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 2020 2019
Profit/loss before tax Resultat före skatt 17 6
Tax Skatt -3 -1
Profit/loss after tax Resultat efter skatt 14 5
Dividends received Erhållen utdelning 5
Overview of income statements and balance sheets for the joint venture Sammandrag av resultaträkningar och
balansräkningar för joint venture
2020 2019
Net sales Nettoomsättning 670 814
Operating result Rörelseresultat 18 7
Net financial items Finansnetto -1 -1
Tax Skatt -3 -1
Profit/loss for the year Årets resultat 14 5
2020 2019
Non-current assets Anläggningstillgångar 189 195
Current assets excl. cash and equivalents Omsättningstillgångar exkl. likvida medel 197 239
Cash and equivalents Likvida medel 8 6
Total assets Summa tillgångar 394 440
2020 2019
Equity Eget kapital 283 274
Provisions Avsättningar 20 20
Interest-bearing liabilities Räntebärande skulder 1 72
Other non-interest-bearing liabilities Övriga icke räntebärande skulder 90 74
Total equity and liabilities Summa eget kapital och skulder 394 440
Participations in joint ventures Andelar i joint venture 2020 2019
Opening balance, cost Ingående anskaffningsvärde 110 113
Dividends received Erhållen utdelning -5
Share in earnings of joint venture 1) Resultatandel i joint venture 1) 7 3
Rounding Avrundning -1
Carrying amount at year-end Bokfört värde vid årets utgång 117 110
Transactions with joint venture
ArcelorMittal BE Group SSC AB
Transaktioner med joint venture ArcelorMittal BE Group SSC AB 2020 2019
Receivables due from joint venture Fordringar på joint venture
Debts owed to joint venture Skulder till joint venture 11 11
Sales to joint venture Försäljning till joint venture
Purchases from joint venture Inköp från joint venture 64 90
Dividends received Erhållen utdelning 5
1) The operation has obtained Covid-19 related government grants of SEK 0,3 M.

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 of the cash generating units is determined by calculating their value in use. The recoverable amount has been determined 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, which is deemed to corresponding to inflation. For the calculation of value in use, a discount rate has been calculated based on the weighted average cost of capital (WACC), which for the year amounted to 10.7 percent (10.8) before tax. The carrying amount is SEK 117 M. Read more about the testing of Goodwill in Note 12.