21. Investments in associates and joint ventures

Million CHF

2015

20141

1

Restated due to changes in accounting policies, see note 2.

Investments in associates

1,433

1,387

Investments in joint ventures

1,739

588

Total

3,172

1,975

Movement in investments in associates

Million CHF

2015

2014

1

Mainly relating to the change in ownership interest of several subsidiaries in the Philippines, see note 4.

January 1

1,387

1,232

Share of profit of associates

49

93

Dividends earned

(72)

(41)

Merger with Lafarge (note 4)

 

 

Associates of Lafarge

258

0

Revaluation of previously held interests

538

0

Consolidation of Unicem and Lafarge Cement Egypt S.A.E.

(680)

0

Net acquisitions

771

7

Reclassifications

0

8

Impairments

(67)

0

Currency translation effects

(57)

87

December 31

1,433

1,387

Investments in associates

Million CHF

30.9.2015

31.12.2014

Huaxin Cement

842

874

Other associates

622

513

Total

1,463

1,387

The disclosed amounts for the investments in associates are as of September 30, 2015 and include only the first nine months. This is due to the fact that Huaxin Cement (China), a material associate of the Group, is a publicly listed company in China and has not yet published its financial statements for the year 2015.

Huaxin Cement (China)

As of December 31, 2015, the Group holds 41.8 % (2014: 41.9 %) of the voting rights in the associate company Huaxin Cement.

The fair value of the investment in Huaxin Cement based on a quoted market price on December 31, 2015 amounted to CHF 678 million (2014: 965 million).

Set out below is the summarized financial information for the material associate company Huaxin Cement, which is accounted for using the equity method. The summarized financial information presented below are the amounts included in the IFRS financial statements of Huaxin Cement as at September 30, 2015 and as at December 31, 2014. As of September 30, 2015, dividends of CHF 16 million (December 31, 2014: CHF 11 million) were received from Huaxin Cement.

Huaxin Cement – Statement of financial position

Million CHF

30.9.2015

31.12.2014

Current assets

920

1,050

Long-term assets

3,311

3,280

Total assets

4,231

4,330

 

 

 

Current liabilities

1,291

1,265

Long-term liabilities

1,072

1,151

Total liabilities

2,363

2,416

 

 

 

Net assets

1,867

1,914

 

 

 

Shareholders’ equity (excluding non-controlling interest)

1,647

1,707

Huaxin Cement – Statement of comprehensive earnings

Million CHF

Jan–Sept 2015

Jan–Dec 2014

Net sales

1,533

2,388

 

 

 

Net income

47

214

 

 

 

Other comprehensive earnings

(2)

0

Total comprehensive earnings

45

215

A reconciliation of the summarized financial information to the carrying amount of the investment in Huaxin Cement is as follows:

Huaxin Cement

Million CHF

30.9.2015

31.12.2014

Group share of 41.8% (2014: 41.9%) of shareholders’ equity (excluding non-controlling interest)

690

715

Goodwill

152

159

Total

842

874

The Group has additional interests in associates, none of which is considered as individually material. The following table summarizes, in aggregate, the financial information of all individually immaterial associates that are accounted for using the equity method:

Aggregated financial information of LafargeHolcim's share in other associates

Million CHF

30.9.2015

31.12.2014

Carrying amount of investments in other associates

622

513

 

 

 

Net income

19

3

Other comprehensive earnings

0

0

Total comprehensive earnings

19

3

There are no unrecognized shares of losses, either for the current reporting period or cumulatively, relating to the above associates.

Movement in investments in joint ventures

Million CHF

2015

20141

1

Restated due to changes in accounting policies, see note 2.

2

Mainly relating to the disposal of the investment in Siam City Cement Public Company Limited, see note 4.

January 1

588

538

Share of profit of joint ventures

108

101

Dividends earned

(74)

(84)

Merger with Lafarge (note 4)

1,386

 

Net disposals

(269)2

(3)

Reclassifications

0

(1)

Impairments

(8)

0

Currency translation effects

7

37

December 31

1,739

588

The position “Merger with Lafarge” mainly relates to Lafarge Ciments (Morocco). The provisional value of the investment in this joint venture amounts to CHF 1,099 million as of July 10, 2015. The disclosed amounts are as of July 10, 2015 since Lafarge Ciments is a publicly listed company in Morocco and has not yet published its financial statements for the year 2015.

Lafarge Ciments (Morocco)

As of December 31, 2015, the Group holds 34.9 % of the voting rights in the joint venture company Lafarge Ciments.

The fair value of the investment in Lafarge Ciments based on a quoted market price on December 31, 2015 amounted to CHF 986 million.

Set out below is the summarized financial information for the material joint venture Lafarge Ciments, which is accounted for using the equity method. The summarized financial information presented below are the amounts included in the IFRS financial statements of Lafarge Ciments as at June 30, 2015.

Lafarge Ciments – Statement of financial position

Million CHF

30.6.2015

Current assets

186

Long-term assets

597

Total assets

783

 

 

Current liabilities

309

Long-term liabilities

25

Total liabilities

334

 

 

Net assets

449

 

 

Shareholders’ equity (excluding non-controlling interest)

322

The provisional fair value of the investment in Lafarge Ciments consists of:

Lafarge Ciments

Million CHF

10.7.2015

Group share of 34.9% of shareholders’ equity (excluding non-controlling interest)

381

Provisional Goodwill

717

Total (provisional fair value)

1,099

The following table summarizes, in aggregate, the financial information of all individually immaterial joint ventures that are accounted for using the equity method:

Aggregated financial information of LafargeHolcim's share in joint ventures

Million CHF

10.7.2015

31.12.20141

1

Restated due to changes in accounting policies, see note 2.

Carrying amount of investments in joint ventures

563

588

 

 

 

Net income

35

101

Other comprehensive earnings

0

0

Total comprehensive earnings

35

101

There are no unrecognized shares of losses, either for the current reporting period or cumulatively, relating to the above joint ventures.