Note 34. Interests in joint ventures

Alfa Laval owns 50 percent in five different joint ventures: Rolls Laval Heat Exchangers Ltd with Rolls Royce as partner, Alfdex AB with Concentric as partner, Stadion Laks AS with Lingalaks AS partner and AlfaWall AB and AlfaWall Oceanbird AB with Wallenius as partner. Alfdex AB has a fully owned subsidiary Alfdex Kunshan Co Ltd. None of these joint ventures are of material importance and for that reason no disclosures are made of each individual joint venture. Instead, disclosures in aggregate are made on the carrying amount of Alfa Laval’s interests in these individually immaterial joint ventures. See the below tables.

Since joint ventures as from 2014 are consolidated according to the equity method in IFRS 11 ”Joint arrangements”, the amounts in the following two tables are no longer part of Alfa Laval’s statements over consolidated comprehensive income and consolidated financial position.

Instead, the application of the equity method means that the net income in the joint ventures is booked into one line in the operating income. The counter entry is an increase or decrease of the value of shares in joint ventures. Received dividends reduce the value of the shares in joint ventures.

The effect on comprehensive income is the same as the net income.