Note 17 – Participations in joint ventures

BE Group owns 50 percent of ArcelorMittal BE Group SSC AB (company registration number 556192-8770, domiciled in Karlstad, Sweden). The interest in the joint venture company is reported in the consolidated accounts using the equity method, by which 50 percent of profit after tax for the joint venture company will be reported as a share in earnings included in the consolidated operating result of BE Group.

Earnings in joint venture ArcelorMittal BE Group SSC AB Resultat i joint venture ArcelorMittal BE Group SSC AB 2018 2017
Profit/loss before tax Resultat före skatt 11 28
Tax Skatt -2 -6
Profit/loss after tax Resultat efter skatt 9 22
Dividends received Erhållen utdelning 9
Overview of income statements and balance sheets for the joint venture Sammandrag av resultaträkningar och
balansräkningar för joint venture
2018 2017
Net sales Nettoomsättning 838 784
Operating result Rörelseresultat 12 28
Net financial items Finansnetto -1 0
Tax Skatt -2 -6
Profit/loss for the year Årets resultat 9 22
2018 2017
Non-current assets Anläggningstillgångar 200 204
Current assets excl. cash and equivalents Omsättningstillgångar exkl. likvida medel 248 254
Cash and equivalents Likvida medel 2 17
Total assets Summa tillgångar 450 475
2018 2017
Equity Eget kapital 279 288
Provisions Avsättningar 20 20
Interest-bearing liabilities Räntebärande skulder 70 30
Other non-interest-bearing liabilities Övriga icke räntebärande skulder 81 137
Total equity and liabilities Summa eget kapital och skulder 450 475
Participations in joint ventures Andelar i joint venture 2018 2017
Opening balance, cost Ingående anskaffningsvärde 117 87
Dividends received Erhållen utdelning -9
Share in earnings of joint venture Resultatandel i joint venture 4 11
Reversal of write-down of participation in joint venture Återföring av nedskrivna andelar 20
Rounding Avrundning 1 -1
Carrying amount at year-end Bokfört värde vid årets utgång 113 117
Transactions with joint venture
ArcelorMittal BE Group SSC AB
Transaktioner med joint venture ArcelorMittal BE Group SSC AB 2018 2017
Receivables due from joint venture Fordringar på joint venture
Debts owed to joint venture Skulder till joint venture 7 5
Sales to joint venture Försäljning till joint venture 0
Purchases from joint venture Inköp från joint venture 98 74
Dividends received Erhållen utdelning 9
Transactions with the joint venture are conducted at market prices and terms.

Impairment testing

Through BE Group Sverige AB, the Group is the owner of 50 percent of the shares in ArcelorMittal BE Group SSC AB and the value of the company’s proportion was tested by the recoverable amount being compared with the carrying amount. The carrying amount consists of the book value.

The recoverable amount was estimated using a value in use based on cash flow forecasts for five years forward and an end value based on an annual rate of growth of 2 percent. Cash flows were calculated at present value with a discount rate of 10.8 percent before tax. The discount rate was determined based on the same methodology as in the testing of Goodwill (see Note 13) with the difference that the capital structure in joint ventures was used to weight together capital and interest expenses. The carrying amount is SEK 113 M.