Note 34. Interests in joint ventures

Alfa Laval owns 50 percent in the following 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 two fully owned subsidiaries; Alfdex Kunshan Co Ltd and Alfdex US LLC.

None of these joint ventures are of significant importance and therefore no disclosures are made regarding each individual joint venture. Instead, aggregated information is provided about the reported value of Alfa Laval’s share in these individually insignificant joint ventures. The companies are consolidated using the equity method, which means that the net result from the jointly owned companies is recorded in one line item in the operating income. The counter entry is an increase or decrease in 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.