Notes to the condensed financial statements

Invested capital

Invested capital at the end of Q1 2017 totaled €10.6 billion, up €0.3 billion on year-end 2016 mainly due to seasonality of operating working capital. Operating working capital as % of revenue improved to 12.5% in Q1 2017 compared with 13.1% in Q1 2016.

Invested capital

in € millions

March 31, 2016

December 31, 2016

March 31, 2017

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 2017 was a deficit of €0.7 billion (year-end 2016: €1.0 billion). This was the result of the net effect of:

  • Top-up payments of €266 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 £262 million, related to the ICI Pension Fund, which led to a €49 million impact in Other comprehensive income


At March 31, 2017, the number of people employed was 46,100. The increase compared to the 45,900 people employed at end of March 31, 2016, was mainly due to the 340 people joining AkzoNobel following the acquistion of BASF’s Industrial Coatings business, partly offset by reductions in other 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, 2017 do not have any or only an immaterial effect on our Consolidated financial statements. Otherwise the accounting principles are as applied in the 2016 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.