UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant
to Rule 13a-16 or 15d-16 of
The Securities Exchange Act of 1934
April 20, 2005
AKZO
NOBEL N.V.
(Translation of registrant's name into English)
76, Velperweg,
6824 BM Arnhem, the Netherlands
(Address of principal executive offices)
0 - 017444
(Commission file number)
Indicate
by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F:
Form
20-F 
Form
40-F
Indicate
by check mark whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No
SIGNATURES
Pursuant to the requirements
of Section 12 of the Securities Exchange Act of
1934 the registrant has duly caused this report to be signed on its behalf of
the undersigned, thereto duly authorized.
Akzo Nobel N.V.
| Name : | F.H. Hensel | Name : | J.J.M. Derckx |
| Title : | Senior Vice President Finance | Title : | Director Corporate Control |
Dated : April 20, 2005
 |
IFRS-based
reporting for 2004 & implementation of IAS 32 and 39 |
Presentation of financial information for 2004 in accordance with International Financial Reporting Standards
Introduction
Up to December 31, 2004,
Akzo Nobel published its financial statements under Generally Accepted Accounting
Principles in the Netherlands (NL GAAP). From 2005 onwards, the Company will
issue its consolidated financial statements in accordance with International
Accounting Standards (IAS), International Financial Reporting Standards (IFRS)1, and Interpretations. This change applies
to all financial reporting for accounting periods beginning on or after January
1, 2005. Akzo Nobel’s first IFRS results will be those for the first quarter
of 2005, and the Company’s first Annual Report under IFRS will be that
for 2005. As the Company publishes comparative information for one year in its
Annual Report, the transition date to IFRS will be January 1, 2004.
The report “IFRS based reporting Q-1 – Q-3 2004” was published on December 14, 2004. Compared to this report, an adjustment was made to the IFRS-based balance sheets, namely an increase in deferred tax assets and shareholders’ equity of EUR 17 million. The benefits receivable under the U.S. Medicare Prescription Drug, Improvement and Modernization Act of 2003 are tax free, whereas in the earlier report it was assumed that they would be taxable. This has no impact on the results for the quarters of 2004. The information originally included in the report “IFRS based reporting Q-1 – Q-3 2004” has been adjusted accordingly and is now included in this report, so that it provides full and up-to-date information on the impact of IFRS on all quarters and for the year 2004.
IFRS impact –
net income up; shareholders’ equity down; funds balance unchanged
This report gives a detailed
overview of the consequences for the Company of accounting under IFRS. In summary,
the impact of IFRS on the Company’s accounts is an increase in net income
for 2004 of EUR 89 million, but a decline in shareholders’ equity, at December
31, 2004, of EUR 410 million. This is mainly attributable to the differences
in the method of accounting under IFRS for pensions and other postretirement
benefits, the recognition of deferred taxes on intercompany profit, the recognition
of the payment received from Pfizer for the asenapine cooperation, and the recognition
of goodwill. For the most part, the changed accounting is a matter of timing
of the recognition of assets, liabilities, and related results. Consequently,
volatility of earnings under IFRS could increase in the future. However, there
is no impact on the underlying cash flows of the businesses. We currently do
not expect that the changed accounting will have a significant impact on our
dividend payments.
| 1 References to IFRS in this document relate to International Accounting Standards and International Financial Reporting Standards. |
1
 |
IFRS-based
reporting for 2004 & implementation of IAS 32 and 39 |
Presentation
of IFRS-based information
The purpose of this report
is to provide information on the expected impact of the adoption of IFRS on
the Company’s reported performance and financial position. It consists
of the following:
| - changes in accounting principles compared to NL GAAP, due to the adoption of IFRS |
| - reconciliation of shareholders’ equity at January 1, 2004 |
| - breakdown of IFRS shareholders’ equity at January 1, 2004 |
| - IFRS-based balance sheet and segment reporting at January 1, 2004 |
| - reconciliation of full year 2004 net income |
| - IFRS-based statements of income for the quarters and year 2004 |
| - IFRS-based segment reporting for the quarters and year 2004 |
| - reconciliation of shareholders’ equity at December 31, 2004 |
| - breakdown of IFRS shareholders’ equity at December 31, 2004 |
| - IFRS-based balance sheet and segment reporting at December 31, 2004 |
| - IFRS-based statement of changes in shareholders’ equity for the full year 2004 |
| - IFRS-based statement of cash flows for the full year 2004 |
The figures in this report have been prepared on the basis of the standards expected to be applicable to the Annual Report on 2005. However, IFRS is subject to ongoing review and endorsement by the EU or possible amendment by interpretative guidance from the IASB. IFRS could therefore be subject to change. As a consequence, these figures and the discussion in this report should be treated with appropriate caution as they may need to be revised in light of such changes. This report is indicative of the Company’s future results and, for the reasons noted above, may not be representative of the impact of IFRS on the Company’s results of operations or financial condition for fiscal year 2005, or any future period. We will update this information for any changes in standards or interpretation as and when these changes are made. The figures in this report are unaudited.
Changes in accounting
principles due to the adoption of IFRS
Certain standards included
in IFRS had already been incorporated in NL GAAP. This concerns, inter
alia, accounting for intangible assets other
than goodwill, which also includes accounting for development costs. As there
are no differences, this has not resulted in any changes in accounting principles.
For those standards not included in NL GAAP, we have adjusted our accounting principles as described below. For accounting principles which we do not expect to change, we refer to our Annual Report 2004, pages 80 to 83.
Employee benefits
Pensions and
other postretirement benefits
Until December 31, 2004,
the Company accounted for pensions and other postretirement benefits in accordance
with SFAS 87 and SFAS 106.
For the implementation of IAS 19 Employee Benefits in respect of pensions and other postretirement benefits, the Company has to recognize the funded status, at January 1, 2004, of the projected benefit obligation (PBO) in so far as this is not covered by provisions
2
|
IFRS-based
reporting for 2004 & implementation of IAS 32 and 39 |
or prepaid pension assets in the NL GAAP balance sheet. Any unvested portion of past service cost at that date is to be excluded.
On January 1, 2004, the Company had a significant deficit for its pension and other postretirement benefit plans. The deficit in excess of provisions and prepaid pension assets in the NL GAAP balance sheet has been charged against shareholders’ equity in the IFRS opening balance sheet at January 1, 2004. This concerns an amount of EUR 1,342 million after taxes. At December 31, 2004, this amount was EUR 1,232 million after taxes.
In the NL GAAP balance sheet, the Company has also recognized a so-called minimum pension liability for the deficit determined on the accumulated benefit obligation (ABO) level, as required under SFAS 87. This consists of an after-tax charge against shareholders’ equity (January 1, 2004: EUR 824 million; December 31, 2004: EUR 759 million) and recognition of an intangible asset (January 1, 2004: EUR 165 million; December 31, 2004: EUR 137 million). As these are not allowed under IAS 19, the minimum pension liability-related entries have been reversed, partly offsetting the aforementioned recognition of the deficits on a PBO basis.
The consequences of the U.S. Medicare Prescription Drug, Improvement and Modernization Act of 2003 have also been taken into account in the IFRS opening balance sheet. This has resulted in the recognition of a tax-free financial noncurrent asset of EUR 43 million (at December 31, 2004: EUR 48 million).
Going forward, the full recognition of the deficit at January 1, 2004, will result in lower net period pension costs for 2004, as the deferred losses under SFAS 87 and SFAS 106 no longer have to be amortized. As a result of the improved pension funding situation at December 31, 2004, IFRS-based 2005 pension charges are expected to drop by some EUR 50 million, compared to 2004.
Included in the 2004 net income effect of IAS 19 is an after-tax gain of EUR 43 million for the settlements/curtailments as a consequence of the Catalysts divestment.
Other employee
benefits
IAS 19 requires provisioning
of long-term employee benefits, such as payments on the occasion of a service
jubilee of an employee. This is not specifically required under NL GAAP, where
costs for such benefits often are recognized on a pay-as-you-go basis. The required
provision for other long-term benefits in accordance with IAS 19 amounts to
EUR 13 million, which is EUR 8 million after taxes (at December 31, 2004: also
EUR 13 million and EUR 8 million, respectively).
Revenues
General
Revenue under IFRS is defined
as the revenue from the sale and delivery of goods and services and royalty
income, net of rebates, discounts, and similar allowances, and net of sales
tax. Revenue is recognized when the significant risks and rewards have been
transferred to a third party.
3
|
IFRS-based
reporting for 2004 & implementation of IAS 32 and 39 |
The Company used to report royalty income under “Other results” in the statement of income. Under IFRS, royalty income is reclassified to “Revenues”. Also proceeds for certain services rendered by the Company, which used to be deducted from cost lines in the statement of income, have now been reclassified to “Revenues”.
Pfizer payment
In December 2003, the Company
received an initial payment of EUR 88 million (EUR 70 million after taxes) from
Pfizer for the codevelopment and comarketing agreement for asenapine. In accordance
with the contract and the spirit thereof, this payment is a nonrefundable reimbursement
of the expenses incurred by Akzo Nobel in prior years for the development of
asenapine-related know-how so far. In accordance with NL GAAP, such payment
was recognized as income immediately.
In accordance with IFRS revenue recognition rules, nonrefundable upfront fees are initially reported as deferred income and will be recognized as revenue based on the (expected) development costs over the remaining first part of the development period, currently anticipated to be from 2004 to 2007. At December 31, 2004 an amount was deferred of EUR 56 million (EUR 45 million after taxes)
This has the consequence that this payment which had already been recognized in 2003 NL GAAP income, is again recognized in IFRS revenues but now over the years 2004–2007.
Income
taxes
As allowed under NL GAAP,
the tax effect on the elimination of intercompany profit in inventories is based
on the tax rate of the country of the company sending the goods, thus fully
eliminating the intercompany sale in the statement of income. IFRS, however,
prescribes that tax on such elimination is to be based on the tax rate of the
country of the company receiving the goods.
As a consequence, the deferred tax asset related to intercompany profit has increased by EUR 76 million at January 1, 2004. At December 31, 2004, this amount was EUR 33 million. Going forward, the impact on earnings will be determined by the changes in levels of intercompany inventory in the various countries.
Furthermore, IFRS specifically prescribes that current and deferred tax assets and liabilities in countries which have separate tax rates for distributed and undistributed profits are measured at the tax rate applicable to undistributed profits. The income tax consequences of dividends are recognized when a liability to pay the dividend is recognized.
For NL GAAP in certain circumstances such current and deferred tax assets and liabilities can be measured at the tax rate applicable to distributed profits. The impact of this difference on the Company’s accounts is limited.
4
|
IFRS-based
reporting for 2004 & implementation of IAS 32 and 39 |
Business
combinations
Under NL GAAP, purchased
goodwill is capitalized and amortized. IFRS 3 prescribes that purchased goodwill
must be capitalized and not amortized, but tested for impairment annually.
Akzo Nobel has elected the transition option in IFRS 1 to apply IFRS 3 prospectively from the transition date. This option was chosen rather than to restate all previous business combinations. The impact of IFRS 3 and associated transitional arrangements on Akzo Nobel is as follows:
| - | all prior business combination accounting is frozen at the transition date; and |
| - | the value of goodwill is frozen at January 1, 2004, and amortization previously reported under NL GAAP for 2004 is removed for financial statements prepared under IFRS. |
Provisions
Discounting
IFRS, in principle, prescribes
discounting of all provisions, which is not always the case in NL GAAP. The
impact of discounting of provisions thus far undiscounted at January 1, 2004,
is a decrease in provisions of EUR 16 million, which is EUR 11 million after
taxes. At December 31, 2004, these amounts were EUR 29 million and EUR 20 million,
respectively.
Going forward, the interest accrued on discounted provisions will be recognized under financing charges. Under NL GAAP, such charges were included in operating income.
Restructuring
provisions
In accordance with NL GAAP,
restructuring provisions are recognized if the restructuring had been announced
to the employees involved before the date of the financial statements. Under
IFRS, a restructuring can only be recognized if this is announced before the
balance sheet date.
Restructurings for which provisions amounted to EUR 9 million (EUR 6 million after taxes) were announced in January 2004. Therefore, these provisions do not qualify for recognition under IFRS in the balance sheet at January 1, 2004, but are recognized under IFRS in the first quarter of 2004. In the quarters of 2004, certain restructuring provisions reported under NL GAAP also do not meet the IFRS recognition criteria and are deferred for recognition in the next quarter. At December 31, 2004, all provisions qualified for recognition under IFRS.
Share-based
payments
In accordance with NL GAAP,
the Company recognized expenses related to stock options as a direct charge
to shareholders’ equity when the related payments were incurred.
In accordance with IFRS 2, the Company’s stock option plans qualify as so-called cash-settled plans. As a consequence, the Company has to charge the fair value of the stock options against income (first spread over the vesting period and later over the remaining life of the options) and recognize a related liability in the balance sheet. This liability at January 1, 2004, amounted to EUR 11 million, which is EUR 8 million after taxes. At
5
|
IFRS-based
reporting for 2004 & implementation of IAS 32 and 39 |
December 31, 2004, these amounts were EUR 16 million and EUR 10 million, respectively. The fair value has been calculated using the binomial options valuation model. The charge to income over the relevant option vesting periods is adjusted to reflect actual and expected levels of vesting.
Nonconsolidated
companies
Valuation of the Company’s
interest in nonconsolidated companies is based as much as possible on IFRS,
as adopted by Akzo Nobel. The impact of the difference between NL GAAP and IFRS
for nonconsolidated companies on the Company’s accounts is limited.
Jointly controlled
companies
For interests in jointly
controlled legally incorporated companies IFRS prescribes that they must be
either proportionally consolidated or equity accounted as a nonconsolidated
company. The chosen method has to be applied to all such interests. Under NL
GAAP, the Company equity accounts most of the jointly controlled interests.
However, the joint venture with Sanofi-Synthélabo (for the antithrombotic
Arixtra®)
has been proportionally consolidated.
Under IFRS, the Company has elected to equity account all jointly controlled interests. The impact of the deconsolidation in the January 1, 2004 balance sheet of the joint venture with Sanofi-Synthélabo is not significant and does not affect shareholders’ equity or net income. Due to the change in setup in the first quarter of 2004, this joint venture ceased to exist and was replaced by a revenue arrangement based on future sales from jointly developed antithrombotic products.
It should be noted that the cooperation with Pfizer for asenapine is not legally incorporated. As a consequence, this cooperation is proportionally consolidated for both NL GAAP and IFRS.
Nonrecurring
items
In its NL GAAP statements,
the Company separately reported so-called nonrecurring items. These relate to
income and expenses resulting from normal business operations, which, because
of their size or nature, are disclosed separately to give a better understanding
of the underlying result for the period. These include items such as restructurings
and impairment charges, significant gains and losses on the disposal of businesses,
and costs related to major lawsuits and antitrust cases, not meeting the requirements
for extraordinary items.
NL GAAP operating income before nonrecurring items is one of the key figures management uses to assess the performance of the Company, as these figures better reflect the underlying trends in the results of the activities.
IFRS does not allow this concept. Therefore, the Company will not report IFRS earnings figures excluding nonrecurring items. However, for a better understanding of the Company’s earnings development, the most important elements of nonrecurring items will now be reported on a separate line within operating income in the statement of income.
6
|
IFRS-based
reporting for 2004 & implementation of IAS 32 and 39 |
Cumulative
translation differences
The Company chose the option
in IFRS 1 whereby cumulative translation differences in shareholders’ equity
are deemed to be zero at the date of transition. The negative NL GAAP balance
of EUR 1,045 million at January 1, 2004, is deducted from “Other reserves”,
which therefore starts with a negative balance of EUR 414 million. However,
as 2004 net income is higher than dividends paid during the year, the balance
of “Other reserves” and “Undistributed profit” at December
31, 2004, shows a positive balance of EUR 193 million. It should be noted that
if the Company would ever have negative “Other reserves”, in principle,
it will still be able to pay dividends but then from “Additional paid-in
capital”.
IFRS standards with a prospective impact
Financial
instruments
IFRS as applied for the
restated figures of 2004 does not include standards IAS 32 and 39 for financial
instruments. The Company has opted for the transition provision of IFRS 1 to
apply these standards as from January 1, 2005. The after-tax effect of the implementation
of IAS 32 and 39 on January 1, 2005, on balance, is a credit to shareholders’
equity of EUR 12 million. The principal effects of the implementation of IAS
32 and 39 are described per instrument below. Details on the Company’s
financial instruments can also be found on pages 102 and 103 of the 2004 Annual
Report.
It should be noted that the impact of the adoption of IAS 32 and 39 has been determined to the best of our present knowledge. The recognition of financial instruments is a very complex matter. As a consequence, our views and position could be subject to change.
Long-term borrowings
Long-term borrowings used
to be valued at nominal value, any placements costs or premium or discount on
issue used to be amortized on a straight line basis. IFRS prescribes that such
borrowings are valued at amortized cost applying the effective interest rate
method. The effect on shareholders’ equity at January 1, 2005, is a credit
of EUR 1 million after taxes.
Cash and cash
equivalents
Short-term investments
used to be valued at the lower of cost or market value. Under IFRS they need
to be valued at market value. The effect on shareholders’ equity at January
1, 2005, is an after-tax credit of EUR 1 million.
Forward exchange
contracts
Forward exchange contracts
concluded to hedge receivables or payables in foreign currency used to be valued
at spot rates prevailing at the balance sheet date. Foreign currency hedges
of anticipatory transactions or firm commitments used to be deferred in the
balance sheet until the hedged transactions had been reflected in the accounts.
Forward exchange contracts under IFRS need to be valued at fair value in the
balance sheet and changes in fair value are to be recognized in the statement
of income. The Company in principle will not apply hedge accounting for these
types of contracts. The effect on shareholders’ equity at January 1, 2005,
is an after-tax charge of EUR 1 million.
7
|
IFRS-based
reporting for 2004 & implementation of IAS 32 and 39 |
The Company used to net the value of the forward exchange contracts per contract partner. Under IFRS such netting is not allowed. As a consequence all contracts are recognized separately on the appropriate lines in the balance sheet.
Interest rate
derivatives
The Company holds certain
interest swaps and interest rate currency swaps to hedge fixed-rate interest-bearing
borrowings and in some cases foreign currency exchange risks. Interest rate
derivatives in a hedge relationship used not to be valued in the balance sheet.
The interest on the fixed and floating rate legs were recognized in the statement
of income on an accrual basis. The cross currency element in the interest rate
currency swaps was recognized in the balance sheet at the spot rate prevailing
at the balance sheet date. The changes in the values so calculated were recognized
in the statement of income to offset the currency exchange differences on the
borrowings in foreign currency. Under IFRS these contracts have to be valued
at fair value in the balance sheet. The Company will apply fair value hedge
accounting for these contracts. The impact on shareholders’ equity at January
1, 2005, on balance, is an after-tax charge of EUR 5 million.
The Company also has some forward rate agreements, for which no hedge accounting will be applied. The effect on shareholders’ equity per January 1, 2005, is negligible.
It should be noted that the Company used to net the recorded book value of the interest derivatives with the book value of the loans. Under IFRS this netting is not allowed. The instruments under IFRS now are recorded separately on the appropriate line items in the balance sheet.
Commodities
In order to cover the price
risk of natural gas the Company has entered into certain petroleum swaps and
gas futures, which have to be recognized at fair value in the balance sheet.
At present no hedge accounting will be applied for these contracts. The effect
on shareholders’ equity per January 1, 2005 is negligible.
Embedded derivative
Included in a long-term
contract to buy natural gas is an embedded derivative. The euro price at which
the gas in future will be bought is linked to the petroleum price denominated
in U.S. dollars. This embedded derivative under IFRS needs to be included in
the balance sheet at fair value. The effect on shareholders’ equity per
January 1, 2005 is an after-tax credit of EUR 16 million.
Emission
rights
Starting in 2005, governments
will grant CO2
emission allowances to certain companies.
IASB and IFRIC recently issued guidance on accounting for such allowances, which will have to be applied from 2006 onwards. The Company still has to decide whether it will adopt this standard earlier for the 2005 financial statements.
| Arnhem, April 19, 2005 | The Board of Management |
8
|
IFRS-based
reporting for 2004 & implementation of IAS 32 and 39 |
| R
E C O N C I L I A T I O N O F S H A R E H O L D E
R S ’ E Q U I T Y A T J A N U A R Y 1 , 2 0 0 4 |
|||||||
|
|
|||||||
| Millions of euros |
Capital
andreserves
|
Minimum
pension liability
|
Shareholders’
equity
|
||||
|
|
|
|
|
||||
|
NL
GAAP shareholders’ equity
|
|||||||
|
at
December 31, 2003
|
3,326 | (824 | ) | 2,502 | |||
|
Pensions
and other postretirement benefits
|
(1,299 | ) | 824 | (475 | ) | ||
|
Deferred
taxes on intercompany profit
|
76 | 76 | |||||
|
Pfizer
payment
|
(70 | ) | (70 | ) | |||
|
Discounting
of provisions
|
11 | 11 | |||||
|
Other
long-term employee benefits
|
(8 | ) | (8 | ) | |||
|
Share-based
payments
|
(8 | ) | (8 | ) | |||
|
Restructuring
provisions
|
6 | 6 | |||||
|
Other
|
12 | 12 | |||||
|
|
|
|
|||||
|
IFRS
shareholders’ equity at January 1, 2004
|
2,046 | 2,046 | |||||
|
|
|
|
|||||
|
S
H A R E H O L D E R S ’ E Q U I T Y A T J
A N U A R Y 1 , 2 0 0 4
|
|||||
|
|
|||||
|
Millions
of euros
|
IFRS
|
NL
GAAP
|
|||
|
|
|
|
|||
|
Subscribed
share capital
|
572 | 572 | |||
|
Additional
paid-in capital
|
1,803 | 1,803 | |||
|
Statutory
reserves
|
85 | 85 | |||
|
Cumulative
translation differences
|
(1,045 | ) | |||
|
Other
reserves and undistributed profit
|
(414 | ) | 1,911 | ||
|
|
|
||||
|
Capital
and reserves
|
2,046 | 3,326 | |||
|
Minimum
pension liability
|
(824 | ) | |||
|
|
|
||||
|
Shareholders’
equity
|
2,046 | 2,502 | |||
|
|
|
||||
9
|
IFRS-based
reporting for 2004 & implementation of IAS 32 and 39 |
|
C
O N D E N S E D C O N S O L I D A T E D B A L A
N C E S H E E T
A T J A N U A R Y 1 , 2 0 0 4 |
|||||
|
|
|||||
|
Millions
of euros
|
IFRS
|
NL
GAAP
|
|||
|
|
|
|
|||
|
Intangible
assets
|
424 | 590 | |||
|
Property,
plant and equipment
|
3,967 | 3,967 | |||
|
Deferred
tax assets
|
923 | 429 | |||
|
Deferred
tax asset for minimum pension liability
|
361 | ||||
|
Other
financial noncurrent assets
|
681 | 1,076 | |||
|
Inventories
|
2,119 | 2,133 | |||
|
Receivables
|
2,679 | 2,671 | |||
|
Cash
and cash equivalents
|
727 | 727 | |||
|
|
|
||||
|
Total
|
11,520 | 11,954 | |||
|
|
|
||||
|
Capital
and reserves
|
2,046 | 3,326 | |||
|
Minimum
pension liability
|
(824 | ) | |||
|
|
|
||||
|
Akzo
Nobel N.V. shareholders' equity
|
2,046 | 2,502 | |||
|
Minority
interest
|
140 | 140 | |||
|
|
|
||||
|
Equity
|
2,186 | 2,642 | |||
|
Provisions
|
3,863 | 2,581 | |||
|
Provision
for minimum pension liability
|
1,342 | ||||
|
Deferred
income
|
88 | ||||
|
Long-term
borrowings
|
2,717 | 2,717 | |||
|
Short-term
borrowings
|
441 | 441 | |||
|
Current
liabilities
|
2,225 | 2,231 | |||
|
|
|
||||
|
Total
|
11,520 | 11,954 | |||
|
|
|
||||
|
Gearing
|
1.11 | 0.92 | |||
10
|
IFRS-based
reporting for 2004 & implementation of IAS 32 and 39 |
|
I
N V E S T E D C A P I T A L A T J
A N U A R Y 1 , 2 0 0 4
|
|||||
|
|
|||||
|
Millions
of euros
|
IFRS
|
NL
GAAP
|
|||
|
|
|
|
|||
|
Pharma
|
2,555 | 2,506 | |||
|
Coatings
|
2,041 | 2,043 | |||
|
Chemicals
|
2,586 | 2,604 | |||
|
Other
|
994 | 964 | |||
|
|
|
||||
|
Akzo
Nobel
|
8,176 | 8,117 | |||
|
|
|
||||
|
R
E C O N C I L I A T I O N O F F
U L L Y E A R 2 0 0 4
N E T I N C O M E |
|||
|
|
|||
|
Millions
of euros
|
Net
income
|
||
|
|
|
||
| NL GAAP net income | 856 | ||
| Pensions and other postretirement benefits | 95 | ||
| Deferred taxes on intercompany profit | (43 | ) | |
| Pfizer payment | 25 | ||
| Termination of goodwill amortization | 19 | ||
| Discounting of provisions | 9 | ||
| Restructuring provisions | (6 | ) | |
| Share-based payments | (3 | ) | |
| Other long-term employee benefits | – | ||
| Other | (7 | ) | |
|
|
|||
| IFRS net income | 945 | ||
|
|
|||
11
|
IFRS-based
reporting for 2004 & implementation of IAS 32 and 39 |
|
C
O N D E N S E D C O N S O L I D A T E D S
T A T E M E N T O F I N
C O M E
|
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|
|
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| Millions of euros |
January–December
|
||||
|
|
|
||||
| IFRS | NL GAAP | ||||
|
|
|
||||
| Revenues | 12,833 | 12,688 | |||
| Operating costs | (11,498 | ) | (11,499 | ) | |
| Restructuring and impairment charges | (196 | ) | (199 | ) | |
| Results on divestments | 579 | 509 | |||
| Charges related to legal and antitrust cases | (191 | ) | (199 | ) | |
|
|
|
||||
| Operating income | 1,527 | 1,300 | |||
| Financing charges | (144 | ) | (123 | ) | |
|
|
|
||||
| Operating income less financing charges | 1,383 | 1,177 | |||
| Taxes | (412 | ) | (298 | ) | |
|
|
|
||||
| Earnings of consolidated companies, after taxes | 971 | 879 | |||
| Earnings from nonconsolidated companies (incl. nonrecurring items) | 10 | 12 | |||
|
|
|
||||
| Earnings before minority interest | 981 | 891 | |||
| Minority interest | (36 | ) | (35 | ) | |
|
|
|
||||
| Net income | 945 | 856 | |||
|
|
|
||||
| Return on sales, in % | 11.9 | 10.2 | |||
| Interest coverage | 10.6 | 10.6 | |||
| Net income per share, in EUR | |||||
| – basic | 3.31 | 3.00 | |||
| – diluted | 3.30 | 2.99 | |||
| EBITDA | 2,097 | 1,893 | |||
| Depreciation | 542 | 540 | |||
| Amortization | 28 | 53 | |||
12
|
IFRS-based
reporting for 2004 & implementation of IAS 32 and 39 |
| R
E C O N C I L I A T I O N O F S
H A R E H O L D E R S ’ E Q U I T Y
A T D E C E M B E R 3 1 , 2 0 0 4 |
|||||||
|
|
|||||||
| Millions of euros |
Capital
and reserves
|
Minimum pension liability
|
Shareholders’ equity
|
||||
|
|
|
|
|
||||
|
NL
GAAP shareholders’ equity
|
|||||||
|
at
December 31, 2004
|
3,795 | (759 | ) | 3,036 | |||
|
Pensions
and other postretirement benefits
|
(1,184 | ) | 759 | (425 | ) | ||
|
Deferred
taxes on intercompany profit
|
33 | 33 | |||||
|
Termination
of goodwill amortization
|
19 | 19 | |||||
|
Pfizer payment
|
(45 | ) | (45 | ) | |||
|
Discounting
of provisions
|
20 | 20 | |||||
|
Other
long-term employee benefits
|
(8 | ) | (8 | ) | |||
|
Share-based
payments
|
(10 | ) | (10 | ) | |||
|
Restructuring
provisions
|
– | – | |||||
|
Other
|
6 | 6 | |||||
|
|
|
|
|||||
|
IFRS
shareholders’ equity
|
|||||||
|
at
December 31, 2004
|
2,626 | 2,626 | |||||
|
|
|
|
|||||
|
S
H A R E H O L D E R S ’ E Q U I T Y A
T D E C E M B E R 3 1 , 2
0 0 4
|
|||||
|
|
|||||
|
Millions
of euros
|
IFRS
|
NL
GAAP
|
|||
|
|
|
|
|||
|
Subscribed
share capital
|
572 | 572 | |||
|
Additional
paid-in capital
|
1,803 | 1,803 | |||
|
Statutory
reserves
|
85 | 85 | |||
|
Cumulative
translation differences
|
(20 | ) | (1,070 | ) | |
|
Other
reserves
|
(759 | ) | 1,635 | ||
|
Undistributed
profits
|
945 | 770 | |||
|
|
|
||||
|
Capital
and reserves
|
2,626 | 3,795 | |||
|
Minimum
pension liability
|
(759 | ) | |||
|
|
|
||||
|
Shareholders’
equity
|
2,626 | 3,036 | |||
|
|
|
||||
13
|
IFRS-based
reporting for 2004 & implementation of IAS 32 and 39 |
| C O N D E N S E D C O N S O L I D A T E D B A L A N C E S H E E T | |||||||
|
|
|||||||
|
January
1,
2005 IFRS* |
December
31,
2004 IFRS |
December
31,
2004 NL GAAP |
|||||
|
|
|
||||||
| Millions of euros |
|
|
|||||
|
|
|
|
|
||||
|
Intangible
assets
|
448 | 448 | 561 | ||||
|
Property,
plant and equipment
|
3,535 | 3,535 | 3,535 | ||||
|
Deferred
tax assets
|
778 | 784 | 351 | ||||
|
Deferred
tax asset for minimum
|
|||||||
|
pension
liability
|
354 | ||||||
|
Other
financial noncurrent assets
|
883 | 624 | 1,048 | ||||
|
Inventories
|
1,978 | 1,978 | 1,978 | ||||
|
Receivables
|
2,791 | 2,761 | 2,767 | ||||
|
Cash
and cash equivalents
|
1,812 | 1,811 | 1,811 | ||||
|
|
|
|
|||||
|
Total
|
12,225 | 11,941 | 12,405 | ||||
|
|
|
|
|||||
|
Capital
and reserves
|
2,638 | 2,626 | 3,795 | ||||
|
Minimum
pension liability
|
(759 | ) | |||||
|
|
|
|
|||||
|
Akzo
Nobel N.V. shareholders' equity
|
2,638 | 2,626 | 3,036 | ||||
|
Minority
interest
|
140 | 140 | 140 | ||||
|
|
|
|
|||||
|
Equity
|
2,778 | 2,766 | 3,176 | ||||
|
Provisions
|
3,613 | 3,608 | 2,479 | ||||
|
Provision
for minimum pension liability
|
1,240 | ||||||
|
Deferred
income
|
56 | 56 | |||||
|
Long-term
borrowings
|
2,983 | 2,694 | 2,694 | ||||
|
Short-term
borrowings
|
258 | 258 | 258 | ||||
|
Current
liabilities
|
2,537 | 2,559 | 2,558 | ||||
|
|
|
|
|||||
|
Total
|
12,225 | 11,941 | 12,405 | ||||
|
|
|
|
|||||
|
Gearing
|
0.51 | 0.41 | 0.36 | ||||
| * Includes the effect of the adoption of IAS 32 and 39 for financial instruments. |
14
|
IFRS-based
reporting for 2004 & implementation of IAS 32 and 39 |
|
I
N V E S T E D C A P I T A L A
T D E C E M B E R 3 1 , 2
0 0 4
|
|||||
|
|
|||||
|
Millions
of euros
|
IFRS
|
NL
GAAP
|
|||
|
|
|
|
|||
| Pharma | 2,430 | 2,387 | |||
| Coatings | 2,067 | 2,057 | |||
| Chemicals | 2,047 | 2,043 | |||
| Other | 710 | 740 | |||
|
|
|
||||
| Akzo Nobel | 7,254 | 7,227 | |||
|
|
|
||||
|
S
T A T E M E N T O F C H
A N G E S I N S H A R E
H O L D E R S ’
E Q U I T Y |
|||||
|
|
|||||
|
Millions
of euros
|
IFRS
|
NL
GAAP
|
|||
|
|
|
|
|||
|
Shareholders’
equity at January 1, 2004
|
2,046 | 2,502 | |||
|
Net
income
|
945 | 856 | |||
|
Dividend
|
(343 | ) | (343 | ) | |
|
Changes
related to minimum pension liability
|
65 | ||||
|
Share-based
payments
|
(2 | ) | (2 | ) | |
|
Delivery
of purchased shares
|
– | – | |||
|
Changes
in exchange rates in respect of
|
|||||
|
affiliated
companies
|
(20 | ) | (42 | ) | |
|
|
|
||||
|
Shareholders’
equity at December 31, 2004
|
2,626 | 3,036 | |||
|
|
|
||||
15
|
IFRS-based
reporting for 2004 & implementation of IAS 32 and 39 |
|
C
O N D E N S E D C O N S O L I D A T E D S
T A T E M E N T O F C A
S H F L O W S
|
|||||||||
|
|
|||||||||
|
Millions
of euros
|
January
- December
|
||||||||
|
|
|
||||||||
| IFRS |
NL
GAAP
|
||||||||
|
|
|
||||||||
|
Total
earnings before minority interest
|
981 | 891 | |||||||
|
Depreciation and amortization
|
570 | 593 | |||||||
|
|
|
||||||||
|
Cash
flow
|
1,551
|
1,484
|
|||||||
|
Pretax gain on divestments
|
(579 | ) | (509 | ) | |||||
|
Changes in working capital
|
164 | 156 | |||||||
|
Impairments
|
74 | 74 | |||||||
|
Changes
in provisions and deferred tax assets and accrued prepaid pension costs
|
(42 | ) | (1 | ) | |||||
|
Retained
income of nonconsolidated companies
|
71 | 71 | |||||||
|
Other
changes
|
(2 |
)
|
(2 | ) | |||||
|
|
|
||||||||
|
Net
cash provided by operations
|
1,237 | 1,273 | |||||||
|
Capital
expenditures
|
(551 | ) | (551 | ) | |||||
|
Expenditures
for intangible assets
|
(28 | ) | (28 | ) | |||||
|
Acquisitions
|
(80 | ) | (80 | ) | |||||
|
Proceeds from divestments
|
1,036 | 1,036 | |||||||
|
Investments
nonconsolidated companies
|
11 | (29 | ) | ||||||
|
Other
changes
|
2 | 6 | |||||||
|
|
|
||||||||
|
Net
cash generated by investing activities
|
390 | 354 | |||||||
|
Dividends
paid
|
(366
|
) | (366 | ) | |||||
|
|
|
||||||||
|
Funds
balance
|
1,261
|
1,261 | |||||||
|
Net
cash used for financing activities
|
(169 | ) | (169 | ) | |||||
|
Effect
of exchange rate changes on cash and cash equivalents
|
(8
|
) | (8 | ) | |||||
|
|
|
||||||||
|
Change
in cash and cash equivalents
|
1,084 | 1,084 | |||||||
|
|
|
||||||||
16
|
IFRS-based
reporting for 2004 & implementation of IAS 32 and 39 |
|
C
O N D E N S E D C O N S O L I D A T E D S
T A T E M E N T O F I N
C O M E
|
|||||||||||||
|
|
|||||||||||||
|
Millions
of euros
|
1st
quarter
|
2nd
quarter
|
3rd
quarter
|
||||||||||
|
|
|
|
|
||||||||||
|
IFRS
|
NL
GAAP
|
IFRS
|
NL
GAAP
|
IFRS
|
NL
GAAP
|
||||||||
|
|
|
|
|
|
|
||||||||
|
Revenues
|
3,169
|
3,138
|
3,363
|
3,325
|
3,222
|
3,185
|
|||||||
|
Operating costs
|
(2,844 | ) | (2,846 | ) | (2,992 | ) | (2,990 | ) | (2,857 | ) | (2,856 | ) | |
|
Restructuring and impairment
charges
|
(46 | ) | (38 | ) | (23 | ) | (53 | ) | (68 | ) | (42 | ) | |
|
Results
on divestments
|
4 | 4 | 458 | 1 | 458 | ||||||||
|
Charges
related to legal and antitrust cases
|
(23 | ) | (23 | ) | (61 | ) | (61 | ) | (58 | ) | (58 | ) | |
|
|
|
|
|
|
|
||||||||
|
Operating income
|
256 | 231 | 291 | 225 | 697 | 687 | |||||||
|
Financing
charges
|
(38 | ) | (32 | ) | (40 | ) | (36 | ) | (33 | ) | (27 | ) | |
|
|
|
|
|
|
|
||||||||
|
Operating income less financing charges
|
218 | 199 | 251 | 189 | 664 | 660 | |||||||
|
Taxes
|
(83
|
) | (64 | ) | (87 | ) | (61 | ) | (144 | ) | (129 | ) | |
|
|
|
|
|
|
|
||||||||
|
Earnings
of consolidated companies, after taxes
|
135 | 135 | 164 | 128 | 520 | 531 | |||||||
|
Earnings
from nonconsolidated companies (incl. nonrecurring items)
|
6 | 6 | (4 | ) | (5 | ) | (1 | ) | (1 | ) | |||
|
|
|
|
|
|
|
||||||||
|
Earnings
before minority interest
|
141
|
141 | 160 | 123 | 519 | 530 | |||||||
|
Minority interest
|
(8 | ) | (8 | ) | (11 | ) | (11 | ) | (9 | ) | (9 | ) | |
|
|
|
|
|
|
|
||||||||
|
Net
income
|
133
|
133 | 149 | 112 | 510 | 521 | |||||||
|
|
|
|
|
|
|
||||||||
|
Return
on sales, in %
|
8.1 | 7.4 | 8.7 | 6.8 | 21.6 | 21.6 | |||||||
|
Interest coverage
|
6.7 | 7.2 | 7.3 | 6.3 | 21.1 | 25.4 | |||||||
|
Net
income per share, in EUR
|
|||||||||||||
|
–
basic
|
0.47
|
0.47 | 0.52 | 0.39 | 1.78 | 1.82 | |||||||
|
–
diluted
|
0.46
|
0.46 | 0.52 | 0.39 | 1.78 | 1.82 | |||||||
|
EBITDA
|
406
|
388 | 440 | 380 | 838 | 833 | |||||||
|
Depreciation
|
144
|
144 | 144 | 143 | 133 | 132 | |||||||
|
Amortization
|
6
|
13 | 5 | 12 | 8 | 14 | |||||||
|
|
|
| 1 | The impact of IAS 19 for pensions and other postretirement benefits on the results of divestments of Catalysts and Phosphorus Chemicals was determined in the fourth quarter of 2004. |
17
|
IFRS-based
reporting for 2004 & implementation of IAS 32 and 39 |
|
C
O N D E N S E D C O N S O L I D A T E D S
T A T E M E N T O F I N
C O M E
|
|||||||||||||
|
|
|||||||||||||
| Millions of euros |
4th
quarter
|
January–June
|
January–September
|
||||||||||
|
|
|
|
|||||||||||
|
IFRS
|
NL
GAAP
|
IFRS
|
NL
GAAP
|
IFRS
|
NL
GAAP
|
||||||||
|
|
|
|
|
|
|
||||||||
|
Revenues
|
3,079 | 3,040 | 6,532 | 6,463 | 9,754 | 9,648 | |||||||
|
Operating
costs
|
(2,805 | ) | (2,807 | ) | (5,836 | ) | (5,836 | ) | (8,693 | ) | (8,692 | ) | |
|
Restructuring and impairment charges
|
(59 | ) | (32 | ) | (69 | ) | (91 | ) | (137 | ) | (133 | ) | |
|
Results
on divestments
|
117 | 1 | 47 | 4 | 4 | 462 | 462 | ||||||
|
Charges
related to legal and
antitrust cases
|
(49 | ) | (91 | ) | (84 | ) | (84 | ) | (142 | ) | (142 | ) | |
|
|
|
|
|
|
|
||||||||
|
Operating income
|
283 | 157 | 547 | 456 | 1,244 | 1,143 | |||||||
|
Financing charges
|
(33 | ) | (28 | ) | (78 | ) | (68 | ) | (111 | ) | (95 | ) | |
|
|
|
|
|
|
|
||||||||
|
Operating income less financing charges
|
250 | 129 | 469 | 388 | 1,133 | 1,048 | |||||||
|
Taxes
|
(98 | ) | (44 | ) | (170 | ) | (125 | ) | (314 | ) | (254 | ) | |
|
|
|
|
|
|
|
||||||||
|
Earnings
of consolidated companies, after taxes
|
152 | 85 | 299 | 263 | 819 | 794 | |||||||
|
Earnings
from nonconsolidated
companies
(incl. nonrecurring items) |
9 | 12 | 2 | 1 | 1 | ||||||||
|
|
|
|
|
|
|
||||||||
|
Earnings
before minority interest
|
161 | 97 | 301 | 264 | 820 | 794 | |||||||
|
Minority
interest
|
(8 | ) | (7 | ) | (19 | ) | (19 | ) | (28 | ) | (28 | ) | |
|
|
|
|
|
|
|
||||||||
|
Net
income
|
153 | 90 | 282 | 245 | 792 | 766 | |||||||
|
|
|
|
|
|
|
||||||||
|
Return
on sales, in %
|
9.2 | 5.2 | 8.4 | 7.1 | 12.8 | 11.8 | |||||||
|
Interest coverage
|
8.6 | 5.6 | 7.0 | 6.7 | 11.2 | 12.0 | |||||||
|
Net
income per share, in EUR
|
|||||||||||||
|
–
basic
|
0.54 | 0.31 | 0.99 | 0.86 | 2.77 | 2.68 | |||||||
|
–
diluted
|
0.53 | 0.31 | 0.98 | 0.85 | 2.76 | 2.67 | |||||||
|
EBITDA
|
413 | 292 | 846 | 768 | 1,684 | 1,601 | |||||||
|
Depreciation
|
121 | 121 | 288 | 287 | 421 | 419 | |||||||
|
Amortization
|
9 | 14 | 11 | 25 | 19 | 39 | |||||||
|
|
| 1 Includes the impact of IAS 19 for pensions and other postretirement benefits on the results of divestments of Catalysts and Phosphorus Chemicals. |
18
|
IFRS-based
reporting for 2004 & implementation of IAS 32 and 39 |
| S E G M E N T R E P O R T I N G | |||||||||||||
|
|
|||||||||||||
|
Millions
of euros
|
1st
quarter
|
2nd
quarter
|
3rd
quarter
|
||||||||||
|
|
|
|
|
||||||||||
|
IFRS
|
NL
GAAP
|
IFRS
|
NL
GAAP
|
IFRS
|
NL
GAAP
|
||||||||
|
|
|
|
|
|
|
||||||||
|
Revenues
|
|||||||||||||
|
Pharma
|
841 | 821 | 825 | 808 | 826 | 801 | |||||||
|
Coatings
|
1,238 | 1,231 | 1,405 | 1,397 | 1,388 | 1,381 | |||||||
|
Chemicals
|
1,121 | 1,118 | 1,152 | 1,147 | 1,037 | 1,033 | |||||||
|
Other
|
(31 | ) | (32 | ) | (19 | ) | (27 | ) | (29 | ) | (30 | ) | |
|
|
|
|
|
|
|
||||||||
|
Akzo
Nobel
|
3,169 | 3,138 | 3,363 | 3,325 | 3,222 | 3,185 | |||||||
|
|
|
|
|
|
|
||||||||
|
Operating
income
|
|||||||||||||
|
Pharma
|
111 | 99 | 118 | 104 | 84 | 69 | |||||||
|
Coatings
|
84 | 82 | 145 | 108 | 117 | 135 | |||||||
|
Chemicals
|
101 | 93 | 88 | 80 | 514 | 503 | |||||||
|
Other
|
(40 | ) | (43 | ) | (60 | ) | (67 | ) | (18 | ) | (20 | ) | |
|
|
|
|
|
|
|
||||||||
|
Akzo
Nobel
|
256 | 231 | 291 | 225 | 697 | 687 | |||||||
|
|
|
|
|
|
|
||||||||
|
Invested
capital,
|
|||||||||||||
|
at
end of quarter
|
|||||||||||||
|
Pharma
|
2,708 | 2,633 | 2,707 | 2,638 | 2,536 | 2,484 | |||||||
|
Coatings
|
2,264 | 2,260 | 2,215 | 2,208 | 2,204 | 2,193 | |||||||
|
Chemicals
|
2,630 | 2,629 | 2,662 | 2,657 | 2,212 | 2,206 | |||||||
|
Other
|
820 | 798 | 894 | 863 | 868 | 811 | |||||||
|
|
|
|
|
|
|
||||||||
|
Akzo
Nobel
|
8,422 | 8,320 | 8,478 | 8,366 | 7,820 | 7,694 | |||||||
|
|
|
|
|
|
|
||||||||
|
Depreciation
and
|
|||||||||||||
|
amortization
|
|||||||||||||
|
Pharma
|
44 | 45 | 40 | 41 | 42 | 43 | |||||||
|
Coatings
|
31 | 34 | 32 | 35 | 30 | 33 | |||||||
|
Chemicals
|
72 | 75 | 76 | 78 | 67 | 68 | |||||||
|
Other
|
3 | 3 | 1 | 1 | 2 | 2 | |||||||
|
|
|
|
|
|
|
||||||||
|
Akzo
Nobel
|
150 | 157 | 149 | 155 | 141 | 146 | |||||||
|
|
|
|
|
|
|
||||||||
19
|
IFRS-based
reporting for 2004 & implementation of IAS 32 and 39 |
|
S
E G M E N T R E P O R T I N G
|
|||||||||
|
|
|||||||||
|
Millions
of euros
|
4th
quarter
|
January–June
|
|||||||
|
|
|
|
|||||||
|
IFRS
|
NL
GAAP
|
IFRS
|
NL
GAAP
|
||||||
|
|
|
|
|
||||||
|
Revenues
|
|||||||||
|
Pharma
|
858 | 816 | 1,666 | 1,629 | |||||
|
Coatings
|
1,247 | 1,240 | 2,643 | 2,628 | |||||
|
Chemicals
|
1,007 | 1,007 | 2,273 | 2,265 | |||||
|
Other
|
(33 | ) | (23 | ) | (50 | ) | (59 | ) | |
|
|
|
|
|
||||||
|
Akzo
Nobel
|
3,079 | 3,040 | 6,532 | 6,463 | |||||
|
|
|
|
|
||||||
|
Operating
income
|
|||||||||
|
Pharma
|
142 | 126 | 229 | 203 | |||||
|
Coatings
|
50 | 35 | 229 | 190 | |||||
|
Chemicals
|
166 | 86 | 189 | 173 | |||||
|
Other
|
(75 | ) | (90 | ) | (100 | ) | (110 | ) | |
|
|
|
|
|
||||||
|
Akzo
Nobel
|
283 | 157 | 547 | 456 | |||||
|
|
|
|
|
||||||
|
Depreciation
and amortization
|
|||||||||
|
Pharma
|
39 | 39 | 84 | 86 | |||||
|
Coatings
|
30 | 33 | 63 | 69 | |||||
|
Chemicals
|
57 | 59 | 148 | 153 | |||||
|
Other
|
4 | 4 | 4 | 4 | |||||
|
|
|
|
|
||||||
|
Akzo
Nobel
|
130 | 135 | 299 | 312 | |||||
|
|
|
|
|
||||||
20
|
IFRS-based
reporting for 2004 & implementation of IAS 32 and 39 |
|
S
E G M E N T R E P O R T I N G
|
|||||||||
|
|
|||||||||
|
Millions
of euros
|
January–September
|
January–December
|
|||||||
|
|
|
|
|||||||
|
IFRS
|
NL
GAAP
|
IFRS
|
NL
GAAP
|
||||||
|
|
|
|
|
||||||
|
Revenues
|
|||||||||
|
Pharma
|
2,492 | 2,430 | 3,350 | 3,246 | |||||
|
Coatings
|
4,031 | 4,009 | 5,278 | 5,249 | |||||
|
Chemicals
|
3,310 | 3,298 | 4,317 | 4,305 | |||||
|
Other
|
(79 | ) | (89 | ) | (112 | ) | (112 | ) | |
|
|
|
|
|
||||||
|
Akzo
Nobel
|
9,754 | 9,648 | 12,833 | 12,688 | |||||
|
|
|
|
|
||||||
|
Operating
income
|
|||||||||
|
Pharma
|
313 | 272 | 455 | 398 | |||||
|
Coatings
|
346 | 325 | 396 | 360 | |||||
|
Chemicals
|
703 | 676 | 869 | 762 | |||||
|
Other
|
(118 | ) | (130 | ) | (193 | ) | (220 | ) | |
|
|
|
|
|
||||||
|
Akzo
Nobel
|
1,244 | 1,143 | 1,527 | 1,300 | |||||
|
|
|
|
|
||||||
|
Depreciation
and amortization
|
|||||||||
|
Pharma
|
126 | 129 | 165 | 168 | |||||
|
Coatings
|
93 | 102 | 123 | 135 | |||||
|
Chemicals
|
215 | 221 | 272 | 280 | |||||
|
Other
|
6 | 6 | 10 | 10 | |||||
|
|
|
|
|
||||||
|
Akzo
Nobel
|
440 | 458 | 570 | 593 | |||||
|
|
|
|
|
||||||
21
|
IFRS-based
reporting for 2004 & implementation of IAS 32 and 39 |
| C O N D E N S E D C O N S O L I D A T E D B A L A N C E S H E E T | ||||||||||||||
|
|
||||||||||||||
| Millions
of euros; at end of quarter |
1st
quarter
|
2nd
quarter
|
3rd quarter | |||||||||||
|
|
|
|
|
|||||||||||
|
IFRS
|
NL
GAAP
|
IFRS
|
NL
GAAP
|
IFRS
|
NL
GAAP
|
|||||||||
|
|
|
|
|
|
|
|||||||||
|
Intangible assets
|
439
|
598
|
443
|
595
|
453
|
598
|
||||||||
|
Property,
plant and equipment
|
3,889
|
3,889
|
3,881
|
3,884
|
3,663
|
3,663
|
||||||||
|
Deferred
tax assets
|
934
|
419
|
906
|
401
|
915
|
423
|
||||||||
|
Deferred
tax asset for minimum
pension liability
|
371
|
371
|
364
|
|||||||||||
|
Other financial noncurrent assets
|
704
|
1,130
|
633
|
1,044
|
593
|
985
|
||||||||
|
Inventories
|
2,181
|
2,181
|
2,186
|
2,186
|
2,100
|
2,100 | ||||||||
|
Receivables
|
2,995
|
2,990
|
3,197
|
3,191
|
3,075
|
3,071
|
||||||||
|
Cash
and cash equivalents
|
508
|
508
|
393
|
393
|
1,559
|
1,559
|
||||||||
|
|
|
|
|
|
|
|||||||||
|
Total
|
11,650
|
12,086
|
11,639
|
12,065
|
12,358
|
12,763
|
||||||||
|
|
|
|
|
|
|
|||||||||
|
Capital
and reserves
|
2,258
|
3,549
|
2,142
|
3,392
|
2,626
|
3,877
|
||||||||
|
Minimum
pension liability
|
(853
|
)
|
(851
|
)
|
(834
|
)
|
||||||||
|
|
|
|
|
|
|
|||||||||
|
Akzo
Nobel N.V. shareholders' equity
|
2,258
|
2,696
|
2,142
|
2,541
|
2,626
|
3,043
|
||||||||
|
Minority interest
|
145
|
145
|
139
|
139
|
144
|
144
|
||||||||
|
|
|
|
|
|
|
|||||||||
|
Equity
|
2,403
|
2,841
|
2,281
|
2,680
|
2,770
|
3,187
| ||||||||
|
Provisions
|
3,750
|
2,446
|
3,792
|
2,513
|
3,823
|
2,520
|
||||||||
|
Provision for minimum pension liability
|
1,382
|
1,379
|
1,356
|
|||||||||||
|
Deferred income
|
80
|
73
|
65
|
|||||||||||
|
Long-term
borrowings
|
2,741
|
2,741
|
2,747
|
2,747
|
2,737
|
2,737
|
||||||||
|
Short-term
borrowings
|
356
|
356
|
306
|
306
|
282
|
282
|
||||||||
|
Current liabilities
|
2,320
|
2,320
|
2,440
|
2,440
|
2,681
|
2,681
|
||||||||
|
|
|
|
|
|
|
|||||||||
|
Total
|
11,650
|
12,086
|
11,639
|
12,065
|
12,358
|
12,763
|
||||||||
|
|
|
|
|
|
|
|||||||||
|
Gearing
|
1.08
|
0.91
|
1.17
|
0.99
|
0.53
|
0.46
|
||||||||
22
|
IFRS-based
reporting for 2004 & implementation of IAS 32 and 39 |
Safe Harbor Statement*
This unaudited report contains certain forward-looking statements which address such key issues as Akzo Nobel’s future financial results following the transition from NL GAAP to IFRS, including, in particular, the expected impacts of such change on employee benefit and pension accounting, revenue recognition, the method of accounting for income taxes and business combinations, provisions, share-based payments, investments in nonconsolidated companies, nonrecurring items, translation differences and certain other prospective changes related to the transition from reporting in NL GAAP to reporting under IFRS. Such statements are subject to change and should be carefully considered, and it should be understood that many factors could cause forecasted and actual results to differ from these statements. These factors include, but are not limited to, changes in regulations or interpretations related to the implementation and reporting under IFRS, decisions to apply a different option of presentation permitted by IFRS, and various other factors related to the implementation of IFRS, including the implementation of IAS 32 and 39 for financial instruments. For a more complete discussion of the risk factors affecting our business please refer to our Annual Report on Form 20-F filed with the United States Securities and Exchange Commission.
The financial information presented contains details of the transitional adjustments required to present certain historical financial results of the Company under IFRS. Future presentation of this historical financial information may be in a different format or the figures presented could differ from those in this report. The transitional adjustments presented have been calculated on the basis of the specific facts of the transaction and should not be used as indicators of future adjustments between NL GAAP and IFRS that will be required, due to the risk and uncertainty surrounding events in the future. This report should not be used as a projection of future results or financial condition.
* Pursuant to the U.S. Private Securities Litigation Reform Act 1995.
| Akzo
Nobel N.V. Velperweg 76 P.O. Box 9300 6800 SB Arnhem The Netherlands |
|
| Tel. | + 31 26 366 4433 |
| Fax | + 31 26 366 3250 |
| ACC@akzonobel.com | |
| Internet | www.akzonobel.com |
23