2.3 – Joint Ventures and Associated Companies BASF has shareholdings in two material joint ventures. Wintershall Dea GmbH, Kassel/Hamburg, Germany, is jointly operated by BASF and LetterOne. BASF holds a 72.7% share in the company’s equity. The joint venture became effective on May 1, 2019 and is accounted for using the equity method. The company is considered a joint venture because BASF and LetterOne defined the decision-making processes in the governing bodies as such that neither party alone can control the relevant activities of Wintershall Dea. The following table shows values for the Wintershall Dea group, Kassel/Hamburg, Germany, including adjustments for fair value made at initial recognition and the resulting effects on earnings. (XLS:) XLS Financial information on the Wintershall Dea group, Kassel/Hamburg, Germany (100%) (Million €) 2019 Balance sheet Noncurrent assets 31,920 of which goodwill from fair value adjustments 2,688 Current assets 2,589 of which marketable securities, cash and cash equivalents 814 Assets 34,509 Equity 17,058 Noncurrent liabilities 15,273 of which financial indebtedness 6,028 Current liabilities 2,178 of which financial indebtedness 576 Total equity and liabilities 34,509 Statement of income from May 1, 2019 to December 31, 2019 Sales revenue 3,272 Depreciation and amortization (1,544) Interest income 75 Interest expenses (68) Income taxes (286) Total comprehensive income (187) Carrying amount according to the equity method as of May 1, 2019 (initial recognition at fair value) 14,078 Proportional comprehensive income (136) of which proportional net income (86) Capital measures/dividends/changes in the scope of consolidation/other adjustments (1,541) of which dividends – Carrying amount according to the equity method as of December 31, 2019 12,401 BASF-YPC Company Ltd., Nanjing, China, in which BASF and Sinopec each has a 50% share, operates the Verbund site in Nanjing. (XLS:) XLS Financial information on BASF-YPC Company Ltd., Nanjing, China (100%) (Million €) 2019 2018 Balance sheet Noncurrent assets 1,032 1,110 Current assets 768 932 of which marketable securities, cash and cash equivalents 148 201 Assets 1,800 2,042 Equity 1,542 1,691 Noncurrent liabilities 3 29 of which financial indebtedness 0 28 Current liabilities 255 322 of which financial indebtedness 28 92 Total equity and liabilities 1,800 2,042 Statement of income Sales revenue 2,536 2,764 Depreciation and amortization 209 206 Interest income 3 5 Interest expenses 4 6 Income taxes 71 112 Income after taxes 212 343 Carrying amount according to the equity method as of the beginning of the year 847 879 Proportional income after taxes 106 171 Proportional change of other comprehensive income – (6) Total comprehensive income 106 165 Capital measures / dividends / changes in the scope of consolidation / other adjustments (181) (197) of which dividends (200) (197) Other adjustments to income and expenses – – Carrying amount according to the equity method as of the end of the year 772 847 Non-material joint ventures accounted for using the equity method include, in particular: Heesung Catalysts Corporation, Seoul, South Korea, which is jointly operated with the partner, Heesung (BASF interest: 50%) N.E. Chemcat Corporation, Tokyo, Japan, which is jointly operated with the partner, Sumitomo Metal Mining Co. Ltd. (BASF interest: 50%) (XLS:) XLS Non-material joint ventures accounted for using the equity method (BASF interest) (Million €) 2019 2018 a This item includes accumulated effects from the discontinued oil and gas business in the amount of €12 million in 2018. b In 2018, the amount of €939 million was transferred to the assets of the oil and gas disposal group. Carrying amount according to the equity method as of the beginning of the year 553 1,509 Proportional income after taxesa 98 106 Proportional change of other comprehensive income Equity 1 16 Total comprehensive income 99 122 Capital measures/dividends/changes in the scope of consolidation/other adjustmentsb (94) (1,054) Other adjustments to income and expensesa (21) (24) Carrying amount according to the equity method as of the end of the year 537 553 Non-material associated companies accounted for using the equity method include, in particular: Solenis UK International Ltd., London, United Kingdom (BASF interest: 49%) Stahl Lux 2 S.A., Luxembourg (BASF interest: 16.32%) is classified as an associated company as BASF can exercise significant influence over the company due to the fact that its approval is required for certain relevant board resolutions Yara Freeport LLC, Wilmington, Delaware (BASF interest: 32%) BASF Huntsman Shanghai Isocyanate Investment B.V., Arnhem, Netherlands (BASF interest: 50%) (XLS:) XLS Non-material associated companies accounted for using the equity method (BASF interest) (Million €) 2019 2018 a This item includes effects from the discontinued oil and gas business in the amount of €87 million in 2018. b In 2019, the shareholding in Solenis UK International Ltd. was recognized for the first time, in the amount of €590 million. The amount of €65 million was transferred to the assets of the disposal group for the pigments business. In 2018, the amount of €1,613 million was transferred to the assets of the disposal group for the oil and gas business. Carrying amount according to the equity method as of the beginning of the year 803 2,327 Proportional income after taxesa 22 115 Proportional change of other comprehensive income Equity (16) 11 Total comprehensive income 6 126 Capital measures/dividends/changes in the scope of consolidation/other adjustmentsb 492 (1,650) Other adjustments to income and expenses (3) – Carrying amount according to the equity method as of the beginning of the year 1,298 803 As of August 31, 2019, 70% of the carrying amount of CIMO Compagnie industrielle de Monthey S.A., Monthey, Switzerland (BASF interest: 50%), was reclassified to assets of the disposal group for the pigments business. This represents the 35% interest of BASF Colors & Effects Switzerland AG in the company. back next