Notes to the condensed financial statements


Our dividend policy is to pay a stable to rising dividend. A final dividend for 2015 of €1.20 per share is proposed to the AGM, which would make a total 2015 dividend of €1.55 (2014: €1.45) per share, up 7 percent. There will be a stock dividend option with cash dividend as default. Please refer to the last page of this Report for dividend payment dates.

Invested capital

Invested capital at the end of Q1 2016 totaled €10.1 billion (Q1 2015: €10.9 billion), up €0.2 billion on year-end 2015 mainly due to seasonality of operating working capital. Operating working capital reduced €0.2 billion compared with March 31, 2015.

Invested capital

in € millions

March 31, 2015

December 31, 2015

March 31, 2016

Trade receivables








Trade payables




Operating working capital




Other working capital items




Non-current assets




Less investments in associates and joint ventures




Less pension assets




Deferred tax liabilities




Invested capital




Operating working capital

In % of revenue

AkzoNobel – Operating working capital (bar chart)AkzoNobel – Operating working capital (bar chart)


The net balance sheet position (IAS19) of the pension plans at the end of Q1 2016 was a deficit of €0.4 billion (year-end 2015: €0.6 billion). This was the result of the net effect of:

  • Top-up payments of €277 million, predominantly into certain UK pension plans
  • Higher asset returns and lower inflation

Offset by:

  • Lower discount rates in the key countries
  • De-risking of pension liabilities through a non-cash buy-in transaction of €419 million, related to the ICI Pension Fund, which led to a €90 million impact in Other comprehensive income

The triennial review of the AkzoNobel (CPS) Pension Scheme was completed in March 2016 and a new valuation and payment schedule was agreed with the Trustees, which resulted in a lower annual top-up contribution.


At March 31, 2016, we employed 45,900 staff (year-end 2015: 45,600 employees), in comparison with 46,400 employees at March 31, 2015. With the introduction of Global Business Services (GBS) organization as of January 1, 2016 some employees are now reported at corporate level instead of within the Business Areas.

Accounting policies and restatements

This interim financial report is in compliance with IAS 34 “Interim Financial Reporting”. This report is unaudited. The IFRS changes applicable as from January 1, 2016 do not have any or only an immaterial effect on our Consolidated financial statements. Otherwise the accounting principles are as applied in the 2015 financial statements.


Revenue and results in Decorative Paints are impacted by seasonal influences. Revenue and profitability tend to be higher in the second and third quarter of the year as weather conditions determine whether paints and coatings can be applied. In Performance Coatings, revenue and profitability vary with building patterns from original equipment manufacturers. In Specialty Chemicals, the Functional Chemicals and the Surface Chemistry businesses experience seasonal influences. Revenue and profitability are affected by developments in the agricultural season and tend to be higher in the first half of the year.

Other activities

In other activities, we report activities which are not allocated to a particular Business Area. Corporate costs are the unallocated costs of our head office and shared services center in the Netherlands and also include country holdings. Pensions reflects pension costs after the elimination of interest cost (reported as financing expenses). Insurances are the results from our captive insurance companies. Other costs include the cost of share-based compensation, the results of treasury and legacy operations.