Currency* | ||||||
Balance sheet | Statement of income | |||||
2024 | 2025 | % | 2024 | 2025 | % | |
US dollar | 1.04 | 1.17 | 12.5 | 1.08 | 1.13 | 4.6 |
Pound sterling | 0.83 | 0.87 | 4.8 | 0.85 | 0.86 | 1.2 |
Chinese yuan | 7.62 | 8.19 | 7.5 | 7.80 | 8.12 | 4.1 |
CPI at December 31 | |||
Country | 2023 | 2024 | 2025 |
Argentina | 3,533 | 7,694 | 10,121 |
T\u00fcrkiye | 1,859 | 2,685 | 3,514 |
Balance sheet exchange rates* at December 31 | |||
Currency | 2023 | 2024 | 2025 |
Argentinian peso | 894.91 | 1,072.96 | 1,702.53 |
Turkish lira | 32.73 | 36.80 | 50.38 |
Currency* | ||||||
Balance sheet | Statement of income | |||||
2024 | 2025 | % | 2024 | 2025 | % | |
US dollar | 1.04 | 1.17 | 12.5 | 1.08 | 1.13 | 4.6 |
Pound sterling | 0.83 | 0.87 | 4.8 | 0.85 | 0.86 | 1.2 |
Chinese yuan | 7.62 | 8.19 | 7.5 | 7.80 | 8.12 | 4.1 |
CPI at December 31 | |||
Country | 2023 | 2024 | 2025 |
Argentina | 3,533 | 7,694 | 10,121 |
T\u00fcrkiye | 1,859 | 2,685 | 3,514 |
Balance sheet exchange rates* at December 31 | |||
Currency | 2023 | 2024 | 2025 |
Argentinian peso | 894.91 | 1,072.96 | 1,702.53 |
Turkish lira | 32.73 | 36.80 | 50.38 |
Currency* | ||||||
Balance sheet | Statement of income | |||||
2024 | 2025 | % | 2024 | 2025 | % | |
US dollar | 1.04 | 1.17 | 12.5 | 1.08 | 1.13 | 4.6 |
Pound sterling | 0.83 | 0.87 | 4.8 | 0.85 | 0.86 | 1.2 |
Chinese yuan | 7.62 | 8.19 | 7.5 | 7.80 | 8.12 | 4.1 |
CPI at December 31 | |||
Country | 2023 | 2024 | 2025 |
Argentina | 3,533 | 7,694 | 10,121 |
T\u00fcrkiye | 1,859 | 2,685 | 3,514 |
Balance sheet exchange rates* at December 31 | |||
Currency | 2023 | 2024 | 2025 |
Argentinian peso | 894.91 | 1,072.96 | 1,702.53 |
Turkish lira | 32.73 | 36.80 | 50.38 |
Accounting policies | ||
Upon loss of control over a subsidiary, its assets, liabilities, and non\u2011controlling interests are derecognized. At the same time, any cumulative translation adjustments related to this subsidiary are reclassified to the statement of profit or loss. The divestment result includes the consideration received, minus the carrying amount of the net assets derecognized (including non\u2011controlling interests) and any directly attributable costs, and the true up to fair value of any remaining investments. The subsidiary\u2019s results are consolidated up to, but not after, the date of loss of control. | ||
Material subsidiaries related to continuing operations | |
Legal entity | Principal place of business |
Akzo Nobel Coatings Inc. | United States |
Imperial Chemical Industries Limited | United Kingdom |
Akzo Nobel Decorative Coatings B.V. | The Netherlands |
Akzo Nobel Coatings S.P.A. | Italy |
Akzo Nobel Ltda | Brazil |
Akzo Nobel Paints (Shanghai) Limited | China |
International Paint LLC | United States |
Deal result Akzo Nobel India Limited divestment | |
in \u20ac millions | 2025 |
Consideration for shares sold | 887 |
Contingent consideration | 20 |
Recycling of cash flow hedge reserve to P&L | 15 |
Derecognition of asets and liabilities (including non-controlling interest) | (137) |
Cost allocated to the deal, including recycling of cumulative translation to the P&L | (130) |
Pre-tax deal result | 655 |
Income tax related to the sale | (100) |
Total deal result Akzo Nobel India Limited divestment | 555 |
Cash inflow from Akzo Nobel India Limited divestment | |
in \u20ac millions | 2025 |
Consideration for shares sold (including shares sold before and after the transaction with JSW) | 887 |
Cash and cash equivalents derecognized on disposal | (28) |
Income tax paid on divestment proceeds | (98) |
Proceeds from cash flow hedge | 15 |
Total cash inflow from Akzo Nobel India Limited divestment | 776 |
Balance sheet Akzo Nobel India Limited at divestment date | |
in \u20ac millions | December 10, 2025 |
Intangible assets | 55 |
Property, plant and equipment | 49 |
Other non-current assets | 35 |
Inventories | 54 |
Trade receivables | 56 |
Other current assets | 67 |
Non-current liabilities | (20) |
Trade payables | (90) |
Other current liabilities | (21) |
Non-controlling interest | (48) |
Net assets and liabilities Akzo Nobel India Limited divested | 137 |
Material subsidiaries related to continuing operations | |
Legal entity | Principal place of business |
Akzo Nobel Coatings Inc. | United States |
Imperial Chemical Industries Limited | United Kingdom |
Akzo Nobel Decorative Coatings B.V. | The Netherlands |
Akzo Nobel Coatings S.P.A. | Italy |
Akzo Nobel Ltda | Brazil |
Akzo Nobel Paints (Shanghai) Limited | China |
International Paint LLC | United States |
Deal result Akzo Nobel India Limited divestment | |
in \u20ac millions | 2025 |
Consideration for shares sold | 887 |
Contingent consideration | 20 |
Recycling of cash flow hedge reserve to P&L | 15 |
Derecognition of asets and liabilities (including non-controlling interest) | (137) |
Cost allocated to the deal, including recycling of cumulative translation to the P&L | (130) |
Pre-tax deal result | 655 |
Income tax related to the sale | (100) |
Total deal result Akzo Nobel India Limited divestment | 555 |
Cash inflow from Akzo Nobel India Limited divestment | |
in \u20ac millions | 2025 |
Consideration for shares sold (including shares sold before and after the transaction with JSW) | 887 |
Cash and cash equivalents derecognized on disposal | (28) |
Income tax paid on divestment proceeds | (98) |
Proceeds from cash flow hedge | 15 |
Total cash inflow from Akzo Nobel India Limited divestment | 776 |
Balance sheet Akzo Nobel India Limited at divestment date | |
in \u20ac millions | December 10, 2025 |
Intangible assets | 55 |
Property, plant and equipment | 49 |
Other non-current assets | 35 |
Inventories | 54 |
Trade receivables | 56 |
Other current assets | 67 |
Non-current liabilities | (20) |
Trade payables | (90) |
Other current liabilities | (21) |
Non-controlling interest | (48) |
Net assets and liabilities Akzo Nobel India Limited divested | 137 |
Accounting policies | ||
We determine and present operating segments based on the information that is provided to the Executive Committee, our chief operating decision-maker during 2025, 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. | ||
Information per reportable segment | ||||||||||||
Revenue (third parties) | Cost of sales | Gross profit | Operating income | Identified Items | Adjusted Operating income | |||||||
in \u20ac millions | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 |
Decorative Paints | 4,301 | 4,090 | (2,422) | (2,282) | 1,879 | 1,808 | 405 | 401 | (80) | (102) | 485 | 503 |
Performance Coatings | 6,410 | 6,068 | (3,932) | (3,802) | 2,478 | 2,266 | 679 | 300 | (56) | (365) | 735 | 665 |
Corporate and other | \u2014 | \u2014 | (20) | (25) | (20) | (25) | (167) | 463 | (60) | 550 | (107) | (87) |
Total | 10,711 | 10,158 | (6,374) | (6,109) | 4,337 | 4,049 | 917 | 1,164 | (196) | 83 | 1,113 | 1,081 |
Information per reportable segment | ||||||||||||
Organic sales growth* | Adjusted EBITDA | Adjusted EBITDA margin %* | Amortization and depreciation | Research and development expenses | Employee benefits | |||||||
in \u20ac millions | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 |
Decorative Paints | 1% | \u2014% | 635 | 648 | 14.8 | 15.8 | (151) | (153) | (74) | (70) | (640) | (644) |
Performance Coatings | 2% | \u2014% | 913 | 843 | 14.2 | 13.9 | (183) | (185) | (217) | (204) | (1,203) | (1,162) |
Corporate and other | (70) | (47) | (37) | (40) | (5) | \u2014 | (320) | (307) | ||||
Total | 2% | \u2014% | 1,478 | 1,444 | 13.8 | 14.2 | (371) | (378) | (296) | (274) | (2,163) | (2,113) |
* Organic sales growth, Adjusted gross margin and Adjusted EBITDA margin for Corporate and other is not shown, as this is not meaningful. |
Information per reportable segment | ||||||||||
Invested capital | Total assets | Total liabilities | Capital expenditures | ROI%* | ||||||
in \u20ac millions | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 |
Decorative Paints | 3,850 | 3,302 | 5,770 | 5,516 | 1,302 | 1,480 | 87 | 85 | 12.4 | 14.3 |
Performance Coatings | 3,679 | 3,553 | 6,224 | 5,954 | 2,156 | 2,245 | 197 | 207 | 19.5 | 18.5 |
Corporate and other | 745 | 738 | 2,255 | 2,482 | 5,975 | 5,405 | 22 | 17 | ||
Total | 8,274 | 7,593 | 14,249 | 13,952 | 9,433 | 9,130 | 306 | 309 | 13.3 | 13.5 |
* ROI%\u00a0 for Corporate and other is not shown, as this is not meaningful. |
Regional information | ||||||||
Revenue by region of destination | Intangible assets and property, plant\u00a0and\u00a0equipment | Invested capital | Capital expenditures | |||||
in \u20ac millions | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 |
The Netherlands | 329 | 330 | 1,201 | 1,175 | 1,783 | 1,696 | 39 | 29 |
Other EMEA countries | 4,727 | 4,556 | 1,770 | 1,778 | 2,764 | 2,659 | 121 | 143 |
North Asia | 1,668 | 1,592 | 1,184 | 1,088 | 1,030 | 876 | 34 | 33 |
South Asia Pacific | 1,311 | 1,206 | 554 | 396 | 720 | 520 | 37 | 29 |
North America | 1,363 | 1,264 | 687 | 637 | 962 | 909 | 55 | 54 |
Latin America | 1,313 | 1,210 | 775 | 763 | 1,015 | 933 | 20 | 21 |
Total | 10,711 | 10,158 | 6,171 | 5,837 | 8,274 | 7,593 | 306 | 309 |
Operating income to adjusted EBITDA | 2024 | 2025 | ||||||
in \u20ac millions | Decorative Paints | Perf. Coatings | Other activities | Total | Decorative Paints | Perf. Coatings | Other activities | Total |
Operating income | 405 | 679 | (167) | 917 | 401 | 300 | 463 | 1,164 |
Restructuring-related costs | (51) | (48) | (45) | (144) | (93) | (88) | (19) | (200) |
Acquisition/divestment-related results | (12) | (2) | (9) | (23) | (2) | \u2014 | 618 | 616 |
Hyperinflation | (15) | (4) | \u2014 | (19) | (3) | (1) | \u2014 | (4) |
Legal & environmental | (1) | \u2014 | (6) | (2) | \u2014 | (272) | (29) | (301) |
Pension curtailments and buyouts | \u2014 | \u2014 | \u2014 | \u2014 | (1) | (3) | (6) | (10) |
Other | (1) | (2) | \u2014 | (8) | (3) | (1) | (14) | (18) |
Total identified items | (80) | (56) | (60) | (196) | (102) | (365) | 550 | 83 |
Adjusted operating income | 485 | 735 | (107) | 1,113 | 503 | 665 | (87) | 1,081 |
Depreciation and amortization* | (150) | (178) | (37) | (365) | (145) | (178) | (40) | (363) |
Adjusted EBITDA | 635 | 913 | (70) | 1,478 | 648 | 843 | (47) | 1,444 |
* Excluding identified items. |
Adjusted EBITDA margin | ||
in \u20ac millions | 2024 | 2025 |
Revenue from third parties | ||
Decorative Paints | 4,301 | 4,090 |
Performance Coatings | 6,410 | 6,068 |
Corporate and other | \u2014 | \u2014 |
Total | 10,711 | 10,158 |
Adjusted EBITDA | ||
Decorative Paints | 635 | 648 |
Performance Coatings | 913 | 843 |
Corporate and other | (70) | (47) |
Total | 1,478 | 1,444 |
Adjusted EBITDA margin% | ||
Decorative Paints | 14.8 | 15.8 |
Performance Coatings | 14.2 | 13.9 |
Corporate and other* | ||
Total | 13.8 | 14.2 |
*Adjusted EBITDA margin for Corporate and other is not shown, as this is not meaningful. |
ROI% | ||
in \u20ac millions | 2024 | 2025 |
Average invested capital | ||
Decorative Paints | 3,921 | 3,525 |
Performance Coatings | 3,773 | 3,595 |
Corporate and other | 656 | 896 |
Total | 8,350 | 8,016 |
Adjusted operating income | ||
Decorative Paints | 485 | 503 |
Performance Coatings | 735 | 665 |
Corporate and other | (107) | (87) |
Total | 1,113 | 1,081 |
ROI% | ||
Decorative Paints | 12.4 | 14.3 |
Performance Coatings | 19.5 | 18.5 |
Corporate and other* | ||
Total | 13.3 | 13.5 |
Invested capital | ||||||||
2024 | 2025 | |||||||
in \u20ac millions | Decorative Paints | Performance Coatings | Corporate and Other | Total | Decorative Paints | Performance Coatings | Corporate and Other | Total |
Intangible assets | 2,445 | 1,514 | 90 | 4,049 | 2,289 | 1,426 | 83 | 3,798 |
Property, plant and equipment | 819 | 1,270 | 33 | 2,122 | 723 | 1,286 | 30 | 2,039 |
Right-of-use assets | 169 | 87 | 62 | 318 | 145 | 98 | 51 | 294 |
Deferred tax assets | 71 | 98 | 253 | 422 | 49 | 86 | 266 | 401 |
Financial non-current assets (excluding pension assets) | 43 | 141 | 161 | 345 | 29 | 132 | 75 | 236 |
Working capital* | 544 | 616 | 349 | 1,509 | 306 | 585 | 421 | 1,312 |
Deferred tax liabilities | (241) | (47) | (203) | (491) | (239) | (60) | (188) | (487) |
Invested capital | 3,850 | 3,679 | 745 | 8,274 | 3,302 | 3,553 | 738 | 7,593 |
Organic sales development 2025 | |||||||
in % versus 2024 | Volume | Price/mix | Organic sales | Acq./div. | FX | Other | Revenue |
Decorative Paints | (1)% | 1% | \u2014% | \u2014% | (4)% | (1)% | (5)% |
Performance Coatings | (2)% | 2% | \u2014% | \u2014% | (4)% | (1)% | (5)% |
Total | (2)% | 2% | \u2014% | \u2014% | (4)% | (1)% | (5)% |
Organic sales development 2024 | |||||||
in % versus 2023 | Volume | Price/mix | Organic sales | Acq./div. | FX | Other | Revenue |
Decorative Paints | \u2014% | 1% | 1% | 1% | (1)% | (1)% | \u2014% |
Performance Coatings | 2% | \u2014% | 2% | \u2014% | (1)% | \u2014% | 1% |
Total | 1% | 1% | 2% | \u2014% | (1)% | (1)% | \u2014% |
Capital expenditures | ||||||
2024 | 2025 | |||||
in \u20ac millions | Investments in PP&E | Investments in Intangible assets | Capital expenditures | Investments in PP&E | Investments in Intangible assets | Capital expenditures |
Decorative Paints | 87 | \u2014 | 87 | 85 | \u2014 | 85 |
Performance Coatings | 190 | 7 | 197 | 203 | 4 | 207 |
Corporate and other | 5 | 17 | 22 | 8 | 9 | 17 |
Total | 282 | 24 | 306 | 296 | 13 | 309 |
Accounting policies | ||
Sale of goods AkzoNobel\u2019s main business consists of 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\u2019s 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. Revenue is recognized net of rebates, discounts and similar allowances, and net of sales tax. | ||
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. | ||
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 purchased by the customer. | ||
Services AkzoNobel provides certain training, technical and/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. |
Revenue disaggregation | ||||||
Decorative Paints | Performance Coatings | Total | ||||
in \u20ac millions | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 |
Primary geographical markets - revenue from third parties | ||||||
The Netherlands | 222 | 220 | 107 | 110 | 329 | 330 |
Other EMEA countries | 2,240 | 2,192 | 2,487 | 2,364 | 4,727 | 4,556 |
North Asia | 459 | 426 | 1,209 | 1,166 | 1,668 | 1,592 |
South Asia Pacific | 555 | 494 | 756 | 712 | 1,311 | 1,206 |
North America | \u2014 | \u2014 | 1,363 | 1,264 | 1,363 | 1,264 |
Latin America | 825 | 758 | 488 | 452 | 1,313 | 1,210 |
Total | 4,301 | 4,090 | 6,410 | 6,068 | 10,711 | 10,158 |
Major goods/service lines - revenue from third parties | ||||||
Decorative Paints Europe, Middle East and Africa | 2,462 | 2,412 | \u2014 | \u2014 | 2,462 | 2,412 |
Decorative Paints Latin America | 825 | 758 | \u2014 | \u2014 | 825 | 758 |
Decorative Paints China and North Asia | 459 | 426 | \u2014 | \u2014 | 459 | 426 |
Decorative Paints South East and South Asia | 555 | 494 | \u2014 | \u2014 | 555 | 494 |
Powder Coatings | \u2014 | \u2014 | 1,365 | 1,280 | 1,365 | 1,280 |
Marine and Protective Coatings | \u2014 | \u2014 | 1,575 | 1,570 | 1,575 | 1,570 |
Automotive and Specialty Coatings | \u2014 | \u2014 | 1,434 | 1,347 | 1,434 | 1,347 |
Industrial Coatings | \u2014 | \u2014 | 2,036 | 1,871 | 2,036 | 1,871 |
Total | 4,301 | 4,090 | 6,410 | 6,068 | 10,711 | 10,158 |
Timing of revenue recognition - revenue from third parties | ||||||
Goods transferred at a point in time | 4,237 | 4,027 | 6,196 | 5,850 | 10,433 | 9,877 |
Services transferred over time | 64 | 63 | 214 | 218 | 278 | 281 |
Total | 4,301 | 4,090 | 6,410 | 6,068 | 10,711 | 10,158 |
Accounting policies | ||
Operating income is the income generated from our core business activities, before financing income and expenses, results from associates and income tax. Operating income includes identified items. | ||
Cost of sales Cost of sales comprises the costs of purchase, conversion and other costs incurred to bring the products sold into the condition and location to be ready for sale. This includes the cost of raw materials, labor, warehousing of raw materials, production overhead and changes in inventory provisions for raw materials and semi-finished goods. | ||
Selling and distribution expenses \u00a0 \u00a0 \u00a0 \u00a0 Selling and distribution expenses comprise the costs associated with promoting and selling products or services, as well as delivering them to customers. These costs include sales, marketing, distribution, warehousing of finished goods, supply chain management costs and changes in inventory provisions related to finished goods. | ||
General and administrative expenses General and administrative expenses include costs for support functions and other general and administrative expenses. | ||
Research and development expenses Research and development expenses include costs incurred in the process of developing new products, or improving existing products. Development costs are capitalized as an internally generated intangible asset, if it is probable that sufficient future economic benefits will be generated by the development. | ||
Other results Other results include items not considered to be normal operational items (from ordinary activities); these costs include gains and losses that cannot be reported in any of the categories above, amongst others impairment of goodwill, significant additions to provisions, and results on certain divestments. |
Costs by nature 2025 | ||||||
in \u20ac millions | Employee benefits | Amortization | Depreciation | Purchases and other costs | Result on disposal of business (India) | Total |
Cost of sales | (637) | (1) | (169) | (5,302) | \u2014 | (6,109) |
Selling and distribution expenses | (1,004) | (50) | (98) | (1,200) | \u2014 | (2,352) |
General and administrative expenses | (282) | (22) | (17) | (328) | \u2014 | (649) |
Research and development expenses | (190) | (5) | (16) | (63) | \u2014 | (274) |
Other results* | \u2014 | \u2014 | \u2014 | (265) | 655 | 390 |
Total | (2,113) | (78) | (300) | (7,158) | 655 | (8,994) |
*Purchases and other costs in Other results contain a \u20ac272 million charge related to the provision made for Project Ichthys. The result on disposal of business (India) has been included to allow reconciliation of total costs with consolidated statement of income. |
Costs by nature 2024 | |||||
in \u20ac millions | Employee benefits | Amortization | Depreciation | Purchases and other costs | Total |
Cost of sales | (583) | (1) | (166) | (5,624) | (6,374) |
Selling and distribution expenses | (1,078) | (51) | (94) | (1,240) | (2,463) |
General and administrative expenses | (293) | (21) | (18) | (323) | (655) |
Research and development expenses | (209) | (5) | (15) | (67) | (296) |
Other results | \u2014 | \u2014 | \u2014 | (6) | (6) |
Total | (2,163) | (78) | (293) | (7,260) | (9,794) |
Costs by nature 2025 | ||||||
in \u20ac millions | Employee benefits | Amortization | Depreciation | Purchases and other costs | Result on disposal of business (India) | Total |
Cost of sales | (637) | (1) | (169) | (5,302) | \u2014 | (6,109) |
Selling and distribution expenses | (1,004) | (50) | (98) | (1,200) | \u2014 | (2,352) |
General and administrative expenses | (282) | (22) | (17) | (328) | \u2014 | (649) |
Research and development expenses | (190) | (5) | (16) | (63) | \u2014 | (274) |
Other results* | \u2014 | \u2014 | \u2014 | (265) | 655 | 390 |
Total | (2,113) | (78) | (300) | (7,158) | 655 | (8,994) |
*Purchases and other costs in Other results contain a \u20ac272 million charge related to the provision made for Project Ichthys. The result on disposal of business (India) has been included to allow reconciliation of total costs with consolidated statement of income. |
Costs by nature 2024 | |||||
in \u20ac millions | Employee benefits | Amortization | Depreciation | Purchases and other costs | Total |
Cost of sales | (583) | (1) | (166) | (5,624) | (6,374) |
Selling and distribution expenses | (1,078) | (51) | (94) | (1,240) | (2,463) |
General and administrative expenses | (293) | (21) | (18) | (323) | (655) |
Research and development expenses | (209) | (5) | (15) | (67) | (296) |
Other results | \u2014 | \u2014 | \u2014 | (6) | (6) |
Total | (2,163) | (78) | (293) | (7,260) | (9,794) |
Costs by nature 2025 | ||||||
in \u20ac millions | Employee benefits | Amortization | Depreciation | Purchases and other costs | Result on disposal of business (India) | Total |
Cost of sales | (637) | (1) | (169) | (5,302) | \u2014 | (6,109) |
Selling and distribution expenses | (1,004) | (50) | (98) | (1,200) | \u2014 | (2,352) |
General and administrative expenses | (282) | (22) | (17) | (328) | \u2014 | (649) |
Research and development expenses | (190) | (5) | (16) | (63) | \u2014 | (274) |
Other results* | \u2014 | \u2014 | \u2014 | (265) | 655 | 390 |
Total | (2,113) | (78) | (300) | (7,158) | 655 | (8,994) |
*Purchases and other costs in Other results contain a \u20ac272 million charge related to the provision made for Project Ichthys. The result on disposal of business (India) has been included to allow reconciliation of total costs with consolidated statement of income. |
Costs by nature 2024 | |||||
in \u20ac millions | Employee benefits | Amortization | Depreciation | Purchases and other costs | Total |
Cost of sales | (583) | (1) | (166) | (5,624) | (6,374) |
Selling and distribution expenses | (1,078) | (51) | (94) | (1,240) | (2,463) |
General and administrative expenses | (293) | (21) | (18) | (323) | (655) |
Research and development expenses | (209) | (5) | (15) | (67) | (296) |
Other results | \u2014 | \u2014 | \u2014 | (6) | (6) |
Total | (2,163) | (78) | (293) | (7,260) | (9,794) |
Accounting policies | ||
Salaries and wages are recognized in the statement of profit and loss in the period in which the employee has rendered services to AkzoNobel. The accounting policies for post-retirement costs are described in Note 18 Post-retirement benefit | ||
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\u2019 equity. Amortization is accelerated in the event of earlier vesting or settlement. | ||
Salaries, wages and other employee benefits in operating income | ||
in \u20ac millions | 2024 | 2025 |
Salaries and wages | (1,702) | (1,633) |
Post-retirement cost | (145) | (146) |
Other social charges | (316) | (334) |
Total | (2,163) | (2,113) |
Fair value performance-related shares in \u20ac | ||||
Series | Opening share price per: | Fair Value5 | Share price | Dividend yield |
2022 - 2024 | February 23, 2022 | 88.28 | 88.28 | NA |
2022 - 2024 | October 3, 20221 | 57.70 | 57.70 | NA |
2023 - 2025 | February 23, 2023 | 69.26 | 69.26 | NA |
2023 - 2025 | July 3, 20232 | 74.78 | 74.78 | NA |
2023 - 2025 | January 2, 20242 | 74.82 | 74.82 | NA |
2024 - 2026 | April 2, 2024 | 63.75 | 69.52 | 2.85% |
2024 - 2026 | April 25, 20243 | 62.80 | 62.80 | NA |
2025 - 2027 | March 17, 2025 | 56.33 | 62.08 | 3.19% |
2025 - 2027 | April 25, 2025 | 56.20 | 56.20 | NA |
2025 - 2027 | December 10, 20254 | 53.80 | 53.80 | NA |
Share plans of AkzoNobel employees | |||||||||||||
Share plan | Performance/ Vesting period | Award date | Vesting date | End of holding period | Balance at January 1, 2025 | Awarded in 2025 | Vested in 2025 | Forfeited in 2025 | Dividend in 2025 | Subject to performance condition | Unvested in 2025 | Subject to holding period | Balance at December 31, 2025 |
2022 \u2013 2024 Restricted Share Plan E* | 3 years | 4/1/2022 | 4/1/2025 | 4/1/2026 | 123,166 | \u2014 | (123,008) | (158) | \u2014 | NA | \u2014 | 123,008 | \u2014 |
2022 \u2013 2024 Performance Share Plan | 3 years | 1/1/2022 | 1/1/2025 | 1/1/2027 | 71,939 | \u2014 | (71,939) | \u2014 | \u2014 | \u2014 | \u2014 | 71,939 | \u2014 |
2022 \u2013 2024 Restricted Share Plan NE* | 3 years | 4/1/2022 | 4/1/2025 | NA | 40,756 | \u2014 | (40,366) | (390) | \u2014 | NA | \u2014 | \u2014 | \u2014 |
2023 \u2013 2025 Restricted Share Plan E* | 3 years | 4/1/2023 | 4/1/2026 | 4/1/2027 | 192,158 | \u2014 | (27,561) | (14,288) | \u2014 | NA | 150,309 | 150,309 | 150,309 |
2023 \u2013 2025 Performance Share Plan | 3 years | 1/1/2023 | 1/1/2026 | 1/1/2028 | 116,841 | 21,556 | \u2014 | (2,949) | 3,779 | 139,227 | 139,227 | 139,227 | 139,227 |
2023 \u2013 2025 Restricted Share Plan NE* | 3 years | 4/1/2023 | 4/1/2026 | NA | 58,570 | \u2014 | (3,750) | (2,672) | \u2014 | NA | 52,148 | \u2014 | 52,148 |
2024 \u2013 2026 Performance Share Plan E* | 3 years | 4/2/2024 | 4/2/2027 | NA | 181,399 | \u2014 | (12,767) | (22,525) | \u2014 | 146,107 | 146,107 | \u2014 | 146,107 |
2024 \u2013 2026 Performance Share Plan | 3 years | 1/1/2024 | 1/1/2027 | 1/1/2029 | 118,062 | \u2014 | \u2014 | (9,307) | 3,485 | 112,240 | 112,240 | 112,240 | 112,240 |
2024 \u2013 2026 Restricted Share Plan NE* | 3 years | 4/2/2024 | 4/2/2027 | NA | 43,220 | \u2014 | (717) | (2,393) | \u2014 | NA | 40,110 | \u2014 | 40,110 |
2025 \u2013 2027 Performance Share Plan E* | 3 years | 4/1/2025 | 4/1/2028 | NA | \u2014 | 218,648 | (1,991) | (24,149) | \u2014 | 192,508 | 192,508 | \u2014 | 192,508 |
2025 \u2013 2027 Performance Share Plan | 3 years | 1/1/2025 | 1/1/2028 | 1/1/2030 | \u2014 | 145,911 | \u2014 | (10,655) | 4,720 | 139,976 | 139,976 | 139,976 | 139,976 |
2025 \u2013 2027 Restricted Share Plan NE* | 3 years | 4/1/2025 | 4/1/2028 | NA | \u2014 | 48,670 | \u2014 | (780) | \u2014 | NA | 47,890 | \u2014 | 47,890 |
Total | 946,111 | 434,785 | (282,099) | (90,266) | 11,984 | 730,058 | 1,020,515 | 736,699 | 1,020,515 |
Average number of employees during the year total AkzoNobel | ||
In FTEs | 2024 | 2025 |
Decorative Paints | 14,100 | 13,000 |
Performance Coatings | 17,800 | 17,200 |
Corporate and other | 3,500 | 3,300 |
Total | 35,400 | 33,500 |
Average number of employees during the year in the Netherlands | ||
In FTEs | 2024 | 2025 |
Decorative Paints | 600 | 500 |
Performance Coatings | 1,100 | 1,100 |
Corporate and other | 700 | 600 |
Total | 2,400 | 2,200 |
Number of employees at year-end | ||
In FTEs | 2024 | 2025 |
Decorative Paints | 13,600 | 11,800 |
Performance Coatings | 17,500 | 16,500 |
Corporate and other | 3,500 | 3,200 |
Total | 34,600 | 31,500 |
Accounting policies | ||
Defined contribution plans Contributions to defined contribution plans are recognized in the statement of income as incurred. Defined benefit plans 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, including healthcare and welfare plans, 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 actuarial calculations result in a net future benefit to AkzoNobel, recognition of the 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 upon settlement of the plan liabilities. The effects of these so-called asset ceiling restrictions and any changes therein are recognized in Other comprehensive income.\u00a0 | ||
Actuarial gains and losses, which arise upon remeasurement of our plans assets and 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 in the statement of income 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. |
Significant accounting estimates and judgments | ||
In order to measure defined benefit obligations, key actuarial assumptions are required. These key assumptions are: \u2022 Discount rate \u2022 Price inflation \u2022 Pension increases \u2022 Mortality/life expectancy These assumptions are determined with the assistance of external actuaries using relevant market data, such as corporate bond yields and yield curves to set the discount rate, published inflation expectations to derive price and salary growth, and standard mortality tables to estimate life expectancy and pension payment periods. |
DBO at funded and unfunded pension plans* | ||
in \u20ac millions, at December 31 | 2024 | 2025 |
Wholly or partly funded plans | 8,620 | 7,422 |
Unfunded plans | 243 | 219 |
Total | 8,863 | 7,641 |
Reconciliation to the balance sheet | ||||||
2024 | 2025 | |||||
in \u20ac millions | DBO | Plan assets | Total | DBO | Plan assets | Total |
Balance at the beginning of the period | (9,510) | 10,066 | 556 | (8,956) | 9,479 | 523 |
Statement of income | ||||||
Current service cost | (30) | \u2014 | (30) | (28) | \u2014 | (28) |
Past service cost | (1) | \u2014 | (1) | (3) | \u2014 | (3) |
Buy-out costs | \u2014 | \u2014 | \u2014 | (7) | \u2014 | (7) |
Settlements | 2 | (2) | \u2014 | 353 | (353) | \u2014 |
Net interest (charge)/income on net defined benefit (liability)/asset | (427) | 454 | 27 | (441) | 473 | 32 |
Cost recognized in statement of income | (456) | 452 | (4) | (126) | 120 | (6) |
Remeasurements recognized in Other comprehensive income | ||||||
Actuarial (loss)/gain due to liability experience | (14) | \u2014 | (14) | 11 | \u2014 | 11 |
Actuarial (loss)/gain due to liability financial assumption changes | 618 | \u2014 | 618 | 130 | \u2014 | 130 |
Actuarial (loss)/gain due to liability demographic assumption changes | 16 | \u2014 | 16 | (36) | \u2014 | (36) |
Return on plan assets (less than)/greater than discount rate | \u2014 | (742) | (742) | \u2014 | (100) | (100) |
Remeasurement effects recognized in Other comprehensive income | 620 | (742) | (122) | 105 | (100) | 5 |
Cash flow | ||||||
Employer contributions | \u2014 | 48 | 48 | \u2014 | 48 | 48 |
Employee contributions | (2) | 2 | \u2014 | (2) | 2 | \u2014 |
Benefits and administration costs paid from plan assets | 799 | (799) | \u2014 | 793 | (793) | \u2014 |
Net cash flow | 797 | (749) | 48 | 791 | (743) | 48 |
Other | ||||||
Acquisitions/divestments/transfers | \u2014 | \u2014 | \u2014 | 39 | (30) | 9 |
Changes in exchange rates | (407) | 452 | 45 | 424 | (452) | (28) |
Total other | (407) | 452 | 45 | 463 | (482) | (19) |
Balance at the end of the period | (8,956) | 9,479 | 523 | (7,723) | 8,274 | 551 |
Asset restriction | (18) | (8) | ||||
Net balance sheet position | 505 | 543 | ||||
Presentation of Net balance sheet position | ||||||
Financial non-current assets | 929 | 891 | ||||
Post-retirement benefit provisions | (381) | (300) | ||||
Current portion of provisions | (43) | (48) | ||||
Net balance sheet position | 505 | 543 |
Plan assets | ||||
2024 | 2025 | |||
in \u20ac millions, at December 31 | Total | % of total | Total | % of total |
Equities | 189 | 2 | 171 | 2 |
Debt - fixed interest government bonds | 396 | 4 | 396 | 5 |
Debt - index-linked government bonds | 1,140 | 12 | 1,060 | 13 |
Debt - corporate and other bonds | 1,531 | 16 | 1,418 | 17 |
UK buy-in annuity policies | 5,735 | 61 | 4,785 | 58 |
Cash and cash equivalents | 143 | 2 | 111 | 1 |
Other | 345 | 3 | 333 | 4 |
Total | 9,479 | 100 | 8,274 | 100 |
Cash flows | ||||
Pensions | Other post- retirement benefits | |||
in \u20ac millions | 2025 | 2026 | 2025 | 2026 |
Regular contributions | 36 | 36 | 10 | 9 |
Top-ups | 4 | 5 | \u2014 | \u2014 |
Total | 40 | 41 | 10 | 9 |
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 | 188 | 108 | 40 | 3 | 339 |
Price inflation: 0.5% increase* | 117 | 65 | 21 | \u2014 | 203 |
Pension increases: 0.5% increase | 165 | 98 | 22 | \u2014 | 285 |
Life expectancy: one year increase from age 60 | 253 | 79 | 24 | 3 | 359 |
Maturity information | |||||
Weighted average duration of DBO (years) | 7.8 | 10.3 | 10.7 | 7.9 | 8.8 |
Future benefit payments | ||
in \u20ac millions | Pensions | Other post- retirement benefits |
2026 | 737 | 9 |
2027 | 740 | 8 |
2028 | 744 | 8 |
2029 | 750 | 8 |
2030 | 758 | 7 |
2031-2035 | 3,869 | 33 |
Key figures and assumptions by plan | ||||||||||
2024 | 2025 | |||||||||
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 | 60% | 25% | 14% | 1% | 100% | 62% | 27% | 10% | 1% | 100% |
Defined Benefit Obligation at year-end | (5,395) | (2,243) | (1,225) | (93) | (8,956) | (4,817) | (2,073) | (751) | (82) | (7,723) |
Fair value of plan assets at year-end | 5,721 | 2,814 | 944 | \u2014 | 9,479 | 5,123 | 2,630 | 521 | \u2014 | 8,274 |
Plan funded status | 326 | 571 | (281) | (93) | 523 | 306 | 557 | (230) | (82) | 551 |
Restriction on asset recognition | \u2014 | \u2014 | (18) | \u2014 | (18) | \u2014 | \u2014 | (8) | \u2014 | (8) |
Amounts recognized on the balance sheet | 326 | 571 | (299) | (93) | 505 | 306 | 557 | (238) | (82) | 543 |
Percentage of total current service cost | 3% | 33% | 64% | \u2014 | 100% | 4% | 37% | 59% | \u2014 | 100% |
Current service cost | (1) | (10) | (19) | \u2014 | (30) | (1) | (10) | (17) | \u2014 | (28) |
Employer contributions | \u2014 | 1 | 37 | 10 | 48 | \u2014 | 1 | 38 | 9 | 48 |
Discount rate | 5.4% | 5.5% | 4.7% | 6.1% | 5.3% | 5.3% | 5.5% | 4.6% | 6.3% | 5.3% |
Rate of compensation increase | 1.5% | 1.4% | 2.2% | \u2014 | 1.5% | 1.4% | 1.4% | 2.4% | \u2014 | 1.5% |
Inflation | 3.3% | 3.2% | 2.3% | \u2014 | 3.1% | 2.8% | 2.8% | 1.9% | \u2014 | 2.7% |
Pension increases | 3.0% | 2.7% | 2.2% | \u2014 | 2.8% | 2.7% | 2.4% | 1.8% | \u2014 | 2.6% |
Life expectancy (in years) | ||||||||||
Currently aged 60 | ||||||||||
Males | 25.7 | 25.5 | 26.0 | 25.9 | 25.7 | 26.0 | 25.8 | 26.1 | 25.9 | 26.0 |
Females | 27.4 | 28.6 | 28.7 | 27.8 | 27.9 | 27.4 | 28.6 | 28.8 | 28.0 | 27.9 |
Currently aged 45, from age 60 | ||||||||||
Males | 26.8 | 26.6 | 27.4 | 26.8 | 26.8 | 27.1 | 26.9 | 27.7 | 26.8 | 27.1 |
Females | 28.5 | 29.7 | 29.9 | 28.8 | 29.0 | 28.6 | 29.8 | 30.2 | 28.9 | 29.1 |
Key plan details for the two largest pension plans 1 | ||
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 Dependants\u2019 pensions on death of employee/pensioner Options for ill health early retirement | Retirement pension for employee Dependants\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 member-nominated Three appointed with the agreement of Law Debenture One independent (Law Debenture) | Trustee directors: Three member-nominated Three company-nominated Two independent (Law Debenture and Ross) |
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 funding basis must be agreed with each trustee board in accordance with UK regulations. This 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 | \u20ac56 million surplus | \u20ac218 million surplus |
Recovery plan | As there were sufficient assets to cover the Fund\u2019s technical provisions, a recovery plan is not required. | As there were sufficient assets to cover the Fund\u2019s 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, 2025 Matching: Return seeking: | 100% 0% Buy-in annuity contracts cover 96% of pensioner liabilities and 87% of total liabilities. | 87% 13% Buy-in annuity contract covers 40% of pensioner liabilities and 29% of total liabilities. The longevity hedge contract covers 45% of pensioner liabilities and 32% of total liabilities. |
Membership at March 31, 2025 | ||
Active members | 48 | 185 |
Deferred members | 4,103 | 4,277 |
Pensioners, spouses and dependants | 30,781 | 15,647 |
Total | 34,932 | 20,109 |
Fair value performance-related shares in \u20ac | ||||
Series | Opening share price per: | Fair Value5 | Share price | Dividend yield |
2022 - 2024 | February 23, 2022 | 88.28 | 88.28 | NA |
2022 - 2024 | October 3, 20221 | 57.70 | 57.70 | NA |
2023 - 2025 | February 23, 2023 | 69.26 | 69.26 | NA |
2023 - 2025 | July 3, 20232 | 74.78 | 74.78 | NA |
2023 - 2025 | January 2, 20242 | 74.82 | 74.82 | NA |
2024 - 2026 | April 2, 2024 | 63.75 | 69.52 | 2.85% |
2024 - 2026 | April 25, 20243 | 62.80 | 62.80 | NA |
2025 - 2027 | March 17, 2025 | 56.33 | 62.08 | 3.19% |
2025 - 2027 | April 25, 2025 | 56.20 | 56.20 | NA |
2025 - 2027 | December 10, 20254 | 53.80 | 53.80 | NA |
Share plans of AkzoNobel employees | |||||||||||||
Share plan | Performance/ Vesting period | Award date | Vesting date | End of holding period | Balance at January 1, 2025 | Awarded in 2025 | Vested in 2025 | Forfeited in 2025 | Dividend in 2025 | Subject to performance condition | Unvested in 2025 | Subject to holding period | Balance at December 31, 2025 |
2022 \u2013 2024 Restricted Share Plan E* | 3 years | 4/1/2022 | 4/1/2025 | 4/1/2026 | 123,166 | \u2014 | (123,008) | (158) | \u2014 | NA | \u2014 | 123,008 | \u2014 |
2022 \u2013 2024 Performance Share Plan | 3 years | 1/1/2022 | 1/1/2025 | 1/1/2027 | 71,939 | \u2014 | (71,939) | \u2014 | \u2014 | \u2014 | \u2014 | 71,939 | \u2014 |
2022 \u2013 2024 Restricted Share Plan NE* | 3 years | 4/1/2022 | 4/1/2025 | NA | 40,756 | \u2014 | (40,366) | (390) | \u2014 | NA | \u2014 | \u2014 | \u2014 |
2023 \u2013 2025 Restricted Share Plan E* | 3 years | 4/1/2023 | 4/1/2026 | 4/1/2027 | 192,158 | \u2014 | (27,561) | (14,288) | \u2014 | NA | 150,309 | 150,309 | 150,309 |
2023 \u2013 2025 Performance Share Plan | 3 years | 1/1/2023 | 1/1/2026 | 1/1/2028 | 116,841 | 21,556 | \u2014 | (2,949) | 3,779 | 139,227 | 139,227 | 139,227 | 139,227 |
2023 \u2013 2025 Restricted Share Plan NE* | 3 years | 4/1/2023 | 4/1/2026 | NA | 58,570 | \u2014 | (3,750) | (2,672) | \u2014 | NA | 52,148 | \u2014 | 52,148 |
2024 \u2013 2026 Performance Share Plan E* | 3 years | 4/2/2024 | 4/2/2027 | NA | 181,399 | \u2014 | (12,767) | (22,525) | \u2014 | 146,107 | 146,107 | \u2014 | 146,107 |
2024 \u2013 2026 Performance Share Plan | 3 years | 1/1/2024 | 1/1/2027 | 1/1/2029 | 118,062 | \u2014 | \u2014 | (9,307) | 3,485 | 112,240 | 112,240 | 112,240 | 112,240 |
2024 \u2013 2026 Restricted Share Plan NE* | 3 years | 4/2/2024 | 4/2/2027 | NA | 43,220 | \u2014 | (717) | (2,393) | \u2014 | NA | 40,110 | \u2014 | 40,110 |
2025 \u2013 2027 Performance Share Plan E* | 3 years | 4/1/2025 | 4/1/2028 | NA | \u2014 | 218,648 | (1,991) | (24,149) | \u2014 | 192,508 | 192,508 | \u2014 | 192,508 |
2025 \u2013 2027 Performance Share Plan | 3 years | 1/1/2025 | 1/1/2028 | 1/1/2030 | \u2014 | 145,911 | \u2014 | (10,655) | 4,720 | 139,976 | 139,976 | 139,976 | 139,976 |
2025 \u2013 2027 Restricted Share Plan NE* | 3 years | 4/1/2025 | 4/1/2028 | NA | \u2014 | 48,670 | \u2014 | (780) | \u2014 | NA | 47,890 | \u2014 | 47,890 |
Total | 946,111 | 434,785 | (282,099) | (90,266) | 11,984 | 730,058 | 1,020,515 | 736,699 | 1,020,515 |
Average number of employees during the year total AkzoNobel | ||
In FTEs | 2024 | 2025 |
Decorative Paints | 14,100 | 13,000 |
Performance Coatings | 17,800 | 17,200 |
Corporate and other | 3,500 | 3,300 |
Total | 35,400 | 33,500 |
Average number of employees during the year in the Netherlands | ||
In FTEs | 2024 | 2025 |
Decorative Paints | 600 | 500 |
Performance Coatings | 1,100 | 1,100 |
Corporate and other | 700 | 600 |
Total | 2,400 | 2,200 |
Number of employees at year-end | ||
In FTEs | 2024 | 2025 |
Decorative Paints | 13,600 | 11,800 |
Performance Coatings | 17,500 | 16,500 |
Corporate and other | 3,500 | 3,200 |
Total | 34,600 | 31,500 |
Accounting policies | ||
Net interest on net debt is measured using the effective interest method. | ||
Financing income related to post-retirement benefits includes the interest on the net defined benefit liability/asset. Interest on provisions contains the movement of provisions as a result of the passage of time, as well as the impact from changes in discount rates and the component of a provision that relates to interest. | ||
Exchange rate results contain the FX results on monetary items, such as cash and cash equivalents, derivatives, loans, receivables and payables. | ||
The gain or loss on net monetary position is a hyperinflation accounting metric and reflects the gain or loss of purchase power by either having a net monetary liability or net monetary asset position. It includes the restatement of non-monetary assets and liabilities, equity and items in the statement of profit and loss. |
Financing income and expenses | ||
in \u20ac millions | 2024 | 2025 |
Net interest on net debt | ||
Financing income | 61 | 49 |
Financing expenses | (187) | (176) |
Net interest on net debt | (126) | (127) |
Other financing income and expenses | ||
Financing income related to post-retirement benefits | 27 | 32 |
Interest related to provisions | (3) | (35) |
Exchange rate results | (47) | (49) |
Hyperinflation: gain/(loss) on net monetary position | 15 | (26) |
Other items | 32 | 6 |
Net other financing income and expenses | 24 | (72) |
Total financing income and expenses | (102) | (199) |
Hyperinflation accounting | ||
in \u20ac millions | 2024 | 2025 |
Revenue | 67 | (17) |
Operating income | (47) | (22) |
Other financing income/expenses | (3) | 1 |
Hyperinflation: gain/(loss) on net monetary position | 15 | (26) |
Financing income and expenses | 12 | (25) |
Profit before tax | (35) | (47) |
Income tax | (18) | (4) |
Profit for the period | (53) | (51) |
Attributable to | ||
Shareholders of the company | (43) | (42) |
Non-controlling interests | (10) | (9) |
Accounting policies | ||
Net interest on net debt is measured using the effective interest method. | ||
Financing income related to post-retirement benefits includes the interest on the net defined benefit liability/asset. Interest on provisions contains the movement of provisions as a result of the passage of time, as well as the impact from changes in discount rates and the component of a provision that relates to interest. | ||
Exchange rate results contain the FX results on monetary items, such as cash and cash equivalents, derivatives, loans, receivables and payables. | ||
The gain or loss on net monetary position is a hyperinflation accounting metric and reflects the gain or loss of purchase power by either having a net monetary liability or net monetary asset position. It includes the restatement of non-monetary assets and liabilities, equity and items in the statement of profit and loss. |
Financing income and expenses | ||
in \u20ac millions | 2024 | 2025 |
Net interest on net debt | ||
Financing income | 61 | 49 |
Financing expenses | (187) | (176) |
Net interest on net debt | (126) | (127) |
Other financing income and expenses | ||
Financing income related to post-retirement benefits | 27 | 32 |
Interest related to provisions | (3) | (35) |
Exchange rate results | (47) | (49) |
Hyperinflation: gain/(loss) on net monetary position | 15 | (26) |
Other items | 32 | 6 |
Net other financing income and expenses | 24 | (72) |
Total financing income and expenses | (102) | (199) |
Hyperinflation accounting | ||
in \u20ac millions | 2024 | 2025 |
Revenue | 67 | (17) |
Operating income | (47) | (22) |
Other financing income/expenses | (3) | 1 |
Hyperinflation: gain/(loss) on net monetary position | 15 | (26) |
Financing income and expenses | 12 | (25) |
Profit before tax | (35) | (47) |
Income tax | (18) | (4) |
Profit for the period | (53) | (51) |
Attributable to | ||
Shareholders of the company | (43) | (42) |
Non-controlling interests | (10) | (9) |
Accounting policies | ||
Net interest on net debt is measured using the effective interest method. | ||
Financing income related to post-retirement benefits includes the interest on the net defined benefit liability/asset. Interest on provisions contains the movement of provisions as a result of the passage of time, as well as the impact from changes in discount rates and the component of a provision that relates to interest. | ||
Exchange rate results contain the FX results on monetary items, such as cash and cash equivalents, derivatives, loans, receivables and payables. | ||
The gain or loss on net monetary position is a hyperinflation accounting metric and reflects the gain or loss of purchase power by either having a net monetary liability or net monetary asset position. It includes the restatement of non-monetary assets and liabilities, equity and items in the statement of profit and loss. |
Financing income and expenses | ||
in \u20ac millions | 2024 | 2025 |
Net interest on net debt | ||
Financing income | 61 | 49 |
Financing expenses | (187) | (176) |
Net interest on net debt | (126) | (127) |
Other financing income and expenses | ||
Financing income related to post-retirement benefits | 27 | 32 |
Interest related to provisions | (3) | (35) |
Exchange rate results | (47) | (49) |
Hyperinflation: gain/(loss) on net monetary position | 15 | (26) |
Other items | 32 | 6 |
Net other financing income and expenses | 24 | (72) |
Total financing income and expenses | (102) | (199) |
Hyperinflation accounting | ||
in \u20ac millions | 2024 | 2025 |
Revenue | 67 | (17) |
Operating income | (47) | (22) |
Other financing income/expenses | (3) | 1 |
Hyperinflation: gain/(loss) on net monetary position | 15 | (26) |
Financing income and expenses | 12 | (25) |
Profit before tax | (35) | (47) |
Income tax | (18) | (4) |
Profit for the period | (53) | (51) |
Attributable to | ||
Shareholders of the company | (43) | (42) |
Non-controlling interests | (10) | (9) |
Accounting policies | ||
Net interest on net debt is measured using the effective interest method. | ||
Financing income related to post-retirement benefits includes the interest on the net defined benefit liability/asset. Interest on provisions contains the movement of provisions as a result of the passage of time, as well as the impact from changes in discount rates and the component of a provision that relates to interest. | ||
Exchange rate results contain the FX results on monetary items, such as cash and cash equivalents, derivatives, loans, receivables and payables. | ||
The gain or loss on net monetary position is a hyperinflation accounting metric and reflects the gain or loss of purchase power by either having a net monetary liability or net monetary asset position. It includes the restatement of non-monetary assets and liabilities, equity and items in the statement of profit and loss. |
Financing income and expenses | ||
in \u20ac millions | 2024 | 2025 |
Net interest on net debt | ||
Financing income | 61 | 49 |
Financing expenses | (187) | (176) |
Net interest on net debt | (126) | (127) |
Other financing income and expenses | ||
Financing income related to post-retirement benefits | 27 | 32 |
Interest related to provisions | (3) | (35) |
Exchange rate results | (47) | (49) |
Hyperinflation: gain/(loss) on net monetary position | 15 | (26) |
Other items | 32 | 6 |
Net other financing income and expenses | 24 | (72) |
Total financing income and expenses | (102) | (199) |
Hyperinflation accounting | ||
in \u20ac millions | 2024 | 2025 |
Revenue | 67 | (17) |
Operating income | (47) | (22) |
Other financing income/expenses | (3) | 1 |
Hyperinflation: gain/(loss) on net monetary position | 15 | (26) |
Financing income and expenses | 12 | (25) |
Profit before tax | (35) | (47) |
Income tax | (18) | (4) |
Profit for the period | (53) | (51) |
Attributable to | ||
Shareholders of the company | (43) | (42) |
Non-controlling interests | (10) | (9) |
Accounting policies | ||
Net interest on net debt is measured using the effective interest method. | ||
Financing income related to post-retirement benefits includes the interest on the net defined benefit liability/asset. Interest on provisions contains the movement of provisions as a result of the passage of time, as well as the impact from changes in discount rates and the component of a provision that relates to interest. | ||
Exchange rate results contain the FX results on monetary items, such as cash and cash equivalents, derivatives, loans, receivables and payables. | ||
The gain or loss on net monetary position is a hyperinflation accounting metric and reflects the gain or loss of purchase power by either having a net monetary liability or net monetary asset position. It includes the restatement of non-monetary assets and liabilities, equity and items in the statement of profit and loss. |
Financing income and expenses | ||
in \u20ac millions | 2024 | 2025 |
Net interest on net debt | ||
Financing income | 61 | 49 |
Financing expenses | (187) | (176) |
Net interest on net debt | (126) | (127) |
Other financing income and expenses | ||
Financing income related to post-retirement benefits | 27 | 32 |
Interest related to provisions | (3) | (35) |
Exchange rate results | (47) | (49) |
Hyperinflation: gain/(loss) on net monetary position | 15 | (26) |
Other items | 32 | 6 |
Net other financing income and expenses | 24 | (72) |
Total financing income and expenses | (102) | (199) |
Hyperinflation accounting | ||
in \u20ac millions | 2024 | 2025 |
Revenue | 67 | (17) |
Operating income | (47) | (22) |
Other financing income/expenses | (3) | 1 |
Hyperinflation: gain/(loss) on net monetary position | 15 | (26) |
Financing income and expenses | 12 | (25) |
Profit before tax | (35) | (47) |
Income tax | (18) | (4) |
Profit for the period | (53) | (51) |
Attributable to | ||
Shareholders of the company | (43) | (42) |
Non-controlling interests | (10) | (9) |
Accounting policies | ||
Net interest on net debt is measured using the effective interest method. | ||
Financing income related to post-retirement benefits includes the interest on the net defined benefit liability/asset. Interest on provisions contains the movement of provisions as a result of the passage of time, as well as the impact from changes in discount rates and the component of a provision that relates to interest. | ||
Exchange rate results contain the FX results on monetary items, such as cash and cash equivalents, derivatives, loans, receivables and payables. | ||
The gain or loss on net monetary position is a hyperinflation accounting metric and reflects the gain or loss of purchase power by either having a net monetary liability or net monetary asset position. It includes the restatement of non-monetary assets and liabilities, equity and items in the statement of profit and loss. |
Financing income and expenses | ||
in \u20ac millions | 2024 | 2025 |
Net interest on net debt | ||
Financing income | 61 | 49 |
Financing expenses | (187) | (176) |
Net interest on net debt | (126) | (127) |
Other financing income and expenses | ||
Financing income related to post-retirement benefits | 27 | 32 |
Interest related to provisions | (3) | (35) |
Exchange rate results | (47) | (49) |
Hyperinflation: gain/(loss) on net monetary position | 15 | (26) |
Other items | 32 | 6 |
Net other financing income and expenses | 24 | (72) |
Total financing income and expenses | (102) | (199) |
Hyperinflation accounting | ||
in \u20ac millions | 2024 | 2025 |
Revenue | 67 | (17) |
Operating income | (47) | (22) |
Other financing income/expenses | (3) | 1 |
Hyperinflation: gain/(loss) on net monetary position | 15 | (26) |
Financing income and expenses | 12 | (25) |
Profit before tax | (35) | (47) |
Income tax | (18) | (4) |
Profit for the period | (53) | (51) |
Attributable to | ||
Shareholders of the company | (43) | (42) |
Non-controlling interests | (10) | (9) |
Accounting policies | ||
Income tax expenses comprise both current and deferred tax, including the 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. |
Significant accounting estimates and judgments | ||
Recoverability of deferred tax assets When 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. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, tax planning strategies and the application of local tax legislation in making this assessment. The ultimate realization of 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. | ||
The assessment of the recoverability of deferred tax assets involves significant judgment, mainly in relation to the long-term profitability forecasts that are prepared to estimate the projected future taxable income. The projections used to assess recoverability are, in general, based on a ten year period. 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 (where needed) for specific factors affecting profitability of our operations within the country. |
Classification of current and deferred tax result | ||
in \u20ac millions | 2024 | 2025 |
Current tax expense for | ||
The year | (259) | (324) |
Adjustments for previous years | 62 | \u2014 |
Total current tax expense | (197) | (324) |
Deferred tax expense for | ||
Origination and reversal of temporary differences and tax losses | 14 | 86 |
(Derecognition)/recognition of deferred tax assets | (64) | (80) |
Changes in tax rates | 1 | (8) |
Total deferred tax expense | (49) | (2) |
Total | (246) | (326) |
Effective tax rate reconciliation | ||
in % | 2024 | 2025 |
Corporate tax rate in the Netherlands | 25.8 | 25.8 |
Effect of tax rates in other countries | (0.8) | (0.6) |
Weighted average statutory income tax rate | 25.0 | 25.2 |
Divestment Akzo Nobel India Limited | \u2014 | (4.0) |
Non-taxable income | (2.6) | (2.3) |
Non-deductible expenses | 1.6 | 3.1 |
Non-refundable withholding taxes | 1.8 | 0.7 |
(Recognition)/derecognition of deferred tax assets | 7.6 | 8.0 |
Adjustments for previous years | (7.4) | \u2014 |
Hyperinflation impact | 3.5 | 1.1 |
Deferred tax adjustment due to changes in tax rates | (0.1) | 0.9 |
Effective tax rate | 29.4 | 32.7 |
Origination of deferred tax assets and liabilities 2025 | ||||||
in \u20ac millions | Balance at January 1, 2025 | Changes in exchange\u00a0rate | Recognized in\u00a0income | Recognized in equity/Other comprehensive income | Divestment | Balance at December 31, 2025 |
Intangible assets | (528) | 16 | 26 | \u2014 | (14) | (500) |
Property, plant and equipment | 27 | 7 | (20) | \u2014 | (3) | 11 |
Financial non-current assets | (224) | 12 | \u2014 | 4 | \u2014 | (208) |
Post-retirement benefit provisions | 73 | (4) | (13) | (13) | \u2014 | 43 |
Other provisions | 23 | (4) | 76 | 1 | \u2014 | 96 |
Other items | 97 | (8) | (23) | \u2014 | 3 | 69 |
Temporary differences | (532) | 19 | 46 | (8) | (14) | (489) |
Tax credits | 234 | \u2014 | (10) | \u2014 | \u2014 | 224 |
Tax loss carryforwards | 229 | (13) | (38) | 1 | \u2014 | 179 |
Deferred tax assets (liabilities) | (69) | 6 | (2) | (7) | (14) | (86) |
Origination of deferred tax assets and liabilities 2024 | |||||
in \u20ac millions | Balance at January 1, 2024 | Changes in exchange\u00a0rate | Recognized in\u00a0income | Recognized in equity/Other comprehensive income | Balance at December 31, 2024 |
Intangible assets | (533) | 1 | 4 | \u2014 | (528) |
Property, plant and equipment | 49 | 1 | (23) | \u2014 | 27 |
Financial non-current assets | (247) | (12) | (6) | 41 | (224) |
Post-retirement benefit provisions | 85 | \u2014 | (2) | (10) | 73 |
Other provisions | 28 | \u2014 | (5) | \u2014 | 23 |
Other items | 91 | \u2014 | 6 | \u2014 | 97 |
Temporary differences | (527) | (10) | (26) | 31 | (532) |
Tax credits | 222 | \u2014 | 12 | \u2014 | 234 |
Tax loss carryforwards | 260 | 4 | (35) | \u2014 | 229 |
Deferred tax assets (liabilities) | (45) | (6) | (49) | 31 | (69) |
Deferred tax assets and liabilities per balance sheet item | ||||||
December 31, 2024 | December 31, 2025 | |||||
in \u20ac millions | Net balance | Assets | Liabilities | Net balance | Assets | Liabilities |
Intangible assets | (528) | 14 | 542 | (500) | 52 | 552 |
Property, plant and equipment | 27 | 174 | 147 | 11 | 79 | 68 |
Financial non-current assets | (224) | 14 | 238 | (208) | 11 | 219 |
Post-retirement benefit provisions | 73 | 76 | 3 | 43 | 55 | 12 |
Other provisions | 23 | 34 | 11 | 96 | 105 | 9 |
Other items | 97 | 118 | 21 | 69 | 87 | 18 |
Temporary differences | (532) | 430 | 962 | (489) | 389 | 878 |
Tax credits | 234 | 234 | \u2014 | 224 | 224 | \u2014 |
Tax loss carryforwards | 229 | 229 | \u2014 | 179 | 179 | \u2014 |
Tax assets/liabilities | (69) | 893 | 962 | (86) | 792 | 878 |
Set-off of tax | \u2014 | (471) | (471) | \u2014 | (391) | (391) |
Net deferred tax positions | (69) | 422 | 491 | (86) | 401 | 487 |
Expiration year of loss carryforwards 2025 | |||||||||
in \u20ac millions | 2026 | 2027 | 2028 | 2029 | 2030 | Later | Unlimited | Total | Deferred tax |
Total loss carryforwards | 3 | 4 | 23 | 22 | 14 | 66 | 3,058 | 3,190 | 808 |
Loss carryforwards not recognized in deferred tax assets | (2) | (4) | (8) | (9) | (6) | (61) | (2,390) | (2,480) | (629) |
Total loss carryforwards recognized | 1 | \u2014 | 15 | 13 | 8 | 5 | 668 | 710 | 179 |
Expiration year of loss carryforwards 2024 | |||||||||
in \u20ac millions | 2025 | 2026 | 2027 | 2028 | 2029 | Later | Unlimited | Total | Deferred tax |
Total loss carryforwards | 1 | 4 | 6 | 59 | 26 | 40 | 3,149 | 3,285 | 844 |
Loss carryforwards not recognized in deferred tax assets | (1) | (1) | (5) | (10) | (11) | (27) | (2,389) | (2,444) | (615) |
Total loss carryforwards recognized | \u2014 | 3 | 1 | 49 | 15 | 13 | 760 | 841 | 229 |
Income tax recognized in equity | ||
in \u20ac millions | 2024 | 2025 |
Currency exchange differences on intercompany loans of a permanent nature | \u2014 | 1 |
Share-based compensation | \u2014 | \u2014 |
Post-retirement benefits | 31 | (8) |
Total | 31 | (7) |
Current tax | 1 | 1 |
Deferred tax | 30 | (8) |
Total | 31 | (7) |
Classification of current and deferred tax result | ||
in \u20ac millions | 2024 | 2025 |
Current tax expense for | ||
The year | (259) | (324) |
Adjustments for previous years | 62 | \u2014 |
Total current tax expense | (197) | (324) |
Deferred tax expense for | ||
Origination and reversal of temporary differences and tax losses | 14 | 86 |
(Derecognition)/recognition of deferred tax assets | (64) | (80) |
Changes in tax rates | 1 | (8) |
Total deferred tax expense | (49) | (2) |
Total | (246) | (326) |
Origination of deferred tax assets and liabilities 2025 | ||||||
in \u20ac millions | Balance at January 1, 2025 | Changes in exchange\u00a0rate | Recognized in\u00a0income | Recognized in equity/Other comprehensive income | Divestment | Balance at December 31, 2025 |
Intangible assets | (528) | 16 | 26 | \u2014 | (14) | (500) |
Property, plant and equipment | 27 | 7 | (20) | \u2014 | (3) | 11 |
Financial non-current assets | (224) | 12 | \u2014 | 4 | \u2014 | (208) |
Post-retirement benefit provisions | 73 | (4) | (13) | (13) | \u2014 | 43 |
Other provisions | 23 | (4) | 76 | 1 | \u2014 | 96 |
Other items | 97 | (8) | (23) | \u2014 | 3 | 69 |
Temporary differences | (532) | 19 | 46 | (8) | (14) | (489) |
Tax credits | 234 | \u2014 | (10) | \u2014 | \u2014 | 224 |
Tax loss carryforwards | 229 | (13) | (38) | 1 | \u2014 | 179 |
Deferred tax assets (liabilities) | (69) | 6 | (2) | (7) | (14) | (86) |
Origination of deferred tax assets and liabilities 2024 | |||||
in \u20ac millions | Balance at January 1, 2024 | Changes in exchange\u00a0rate | Recognized in\u00a0income | Recognized in equity/Other comprehensive income | Balance at December 31, 2024 |
Intangible assets | (533) | 1 | 4 | \u2014 | (528) |
Property, plant and equipment | 49 | 1 | (23) | \u2014 | 27 |
Financial non-current assets | (247) | (12) | (6) | 41 | (224) |
Post-retirement benefit provisions | 85 | \u2014 | (2) | (10) | 73 |
Other provisions | 28 | \u2014 | (5) | \u2014 | 23 |
Other items | 91 | \u2014 | 6 | \u2014 | 97 |
Temporary differences | (527) | (10) | (26) | 31 | (532) |
Tax credits | 222 | \u2014 | 12 | \u2014 | 234 |
Tax loss carryforwards | 260 | 4 | (35) | \u2014 | 229 |
Deferred tax assets (liabilities) | (45) | (6) | (49) | 31 | (69) |
Deferred tax assets and liabilities per balance sheet item | ||||||
December 31, 2024 | December 31, 2025 | |||||
in \u20ac millions | Net balance | Assets | Liabilities | Net balance | Assets | Liabilities |
Intangible assets | (528) | 14 | 542 | (500) | 52 | 552 |
Property, plant and equipment | 27 | 174 | 147 | 11 | 79 | 68 |
Financial non-current assets | (224) | 14 | 238 | (208) | 11 | 219 |
Post-retirement benefit provisions | 73 | 76 | 3 | 43 | 55 | 12 |
Other provisions | 23 | 34 | 11 | 96 | 105 | 9 |
Other items | 97 | 118 | 21 | 69 | 87 | 18 |
Temporary differences | (532) | 430 | 962 | (489) | 389 | 878 |
Tax credits | 234 | 234 | \u2014 | 224 | 224 | \u2014 |
Tax loss carryforwards | 229 | 229 | \u2014 | 179 | 179 | \u2014 |
Tax assets/liabilities | (69) | 893 | 962 | (86) | 792 | 878 |
Set-off of tax | \u2014 | (471) | (471) | \u2014 | (391) | (391) |
Net deferred tax positions | (69) | 422 | 491 | (86) | 401 | 487 |
Expiration year of loss carryforwards 2025 | |||||||||
in \u20ac millions | 2026 | 2027 | 2028 | 2029 | 2030 | Later | Unlimited | Total | Deferred tax |
Total loss carryforwards | 3 | 4 | 23 | 22 | 14 | 66 | 3,058 | 3,190 | 808 |
Loss carryforwards not recognized in deferred tax assets | (2) | (4) | (8) | (9) | (6) | (61) | (2,390) | (2,480) | (629) |
Total loss carryforwards recognized | 1 | \u2014 | 15 | 13 | 8 | 5 | 668 | 710 | 179 |
Expiration year of loss carryforwards 2024 | |||||||||
in \u20ac millions | 2025 | 2026 | 2027 | 2028 | 2029 | Later | Unlimited | Total | Deferred tax |
Total loss carryforwards | 1 | 4 | 6 | 59 | 26 | 40 | 3,149 | 3,285 | 844 |
Loss carryforwards not recognized in deferred tax assets | (1) | (1) | (5) | (10) | (11) | (27) | (2,389) | (2,444) | (615) |
Total loss carryforwards recognized | \u2014 | 3 | 1 | 49 | 15 | 13 | 760 | 841 | 229 |
Accounting policies | ||
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. |
Profit for the period | ||
in \u20ac millions | 2024 | 2025 |
Profit before tax from continuing operations | 838 | 998 |
Income tax | (246) | (326) |
Profit from continuing operations | 592 | 672 |
Profit for the period attributable to non-controlling interests | (50) | (36) |
Profit for the period from continuing operations attributable to shareholders of\u00a0the\u00a0company | 542 | 636 |
Profit for the period from discontinued operations attributable to shareholders of the company | \u2014 | (1) |
Profit for the period attributable to shareholders of the company | 542 | 635 |
Weighted average number of common shares | ||
Number of shares | 2024 | 2025 |
Issued common shares at January 1 | 170,600,675 | 170,784,638 |
Effect of issued common shares during the year | 128,195 | 200,207 |
Shares for basic earnings per share for the year | 170,728,870 | 170,984,845 |
Effect of dilutive shares | ||
For performance-related and restricted shares | 871,692 | 1,007,225 |
For share-matching plan | 12,313 | 22,868 |
Shares for diluted earnings per share | 171,612,875 | 172,014,938 |
Earnings per share | ||
in \u20ac | 2024 | 2025 |
Continuing operations | ||
Basic | 3.17 | 3.72 |
Diluted | 3.16 | 3.70 |
Discontinued operations | ||
Basic | \u2014 | (0.01) |
Diluted | \u2014 | (0.01) |
Total operations | ||
Basic | 3.17 | 3.71 |
Diluted | 3.16 | 3.69 |
Adjusted earnings per share* | ||
in \u20ac millions | 2024 | 2025 |
Profit for the period attributable to shareholders of the company from continuing operations | 592 | 672 |
APM adjustments to operating income | 196 | (83) |
APM adjustments to interest | (21) | 20 |
APM adjustments to income tax | (54) | 47 |
Non-controlling interests | (50) | (36) |
Adjusted profit from continuing operations attributable to shareholders of the company* | 663 | 620 |
Weighted average number of shares (in millions) | 170.7 | 171.0 |
Adjusted earnings per share from continuing operations (in \u20ac) | 3.88 | 3.63 |
Intangible assets | |||||
in \u20ac millions | Goodwill | Brands | Customer lists | Other intangibles | Total |
Balance at January 1, 2024 | |||||
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 January 1, 2024 | 1,430 | 2,017 | 491 | 143 | 4,081 |
Movements in 2024 | |||||
Acquisitions through business combinations | 3 | \u2014 | (1) | \u2014 | 2 |
Investments - including internally developed intangibles | \u2014 | \u2014 | \u2014 | 24 | 24 |
Amortization | \u2014 | (17) | (32) | (29) | (78) |
Hyperinflation adjustment | 5 | 10 | \u2014 | \u2014 | 15 |
Changes in exchange rates | 5 | 11 | (8) | (3) | 5 |
Total movements | 13 | 4 | (41) | (8) | (32) |
Balance at December 31, 2024 | |||||
Cost of acquisition | 1,472 | 2,274 | 1,136 | 190 | 5,072 |
Cost of internally developed intangibles | \u2014 | \u2014 | \u2014 | 287 | 287 |
Accumulated amortization/impairment | (29) | (253) | (686) | (342) | (1,310) |
Carrying value at December 31, 2024 | 1,443 | 2,021 | 450 | 135 | 4,049 |
Movements in 2025 | |||||
Investments - including internally developed intangibles | \u2014 | \u2014 | \u2014 | 13 | 13 |
Divestments | (3) | (51) | (1) | \u2014 | (55) |
Amortization | \u2014 | (16) | (31) | (31) | (78) |
Impairments, including reversals thereof | \u2014 | \u2014 | \u2014 | (1) | (1) |
Hyperinflation adjustment | 2 | 2 | \u2014 | \u2014 | 4 |
Changes in exchange rates | (50) | (80) | (3) | (1) | (134) |
Total movements | (51) | (145) | (35) | (20) | (251) |
Balance at December 31, 2025 | |||||
Cost of acquisition | 1,419 | 2,131 | 1,053 | 183 | 4,786 |
Cost of internally developed intangibles | \u2014 | \u2014 | \u2014 | 296 | 296 |
Accumulated amortization/impairment | (27) | (255) | (638) | (364) | (1,284) |
Carrying value at December 31, 2025 | 1,392 | 1,876 | 415 | 115 | 3,798 |
Accounting policies | ||
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. | ||
Intangible assets with a finite useful life, such as licenses, know-how, certain brands, customer relationships, intellectual property 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 expensed as incurred. | ||
Impairment 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. | ||
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. |
Significant accounting estimates and judgments | ||
The cash flow projections used in the value in use calculations for the annual impairment test for goodwill and other intangibles assets with indefinite life, require significant judgment. The various judgments and estimations are described in the Annual impairment testing section in this Note. | ||
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). |
Goodwill and other intangibles per business unit | ||||||||
in \u20ac millions | Goodwill | Brands with indefinite useful lives | Other intangibles with finite useful lives | Total intangibles | ||||
2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | |
Decorative Paints Europe, Middle East and Africa | 110 | 107 | 836 | 961 | 116 | 103 | 1,062 | 1,171 |
Decorative Paints Latin America | 169 | 168 | 90 | 87 | 164 | 158 | 423 | 413 |
Decorative Paints China and North Asia | 32 | 30 | 663 | 378 | 32 | 27 | 727 | 435 |
Decorative Paints South East and South Asia* | 7 | 6 | 217 | 257 | 9 | 6 | 233 | 269 |
Powder Coatings | 149 | 131 | \u2014 | \u2014 | 35 | 28 | 184 | 159 |
Marine and Protective Coatings | 213 | 212 | \u2014 | \u2014 | 91 | 85 | 304 | 297 |
Automotive and Specialty Coatings | 304 | 299 | \u2014 | \u2014 | 144 | 135 | 448 | 434 |
Industrial Coatings | 459 | 439 | \u2014 | \u2014 | 119 | 105 | 578 | 544 |
Corporate and other | \u2014 | \u2014 | \u2014 | \u2014 | 90 | 76 | 90 | 76 |
Total | 1,443 | 1,392 | 1,806 | 1,683 | 800 | 723 | 4,049 | 3,798 |
*Brands with indefinite useful lives in Decorative Paints South East and South Asia decreased with \u20ac51 million due to the divestment of Akzo Nobel India Limited. |
Pre-tax discount rate | ||
In % per year | 2024 | 2025 |
Decorative Paints Europe, Middle East and Africa | 10.4% | 10.8% |
Decorative Paints China and North Asia | 9.8% | 10.3% |
Automotive and Specialty Coatings | 9.7% | 10.4% |
Industrial Coatings | 10.1% | 10.6% |
Marine and Protective Coatings | 9.7% | 10.3% |
Intangible assets | |||||
in \u20ac millions | Goodwill | Brands | Customer lists | Other intangibles | Total |
Balance at January 1, 2024 | |||||
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 January 1, 2024 | 1,430 | 2,017 | 491 | 143 | 4,081 |
Movements in 2024 | |||||
Acquisitions through business combinations | 3 | \u2014 | (1) | \u2014 | 2 |
Investments - including internally developed intangibles | \u2014 | \u2014 | \u2014 | 24 | 24 |
Amortization | \u2014 | (17) | (32) | (29) | (78) |
Hyperinflation adjustment | 5 | 10 | \u2014 | \u2014 | 15 |
Changes in exchange rates | 5 | 11 | (8) | (3) | 5 |
Total movements | 13 | 4 | (41) | (8) | (32) |
Balance at December 31, 2024 | |||||
Cost of acquisition | 1,472 | 2,274 | 1,136 | 190 | 5,072 |
Cost of internally developed intangibles | \u2014 | \u2014 | \u2014 | 287 | 287 |
Accumulated amortization/impairment | (29) | (253) | (686) | (342) | (1,310) |
Carrying value at December 31, 2024 | 1,443 | 2,021 | 450 | 135 | 4,049 |
Movements in 2025 | |||||
Investments - including internally developed intangibles | \u2014 | \u2014 | \u2014 | 13 | 13 |
Divestments | (3) | (51) | (1) | \u2014 | (55) |
Amortization | \u2014 | (16) | (31) | (31) | (78) |
Impairments, including reversals thereof | \u2014 | \u2014 | \u2014 | (1) | (1) |
Hyperinflation adjustment | 2 | 2 | \u2014 | \u2014 | 4 |
Changes in exchange rates | (50) | (80) | (3) | (1) | (134) |
Total movements | (51) | (145) | (35) | (20) | (251) |
Balance at December 31, 2025 | |||||
Cost of acquisition | 1,419 | 2,131 | 1,053 | 183 | 4,786 |
Cost of internally developed intangibles | \u2014 | \u2014 | \u2014 | 296 | 296 |
Accumulated amortization/impairment | (27) | (255) | (638) | (364) | (1,284) |
Carrying value at December 31, 2025 | 1,392 | 1,876 | 415 | 115 | 3,798 |
Accounting policies | ||
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. | ||
Intangible assets with a finite useful life, such as licenses, know-how, certain brands, customer relationships, intellectual property 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 expensed as incurred. | ||
Impairment 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. | ||
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. |
Significant accounting estimates and judgments | ||
The cash flow projections used in the value in use calculations for the annual impairment test for goodwill and other intangibles assets with indefinite life, require significant judgment. The various judgments and estimations are described in the Annual impairment testing section in this Note. | ||
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). |
Goodwill and other intangibles per business unit | ||||||||
in \u20ac millions | Goodwill | Brands with indefinite useful lives | Other intangibles with finite useful lives | Total intangibles | ||||
2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | |
Decorative Paints Europe, Middle East and Africa | 110 | 107 | 836 | 961 | 116 | 103 | 1,062 | 1,171 |
Decorative Paints Latin America | 169 | 168 | 90 | 87 | 164 | 158 | 423 | 413 |
Decorative Paints China and North Asia | 32 | 30 | 663 | 378 | 32 | 27 | 727 | 435 |
Decorative Paints South East and South Asia* | 7 | 6 | 217 | 257 | 9 | 6 | 233 | 269 |
Powder Coatings | 149 | 131 | \u2014 | \u2014 | 35 | 28 | 184 | 159 |
Marine and Protective Coatings | 213 | 212 | \u2014 | \u2014 | 91 | 85 | 304 | 297 |
Automotive and Specialty Coatings | 304 | 299 | \u2014 | \u2014 | 144 | 135 | 448 | 434 |
Industrial Coatings | 459 | 439 | \u2014 | \u2014 | 119 | 105 | 578 | 544 |
Corporate and other | \u2014 | \u2014 | \u2014 | \u2014 | 90 | 76 | 90 | 76 |
Total | 1,443 | 1,392 | 1,806 | 1,683 | 800 | 723 | 4,049 | 3,798 |
*Brands with indefinite useful lives in Decorative Paints South East and South Asia decreased with \u20ac51 million due to the divestment of Akzo Nobel India Limited. |
Pre-tax discount rate | ||
In % per year | 2024 | 2025 |
Decorative Paints Europe, Middle East and Africa | 10.4% | 10.8% |
Decorative Paints China and North Asia | 9.8% | 10.3% |
Automotive and Specialty Coatings | 9.7% | 10.4% |
Industrial Coatings | 10.1% | 10.6% |
Marine and Protective Coatings | 9.7% | 10.3% |
Intangible assets | |||||
in \u20ac millions | Goodwill | Brands | Customer lists | Other intangibles | Total |
Balance at January 1, 2024 | |||||
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 January 1, 2024 | 1,430 | 2,017 | 491 | 143 | 4,081 |
Movements in 2024 | |||||
Acquisitions through business combinations | 3 | \u2014 | (1) | \u2014 | 2 |
Investments - including internally developed intangibles | \u2014 | \u2014 | \u2014 | 24 | 24 |
Amortization | \u2014 | (17) | (32) | (29) | (78) |
Hyperinflation adjustment | 5 | 10 | \u2014 | \u2014 | 15 |
Changes in exchange rates | 5 | 11 | (8) | (3) | 5 |
Total movements | 13 | 4 | (41) | (8) | (32) |
Balance at December 31, 2024 | |||||
Cost of acquisition | 1,472 | 2,274 | 1,136 | 190 | 5,072 |
Cost of internally developed intangibles | \u2014 | \u2014 | \u2014 | 287 | 287 |
Accumulated amortization/impairment | (29) | (253) | (686) | (342) | (1,310) |
Carrying value at December 31, 2024 | 1,443 | 2,021 | 450 | 135 | 4,049 |
Movements in 2025 | |||||
Investments - including internally developed intangibles | \u2014 | \u2014 | \u2014 | 13 | 13 |
Divestments | (3) | (51) | (1) | \u2014 | (55) |
Amortization | \u2014 | (16) | (31) | (31) | (78) |
Impairments, including reversals thereof | \u2014 | \u2014 | \u2014 | (1) | (1) |
Hyperinflation adjustment | 2 | 2 | \u2014 | \u2014 | 4 |
Changes in exchange rates | (50) | (80) | (3) | (1) | (134) |
Total movements | (51) | (145) | (35) | (20) | (251) |
Balance at December 31, 2025 | |||||
Cost of acquisition | 1,419 | 2,131 | 1,053 | 183 | 4,786 |
Cost of internally developed intangibles | \u2014 | \u2014 | \u2014 | 296 | 296 |
Accumulated amortization/impairment | (27) | (255) | (638) | (364) | (1,284) |
Carrying value at December 31, 2025 | 1,392 | 1,876 | 415 | 115 | 3,798 |
Accounting policies | ||
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. | ||
Intangible assets with a finite useful life, such as licenses, know-how, certain brands, customer relationships, intellectual property 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 expensed as incurred. | ||
Impairment 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. | ||
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. |
Significant accounting estimates and judgments | ||
The cash flow projections used in the value in use calculations for the annual impairment test for goodwill and other intangibles assets with indefinite life, require significant judgment. The various judgments and estimations are described in the Annual impairment testing section in this Note. | ||
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). |
Goodwill and other intangibles per business unit | ||||||||
in \u20ac millions | Goodwill | Brands with indefinite useful lives | Other intangibles with finite useful lives | Total intangibles | ||||
2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | |
Decorative Paints Europe, Middle East and Africa | 110 | 107 | 836 | 961 | 116 | 103 | 1,062 | 1,171 |
Decorative Paints Latin America | 169 | 168 | 90 | 87 | 164 | 158 | 423 | 413 |
Decorative Paints China and North Asia | 32 | 30 | 663 | 378 | 32 | 27 | 727 | 435 |
Decorative Paints South East and South Asia* | 7 | 6 | 217 | 257 | 9 | 6 | 233 | 269 |
Powder Coatings | 149 | 131 | \u2014 | \u2014 | 35 | 28 | 184 | 159 |
Marine and Protective Coatings | 213 | 212 | \u2014 | \u2014 | 91 | 85 | 304 | 297 |
Automotive and Specialty Coatings | 304 | 299 | \u2014 | \u2014 | 144 | 135 | 448 | 434 |
Industrial Coatings | 459 | 439 | \u2014 | \u2014 | 119 | 105 | 578 | 544 |
Corporate and other | \u2014 | \u2014 | \u2014 | \u2014 | 90 | 76 | 90 | 76 |
Total | 1,443 | 1,392 | 1,806 | 1,683 | 800 | 723 | 4,049 | 3,798 |
*Brands with indefinite useful lives in Decorative Paints South East and South Asia decreased with \u20ac51 million due to the divestment of Akzo Nobel India Limited. |
Pre-tax discount rate | ||
In % per year | 2024 | 2025 |
Decorative Paints Europe, Middle East and Africa | 10.4% | 10.8% |
Decorative Paints China and North Asia | 9.8% | 10.3% |
Automotive and Specialty Coatings | 9.7% | 10.4% |
Industrial Coatings | 10.1% | 10.6% |
Marine and Protective Coatings | 9.7% | 10.3% |
Goodwill and other intangibles per business unit | ||||||||
in \u20ac millions | Goodwill | Brands with indefinite useful lives | Other intangibles with finite useful lives | Total intangibles | ||||
2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | |
Decorative Paints Europe, Middle East and Africa | 110 | 107 | 836 | 961 | 116 | 103 | 1,062 | 1,171 |
Decorative Paints Latin America | 169 | 168 | 90 | 87 | 164 | 158 | 423 | 413 |
Decorative Paints China and North Asia | 32 | 30 | 663 | 378 | 32 | 27 | 727 | 435 |
Decorative Paints South East and South Asia* | 7 | 6 | 217 | 257 | 9 | 6 | 233 | 269 |
Powder Coatings | 149 | 131 | \u2014 | \u2014 | 35 | 28 | 184 | 159 |
Marine and Protective Coatings | 213 | 212 | \u2014 | \u2014 | 91 | 85 | 304 | 297 |
Automotive and Specialty Coatings | 304 | 299 | \u2014 | \u2014 | 144 | 135 | 448 | 434 |
Industrial Coatings | 459 | 439 | \u2014 | \u2014 | 119 | 105 | 578 | 544 |
Corporate and other | \u2014 | \u2014 | \u2014 | \u2014 | 90 | 76 | 90 | 76 |
Total | 1,443 | 1,392 | 1,806 | 1,683 | 800 | 723 | 4,049 | 3,798 |
*Brands with indefinite useful lives in Decorative Paints South East and South Asia decreased with \u20ac51 million due to the divestment of Akzo Nobel India Limited. |
Pre-tax discount rate | ||
In % per year | 2024 | 2025 |
Decorative Paints Europe, Middle East and Africa | 10.4% | 10.8% |
Decorative Paints China and North Asia | 9.8% | 10.3% |
Automotive and Specialty Coatings | 9.7% | 10.4% |
Industrial Coatings | 10.1% | 10.6% |
Marine and Protective Coatings | 9.7% | 10.3% |
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 January 1, 2024 | ||||||
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 January 1, 2024 | 839 | 663 | 138 | 352 | 2 | 1,994 |
Movements in 2024 | ||||||
Divestments | (5) | (2) | (2) | \u2014 | \u2014 | (9) |
Investments | 2 | 8 | 3 | 269 | \u2014 | 282 |
Additions to asset retirement obligations | 2 | \u2014 | \u2014 | \u2014 | \u2014 | 2 |
Transfer between categories | 54 | 163 | 50 | (267) | \u2014 | \u2014 |
Depreciation | (43) | (116) | (33) | \u2014 | (1) | (193) |
Hyperinflation adjustment | 18 | 8 | 2 | 5 | \u2014 | 33 |
Changes in exchange rates | 2 | 3 | 3 | 5 | \u2014 | 13 |
Total movements | 30 | 64 | 23 | 12 | (1) | 128 |
Balance at December 31, 2024 | ||||||
Cost of acquisition | 1,737 | 2,438 | 932 | 365 | 10 | 5,482 |
Accumulated depreciation/impairment | (868) | (1,711) | (771) | (1) | (9) | (3,360) |
Carrying value at December 31, 2024 | 869 | 727 | 161 | 364 | 1 | 2,122 |
Movements in 2025 | ||||||
Divestments | (31) | (12) | (15) | (7) | \u2014 | (65) |
Investments | 9 | 18 | 3 | 266 | \u2014 | 296 |
Transfer between categories | 80 | 183 | 43 | (306) | \u2014 | \u2014 |
Depreciation | (46) | (115) | (35) | \u2014 | (1) | (197) |
Impairments, including reversals thereof | (1) | (2) | (3) | \u2014 | \u2014 | (6) |
Hyperinflation adjustment | 9 | 7 | \u2014 | (1) | \u2014 | 15 |
Changes in exchange rates | (50) | (45) | (11) | (20) | \u2014 | (126) |
Total movements | (30) | 34 | (18) | (68) | (1) | (83) |
Balance at December 31, 2025 | ||||||
Cost of acquisition | 1,678 | 2,398 | 859 | 298 | 10 | 5,243 |
Accumulated depreciation/impairment | (839) | (1,637) | (716) | (2) | (10) | (3,204) |
Carrying value at December 31, 2025 | 839 | 761 | 143 | 296 | \u2014 | 2,039 |
Accounting policies | ||
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 material. 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. Asset retirement obligations are recognized as soon as sufficient information becomes available to reasonably estimate the cash outflow. | ||
Refer to Note 10 Intangible assets, for a description of the accounting policies for asset impairment, which equally apply to property, plant and equipment. |
Accounting policies | ||
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. Right-of-use assets are measured at costs less accumulated depreciation and impairment losses, adjusted for any remeasurements. For contracts that contain a lease component, we allocate consideration based on relative stand- alone price, with the exception of lease cars where non-lease components are not separated. Short-term leases and low value leases are expensed on a straight-line basis over the lease term. Refer to Note 10 Intangible assets, for a description of the accounting policies for asset impairment, which equally apply to right-of-use assets. |
Right-of-use assets | ||||
in \u20ac millions | Land | Buildings | Other | Total |
Balance at January 1, 2024 | ||||
Cost of acquisition | 77 | 399 | 123 | 599 |
Accumulated depreciation/impairment | (23) | (215) | (59) | (297) |
Carrying value at January 1, 2024 | 54 | 184 | 64 | 302 |
Movements in 2024 | ||||
Additions/modifications | 1 | 71 | 49 | 121 |
Disposals | \u2014 | (5) | (4) | (9) |
Depreciation | (2) | (64) | (34) | (100) |
Changes in exchange rates | 1 | 3 | \u2014 | 4 |
Total movements | \u2014 | 5 | 11 | 16 |
Cost of acquisition | 77 | 424 | 130 | 631 |
Accumulated depreciation/impairment | (23) | (235) | (55) | (313) |
Carrying value at December 31, 2024 | 54 | 189 | 75 | 318 |
Movements in 2025 | ||||
Additions/modifications | 4 | 97 | 38 | 139 |
Disposals | (18) | (21) | (5) | (44) |
Depreciation | (2) | (65) | (36) | (103) |
Impairments, including reversals thereof | \u2014 | \u2014 | (2) | (2) |
Changes in exchange rates | (4) | (7) | (3) | (14) |
Total movements | (20) | 4 | (8) | (24) |
Cost of acquisition | 57 | 429 | 130 | 616 |
Accumulated depreciation/impairment | (23) | (236) | (63) | (322) |
Carrying value at December 31, 2025 | 34 | 193 | 67 | 294 |
Income/(expenses) recognized in profit and loss | ||
in \u20ac millions | 2024 | 2025 |
Depreciation right-of-use assets | (100) | (103) |
Impairments for right-of-use assets | \u2014 | (3) |
Interest expense on lease liabilities | (9) | (10) |
Short-term lease expenses | (13) | (11) |
Expenses relating to low-value assets | (6) | (5) |
Variable lease expenses | (20) | (22) |
Total expenses | (148) | (154) |
Accounting policies | ||
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. |
Balance sheet information of our share in associates | ||
Associates | ||
in \u20ac millions, at December 31 | 2024 | 2025 |
Condensed balance sheet | ||
Non-current assets | 115 | 118 |
Current assets | 159 | 170 |
Total assets | 274 | 288 |
Shareholders\u2019equity | 227 | 232 |
Non-current liabilities | 5 | 6 |
Current liabilities | 42 | 50 |
Total liabilities and equity | 274 | 288 |
Profit and loss of our share in associates | ||
Associates | ||
in \u20ac millions | 2024 | 2025 |
Condensed statement of income | ||
Revenue | 222 | 216 |
Profit before tax | 33 | 47 |
Profit for the period | 23 | 33 |
Accounting policies | ||
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. |
Balance sheet information of our share in associates | ||
Associates | ||
in \u20ac millions, at December 31 | 2024 | 2025 |
Condensed balance sheet | ||
Non-current assets | 115 | 118 |
Current assets | 159 | 170 |
Total assets | 274 | 288 |
Shareholders\u2019equity | 227 | 232 |
Non-current liabilities | 5 | 6 |
Current liabilities | 42 | 50 |
Total liabilities and equity | 274 | 288 |
Profit and loss of our share in associates | ||
Associates | ||
in \u20ac millions | 2024 | 2025 |
Condensed statement of income | ||
Revenue | 222 | 216 |
Profit before tax | 33 | 47 |
Profit for the period | 23 | 33 |
Accounting policies | ||
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. |
Balance sheet information of our share in associates | ||
Associates | ||
in \u20ac millions, at December 31 | 2024 | 2025 |
Condensed balance sheet | ||
Non-current assets | 115 | 118 |
Current assets | 159 | 170 |
Total assets | 274 | 288 |
Shareholders\u2019equity | 227 | 232 |
Non-current liabilities | 5 | 6 |
Current liabilities | 42 | 50 |
Total liabilities and equity | 274 | 288 |
Profit and loss of our share in associates | ||
Associates | ||
in \u20ac millions | 2024 | 2025 |
Condensed statement of income | ||
Revenue | 222 | 216 |
Profit before tax | 33 | 47 |
Profit for the period | 23 | 33 |
Accounting policies | ||
Pension assets are accounted for in accordance with IAS 19; for more details on the accounting Loans and receivables are initially measured at fair value plus transaction costs. Subsequent measurement is at amortized cost, using the effective interest method, less any impairment losses. Other financial non-current assets contain different types of financial instruments, for which treatment is dependent on the specific facts and circumstances of these assets. For more details on the accounting policy with regards to classification, measurement and impairment of financial |
Financial non-current assets | ||
in \u20ac millions, at December 31 | 2024 | 2025 |
Pension assets | 929 | 891 |
Loans and receivables | 158 | 57 |
Other financial non-current assets | 187 | 179 |
Total | 1,274 | 1,127 |
Allowance for impairment of trade receivables | ||
in \u20ac millions | 2024 | 2025 |
Balance at January 1 | 39 | 34 |
Additions charged to income | 15 | 24 |
Release of unused amounts | (9) | (10) |
Utilization | (11) | (17) |
Divestments | \u2014 | (1) |
Currency exchange differences | \u2014 | (2) |
Balance at December 31 | 34 | 28 |
Accounting policies | ||
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. |
Inventories | ||
in \u20ac millions, at December 31 | 2024 | 2025 |
Raw materials and supplies | 601 | 507 |
Work in progress | 101 | 87 |
Finished products and goods for resale | 1,019 | 935 |
Total | 1,721 | 1,529 |
Accounting policies | ||
Trade receivables are initially measured at fair value plus transaction costs. Subsequent measurement is 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 netting is legally enforceable. | ||
FX contracts are measured at fair value through profit and loss, unless hedge accounting is applied. | ||
Other receivables contain various types of (financial) assets, for which treatment is dependent on the specific facts and circumstances of these assets. For more details on the accounting policy with regards to classification, measurement and |
Trade and other receivables | ||
in \u20ac millions, at December 31 | 2024 | 2025 |
Trade receivables | 2,144 | 1,990 |
Prepaid expenses | 42 | 35 |
Tax receivables other than income tax | 167 | 156 |
FX contracts | 16 | 16 |
Other short term receivables | 129 | 206 |
Total | 2,498 | 2,403 |
Ageing of trade receivables | ||
in \u20ac millions, at December 31 | 2024 | 2025 |
Performing trade receivables | 2,003 | 1,867 |
Past due trade receivables | ||
< 3 months | 113 | 90 |
> 3 months | 62 | 61 |
Allowance for impairment | (34) | (28) |
Total trade receivables | 2,144 | 1,990 |
Allowance for impairment of trade receivables | ||
in \u20ac millions | 2024 | 2025 |
Balance at January 1 | 39 | 34 |
Additions charged to income | 15 | 24 |
Release of unused amounts | (9) | (10) |
Utilization | (11) | (17) |
Divestments | \u2014 | (1) |
Currency exchange differences | \u2014 | (2) |
Balance at December 31 | 34 | 28 |
Accounting policies | ||
Shares are classified as equity and recorded at the value of the proceeds received. Own equity instruments that are bought back (treasury shares) are deducted from equity. Incremental costs that are directly attributable to issuing or buying back own equity instruments are recognized directly in equity, net of the related tax. | ||
Dividends are recognized as liability when they are declared. |
Composition of share capital at year-end 2025 | ||
in \u20ac | Authorized share\u00a0capital | Subscribed share\u00a0capital |
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 | 85,534,571 |
Total | 350,019,200 | 85,553,771 |
Composition of share capital at year-end 2024 | ||
in \u20ac | Authorized share\u00a0capital | Subscribed share\u00a0capital |
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 | 85,392,319 |
Total | 350,019,200 | 85,411,519 |
Outstanding common shares | ||
Number of shares | 2024 | 2025 |
Outstanding at January\u00a01 | 170,600,675 | 170,784,638 |
Issued in connection to performance-related share plan, restricted share plan and share-matching plan | 183,963 | 284,504 |
Outstanding at December 31 | 170,784,638 | 171,069,142 |
Weighted average number of common shares | ||
Number of shares | 2024 | 2025 |
Weighted average number of common shares | 170,728,870 | 170,984,845 |
Non-controlling interests | |||||
2024 | 2025 | ||||
Group entity | Partner during 2025 | % | Equity stake in \u20ac millions | % | Equity stake in \u20ac millions |
Akzo Nobel Kemipol Kimya Sanayi ve Ticaret A.\u015e., Izmir, T\u00fcrkiye | Altan, Eyy\u00fcp and other family members | 49.00 | 30 | 49.00 | 27 |
International Paint of Shanghai Company Ltd, Shanghai, China | Shanghai Huayi Fine Chemical Co. Ltd and China National Shipbuilding Equipment & Materials Corp. | 49.00 | 22 | 49.00 | 27 |
PT ICI Paints Indonesia, Jakarta, Indonesia | PT DWI Satrya Utama, Indonesia | 45.00 | 30 | 45.00 | 23 |
Akzo Nobel Saudi Arabia Ltd, Dammam, Saudi Arabia | Yousuf Bin Ahmed Kanoo Co. Ltd, Saudi Arabia | 40.00 | 20 | 40.00 | 19 |
Akzo Nobel UAE Paints L.L.C., United Arab Emirates | Kanoo Group, United Arab Emirates | 40.00 | 17 | 40.00 | 15 |
Soci\u00e9t\u00e9 Tunisienne de Peintures Astral S.A., Megrine, Tunisia | S.A.I. SICAF and several people | 40.00 | 11 | 40.00 | 11 |
International Paint (Korea) Ltd, Busan, South-Korea | Noroo Holdings, South Korea | 40.00 | 8 | 40.00 | 11 |
Akzo Nobel Oman SAOC, Muscat, Oman | Omar Zawawi Establishment LLC, Oman | 50.00 | 12 | 50.00 | 10 |
Akzo Nobel India Limited, Kolkata, India | Publicly held, India | 25.24 | 50 | N/A | N/A |
Akzo Nobel Paints (Malaysia) Sdn. Bhd., Kuala Lumpur, Malaysia | Permodalan Nasional Berhad, Malaysia | 40.05 | 19 | \u2014 | \u2014 |
Others | 23 | 20 | |||
Total | 242 | 163 |
Composition of share capital at year-end 2024 | ||
in \u20ac | Authorized share\u00a0capital | Subscribed share\u00a0capital |
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 | 85,392,319 |
Total | 350,019,200 | 85,411,519 |
Non-controlling interests | |||||
2024 | 2025 | ||||
Group entity | Partner during 2025 | % | Equity stake in \u20ac millions | % | Equity stake in \u20ac millions |
Akzo Nobel Kemipol Kimya Sanayi ve Ticaret A.\u015e., Izmir, T\u00fcrkiye | Altan, Eyy\u00fcp and other family members | 49.00 | 30 | 49.00 | 27 |
International Paint of Shanghai Company Ltd, Shanghai, China | Shanghai Huayi Fine Chemical Co. Ltd and China National Shipbuilding Equipment & Materials Corp. | 49.00 | 22 | 49.00 | 27 |
PT ICI Paints Indonesia, Jakarta, Indonesia | PT DWI Satrya Utama, Indonesia | 45.00 | 30 | 45.00 | 23 |
Akzo Nobel Saudi Arabia Ltd, Dammam, Saudi Arabia | Yousuf Bin Ahmed Kanoo Co. Ltd, Saudi Arabia | 40.00 | 20 | 40.00 | 19 |
Akzo Nobel UAE Paints L.L.C., United Arab Emirates | Kanoo Group, United Arab Emirates | 40.00 | 17 | 40.00 | 15 |
Soci\u00e9t\u00e9 Tunisienne de Peintures Astral S.A., Megrine, Tunisia | S.A.I. SICAF and several people | 40.00 | 11 | 40.00 | 11 |
International Paint (Korea) Ltd, Busan, South-Korea | Noroo Holdings, South Korea | 40.00 | 8 | 40.00 | 11 |
Akzo Nobel Oman SAOC, Muscat, Oman | Omar Zawawi Establishment LLC, Oman | 50.00 | 12 | 50.00 | 10 |
Akzo Nobel India Limited, Kolkata, India | Publicly held, India | 25.24 | 50 | N/A | N/A |
Akzo Nobel Paints (Malaysia) Sdn. Bhd., Kuala Lumpur, Malaysia | Permodalan Nasional Berhad, Malaysia | 40.05 | 19 | \u2014 | \u2014 |
Others | 23 | 20 | |||
Total | 242 | 163 |
Accounting policies | ||
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 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. Provisions for liabilities to (former) employees are measured at present value, using actuarial assumptions and other methods. Any actuarial gains and losses are recognized in the statement of income in the period in which they arise. Leased sites, offices or stores may have to be restored to their original condition or sometimes decontaminated before being handed back at the end of the contractual period. If such legal obligations exist, and a reliable estimate of future expenses can be made, a provision is formed. Provisions are measured at net present value. The change of provisions as a result of the passage of time, changes in discount rates and changes to spend patterns are recognized in the statement of income under financing expenses. A contingent liability is a liability of uncertain timing or amount. Contingent liabilities are not recognized in the balance sheet because they are dependent on the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity, or because (i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or (ii) the amount of the obligation cannot be measured with sufficient reliability. |
Significant accounting estimates and judgments | ||
Provisions and contingent liabilities related to major legal matters Provisions and contingencies related to major legal matters require significant judgment. When legal matters are at an early stage, accounting judgments can be significant because of the high degree of uncertainty associated with determining whether a present obligation exists. Significant judgment also is required when estimating the probability, amount and timing of any outflows that may arise. As legal matters progress, management and legal advisers continuously assess the recognition criteria in to determine whether a provision should be recognized or adjusted. Professional advice guides the evaluation of litigation and similar obligations. Estimates for legal proceedings and regulatory matters remain sensitive to potential changes in assumptions used in determining the estimate. A wide range of possible outcomes may be applicable to pending legal proceedings, investigations or inquiries. As a result, quantifying a range of possible outcomes for individual matters may be impracticable. |
Movements in other provisions | |||||
in \u20ac millions | Restructuring of activities | Environmental costs | Liabilities to (former)\u00a0 employees | Sundry | Total |
Balance at January 1, 2025 | 70 | 37 | 103 | 80 | 290 |
Additions made during the year | 138 | 19 | 17 | 347 | 521 |
Utilization | (89) | (9) | (22) | (37) | (157) |
Amounts reversed during the year | (21) | \u2014 | (5) | (8) | (34) |
Unwind of discount | \u2014 | 2 | 4 | (1) | 5 |
Divestments | (2) | \u2014 | (2) | (3) | (7) |
Changes in exchange rates | (1) | (3) | (7) | (3) | (14) |
Balance at December 31, 2025 | 95 | 46 | 88 | 375 | 604 |
Non-current portion of provisions | 14 | 30 | 77 | 345 | 466 |
Current portion of provisions | 81 | 16 | 11 | 30 | 138 |
Balance at December 31, 2025 | 95 | 46 | 88 | 375 | 604 |
Accounting policies | ||
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 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. Provisions for liabilities to (former) employees are measured at present value, using actuarial assumptions and other methods. Any actuarial gains and losses are recognized in the statement of income in the period in which they arise. Leased sites, offices or stores may have to be restored to their original condition or sometimes decontaminated before being handed back at the end of the contractual period. If such legal obligations exist, and a reliable estimate of future expenses can be made, a provision is formed. Provisions are measured at net present value. The change of provisions as a result of the passage of time, changes in discount rates and changes to spend patterns are recognized in the statement of income under financing expenses. A contingent liability is a liability of uncertain timing or amount. Contingent liabilities are not recognized in the balance sheet because they are dependent on the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity, or because (i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or (ii) the amount of the obligation cannot be measured with sufficient reliability. |
Significant accounting estimates and judgments | ||
Provisions and contingent liabilities related to major legal matters Provisions and contingencies related to major legal matters require significant judgment. When legal matters are at an early stage, accounting judgments can be significant because of the high degree of uncertainty associated with determining whether a present obligation exists. Significant judgment also is required when estimating the probability, amount and timing of any outflows that may arise. As legal matters progress, management and legal advisers continuously assess the recognition criteria in to determine whether a provision should be recognized or adjusted. Professional advice guides the evaluation of litigation and similar obligations. Estimates for legal proceedings and regulatory matters remain sensitive to potential changes in assumptions used in determining the estimate. A wide range of possible outcomes may be applicable to pending legal proceedings, investigations or inquiries. As a result, quantifying a range of possible outcomes for individual matters may be impracticable. |
Movements in other provisions | |||||
in \u20ac millions | Restructuring of activities | Environmental costs | Liabilities to (former)\u00a0 employees | Sundry | Total |
Balance at January 1, 2025 | 70 | 37 | 103 | 80 | 290 |
Additions made during the year | 138 | 19 | 17 | 347 | 521 |
Utilization | (89) | (9) | (22) | (37) | (157) |
Amounts reversed during the year | (21) | \u2014 | (5) | (8) | (34) |
Unwind of discount | \u2014 | 2 | 4 | (1) | 5 |
Divestments | (2) | \u2014 | (2) | (3) | (7) |
Changes in exchange rates | (1) | (3) | (7) | (3) | (14) |
Balance at December 31, 2025 | 95 | 46 | 88 | 375 | 604 |
Non-current portion of provisions | 14 | 30 | 77 | 345 | 466 |
Current portion of provisions | 81 | 16 | 11 | 30 | 138 |
Balance at December 31, 2025 | 95 | 46 | 88 | 375 | 604 |
Accounting policies | ||
Cash and cash equivalents are measured at amortized cost, short-term investments are measured at fair value through profit and loss. 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 expenses. For more details on the accounting policy with regards to classification, valuation and impairment of | ||
Long-term and short-term borrowings are initially measured at fair value net of directly attributable transaction costs. Subsequent measurement is 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 prices, 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. | ||
Net debt | ||||||||||||
in \u20ac millions | Long-term borrowings | Short-term borrowings | Short-term investments | Cash and cash equivalents | 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, 2024 | 3,165 | 2,398 | (265) | (1,513) | 3,785 | Net debt at January 1, 2025 | 3,671 | 1,697 | (165) | (1,302) | 3,901 | |
Net cash from operating activities | \u2014 | \u2014 | \u2014 | (673) | (673) | Net cash from operating activities | \u2014 | \u2014 | \u2014 | (915) | (915) | |
Acquisitions | 3 | \u2014 | \u2014 | (2) | 1 | Acquisitions | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | |
Divestments | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | Divestments | (7) | (2) | 4 | (816) | (821) | |
Investments in short-term investments | \u2014 | \u2014 | (320) | 320 | \u2014 | Investments in short-term investments | \u2014 | \u2014 | (314) | 314 | \u2014 | |
Repayments of short-term investments | \u2014 | \u2014 | 423 | (423) | \u2014 | Repayments of short-term investments | \u2014 | \u2014 | 174 | (174) | \u2014 | |
Net cash from other investing activities | \u2014 | \u2014 | \u2014 | 237 | 237 | Net cash from other investing activities | \u2014 | \u2014 | \u2014 | 234 | 234 | |
Buy-out of non-controlling interests | \u2014 | \u2014 | \u2014 | 4 | 4 | Buy-out of non-controlling interests | \u2014 | \u2014 | \u2014 | 17 | 17 | |
Net gain/loss from changes in fair value | \u2014 | \u2014 | (3) | \u2014 | (3) | Net gain/loss from changes in fair value | \u2014 | \u2014 | (2) | \u2014 | (2) | |
Unwind of discount and amortized cost | 12 | 6 | \u2014 | \u2014 | 18 | Unwind of discount and amortized cost | 13 | (12) | \u2014 | \u2014 | 1 | |
Proceeds from borrowings | 499 | 1,808 | \u2014 | (2,307) | \u2014 | Proceeds from borrowings | 507 | 1,946 | \u2014 | (2,453) | \u2014 | |
Borrowings repaid | \u2014 | (2,602) | \u2014 | 2,602 | \u2014 | Borrowings repaid | \u2014 | (3,035) | \u2014 | 3,035 | \u2014 | |
New/modification/disposal of lease contracts | 112 | \u2014 | \u2014 | \u2014 | 112 | New/modification/disposal of lease contracts | 107 | \u2014 | \u2014 | \u2014 | 107 | |
Transfers from long-term to short-term | (121) | 121 | \u2014 | \u2014 | \u2014 | Transfers from long-term to short-term | (614) | 614 | \u2014 | \u2014 | \u2014 | |
Movement bank overdrafts and short-term bank loans | \u2014 | (31) | \u2014 | 31 | \u2014 | Movement bank overdrafts and short-term bank loans | \u2014 | (13) | \u2014 | 13 | \u2014 | |
Dividends | \u2014 | \u2014 | \u2014 | 385 | 385 | Dividends | \u2014 | \u2014 | \u2014 | 382 | 382 | |
Net cash impact from discontinued operations | \u2014 | \u2014 | \u2014 | 5 | 5 | Net cash impact from discontinued operations | \u2014 | \u2014 | \u2014 | 1 | 1 | |
Changes in exchange rates | 1 | (3) | \u2014 | 32 | 30 | Changes in exchange rates | (7) | (3) | 1 | 46 | 37 | |
Net debt at December 31, 2024 | 3,671 | 1,697 | (165) | (1,302) | 3,901 | Net debt at December 31, 2025 | 3,670 | 1,192 | (302) | (1,618) | 2,942 |
Analysis of net debt by category | ||
in \u20ac millions, at December 31 | 2024 | 2025 |
Bonds issued | 3,433 | 3,434 |
Lease liabilities | 201 | 194 |
Other long-term borrowings | 37 | 42 |
Long-term borrowings | 3,671 | 3,670 |
Current portion of long-term borrowings | 87 | 586 |
Current portion of lease liabilities | 91 | 80 |
Debt to credit institutions | 1,515 | 523 |
Other short-term borrowings | 4 | 3 |
Short-term borrowings | 1,697 | 1,192 |
Total borrowings | 5,368 | 4,862 |
Short-term investments | (165) | (302) |
Cash and cash equivalents | (1,302) | (1,618) |
Net debt | 3,901 | 2,942 |
Bonds issued | ||
in \u20ac millions, at December 31 | 2024 | 2025 |
1 1/8% 2016/26 (\u20ac500 million) | 499 | \u2014 |
1 1/2% 2022/28 (\u20ac600 million) | 598 | 599 |
1 5/8% 2020/30 (\u20ac750 million) | 746 | 747 |
2% 2022/32 (\u20ac600 million) | 596 | 597 |
4% 2023/33 (\u20ac500 million) | 496 | 496 |
3 3/4% 2024/34 (\u20ac500 million) | 498 | 498 |
4% 2025/35 (\u20ac500 million) | \u2014 | 497 |
Total | 3,433 | 3,434 |
Aggregated maturities of long-term borrowings | ||
in \u20ac millions | 2027-2030 | After 2030 |
Bonds issued | 1,346 | 2,088 |
Lease liabilities | 168 | 26 |
Other long-term borrowings | 17 | 25 |
Total | 1,531 | 2,139 |
Cash and cash equivalents | ||
in \u20ac millions, at December 31 | 2024 | 2025 |
Cash on hand and in banks | 848 | 789 |
Short-term investments with a life up to three months | 454 | 829 |
Cash and cash equivalents in the balance sheet | 1,302 | 1,618 |
Debt to credit institutions | (29) | (13) |
Net cash and cash equivalents per statement of cash flows | 1,273 | 1,605 |
Bonds issued | ||
in \u20ac millions, at December 31 | 2024 | 2025 |
1 1/8% 2016/26 (\u20ac500 million) | 499 | \u2014 |
1 1/2% 2022/28 (\u20ac600 million) | 598 | 599 |
1 5/8% 2020/30 (\u20ac750 million) | 746 | 747 |
2% 2022/32 (\u20ac600 million) | 596 | 597 |
4% 2023/33 (\u20ac500 million) | 496 | 496 |
3 3/4% 2024/34 (\u20ac500 million) | 498 | 498 |
4% 2025/35 (\u20ac500 million) | \u2014 | 497 |
Total | 3,433 | 3,434 |
Aggregated maturities of long-term borrowings | ||
in \u20ac millions | 2027-2030 | After 2030 |
Bonds issued | 1,346 | 2,088 |
Lease liabilities | 168 | 26 |
Other long-term borrowings | 17 | 25 |
Total | 1,531 | 2,139 |
Cash and cash equivalents | ||
in \u20ac millions, at December 31 | 2024 | 2025 |
Cash on hand and in banks | 848 | 789 |
Short-term investments with a life up to three months | 454 | 829 |
Cash and cash equivalents in the balance sheet | 1,302 | 1,618 |
Debt to credit institutions | (29) | (13) |
Net cash and cash equivalents per statement of cash flows | 1,273 | 1,605 |
Cash and cash equivalents | ||
in \u20ac millions, at December 31 | 2024 | 2025 |
Cash on hand and in banks | 848 | 789 |
Short-term investments with a life up to three months | 454 | 829 |
Cash and cash equivalents in the balance sheet | 1,302 | 1,618 |
Debt to credit institutions | (29) | (13) |
Net cash and cash equivalents per statement of cash flows | 1,273 | 1,605 |
Accounting policies | ||
Trade and other payables are measured at amortized cost, using the effective interest rate method. |
Trade and other payables | ||
in \u20ac millions, at December 31 | 2024 | 2025 |
Trade payables | 2,220 | 2,157 |
Taxes and social security contributions | 160 | 197 |
Amounts payable to employees | 245 | 222 |
Interest | 59 | 76 |
FX contracts | 16 | 10 |
Dividends | 2 | 1 |
Other current liabilities | 38 | 27 |
Total | 2,740 | 2,690 |
Accounting policies | ||
AkzoNobel uses the indirect cash flow model. Interest paid is classified as an operating cash flow and interest received as an investing cash flow. Dividends received are classified as investing cash flow and dividends paid are classified as financing cash flow. Acquisitions or divestments of subsidiaries are presented net of cash and cash equivalents acquired or disposed of, respectively, and net of taxes paid. Cash flows from derivatives are recognized in the statement of cash flows in the same category as the hedged items. |
Changes in working capital as per consolidated statement of cash flows | ||
in \u20ac millions | 2024 | 2025 |
Trade and other receivables | 12 | (50) |
Inventories | (83) | 49 |
Trade and other payables | (135) | 167 |
Total | (206) | 166 |
Free cash flow | ||
in \u20ac millions | 2024 | 2025 |
Net cash generated from/(used for) operating activities | 673 | 915 |
Capital expenditures | (306) | (309) |
Free cash flow | 367 | 606 |
Shares held by the members of the Supervisory Board | ||
Number of shares at year-end | 2024 | 2025 |
Ben Noteboom | 2,300 | 2,300 |
Ester Baiget | \u2014 | \u2014 |
Hans Van Bylen | \u2014 | \u2014 |
Jaska de Bakker | \u2014 | \u2014 |
Hans-Joachim M\u00fcller | \u2014 | \u2014 |
Wouter Kolk | \u2014 | \u2014 |
Ute Wolf | \u2014 | \u2014 |
Shares held by the Board of Management | ||
Number of shares at year-end | 2024 | 2025 |
Greg Poux-Guillaume | 7,134 | 31,826 |
Maarten de Vries | 26,617 | 36,929 |
Accounting policies | ||
Classification and measurement On initial recognition, financial assets are measured at fair value (plus transaction costs, in the case of assets not subsequently measured at fair value through profit or loss (FVTPL)). | ||
For the purpose of subsequent measurement, financial assets are classified as measured at amortized cost, fair value through profit or loss or fair value through other comprehensive income (FVOCI). The classification of a financial asset is determined at initial recognition, but if certain conditions are met, an asset may be subject to reclassification. | ||
A financial asset is measured at amortized cost if it meets both of the following conditions: 1. It is held within a business model, the objective of which is to hold assets to collect contractual cash flows; and 2. Its contractual terms give rise, on specified dates, to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding. | ||
A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as FVTPL: 1. It is held within a business model, the objective of which is achieved by both collecting contractual cash flows and selling financial assets; and 2. Its contractual terms give rise, on specified dates, to cash flows that are SPPI on the principal amount outstanding. | ||
All financial assets not classified as measured at amortized cost or measured at FVOCI, as described above, (e.g. financial assets held for trading and those that are managed and whose performance is evaluated on a fair value basis) are measured at FVTPL. |
Derivatives 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 counter 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. | ||
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-months 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. |
Maturity of liabilities and cash outflows* | |||
in \u20ac millions | Less than 1 year | Between 1 and 5 years | Over 5 years |
At December 31, 2024 | |||
Borrowings | 1,606 | 1,111 | 2,376 |
Interest on borrowings | 134 | 287 | 187 |
Lease liabilities | 92 | 184 | 50 |
Trade and other payables | 2,676 | ||
FX contracts (hedges) | |||
Outflow | 2,714 | \u2014 | \u2014 |
Inflow | (2,714) | \u2014 | \u2014 |
Total | 4,508 | 1,582 | 2,613 |
At December 31, 2025 | |||
Borrowings | 1,112 | 1,367 | 2,125 |
Interest on borrowings | 120 | 351 | 217 |
Lease liabilities | 82 | 184 | 36 |
Trade and other payables | 2,618 | \u2014 | \u2014 |
FX contracts (hedges) | |||
Outflow | 2,514 | \u2014 | \u2014 |
Inflow | (2,518) | \u2014 | \u2014 |
Total | 3,928 | 1,902 | 2,378 |
*Amounts are the contractual, undiscounted cash flows |
Hedged notional amounts at year-end1 | ||||
Buy | Sell | Buy | Sell | |
in \u20ac millions | 2024 | 2024 | 2025 | 2025 |
US dollar | 362 | 678 | 339 | 576 |
Pound sterling | 820 | 46 | 925 | 52 |
Chinese yuan | 66 | 128 | 99 | 52 |
Brazilian real | 26 | 38 | 10 | 147 |
Thai baht | 16 | 116 | 8 | 109 |
Australian dollar | 1 | 78 | \u2014 | 51 |
Korean won | 5 | 30 | 8 | 41 |
Moroccan dirham | \u2014 | 21 | 12 | 37 |
Taiwan dollar | 13 | 47 | 4 | 34 |
South African rand | 6 | 63 | \u2014 | 47 |
Other2 | 192 | 298 | 158 | 205 |
Total | 1,507 | 1,543 | 1,563 | 1,351 |
Adjusted EBITDA | ||
in \u20ac millions | 2024 | 2025 |
Operating income | 917 | 1,164 |
Depreciation and amortization* | 365 | 363 |
Identified items | 196 | (83) |
Adjusted EBITDA | 1,478 | 1,444 |
Leverage ratio | ||
in \u20ac millions | 2024 | 2025 |
Net debt* | 3,901 | 2,942 |
Net debt/Adjusted EBITDA | 2.6 | 2.0 |
Fair value per financial instrument category | ||||||
Carrying value per IFRS 9 category | ||||||
in \u20ac millions | Carrying amount | Out of scope of IFRS7 | Measured at amortized cost | Measured at fair value through profit or loss | Total carrying value | Fair value of items measured at amortized cost |
December 31, 2024 | ||||||
Financial non-current assets1 | 1,274 | 1,013 | 242 | 19 | 261 | 250 |
Trade and other receivables2 | 2,498 | 258 | 2,224 | 16 | 2,240 | 2,224 |
Short-term investments | 165 | \u2014 | \u2014 | 165 | 165 | \u2014 |
Cash and cash equivalents | 1,302 | \u2014 | 1,302 | \u2014 | 1,302 | 1,302 |
Total financial assets | 5,239 | 1,271 | 3,768 | 200 | 3,968 | 3,776 |
Long-term borrowings | 3,671 | \u2014 | 3,671 | \u2014 | 3,671 | 3,559 |
Short-term borrowings | 1,697 | \u2014 | 1,697 | \u2014 | 1,697 | 1,697 |
Trade and other payables 3 | 2,740 | 405 | 2,319 | 16 | 2,335 | 2,319 |
Total financial liabilities | 8,108 | 405 | 7,687 | 16 | 7,703 | 7,575 |
December 31, 2025 | ||||||
Financial non-current assets1 | 1,127 | 966 | 155 | 6 | 161 | 155 |
Trade and other receivables2 | 2,403 | 226 | 2,161 | 16 | 2,177 | 2,162 |
Short-term investments | 302 | \u2014 | \u2014 | 302 | 302 | \u2014 |
Cash and cash equivalents | 1,618 | \u2014 | 1,618 | \u2014 | 1,618 | 1,618 |
Total financial assets | 5,450 | 1,192 | 3,934 | 324 | 4,258 | 3,935 |
Long-term borrowings | 3,670 | \u2014 | 3,670 | \u2014 | 3,670 | 3,577 |
Short-term borrowings | 1,192 | \u2014 | 1,192 | \u2014 | 1,192 | 1,190 |
Trade and other payables 3 | 2,690 | 419 | 2,261 | 10 | 2,271 | 2,261 |
Total financial liabilities | 7,552 | 419 | 7,123 | 10 | 7,133 | 7,028 |
1 \u20ac966 million (2024: \u20ac1,013 million) out of scope for IFRS7 mainly relates to pension assets (refer to Note 14), \u20ac155 million (2024: \u20ac242 million) measured at amortized cost relates to loans and receivables and various other financial non-current assets (refer to Note 14); \u20ac6 million (2024: \u20ac19 million) measured at FVTPL relates to other financial instruments (2024: \u20ac12 million long-term investments and \u20ac7 million other financial instruments) (refer to Note 14). 2 \u20ac226 million (2024: \u20ac258 million) out of scope for IFRS7 mainly relates to (non-)income taxes receivable (refer to Note 16), \u20ac2,161 million (2024: \u20ac2,224 million) relates to the remainder of trade and other receivables (refer to Note 16) and \u20ac16 million (2024: \u20ac16 million) relates to FX contracts measured at fair value through 3 \u20ac419 million (2024: \u20ac405 million) out of scope for IFRS7 mainly relates to payables to employees and (non-)income taxes payable (refer to Note 21), \u20ac2,261 million (2024: \u20ac2,319 million) relates to the remainder of trade and other payables (refer to Note 21) and \u20ac10 million (2024: \u20ac16 million) relates to FX contracts |
Sensitivities of financial instruments recorded in the balance sheet at year-end 2025 | ||
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\u2019s expectation for reasonably possible* 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% (2024 : 10%) strengthening of other currencies versus US dollar A 10% (2024: 10%) strengthening of other currencies versus the pound sterling A 10% (2024 : 10%) strengthening of other currencies versus Chinese yuan | Profit \u20ac33 million (2024: profit \u20ac21 million). Loss \u20ac1 million (2024: profit \u20ac1 million) Profit \u20ac1 million ( 2024: 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\u2019s expectation for reasonably possible * 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 (2024: 100 basis points) increase of EUR interest rates A 100 basis points (2024: 100 basis points) increase of USD interest rates A 100 basis points (2024: 100 basis points) increase of GBP interest rates | Loss \u20ac1 million (2024 : loss \u20ac10 million) Profit \u20ac1 million (2024: profit \u20ac1 million) Nil (2024: profit \u20ac1 million) |
Hedged notional amounts at year-end1 | ||||
Buy | Sell | Buy | Sell | |
in \u20ac millions | 2024 | 2024 | 2025 | 2025 |
US dollar | 362 | 678 | 339 | 576 |
Pound sterling | 820 | 46 | 925 | 52 |
Chinese yuan | 66 | 128 | 99 | 52 |
Brazilian real | 26 | 38 | 10 | 147 |
Thai baht | 16 | 116 | 8 | 109 |
Australian dollar | 1 | 78 | \u2014 | 51 |
Korean won | 5 | 30 | 8 | 41 |
Moroccan dirham | \u2014 | 21 | 12 | 37 |
Taiwan dollar | 13 | 47 | 4 | 34 |
South African rand | 6 | 63 | \u2014 | 47 |
Other2 | 192 | 298 | 158 | 205 |
Total | 1,507 | 1,543 | 1,563 | 1,351 |
Adjusted EBITDA | ||
in \u20ac millions | 2024 | 2025 |
Operating income | 917 | 1,164 |
Depreciation and amortization* | 365 | 363 |
Identified items | 196 | (83) |
Adjusted EBITDA | 1,478 | 1,444 |
Leverage ratio | ||
in \u20ac millions | 2024 | 2025 |
Net debt* | 3,901 | 2,942 |
Net debt/Adjusted EBITDA | 2.6 | 2.0 |
Fair value per financial instrument category | ||||||
Carrying value per IFRS 9 category | ||||||
in \u20ac millions | Carrying amount | Out of scope of IFRS7 | Measured at amortized cost | Measured at fair value through profit or loss | Total carrying value | Fair value of items measured at amortized cost |
December 31, 2024 | ||||||
Financial non-current assets1 | 1,274 | 1,013 | 242 | 19 | 261 | 250 |
Trade and other receivables2 | 2,498 | 258 | 2,224 | 16 | 2,240 | 2,224 |
Short-term investments | 165 | \u2014 | \u2014 | 165 | 165 | \u2014 |
Cash and cash equivalents | 1,302 | \u2014 | 1,302 | \u2014 | 1,302 | 1,302 |
Total financial assets | 5,239 | 1,271 | 3,768 | 200 | 3,968 | 3,776 |
Long-term borrowings | 3,671 | \u2014 | 3,671 | \u2014 | 3,671 | 3,559 |
Short-term borrowings | 1,697 | \u2014 | 1,697 | \u2014 | 1,697 | 1,697 |
Trade and other payables 3 | 2,740 | 405 | 2,319 | 16 | 2,335 | 2,319 |
Total financial liabilities | 8,108 | 405 | 7,687 | 16 | 7,703 | 7,575 |
December 31, 2025 | ||||||
Financial non-current assets1 | 1,127 | 966 | 155 | 6 | 161 | 155 |
Trade and other receivables2 | 2,403 | 226 | 2,161 | 16 | 2,177 | 2,162 |
Short-term investments | 302 | \u2014 | \u2014 | 302 | 302 | \u2014 |
Cash and cash equivalents | 1,618 | \u2014 | 1,618 | \u2014 | 1,618 | 1,618 |
Total financial assets | 5,450 | 1,192 | 3,934 | 324 | 4,258 | 3,935 |
Long-term borrowings | 3,670 | \u2014 | 3,670 | \u2014 | 3,670 | 3,577 |
Short-term borrowings | 1,192 | \u2014 | 1,192 | \u2014 | 1,192 | 1,190 |
Trade and other payables 3 | 2,690 | 419 | 2,261 | 10 | 2,271 | 2,261 |
Total financial liabilities | 7,552 | 419 | 7,123 | 10 | 7,133 | 7,028 |
1 \u20ac966 million (2024: \u20ac1,013 million) out of scope for IFRS7 mainly relates to pension assets (refer to Note 14), \u20ac155 million (2024: \u20ac242 million) measured at amortized cost relates to loans and receivables and various other financial non-current assets (refer to Note 14); \u20ac6 million (2024: \u20ac19 million) measured at FVTPL relates to other financial instruments (2024: \u20ac12 million long-term investments and \u20ac7 million other financial instruments) (refer to Note 14). 2 \u20ac226 million (2024: \u20ac258 million) out of scope for IFRS7 mainly relates to (non-)income taxes receivable (refer to Note 16), \u20ac2,161 million (2024: \u20ac2,224 million) relates to the remainder of trade and other receivables (refer to Note 16) and \u20ac16 million (2024: \u20ac16 million) relates to FX contracts measured at fair value through 3 \u20ac419 million (2024: \u20ac405 million) out of scope for IFRS7 mainly relates to payables to employees and (non-)income taxes payable (refer to Note 21), \u20ac2,261 million (2024: \u20ac2,319 million) relates to the remainder of trade and other payables (refer to Note 21) and \u20ac10 million (2024: \u20ac16 million) relates to FX contracts |
Sensitivities of financial instruments recorded in the balance sheet at year-end 2025 | ||
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\u2019s expectation for reasonably possible* 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% (2024 : 10%) strengthening of other currencies versus US dollar A 10% (2024: 10%) strengthening of other currencies versus the pound sterling A 10% (2024 : 10%) strengthening of other currencies versus Chinese yuan | Profit \u20ac33 million (2024: profit \u20ac21 million). Loss \u20ac1 million (2024: profit \u20ac1 million) Profit \u20ac1 million ( 2024: 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\u2019s expectation for reasonably possible * 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 (2024: 100 basis points) increase of EUR interest rates A 100 basis points (2024: 100 basis points) increase of USD interest rates A 100 basis points (2024: 100 basis points) increase of GBP interest rates | Loss \u20ac1 million (2024 : loss \u20ac10 million) Profit \u20ac1 million (2024: profit \u20ac1 million) Nil (2024: profit \u20ac1 million) |
Hedged notional amounts at year-end1 | ||||
Buy | Sell | Buy | Sell | |
in \u20ac millions | 2024 | 2024 | 2025 | 2025 |
US dollar | 362 | 678 | 339 | 576 |
Pound sterling | 820 | 46 | 925 | 52 |
Chinese yuan | 66 | 128 | 99 | 52 |
Brazilian real | 26 | 38 | 10 | 147 |
Thai baht | 16 | 116 | 8 | 109 |
Australian dollar | 1 | 78 | \u2014 | 51 |
Korean won | 5 | 30 | 8 | 41 |
Moroccan dirham | \u2014 | 21 | 12 | 37 |
Taiwan dollar | 13 | 47 | 4 | 34 |
South African rand | 6 | 63 | \u2014 | 47 |
Other2 | 192 | 298 | 158 | 205 |
Total | 1,507 | 1,543 | 1,563 | 1,351 |
Adjusted EBITDA | ||
in \u20ac millions | 2024 | 2025 |
Operating income | 917 | 1,164 |
Depreciation and amortization* | 365 | 363 |
Identified items | 196 | (83) |
Adjusted EBITDA | 1,478 | 1,444 |
Leverage ratio | ||
in \u20ac millions | 2024 | 2025 |
Net debt* | 3,901 | 2,942 |
Net debt/Adjusted EBITDA | 2.6 | 2.0 |
Fair value per financial instrument category | ||||||
Carrying value per IFRS 9 category | ||||||
in \u20ac millions | Carrying amount | Out of scope of IFRS7 | Measured at amortized cost | Measured at fair value through profit or loss | Total carrying value | Fair value of items measured at amortized cost |
December 31, 2024 | ||||||
Financial non-current assets1 | 1,274 | 1,013 | 242 | 19 | 261 | 250 |
Trade and other receivables2 | 2,498 | 258 | 2,224 | 16 | 2,240 | 2,224 |
Short-term investments | 165 | \u2014 | \u2014 | 165 | 165 | \u2014 |
Cash and cash equivalents | 1,302 | \u2014 | 1,302 | \u2014 | 1,302 | 1,302 |
Total financial assets | 5,239 | 1,271 | 3,768 | 200 | 3,968 | 3,776 |
Long-term borrowings | 3,671 | \u2014 | 3,671 | \u2014 | 3,671 | 3,559 |
Short-term borrowings | 1,697 | \u2014 | 1,697 | \u2014 | 1,697 | 1,697 |
Trade and other payables 3 | 2,740 | 405 | 2,319 | 16 | 2,335 | 2,319 |
Total financial liabilities | 8,108 | 405 | 7,687 | 16 | 7,703 | 7,575 |
December 31, 2025 | ||||||
Financial non-current assets1 | 1,127 | 966 | 155 | 6 | 161 | 155 |
Trade and other receivables2 | 2,403 | 226 | 2,161 | 16 | 2,177 | 2,162 |
Short-term investments | 302 | \u2014 | \u2014 | 302 | 302 | \u2014 |
Cash and cash equivalents | 1,618 | \u2014 | 1,618 | \u2014 | 1,618 | 1,618 |
Total financial assets | 5,450 | 1,192 | 3,934 | 324 | 4,258 | 3,935 |
Long-term borrowings | 3,670 | \u2014 | 3,670 | \u2014 | 3,670 | 3,577 |
Short-term borrowings | 1,192 | \u2014 | 1,192 | \u2014 | 1,192 | 1,190 |
Trade and other payables 3 | 2,690 | 419 | 2,261 | 10 | 2,271 | 2,261 |
Total financial liabilities | 7,552 | 419 | 7,123 | 10 | 7,133 | 7,028 |
1 \u20ac966 million (2024: \u20ac1,013 million) out of scope for IFRS7 mainly relates to pension assets (refer to Note 14), \u20ac155 million (2024: \u20ac242 million) measured at amortized cost relates to loans and receivables and various other financial non-current assets (refer to Note 14); \u20ac6 million (2024: \u20ac19 million) measured at FVTPL relates to other financial instruments (2024: \u20ac12 million long-term investments and \u20ac7 million other financial instruments) (refer to Note 14). 2 \u20ac226 million (2024: \u20ac258 million) out of scope for IFRS7 mainly relates to (non-)income taxes receivable (refer to Note 16), \u20ac2,161 million (2024: \u20ac2,224 million) relates to the remainder of trade and other receivables (refer to Note 16) and \u20ac16 million (2024: \u20ac16 million) relates to FX contracts measured at fair value through 3 \u20ac419 million (2024: \u20ac405 million) out of scope for IFRS7 mainly relates to payables to employees and (non-)income taxes payable (refer to Note 21), \u20ac2,261 million (2024: \u20ac2,319 million) relates to the remainder of trade and other payables (refer to Note 21) and \u20ac10 million (2024: \u20ac16 million) relates to FX contracts |
Fair value per financial instrument category | ||||||
Carrying value per IFRS 9 category | ||||||
in \u20ac millions | Carrying amount | Out of scope of IFRS7 | Measured at amortized cost | Measured at fair value through profit or loss | Total carrying value | Fair value of items measured at amortized cost |
December 31, 2024 | ||||||
Financial non-current assets1 | 1,274 | 1,013 | 242 | 19 | 261 | 250 |
Trade and other receivables2 | 2,498 | 258 | 2,224 | 16 | 2,240 | 2,224 |
Short-term investments | 165 | \u2014 | \u2014 | 165 | 165 | \u2014 |
Cash and cash equivalents | 1,302 | \u2014 | 1,302 | \u2014 | 1,302 | 1,302 |
Total financial assets | 5,239 | 1,271 | 3,768 | 200 | 3,968 | 3,776 |
Long-term borrowings | 3,671 | \u2014 | 3,671 | \u2014 | 3,671 | 3,559 |
Short-term borrowings | 1,697 | \u2014 | 1,697 | \u2014 | 1,697 | 1,697 |
Trade and other payables 3 | 2,740 | 405 | 2,319 | 16 | 2,335 | 2,319 |
Total financial liabilities | 8,108 | 405 | 7,687 | 16 | 7,703 | 7,575 |
December 31, 2025 | ||||||
Financial non-current assets1 | 1,127 | 966 | 155 | 6 | 161 | 155 |
Trade and other receivables2 | 2,403 | 226 | 2,161 | 16 | 2,177 | 2,162 |
Short-term investments | 302 | \u2014 | \u2014 | 302 | 302 | \u2014 |
Cash and cash equivalents | 1,618 | \u2014 | 1,618 | \u2014 | 1,618 | 1,618 |
Total financial assets | 5,450 | 1,192 | 3,934 | 324 | 4,258 | 3,935 |
Long-term borrowings | 3,670 | \u2014 | 3,670 | \u2014 | 3,670 | 3,577 |
Short-term borrowings | 1,192 | \u2014 | 1,192 | \u2014 | 1,192 | 1,190 |
Trade and other payables 3 | 2,690 | 419 | 2,261 | 10 | 2,271 | 2,261 |
Total financial liabilities | 7,552 | 419 | 7,123 | 10 | 7,133 | 7,028 |
1 \u20ac966 million (2024: \u20ac1,013 million) out of scope for IFRS7 mainly relates to pension assets (refer to Note 14), \u20ac155 million (2024: \u20ac242 million) measured at amortized cost relates to loans and receivables and various other financial non-current assets (refer to Note 14); \u20ac6 million (2024: \u20ac19 million) measured at FVTPL relates to other financial instruments (2024: \u20ac12 million long-term investments and \u20ac7 million other financial instruments) (refer to Note 14). 2 \u20ac226 million (2024: \u20ac258 million) out of scope for IFRS7 mainly relates to (non-)income taxes receivable (refer to Note 16), \u20ac2,161 million (2024: \u20ac2,224 million) relates to the remainder of trade and other receivables (refer to Note 16) and \u20ac16 million (2024: \u20ac16 million) relates to FX contracts measured at fair value through 3 \u20ac419 million (2024: \u20ac405 million) out of scope for IFRS7 mainly relates to payables to employees and (non-)income taxes payable (refer to Note 21), \u20ac2,261 million (2024: \u20ac2,319 million) relates to the remainder of trade and other payables (refer to Note 21) and \u20ac10 million (2024: \u20ac16 million) relates to FX contracts |
Fair value per financial instrument category | ||||||
Carrying value per IFRS 9 category | ||||||
in \u20ac millions | Carrying amount | Out of scope of IFRS7 | Measured at amortized cost | Measured at fair value through profit or loss | Total carrying value | Fair value of items measured at amortized cost |
December 31, 2024 | ||||||
Financial non-current assets1 | 1,274 | 1,013 | 242 | 19 | 261 | 250 |
Trade and other receivables2 | 2,498 | 258 | 2,224 | 16 | 2,240 | 2,224 |
Short-term investments | 165 | \u2014 | \u2014 | 165 | 165 | \u2014 |
Cash and cash equivalents | 1,302 | \u2014 | 1,302 | \u2014 | 1,302 | 1,302 |
Total financial assets | 5,239 | 1,271 | 3,768 | 200 | 3,968 | 3,776 |
Long-term borrowings | 3,671 | \u2014 | 3,671 | \u2014 | 3,671 | 3,559 |
Short-term borrowings | 1,697 | \u2014 | 1,697 | \u2014 | 1,697 | 1,697 |
Trade and other payables 3 | 2,740 | 405 | 2,319 | 16 | 2,335 | 2,319 |
Total financial liabilities | 8,108 | 405 | 7,687 | 16 | 7,703 | 7,575 |
December 31, 2025 | ||||||
Financial non-current assets1 | 1,127 | 966 | 155 | 6 | 161 | 155 |
Trade and other receivables2 | 2,403 | 226 | 2,161 | 16 | 2,177 | 2,162 |
Short-term investments | 302 | \u2014 | \u2014 | 302 | 302 | \u2014 |
Cash and cash equivalents | 1,618 | \u2014 | 1,618 | \u2014 | 1,618 | 1,618 |
Total financial assets | 5,450 | 1,192 | 3,934 | 324 | 4,258 | 3,935 |
Long-term borrowings | 3,670 | \u2014 | 3,670 | \u2014 | 3,670 | 3,577 |
Short-term borrowings | 1,192 | \u2014 | 1,192 | \u2014 | 1,192 | 1,190 |
Trade and other payables 3 | 2,690 | 419 | 2,261 | 10 | 2,271 | 2,261 |
Total financial liabilities | 7,552 | 419 | 7,123 | 10 | 7,133 | 7,028 |
1 \u20ac966 million (2024: \u20ac1,013 million) out of scope for IFRS7 mainly relates to pension assets (refer to Note 14), \u20ac155 million (2024: \u20ac242 million) measured at amortized cost relates to loans and receivables and various other financial non-current assets (refer to Note 14); \u20ac6 million (2024: \u20ac19 million) measured at FVTPL relates to other financial instruments (2024: \u20ac12 million long-term investments and \u20ac7 million other financial instruments) (refer to Note 14). 2 \u20ac226 million (2024: \u20ac258 million) out of scope for IFRS7 mainly relates to (non-)income taxes receivable (refer to Note 16), \u20ac2,161 million (2024: \u20ac2,224 million) relates to the remainder of trade and other receivables (refer to Note 16) and \u20ac16 million (2024: \u20ac16 million) relates to FX contracts measured at fair value through 3 \u20ac419 million (2024: \u20ac405 million) out of scope for IFRS7 mainly relates to payables to employees and (non-)income taxes payable (refer to Note 21), \u20ac2,261 million (2024: \u20ac2,319 million) relates to the remainder of trade and other payables (refer to Note 21) and \u20ac10 million (2024: \u20ac16 million) relates to FX contracts |
Sensitivities of financial instruments recorded in the balance sheet at year-end 2025 | ||
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\u2019s expectation for reasonably possible* 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% (2024 : 10%) strengthening of other currencies versus US dollar A 10% (2024: 10%) strengthening of other currencies versus the pound sterling A 10% (2024 : 10%) strengthening of other currencies versus Chinese yuan | Profit \u20ac33 million (2024: profit \u20ac21 million). Loss \u20ac1 million (2024: profit \u20ac1 million) Profit \u20ac1 million ( 2024: 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\u2019s expectation for reasonably possible * 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 (2024: 100 basis points) increase of EUR interest rates A 100 basis points (2024: 100 basis points) increase of USD interest rates A 100 basis points (2024: 100 basis points) increase of GBP interest rates | Loss \u20ac1 million (2024 : loss \u20ac10 million) Profit \u20ac1 million (2024: profit \u20ac1 million) Nil (2024: profit \u20ac1 million) |