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 | 2021 | 2020 |
| Profit/loss before tax | Resultat före skatt | 165 | 17 |
| Tax | Skatt | -35 | -3 |
| Profit/loss after tax | Resultat efter skatt | 130 | 14 |
| Dividends received | Erhållen utdelning | – | – |
| Overview of income statements and balance sheets for the joint venture | Sammandrag av resultaträkningar och balansräkningar för joint venture | 2021 | 2020 |
| Net sales | Nettoomsättning | 1,032 | 670 |
| Operating result | Rörelseresultat | 165 | 18 |
| Net financial items | Finansnetto | 0 | -1 |
| Tax | Skatt | -35 | -3 |
| Profit/loss for the year | Årets resultat | 130 | 14 |
| 2021 | 2020 | ||
| Non-current assets | Anläggningstillgångar | 186 | 189 |
| Current assets excl. cash and equivalents | Omsättningstillgångar exkl. likvida medel | 424 | 197 |
| Cash and equivalents | Likvida medel | 25 | 8 |
| Total assets | Summa tillgångar | 635 | 394 |
| 2021 | 2020 | ||
| Equity | Eget kapital | 399 | 283 |
| Provisions | Avsättningar | 20 | 20 |
| Interest-bearing liabilities | Räntebärande skulder | 5 | 1 |
| Other non-interest-bearing liabilities | Övriga icke räntebärande skulder | 211 | 90 |
| Total equity and liabilities | Summa eget kapital och skulder | 635 | 394 |
| Participations in joint ventures | Andelar i joint venture | 2021 | 2020 |
| Opening balance, cost | Ingående anskaffningsvärde | 117 | 110 |
| Dividends received | Erhållen utdelning | – | – |
| Share in earnings of joint venture | Resultatandel i joint venture | 65 | 7 |
| Rounding | Avrundning | – | – |
| Carrying amount at year-end | Bokfört värde vid årets utgång | 182 | 117 |
| Transactions with joint venture ArcelorMittal BE Group SSC AB | Transaktioner med joint venture ArcelorMittal BE Group SSC AB | 2021 | 2020 |
| 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 | 111 | 64 |
| Dividends received | Erhållen utdelning | – | – |
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 (10.7) before tax. The carrying amount is SEK 182 M. Read more about the testing of Goodwill in Note 12.