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28 Joint ventures

The Group does not have any significant investments in joint ventures as of 31 December 2021. It only has a smaller investment in a joint venture in Japan. The Company acquired the remaining 50% of the shares of its two joint ventures in the Middle East on 25 February 2021 (see note 27).

The Group’s share of the profit or loss of 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 current and former joint ventures.

Composition of the Group’s joint ventures

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

 

 

 

 

 

 

Interest held at

Companies

 

Reporting date

 

Country of incorporation

 

31 Dec. 2021

 

31 Dec. 2020

Al Obeikan SIG Combibloc Company Ltd.1, 2

 

31 Dec.

 

Saudi Arabia

 

100%

 

50%

SIG Combibloc FZCO1, 3

 

31 Dec.

 

UAE

 

100%

 

50%

DNP • SIG Combibloc Co., Ltd.

 

31 Dec.

 

Japan

 

50%

 

50%

1

The Company acquired the remaining 50% of the shares on 25 February 2021 (see note 27).

2

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

3

Previously SIG Combibloc Obeikan FZCO, renamed to SIG Combibloc FZCO in the fourth quarter of 2021.

There have been no significant transactions with the joint venture in Japan in the years ended 31 December 2021 and 31 December 2020. The joint venture was formed in 2018 with the joint venture partner DNP and it provides aseptic carton packaging solutions in Japan.

Summary joint venture financial information

The following tables provide summary financial information about the joint ventures, representing the amounts presented in the IFRS financial statements of the joint ventures and not adjusted for the Group’s ownership percentage. Information about the former joint ventures in the Middle East is presented for the comparative period and until 25 February 2021 for the year ended 31 December 2021.

(In € million)

 

Current assets

 

Non-current assets

 

Total assets

 

Current liabilities

 

Non-current liabilities

 

Total liabilities

 

Net assets

31 December 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Al Obeikan SIG Combibloc Company Ltd., Saudi Arabia

 

 

 

 

 

 

 

 

 

 

 

SIG Combibloc FZCO, UAE1

 

 

 

 

 

 

 

 

 

 

 

DNP • SIG Combibloc Co., Ltd., Japan

 

0.8

 

0.6

 

1.4

 

0.2

 

 

 

0.2

 

1.2

Total

 

0.8

 

0.6

 

1.4

 

0.2

 

 

0.2

 

1.2

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 FZCO, UAE1

 

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

1

Previously SIG Combibloc Obeikan FZCO, renamed to SIG Combibloc FZCO in the fourth quarter of 2021.

(In € million)

 

Revenue

 

Expenses

 

Profit after tax

2021

 

 

 

 

 

 

Al Obeikan SIG Combibloc Company Ltd., Saudi Arabia2

 

14.9

 

(15.4)

 

(0.5)

SIG Combibloc FZCO, UAE1, 2

 

17.6

 

(20.8)

 

(3.2)

DNP • SIG Combibloc Co., Ltd., Japan

 

1.1

 

(0.6)

 

0.5

Total

 

33.6

 

(36.8)

 

(3.2)

2020

 

 

 

 

 

 

Al Obeikan SIG Combibloc Company Ltd., Saudi Arabia

 

141.4

 

(125.2)

 

16.2

SIG Combibloc Obeikan FZCO, UAE1

 

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

1

Previously SIG Combibloc Obeikan FZCO, renamed to SIG Combibloc FZCO in the fourth quarter of 2021.

2

Information presented for January-February 2021.

Joint venture impact on the consolidated financial statements

(In € million)

 

2021

 

2020

Carrying amount as of 1 January

 

184.5

 

193.4

Share of (loss)/profit (net of income tax)

 

(1.6)

 

17.4

Dividends received

 

 

(22.7)

Derecognition of pre-existing interest in the former joint ventures in the Middle East (business combination achieved in stages)

 

(178.8)

 

Effect of movements in exchange rates

 

0.4

 

(3.8)

Other

 

(3.9)

 

0.2

Carrying amount as of 31 December

 

0.6

 

184.5

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

 

 

150.8

Accounting policy

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