G16 Shares in associated companies
Shares in associated companies |
2019 |
2020 |
|---|---|---|
Accumulated share of equity |
|
|
At the beginning of the year |
100 |
292 |
Acquisition of associates |
190 |
282 |
Share of profits for the year |
9 |
6 |
Less dividend received |
–1 |
–1 |
Translation differences during the year |
–5 |
–71 |
Carrying amount at the end of year |
292 |
508 |
2019 |
Country |
Revenue |
Profit |
Assets |
Liabilities |
Equity |
Group’s share, % |
|---|---|---|---|---|---|---|---|
Eimco Elecon |
India |
259 |
31 |
461 |
50 |
410 |
25.1 |
Fagersta Seco AB |
Sweden |
- |
- |
3 |
2 |
1 |
50.0 |
Fagerstahälsan AB |
Sweden |
8 |
0 |
8 |
6 |
2 |
50.0 |
Beam IT Spa - acquired in July 2019 |
Italy |
16 |
2 |
361 |
89 |
272 |
30.4 |
STC Rental Co. Ltd. - acquired in July 2019 |
Japan |
2 |
0 |
1 |
0 |
1 |
14.5 |
3C Metrologic |
Mexico |
13 |
0 |
10 |
7 |
3 |
40.0 |
Shanghai Innovatools Co. Ltd. |
China |
5 |
–1 |
11 |
2 |
8 |
40.0 |
|
|
|
|
|
|
|
|
2020 |
Country |
Revenue |
Profit |
Assets |
Liabilities |
Equity |
Group’s share, % |
Eimco Elecon |
India |
135 |
11 |
394 |
39 |
356 |
25.1 |
Fagersta Seco AB |
Sweden |
- |
- |
3 |
2 |
1 |
50.0 |
Fagerstahälsan AB |
Sweden |
8 |
0 |
8 |
6 |
2 |
50.0 |
Beam IT Spa |
Italy |
65 |
10 |
325 |
88 |
237 |
30.4 |
STC Rental Co. Ltd. |
Japan |
13 |
0 |
1 |
0 |
1 |
14.5 |
Varel Oil and Gas Holding Inc - acquired in. March 2020 |
USA |
77 |
–1 |
137 |
38 |
100 |
30.0 |
3C Metrologic |
Mexico |
9 |
2 |
9 |
4 |
4 |
40.0 |
Shanghai Innovatools Co. Ltd. |
China |
4 |
0 |
10 |
3 |
8 |
40.0 |
Additional information
The close of the reporting period for the associate Eimco Elecon is March 31, 2020. The dividend paid in 2020 is included in the calculation of the proportion of equity. No financial statements as of a later date have been obtained. Other associates are recognized one month in arrears with an exception for STC Rental Co. Ltd. that is recognized with a quarter in arrears.
Accounting principles
Associated companies
Associated companies are partly owned entities over which the Group commands a significant influence, but not control, over the financial and operating policies. Normally this means a shareholding of between 20 percent and 50 percent of the voting rights. Interests in associated companies are recognized in accordance with the equity method in the consolidated financial statements. Under the equity method, the carrying amounts of interests in associated companies correspond to the recognized equity of associated companies, any goodwill and any other remaining fair value adjustments recognized at acquisition date. Sandvik’s share of the associated company’s income, adjusted for dissolution of acquired surplus or deficit values, is recognized as a separate item in the consolidated income statement.