Chapters
Annual Report 2020

21. Non-Controlling Interest

Accounting Policy
The transactions with non-controlling interests are accounted for as equity transactions.

Significant Accounting Estimates and Judgments

Consolidation of the Synoptik Group

The Company’s ownership interest in the Synoptik Group is 63.29%. The agreement between the Company and the partner stipulates that the partner has certain affirmative votes in order to protect the variable returns of their investment. Resulting from contractual arrangements between the Company and the partner on key operational, procurement and organizational activities, the Company has the ability to execute power over the relevant activities of Synoptik, which directly affects Synoptik’s returns. Following this assessment, the Company concluded that it has control and the Synoptik Group is consolidated. At each reporting date this assessment is reconsidered.

The movements in Non-Controlling Interest can be specified as follows:

in thousands of EUR

2020

2019

at 1 January

87,109

88,384

Result for the year

22,171

16,888

Dividends paid

- 10,747

- 16,681

Acquisition of non-controlling interest

-

- 33

Remeasurement of post-employment benefit obligation

- 880

- 2,955

Cash flow hedge reserve

49

7

Hedge results transferred to the carrying value of inventory purchased during the year

- 184

- 179

Currency translation differences

- 1,774

1,678

At 31 December

95,744

87,109

The financial information for the Synoptik Group (non-controlling interest of 36.71%) is as follows:

in thousands of EUR

31 December 2020

31 December 2019

Summarized Balance Sheet:

Non-current assets

184,565

181,891

Current assets

158,217

117,615

Equity

177,457

152,261

Non-current liabilities

66,625

69,332

Current liabilities

98,700

77,913

The accumulated non-controlling interest for the Synoptik Group amounts to €65,144 (2019: €55,895).

The financial information for operations in Switzerland (non-controlling interest of 21%) is as follows:

in thousands of EUR

31 December 2020

31 December 2019

Summarized Balance Sheet:

Non-current assets

295,847

310,592

Current assets

28,140

36,632

Equity

34,551

46,211

Non-current liabilities

227,212

244,554

Current liabilities

62,224

56,459

The accumulated non-controlling interest in Switzerland amounts to €7,313 (2019: €9,778).

The financial information for operations in Mexico (non-controlling interest of 30%) is as follows:

in thousands of EUR

31 December 2020

31 December 2019

Summarized Balance Sheet:

Non-current assets

76,987

98,210

Current assets

49,700

64,954

Equity

26,760

45,341

Non-current liabilities

49,403

62,931

Current liabilities

50,524

54,892

The accumulated non-controlling interest in Mexico amounts to €8,238 (2019: €13,856).