severe
adverse changes in key assumptions.
Both the regular sensitivity tests and the additional sensitivity tests show that the changes
in key assumptions would not cause carrying amounts to exceed recoverable amounts for
any of the business units, except for Decorative Paints China and North Asia, where the
recently acquired Huarun business is included.
Impairment of specific intangible assets
Periodical evaluations are performed in order to ensure timely detection of triggers that
might indicate impairment of specific assets. Whenever such triggers are noted, the related
assets are assessed for impairment as appropriate. In 2023 and 2022, no significant
impairment charges were recorded in relation to specific assets.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-452": { "value": "
Note 10: Intangible assets
Intangible assets
in \u20ac millions
Goodwill
Brands
Customer lists
Other intangibles
Total
Balance at December 31, 2021
Cost of acquisition
1,182
2,239
972
171
4,564
Cost of internally developed intangibles
\u2014
\u2014
\u2014
241
241
Accumulated amortization/impairment
(27)
(209)
(616)
(263)
(1,115)
Carrying value at December 31, 2021
1,155
2,030
356
149
3,690
Impact IAS 29 Hyperinflation T\u00fcrkiye*
\u2014
\u2014
\u2014
1
1
Carrying value at January 1, 2022
1,155
2,030
356
150
3,691
Movements in 2022
Acquisitions through business combinations
262
72
193
11
538
Investments - including internally developed intangibles
\u2014
\u2014
\u2014
30
30
Amortization
\u2014
(15)
(40)
(32)
(87)
Impairments, including reversals thereof
\u2014
\u2014
\u2014
(2)
(2)
Hyperinflation adjustment
6
9
\u2014
\u2014
15
Changes in exchange rates
(46)
(31)
(36)
\u2014
(113)
Total movements
222
35
117
7
381
Balance at December 31, 2022
Cost of acquisition
1,405
2,288
1,127
179
4,999
Cost of internally developed intangibles
\u2014
\u2014
\u2014
268
268
Accumulated amortization/impairment
(28)
(223)
(654)
(290)
(1,195)
Carrying value at December 31, 2022
1,377
2,065
473
157
4,072
Movements in 2023
Acquisitions through business combinations
34
16
26
(4)
72
Investments - including internally developed intangibles
\u2014
\u2014
\u2014
21
21
Amortization
\u2014
(17)
(31)
(32)
(80)
Impairments, including reversals thereof
\u2014
\u2014
\u2014
(1)
(1)
Hyperinflation adjustment
10
17
\u2014
\u2014
27
Changes in exchange rates
9
(64)
23
2
(30)
Total movements
53
(48)
18
(14)
9
Balance at December 31, 2023
Cost of acquisition
1,458
2,255
1,151
180
5,044
Cost of internally developed intangibles
\u2014
\u2014
\u2014
273
273
Accumulated amortization/impairment
(28)
(238)
(660)
(310)
(1,236)
Carrying value at December 31, 2023
1,430
2,017
491
143
4,081
* As per June 2022, T\u00fcrkiye has been identified as a hyperinflationary economy. IAS 29 \"Financial Reporting in Hyperinflationary Economies\" has been applied for our activities in T\u00fcrkiye as from January 1, 2022. Refer to Note 7 Financing income and expenses for details on the
financial impact from applying IAS 29.
Brands
Brands as included in the table below comprise of brands with indefinite useful lives and
brands with finite useful lives. Brands with indefinite useful lives are almost fully related to
Dulux, which is the major brand, due to its global presence, high recognition and strategic
nature. Other intangibles include licenses, know-how, intellectual property rights, software
and development cost. Both at year-end 2023 and 2022, there were no material purchase
commitments for individual intangible assets. No intangible assets were registered as
security for bank loans.
Acquisitions through business combinations
The additions from acquisitions in 2023 primarily relate to the acquisition of the Huarun
business, China. In 2022, additions from acquisitions primarily related to the acquisition of
Grupo Orbis S.A., Colombia, and of the wheel liquid coatings business of Lankwitzer
Lackfabrick GmbH, Germany. Refer to Note 2 Scope of consolidation for disclosures on
acquisitions.
The paints business of Grupo Orbis has been allocated to business unit Decorative Paints
Latin America in 2022. In 2022, the Grupo Orbis coatings businesses were reported in
Performance Coatings Other. In 2023, these businesses have been included in the
respective Performance Coatings business units.
Annual impairment testing
Goodwill and other intangibles with indefinite useful lives are tested for impairment per
business unit (one level below segment level) annually or whenever an impairment trigger
exists, applying the value-in-use method.
The impairment test is based on the five-year plan, which contains euro-denominated cash
flow projections for each of the business units. After the five-year plan period the terminal
growth rate is applied, unless a different approach would be more appropriate. Elements
considered to determine if a different approach would be more appropriate include high
growth/emerging economies, geographic expansion opportunities, introduction of new
product ranges and opportunities from market consolidation. In 2023, this exception was
applied for Decorative Paints China and North Asia and for Decorative Paints South East
and South Asia, for which the revenue growth and margin development projections were
extrapolated beyond the five-year explicit forecast period for another five years, applying
reduced average growth rates.
Macro-economic developments and other relevant variables (e.g. inflation, geopolitical
uncertainties, climate risks - refer to Note 1 Summary of material accounting policies for a
description of the impact from climate change on the financial statements) are closely
monitored to ensure that the impact on the estimated future cash flows is reflected in the
models which are used to assess the value of AkzoNobel's asset base. The impact of
climate change did not have a significant effect on the estimated future cash flows.
Goodwill and other intangibles per business unit
in \u20ac millions
Goodwill
Brands with indefinite
useful lives
Other intangibles with
finite useful lives
Total intangibles
2022
2023
2022
2023
2022
2023
2022
2023
Decorative Paints Europe, Middle East and Africa
107
106
837
836
136
126
1,080
1,068
Decorative Paints Latin America
138
179
102
90
142
193
382
462
Decorative Paints China and North Asia
\u2014
32
680
643
9
35
689
710
Decorative Paints South East and South Asia
8
7
221
208
12
10
241
225
Powder Coatings
152
155
\u2014
\u2014
19
34
171
189
Marine and Protective Coatings
197
210
\u2014
\u2014
94
96
291
306
Automotive and Specialty Coatings
290
301
\u2014
\u2014
156
150
446
451
Industrial Coatings
413
440
\u2014
\u2014
110
125
523
565
Performance Coatings Other
72
\u2014
\u2014
\u2014
59
\u2014
131
\u2014
Corporate and other
\u2014
\u2014
\u2014
\u2014
118
105
118
105
Total
1,377
1,430
1,840
1,777
855
874
4,072
4,081
The key assumptions used in the projections for annual impairment testing are:
\u2022 Revenue growth per year: based on actual experience, analysis of markets and GDP
growth, and expected market share developments
\u2022 Margin development per year: based on actual experience and management\u2019s long-
term projections
\u2022 Weighted average cost of capital per year: the pre-tax discount rate determined per
business unit, reflecting current market assessments of the time value of money and
the risks specifically associated with the business unit
Key assumptions 2023
in % per year
Average revenue
growth 2024-2028
Pre-tax weighted
average cost of
capital 2024 -2028
Decorative Paints
2.4%-5.8%
10.8%-15.3%
Performance Coatings
2.0%-3.6%
10.7%-11.2%
Key assumptions 2022
in % per year
Average revenue
growth 2023-2027
Pre-tax weighted
average cost of
capital 2023-2027
Decorative Paints
1.8-6.7%
11.1-15.9%
Performance Coatings
1.3-4.0%
10.8-12.4%
For all business units, a terminal value was calculated based on long-term inflation
expectations of 2% (2022: 2%). The estimated pre-tax cash flows have been discounted to
their present value using a pre-tax weighted average cost of capital. Discount rates have
been determined for each business unit and range from 10.7% to 15.3% (2022: 10.8% to
15.9%), with a weighted average of 11.5% (2022: 11.7%). Both the long-term inflation
expectations and the discount rates are reflective of the inflation expectation in the
eurozone.
In 2023 and 2022, no impairment charges were recognized in relation to the annual
impairment test.
In addition to the annual impairment test, sensitivity tests were performed to assess the
impact of changes in the key assumptions revenue growth (50% lower), margin
development (1 percentage point lower) and weighted average cost of capital
(1\u00a0percentage point higher).
Given the continued uncertainty in the macro-economic environment, additional sensitivity
tests have been performed, like last year, in order to assess the impact of more severe
adverse changes in key assumptions.
Both the regular sensitivity tests and the additional sensitivity tests show that the changes
in key assumptions would not cause carrying amounts to exceed recoverable amounts for
any of the business units, except for Decorative Paints China and North Asia, where the
recently acquired Huarun business is included.
Impairment of specific intangible assets
Periodical evaluations are performed in order to ensure timely detection of triggers that
might indicate impairment of specific assets. Whenever such triggers are noted, the related
assets are assessed for impairment as appropriate. In 2023 and 2022, no significant
impairment charges were recorded in relation to specific assets.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoodwillExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-451": { "value": "
Note 10: Intangible assets
Intangible assets
in \u20ac millions
Goodwill
Brands
Customer lists
Other intangibles
Total
Balance at December 31, 2021
Cost of acquisition
1,182
2,239
972
171
4,564
Cost of internally developed intangibles
\u2014
\u2014
\u2014
241
241
Accumulated amortization/impairment
(27)
(209)
(616)
(263)
(1,115)
Carrying value at December 31, 2021
1,155
2,030
356
149
3,690
Impact IAS 29 Hyperinflation T\u00fcrkiye*
\u2014
\u2014
\u2014
1
1
Carrying value at January 1, 2022
1,155
2,030
356
150
3,691
Movements in 2022
Acquisitions through business combinations
262
72
193
11
538
Investments - including internally developed intangibles
\u2014
\u2014
\u2014
30
30
Amortization
\u2014
(15)
(40)
(32)
(87)
Impairments, including reversals thereof
\u2014
\u2014
\u2014
(2)
(2)
Hyperinflation adjustment
6
9
\u2014
\u2014
15
Changes in exchange rates
(46)
(31)
(36)
\u2014
(113)
Total movements
222
35
117
7
381
Balance at December 31, 2022
Cost of acquisition
1,405
2,288
1,127
179
4,999
Cost of internally developed intangibles
\u2014
\u2014
\u2014
268
268
Accumulated amortization/impairment
(28)
(223)
(654)
(290)
(1,195)
Carrying value at December 31, 2022
1,377
2,065
473
157
4,072
Movements in 2023
Acquisitions through business combinations
34
16
26
(4)
72
Investments - including internally developed intangibles
\u2014
\u2014
\u2014
21
21
Amortization
\u2014
(17)
(31)
(32)
(80)
Impairments, including reversals thereof
\u2014
\u2014
\u2014
(1)
(1)
Hyperinflation adjustment
10
17
\u2014
\u2014
27
Changes in exchange rates
9
(64)
23
2
(30)
Total movements
53
(48)
18
(14)
9
Balance at December 31, 2023
Cost of acquisition
1,458
2,255
1,151
180
5,044
Cost of internally developed intangibles
\u2014
\u2014
\u2014
273
273
Accumulated amortization/impairment
(28)
(238)
(660)
(310)
(1,236)
Carrying value at December 31, 2023
1,430
2,017
491
143
4,081
* As per June 2022, T\u00fcrkiye has been identified as a hyperinflationary economy. IAS 29 \"Financial Reporting in Hyperinflationary Economies\" has been applied for our activities in T\u00fcrkiye as from January 1, 2022. Refer to Note 7 Financing income and expenses for details on the
financial impact from applying IAS 29.
Brands
Brands as included in the table below comprise of brands with indefinite useful lives and
brands with finite useful lives. Brands with indefinite useful lives are almost fully related to
Dulux, which is the major brand, due to its global presence, high recognition and strategic
nature. Other intangibles include licenses, know-how, intellectual property rights, software
and development cost. Both at year-end 2023 and 2022, there were no material purchase
commitments for individual intangible assets. No intangible assets were registered as
security for bank loans.
Acquisitions through business combinations
The additions from acquisitions in 2023 primarily relate to the acquisition of the Huarun
business, China. In 2022, additions from acquisitions primarily related to the acquisition of
Grupo Orbis S.A., Colombia, and of the wheel liquid coatings business of Lankwitzer
Lackfabrick GmbH, Germany. Refer to Note 2 Scope of consolidation for disclosures on
acquisitions.
The paints business of Grupo Orbis has been allocated to business unit Decorative Paints
Latin America in 2022. In 2022, the Grupo Orbis coatings businesses were reported in
Performance Coatings Other. In 2023, these businesses have been included in the
respective Performance Coatings business units.
Annual impairment testing
Goodwill and other intangibles with indefinite useful lives are tested for impairment per
business unit (one level below segment level) annually or whenever an impairment trigger
exists, applying the value-in-use method.
The impairment test is based on the five-year plan, which contains euro-denominated cash
flow projections for each of the business units. After the five-year plan period the terminal
growth rate is applied, unless a different approach would be more appropriate. Elements
considered to determine if a different approach would be more appropriate include high
growth/emerging economies, geographic expansion opportunities, introduction of new
product ranges and opportunities from market consolidation. In 2023, this exception was
applied for Decorative Paints China and North Asia and for Decorative Paints South East
and South Asia, for which the revenue growth and margin development projections were
extrapolated beyond the five-year explicit forecast period for another five years, applying
reduced average growth rates.
Macro-economic developments and other relevant variables (e.g. inflation, geopolitical
uncertainties, climate risks - refer to Note 1 Summary of material accounting policies for a
description of the impact from climate change on the financial statements) are closely
monitored to ensure that the impact on the estimated future cash flows is reflected in the
models which are used to assess the value of AkzoNobel's asset base. The impact of
climate change did not have a significant effect on the estimated future cash flows.
Goodwill and other intangibles per business unit
in \u20ac millions
Goodwill
Brands with indefinite
useful lives
Other intangibles with
finite useful lives
Total intangibles
2022
2023
2022
2023
2022
2023
2022
2023
Decorative Paints Europe, Middle East and Africa
107
106
837
836
136
126
1,080
1,068
Decorative Paints Latin America
138
179
102
90
142
193
382
462
Decorative Paints China and North Asia
\u2014
32
680
643
9
35
689
710
Decorative Paints South East and South Asia
8
7
221
208
12
10
241
225
Powder Coatings
152
155
\u2014
\u2014
19
34
171
189
Marine and Protective Coatings
197
210
\u2014
\u2014
94
96
291
306
Automotive and Specialty Coatings
290
301
\u2014
\u2014
156
150
446
451
Industrial Coatings
413
440
\u2014
\u2014
110
125
523
565
Performance Coatings Other
72
\u2014
\u2014
\u2014
59
\u2014
131
\u2014
Corporate and other
\u2014
\u2014
\u2014
\u2014
118
105
118
105
Total
1,377
1,430
1,840
1,777
855
874
4,072
4,081
The key assumptions used in the projections for annual impairment testing are:
\u2022 Revenue growth per year: based on actual experience, analysis of markets and GDP
growth, and expected market share developments
\u2022 Margin development per year: based on actual experience and management\u2019s long-
term projections
\u2022 Weighted average cost of capital per year: the pre-tax discount rate determined per
business unit, reflecting current market assessments of the time value of money and
the risks specifically associated with the business unit
Key assumptions 2023
in % per year
Average revenue
growth 2024-2028
Pre-tax weighted
average cost of
capital 2024 -2028
Decorative Paints
2.4%-5.8%
10.8%-15.3%
Performance Coatings
2.0%-3.6%
10.7%-11.2%
Key assumptions 2022
in % per year
Average revenue
growth 2023-2027
Pre-tax weighted
average cost of
capital 2023-2027
Decorative Paints
1.8-6.7%
11.1-15.9%
Performance Coatings
1.3-4.0%
10.8-12.4%
For all business units, a terminal value was calculated based on long-term inflation
expectations of 2% (2022: 2%). The estimated pre-tax cash flows have been discounted to
their present value using a pre-tax weighted average cost of capital. Discount rates have
been determined for each business unit and range from 10.7% to 15.3% (2022: 10.8% to
15.9%), with a weighted average of 11.5% (2022: 11.7%). Both the long-term inflation
expectations and the discount rates are reflective of the inflation expectation in the
eurozone.
In 2023 and 2022, no impairment charges were recognized in relation to the annual
impairment test.
In addition to the annual impairment test, sensitivity tests were performed to assess the
impact of changes in the key assumptions revenue growth (50% lower), margin
development (1 percentage point lower) and weighted average cost of capital
(1\u00a0percentage point higher).
Given the continued uncertainty in the macro-economic environment, additional sensitivity
tests have been performed, like last year, in order to assess the impact of more severe
adverse changes in key assumptions.
Both the regular sensitivity tests and the additional sensitivity tests show that the changes
in key assumptions would not cause carrying amounts to exceed recoverable amounts for
any of the business units, except for Decorative Paints China and North Asia, where the
recently acquired Huarun business is included.
Impairment of specific intangible assets
Periodical evaluations are performed in order to ensure timely detection of triggers that
might indicate impairment of specific assets. Whenever such triggers are noted, the related
assets are assessed for impairment as appropriate. In 2023 and 2022, no significant
impairment charges were recorded in relation to specific assets.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-454": { "value": "
Annual impairment testing
Goodwill and other intangibles with indefinite useful lives are tested for impairment per
business unit (one level below segment level) annually or whenever an impairment trigger
exists, applying the value-in-use method.
The impairment test is based on the five-year plan, which contains euro-denominated cash
flow projections for each of the business units. After the five-year plan period the terminal
growth rate is applied, unless a different approach would be more appropriate. Elements
considered to determine if a different approach would be more appropriate include high
growth/emerging economies, geographic expansion opportunities, introduction of new
product ranges and opportunities from market consolidation. In 2023, this exception was
applied for Decorative Paints China and North Asia and for Decorative Paints South East
and South Asia, for which the revenue growth and margin development projections were
extrapolated beyond the five-year explicit forecast period for another five years, applying
reduced average growth rates.
Macro-economic developments and other relevant variables (e.g. inflation, geopolitical
uncertainties, climate risks - refer to Note 1 Summary of material accounting policies for a
description of the impact from climate change on the financial statements) are closely
monitored to ensure that the impact on the estimated future cash flows is reflected in the
models which are used to assess the value of AkzoNobel's asset base. The impact of
climate change did not have a significant effect on the estimated future cash flows.
Goodwill and other intangibles per business unit
in \u20ac millions
Goodwill
Brands with indefinite
useful lives
Other intangibles with
finite useful lives
Total intangibles
2022
2023
2022
2023
2022
2023
2022
2023
Decorative Paints Europe, Middle East and Africa
107
106
837
836
136
126
1,080
1,068
Decorative Paints Latin America
138
179
102
90
142
193
382
462
Decorative Paints China and North Asia
\u2014
32
680
643
9
35
689
710
Decorative Paints South East and South Asia
8
7
221
208
12
10
241
225
Powder Coatings
152
155
\u2014
\u2014
19
34
171
189
Marine and Protective Coatings
197
210
\u2014
\u2014
94
96
291
306
Automotive and Specialty Coatings
290
301
\u2014
\u2014
156
150
446
451
Industrial Coatings
413
440
\u2014
\u2014
110
125
523
565
Performance Coatings Other
72
\u2014
\u2014
\u2014
59
\u2014
131
\u2014
Corporate and other
\u2014
\u2014
\u2014
\u2014
118
105
118
105
Total
1,377
1,430
1,840
1,777
855
874
4,072
4,081
The key assumptions used in the projections for annual impairment testing are:
\u2022 Revenue growth per year: based on actual experience, analysis of markets and GDP
growth, and expected market share developments
\u2022 Margin development per year: based on actual experience and management\u2019s long-
term projections
\u2022 Weighted average cost of capital per year: the pre-tax discount rate determined per
business unit, reflecting current market assessments of the time value of money and
the risks specifically associated with the business unit
Key assumptions 2023
in % per year
Average revenue
growth 2024-2028
Pre-tax weighted
average cost of
capital 2024 -2028
Decorative Paints
2.4%-5.8%
10.8%-15.3%
Performance Coatings
2.0%-3.6%
10.7%-11.2%
Key assumptions 2022
in % per year
Average revenue
growth 2023-2027
Pre-tax weighted
average cost of
capital 2023-2027
Decorative Paints
1.8-6.7%
11.1-15.9%
Performance Coatings
1.3-4.0%
10.8-12.4%
For all business units, a terminal value was calculated based on long-term inflation
expectations of 2% (2022: 2%). The estimated pre-tax cash flows have been discounted to
their present value using a pre-tax weighted average cost of capital. Discount rates have
been determined for each business unit and range from 10.7% to 15.3% (2022: 10.8% to
15.9%), with a weighted average of 11.5% (2022: 11.7%). Both the long-term inflation
expectations and the discount rates are reflective of the inflation expectation in the
eurozone.
In 2023 and 2022, no impairment charges were recognized in relation to the annual
impairment test.
In addition to the annual impairment test, sensitivity tests were performed to assess the
impact of changes in the key assumptions revenue growth (50% lower), margin
development (1 percentage point lower) and weighted average cost of capital
(1\u00a0percentage point higher).
Given the continued uncertainty in the macro-economic environment, additional sensitivity
tests have been performed, like last year, in order to assess the impact of more severe
adverse changes in key assumptions.
Both the regular sensitivity tests and the additional sensitivity tests show that the changes
in key assumptions would not cause carrying amounts to exceed recoverable amounts for
any of the business units, except for Decorative Paints China and North Asia, where the
recently acquired Huarun business is included.
Impairment of specific intangible assets
Periodical evaluations are performed in order to ensure timely detection of triggers that
might indicate impairment of specific assets. Whenever such triggers are noted, the related
assets are assessed for impairment as appropriate. In 2023 and 2022, no significant
impairment charges were recorded in relation to specific assets.
Impairment of specific property, plant and equipment assets
Periodical evaluations are performed in order to ensure timely detection of triggers that
might indicate impairment of specific assets. Whenever such triggers are noted, the related
assets are assessed for impairment as appropriate. In 2023 and 2022, no significant
impairments were recognized.", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-455": { "value": "
Note 11: Property, plant and equipment
Property, plant and equipment
in \u20ac millions
Land and buildings
Plant equipment
and machinery
Other equipment
Construction in
progress and
prepayments on
projects
Assets not used
Total
Balance at December 31, 2021
Cost of acquisition
1,546
2,124
919
300
10
4,899
Accumulated depreciation/impairment
(794)
(1,509)
(786)
(3)
(7)
(3,099)
Carrying value at December 31, 2021
752
615
133
297
3
1,800
Impact IAS 29 Hyperinflation T\u00fcrkiye*
10
3
\u2014
2
\u2014
15
Carrying value at January 1, 2022
762
618
133
299
3
1,815
Movements in 2022
Acquisitions
75
45
5
\u2014
\u2014
125
Divestments
(9)
(4)
(2)
(5)
\u2014
(20)
Investments
2
11
6
242
1
262
Transfer between categories
53
87
36
(176)
\u2014
\u2014
Depreciation
(46)
(105)
(32)
\u2014
\u2014
(183)
Hyperinflation adjustment
27
2
\u2014
1
\u2014
30
Changes in exchange rates
(32)
(31)
(7)
9
\u2014
(61)
Total movements
70
5
6
71
1
153
Balance at December 31, 2022
Cost of acquisition
1,658
2,208
923
373
11
5,173
Accumulated depreciation/impairment
(826)
(1,585)
(784)
(3)
(7)
(3,205)
Carrying value at December 31, 2022
832
623
139
370
4
1,968
Movements in 2023
Acquisitions
5
1
\u2014
\u2014
\u2014
6
Divestments
(14)
(3)
(3)
(1)
(1)
(22)
Investments
2
8
2
253
\u2014
265
Transfer between categories
70
145
40
(255)
\u2014
\u2014
Depreciation
(44)
(101)
(32)
\u2014
(1)
(178)
Impairments, including reversals thereof
(1)
(2)
\u2014
\u2014
\u2014
(3)
Hyperinflation adjustment
29
13
1
8
\u2014
51
Changes in exchange rates
(40)
(21)
(9)
(23)
\u2014
(93)
Total movements
7
40
(1)
(18)
(2)
26
Balance at December 31, 2023
Cost of acquisition
1,656
2,310
904
354
10
5,234
Accumulated depreciation/impairment
(817)
(1,647)
(766)
(2)
(8)
(3,240)
Carrying value at December 31, 2023
839
663
138
352
2
1,994
* As per June 2022, T\u00fcrkiye has been identified as a hyperinflationary economy. IAS 29 \"Financial Reporting in Hyperinflationary Economies\" has been applied for our activities in T\u00fcrkiye as from January 1, 2022. Refer to Note 7 Financing income and expenses for details on the
financial impact from applying IAS 29.
Acquisitions
The additions from acquisitions in 2023 primarily relate to the acquisition of the Huarun
business, China. The additions from acquisitions in 2022 primarily relate to the acquisition
of Grupo Orbis S.A., Colombia, and of the wheel liquid coatings business of Lankwitzer
Lackfabrik GmbH, Germany. Refer to Note 2 Scope of consolidation for disclosures on
acquisitions.
Investments in property, plant and equipment
In both 2023 and 2022 we have large investment projects. These include setting up a new
R&D center and relocating the production site in Barcelona, Spain, upgrading a Powder
Coatings plant in Gwalior, India, and establishing a new Powder Coatings manufacturing
line at our Hanoi, Vietnam location, as well as relocating our Wood Coatings site to High
Point, US.
Impairment of specific property, plant and equipment assets
Periodical evaluations are performed in order to ensure timely detection of triggers that
might indicate impairment of specific assets. Whenever such triggers are noted, the related
assets are assessed for impairment as appropriate. In 2023 and 2022, no significant
impairments were recognized.", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-456": { "value": "
Note 12: Leases
Right-of-use assets
in \u20ac millions
Land
Buildings
Other
Total
Balance at January 1, 2022
Cost of acquisition
61
372
109
542
Accumulated depreciation/impairment
(19)
(170)
(49)
(238)
Carrying value at January 1, 2022
42
202
60
304
Movements in 2022
Acquisitions
2
5
3
10
Additions/modifications
\u2014
58
30
88
Disposals
\u2014
(7)
(2)
(9)
Depreciation
(3)
(64)
(31)
(98)
Impairments, including reversals thereof
\u2014
(3)
\u2014
(3)
Changes in exchange rates
1
(2)
\u2014
(1)
Total movements
\u2014
(13)
\u2014
(13)
Cost of acquisition
64
393
117
574
Accumulated depreciation/impairment
(22)
(204)
(57)
(283)
Carrying value at December 31, 2022
42
189
60
291
Movements in 2023
Acquisitions
15
\u2014
\u2014
15
Additions/modifications
2
61
46
109
Disposals
(1)
(5)
(6)
(12)
Depreciation
(2)
(63)
(34)
(99)
Changes in exchange rates
(2)
2
(2)
(2)
Total movements
12
(5)
4
11
Cost of acquisition
77
399
123
599
Accumulated depreciation/impairment
(23)
(215)
(59)
(297)
Carrying value at December 31, 2023
54
184
64
302
AkzoNobel mainly leases land, office spaces, stores and cars. Some leases provide for
additional rent payments that are based on changes in local price indices.
Some property leases contain extension options exercisable by AkzoNobel up to one year
before the end of the non-cancellable contract period. We have estimated that the lease
liability would increase by less than 20%, if we would exercise the extension options which
are currently not included in the valuation of the lease liability. This excludes so-called
\u201cevergreens\u201d or perpetual leases.
Total net cash outflow from financing activities related to leases recognized on the balance
sheet was \u20ac107 million (2022: \u20ac104 million). Net cash outflow for leases not recognized on
the balance sheet was \u20ac21 million (2022: \u20ac19 million).
Refer to Note 26 Financial risk management for the maturities of lease liabilities.
The table below shows the total impact from leases on our profit and loss account.
Income/(expenses) recognized in profit and loss
in \u20ac millions
2022
2023
Sub lease income
2
\u2014
Depreciation right-of-use assets
(98)
(99)
Impairments for right-of-use assets
(3)
\u2014
Interest expense on lease liabilities
(6)
(7)
Short-term lease expenses
(11)
(14)
Expenses relating to low-value assets
(4)
(5)
Variable lease expenses
(4)
(2)
Total expenses
(124)
(127)
Impairments of specific right-of-use assets
Periodical evaluations are performed in order to ensure timely detection of triggers that
might indicate impairment of specific assets. Whenever such triggers are noted, the related
assets are assessed for impairment as appropriate.
In 2023 and 2022, no significant impairments were recognized.", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-459": { "value": "
Note 13: Investments in associates
The total value of investments in associates at December 31, 2023, amounted to \u20ac216
million (2022: \u20ac193 million) and consisted of our equity share of \u20ac214 million (2022: \u20ac191
million) and loans granted of \u20ac2 million (2022: \u20ac2 million).
Balance sheet information of our share in associates
Associates
in \u20ac millions, at December 31
2022
2023
Condensed balance sheet
Non-current assets
97
108
Current assets
152
163
Total assets
249
271
Shareholders\u2019equity
191
214
Non-current liabilities
6
8
Current liabilities
52
49
Total liabilities and equity
249
271
Profit and loss of our share in associates
Associates
in \u20ac millions
2022
2023
Condensed statement of income
Revenue
218
209
Profit before tax
25
38
Profit for the period
18
27
In 2023, the results from associates amounted to a profit of \u20ac27 million (2022: \u20ac18 million).
No significant contingent liabilities exist related to associates. The largest associate of
AkzoNobel is Metlac S.p.a., incorporated in Italy. None of the associates are considered
individually material to the group.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-458": { "value": "
Note 13: Investments in associates
The total value of investments in associates at December 31, 2023, amounted to \u20ac216
million (2022: \u20ac193 million) and consisted of our equity share of \u20ac214 million (2022: \u20ac191
million) and loans granted of \u20ac2 million (2022: \u20ac2 million).
Balance sheet information of our share in associates
Associates
in \u20ac millions, at December 31
2022
2023
Condensed balance sheet
Non-current assets
97
108
Current assets
152
163
Total assets
249
271
Shareholders\u2019equity
191
214
Non-current liabilities
6
8
Current liabilities
52
49
Total liabilities and equity
249
271
Profit and loss of our share in associates
Associates
in \u20ac millions
2022
2023
Condensed statement of income
Revenue
218
209
Profit before tax
25
38
Profit for the period
18
27
In 2023, the results from associates amounted to a profit of \u20ac27 million (2022: \u20ac18 million).
No significant contingent liabilities exist related to associates. The largest associate of
AkzoNobel is Metlac S.p.a., incorporated in Italy. None of the associates are considered
individually material to the group.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-457": { "value": "
Note 13: Investments in associates
The total value of investments in associates at December 31, 2023, amounted to \u20ac216
million (2022: \u20ac193 million) and consisted of our equity share of \u20ac214 million (2022: \u20ac191
million) and loans granted of \u20ac2 million (2022: \u20ac2 million).
Balance sheet information of our share in associates
Associates
in \u20ac millions, at December 31
2022
2023
Condensed balance sheet
Non-current assets
97
108
Current assets
152
163
Total assets
249
271
Shareholders\u2019equity
191
214
Non-current liabilities
6
8
Current liabilities
52
49
Total liabilities and equity
249
271
Profit and loss of our share in associates
Associates
in \u20ac millions
2022
2023
Condensed statement of income
Revenue
218
209
Profit before tax
25
38
Profit for the period
18
27
In 2023, the results from associates amounted to a profit of \u20ac27 million (2022: \u20ac18 million).
No significant contingent liabilities exist related to associates. The largest associate of
AkzoNobel is Metlac S.p.a., incorporated in Italy. None of the associates are considered
individually material to the group.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestsInOtherEntitiesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-460": { "value": "
Note 14: Financial non-current assets
Financial non-current assets can be broken down as per the table below.
Financial non-current assets
in \u20ac millions, at December 31
2022
2023
Pension assets
1,029
1,017
Loans and receivables
362
299
Other financial non-current assets
84
93
Total
1,475
1,409
Pension assets (\u20ac1,017 million) relate to pension plans in an asset position (2022: \u20ac1,029
million). For more information on post-retirement benefit plans, refer to Note 18 Post-
retirement benefit provisions.
Loans and receivables include the subordinated loan granted to the Pension Fund APF in
the Netherlands valued at \u20ac90 million (2022: \u20ac89 million).
Loans and receivables are considered to have low credit risk; the impairment provision
recognized during the period was limited to 12 months expected losses.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentAssetsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-461": { "value": "
Loans and receivables are considered to have low credit risk; the impairment provision
recognized during the period was limited to 12 months expected losses
Trade receivables are presented net of an allowance for impairment of \u20ac39 million (2022:
\u20ac42 million). In 2023, \u20ac14 million of impairment losses were recognized in the statement of
income (2022: \u20ac17 million) and \u20ac8 million was reversed (2022: \u20ac8 million). Since the total
amount of impairment losses under IFRS 9 is not significant, no separate disclosure was
made in the statement of income.
Allowance for impairment of trade receivables
in \u20ac millions
2022
2023
Balance at January 1
42
42
Additions charged to income
17
14
Release of unused amounts
(8)
(8)
Utilization
(9)
(8)
Acquisitions
2
\u2014
Currency exchange differences
(2)
(1)
Balance at December 31
42
39
", "dimensions": { "concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-462": { "value": "
Note 15: Inventories
The total carrying value of inventories as per December 31, 2023 has decreased compared
to December 31, 2022, mainly due to the combined impact of lower raw material prices,
currency translation and lower volumes. Inventories can be broken down as per the table
below.
Inventories
in \u20ac millions, at December 31
2022
2023
Raw materials and supplies
676
579
Work in progress
104
91
Finished products and goods for resale
1,063
979
Total
1,843
1,649
Of the total carrying value of inventories at year-end 2023, \u20ac10 million was measured at net
realizable value (2022: \u20ac16 million). In 2023, \u20ac86 million was recognized in the statement of
income for the write-down of inventories (2022: \u20ac86 million), while \u20ac20 million of write-
downs were reversed (2022: \u20ac30 million). There are no inventories subject to retention of
title clauses.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInventoriesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-463": { "value": "
Note 16: Trade and other receivables
Trade and other receivables can be broken down as per the table below.
Trade and other receivables
in \u20ac millions, at December 31
2022
2023
Trade receivables
2,123
2,187
Prepaid expenses
58
39
Tax receivables other than income tax
156
154
FX contracts
18
14
Receivables from associates
4
\u2014
Other receivables
88
89
Total
2,447
2,483
Other receivables consist of a large number of individually immaterial items.
Ageing of trade receivables
in \u20ac millions, at December 31
2022
2023
Performing trade receivables
1,987
2,040
Past due trade receivables
< 3 months
104
118
> 3 months
74
68
Allowance for impairment
(42)
(39)
Total trade receivables
2,123
2,187
Trade receivables are presented net of an allowance for impairment of \u20ac39 million (2022:
\u20ac42 million). In 2023, \u20ac14 million of impairment losses were recognized in the statement of
income (2022: \u20ac17 million) and \u20ac8 million was reversed (2022: \u20ac8 million). Since the total
amount of impairment losses under IFRS 9 is not significant, no separate disclosure was
made in the statement of income.
Allowance for impairment of trade receivables
in \u20ac millions
2022
2023
Balance at January 1
42
42
Additions charged to income
17
14
Release of unused amounts
(8)
(8)
Utilization
(9)
(8)
Acquisitions
2
\u2014
Currency exchange differences
(2)
(1)
Balance at December 31
42
39
", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-464": { "value": "
Note 17: Group equity
Composition of share capital at year-end 2022
in \u20ac
Authorized share
capital
Subscribed share
capital
Priority shares (48 with nominal value of \u20ac400)
19,200
19,200
Cumulative preferred shares (200 million with nominal value of
\u20ac0.50)
100,000,000
\u2014
Common shares (500 million with nominal value of \u20ac0.50)
250,000,000
87,187,614
Total
350,019,200
87,206,814
Composition of share capital at year-end 2023
in \u20ac
Authorized share
capital
Subscribed share
capital
Priority shares (48 with nominal value of \u20ac400)
19,200
19,200
Cumulative preferred shares (200 million with nominal value of
\u20ac0.50)
100,000,000
\u2014
Common shares (500 million with nominal value of \u20ac0.50)
250,000,000
85,300,338
Total
350,019,200
85,319,538
Outstanding common shares
Number of shares
2022
2023
Outstanding at January\u00a01
181,609,509
174,375,227
Issued in connection to performance-related share plan,
restricted share plan and share-matching plan
214,262
172,344
Shares cancelled related to share buyback from previous year
(2,744,210)
(3,946,896)
Shares bought back during the year
(8,651,230)
\u2014
Shares bought back during the year not yet cancelled
3,946,896
\u2014
Outstanding at December 31
174,375,227
170,600,675
Weighted average number of common shares
Number of shares
2022
2023
Weighted average number of common shares
174,735,139
170,573,555
Subscribed share capital
For further details on subscribed share capital, refer to Note F Shareholder's equity in the
Company financial statements.
Cash flow hedge reserve
The cash flow hedge reserve comprises the effective portion of the cumulative net change
in the fair value of hedging instruments used in cash flow hedges, pending subsequent
recognition in the statement of income or in the initial cost or other carrying amount of a
non-financial asset or non-financial liability.
Cumulative translation reserve
Cumulative translation reserves comprise all foreign exchange differences arising from the
translation of the financial statements of foreign operations, as well as from the translation
of intercompany loans with a permanent nature and liabilities and derivatives that hedge the
net investments in a foreign subsidiary.
Equity-settled transactions
Equity-settled transactions relate to the performance-related and restricted share plans and
the share-matching plan, whereby shares are granted to the Board of Management,
Executive Committee, other executives and certain non-executive employee categories. For
details on share-based compensation, refer to Note 6 Employee benefits.
Dividend
Our dividend policy is to pay a stable to rising dividend. In 2023, an interim dividend of
\u20ac0.44 (2022: \u20ac0.44) per common share was paid. We propose a 2023 final dividend of
\u20ac1.54 (2022: \u20ac1.54) per common share, which would equal a total 2023 dividend of \u20ac1.98
(2022: \u20ac1.98).
Share buybacks
In February 2022, a \u20ac500 million share buyback program was announced which was
completed in 2022. As at December 31, 2022, a total of 7.3 million shares had been
acquired under this program, of which 3.4 million shares were cancelled.
All 3.9 million shares which were repurchased in 2022 and still outstanding at December
31, 2022, were cancelled in 2023.
For further details on weighted average number of shares, refer to Note 9 Earnings per
share.
Non-controlling interests
None of the non-controlling interests are considered individually material to the group. The
effects of share transactions with non-controlling interest shareholders are recorded in
equity insofar these do not lead to changes in control.
Non-controlling interests
2022
2023
Group entity
Partner at year-end 2023
%
Equity stake
in \u20ac millions
%
Equity stake
in \u20ac millions
Akzo Nobel India Limited, Kolkata, India
Privately held, India
25.24
54
25.24
55
PT ICI Paints Indonesia, Jakarta, Indonesia
PT DWI Satrya Utama, Indonesia
45.00
31
45.00
32
Akzo Nobel Kemipol A.S., Izmir, T\u00fcrkiye
Altan, Eyy\u00fcp and other family members
49.00
24
49.00
24
International Paints of Shanghai Co. Ltd, Shanghai, China
Shanghai Huayi Fine Chemical Co. Ltd and China National
Shipbuilding Equipment & Materials Corp.
49.00
16
49.00
21
Akzo Nobel Paints (Malaysia) Sdn. Bhd.,Kuala Lumpur, Malaysia
Permodalan Nasional Berhad, Malaysia
40.05
20
40.05
17
Akzo Nobel Saudi Arabia Ltd, Saudi Arabia
Yousuf Bin Ahmed Kanoo Co. Ltd, Saudi Arabia
40.00
14
40.00
16
Akzo Nobel Oman SAOC, Muscat, Oman
Omar Zawawi Establishment LLC, Oman
50.00
12
50.00
12
Akzo Nobel UAE Paints L.L.C., United Arab Emirates
Kanoo Group, United Arab Emirates
40.00
8
40.00
11
Societe Tunisienne de Peintures Astral S.A., Megrine, Tunisia
Several people
40.00
8
40.00
10
International Paint (Korea) Ltd, Busan, South-Korea
Noroo Holdings, South Korea
40.00
6
40.00
6
Akzo Nobel Coatings SA, Casablanca, Morocco
Soci\u00e9t\u00e9 Industrielle de Peinture and several people
40.00
4
40.00
5
Others
18
15
Total
215
224
", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-465": { "value": "
Composition of share capital at year-end 2022
in \u20ac
Authorized share
capital
Subscribed share
capital
Priority shares (48 with nominal value of \u20ac400)
19,200
19,200
Cumulative preferred shares (200 million with nominal value of
\u20ac0.50)
100,000,000
\u2014
Common shares (500 million with nominal value of \u20ac0.50)
250,000,000
87,187,614
Total
350,019,200
87,206,814
Composition of share capital at year-end 2023
in \u20ac
Authorized share
capital
Subscribed share
capital
Priority shares (48 with nominal value of \u20ac400)
19,200
19,200
Cumulative preferred shares (200 million with nominal value of
\u20ac0.50)
100,000,000
\u2014
Common shares (500 million with nominal value of \u20ac0.50)
250,000,000
85,300,338
Total
350,019,200
85,319,538
Subscribed share capital
For further details on subscribed share capital, refer to Note F Shareholder's equity in the
Company financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-466": { "value": "
Cash flow hedge reserve
The cash flow hedge reserve comprises the effective portion of the cumulative net change
in the fair value of hedging instruments used in cash flow hedges, pending subsequent
recognition in the statement of income or in the initial cost or other carrying amount of a
non-financial asset or non-financial liability.
Cumulative translation reserve
Cumulative translation reserves comprise all foreign exchange differences arising from the
translation of the financial statements of foreign operations, as well as from the translation
of intercompany loans with a permanent nature and liabilities and derivatives that hedge the
net investments in a foreign subsidiary.", "dimensions": { "concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-467": { "value": "
Dividend
Our dividend policy is to pay a stable to rising dividend. In 2023, an interim dividend of
\u20ac0.44 (2022: \u20ac0.44) per common share was paid. We propose a 2023 final dividend of
\u20ac1.54 (2022: \u20ac1.54) per common share, which would equal a total 2023 dividend of \u20ac1.98
(2022: \u20ac1.98).
", "dimensions": { "concept": "ifrs-full:DisclosureOfDividendsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-468": { "value": "0.44", "decimals": 2, "dimensions": { "concept": "ifrs-full:DividendsRecognisedAsDistributionsToOwnersPerShare", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-469": { "value": "0.44", "decimals": 2, "dimensions": { "concept": "ifrs-full:DividendsRecognisedAsDistributionsToOwnersPerShare", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-470": { "value": "1.54", "decimals": 2, "dimensions": { "concept": "ifrs-full:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersPerShare", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-471": { "value": "1.54", "decimals": 2, "dimensions": { "concept": "ifrs-full:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersPerShare", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-472": { "value": "
Share buybacks
In February 2022, a \u20ac500 million share buyback program was announced which was
completed in 2022. As at December 31, 2022, a total of 7.3 million shares had been
acquired under this program, of which 3.4 million shares were cancelled.", "dimensions": { "concept": "ifrs-full:DisclosureOfTreasurySharesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-474": { "value": "
Non-controlling interests
None of the non-controlling interests are considered individually material to the group. The
effects of share transactions with non-controlling interest shareholders are recorded in
equity insofar these do not lead to changes in control.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithNoncontrollingInterestsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-473": { "value": "
Non-controlling interests
None of the non-controlling interests are considered individually material to the group. The
effects of share transactions with non-controlling interest shareholders are recorded in
equity insofar these do not lead to changes in control.
", "dimensions": { "concept": "ifrs-full:DisclosureOfNoncontrollingInterestsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-475": { "value": "
Note 18: Post-retirement benefit provisions
Post-retirement benefit provisions relate to defined benefit pension and other post-
retirement benefit plans, including healthcare or welfare plans. The largest defined benefit
pension plans are the ICI Pension Fund (ICIPF) and the Akzo Nobel (CPS) Pension Scheme
(CPS) in the UK which together account for 86% of defined benefit obligations (DBO) and
90% of plan assets. Other pension plans include among others the largely unfunded plans
in Germany, the plans in the US and certain other smaller plans in the UK. The benefits of
these pension plans are based primarily on years of service and employees\u2019 compensation.
The funding policy for the plans is consistent with local requirements in the countries of
establishment. We also provide certain healthcare and life insurance benefits to retired
employees, mainly in the US and the Netherlands.
Valuations of the obligations under the plans are carried out regularly by independent
qualified actuaries. We accrue for the expected costs of providing such post-retirement
benefits during the service years of the employees. Governance of the benefit plans is the
responsibility of the Executive Pensions Committee. This committee provides oversight of
the costs and risks of the plans including oversight of the impact of the plans on the
company in terms of cash flow, pension expenses and the balance sheet. The committee
develops and maintains policies on benefit design, funding, asset allocation and
assumption setting.
Pension plans
Almost all of the defined benefit plans have been closed to new members since the early to
mid-2000s, although in many plans long-serving employees continue to accrue benefits.
For plans in the US, benefit accrual is frozen and employees participate in defined
contribution plans for future service. In countries where plans are closed, new employees
are eligible to join a defined contribution arrangement. In countries in high growth markets,
pension schemes currently are not material. Unless mandated by law, it is our policy that
any new plans are established as defined contribution plans.
The most significant risks that we run in relation to defined benefit plans are investment
returns falling short of expectations, low discount rates, inflation exceeding expectations,
retirees living longer than expected and legislation changes. The assets and liabilities of
each of the funded plans are held outside of the company in a trust or a foundation, which
is governed by a board of fiduciaries or trustees, depending on the legal arrangements in
the country concerned. The primary objective with regards to the investment of pension
plan assets is to ensure that each individual plan has sufficient funds available to satisfy
future benefit obligations in accordance with local legal and legislative requirements. For this
purpose, we work closely with plan trustees or fiduciaries to develop investment strategies.
Studies are carried out periodically to analyze and understand the trade-off between
expected investment returns, volatility of outcomes and the impact on cash contributions.
We aim to strike a cautious balance between these factors in order to agree affordable
contribution schedules with plan fiduciaries.
Plan assets principally consist of insurance (annuity) policies, long-term interest-earning
investments and (investment funds with holdings primarily in) quoted equity securities. Our
largest plans use derivatives (such as index futures, currency forward contracts and swaps)
to reduce volatility of underlying variables, for efficient portfolio management and to improve
the liability matching characteristics of the assets. Limits have been set on the use of
derivatives which are periodically subject to review for compliance with the pension fund\u2019s
investment strategy.
In line with our proactive pension risk management strategy, we seek to reduce risk in our
pension plans over time. We evaluate potential de-risking opportunities on an ongoing
basis. Future de-risking transactions may have both cash flow and balance sheet impacts
which may be substantial, as had some of the de-risking actions already taken. The cost of
fully removing risk would exceed estimated funding deficits.
Between 2014 and 2023, ICIPF and a smaller UK plan, the ICI Specialty Chemicals Pension
Fund (ISCPF), have invested in annuity buy-in contracts that aim to hedge all key risks
related to their pensioner populations. CPS also invested in an annuity buy-in contract in
November 2022 that aims to hedge all key risks related to 39% of their pensioner liabilities.
In April 2023, the Trustee of the ISCPF entered into a further annuity buy-in agreement with
Pension Insurance Corporation plc. It covers, in aggregate, \u00a3148 million (\u20ac168 million) of
pensioner liabilities (insurer valuation). The buy-in involved the purchase of a bulk annuity
policy under which the insurer will pay to ISCPF amounts equivalent to the benefits payable
to all remaining pensioner and deferred members. The pension liabilities remain with, and
the matching annuity policies are held within, ISCPF. The accounting impact of the
transaction is a lower valuation of the plan assets giving a reduction in other comprehensive
income of \u00a345 million (\u20ac51 million).
By purchasing bulk annuities, the ICIPF, CPS and ISCPF Trustees have taken significant
steps in actively de-risking liabilities and reducing the risk that AkzoNobel will be required to
contribute additional cash in the future.
CPS also has an insurance contract to hedge longevity risk in respect of a portion of its
pensioners not impacted by the recent buy-in transaction.
On November 25, 2020, correspondence between the Chancellor of the Exchequer and
the UK Statistics Authority (UKSA) was published regarding the future of the Retail Price
Index (RPI) measurement of inflation. With effect from February 2030 onwards, increases in
the RPI will be aligned with those under the Consumer Prices Index (CPI) with owner
occupiers\u2019 housing costs (CPIH). Broadly this is expected to result in RPI inflation being 1%
lower in the longer term than under the existing methodology. The inflation assumption
continues to be calculated using a market breakeven inflation rate and the CPI inflation
assumption, on which the benefits of some plans are based, is set with reference to RPI.
Until 2030, the CPI inflation assumption is calculated as 1% below RPI and from 2030
onwards as 0.1% below RPI.
The Virgin Media Ltd versus NTL Pension Trustees decision, handed down by the UK High
Court on June 16, 2023, has implications for the validity of trust deeds of amendment over
the last 25 years. This decision is being appealed. Whether this decision could also have
implications for AkzoNobel\u2019s defined benefit pension plans in the UK, is yet to be
determined. We are not in a position to make a reliable estimate of the impact of this
decision, if any, or of the impact of any related legal or governmental follow-up actions.
Therefore, no changes were made to the defined benefit obligation at this stage.
The remaining pension plans primarily represent plans accounted for as defined
contribution plans. This includes, among others, the Pension Fund APF in the Netherlands
and the 401k Plan in the US.
The ITP2 plan in Sweden is financed through insurance with the Alecta insurance company
and is classified as a multi-employer defined benefit plan. As AkzoNobel does not have
access to sufficient information from Alecta to enable defined benefit accounting treatment,
it is accounted for as a defined contribution plan. Contributions in 2023 were \u20ac1 million
(2022: \u20ac2 million). Alecta\u2019s funding ratio is normally allowed to vary between 125% and
175%. The most recently quoted ratio at September 2023 stood at 178%.
The expenses of all plans accounted for as defined contribution plans in AkzoNobel totaled
\u20ac90 million in 2023 (2022: \u20ac89 million).
DBO at funded and unfunded pension plans*
in \u20ac millions, at December 31
2022
2023
Wholly or partly funded plans
9,229
9,137
Unfunded plans
246
270
Total
9,475
9,407
* Excludes other post-retirement benefit plans.
Other post-retirement benefit plans
AkzoNobel provides certain healthcare and life insurance benefits to retired employees,
mainly in the US and the Netherlands. The risks to which the US healthcare plans expose
AkzoNobel include the risk of future increases in the cost of healthcare which would
increase the cost of maintaining the plans. The benefit payments to retirees under the
Dutch plan are frozen. Both plans expose AkzoNobel to the risk of a decline in discount
rates, which increases the plan obligations, and longevity risk as the plans generally pay
lifetime benefits.
Reconciliation to the balance sheet
The closing net balance sheet position of \u20ac549 million net asset (2022: \u20ac602 million net
asset) includes the pension plans (\u20ac652 million net asset; 2022: \u20ac709 million net asset) and
other post-retirement plans (\u20ac103 million liability; 2022: \u20ac107 million liability).
Reconciliation to the balance sheet
2022
2023
in \u20ac millions
DBO
Plan
assets
Total
DBO
Plan
assets
Total
Balance at the beginning of the period
(14,310)
15,330
1,020
(9,582)
10,193
611
Statement of income
Current service cost
(31)
\u2014
(31)
(22)
\u2014
(22)
Past service cost
\u2014
\u2014
\u2014
(1)
\u2014
(1)
Settlements
18
(18)
\u2014
13
(13)
\u2014
Net interest (charge)/income on net defined benefit (liability)/asset
(254)
272
18
(455)
488
33
Cost recognized in statement of income
(267)
254
(13)
(465)
475
10
Remeasurements recognized in Other comprehensive income
Actuarial (loss)/gain due to liability experience
(279)
\u2014
(279)
(131)
\u2014
(131)
Actuarial (loss)/gain due to liability financial assumption changes
3,754
\u2014
3,754
(233)
\u2014
(233)
Actuarial (loss)/gain due to liability demographic assumption changes
18
\u2014
18
256
\u2014
256
Actuarial (loss)/gain due to buy-ins
\u2014
(76)
(76)
\u2014
(51)
(51)
Return on plan assets (less than)/greater than discount rate
\u2014
(3,784)
(3,784)
\u2014
10
10
Remeasurement effects recognized in Other comprehensive income
3,493
(3,860)
(367)
(108)
(41)
(149)
Cash flow
Employer contributions
\u2014
70
70
\u2014
63
63
Employee contributions
(2)
2
\u2014
(2)
2
\u2014
Benefits and administration costs paid from plan assets
842
(842)
\u2014
793
(793)
\u2014
Net cash flow
840
(770)
70
791
(728)
63
Other
Acquisitions/divestments/transfers
\u2014
(1)
(1)
1
(1)
\u2014
Changes in exchange rates
662
(760)
(98)
(147)
168
21
Total other
662
(761)
(99)
(146)
167
21
Balance at the end of the period
(9,582)
10,193
611
(9,510)
10,066
556
Asset restriction
(9)
(7)
Net balance sheet position
602
549
Presentation of Net balance sheet position
Financial non-current assets
1,029
1,017
Post-retirement benefit provisions
(387)
(423)
Current portion of provisions
(40)
(45)
Net balance sheet position
602
549
Administrative expenses
In addition to the expenses borne by the funds themselves, some expenses are borne
directly by AkzoNobel. Administrative expenses, especially for the UK pension funds, of \u20ac25
million are included in 2023 operating income (2022: \u20ac26 million). In addition, we directly
incurred asset management expenses of \u20ac2 million (2022: \u20ac2 million), which have been
included in other comprehensive income.
Interest costs
Interest costs on the DBO for both pensions and other post-retirement benefits, together
with the interest income on plan assets, comprise the financing income related to post-
retirement benefits of \u20ac33 million (2022: \u20ac18 million), refer to Note 7 Financing income and
expenses.
Pension plans in asset position
Pension balances recorded under Financial non-current assets totaled \u20ac1,017 million
(2022: \u20ac1,029 million). The \u20ac12 million decrease in 2023 is due to \u20ac87 million of net
actuarial losses, partly offset by \u20ac15 million of of employer contributions, net income of \u20ac42
million and exchange rate translation gains of \u20ac18 million.
Plan assets could be recognized in the Company's balance sheet under IFRIC 14 because
economic benefits are available in the form of future refunds from the plan or reductions in
future contributions to the plan, either during the life of the plan or on the (final) settlement
of the plan liabilities.
Plan assets
The equities and government bond debt assets have quoted prices in active markets,
although most are held through funds comprised of such instruments which are not actively
traded themselves. The UK buy-in annuity policies have a value that is equal to the DBO of
the pensioners covered by the policies.
The total value of plan assets not quoted in active markets is \u20ac6,603 million ( 2022: \u20ac6,666
million), including the UK buy-in annuity policies totaling \u20ac6,123 million (2022: \u20ac6,078
million), investments in real estate totaling \u20ac258 million (2022: \u20ac343 million) and other
investments in infrastructure and insurance policies.
Plan assets did not directly include any of AkzoNobel\u2019s own transferable financial
instruments, nor any property occupied by or assets used by the company.
Plan assets
2022
2023
in \u20ac millions, at December 31
Total
Percentage of
total
Total
Percentage of
total
Equities
225
2
192
2
Debt - fixed interest government
bonds
580
6
562
6
Debt - index-linked government bonds
1,230
12
1,177
12
Debt - corporate and other bonds
1,394
13
1,503
15
UK buy-in annuity policies
6,078
60
6,123
61
Cash and cash equivalents
166
2
126
1
Other
520
5
383
3
Total
10,193
100
10,066
100
Cash flows
In 2024, we expect to contribute \u20ac43 million (2023: \u20ac53 million) to our defined benefit
pension plans. We expect to pay a further \u20ac10 million (2023: \u20ac10 million) to our other post-
retirement benefit plans. No allowance is made for any special one-off contributions that
may arise in relation to new de-risking opportunities.
Cash flows
Pensions
Other post-
retirement
benefits
in \u20ac millions
2023
2024
2023
2024
Regular contributions
45
36
10
10
Top-ups
8
7
\u2014
\u2014
Total
53
43
10
10
Sensitivity of DBO
The actuarially calculated sensitivity effects on DBO shown in the table allow for an
alternative value for each assumption while the other actuarial assumptions remain
unchanged. This table illustrates the overall impact on DBO for the changes shown, which
management assessed could be reasonably possible over a longer term from a sensitivity
test perspective. It should be noted, however, that this analysis does not indicate and
probability of such changes occurring, not does it preclude larger changes in any given
period or longer term.
In addition, the significance of the impact and the range of reasonably possible alternative
assumptions may differ between the different plans that comprise the total DBO. In
particular, the plans differ in benefit design, currency and average term, meaning that
different assumptions have different levels of significance for each plan.
The sensitivity analysis is intended to illustrate the inherent uncertainty in the valuation of the
DBO under market conditions at the measurement date. Its results, in principle, cannot be
extrapolated due to increasing non-linear effects that changes in the key actuarial
assumptions, when deviating further from the assumptions presented, may have on the
total DBO. Any management actions that may be taken to mitigate the inherent risks in the
post-retirement defined benefit plans are not reflected in this analysis, as they would
normally be reflected in plan asset changes rather than DBO changes.
The sensitivities in the table only apply to the DBO and not to the net amounts recognized
in the balance sheet. Movements in the fair value of plan assets (which include the de-
risking instruments) would, to a significant extent, be expected to offset movements in the
DBO resulting from changes in the given assumptions.
At ICIPF, the annuity buy-in contracts cover 99% of pensioner liabilities (2022: 99%) and
88% of total liabilities (2022: 88%).
At CPS, the annuity buy-in contract covers 39% of pensioner liabilities (2022: 42%) and
28% of total liabilities (2022: 28%). Also at CPS, the longevity hedge contract covers 45%
of pensioner liabilities (2022: 48%) and 33% of total liabilities (2022: 30%).
Sensitivity of DBO to change in assumptions
in \u20ac millions
ICIPF
UK
CPS
UK
Other
pension plans
Other post-
retirement
benefits
Total
Discount rate: 0.5% decrease
260
140
74
4
478
Price inflation: 0.5% increase*
152
85
39
\u2014
276
Life expectancy: one year increase from age 60
362
94
42
4
502
Maturity information
Weighted average duration of DBO (years)
8.9
11.8
11.3
8.7
10.0
* The sensitivity to price inflation assumption includes corresponding changes to all inflation-related compensation increases,
pensions in payment and pensions in deferment.
Future benefit payments
The figures in the table below are the estimated future benefit payments to be paid from the
plans to beneficiaries over the next ten years.
Future benefit payments
in \u20ac millions
Pensions
Other post-
retirement
benefits
2024
786
10
2025
792
10
2026
797
10
2027
806
9
2028
809
9
2029-2033
4,157
39
Key figures and assumptions by plan
2022
2023
in \u20ac millions or %
ICIPF
UK
CPS
UK
Other
pension
plans
Other post-
retirement
benefits
Total
ICIPF
UK
CPS
UK
Other
pension
plans
Other post-
retirement
benefits
Total
Percentage of total DBO
61%
25%
13%
1%
100%
61%
25%
13%
1%
100%
Defined Benefit Obligation at year-end
(5,875)
(2,362)
(1,238)
(107)
(9,582)
(5,762)
(2,373)
(1,272)
(103)
(9,510)
Fair value of plan assets at year-end
6,293
2,895
1,005
\u2014
10,193
6,176
2,931
959
\u2014
10,066
Plan funded status
418
533
(233)
(107)
611
414
558
(313)
(103)
556
Restriction on asset recognition
\u2014
\u2014
(9)
\u2014
(9)
\u2014
\u2014
(7)
\u2014
(7)
Amounts recognized on the balance sheet
418
533
(242)
(107)
602
414
558
(320)
(103)
549
Percentage of total current service cost
6%
26%
68%
\u2014
100%
5%
23%
72%
\u2014
100%
Current service cost
(2)
(8)
(21)
\u2014
(31)
(1)
(5)
(16)
\u2014
(22)
Employer contributions
\u2014
13
45
12
70
1
7
45
10
63
Discount rate
4.9%
4.9%
4.6%
5.9%
4.9%
4.6%
4.6%
4.3%
6.1%
4.6%
Rate of compensation increase
1.5%
1.4%
2.0%
\u2014
1.5%
1.4%
1.4%
2.2%
\u2014
1.5%
Inflation
3.3%
3.3%
2.3%
\u2014
3.2%
3.1%
3.1%
2.4%
\u2014
3.0%
Pension increases
3.1%
2.7%
2.2%
\u2014
2.9%
2.9%
2.6%
2.2%
\u2014
2.8%
Life expectancy (in years)
Currently aged 60
Males
26.2
26.2
25.7
25.8
26.1
25.7
25.5
26.0
25.7
25.7
Females
27.8
29.1
28.1
27.8
28.2
27.3
28.5
28.6
27.8
27.8
Currently aged 45, from age 60
Males
27.3
27.3
27.0
26.8
27.3
26.8
26.6
27.4
26.6
26.8
Females
29.0
30.2
29.4
28.8
29.3
28.5
29.6
29.8
28.7
28.9
Key plan details for the two largest pension plans1
ICI Pension Fund, UK
Akzo Nobel (CPS) Pension Scheme, UK
Type of plan
Defined benefit, based upon years of service and final salary
Defined benefit, based upon years of service and final salary
Benefits
Retirement pension for employee
Dependents\u2019 pensions on death of employee/pensioner
Options for ill health early retirement
Retirement pension for employee
Dependents\u2019 pensions on death of employee/pensioner
Options for ill health early retirement
Pension increases (main benefit section)
Annually linked to UK RPI with a maximum of 5%
Annually linked to UK CPI with a maximum of 5%
Plan structure
Plans are set up under a trust and are tax approved
Plans are set up under a trust and are tax approved
Governance
Trustee directors:
Three\u00a0 member-nominated
Four appointed with the agreement of Law Debenture
One independent (Law Debenture)
Trustee directors:
Three member-nominated
Two company-nominated
One independent (Law Debenture)
Regulatory framework
The plans are tax approved and assets are held in trust for the benefit of participants. The trustees have a legal duty to manage the trust in the best
interests of participants. Investment strategy is controlled by the trustees in consultation with the company
Funding basis
A plan specific basis must be agreed with each trustee board in accordance with UK regulations. The basis is not the same as the IFRS calculation as it
uses more prudent assumptions about life expectancy and the discount rates reflect prudent estimates of the expected return on assets actually held,
thus the trustees\u2019 investment strategies will impact the discounted value of liabilities
Frequency of funding reviews
Normally every three years
Normally every three years
Latest completed valuation
March 31, 2023
March 31, 2023
Funding surplus/deficit at latest completed valuation1,2
\u00a349 million (\u20ac56 million) surplus
\u00a3190 million (\u20ac219 million) surplus
Recovery plan
As there were sufficient assets to cover the Fund's technical provisions, a
recovery plan is not required
As there were sufficient assets to cover the Fund's technical provisions, a
recovery plan is not required
Next funding review
March 31, 2026 (due to be completed before June 30, 2027)
March 31, 2026 (due to be completed before June 30, 2027)
Asset allocation at March 31, 2023
Matching:
Return seeking:
100%
0%
Buy-in annuity contracts cover 99% of pensioner liabilities and 88% of total
liabilities
86%
14%
Buy-in annuity contract covers 39% of pensioner liabilities and 28% of total
liabilities. The longevity hedge contract covers 45% of pensioner liabilities
and 33% of total liabilities
Membership at March 31, 2023
Active members
65
238
Deferred members
4,877
5,056
Pensioners, spouses and dependants
33,440
16,110
Total
38,382
21,404
1 Amounts in euro are a convenience translation using the December 31, 2023, exchange rate.
2 Based on local valuation regulations.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDefinedBenefitPlansExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-477": { "value": "
Note 19: Other provisions and contingent liabilities
General
Provisions are recognized for legal and constructive obligations, when an outflow of
economic benefits for settlement is probable and the amount can be reliably estimated. It
should be understood that, in light of possible future developments, such as: (a) potential
additional lawsuits; (b) possible future settlements; and (c) rulings or judgments in pending
lawsuits, certain cases may result in additional liabilities and related costs. At this point in
time, we cannot estimate any additional amount of loss or range of loss in excess of the
recorded amounts with sufficient certainty to allow such amount or range of amounts to be
meaningful. While the outcome of said cases, claims and disputes cannot be predicted with
certainty, we believe, based upon legal advice and information received, that the final
outcome will not materially affect our consolidated financial position but could be material to
our results of operations or cash flows in any one accounting period.
Movements in other provisions
in \u20ac millions
Restructuring
of activities
Environmental
costs
Liabilities
to (former)\u00a0
employees
Sundry
Total
Balance at January 1, 2023
42
51
107
93
293
Additions made during the year
55
11
28
48
142
Utilization
(55)
(18)
(21)
(48)
(142)
Amounts reversed during the year
(6)
\u2014
\u2014
(9)
(15)
Unwind of discount
\u2014
(2)
3
\u2014
1
Acquisitions
\u2014
1
\u2014
1
2
Changes in exchange rates
\u2014
(1)
\u2014
\u2014
(1)
Balance at December 31, 2023
36
42
117
85
280
Non-current portion of provisions
1
30
88
42
161
Current portion of provisions
35
12
29
43
119
Balance at December 31, 2023
36
42
117
85
280
Provisions for restructuring of activities
Provisions for restructuring of activities comprise of accruals for certain employee benefits
and for costs which are directly associated with plans to exit or cease specific activities and
closing down of facilities. For all restructuring provisions, a detailed formal plan exists and
the implementation of the plan has started or the plan has been announced before the
balance sheet date. Most restructuring plans are expected to be completed within one year
from the balance sheet date.
Environmental liabilities
We are confronted with costs arising out of environmental laws and regulations, which
include obligations to eliminate or limit the effects on the environment of the disposal or
release of certain wastes or substances at various sites. Proceedings involving
environmental matters, such as the alleged discharge of chemicals or waste materials into
the air, water, or soil, are pending against us in various countries. In some cases, this
concerns sites divested in prior years or derelict sites belonging to companies acquired in
the past. The majority of the cash outflows relating to the environmental liabilities is
expected to be within one to five years, whilst some one-third is projected to be spent after
ten years. The provision has been discounted using an average pre-tax discount rate of
3.7% (2022: 3.8%).
Estimating the impact of environmental liabilities often is complex and requires significant
judgement. It requires the assessment of many (often interconnected) elements, which
contain varying levels of uncertainty. Environmental liabilities can change substantially,
among others due to the emergence of additional information on the nature or extent of the
contamination, the geological circumstances, changes in (the interpretation and
enforcement of) environmental regulations, new and evolving analytical and remediation
techniques, success or lack of success of currently anticipated clean-up methods, actions
by governmental agencies or private parties, success in allocating liability to other
potentially responsible parties, the financial viability of other potentially responsible parties
and third-party indemnitors, and/or other factors.
Especially for some sites for which we are faced with relatively new legislation, which are in
the early stages of discussions with regulators, and/or where there is limited information
available from earlier experience, there may be considerable variability between the clean-
up activities that are currently being undertaken or planned and the ultimate actions that
could be required. For such sites, the costs for the earlier years might be rather reliably
estimable, whilst for later years it is much more difficult, if possible at all, to estimate the
cost of environmental compliance and remediation. If the level of uncertainty is such that no
reliable estimate can be made for the longer-term costs, no provision for such costs is
recorded. While it is not feasible to predict the outcome of all pending environmental
exposures, it is reasonably possible that there will be a need for future (changes to)
provisions for environmental costs which, in management\u2019s opinion, based on information
currently available, would not have a material effect on the company\u2019s financial position but
could be material to the company\u2019s results of operations in any one accounting period.
Liabilities to (former) employees
Liabilities to (former) employees consist of employer liability plans, jubilee plans and other
long-term compensation plans. The majority of the cash outflows related to liabilities to
(former) employees is expected to be after five years. In calculating the liabilities to (former)
employees, a pre-tax discount rate of on average 4.3% (2022: 5.0%) has been used.
Sundry provisions
Sundry provisions relate to a variety of provisions, including provisions for (customer)
claims, sales returns, guarantees and other operational provisions. The majority of the cash
outflows related to sundry provisions is expected to be within one to five years. In
calculating the sundry provisions, a pre-tax discount rate of on average 3.7% (2022: 5.3%)
has been used.
Contingent liabilities
A number of claims against AkzoNobel are pending, many of which are contested. This\u00a0
includes those where Akzo Nobel N.V. and two of its subsidiaries are currently defending
claims brought by INPEX Operations Australia Pty Ltd and JKC Australia LNG Pty Ltd
relating to the Ichthys Onshore Project in Darwin, Western Australia. A trial has been listed
in the Federal Court of Australia, commencing June\u00a017, 2024. The claims are contested
and AkzoNobel denies liability in respect of both of these claims.\u00a0
We are also involved in legal disputes and disputes with tax authorities in several
jurisdictions. Those disputes include situations in which AkzoNobel has provided various
indemnities and guarantees in respect of past divestments to the relevant purchasers and
their permitted assigns (if applicable), which in general are capped in time and/or amount (in
proportion to the value received). The provided guarantees and indemnities have varying
maturity periods. AkzoNobel has received various claims under such indemnities and
guarantees. In some instances, AkzoNobel has been named as a direct defendant despite
the divestments.
Akzo Nobel N.V. has withdrawn its declarations of joint and several liability under Article 403
of Book 2 of the Dutch Civil Code for certain Dutch former Specialty Chemicals subsidiaries
divested as per October 1, 2018, and is following the procedures to terminate its residual
liability under those declarations under Article 404 of Book 2 of the Dutch Civil Code. One
objection against the termination of residual liability is still pending and AkzoNobel, Nouryon
and Nobian continue to cooperate to get this resolved.
Current portion of provisions
The current portion of post-retirement benefit provisions (\u20ac45 million) and the current
portion of other provisions (\u20ac119 million) add up to \u20ac164 million (2022: \u20ac166 million), as
reflected in the balance sheet.
Discount rates
The discount rates used in calculating the provisions recognized at December 31, 2023,
are mentioned in the paragraphs on provisions for environmental costs, liabilities to (former)
employees and sundry provisions. Changes in discount rates will affect our consolidated
financial position. A sensitivity test showed that a one percentage point increase or
decrease of discount rates will have an impact down or up, respectively, of \u20ac6 million on
the provisions recognized at December 31, 2023.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-476": { "value": "
Note 19: Other provisions and contingent liabilities
General
Provisions are recognized for legal and constructive obligations, when an outflow of
economic benefits for settlement is probable and the amount can be reliably estimated. It
should be understood that, in light of possible future developments, such as: (a) potential
additional lawsuits; (b) possible future settlements; and (c) rulings or judgments in pending
lawsuits, certain cases may result in additional liabilities and related costs. At this point in
time, we cannot estimate any additional amount of loss or range of loss in excess of the
recorded amounts with sufficient certainty to allow such amount or range of amounts to be
meaningful. While the outcome of said cases, claims and disputes cannot be predicted with
certainty, we believe, based upon legal advice and information received, that the final
outcome will not materially affect our consolidated financial position but could be material to
our results of operations or cash flows in any one accounting period.
Movements in other provisions
in \u20ac millions
Restructuring
of activities
Environmental
costs
Liabilities
to (former)\u00a0
employees
Sundry
Total
Balance at January 1, 2023
42
51
107
93
293
Additions made during the year
55
11
28
48
142
Utilization
(55)
(18)
(21)
(48)
(142)
Amounts reversed during the year
(6)
\u2014
\u2014
(9)
(15)
Unwind of discount
\u2014
(2)
3
\u2014
1
Acquisitions
\u2014
1
\u2014
1
2
Changes in exchange rates
\u2014
(1)
\u2014
\u2014
(1)
Balance at December 31, 2023
36
42
117
85
280
Non-current portion of provisions
1
30
88
42
161
Current portion of provisions
35
12
29
43
119
Balance at December 31, 2023
36
42
117
85
280
Provisions for restructuring of activities
Provisions for restructuring of activities comprise of accruals for certain employee benefits
and for costs which are directly associated with plans to exit or cease specific activities and
closing down of facilities. For all restructuring provisions, a detailed formal plan exists and
the implementation of the plan has started or the plan has been announced before the
balance sheet date. Most restructuring plans are expected to be completed within one year
from the balance sheet date.
Environmental liabilities
We are confronted with costs arising out of environmental laws and regulations, which
include obligations to eliminate or limit the effects on the environment of the disposal or
release of certain wastes or substances at various sites. Proceedings involving
environmental matters, such as the alleged discharge of chemicals or waste materials into
the air, water, or soil, are pending against us in various countries. In some cases, this
concerns sites divested in prior years or derelict sites belonging to companies acquired in
the past. The majority of the cash outflows relating to the environmental liabilities is
expected to be within one to five years, whilst some one-third is projected to be spent after
ten years. The provision has been discounted using an average pre-tax discount rate of
3.7% (2022: 3.8%).
Estimating the impact of environmental liabilities often is complex and requires significant
judgement. It requires the assessment of many (often interconnected) elements, which
contain varying levels of uncertainty. Environmental liabilities can change substantially,
among others due to the emergence of additional information on the nature or extent of the
contamination, the geological circumstances, changes in (the interpretation and
enforcement of) environmental regulations, new and evolving analytical and remediation
techniques, success or lack of success of currently anticipated clean-up methods, actions
by governmental agencies or private parties, success in allocating liability to other
potentially responsible parties, the financial viability of other potentially responsible parties
and third-party indemnitors, and/or other factors.
Especially for some sites for which we are faced with relatively new legislation, which are in
the early stages of discussions with regulators, and/or where there is limited information
available from earlier experience, there may be considerable variability between the clean-
up activities that are currently being undertaken or planned and the ultimate actions that
could be required. For such sites, the costs for the earlier years might be rather reliably
estimable, whilst for later years it is much more difficult, if possible at all, to estimate the
cost of environmental compliance and remediation. If the level of uncertainty is such that no
reliable estimate can be made for the longer-term costs, no provision for such costs is
recorded. While it is not feasible to predict the outcome of all pending environmental
exposures, it is reasonably possible that there will be a need for future (changes to)
provisions for environmental costs which, in management\u2019s opinion, based on information
currently available, would not have a material effect on the company\u2019s financial position but
could be material to the company\u2019s results of operations in any one accounting period.
Liabilities to (former) employees
Liabilities to (former) employees consist of employer liability plans, jubilee plans and other
long-term compensation plans. The majority of the cash outflows related to liabilities to
(former) employees is expected to be after five years. In calculating the liabilities to (former)
employees, a pre-tax discount rate of on average 4.3% (2022: 5.0%) has been used.
Sundry provisions
Sundry provisions relate to a variety of provisions, including provisions for (customer)
claims, sales returns, guarantees and other operational provisions. The majority of the cash
outflows related to sundry provisions is expected to be within one to five years. In
calculating the sundry provisions, a pre-tax discount rate of on average 3.7% (2022: 5.3%)
has been used.
Contingent liabilities
A number of claims against AkzoNobel are pending, many of which are contested. This\u00a0
includes those where Akzo Nobel N.V. and two of its subsidiaries are currently defending
claims brought by INPEX Operations Australia Pty Ltd and JKC Australia LNG Pty Ltd
relating to the Ichthys Onshore Project in Darwin, Western Australia. A trial has been listed
in the Federal Court of Australia, commencing June\u00a017, 2024. The claims are contested
and AkzoNobel denies liability in respect of both of these claims.\u00a0
We are also involved in legal disputes and disputes with tax authorities in several
jurisdictions. Those disputes include situations in which AkzoNobel has provided various
indemnities and guarantees in respect of past divestments to the relevant purchasers and
their permitted assigns (if applicable), which in general are capped in time and/or amount (in
proportion to the value received). The provided guarantees and indemnities have varying
maturity periods. AkzoNobel has received various claims under such indemnities and
guarantees. In some instances, AkzoNobel has been named as a direct defendant despite
the divestments.
Akzo Nobel N.V. has withdrawn its declarations of joint and several liability under Article 403
of Book 2 of the Dutch Civil Code for certain Dutch former Specialty Chemicals subsidiaries
divested as per October 1, 2018, and is following the procedures to terminate its residual
liability under those declarations under Article 404 of Book 2 of the Dutch Civil Code. One
objection against the termination of residual liability is still pending and AkzoNobel, Nouryon
and Nobian continue to cooperate to get this resolved.
Current portion of provisions
The current portion of post-retirement benefit provisions (\u20ac45 million) and the current
portion of other provisions (\u20ac119 million) add up to \u20ac164 million (2022: \u20ac166 million), as
reflected in the balance sheet.
Discount rates
The discount rates used in calculating the provisions recognized at December 31, 2023,
are mentioned in the paragraphs on provisions for environmental costs, liabilities to (former)
employees and sundry provisions. Changes in discount rates will affect our consolidated
financial position. A sensitivity test showed that a one percentage point increase or
decrease of discount rates will have an impact down or up, respectively, of \u20ac6 million on
the provisions recognized at December 31, 2023.", "dimensions": { "concept": "ifrs-full:DisclosureOfProvisionsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-479": { "value": "
Contingent liabilities
A number of claims against AkzoNobel are pending, many of which are contested. This\u00a0
includes those where Akzo Nobel N.V. and two of its subsidiaries are currently defending
claims brought by INPEX Operations Australia Pty Ltd and JKC Australia LNG Pty Ltd
relating to the Ichthys Onshore Project in Darwin, Western Australia. A trial has been listed
in the Federal Court of Australia, commencing June\u00a017, 2024. The claims are contested
and AkzoNobel denies liability in respect of both of these claims.\u00a0
We are also involved in legal disputes and disputes with tax authorities in several
jurisdictions. Those disputes include situations in which AkzoNobel has provided various
indemnities and guarantees in respect of past divestments to the relevant purchasers and
their permitted assigns (if applicable), which in general are capped in time and/or amount (in
proportion to the value received). The provided guarantees and indemnities have varying
maturity periods. AkzoNobel has received various claims under such indemnities and
guarantees. In some instances, AkzoNobel has been named as a direct defendant despite
the divestments.
Akzo Nobel N.V. has withdrawn its declarations of joint and several liability under Article 403
of Book 2 of the Dutch Civil Code for certain Dutch former Specialty Chemicals subsidiaries
divested as per October 1, 2018, and is following the procedures to terminate its residual
liability under those declarations under Article 404 of Book 2 of the Dutch Civil Code. One
objection against the termination of residual liability is still pending and AkzoNobel, Nouryon
and Nobian continue to cooperate to get this resolved.
Note 23: Commitments
Purchase commitments for property, plant and equipment aggregated \u20ac18 million (2022:
\u20ac23 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-478": { "value": "
Contingent liabilities
A number of claims against AkzoNobel are pending, many of which are contested. This\u00a0
includes those where Akzo Nobel N.V. and two of its subsidiaries are currently defending
claims brought by INPEX Operations Australia Pty Ltd and JKC Australia LNG Pty Ltd
relating to the Ichthys Onshore Project in Darwin, Western Australia. A trial has been listed
in the Federal Court of Australia, commencing June\u00a017, 2024. The claims are contested
and AkzoNobel denies liability in respect of both of these claims.\u00a0
We are also involved in legal disputes and disputes with tax authorities in several
jurisdictions. Those disputes include situations in which AkzoNobel has provided various
indemnities and guarantees in respect of past divestments to the relevant purchasers and
their permitted assigns (if applicable), which in general are capped in time and/or amount (in
proportion to the value received). The provided guarantees and indemnities have varying
maturity periods. AkzoNobel has received various claims under such indemnities and
guarantees. In some instances, AkzoNobel has been named as a direct defendant despite
the divestments.
Akzo Nobel N.V. has withdrawn its declarations of joint and several liability under Article 403
of Book 2 of the Dutch Civil Code for certain Dutch former Specialty Chemicals subsidiaries
divested as per October 1, 2018, and is following the procedures to terminate its residual
liability under those declarations under Article 404 of Book 2 of the Dutch Civil Code. One
objection against the termination of residual liability is still pending and AkzoNobel, Nouryon
and Nobian continue to cooperate to get this resolved.
", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-480": { "value": "
Note 20: Net debt
Net debt
in \u20ac millions
Long-term
borrowings
Short-term
borrowings
Short-term
investments
Cash and cash
equivalents
Net debt
Net debt at January 1, 2022
1,994
1,556
(58)
(1,152)
2,340
Net cash from operating activities
\u2014
\u2014
\u2014
(263)
(263)
Acquisitions
71
2
\u2014
588
661
Investments in short-term investments
\u2014
\u2014
(1,361)
1,361
\u2014
Repayments of short-term investments
\u2014
\u2014
1,084
(1,084)
\u2014
Net cash from other investing activities
\u2014
\u2014
\u2014
230
230
Unwind of discount and amortized cost
9
5
\u2014
\u2014
14
Proceeds from borrowings
1,359
8,152
\u2014
(9,511)
\u2014
Borrowings repaid
\u2014
(7,322)
\u2014
7,322
\u2014
New/modification/disposal of lease contracts
79
\u2014
\u2014
\u2014
79
Transfers from long-term to short-term
(139)
139
\u2014
\u2014
\u2014
Movement bank overdrafts and short-term bank loans
\u2014
16
\u2014
(16)
\u2014
Dividends
\u2014
\u2014
\u2014
379
379
Share buyback
\u2014
\u2014
\u2014
669
669
Net cash from discontinued operations
\u2014
\u2014
\u2014
9
9
Changes in exchange rates
(41)
(5)
(1)
18
(29)
Net debt at December 31, 2022
3,332
2,543
(336)
(1,450)
4,089
Net debt at January 1, 2023
3,332
2,543
(336)
(1,450)
4,089
Net cash from operating activities
\u2014
\u2014
\u2014
(1,126)
(1,126)
Acquisitions
\u2014
\u2014
\u2014
114
114
Investments in short-term investments
\u2014
\u2014
(64)
64
\u2014
Repayments of short-term investments
\u2014
\u2014
142
(142)
\u2014
Net cash from other investing activities
\u2014
\u2014
\u2014
108
108
Net gain/loss from changes in fair value
\u2014
\u2014
(7)
\u2014
(7)
Unwind of discount and amortized cost
10
2
\u2014
\u2014
12
Proceeds from borrowings
499
5,337
\u2014
(5,836)
\u2014
Borrowings repaid
\u2014
(6,295)
\u2014
6,295
\u2014
New/modification/disposal of lease contracts
96
\u2014
\u2014
\u2014
96
Transfers from long-term to short-term
(793)
793
\u2014
\u2014
\u2014
Movement bank overdrafts and short-term bank loans
\u2014
18
\u2014
(18)
\u2014
Dividends
\u2014
\u2014
\u2014
368
368
Net cash from discontinued operations
\u2014
\u2014
\u2014
6
6
Changes in exchange rates
21
\u2014
\u2014
104
125
Net debt at December 31, 2023
3,165
2,398
(265)
(1,513)
3,785
Analysis of net debt by category
in \u20ac millions, at December 31
2022
2023
Bonds issued
2,934
2,933
Lease liabilities
198
194
Other long-term borrowings
200
38
Long-term borrowings
3,332
3,165
Current portion of long-term borrowings
2
671
Current portion of lease liabilities
86
89
Debt to credit institutions
2,450
1,635
Other short-term borrowings
5
3
Short-term borrowings
2,543
2,398
Total borrowings
5,875
5,563
Short-term investments
(336)
(265)
Cash and cash equivalents
(1,450)
(1,513)
Net debt
4,089
3,785
AkzoNobel\u2019s net debt is mainly denominated in euro.
Multi-currency revolving credit facility
We have a multi-currency revolving credit facility of \u20ac1.3 billion which runs until 2027. This
facility does not contain financial covenants or acceleration provisions that are based on
adverse changes in ratings or material adverse change. At year-end 2023 and 2022, this
facility has not been drawn.
Long-term borrowings
At year-end 2023, bonds issued amounted to \u20ac2,933 million (2022: \u20ac2,934 million); a
specification is included in the table below.
Bonds issued
in \u20ac millions, at December 31
2022
2023
1 3/4% 2014/24 (\u20ac500 million)
499
\u2014
1 1/8% 2016/26 (\u20ac500 million)
498
499
1 1/2% 2022/28 (\u20ac600 million)
597
598
1 5/8% 2020/30 (\u20ac750 million)
745
745
2% 2022/32 (\u20ac600 million)
595
595
4% 2023/33 (\u20ac500 million)
\u2014
496
Total
2,934
2,933
In May 2023, a bond was issued with a nominal value of \u20ac500 million, with a coupon of 4%,
maturing in 2033.
For details on the exposure to interest rate and foreign currency risk, refer to Note 26
Financial risk management.
The average effective interest rate of the bonds included in long-term borrowings at year-
end 2023 was 2.0% (year-end 2022: 1.6%).
Aggregated maturities of long-term borrowings
in \u20ac millions
2025-2028
After 2028
Bonds issued
1,097
1,836
Lease liabilities
158
36
Other long-term borrowings
15
23
Total
1,270
1,895
The blended incremental borrowing rate applied to the lease liabilities at year-end 2023 was
2.4% (2022: 1.9%).
At year-end 2023 and 2022, none of the borrowings was secured by collateral.
Short-term borrowings
The current portion of long-term borrowings increased mainly due to maturing of a \u20ac500
million bond and other loans in 2024.
At year-end 2023, our debt to credit institutions amounted to \u20ac1,635 million (2022: \u20ac2,450
million). Debt to credit institutions includes our commercial paper program and short-term
bank loans. We have US dollar and euro commercial paper programs in place, which can
be used to the extent that the equivalent portion of the \u20ac1.3 billion multi-currency revolving
credit facility is not used. We had \u20ac0.8 billion commercial paper outstanding at year-end
2023 (2022: \u20ac1.3 billion) against an average interest rate of 4.1% (2022: 1.6%). At year-end
2023, we had short-term bank loans outstanding of \u20ac0.8 billion (2022: \u20ac1.1 billion) against
a 3-months Euribor plus a mark-up (2022: 3-months Euribor plus a mark-up). None of
these facilities contain financial covenants.
Short-term investments
At year-end 2023, we had short-term investments outstanding for an amount of \u20ac265
million (2022: \u20ac336 million). Short-term investments almost entirely consist of time deposits,
money market funds and other marketable securities with a life time at investment date
longer than three months but shorter than twelve months. For more information on credit
risk management, refer to Note 26 Financial risk management.
Cash and cash equivalents
Cash and cash equivalents are specified in the table below.
Cash and cash equivalents
in \u20ac millions, at December 31
2022
2023
Cash on hand and in banks
922
957
Short-term investments with a life up to three months
528
556
Cash and cash equivalents in the balance sheet
1,450
1,513
Debt to credit institutions
(52)
(60)
Total per statement of cash flows
1,398
1,453
Deposits and money market funds within cash and cash equivalents almost entirely consist
of time deposits immediately convertible into known amounts of cash and with a maturity of
three months or less from the date of purchase, and marketable securities that can be
redeemed immediately when called.
We face cross-border foreign exchange controls and/or other legal restrictions in a few
countries that (currently) limit the ability to make these balances available for general use by
the group. Mainly as a result of these restrictions, at December 31, 2023, an amount of \u20ac57
million in cash and cash equivalents (2022: \u20ac11 million) and \u20ac3 million in short-term
investments (2022: \u20acnil) was restricted. The vast majority of these funds are available for
use in the relevant subsidiaries\u2019 day-to-day business.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDebtSecuritiesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-481": { "value": "
Long-term borrowings
At year-end 2023, bonds issued amounted to \u20ac2,933 million (2022: \u20ac2,934 million); a
specification is included in the table below.
Bonds issued
in \u20ac millions, at December 31
2022
2023
1 3/4% 2014/24 (\u20ac500 million)
499
\u2014
1 1/8% 2016/26 (\u20ac500 million)
498
499
1 1/2% 2022/28 (\u20ac600 million)
597
598
1 5/8% 2020/30 (\u20ac750 million)
745
745
2% 2022/32 (\u20ac600 million)
595
595
4% 2023/33 (\u20ac500 million)
\u2014
496
Total
2,934
2,933
In May 2023, a bond was issued with a nominal value of \u20ac500 million, with a coupon of 4%,
maturing in 2033.
For details on the exposure to interest rate and foreign currency risk, refer to Note 26
Financial risk management.
The average effective interest rate of the bonds included in long-term borrowings at year-
end 2023 was 2.0% (year-end 2022: 1.6%).
Aggregated maturities of long-term borrowings
in \u20ac millions
2025-2028
After 2028
Bonds issued
1,097
1,836
Lease liabilities
158
36
Other long-term borrowings
15
23
Total
1,270
1,895
The blended incremental borrowing rate applied to the lease liabilities at year-end 2023 was
2.4% (2022: 1.9%).
At year-end 2023 and 2022, none of the borrowings was secured by collateral.
Short-term borrowings
The current portion of long-term borrowings increased mainly due to maturing of a \u20ac500
million bond and other loans in 2024.
At year-end 2023, our debt to credit institutions amounted to \u20ac1,635 million (2022: \u20ac2,450
million). Debt to credit institutions includes our commercial paper program and short-term
bank loans. We have US dollar and euro commercial paper programs in place, which can
be used to the extent that the equivalent portion of the \u20ac1.3 billion multi-currency revolving
credit facility is not used. We had \u20ac0.8 billion commercial paper outstanding at year-end
2023 (2022: \u20ac1.3 billion) against an average interest rate of 4.1% (2022: 1.6%). At year-end
2023, we had short-term bank loans outstanding of \u20ac0.8 billion (2022: \u20ac1.1 billion) against
a 3-months Euribor plus a mark-up (2022: 3-months Euribor plus a mark-up). None of
these facilities contain financial covenants.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-482": { "value": "
At year-end 2023 and 2022, none of the borrowings was secured by collateral.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCollateralExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-484": { "value": "
Short-term investments
At year-end 2023, we had short-term investments outstanding for an amount of \u20ac265
million (2022: \u20ac336 million). Short-term investments almost entirely consist of time deposits,
money market funds and other marketable securities with a life time at investment date
longer than three months but shorter than twelve months. For more information on credit
risk management, refer to Note 26 Financial risk management.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDepositsFromBanksExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-483": { "value": "
Short-term investments
At year-end 2023, we had short-term investments outstanding for an amount of \u20ac265
million (2022: \u20ac336 million). Short-term investments almost entirely consist of time deposits,
money market funds and other marketable securities with a life time at investment date
longer than three months but shorter than twelve months. For more information on credit
risk management, refer to Note 26 Financial risk management.
Cash and cash equivalents
Cash and cash equivalents are specified in the table below.
Cash and cash equivalents
in \u20ac millions, at December 31
2022
2023
Cash on hand and in banks
922
957
Short-term investments with a life up to three months
528
556
Cash and cash equivalents in the balance sheet
1,450
1,513
Debt to credit institutions
(52)
(60)
Total per statement of cash flows
1,398
1,453
Deposits and money market funds within cash and cash equivalents almost entirely consist
of time deposits immediately convertible into known amounts of cash and with a maturity of
three months or less from the date of purchase, and marketable securities that can be
redeemed immediately when called.
We face cross-border foreign exchange controls and/or other legal restrictions in a few
countries that (currently) limit the ability to make these balances available for general use by
the group. Mainly as a result of these restrictions, at December 31, 2023, an amount of \u20ac57
million in cash and cash equivalents (2022: \u20ac11 million) and \u20ac3 million in short-term
investments (2022: \u20acnil) was restricted. The vast majority of these funds are available for
use in the relevant subsidiaries\u2019 day-to-day business.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsDesignatedAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-485": { "value": "
Cash and cash equivalents
Cash and cash equivalents are specified in the table below.
Cash and cash equivalents
in \u20ac millions, at December 31
2022
2023
Cash on hand and in banks
922
957
Short-term investments with a life up to three months
528
556
Cash and cash equivalents in the balance sheet
1,450
1,513
Debt to credit institutions
(52)
(60)
Total per statement of cash flows
1,398
1,453
Deposits and money market funds within cash and cash equivalents almost entirely consist
of time deposits immediately convertible into known amounts of cash and with a maturity of
three months or less from the date of purchase, and marketable securities that can be
redeemed immediately when called.
We face cross-border foreign exchange controls and/or other legal restrictions in a few
countries that (currently) limit the ability to make these balances available for general use by
the group. Mainly as a result of these restrictions, at December 31, 2023, an amount of \u20ac57
million in cash and cash equivalents (2022: \u20ac11 million) and \u20ac3 million in short-term
investments (2022: \u20acnil) was restricted. The vast majority of these funds are available for
use in the relevant subsidiaries\u2019 day-to-day business.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-486": { "value": "
We face cross-border foreign exchange controls and/or other legal restrictions in a few
countries that (currently) limit the ability to make these balances available for general use by
the group. Mainly as a result of these restrictions, at December 31, 2023, an amount of \u20ac57
million in cash and cash equivalents (2022: \u20ac11 million) and \u20ac3 million in short-term
investments (2022: \u20acnil) was restricted. The vast majority of these funds are available for
use in the relevant subsidiaries\u2019 day-to-day business.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-487": { "value": "
Note 21: Trade and other payables
Trade and other payables
in \u20ac millions, at December 31
2022
2023
Trade payables
2,206
2,312
Taxes and social security contributions
184
192
Amounts payable to employees
234
275
Interest
58
86
FX contracts
60
13
Dividends
4
1
Other liabilities
55
54
Total
2,801
2,933
Trade and other payables can be broken down as per the above table. Other liabilities
consist of a large number of individually immaterial items.
", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-488": { "value": "
Note 22: Cash flow
Operating activities in 2023 resulted in a cash inflow of \u20ac1,126 million (2022: cash inflow of
\u20ac263 million).
Changes in working capital as per consolidated statement of cash flows
in \u20ac millions
2022
2023
Trade and other receivables
(95)
(111)
Inventories
(134)
131
Trade and other payables
(280)
234
Total
(509)
254
The amounts in the table above cannot be reconciled directly to the respective balance
sheet positions. They reflect changes in balance sheet positions only to the extent these
have a cash flow impact, or they reverse the non-cash impact as included in profit for the
period. These amounts exclude non-cash movements such as unwinding of discount,
movements through other comprehensive income, acquisitions and divestments, and
changes in exchange rates.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-489": { "value": "
Note 23: Commitments
Purchase commitments for property, plant and equipment aggregated \u20ac18 million (2022:
\u20ac23 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-490": { "value": "
Note 24: Related party transactions
We purchased and sold goods and services to various related parties in which we hold a
50% or less equity interest (associates). Such transactions were conducted at terms
comparable with transactions with third parties.
During 2023, we considered the members of the Executive Committee and the Supervisory
Board to be the key management personnel as defined in IAS 24 \u201cRelated parties\u201d. For
details on their remuneration, as well as on shares held by members of the Supervisory
Board or Board of Management, refer to Note 25 Remuneration of the Supervisory Board
and the Board of Management. In the ordinary course of business, we also have
transactions with various organizations with which certain members of the Supervisory
Board or Executive Committee are associated.
For related party transactions with pension funds, refer to Note 14 Financial non-current
assets and Note 18 Post-retirement benefit provisions.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-491": { "value": "
Note 25: Remuneration of the Supervisory Board and the Board of
Management
Total compensation for key management personnel expensed during the period amounted
to \u20ac19.2 million (2022: \u20ac13.2 million). An amount of \u20ac11.6 million relates to short-term
employee benefits (2022: \u20ac7.4 million); \u20ac1.0 million relates to post contract benefits and
other post contract compensation (2022: \u20ac0.8 million); \u20ac5.4 million relates to share-based
compensation (2022: \u20ac3.0 million); no payments relate to other long-term incentives (2022:
\u20acnil); \u20ac1.2 million payments relate to payments upon termination of employment (2022: \u20ac2.0
million). In 2023, no charges were accrued which relate to taxation on excessive pay
(\u201cBelasting heffing excessieve beloningsbestanddelen\u201d) (2022: \u20ac1.0 million).
This compensation includes total remuneration for the members of the Supervisory Board
of \u20ac0.9 million (2022: \u20ac0.9 million) and for the members of the Board of Management of
\u20ac7.7 million (2022: \u20ac6.9 million). For more details on the remuneration of the individual
members of the Supervisory Board and the Board of Management reference is made to the
Remuneration report.
In accordance with the Articles of Association and good corporate governance practice, the
remuneration of Supervisory Board members is not dependent on the results of the
company. We do not grant share-based compensation to our Supervisory Board members.
An overview of shares held by the Supervisory Board members is provided on this page.\u00a0 \u00a0
A similar overview is provided of the shares held by the Board of Management.
Loans
The company does not grant loans, advance payments or guarantees to members of the
Supervisory Board, members of the Executive Committee or any family members of such
persons.
Shares held by the members of the Supervisory Board
Number of shares at year-end
2022
2023
Ben Noteboom
\u2014
2,300
Byron Grote*
8,061
9,894
Pamela Kirby
\u2014
\u2014
Dick Sluimers
\u2014
\u2014
Patrick Thomas
\u2014
\u2014
Jolanda Poots-Bijl
\u2014
\u2014
Ester Baiget
\u2014
\u2014
Hans Van Bylen
\u2014
\u2014
* In the form of ADRs.
Shares held by the Board of Management
Number of shares at year-end
2022
2023
Greg Poux-Guillaume*
\u2014
1,046
Maarten de Vries
21,766
22,558
* Appointed CEO as per November 1, 2022, replacing Thierry Vanlancker.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-492": { "value": "
Note 26: Financial risk management
Financial Risk Management Framework
Our activities expose us to a variety of financial risks: liquidity risk, credit risk and market
risk (including foreign exchange rate risk, interest rate risk and capital risk). These risks are
inherent to the way we operate as a multinational with a large number of locally operating
subsidiaries. Our overall risk management program seeks to identify, assess, and \u2013 if
necessary and possible \u2013 mitigate these financial risks in order to minimize potential
adverse effects on our financial performance.
Our risk mitigating activities include the use of derivative financial instruments to hedge
certain risk exposures. The Board of Management is ultimately responsible for risk
management. We centrally identify, evaluate and hedge financial risks, and monitor
compliance with the corporate policies approved by the Board of Management, except for
commodity risks, which are subject to identification, evaluation, hedging and monitoring in
the businesses. Next to our centralized Treasury organization in Amsterdam, we have
treasury hubs located in Brazil and China that are primarily responsible for regional cash
management and short-term financing. We do not allow extensive treasury operations
directly with external parties at subsidiary level.
Liquidity risk management
The primary objective of liquidity management is to provide for sufficient cash and cash
equivalents at all times and any place in the world to enable us to meet our payment
obligations. We aim for a well-spread maturity schedule of our long-term borrowings and a
strong liquidity position. At year-end 2023, we had \u20ac1.5 billion available as cash and cash
equivalents (2022: \u20ac1.2 billion) and \u20ac265 million available as short-term investments (2022:
\u20ac58 million), refer to Note 20 Net debt.
In addition, we have a multi-currency revolving credit facility of \u20ac1.3 billion which runs until
2027. This facility does not contain financial covenants or acceleration provisions that are
based on adverse changes in ratings or on other material adverse changes. At year-end
2023 and 2022, this facility had not been drawn. We have US dollar and euro commercial
paper programs in place, which can be used to the extent that the equivalent portion of the
\u20ac1.3 billion multi-currency revolving credit facility is not used. We had \u20ac0.8 billion
commercial paper outstanding at year end 2023 (2022: \u20ac1.3 billion) against an average
interest rate of 4.1% (2022: average interest rate of 1.6%). Further, at year-end 2023, we
had \u20ac0.8 billion short-term bank loans outstanding (2022: \u20ac1.1 billion) against 3-months
Maturity of liabilities and cash outflows
in \u20ac millions
Less than
1 year
Between 1
and 5 years
Over 5
years
At December 31, 2022
Borrowings
2,457
1,172
1,962
Interest on borrowings
118
197
84
Lease liabilities
86
153
45
Trade and other payables
2,741
\u2014
\u2014
FX contracts (hedges)
Outflow
3,097
\u2014
\u2014
Inflow
(3,055)
\u2014
\u2014
Total
5,444
1,522
2,091
At December 31, 2023
Borrowings
2,309
1,112
1,859
Interest on borrowings
154
249
182
Lease liabilities
89
158
36
Trade and other payables
2,920
\u2014
\u2014
FX contracts (hedges)
Outflow
2,451
\u2014
\u2014
Inflow
(2,450)
\u2014
\u2014
Total
5,473
1,519
2,077
Euribor plus a mark-up (2022: 3-months Euribor plus a mark-up). None of these facilities
contain financial covenants. The table on maturity of liabilities and cash outflows in this Note
shows our cash outflows per maturity group. The amounts disclosed in the table are the
contractual undiscounted cash flows.
Credit risk management
Credit risk arises from financial assets such as cash and cash equivalents, deposits with
financial institutions, money market funds, trade receivables and derivative financial
instruments with a positive fair value. We have a credit risk management policy in place to
limit credit losses due to non-performance of financial counterparties and customers. We
monitor our exposure to credit risk on an ongoing basis at various levels. We only deal with
financial counterparties that have a sufficiently high credit rating. Generally, we do not
require collateral in respect of financial assets. Investments in cash and cash equivalents,
short-term investments and transactions involving derivative financial instruments are
entered into with counterparties that have sound credit ratings and a good reputation.
Derivative transactions are concluded mostly with parties with whom we have contractual
netting agreements and ISDA agreements in place. We set limits per counterparty for the
different types of financial instruments we use. We closely monitor the acceptable financial
counterparty credit ratings and credit limits and revise where required in line with the market
circumstances. We do not expect non-performance by the counterparties for these
financial instruments. Due to our geographical spread and the diversity of our customers,
we were not subject to any significant concentration of credit risks at balance sheet date.
The credit risk from trade receivables is measured and analyzed by dedicated teams in the
businesses, mainly by means of ageing analysis, refer to Note 16 Trade and other
receivables. Additionally, trade receivables and financial assets measured at amortized cost
are subject to the expected credit loss impairment model either using the general or the
simplified approach. For more information on the applied impairment approaches per
financial asset type, refer to Note 1 Summary of material accounting policies.
The maximum exposure to credit risk is represented by the carrying value of financial assets
in the balance sheet.
At year-end 2023, the credit risk on consolidated level was \u20ac4.6 billion (2022: \u20ac4.6 billion)
for cash and cash equivalents, short-term investments, loans and trade and other
receivables. Our credit risk is well spread among both global and local counterparties. Our
largest counterparty risk amounted to \u20ac332 million at year-end 2023 (2022: \u20ac280 million).
Foreign exchange risk management
Trade and financing transactions
We operate in a large number of countries, where we have clients and suppliers, many of
whom are outside of the local functional currency environment. This creates currency
exposures which are partly netted out on group level. The purpose of our foreign currency
hedging activities is to protect us from the risk that the functional currency net cash flows
resulting from trade or financing transactions are adversely affected by changes in
exchange rates. Our policy is to hedge our transactional foreign exchange rate exposures
above predefined thresholds from recognized assets and liabilities. Hedge accounting is
generally not applied for foreign currency hedging activities, except for certain specific
forecasted transactions.
As from July 2022, cash flow hedge accounting was applied on a $450 million hedge for
foreign currency risk exposure related to the intended acquisition of Kansai Paint's African
activities, which continued in 2023. In November 2023, the decision was made not to
proceed with the acquisition. Related to this hedge, a total loss of \u20ac36 million was recorded
in the year in the statement of income under financing expenses, which included a loss of
\u20ac46 million related to the recycling of the amount accumulated in the cash flow hedge
reserve through other comprehensive income.
In general, our forward exchange contracts have a maturity of less than one year. When
necessary, forward exchange contracts are rolled over at maturity. Currency derivatives are
not used for speculative purposes.
Hedged notional amounts at year-end1
Buy
Sell
Buy
Sell
in \u20ac millions
2022
2022
2023
2023
US dollar
784
692
270
658
Pound sterling
649
10
794
\u2014
Chinese yuan
110
157
46
58
Brazilian real
30
64
19
57
Thai baht
\u2014
117
12
114
Other2
248
641
230
543
Total
1,821
1,681
1,371
1,430
1 No hedge accounting applied on these hedged notional amounts in 2023.
2 No individually significant position is included in 'Other', the amounts per currency are highly disaggregated.
Investments in foreign subsidiaries and associates
During 2023 and 2022, net investment hedge accounting was applied on hedges of certain
net investments in foreign operations, which were partly hedged. The main net investments
included were related to Chinese yuan, Brazilian real, Vietnamese dong and Indian rupee\u00a0
(2022: Brazilian real, Chinese yuan, Indonesian rupiah and Indian rupee), which were
hedged with forward exchange contracts for the same currencies. The spot results related
to these hedges were recognized in other comprehensive income and accumulated in the
cumulative translation reserves. In addition, a net investment in Colombian peso was
hedged with a COP 330 billion bank loan. The spot result related to this hedge was
recognized in other comprehensive income and accumulated in the cumulative translation
reserves. At year-end 2023, the hedge of the net investment in Colombian peso was
outstanding. During 2023 and 2022, the hedges of net investments were fully effective.
Interest rate risk management
We are partly financed with debt in order to obtain more efficient leverage. Interest rate risk
is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. Fixed rate debt results in fair value interest rate
risk. Floating rate debt results in cash flow interest rate risk. At the end of 2023, 62% of our
total debt consisted of fixed rate bonds (2022: 50%), 14% consisted of commercial paper
(2022: 22%) and 15% of short-term loans (2022: 19%). The fixed/floating ratio of our
outstanding bonds was 100% fixed (2022: 100% fixed). The weighted average maturity of
our outstanding bonds at year-end is 5.4 years (2022: 5.7 years). The remainder of our total
debt consisted of leases and other debt. For more information about our debt, refer to Note
20 Net debt. During 2023 and 2022, we have not used any interest rate derivatives.
Capital risk management
Our objectives when managing capital are to safeguard our ability to satisfy our capital
providers and to maintain a capital structure that optimizes our cost of capital. For this we
maintain an adequate financial strategy, with the objective to retain a strong investment
grade credit rating as assigned by the rating agencies Moody\u2019s and Standard & Poor\u2019s. The
capital structure can be altered, among others, by adjusting the amounts of dividends paid
to shareholders, return of capital to capital providers, or issuance of new debt or shares. In
May 2023, a bond was issued with a nominal value of \u20ac500 million, with a coupon of 4%,
maturing in 2033.
Consistent with other companies in the industry, we monitor capital headroom based on
the leverage ratio net debt/EBITDA for which we have set a target range of around 2. The
ratio was 2.7 at December 31, 2023 (December 31, 2022: 3.8). EBITDA amounted to
\u20ac1,386 million for 2023 (2022: \u20ac1,076 million). Net debt amounted to \u20ac3,785 million at year
end 2023 (year end 2022: \u20ac4,089 million).
Fair value of financial instruments and IFRS 9 categories
In the table \u201cFair value per financial instrument category\u201d on the next page insight is
provided in the recognition of the respective financial instruments per IFRS 9 category. The
total carrying value is based on the accounting principles as outlined in Note 1 Summary of
material accounting policies. Financial instruments are recognized at fair value and
subsequently recognized either at fair value or at amortized cost, using the effective interest
method. The financial instruments accounted for at fair value through profit or loss are
derivative financial instruments and securities included in financial non-current assets and
other current liabilities, cash and cash equivalents and short-term investments. The
remaining financial instruments are accounted for at amortized cost.
Fair value per financial instrument category
Carrying value per IFRS9 category
in \u20ac millions
Carrying
amount
Out of scope
of IFRS71
Measured at
amortized
cost
Measured at
fair value
through profit
or loss
Total carrying
value
Fair value of items
measured at
amortized cost
2022 year-end
Financial non-current assets2
1,475
1,158
308
9
317
311
Trade and other receivables3
2,447
214
2,215
18
2,233
2,215
Short-term investments
336
\u2014
\u2014
336
336
\u2014
Cash and cash equivalents
1,450
\u2014
\u2014
1,450
1,450
\u2014
Total financial assets
5,708
1,372
2,523
1,813
4,336
2,526
Long-term borrowings
3,332
\u2014
3,332
\u2014
3,332
3,031
Short-term borrowings
2,543
\u2014
2,543
\u2014
2,543
2,543
Trade and other payables4
2,801
418
2,323
60
2,383
2,323
Total financial liabilities
8,676
418
8,198
60
8,258
7,897
2023 year-end
Financial non-current assets2
1,409
1,136
264
9
273
271
Trade and other receivables3
2,483
193
2,276
14
2,290
2,276
Short-term investments
265
\u2014
\u2014
265
265
\u2014
Cash and cash equivalents
1,513
\u2014
\u2014
1,513
1,513
\u2014
Total financial assets
5,670
1,329
2,540
1,801
4,341
2,547
Long-term borrowings
3,165
\u2014
3,165
\u2014
3,165
3,015
Short-term borrowings
2,398
\u2014
2,398
\u2014
2,398
2,390
Trade and other payables4
2,933
467
2,453
13
2,466
2,453
Total financial liabilities
8,496
467
8,016
13
8,029
7,858
1 Mainly includes pension assets (refer to Note 14), (non) income tax related receivables (refer to Note 16), payables to employees and (non) income taxes payables (refer to Note 21).
2 \u20ac264 million (2022: \u20ac308 million) mainly relates to loans and receivables (refer to Note 14), \u20ac9 million (2022: \u20ac9 million) relates to other than financial instruments (refer to Note 14).
3 \u20ac2,276 million (2022: \u20ac2,215 million) relates to the remainder of trade and other receivables (refer to Note 16) and \u20ac14 million (2022: \u20ac18 million) relates to FX contracts.
4 \u20ac2,453 million (2022: \u20ac2,323 million) relates to the remainder of trade and other payables (refer to Note 21) and \u20ac13 million (2022: \u20ac60 million) relates to FX contracts.
The following valuation methods for financial instruments carried at fair value through profit
or loss are distinguished:
\u2022 Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
\u2022 Level 2: inputs other than quoted prices included within level 1 that are observable for
the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)
\u2022 Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable)
For the purpose of determining the fair value per financial instrument category, shown in the
column 'fair value', the following valuation methods were used:
A level 1 valuation method was used to estimate the fair value of the bonds issued included
in our long-term and short-term borrowings. The estimate is based on the quoted market
prices for the same or similar issues or on the current rates offered to us for debt with
similar maturities.
A level 2 valuation method was used to determine the fair value of marketable securities
included in cash and cash equivalents and short-term investments by obtaining the market
price at reporting date. The fair value of foreign currency contracts and swap contracts was
determined by level 2 valuation techniques using market observable input (such as foreign
currency interest rates based on Reuters) and by obtaining quotes from dealers and
brokers. A level 2 valuation method was used to determine the fair value of time deposits
included in cash and cash equivalents and short-term investments using the market interest
rate. The carrying amounts of cash and banks, trade receivables less allowance for
impairment, other short-term borrowings and other current liabilities approximate fair value
due to the short maturity period of those instruments and were determined using level 2 fair
value methods.
A level 3 fair valuation method (discounted cash flow using applicable market interest rates
at balance sheet date) was used for the subordinated loan granted to the Pension Fund
APF in the Netherlands, resulting in a fair value of \u20ac98 million.
Sensitivities on financial instruments at year-end 2023
Sensitivity object
Sensitivity
Hypothetical impact
Foreign currencies:
We perform foreign currency sensitivity analysis by applying an adjustment
to the spot rates prevailing at year-end. This adjustment is based on
observed changes in the exchange rate in the past and management's
expectation for reasonably possible1 future movements over a longer term
from a sensitivity test perspective. We then apply the expected possible
volatility to revalue all monetary assets and liabilities (including derivative
financial instruments) in a currency other than the functional currency of the
subsidiary in the balance sheet at year-end. These effects are of a fairly
linear nature.
A 10% (2022: 10%) strengthening of the euro versus US dollar
A 10% (2022: 10%) strengthening of the euro versus the pound sterling
A 10% (2022: 10%) strengthening of the euro versus Chinese yuan
Profit \u20ac22 million (2022: profit \u20ac9 million). Other comprehensive income \u20acnil\u00a0
(2022: loss \u20ac41 million)
Loss \u20ac5 million (2022: profit \u20ac1 million)
Profit \u20ac1 million (2022: profit \u20ac1 million)
Interest rate:
We perform interest rate sensitivity analysis by applying an adjustment to
the interest rate curve prevailing at year-end. This adjustment is based on
observed changes in the interest rate in the past and management's
expectation for reasonably possible1 future movements over a longer term
from a sensitivity test perspective. We then apply the expected possible
volatility to revalue all interest bearing assets and liabilities. These effects are
of a fairly linear nature.
A 100 basis points (2022: 100 basis points) increase of EUR interest rates
A 100 basis points (2022: 100 basis points) increase of USD interest rates
A 100 basis points (2022: 100 basis points) increase of GBP interest rates
Loss \u20ac15 million (2022: loss \u20ac16 million)
Profit \u20ac1 million (2022: profit \u20ac1 million)
Profit \u20ac1 million (2022: profit \u20ac1 million)
1 This analysis does not indicate any probability of such changes occurring; nor does it preclude larger changes in any given period or longer term.
Master netting agreements
We enter into derivative transactions under International Swaps and Derivatives Association
(ISDA) master netting agreements. In general, under such agreements the amounts owed
by each counterparty on a single day in respect of transactions outstanding in the same
currency may be aggregated into a single net amount that is payable by one party to the
other. In certain circumstances \u2013 e.g. when a credit event such as a default occurs \u2013 all
outstanding transactions under the agreement may be terminated, the termination value is
assessed and a net amount is payable in settlement of the transactions. We have evaluated
the potential effect of netting agreements, including the effect of rights of set-off and
concluded the impact is immaterial. We did not offset any amounts regarding derivative
transactions.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-493": { "value": "
Liquidity risk management
The primary objective of liquidity management is to provide for sufficient cash and cash
equivalents at all times and any place in the world to enable us to meet our payment
obligations. We aim for a well-spread maturity schedule of our long-term borrowings and a
strong liquidity position. At year-end 2023, we had \u20ac1.5 billion available as cash and cash
equivalents (2022: \u20ac1.2 billion) and \u20ac265 million available as short-term investments (2022:
\u20ac58 million), refer to Note 20 Net debt.
In addition, we have a multi-currency revolving credit facility of \u20ac1.3 billion which runs until
2027. This facility does not contain financial covenants or acceleration provisions that are
based on adverse changes in ratings or on other material adverse changes. At year-end
2023 and 2022, this facility had not been drawn. We have US dollar and euro commercial
paper programs in place, which can be used to the extent that the equivalent portion of the
\u20ac1.3 billion multi-currency revolving credit facility is not used. We had \u20ac0.8 billion
commercial paper outstanding at year end 2023 (2022: \u20ac1.3 billion) against an average
interest rate of 4.1% (2022: average interest rate of 1.6%). Further, at year-end 2023, we
had \u20ac0.8 billion short-term bank loans outstanding (2022: \u20ac1.1 billion) against 3-months
", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-494": { "value": "
Credit risk management
Credit risk arises from financial assets such as cash and cash equivalents, deposits with
financial institutions, money market funds, trade receivables and derivative financial
instruments with a positive fair value. We have a credit risk management policy in place to
limit credit losses due to non-performance of financial counterparties and customers. We
monitor our exposure to credit risk on an ongoing basis at various levels. We only deal with
financial counterparties that have a sufficiently high credit rating. Generally, we do not
require collateral in respect of financial assets. Investments in cash and cash equivalents,
short-term investments and transactions involving derivative financial instruments are
entered into with counterparties that have sound credit ratings and a good reputation.
Derivative transactions are concluded mostly with parties with whom we have contractual
netting agreements and ISDA agreements in place. We set limits per counterparty for the
different types of financial instruments we use. We closely monitor the acceptable financial
counterparty credit ratings and credit limits and revise where required in line with the market
circumstances. We do not expect non-performance by the counterparties for these
financial instruments. Due to our geographical spread and the diversity of our customers,
we were not subject to any significant concentration of credit risks at balance sheet date.
The credit risk from trade receivables is measured and analyzed by dedicated teams in the
businesses, mainly by means of ageing analysis, refer to Note 16 Trade and other
receivables. Additionally, trade receivables and financial assets measured at amortized cost
are subject to the expected credit loss impairment model either using the general or the
simplified approach. For more information on the applied impairment approaches per
financial asset type, refer to Note 1 Summary of material accounting policies.
The maximum exposure to credit risk is represented by the carrying value of financial assets
in the balance sheet.
At year-end 2023, the credit risk on consolidated level was \u20ac4.6 billion (2022: \u20ac4.6 billion)
for cash and cash equivalents, short-term investments, loans and trade and other
receivables. Our credit risk is well spread among both global and local counterparties. Our
largest counterparty risk amounted to \u20ac332 million at year-end 2023 (2022: \u20ac280 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-495": { "value": "
Foreign exchange risk management
Trade and financing transactions
We operate in a large number of countries, where we have clients and suppliers, many of
whom are outside of the local functional currency environment. This creates currency
exposures which are partly netted out on group level. The purpose of our foreign currency
hedging activities is to protect us from the risk that the functional currency net cash flows
resulting from trade or financing transactions are adversely affected by changes in
exchange rates. Our policy is to hedge our transactional foreign exchange rate exposures
above predefined thresholds from recognized assets and liabilities. Hedge accounting is
generally not applied for foreign currency hedging activities, except for certain specific
forecasted transactions.
As from July 2022, cash flow hedge accounting was applied on a $450 million hedge for
foreign currency risk exposure related to the intended acquisition of Kansai Paint's African
activities, which continued in 2023. In November 2023, the decision was made not to
proceed with the acquisition. Related to this hedge, a total loss of \u20ac36 million was recorded
in the year in the statement of income under financing expenses, which included a loss of
\u20ac46 million related to the recycling of the amount accumulated in the cash flow hedge
reserve through other comprehensive income.
In general, our forward exchange contracts have a maturity of less than one year. When
necessary, forward exchange contracts are rolled over at maturity. Currency derivatives are
not used for speculative purposes.
Hedged notional amounts at year-end1
Buy
Sell
Buy
Sell
in \u20ac millions
2022
2022
2023
2023
US dollar
784
692
270
658
Pound sterling
649
10
794
\u2014
Chinese yuan
110
157
46
58
Brazilian real
30
64
19
57
Thai baht
\u2014
117
12
114
Other2
248
641
230
543
Total
1,821
1,681
1,371
1,430
1 No hedge accounting applied on these hedged notional amounts in 2023.
2 No individually significant position is included in 'Other', the amounts per currency are highly disaggregated.
Investments in foreign subsidiaries and associates
During 2023 and 2022, net investment hedge accounting was applied on hedges of certain
net investments in foreign operations, which were partly hedged. The main net investments
included were related to Chinese yuan, Brazilian real, Vietnamese dong and Indian rupee\u00a0
(2022: Brazilian real, Chinese yuan, Indonesian rupiah and Indian rupee), which were
hedged with forward exchange contracts for the same currencies. The spot results related
to these hedges were recognized in other comprehensive income and accumulated in the
cumulative translation reserves. In addition, a net investment in Colombian peso was
hedged with a COP 330 billion bank loan. The spot result related to this hedge was
recognized in other comprehensive income and accumulated in the cumulative translation
reserves. At year-end 2023, the hedge of the net investment in Colombian peso was
outstanding. During 2023 and 2022, the hedges of net investments were fully effective.
Interest rate risk management
We are partly financed with debt in order to obtain more efficient leverage. Interest rate risk
is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. Fixed rate debt results in fair value interest rate
risk. Floating rate debt results in cash flow interest rate risk. At the end of 2023, 62% of our
total debt consisted of fixed rate bonds (2022: 50%), 14% consisted of commercial paper
(2022: 22%) and 15% of short-term loans (2022: 19%). The fixed/floating ratio of our
outstanding bonds was 100% fixed (2022: 100% fixed). The weighted average maturity of
our outstanding bonds at year-end is 5.4 years (2022: 5.7 years). The remainder of our total
debt consisted of leases and other debt. For more information about our debt, refer to Note
20 Net debt. During 2023 and 2022, we have not used any interest rate derivatives.
Capital risk management
Our objectives when managing capital are to safeguard our ability to satisfy our capital
providers and to maintain a capital structure that optimizes our cost of capital. For this we
maintain an adequate financial strategy, with the objective to retain a strong investment
grade credit rating as assigned by the rating agencies Moody\u2019s and Standard & Poor\u2019s. The
capital structure can be altered, among others, by adjusting the amounts of dividends paid
to shareholders, return of capital to capital providers, or issuance of new debt or shares. In
May 2023, a bond was issued with a nominal value of \u20ac500 million, with a coupon of 4%,
maturing in 2033.
Consistent with other companies in the industry, we monitor capital headroom based on
the leverage ratio net debt/EBITDA for which we have set a target range of around 2. The
ratio was 2.7 at December 31, 2023 (December 31, 2022: 3.8). EBITDA amounted to
\u20ac1,386 million for 2023 (2022: \u20ac1,076 million). Net debt amounted to \u20ac3,785 million at year
end 2023 (year end 2022: \u20ac4,089 million).
Fair value of financial instruments and IFRS 9 categories
In the table \u201cFair value per financial instrument category\u201d on the next page insight is
provided in the recognition of the respective financial instruments per IFRS 9 category. The
total carrying value is based on the accounting principles as outlined in Note 1 Summary of
material accounting policies. Financial instruments are recognized at fair value and
subsequently recognized either at fair value or at amortized cost, using the effective interest
method. The financial instruments accounted for at fair value through profit or loss are
derivative financial instruments and securities included in financial non-current assets and
other current liabilities, cash and cash equivalents and short-term investments. The
remaining financial instruments are accounted for at amortized cost.
Fair value per financial instrument category
Carrying value per IFRS9 category
in \u20ac millions
Carrying
amount
Out of scope
of IFRS71
Measured at
amortized
cost
Measured at
fair value
through profit
or loss
Total carrying
value
Fair value of items
measured at
amortized cost
2022 year-end
Financial non-current assets2
1,475
1,158
308
9
317
311
Trade and other receivables3
2,447
214
2,215
18
2,233
2,215
Short-term investments
336
\u2014
\u2014
336
336
\u2014
Cash and cash equivalents
1,450
\u2014
\u2014
1,450
1,450
\u2014
Total financial assets
5,708
1,372
2,523
1,813
4,336
2,526
Long-term borrowings
3,332
\u2014
3,332
\u2014
3,332
3,031
Short-term borrowings
2,543
\u2014
2,543
\u2014
2,543
2,543
Trade and other payables4
2,801
418
2,323
60
2,383
2,323
Total financial liabilities
8,676
418
8,198
60
8,258
7,897
2023 year-end
Financial non-current assets2
1,409
1,136
264
9
273
271
Trade and other receivables3
2,483
193
2,276
14
2,290
2,276
Short-term investments
265
\u2014
\u2014
265
265
\u2014
Cash and cash equivalents
1,513
\u2014
\u2014
1,513
1,513
\u2014
Total financial assets
5,670
1,329
2,540
1,801
4,341
2,547
Long-term borrowings
3,165
\u2014
3,165
\u2014
3,165
3,015
Short-term borrowings
2,398
\u2014
2,398
\u2014
2,398
2,390
Trade and other payables4
2,933
467
2,453
13
2,466
2,453
Total financial liabilities
8,496
467
8,016
13
8,029
7,858
1 Mainly includes pension assets (refer to Note 14), (non) income tax related receivables (refer to Note 16), payables to employees and (non) income taxes payables (refer to Note 21).
2 \u20ac264 million (2022: \u20ac308 million) mainly relates to loans and receivables (refer to Note 14), \u20ac9 million (2022: \u20ac9 million) relates to other than financial instruments (refer to Note 14).
3 \u20ac2,276 million (2022: \u20ac2,215 million) relates to the remainder of trade and other receivables (refer to Note 16) and \u20ac14 million (2022: \u20ac18 million) relates to FX contracts.
4 \u20ac2,453 million (2022: \u20ac2,323 million) relates to the remainder of trade and other payables (refer to Note 21) and \u20ac13 million (2022: \u20ac60 million) relates to FX contracts.
The following valuation methods for financial instruments carried at fair value through profit
or loss are distinguished:
\u2022 Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
\u2022 Level 2: inputs other than quoted prices included within level 1 that are observable for
the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)
\u2022 Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable)
For the purpose of determining the fair value per financial instrument category, shown in the
column 'fair value', the following valuation methods were used:
A level 1 valuation method was used to estimate the fair value of the bonds issued included
in our long-term and short-term borrowings. The estimate is based on the quoted market
prices for the same or similar issues or on the current rates offered to us for debt with
similar maturities.
A level 2 valuation method was used to determine the fair value of marketable securities
included in cash and cash equivalents and short-term investments by obtaining the market
price at reporting date. The fair value of foreign currency contracts and swap contracts was
determined by level 2 valuation techniques using market observable input (such as foreign
currency interest rates based on Reuters) and by obtaining quotes from dealers and
brokers. A level 2 valuation method was used to determine the fair value of time deposits
included in cash and cash equivalents and short-term investments using the market interest
rate. The carrying amounts of cash and banks, trade receivables less allowance for
impairment, other short-term borrowings and other current liabilities approximate fair value
due to the short maturity period of those instruments and were determined using level 2 fair
value methods.
A level 3 fair valuation method (discounted cash flow using applicable market interest rates
at balance sheet date) was used for the subordinated loan granted to the Pension Fund
APF in the Netherlands, resulting in a fair value of \u20ac98 million.
Sensitivities on financial instruments at year-end 2023
Sensitivity object
Sensitivity
Hypothetical impact
Foreign currencies:
We perform foreign currency sensitivity analysis by applying an adjustment
to the spot rates prevailing at year-end. This adjustment is based on
observed changes in the exchange rate in the past and management's
expectation for reasonably possible1 future movements over a longer term
from a sensitivity test perspective. We then apply the expected possible
volatility to revalue all monetary assets and liabilities (including derivative
financial instruments) in a currency other than the functional currency of the
subsidiary in the balance sheet at year-end. These effects are of a fairly
linear nature.
A 10% (2022: 10%) strengthening of the euro versus US dollar
A 10% (2022: 10%) strengthening of the euro versus the pound sterling
A 10% (2022: 10%) strengthening of the euro versus Chinese yuan
Profit \u20ac22 million (2022: profit \u20ac9 million). Other comprehensive income \u20acnil\u00a0
(2022: loss \u20ac41 million)
Loss \u20ac5 million (2022: profit \u20ac1 million)
Profit \u20ac1 million (2022: profit \u20ac1 million)
Interest rate:
We perform interest rate sensitivity analysis by applying an adjustment to
the interest rate curve prevailing at year-end. This adjustment is based on
observed changes in the interest rate in the past and management's
expectation for reasonably possible1 future movements over a longer term
from a sensitivity test perspective. We then apply the expected possible
volatility to revalue all interest bearing assets and liabilities. These effects are
of a fairly linear nature.
A 100 basis points (2022: 100 basis points) increase of EUR interest rates
A 100 basis points (2022: 100 basis points) increase of USD interest rates
A 100 basis points (2022: 100 basis points) increase of GBP interest rates
Loss \u20ac15 million (2022: loss \u20ac16 million)
Profit \u20ac1 million (2022: profit \u20ac1 million)
Profit \u20ac1 million (2022: profit \u20ac1 million)
1 This analysis does not indicate any probability of such changes occurring; nor does it preclude larger changes in any given period or longer term.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-496": { "value": "
Trade and financing transactions
We operate in a large number of countries, where we have clients and suppliers, many of
whom are outside of the local functional currency environment. This creates currency
exposures which are partly netted out on group level. The purpose of our foreign currency
hedging activities is to protect us from the risk that the functional currency net cash flows
resulting from trade or financing transactions are adversely affected by changes in
exchange rates. Our policy is to hedge our transactional foreign exchange rate exposures
above predefined thresholds from recognized assets and liabilities. Hedge accounting is
generally not applied for foreign currency hedging activities, except for certain specific
forecasted transactions.
As from July 2022, cash flow hedge accounting was applied on a $450 million hedge for
foreign currency risk exposure related to the intended acquisition of Kansai Paint's African
activities, which continued in 2023. In November 2023, the decision was made not to
proceed with the acquisition. Related to this hedge, a total loss of \u20ac36 million was recorded
in the year in the statement of income under financing expenses, which included a loss of
\u20ac46 million related to the recycling of the amount accumulated in the cash flow hedge
reserve through other comprehensive income.
In general, our forward exchange contracts have a maturity of less than one year. When
necessary, forward exchange contracts are rolled over at maturity. Currency derivatives are
not used for speculative purposes.
Hedged notional amounts at year-end1
Buy
Sell
Buy
Sell
in \u20ac millions
2022
2022
2023
2023
US dollar
784
692
270
658
Pound sterling
649
10
794
\u2014
Chinese yuan
110
157
46
58
Brazilian real
30
64
19
57
Thai baht
\u2014
117
12
114
Other2
248
641
230
543
Total
1,821
1,681
1,371
1,430
1 No hedge accounting applied on these hedged notional amounts in 2023.
2 No individually significant position is included in 'Other', the amounts per currency are highly disaggregated.
Investments in foreign subsidiaries and associates
During 2023 and 2022, net investment hedge accounting was applied on hedges of certain
net investments in foreign operations, which were partly hedged. The main net investments
included were related to Chinese yuan, Brazilian real, Vietnamese dong and Indian rupee\u00a0
(2022: Brazilian real, Chinese yuan, Indonesian rupiah and Indian rupee), which were
hedged with forward exchange contracts for the same currencies. The spot results related
to these hedges were recognized in other comprehensive income and accumulated in the
cumulative translation reserves. In addition, a net investment in Colombian peso was
hedged with a COP 330 billion bank loan. The spot result related to this hedge was
recognized in other comprehensive income and accumulated in the cumulative translation
reserves. At year-end 2023, the hedge of the net investment in Colombian peso was
outstanding. During 2023 and 2022, the hedges of net investments were fully effective.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-497": { "value": "
Capital risk management
Our objectives when managing capital are to safeguard our ability to satisfy our capital
providers and to maintain a capital structure that optimizes our cost of capital. For this we
maintain an adequate financial strategy, with the objective to retain a strong investment
grade credit rating as assigned by the rating agencies Moody\u2019s and Standard & Poor\u2019s. The
capital structure can be altered, among others, by adjusting the amounts of dividends paid
to shareholders, return of capital to capital providers, or issuance of new debt or shares. In
May 2023, a bond was issued with a nominal value of \u20ac500 million, with a coupon of 4%,
maturing in 2033.
Consistent with other companies in the industry, we monitor capital headroom based on
the leverage ratio net debt/EBITDA for which we have set a target range of around 2. The
ratio was 2.7 at December 31, 2023 (December 31, 2022: 3.8). EBITDA amounted to
\u20ac1,386 million for 2023 (2022: \u20ac1,076 million). Net debt amounted to \u20ac3,785 million at year
end 2023 (year end 2022: \u20ac4,089 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-499": { "value": "
Fair value of financial instruments and IFRS 9 categories
In the table \u201cFair value per financial instrument category\u201d on the next page insight is
provided in the recognition of the respective financial instruments per IFRS 9 category. The
total carrying value is based on the accounting principles as outlined in Note 1 Summary of
material accounting policies. Financial instruments are recognized at fair value and
subsequently recognized either at fair value or at amortized cost, using the effective interest
method. The financial instruments accounted for at fair value through profit or loss are
derivative financial instruments and securities included in financial non-current assets and
other current liabilities, cash and cash equivalents and short-term investments. The
remaining financial instruments are accounted for at amortized cost.
The following valuation methods for financial instruments carried at fair value through profit
or loss are distinguished:
\u2022 Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
\u2022 Level 2: inputs other than quoted prices included within level 1 that are observable for
the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)
\u2022 Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable)
For the purpose of determining the fair value per financial instrument category, shown in the
column 'fair value', the following valuation methods were used:
A level 1 valuation method was used to estimate the fair value of the bonds issued included
in our long-term and short-term borrowings. The estimate is based on the quoted market
prices for the same or similar issues or on the current rates offered to us for debt with
similar maturities.
A level 2 valuation method was used to determine the fair value of marketable securities
included in cash and cash equivalents and short-term investments by obtaining the market
price at reporting date. The fair value of foreign currency contracts and swap contracts was
determined by level 2 valuation techniques using market observable input (such as foreign
currency interest rates based on Reuters) and by obtaining quotes from dealers and
brokers. A level 2 valuation method was used to determine the fair value of time deposits
included in cash and cash equivalents and short-term investments using the market interest
rate. The carrying amounts of cash and banks, trade receivables less allowance for
impairment, other short-term borrowings and other current liabilities approximate fair value
due to the short maturity period of those instruments and were determined using level 2 fair
value methods.
A level 3 fair valuation method (discounted cash flow using applicable market interest rates
at balance sheet date) was used for the subordinated loan granted to the Pension Fund
APF in the Netherlands, resulting in a fair value of \u20ac98 million.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-498": { "value": "
Fair value of financial instruments and IFRS 9 categories
In the table \u201cFair value per financial instrument category\u201d on the next page insight is
provided in the recognition of the respective financial instruments per IFRS 9 category. The
total carrying value is based on the accounting principles as outlined in Note 1 Summary of
material accounting policies. Financial instruments are recognized at fair value and
subsequently recognized either at fair value or at amortized cost, using the effective interest
method. The financial instruments accounted for at fair value through profit or loss are
derivative financial instruments and securities included in financial non-current assets and
other current liabilities, cash and cash equivalents and short-term investments. The
remaining financial instruments are accounted for at amortized cost.
The following valuation methods for financial instruments carried at fair value through profit
or loss are distinguished:
\u2022 Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
\u2022 Level 2: inputs other than quoted prices included within level 1 that are observable for
the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)
\u2022 Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable)
For the purpose of determining the fair value per financial instrument category, shown in the
column 'fair value', the following valuation methods were used:
A level 1 valuation method was used to estimate the fair value of the bonds issued included
in our long-term and short-term borrowings. The estimate is based on the quoted market
prices for the same or similar issues or on the current rates offered to us for debt with
similar maturities.
A level 2 valuation method was used to determine the fair value of marketable securities
included in cash and cash equivalents and short-term investments by obtaining the market
price at reporting date. The fair value of foreign currency contracts and swap contracts was
determined by level 2 valuation techniques using market observable input (such as foreign
currency interest rates based on Reuters) and by obtaining quotes from dealers and
brokers. A level 2 valuation method was used to determine the fair value of time deposits
included in cash and cash equivalents and short-term investments using the market interest
rate. The carrying amounts of cash and banks, trade receivables less allowance for
impairment, other short-term borrowings and other current liabilities approximate fair value
due to the short maturity period of those instruments and were determined using level 2 fair
value methods.
A level 3 fair valuation method (discounted cash flow using applicable market interest rates
at balance sheet date) was used for the subordinated loan granted to the Pension Fund
APF in the Netherlands, resulting in a fair value of \u20ac98 million.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-501": { "value": "
Fair value per financial instrument category
Carrying value per IFRS9 category
in \u20ac millions
Carrying
amount
Out of scope
of IFRS71
Measured at
amortized
cost
Measured at
fair value
through profit
or loss
Total carrying
value
Fair value of items
measured at
amortized cost
2022 year-end
Financial non-current assets2
1,475
1,158
308
9
317
311
Trade and other receivables3
2,447
214
2,215
18
2,233
2,215
Short-term investments
336
\u2014
\u2014
336
336
\u2014
Cash and cash equivalents
1,450
\u2014
\u2014
1,450
1,450
\u2014
Total financial assets
5,708
1,372
2,523
1,813
4,336
2,526
Long-term borrowings
3,332
\u2014
3,332
\u2014
3,332
3,031
Short-term borrowings
2,543
\u2014
2,543
\u2014
2,543
2,543
Trade and other payables4
2,801
418
2,323
60
2,383
2,323
Total financial liabilities
8,676
418
8,198
60
8,258
7,897
2023 year-end
Financial non-current assets2
1,409
1,136
264
9
273
271
Trade and other receivables3
2,483
193
2,276
14
2,290
2,276
Short-term investments
265
\u2014
\u2014
265
265
\u2014
Cash and cash equivalents
1,513
\u2014
\u2014
1,513
1,513
\u2014
Total financial assets
5,670
1,329
2,540
1,801
4,341
2,547
Long-term borrowings
3,165
\u2014
3,165
\u2014
3,165
3,015
Short-term borrowings
2,398
\u2014
2,398
\u2014
2,398
2,390
Trade and other payables4
2,933
467
2,453
13
2,466
2,453
Total financial liabilities
8,496
467
8,016
13
8,029
7,858
1 Mainly includes pension assets (refer to Note 14), (non) income tax related receivables (refer to Note 16), payables to employees and (non) income taxes payables (refer to Note 21).
2 \u20ac264 million (2022: \u20ac308 million) mainly relates to loans and receivables (refer to Note 14), \u20ac9 million (2022: \u20ac9 million) relates to other than financial instruments (refer to Note 14).
3 \u20ac2,276 million (2022: \u20ac2,215 million) relates to the remainder of trade and other receivables (refer to Note 16) and \u20ac14 million (2022: \u20ac18 million) relates to FX contracts.
4 \u20ac2,453 million (2022: \u20ac2,323 million) relates to the remainder of trade and other payables (refer to Note 21) and \u20ac13 million (2022: \u20ac60 million) relates to FX contracts.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-500": { "value": "
Fair value per financial instrument category
Carrying value per IFRS9 category
in \u20ac millions
Carrying
amount
Out of scope
of IFRS71
Measured at
amortized
cost
Measured at
fair value
through profit
or loss
Total carrying
value
Fair value of items
measured at
amortized cost
2022 year-end
Financial non-current assets2
1,475
1,158
308
9
317
311
Trade and other receivables3
2,447
214
2,215
18
2,233
2,215
Short-term investments
336
\u2014
\u2014
336
336
\u2014
Cash and cash equivalents
1,450
\u2014
\u2014
1,450
1,450
\u2014
Total financial assets
5,708
1,372
2,523
1,813
4,336
2,526
Long-term borrowings
3,332
\u2014
3,332
\u2014
3,332
3,031
Short-term borrowings
2,543
\u2014
2,543
\u2014
2,543
2,543
Trade and other payables4
2,801
418
2,323
60
2,383
2,323
Total financial liabilities
8,676
418
8,198
60
8,258
7,897
2023 year-end
Financial non-current assets2
1,409
1,136
264
9
273
271
Trade and other receivables3
2,483
193
2,276
14
2,290
2,276
Short-term investments
265
\u2014
\u2014
265
265
\u2014
Cash and cash equivalents
1,513
\u2014
\u2014
1,513
1,513
\u2014
Total financial assets
5,670
1,329
2,540
1,801
4,341
2,547
Long-term borrowings
3,165
\u2014
3,165
\u2014
3,165
3,015
Short-term borrowings
2,398
\u2014
2,398
\u2014
2,398
2,390
Trade and other payables4
2,933
467
2,453
13
2,466
2,453
Total financial liabilities
8,496
467
8,016
13
8,029
7,858
1 Mainly includes pension assets (refer to Note 14), (non) income tax related receivables (refer to Note 16), payables to employees and (non) income taxes payables (refer to Note 21).
2 \u20ac264 million (2022: \u20ac308 million) mainly relates to loans and receivables (refer to Note 14), \u20ac9 million (2022: \u20ac9 million) relates to other than financial instruments (refer to Note 14).
3 \u20ac2,276 million (2022: \u20ac2,215 million) relates to the remainder of trade and other receivables (refer to Note 16) and \u20ac14 million (2022: \u20ac18 million) relates to FX contracts.
4 \u20ac2,453 million (2022: \u20ac2,323 million) relates to the remainder of trade and other payables (refer to Note 21) and \u20ac13 million (2022: \u20ac60 million) relates to FX contracts.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-502": { "value": "
Sensitivities on financial instruments at year-end 2023
Sensitivity object
Sensitivity
Hypothetical impact
Foreign currencies:
We perform foreign currency sensitivity analysis by applying an adjustment
to the spot rates prevailing at year-end. This adjustment is based on
observed changes in the exchange rate in the past and management's
expectation for reasonably possible1 future movements over a longer term
from a sensitivity test perspective. We then apply the expected possible
volatility to revalue all monetary assets and liabilities (including derivative
financial instruments) in a currency other than the functional currency of the
subsidiary in the balance sheet at year-end. These effects are of a fairly
linear nature.
A 10% (2022: 10%) strengthening of the euro versus US dollar
A 10% (2022: 10%) strengthening of the euro versus the pound sterling
A 10% (2022: 10%) strengthening of the euro versus Chinese yuan
Profit \u20ac22 million (2022: profit \u20ac9 million). Other comprehensive income \u20acnil\u00a0
(2022: loss \u20ac41 million)
Loss \u20ac5 million (2022: profit \u20ac1 million)
Profit \u20ac1 million (2022: profit \u20ac1 million)
Interest rate:
We perform interest rate sensitivity analysis by applying an adjustment to
the interest rate curve prevailing at year-end. This adjustment is based on
observed changes in the interest rate in the past and management's
expectation for reasonably possible1 future movements over a longer term
from a sensitivity test perspective. We then apply the expected possible
volatility to revalue all interest bearing assets and liabilities. These effects are
of a fairly linear nature.
A 100 basis points (2022: 100 basis points) increase of EUR interest rates
A 100 basis points (2022: 100 basis points) increase of USD interest rates
A 100 basis points (2022: 100 basis points) increase of GBP interest rates
Loss \u20ac15 million (2022: loss \u20ac16 million)
Profit \u20ac1 million (2022: profit \u20ac1 million)
Profit \u20ac1 million (2022: profit \u20ac1 million)
1 This analysis does not indicate any probability of such changes occurring; nor does it preclude larger changes in any given period or longer term.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-503": { "value": "
Note 27: Subsequent events
No significant subsequent events have been identified.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-504": { "value": "
Statement of income
in \u20ac millions, for the year ended
December 31
Note
2022
2023
Revenue
A
4
\u2014
Gross profit
4
\u2014
General and administrative expenses
(46)
(74)
Other results
(1)
\u2014
(47)
(74)
Operating income
(43)
(74)
Financing income and expenses
B
(71)
(199)
Net income from subsidiaries
D
440
693
369
494
Profit before tax
326
420
Income tax
26
22
Net income
352
442
Balance sheet, before allocation of profit
in \u20ac millions, at December 31
Note
2022
2023
Assets
Fixed assets
Intangible assets
C
99
97
Financial fixed assets*
D
11,649
10,964
Total fixed assets
11,748
11,061
Current assets
Short-term receivables*
E
1,281
1,982
Short-term investments
G
290
198
Cash and cash equivalents
G
643
615
Total current assets
2,214
2,795
Total assets
13,962
13,856
Equity and liabilities
Equity
Subscribed share capital
87
85
Cash flow hedge reserve
(34)
\u2014
Other legal reserves
296
312
Cumulative translation reserves
(656)
(711)
Actuarial gains and losses
(2,902)
(3,013)
Other reserves
7,265
7,282
Undistributed results
277
367
Shareholders\u2019 equity
F
4,333
4,322
Provisions
3
2
Long-term liabilities*
G
3,034
2,933
Current liabilities
Short-term borrowings*
G
6,471
6,353
Other current liabilities
H
121
246
Total current liabilities
6,592
6,599
Total equity and liabilities
13,962
13,856
* Re-presented 2022 subsidiary balances to reflect contractual arrangements rather than the expected settlement date. Refer to note
\u00a0 D for more details.
Note A: General information
Akzo Nobel N.V. is a company headquartered in the Netherlands. The address of our
registered office is Christian Neefestraat 2, Amsterdam; the Chamber of Commerce
number is 09007809.
The financial statements of Akzo Nobel N.V. have been prepared in accordance with Part 9
of Book 2 of the Dutch Civil Code, making use of the option of Article\u00a0362 of the Code,
meaning that the accounting principles used are the same as for the Consolidated financial
statements. Foreign currency amounts have been translated, assets and liabilities have
been valued, and net income has been determined in accordance with the principles of
valuation and determination of income presented in Note 1 of the Consolidated financial
statements.
For the Company financial statements, 2022 revenue relates to revenue generated through
service contracts with third parties.
Consolidated subsidiaries are all entities (including intermediate subsidiaries) over which the
company has control. The company controls an entity when it is exposed, or has rights, to
variable returns from its involvement with the subsidiary and has the ability to affect those
returns through its power over the subsidiary. Subsidiaries are recognized from the date on
which control is transferred to the company or its intermediate holding entities. They are de-
recognized from the date that control ceases.
The company applies the acquisition method to account for acquiring subsidiaries. The
consideration transferred for the acquisition of a subsidiary is the fair value of assets
transferred by the company, liabilities incurred to the former owners of the acquiree and the
equity interests issued by the company. Identifiable assets acquired and liabilities and
contingent liabilities assumed in an acquisition are measured initially at their fair values at
the acquisition date, and are subsumed in the net asset value of the investment in
consolidated subsidiaries. Acquisition-related costs are expensed as incurred.
Investments in consolidated subsidiaries are measured using the equity method, based on
the measurement of assets, provisions and liabilities and determination of profit based on
the principles applied in the consolidated financial statements. When an acquisition of an
investment in a consolidated subsidiary is achieved in stages, any previously held equity
interest is remeasured to fair value on the date of acquisition. The remeasurement against
the book value is accounted for in the statement of income. When the company ceases to
have control over a subsidiary, any retained interest is remeasured to its fair value, with the
change in carrying amount to be accounted for in the statement of income.
When parts of investments in consolidated subsidiaries are bought or sold, and such
transaction does not result in the loss of control, the difference between the consideration
paid or received and the carrying amount of the net assets acquired or sold, is directly
recognized in equity.
The remuneration paragraph is included in Note 25 of the Consolidated financial
statements. The number of employees having a contract with the Company at year-end
2023 was 5 (2022: 7). All employees are based in the Netherlands.
Note B: Financing income and expenses
Financing income and expenses are specified in the table below.
Financing income and expenses
in \u20ac millions
2022
2023
Financing income - third parties
5
27
Financing income - subsidiaries
53
62
Financing expense - third parties
(75)
(145)
Financing expense - subsidiaries
(39)
(144)
Net interest on net debt
(56)
(200)
Other items
(15)
1
Net other financing income / (expenses)
(15)
1
Total
(71)
(199)
Other items in 2023 and 2022 mainly include foreign currency results.
Note C: Intangible assets
Intangible assets mainly include (internally developed) software.\u00a0
Intangible assets
in \u20ac millions
Other intangibles
Balance at January 1, 2022
Cost of (internally developed) intangibles
113
Accumulated amortization
(22)
Carrying value at January 1, 2022
91
Movements in 2022
Additions
26
Amortization
(18)
Total movements
8
Cost of (internally developed) intangibles
139
Accumulated amortization
(40)
Balance at December 31, 2022
99
Movements in 2023
Additions
18
Amortization
(19)
Impairments
(1)
Total movements
(2)
Cost of (internally developed) intangibles
153
Accumulated amortization
(56)
Balance at December 31, 2023
97
Note D: Financial fixed assets
Movements in financial fixed assets
Subsidiaries
in \u20ac millions
Share in
capital
Loans*
Other non-
current
assets
Total
Balance at December 31, 2021
10,475
1,572
120
12,167
Impact IAS 29 Hyperinflation T\u00fcrkiye
16
\u2014
\u2014
16
Balance at January 1, 2022
10,491
1,572
120
12,183
Investments/acquisitions/capital contributions
458
\u2014
2
460
Divestments/capital repayments/dividends
(1,058)
\u2014
\u2014
(1,058)
Net income from subsidiaries
440
\u2014
\u2014
440
Equity-settled transactions
12
\u2014
\u2014
12
Cash flow hedges
(3)
\u2014
\u2014
(3)
Loans granted
\u2014
554
\u2014
554
Loans transferred from long-term to short-
term
(460)
(460)
Repayment of loans
\u2014
(48)
\u2014
(48)
Post-retirement benefits
(290)
\u2014
\u2014
(290)
Deferred tax assets
\u2014
\u2014
21
21
Changes in exchange rates
(180)
18
\u2014
(162)
Balance at December 31, 2022
9,870
1,636
143
11,649
Investments/acquisitions/capital contributions
40
\u2014
\u2014
40
Divestments/capital repayments/dividends
(287)
\u2014
\u2014
(287)
Net income from subsidiaries
693
\u2014
\u2014
693
Equity-settled transactions
14
\u2014
\u2014
14
Cash flow hedges
34
\u2014
\u2014
34
Loans granted
\u2014
492
\u2014
492
Loans transferred from long-term to short-
term
\u2014
(1,082)
\u2014
(1,082)
Repayment of loans
\u2014
(385)
\u2014
(385)
Post-retirement benefits
(111)
\u2014
\u2014
(111)
Deferred tax assets
\u2014
\u2014
(12)
(12)
Changes in exchange rates
(55)
(26)
\u2014
(81)
Balance at December 31, 2023
10,198
635
131
10,964
* Re-presented 2022 subsidiary balances to reflect contractual arrangements rather than the expected settlement date.
Investments in su bsidiaries are measured using the equity method of accounting.
Intercompany loans are priced at arm\u2019s length, taking factors like the credit quality of
AkzoNobel and the counterparty, country and currency risks into consideration. The fair
value of the loans to subsidiaries approximates the book value.
Following an assessment in 2023, loans to subsidiaries, receivables from subsidiaries, and
the long- and short-term portion of debt to subsidiaries were presented to reflect the
contractual arrangements rather than the expected settlement dates. Therefore the
balances for 2022 were similarly re-presented.
Loans to subsidiaries that will mature between 2 and 5 years\u00a0 amounted to \u20ac616 million
(2022: \u20ac1,552 million). An amount of \u20ac19 million will mature after 5 years (2022: \u20ac84
million).
Other non-current assets include the subordinated loan granted to the Pension Fund APF
in the Netherlands valued at \u20ac90 million (2022: \u20ac89 million). Using a level 3 fair valuation
method (discounted cash flow), a fair value of \u20ac98 million (2022: \u20ac93 million) was
determined for this loan. For information on valuation methods, see Note 26 Financial risk
management of the Consolidated financial statements.
Other non-current assets further contain \u20ac39 million deferred tax assets (2022: \u20ac51 million).
Akzo Nobel N.V. is head of the Dutch fiscal unity for corporate income tax. Members of the
fiscal unity reflect taxes in their accounts as if they are taxable on a standalone basis and
are charged or credited accordingly by the company.
Note E: Short-term receivables
Short-term receivables
in \u20ac millions, at December 31
2022
2023
Receivables from subsidiaries*
1,260
1,948
FX contracts
18
14
Other receivables
3
20
Total
1,281
1,982
* Re-presented 2022 subsidiary balances to reflect contractual arrangements rather than the expected settlement date. Refer to note
D for more details.
Short-term receivables are expected to be settled within one year. Receivables from
subsidiaries include interest to be received on intercompany loans of \u20ac19 million (2022: \u20ac17
million) and the current portion of a loan to a subsidiary maturing in 2024 with a value of
\u20ac1.1 billion. The fair value of the receivables from subsidiaries approximates the book value.
Note F: Shareholders\u2019 equity
Statement of changes in equity
Legal reserves
in \u20ac millions
Subscribed
share capital
Cash flow
hedges
Other
legal reserves
Cumulative
translation
reserves
Actuarial
gains
& losses
Other
reserves
Undistributed
results
Shareholders'
equity
Balance at December 31, 2021
91
(19)
275
(493)
(2,613)
7,435
749
5,425
Impact IAS 29 Hyperinflation T\u00fcrkiye*
\u2014
\u2014
\u2014
\u2014
\u2014
16
\u2014
16
Balance at January 1, 2022
91
(19)
275
(493)
(2,613)
7,451
749
5,441
Changes in exchange rates in respect of subsidiaries
\u2014
\u2014
\u2014
(163)
\u2014
\u2014
\u2014
(163)
Cash flow hedges
\u2014
(15)
\u2014
\u2014
\u2014
\u2014
\u2014
(15)
Post-retirement benefits
\u2014
\u2014
\u2014
\u2014
(289)
\u2014
\u2014
(289)
Net income
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
352
352
Comprehensive income
\u2014
(15)
\u2014
(163)
(289)
\u2014
352
(115)
Dividend
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
(347)
(347)
Equity-settled transactions
\u2014
\u2014
\u2014
\u2014
\u2014
14
\u2014
14
Share buyback
(4)
\u2014
\u2014
\u2014
\u2014
(656)
\u2014
(660)
Addition to other reserves
\u2014
\u2014
21
\u2014
\u2014
456
(477)
\u2014
Balance at December 31, 2022
87
(34)
296
(656)
(2,902)
7,265
277
4,333
Changes in exchange rates in respect of subsidiaries
\u2014
\u2014
\u2014
(55)
\u2014
\u2014
\u2014
(55)
Cash flow hedges
\u2014
34
\u2014
\u2014
\u2014
\u2014
\u2014
34
Post-retirement benefits
\u2014
\u2014
\u2014
\u2014
(111)
\u2014
\u2014
(111)
Net income
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
442
442
Comprehensive income
\u2014
34
\u2014
(55)
(111)
\u2014
442
310
Dividend
\u2014
\u2014
\u2014
\u2014
\u2014
\u2014
(338)
(338)
Equity-settled transactions
\u2014
\u2014
\u2014
\u2014
\u2014
17
\u2014
17
Share buyback
(2)
\u2014
\u2014
\u2014
\u2014
2
\u2014
\u2014
Addition to other reserves
\u2014
\u2014
16
\u2014
\u2014
(2)
(14)
\u2014
Balance at December 31, 2023
85
\u2014
312
(711)
(3,013)
7,282
367
4,322
* As per June 2022, T\u00fcrkiye has been identified as a hyperinflationary economy. IAS 29 \"Financial Reporting in Hyperinflationary Economies\" has been applied for our activities in T\u00fcrkiye as from January 1, 2022. Refer to Note 7 Financing income and expenses in the
Consolidated financial statements for details on the financial impact from applying IAS 29. The opening balance adjustment includes a tax charge of \u20ac4 million.
The holders of common shares are entitled to receive dividends as declared from time to
time and are entitled to one vote per share at the Annual General Meeting of shareholders.
The holders of the priority shares are entitled to a dividend of 6% per share or the statutory
interest in the Netherlands, whichever is lower, plus any accrued and unpaid dividends.
They are entitled to 800 votes per share (in accordance with the 800 times higher nominal
value per share) at the Annual General Meeting of shareholders. In addition, the holders of
priority shares have the right to draw up binding lists of nominees for appointment to the
Supervisory Board and the Board of Management; amendments to the Articles of
Association are subject to the approval of the Meeting of Holders of Priority Shares.
Priority shares may only be transferred to a transferee designated by a Meeting of Holders
of Priority Shares and against payment of the par value of the shares, plus interest at the
rate of 6% per annum or the statutory interest in the Netherlands, whichever is lower, for
the period between the beginning of the year and the date of transfer. There are no
restrictions on voting rights of holders of common or priority shares. The Articles of
Association set out procedures for exercising voting rights. The Annual General Meeting of
shareholders has resolved in 2023 to authorize the Board of Management for a period of
18\u00a0months (i) to issue shares (or grant rights to shares) in the capital of the company up to a
maximum of 10% of the total number of shares outstanding (and to restrict or exclude the
pre-emptive rights to those shares) and (ii) to acquire shares in the capital of the company,
provided that the shares that will at any time be held will not exceed 10% of the issued
share capital. The issue or repurchase of shares requires the approval of the Supervisory
Board.
Unrestricted reserves at year-end
in \u20ac millions
2022
2023
Shareholders' equity at year-end
4,333
4,322
Subscribed share capital
(87)
(85)
Subsidiaries' restrictions to transfer funds
(190)
(213)
Reserve for development costs
(106)
(99)
Unrestricted reserves
3,950
3,925
In February 2022, a \u20ac500 million share buyback program was announced, which was
completed in 2022. As at December 31, 2022, a total of 7.3 million shares had been
acquired under this program, of which 3.4 million were cancelled. The remaining 3.9 million
shares were cancelled in 2023. For further details on weighted average number of shares,
refer to Note 9 Earnings per share in the Consolidated financial statements.
Of the shareholders\u2019 equity of \u20ac4.3 billion (2022: \u20ac4.3 billion), \u20ac3.9 billion (2022: \u20ac4.0 billion)
was unrestricted and available for distribution, subject to the relevant provisions of our
Articles of Association and Dutch law.
Legal reserves include the \u20ac213 million reserve relating to earnings retained by subsidiaries
after the year 1983, to the extent that there are limitations to arrange profit distributions,
and a \u20ac99 million reserve for capitalized development costs.
Dividend
Our dividend policy is to pay a stable to rising dividend.
In 2023, an interim dividend of \u20ac0.44 (2022: \u20ac0.44) per common share was paid. We
propose a 2023 final dividend of \u20ac1.54 (2022: \u20ac1.54) per common share, which would
equal a total 2023 dividend of \u20ac1.98 (2022: \u20ac1.98).
Note G: Net debt
Analysis of net debt by category
in \u20ac millions, at December 31
2022
2023
Bonds issued
2,934
2,933
Debt to subsidiaries*
100
\u2014
Long-term borrowings
3,034
2,933
Current portion of long-term borrowings
\u2014
500
Debt to credit institutions
2,399
1,574
Debt to subsidiaries*
4,068
4,276
Other
4
3
Short-term borrowings
6,471
6,353
Total borrowings
9,505
9,286
Short-term investments
(290)
(198)
Cash and cash equivalents
(643)
(615)
Net debt
8,572
8,473
* Re-presented 2022 subsidiary balances to reflect contractual arrangements rather than the expected settlement date. Refer to note
D for more details.
Multi-currency revolving credit facility
We have a multi-currency revolving credit facility of \u20ac1.3 billion which runs until 2027. This
facility does not contain financial covenants or acceleration provisions that are based on
adverse changes in ratings or material adverse change. At year-end 2023 and 2022, this
facility had not been drawn.
Long-term borrowings
At year-end 2023, bonds issued amounted to \u20ac2,933 million (2022: \u20ac2,934 million); a
specification is included in the table below.
Bonds issued
in \u20ac millions, at December 31
2022
2023
1 3/4% 2014/24 (\u20ac500 million)
499
\u2014
1 1/8% 2016/26 (\u20ac500 million)
498
499
1 1/2% 2022/28 (\u20ac600 million)
597
598
1 5/8% 2020/30 (\u20ac750 million)
745
745
2% 2022/32 (\u20ac600 million)
595
595
4% 2023/33 (\u20ac500 million)
\u2014
496
Total
2,934
2,933
For the fair value of the bonds issued, refer to Note 26 Financial risk management in the
Consolidated financial statements. We estimated the fair value of the bonds issued based
on the quoted market prices (level 1) for the same or similar issues or on the current rates
offered to us for debt with similar maturities. At year-end 2023, the fair value of the bonds
included in long-term and short-term borrowings was \u20ac3,275 million (2022: \u20ac2,633 million).
In May 2023, a bond was issued with a nominal value of \u20ac500 million, with a coupon of 4%,
maturing in 2033.
The average effective interest rate of the bonds included in long-term borrowings
outstanding at year-end 2023 was 2% (year-end 2022: 1.6%).
At year-end 2023 and 2022, none of the borrowings was secured by collateral.
Short-term borrowings
In November 2024, a bond of \u20ac500 million will mature. This bond is classified as short-term
borrowing. At year-end 2023 and 2022, none of the borrowings was secured by collateral.
At year-end 2023, our debt to credit institutions amounted to \u20ac1,574 million (2022: \u20ac2,399
million). For the fair value of the debt to credit institutions, refer to Note 26 Financial risk
management in the Consolidated financial statements. Debt to credit institutions includes
our commercial paper program. We have US dollar and euro commercial paper programs
in place, which can be used to the extent that the equivalent portion of the \u20ac1.3 billion
multi-currency revolving credit facility is not used. We had \u20ac0.8 billion commercial paper
outstanding at year-end 2023 (2022: \u20ac1.3 billion) against an average interest rate of 4.1%
(2022: 1.6%). At year-end 2023, we had short-term bank loans outstanding of \u20ac800 million
(2022: \u20ac1.1 billion) against a 3-month Euribor plus a mark-up rate (2022: 3-month Euribor
plus a mark-up rate). None of these facilities contain financial covenants.
Short-term investments
At year-end 2023, we had short-term investments outstanding for an amount of \u20ac198
million (2022: \u20ac290 million). Short-term investments almost entirely consist of time deposits,
money market funds and marketable securities with a lifetime at investment date longer
than three months but shorter than twelve months.
Cash and cash equivalents
Cash and cash equivalents are specified in the table below.
Cash and cash equivalents
in \u20ac millions, at December 31
2022
2023
Cash on hand and in banks
293
334
Deposits and money markets funds with a maturity less than
three months
350
281
Included under cash and cash equivalents in the
balance sheet
643
615
Deposits and money market funds within cash and cash equivalents almost entirely consist
of time deposits immediately convertible into known amounts of cash and with a maturity of
three months or less from the date of purchase and marketable securities that can be
redeemed immediately when called.
Note H: Other current liabilities
Other current liabilities
in \u20ac millions, at December 31
2022
2023
Payables to subsidiaries*
23
167
FX contracts
60
12
Other suppliers
2
12
Interest payable
33
46
Other liabilities
3
9
Total
121
246
* The fair value of the payables to subsidiaries approximates the book value.
Other current liabilities are expected to fall due in less than one year.
Note I: Financial instruments
At year-end 2023, Akzo Nobel N.V. had foreign exchange contracts outstanding to buy
currencies for a total of \u20ac1.3 billion (year-end 2022: \u20ac1.7 billion), while contracts to sell
currencies totaled \u20ac1.3 billion (year-end 2022: \u20ac1.5 billion). The contracts mainly relate to
US dollars, pound sterling and Thai baht and all have maturities within one year. These
contracts were partly offset by the foreign exchange contracts concluded with subsidiaries;
fair value changes are recognized in the statement of income, or recognized in other
comprehensive income in case hedge accounting is applied. For information on risk
exposure and risk management, see Note 26 Financial risk management in the
Consolidated financial statements.
Note J: Contingent liabilities
Akzo Nobel N.V. is parent of the group\u2019s fiscal unity in the Netherlands, and is therefore
liable for the liabilities of said fiscal unity as a whole.
Akzo Nobel N.V. has declared in writing that it accepts joint and several liability for
contractual debts of certain Dutch and Irish consolidated companies (Article 403 of Book 2
of the Dutch Civil Code and section 357(1) of the Irish Companies Act 2014, respectively).
These debts at year-end 2023 aggregate to \u20ac0.6 billion (2022: \u20ac0.6 billion), and are
included in the consolidated balance sheet.
Akzo Nobel N.V. has withdrawn its declarations of joint and several liability under Article 403
of Book 2 of the Dutch Civil Code for certain Dutch former Specialty Chemicals subsidiaries
divested as per October 1, 2018, and is following the procedures to terminate its residual
liability under those declarations under Article\u00a0404 of Book 2 of the Dutch Civil Code. One
objection against the termination of residual liability is still pending and AkzoNobel, Nouryon
and Nobian continue to cooperate to get this resolved.
Additionally, at year-end 2023, guarantees were issued on behalf of consolidated
companies for an amount of \u20ac0.4 billion (2022: \u20ac0.4 billion). The debts and liabilities of the
consolidated companies underlying these guarantees are included in the consolidated
balance sheet.
Akzo Nobel N.V. and two of its subsidiaries\u00a0 are currently defending 2 claims brought by
INPEX Operations Australia Pty Ltd and JKC Australia LNG Pty Ltd relating to the Ichthys
Onshore Project in Darwin, Western Australia. A trial has been listed in the Federal Court of
Australia, commencing June 17, 2024. The claims are contested and AkzoNobel denies
liability in respect of both of these claims.
Note K: Independent auditor\u2019s fees
Our independent auditor, PricewaterhouseCoopers Accountants N.V., has rendered, for the
period to which the audit of the financial statements relates, in addition to the audit of the
consolidated financial statements, mainly statutory audit services for controlled entities.
Fees PricewaterhouseCoopers Accountants N.V. 2023
2023
in \u20ac millions
In the
Netherlands
Network
outside the
Netherlands
Total
Audit of the financial statements
4.3
5.2
9.5
Other audit services
0.2
0.1
0.3
Tax services
\u2014
\u2014
\u2014
Other non-audit services
\u2014
\u2014
\u2014
Total
4.5
5.3
9.8
Fees PricewaterhouseCoopers Accountants N.V. 2022
2022
in \u20ac millions
In the
Netherlands
Network
outside the
Netherlands
Total
Audit of the financial statements
3.7
5.5
9.2
Other audit services
0.3
0.1
0.4
Tax services
\u2014
\u2014
\u2014
Other non-audit services
\u2014
\u2014
\u2014
Total
4.0
5.6
9.6
Amsterdam, February 26, 2024
", "dimensions": { "concept": "ifrs-full:DisclosureOfConsolidatedAndSeparateFinancialStatementsExplanatory", "language": "en", "entity": "scheme:724500XYIJUGXAA5QD70", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } } } }