7. Investments in Associates and Joint Ventures

in CHF m	2017	2016
As per 1 January	516	586
Change in the scope of consolidation	–104	–6
Additions	10	5
Impairment (see note 26)	—	1
Disposals	–6	—
Share in profit	81	85
Dilution gain from capital increase	22	—
Equity repayment	—	–64
Share in other comprehensive income of associates and joint ventures	–3	–4
Dividends received	–45	–85
Exchange rate differences	37	–2
At 31 December	508	516
Thereof joint ventures	112	185

The key financial data of the Group’s principal associates is as follows:

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Investments in associates
	Stahl Lux 2 SA		Infraserv GmbH & Co. Höchst KG		Infraserv GmbH & Co. Gendorf KG		Infraserv GmbH & Co. Knapsack KG		Others
	Luxembourg		Germany		Germany		Germany
in CHF m	2017	2016	2017	2016	2017	2016	2017	2016	2017	2016
Summarized financial information
Interest held %	20%	24%	33%	33%	50%	50%	21%	21%	—	—

Revenue	744	661	1 078	1 030	253	240	218	202	351	329
Total comprehensive income	107	78	62	72	21	13	15	16	16	26
Net income	107	78	71	78	20	18	15	16	16	26
Other comprehensive income	—	—	–9	–6	1	–5	—	—	—	—

Current assets	434	367	311	295	80	67	69	58	273	253
Non-current assets	527	262	660	623	188	159	120	108	122	145
Current liabilities	–173	–132	–250	–221	–86	–63	–59	–45	–205	–164
Non-current liabilities	–607	–607	–419	–417	–65	–64	–34	–29	–60	–97
Net assets	181	–110	302	280	117	99	96	92	130	137

Reconciliation of book value
Book value beginning of period	100	180	98	104	50	51	18	17	65	57
Additions	—	—	—	—	—	—	—	—	10	5
Disposals	—	—	—	—	—	—	—	—	–6	—
Change in the scope of consolidation	—	—	—	—	—	—	—	—	–5	–6
Impairment	—	—	—	—	—	—	—	—	—	1
Share in profit for the period	26	18	23	26	10	9	3	4	1	16
Dilution gain from capital increase	22	—	—	—	—	—	—	—	—	—
Share in other comprehensive income	—	—	–3	–2	—	–2	—	—	—	—
Equity repayment	—	–64	—	—	—	—	—	—	—	—
Dividends received	—	–33	–28	–30	–6	–6	–3	–3	–8	–8
Foreign exchange rate differences	11	–1	8	—	5	–2	2	—	3	—
Book value end of the period	159	100	98	98	59	50	20	18	60	65

Group’s share in net assets	36	–26	100	93	58	50	20	19	60	65
Fair value adjustment/goodwill	124	124	—	—	—	—	—	—	—	—
Taxes, minorities and other adjustments	–1	2	–2	5	1	—	—	–1	—	—
Book value at the end of the period	159	100	98	98	59	50	20	18	60	65

In 2014 Clariant sold its Leather Service Business to the Netherlands-based Stahl group for a cash consideration and a 24% stake in the acquiring group. Stahl is a producer of high-quality chemicals, dyes, and coatings for leather and other applications and has about 1 700 employees.

In 2017 Stahl engaged in a share capital increase, in which Clariant did not participate. As a result Clariant’s stake decreased from 24% to 20% and a dilution gain amounting to CHF 22 million was recognized in the income statement as a part of »Income from associates and joint ventures«.

The Infraserv companies were set up by the former Hoechst group to cater to the infrastructure needs of its subsidiaries in Germany prior to 1997. The shareholdings in associates summarized under »Others« concern mainly companies specializing in selling Clariant products.

On 31 December 2017, accumulated unrecognized losses amounted to CHF 6 million (2016: CHF 12 million).

The key financial data of the Group’s principal joint ventures is as follows:

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Investments in joint ventures
	Scientific Design Company Inc.		Süd-Chemie India Pvt Ltd
	USA		India
in CHF m	2017	2016	2017	2016
Summarized financial information
Interest held %	50%	50%	50%	50%

Revenue	78	80	23	81
Total comprehensive income	5	8	5	15
Net income	5	8	5	15
Other comprehensive income	—	—	—	—

Current assets	81	76	—	179
Non-current assets	29	30	—	13
Current liabilities	–20	–19	—	–87
Non-current liabilities	–7	–8	—	–5
Net assets	83	79	—	100

Reconciliation of book value
Book value beginning of period	100	95	85	82
Change in scope of consolidation	—	—	–99	—
Share in profit for the period	3	4	15	8
Dividends received	—	—	—	–5
Foreign exchange rate differences	9	1	–1	—
Book value end of the period	112	100	—	85

Group’s Share in net assets at the end of the period	43	39	—	50
Fair value adjustment/goodwill	66	66	—	28
Taxes, minorities and other adjustments	3	–5	—	7
Book value at the end of the period	112	100	—	85

Scientific Design Company Inc. is a producer of ethylene and oxide catalysts headquartered in the United States and has around 140 employees. Co-owner is the Saudi Arabia-based Sabic group.

Süd-Chemie India Pvt Ltd (SCIL) is a producer of syngas, air purification and refinery catalysts. It has around 400 employees and is headquartered in India. It is co-owned by private investors based in India.

As of 1 April 2017 this company became a fully consolidated subsidiary of the Clariant Group, see note 25, Acquisitions. The table shows the activities of SCIL for the first three months of 2017.

Joint venture

Joint ventures are all activities in which Clariant is involved with another partner. The accounting method applied for joint ventures depends on the speciﬁc conditions of the participation. VIEW ENTIRE GLOSSARY

Catalyst

A substance that lowers the activation energy, thereby increasing the rate of a chemical reaction without being consumed by the reaction itself (Clariant Business Unit Catalysts). VIEW ENTIRE GLOSSARY

Integrated Report 2017

7. Investments in Associates and Joint Ventures

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