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VINNAPAS® EP 3360

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06 Investments in Joint Ventures and Associates Accounted for Using the Equity Method

The Group applies the equity method to account for joint ventures and associates. Since reduction of the company’s stake in Siltronic AG and deconsolidation of the latter as of March 15, 2017, the remaining share of 30.8 percent has been accounted for using the equity method. The Group considers its investment in Siltronic AG (and its subsidiaries) to be significant.

The Siltronic Group is one of the world’s leading producers of wafers for the semiconductor industry. WACKER supplies Siltronic with , the key base material for the production of silicon wafers.

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Significant Investments in Associates

 

  

 

Company’s name and registered office:
Siltronic AG, Munich, Germany, and its subsidiaries

  

2017

 

  

 

 

  

 

Ownership interest (%)

  

30.83

Proportion of voting rights (%)

  

30.83

Total non-controlling interests (shares)

  

9,250,000

Xetra closing price at year-end (€)

  

121.30

Market capitalization of shares (€ million)

  

1,122.0

Dividends received (€ million)

  

–

 

  

 
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Condensed Financial Information on Siltronic AG and Its Subsidiaries1 on a 100-Percent Basis

 

  

 

€ million

  

2017

 

  

 

1

Consolidated financial statements of the Siltronic sub-group in accordance with IFRS

2

Information based on figures for the period after March 15, 2017, due to first-time inclusion during the year

 

  

 

Ownership interest (%)

  

30.8

Current assets

  

706.0

Noncurrent assets excluding goodwill

  

1,037.1

 

  

 

Current liabilities

  

152.1

Noncurrent liabilities

  

578.3

 

  

 

Net assets (100 percent)

  

1,012.7

Less share of non-controlling interests

  

-14.8

Group’s share of net assets

  

307.7

Elimination of unrealized interim profits and losses

  

1.3

Goodwill

  

245.7

Carrying amount of share in associate

  

554.7

 

  

 

Sales2

  

919.3

Group net income for the year2

  

130.5

Other comprehensive income2

  

-12.4

Total2

  

118.1

 

  

 
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Reconciliation of the Equity Carrying Amount

 

  

 

€ million

  

2017

 

  

 

 

  

 

Carrying amount of equity-accounted investments

  

 

At first-time consolidation

  

518.6

Share of profit/loss for the period

  

38.7

Other changes recognized in profit or loss

  

1.3

Change recognized in profit or loss

  

40.0

Change in other equity

  

-3.9

At the end of the year

  

554.7

 

  

 

Taken individually, the remaining joint ventures and associates are not of significance for the Group’s earnings, net assets or financial position. The following table shows the reporting-period change in the total carrying amounts of investments:

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Combined Pro Rata Financial Data for Joint Ventures Not Regarded as Significant When Taken Individually

 

  

 

  

 

€ million

  

2017

  

2016

 

  

 

  

 

 

  

 

  

 

Carrying amount of equity-accounted investments

  

 

  

 

At the beginning of the year

  

11.2

  

18.0

Share of profit/loss for the period

  

2.0

  

3.2

Share of change in other equity

  

-0.6

  

0.7

Overall result of the companies

  

1.4

  

3.9

Dividends

  

-2.7

  

-4.1

Change in the scope of consolidation

  

–

  

-6.6

At the end of the year

  

9.9

  

11.2

 

  

 

  

 

In the previous year, Wacker Asahikasei Co. Ltd. was fully consolidated for the first time.

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Combined Pro Rata Financial Data for Associates Not Regarded as Significant When Taken Individually

 

  

 

  

 

€ million

  

2017

  

2016

 

  

 

  

 

 

  

 

  

 

Carrying amount of equity-accounted investments

  

 

  

 

At the beginning of the year

  

–

  

3.2

Share of profit/loss for the period

  

0.3

  

-3.0

Share of change in other equity

  

-5.8

  

-0.2

Overall result of the companies

  

-5.5

  

-3.2

Loss in excess of investment as per IAS 28.38

  

5.5

  

–

At the end of the year

  

–

  

–

 

  

 

  

 

If shareholders have made loans to joint ventures or associates, extinguishment of these loans takes precedence over the distribution of dividends.

Deviations between the share of net income and the result from investments in joint ventures and associates, and between the share of equity and the carrying amount of investments in joint ventures and associates accounted for using the equity method, are primarily the result of fair value adjustments and consolidation measures.

The following shows the key figures for companies accounted for using the equity method.

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€ million

  

2017

  

2016

 

  

Total

  

Attributable to WACKER

  

Total

  

Attributable to WACKER

 

  

 

  

 

  

 

  

 

 

  

 

  

 

  

 

  

 

Key Figures for Joint Ventures

  

 

  

 

  

 

  

 

Profit or loss from continuing operations

  

4.0

  

2.0

  

6.4

  

3.2

Other comprehensive income

  

-1.2

  

-0.6

  

1.4

  

0.7

Total

  

2.8

  

1.4

  

7.8

  

3.9

 

  

 

  

 

  

 

  

 

Key Figures for Associates

  

 

  

 

  

 

  

 

Profit or loss from continuing operations

  

127.1

  

39.1

  

-12.0

  

-3.0

Other comprehensive income

  

-35.9

  

-9.7

  

-0.8

  

-0.2

Total

  

91.2

  

29.4

  

-12.8

  

-3.2

 

  

 

  

 

  

 

  

 
Silicon
After oxygen, silicon is the most common element in the earth’s crust. In nature, it occurs without exception in the form of compounds, chiefly silicon dioxide and silicates. Silicon is obtained through energy-intensive reaction of quartz sand with carbon and is the most important raw material in the electronics industry.
Polysilicon
Hyperpure polycrystalline silicon from WACKER POLYSILICON is used for manufacturing wafers for the electronics and solar industries. To produce it, metallurgical-grade silicon is converted into liquid trichlorosilane, highly distilled and deposited in hyperpure form at 1,000 ° C.
Silicones
General term used to describe compounds of organic molecules and silicon. According to their areas of application, silicones can be classified as fluids, resins or rubber grades. Silicones are characterized by a myriad of outstanding properties. Typical areas of application include construction, the electrical and electronics industries, shipping and transportation, textiles and paper coatings.