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28 Joint ventures

The Group has investments in three joint ventures, which provide aseptic carton packaging solutions in their respective geographic markets. The Group and its 50–50 joint venture partner, OIG, invested in the two joint ventures in the Middle East in 2001. The joint venture in Japan was formed in 2018 with the joint venture partner DNP.

On 25 November 2020, the Group announced its intention to acquire the remaining shares in the two joint ventures in the Middle East. The transaction is expected to close before the end of the first quarter of 2021. For further information about the planned acquisition, see note 4.

The Group’s share of the profit or loss of its joint ventures (net of income tax) is presented as part of the Group’s profit or loss from operating activities due to the Group’s close interaction with its joint ventures.

Composition of the Group’s joint ventures

The below table provides an overview of the Group’s joint ventures.

 

 

 

 

 

 

Interest held at

Companies

 

Reporting date

 

Country of incorporation

 

31 Dec. 2020

 

31 Dec. 2019

Al Obeikan SIG Combibloc Company Ltd.1

 

31 Dec.

 

Saudi Arabia

 

50%

 

50%

SIG Combibloc Obeikan FZCO

 

31 Dec.

 

UAE

 

50%

 

50%

DNP • SIG Combibloc Co., Ltd.

 

31 Dec.

 

Japan

 

50%

 

50%

1

Previously SIG Combibloc Obeikan Company Ltd., renamed to Al Obeikan SIG Combibloc Company Ltd. in the third quarter of 2020.

Al Obeikan SIG Combibloc Company Ltd. operates a sleeves manufacturing facility in Saudi Arabia from which it supplies sleeves, also to SIG Combibloc Obeikan FZCO. Both of the joint ventures in the Middle East deploy filling lines in the Middle East and Africa and provide sleeves and other associated products and services to their customers.

There have been no significant transactions with the joint venture in Japan in the years ended 31 December 2020 and 31 December 2019.

Summary joint venture financial information

The following tables provide summary financial information about the three joint ventures, representing the amounts presented in the IFRS financial statements of the joint ventures and not adjusted for the Group’s ownership percentage.

(In € million)

 

Current assets

 

Non-current assets

 

Total assets

 

Current liabilities

 

Non-current liabilities

 

Total liabilities

 

Net assets

31 December 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Al Obeikan SIG Combibloc Company Ltd., Saudi Arabia

 

57.7

 

90.5

 

148.2

 

31.6

 

81.0

 

112.6

 

35.6

SIG Combibloc Obeikan FZCO, UAE

 

161.5

 

177.5

 

339.0

 

123.3

 

184.8

 

308.1

 

30.9

DNP • SIG Combibloc Co., Ltd., Japan

 

1.4

 

0.6

 

2.0

 

1.2

 

 

1.2

 

0.8

Total

 

220.6

 

268.6

 

489.2

 

156.1

 

265.8

 

421.9

 

67.3

31 December 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Al Obeikan SIG Combibloc Company Ltd., Saudi Arabia

 

61.9

 

110.1

 

172.0

 

45.5

 

99.1

 

144.6

 

27.4

SIG Combibloc Obeikan FZCO, UAE

 

168.1

 

200.7

 

368.8

 

96.4

 

218.7

 

315.1

 

53.7

DNP • SIG Combibloc Co., Ltd., Japan

 

6.0

 

 

6.0

 

6.2

 

 

6.2

 

(0.2)

Total

 

236.0

 

310.8

 

546.8

 

148.1

 

317.8

 

465.9

 

80.9

(In € million)

 

Revenue

 

Expenses

 

Profit after tax

2020

 

 

 

 

 

 

Al Obeikan SIG Combibloc Company Ltd., Saudi Arabia

 

141.4

 

(125.2)

 

16.2

SIG Combibloc Obeikan FZCO, UAE

 

208.4

 

(190.9)

 

17.5

DNP • SIG Combibloc Co., Ltd., Japan

 

7.0

 

(6.0)

 

1.0

Total

 

356.8

 

(322.1)

 

34.7

2019

 

 

 

 

 

 

Al Obeikan SIG Combibloc Company Ltd., Saudi Arabia

 

162.5

 

(143.2)

 

19.3

SIG Combibloc Obeikan FZCO, UAE

 

213.1

 

(200.4)

 

12.7

DNP • SIG Combibloc Co., Ltd., Japan

 

0.5

 

(1.7)

 

(1.2)

Total

 

376.1

 

(345.3)

 

30.8

Joint venture impact on the consolidated financial statements

(In € million)

 

2020

 

2019

Carrying amount as of 1 January

 

193.4

 

198.7

Share of profit (net of income tax)

 

17.4

 

15.4

Dividends received

 

(22.7)

 

(20.7)

Effect of movements in exchange rates

 

(3.8)

 

0.8

Other

 

0.2

 

(0.8)

Carrying amount as of 31 December

 

184.5

 

193.4

Amount of goodwill in carrying amount of joint ventures as of 31 Dec.

 

150.8

 

153.0

Accounting policy

The accounting policy for joint ventures is included in note 26.