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 company is a Steel Service Center providing customer specific solutions within thin sheets and coils. 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. The joint venture is not material to BE Group’s financial result.

Earnings in joint venture ArcelorMittal BE Group SSC AB Resultat i joint venture ArcelorMittal BE Group SSC AB 2022 2021
Profit/loss before tax Resultat före skatt 85 165
Tax Skatt -18 -35
Profit/loss after tax Resultat efter skatt 67 130
Dividends received Erhållen utdelning 33
Overview of income statements and balance sheets for the joint venture Sammandrag av resultaträkningar och
balansräkningar för joint venture
2022 2021
Net sales Nettoomsättning 1,192 1,032
Operating result 1) Rörelseresultat 1) 85 165
Net financial items Finansnetto 0 0
Tax Skatt -18 -35
Profit/loss for the year 2) Årets resultat 2) 67 130
1) Depreciations amounts to 1) Avskrivningar uppgår till 6 8
2022 2021
Non-current assets Anläggningstillgångar 194 186
Current assets excl. cash and equivalents Omsättningstillgångar exkl. likvida medel 323 424
Cash and equivalents Likvida medel 56 25
Total assets Summa tillgångar 573 635
2022 2021
Equity Eget kapital 401 399
Provisions Avsättningar 20 20
Long-term interest-bearing liabilities Långfristiga räntebärande skulder
Short-term interest-bearing liabilities Kortfristiga räntebärande skulder 0 5
Other non-interest-bearing liabilities Övriga icke räntebärande skulder 152 211
Total equity and liabilities Summa eget kapital och skulder 573 635
Participations in joint ventures Andelar i joint venture 2022 2021
Opening balance, cost Ingående anskaffningsvärde 182 117
Dividends received Erhållen utdelning -33
Share in earnings of joint venture Resultatandel i joint venture 34 65
Carrying amount at year-end 2) Bokfört värde vid årets utgång 2) 183 182
Transactions with joint venture
ArcelorMittal BE Group SSC AB
Transaktioner med joint venture ArcelorMittal BE Group SSC AB 2022 2021
Receivables due from joint venture Fordringar på joint venture
Debts owed to joint venture Skulder till joint venture 4 11
Sales to joint venture Försäljning till joint venture
Purchases from joint venture Inköp från joint venture 85 111
Dividends received Erhållen utdelning 32
Transactions with the joint venture are conducted at market prices and terms.

2) The result is reported under “Participations in earnings of joint venture” in the consolidated income statement. Book value at the end of the year is reported under “Participations in joint ventures” in the consolidated balance sheet.

Impairment testing

Through BE Group Sverige AB, the Group is the owner of 50 percent of the shares in ArcelorMittal BE Group SSC AB. The value of the company’s proportion is tested yearly by the recoverable amount being compared with the book value. Book value amounts to SEK 183 M.

The calculation as per December 31, 2022 shows that there is no impairment requirement. Nor was there any impairment requirement for the calculation as per December 31, 2021. For more information regarding impairment testing of goodwill, see Note 12.