07 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 silicon wafers for the semiconductor industry. WACKER supplies Siltronic with polysilicon, the key base material for the production of silicon wafers.
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Company’s name and registered office: Siltronic AG, Munich, Germany, and its subsidiaries |
2018 |
2017 |
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Ownership interest (%) |
30.83 |
30.83 |
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Proportion of voting rights (%) |
30.83 |
30.83 |
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Total non-controlling interests (shares) |
9,250,000 |
9,250,000 |
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Xetra closing price at year-end (€) |
72.20 |
121.30 |
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Market capitalization of shares (€ million) |
667.9 |
1,122.0 |
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Dividends received (€ million) |
23.1 |
– |
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€ million |
2018 |
2017 |
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Ownership interest (%) |
30.8 |
30.8 |
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Current assets |
1,078.9 |
706.0 |
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Noncurrent assets excluding goodwill |
1,174.3 |
1,037.1 |
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Current liabilities |
277.9 |
152.1 |
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Noncurrent liabilities |
736.8 |
578.3 |
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Net assets (100 percent) |
1,238.5 |
1,012.7 |
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Less share of non-controlling interests |
-41.2 |
-14.8 |
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Group’s share of net assets |
369.2 |
307.7 |
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Effects of consolidation |
1.7 |
1.3 |
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Goodwill |
245.7 |
245.7 |
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Carrying amount of share in associate |
616.6 |
554.7 |
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Sales2 |
1,456.7 |
919.3 |
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Group net income for the year2 |
323.2 |
130.5 |
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Other comprehensive income2 |
-48.3 |
-12.4 |
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Total2 |
274.9 |
118.1 |
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€ million |
2018 |
2017 |
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Carrying amount of equity-accounted investments |
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At the beginning of the year |
554.7 |
518.6 |
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Share of profit / loss for the period |
99.5 |
38.7 |
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Other changes recognized in profit or loss |
0.4 |
1.3 |
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Change recognized in profit or loss |
99.9 |
40.0 |
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Dividends |
-23.1 |
– |
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Change in other equity |
-14.9 |
-3.9 |
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At the end of the year |
616.6 |
554.7 |
Taken individually, the remaining joint ventures and associates are immaterial 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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€ million |
2018 |
2017 |
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Carrying amount of equity-accounted investments |
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At the beginning of the year |
9.9 |
11.2 |
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Share of profit / loss for the period |
1.8 |
2.0 |
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Share of change in other equity |
-0.1 |
-0.6 |
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Overall result of the companies |
1.7 |
1.4 |
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Dividends |
– |
-2.7 |
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Change in the scope of consolidation |
– |
– |
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At the end of the year |
11.6 |
9.9 |
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€ million |
2018 |
2017 |
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Carrying amount of equity-accounted investments |
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At the beginning of the year |
– |
– |
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Share of profit / loss for the period |
0.4 |
0.3 |
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Share of change in other equity |
0.1 |
-5.8 |
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Overall result of the companies |
0.5 |
-5.5 |
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Impairment loss reversal of equity-accounted investments |
29.6 |
– |
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Loss in excess of investment as per IAS 28.38 |
– |
5.5 |
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At the end of the year |
30.1 |
– |
If shareholders have granted loans to joint ventures or associates, the repayment of these generally takes priority over dividend distribution.
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.
In 2018, the carrying amount included the impairment loss reversal of the equity-accounted investment in the Chinese siloxane joint venture with DowDupont.
The following shows the key figures for companies accounted for using the equity method.
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€ million |
2018 |
2017 |
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Total |
Attributable to WACKER |
Total |
Attributable to WACKER |
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Key Figures for Joint Ventures |
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Profit or loss from continuing operations |
3.6 |
1.8 |
4.0 |
2.0 |
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Other comprehensive income |
-0.2 |
-0.1 |
-1.2 |
-0.6 |
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Total |
3.4 |
1.7 |
2.8 |
1.4 |
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Key Figures for Associates |
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Profit or loss from continuing operations |
324.8 |
99.9 |
127.1 |
39.1 |
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Other comprehensive income |
-47.9 |
-14.8 |
-35.9 |
-9.7 |
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Total |
276.9 |
85.1 |
91.2 |
29.4 |