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 invested in the two joint ventures in the Middle East in 2001. The joint venture in Japan was formed in 2018.

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

 

 

 

 

 

 

Interest held at

 

 

Reporting date

 

Country of incorporation

 

31 Dec. 2019

 

31 Dec. 2018

SIG Combibloc Obeikan Company Ltd.

 

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%

SIG Combibloc Obeikan Company Limited operates a sleeves manufacturing facility in Saudi Arabia. Both 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.

In the year ended 31 December 2018, the Group invested in a newly formed joint venture in Japan together with DNP. The two joint venture parties contributed €0.6 million each to the formation of the joint venture. There have been no significant transactions with this joint venture in the years ended 31 December 2019 and 31 December 2018.

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 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SIG Combibloc Obeikan 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

31 December 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SIG Combibloc Obeikan Company Ltd., Saudi Arabia

 

63.6

 

84.8

 

148.4

 

85.3

 

33.4

 

118.7

 

29.7

SIG Combibloc Obeikan FZCO, UAE

 

106.1

 

129.2

 

235.3

 

83.4

 

90.1

 

173.5

 

61.8

DNP • SIG Combibloc Co., Ltd., Japan

 

3.7

 

 

3.7

 

2.7

 

 

2.7

 

1.0

Total

 

173.4

 

214.0

 

387.4

 

171.4

 

123.5

 

294.9

 

92.5

(in € million)

 

Revenue

 

Expenses

 

Profit after tax

2019

 

 

 

 

 

 

SIG Combibloc Obeikan 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

2018

 

 

 

 

 

 

SIG Combibloc Obeikan Company Ltd., Saudi Arabia

 

162.3

 

(145.3)

 

17.0

SIG Combibloc Obeikan FZCO, UAE

 

216.5

 

(208.7)

 

7.8

DNP • SIG Combibloc Co., Ltd., Japan

 

0.5

 

(0.7)

 

(0.2)

Total

 

379.3

 

(354.7)

 

24.6

Joint venture impact on the consolidated financial statements

(In € million)

 

2019

 

2018

(1)

An unrealised gain of €3.4 million recognised by one of the joint ventures in the Middle East resulting from an upstream sale of an asset to the Group in the year ended 31 December 2018 (that will not be sold on) has in the consolidated financial statements been eliminated against the asset purchased.

Carrying amount as of 1 January

 

198.7

 

206.9

Investment in joint venture in Japan

 

 

0.6

Share of profit (net of income tax) (1)

 

15.4

 

12.3

Dividends received

 

(20.7)

 

(23.7)

Effect of movements in exchange rates

 

0.8

 

2.0

Other

 

(0.8)

 

0.6

Carrying amount as of 31 December

 

193.4

 

198.7

Amount of goodwill in carrying amount of joint ventures as of 31 December

 

153.0

 

152.4

Guarantees

As of 31 December 2018, the Group provided guarantees with an aggregate maximum exposure of €34.3 million to banks granting credit facilities to SIG Combibloc Obeikan Company Ltd. As of 31 December 2019, the Group has been released of its guarantees for outstanding joint venture debts.

Accounting policy

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