23 Investments in associates and joint ventures

Million CHF

2014

2013

Investments in associates

1,387

1,232

Investments in joint ventures

372

330

Total

1,758

1,562

Movement in investments in associates

Million CHF

2014

2013

January 1

1,232

1,269

Share of profit of associates

93

117

Dividends earned

(41)

(98)

Net additions (disposals)

7

(7)

Reclassifications

8

(29)

Impairments

0

(2)

Currency translation effects

87

(18)

December 31

1,387

1,232

Investments in associates

Million CHF

30.9.2014

31.12.2013

Huaxin Cement

819

729

Other associates

520

503

Total

1,339

1,232

The disclosed amounts for the investments in associates are as of September 30, 2014 and include only the first nine months. This is due to the fact that Huaxin Cement, a material associate of the Group, is a publicly listed company in China and has not yet published its financial statements for the year 2014.

Huaxin Cement

Huaxin Cement is Holcim’s strategic partner in China.

As of December 31, 2014, the Group holds 41.9% (2013: 41.9%) of the voting rights in the associate company Huaxin Cement.

The fair value of Huaxin Cement based on a quoted market price on December 31, 2014 amounted to CHF 2,303 million (2013: 1,521).

Set out below is the summarized financial information for the material associate company Huaxin Cement, which is accounted for using the equity method. The summarized financial information presented below are the amounts included in the IFRS financial statements of Huaxin Cement as at September 30, 2014 and as at December 31, 2013. As of September 30, 2014, dividends of CHF 11 million (December 31, 2013: 11) were received from Huaxin Cement.

Huaxin Cement - Statement of financial position

Million CHF

30.9.2014

31.12.2013

Current assets

975

946

Long-term assets

3,169

2,913

Total assets

4,144

3,859

 

 

 

Current liabilities

1,233

1,291

Long-term liabilities

1,123

999

Total liabilities

2,356

2,290

 

 

 

Net assets

1,787

1,569

 

 

 

Shareholders' equity (excluding non-controlling interest)

1,587

1,390

Huaxin Cement - Statement of comprehensive earnings

Million CHF

Jan–Sept 2014

Jan–Dec 2013

Net sales

1,657

2,419

 

 

 

Net income

180

258

 

 

 

Other comprehensive earnings

0

(1)

Total comprehensive earnings

179

257

A reconciliation of the summarized financial information to the carrying amount of the investment in Huaxin Cement is as follows:

Huaxin Cement

Million CHF

30.9.2014

31.12.2013

Group share of 41.9% (2013: 41.9%) of shareholders' equity (excluding non-controlling interest)

665

582

Goodwill

155

147

Total

819

729

The Group has additional interests in associates none of which is considered as individually material. The following table summarizes, in aggregate, the financial information of all individually immaterial associates that are accounted for using the equity method:

Aggregated financial information of Holcim's share in other associates

Million CHF

30.9.2014

31.12.2013

Carrying amount of investments in other associates

520

503

 

 

 

Net income

24

25

Other comprehensive earnings

0

0

Total comprehensive earnings

24

25

There are no unrecognized shares of losses, either for the current reporting period or cumulatively, relating to the above associates.

Movement in investments in joint ventures

Million CHF

2014

2013

January 1

330

270

Share of profit of joint ventures

46

43

Dividends earned

(32)

(30)

Net (disposals) additions

(3)

2

Reclassifications

(1)

75

Currency translation effects

31

(29)

December 31

372

330

The Group has no interests in joint ventures that are regarded as individually material.

The following table summarizes, in aggregate, the financial information of all individually immaterial joint ventures that are accounted for using the equity method:

Aggregated financial information of Holcim's share in joint ventures

Million CHF

2014

2013

Carrying amount of investments in joint ventures

372

330

 

 

 

Net income

46

43

Other comprehensive earnings

0

0

Total comprehensive earnings

46

43

There are no unrecognized shares of losses, either for the current reporting period or cumulatively, relating to the above joint ventures.

Joint operation

Company

Principal place of business

Ownership interest

Cement Australia

Australia

50%

Cement Australia is a strategic partner of the Group by mainly supplying its shareholders with cement.

On March 28, 2013 the Group disposed of a 25 percent equity interest in Cement Australia to HeidelbergCement and retained a 50 percent equity interest in that company. This transaction resulted in Holcim losing control of Cement Australia and obtaining joint control over that entity. According to IFRS 11 Joint Arrangements it has been classified as a joint operation.