38. Group of consolidated companies
In addition to BLG AG and BLG KG, the consolidated financial statements
include the companies listed below:
Accounted for using the
Three companies are included in the consolidated financial statements
using the equity method due to immateriality, despite voting majorities,
as they are of only minor importance for presenting a true and fair view
of the net assets, financial position and results of operations of BLG
LOGISTICS. Materiality is determined on the basis of total assets. The
cumulative total assets of the three companies accounted for using the
equity method amounted to EUR 784,000 (previous year: EUR 717,000) in
A total of 12 companies in which a majority of shares and voting rights
are held are not fully consolidated due to immateriality. These are
general partner companies with only limited operations, one company with
no operations and one company in liquidation. These companies are of
only minor importance for presenting a true and fair view of the net
assets, financial position and results of operations of BLG LOGISTICS
and are therefore not included in the consolidated financial statements.
Materiality is determined on the basis of net profit for the year. The
cumulative net profit of the unconsolidated subsidiaries was
EUR -426,000 (previous year: EUR 4,000).
The structure of BLG LOGISTICS with the AUTOMOBILE, CONTRACT and
CONTAINER Divisions, the latter accounted for using the equity method, is shown in note 3.
A complete list of subsidiaries, joint ventures, associates and other
long-term equity investments is attached to the notes to the
consolidated financial statements.
The assumptions regarding control in companies in which the shareholding
does not exceed 50 percent are shown below.
BLG AutoRail GmbH, Bremen (shareholding: 50 percent)
The shares in BLG AutoRail GmbH are held by BLG Automobile Logistics
GmbH & Co. KG. Due to pooled voting rights under the partnership
arrangement, BLG LOGISTICS exercises control over this company. The
company is therefore accounted for using the full consolidation method.
BLG RailTec GmbH, Uebigau-Wahrenbrück (shareholding: 50
BLG RailTec GmbH was established as a wholly owned subsidiary of BLG
AutoRail GmbH, Bremen. The indirect shareholding is 50 percent. Control
of BLG AutoRail GmbH, Bremen, exists, so there is also indirect control
of the wholly owned subsidiary BLG RailTec GmbH. As the operational
leadership of the company was taken over due to a control and profit and
loss transfer arrangement, this company is fully consolidated.
39. Consolidation principles
The date of initial consolidation is the date on which, from an economic
point of view, the conditions established under IFRSs for the existence
of a subsidiary, an associate or a joint venture are met for the first
time. Similarly, the deconsolidation date is determined by the absence
of control, joint control or material influence.
Subsidiaries are companies that are controlled by BLG LOGISTICS.
BLG LOGISTICS controls an investee if there is an exposure to risk as a
result of a right to variable returns from the investment and the power
over the investment can be used to affect the amount of the returns.
All major subsidiaries are consolidated in the consolidated financial
Subsidiaries are generally fully consolidated in accordance with
IFRS 10. Deviating from this, certain companies of BLG LOGISTICS are not
consolidated for reasons of materiality (see note 38).
When a subsidiary is initially consolidated, the acquisition value of
the equity investment is compared with the Group’s share in the equity
of the respective company that is remeasured in accordance with IFRS 3.
In this process, assets and liabilities are recognized at their fair
values and previously unrecognized intangible assets that may be
recognized under IFRSs and contingent liabilities are recognized at fair
value in assets or liabilities. In subsequent consolidations, the hidden
assets and liabilities disclosed in this way are carried forward,
amortized or reversed in the same way that the corresponding assets and
liabilities are treated. Any excess of the acquisition cost of the
equity investment over the proportionate net fair value of the
identifiable assets, liabilities and contingent liabilities (positive
difference) resulting from initial consolidation is recognized as
goodwill and is subject to annual impairment testing (see note 12).
If any negative difference remains, the identification and measurement
of assets, liabilities and contingent liabilities and the deriviation of
the purchase price are reassessed. Any negative goodwill remaining after
this reassessment is recognized immediately through profit or loss.
Companies accounted for using the equity method
The companies accounted for using the equity method include investments
in joint ventures and associates.
Joint ventures exist when there are arrangements in which BLG LOGISTICS
exercises joint control with at least one partner company, whereby the
Group has rights to its net assets instead of rights to the assets and
obligations from the liabilities of the arrangement. This applies in
particular to the CONTAINER Division, which is accounted for using the
equity method via the stake in the operational management company
EUROGATE GmbH & Co. KGaA, KG, Bremen.
Associates are companies in which BLG LOGISTICS has material influence
over the financial and operational policies, but does not exercise
control or joint management.
The carrying amounts of the equity investments accounted for using the
equity method are increased or decreased annually to recognize BLG
LOGISTICS’ share of the profit or loss of the investee arising from
changes in the equity of the joint venture or the associate. The
principles applicable to full consolidation are applied mutatis mutandis
to the allocation and adjustment of the carrying amount of the investee
to reflect the excess of the purchase price of the investment over the
pro rata share of the company’s equity.
Non-controlling interests include minority interests in the equity of
fully consolidated subsidiaries.
Non-controlling interests in acquired companies are recognized based on
the proportionate share of the net assets of the acquired company.
Transactions with non-controlling interests are treated as transactions
with equity owners of BLG LOGISTICS. Any difference between the
consideration paid and the relevant share of the carrying amount of the
net assets of the subsidiary arising from the purchase is recognized in
equity. Gains and losses which are realized on the disposal of
non-controlling interests are also recognized in equity.
Other equity investments
Other equity investments are stated at fair value in accordance with
IFRS 9. If there is no active market and the fair value cannot be
determined reliably using measurement methods, cost is an appropriate
approximation of fair value.
Loss of control
If BLG LOGISTICS ceases to have control or material influence over an
entity, the remaining interest is remeasured to fair value and the
resulting difference is recognized in profit or loss. The fair value is
the fair value determined on initial recognition of an associate, joint
venture or financial asset.
In addition, all amounts reported in other comprehensive income in
respect of that entity are accounted for as would be required if the
parent company had sold the corresponding assets and liabilities
directly. This means that a profit or loss previously recognized in
other comprehensive income is reclassified from equity to comprehensive
If the shareholding in an associate has decreased, but the entity
remains an associate, only the pro rata share of net profit or loss
previously recognized in other comprehensive income is reclassified to
profit or loss.
Elimination of transactions as part of consolidation
The effects of intragroup transactions are eliminated:
Receivables and payables between the consolidated companies are netted
against each other, intragroup profits and losses on non-current assets
and inventories are eliminated. Intragroup income is offset against the
corresponding expenses. Taxes are deferred for temporary differences
from consolidation as required by IAS 12.
The consolidation method is unchanged from the previous year.
40. Changes in group of consolidated companies
Business combinations under IFRS 3 exist when an entity acquires control
over one or more business operations through the acquisition of shares
or other events. Business operations within the meaning of IFRS 3 are
integrated sets of activities and assets that are managed with the aim
of generating income or achieving cost reductions or other economic
benefits for the shareholders or other owners, interests, or
stakeholders. The establishment of joint ventures and the combination of
entities under common control do not represent business combinations
within the meaning of IFRS 3.
In a gradual business combination, the previously acquired equity share
of the entity is recalculated at the fair value at the time of
acquisition. The resulting profit or loss is recorded in the income
There were no business combinations in the reporting year.
Other changes in group of consolidated companies
Fully consolidated companies (subsidiaries)
In the AUTOMOBILE Division, BLG Automobile Logistics Italia S.r.l. i.
L., Gioia Tauro, Italy, was deconsolidated in the reporting year
following entry into liquidation. The associated deconsolidation
resulted in income of EUR 17,000, which is reported under other
operating income in the non-operating result.
As part of an internal Group restructuring, BLG WindEnergy Logistics
GmbH & Co. KG, Bremerhaven, was absorbed into BLG AutoTerminal
Bremerhaven GmbH & Co. KG, Bremerhaven, and was thus no longer included
in the group of consolidated companies.
Fully consolidated companies (subsidiaries)
In the CONTRACT Division, BLG Handelslogistik GmbH & Co. KG, Bremen,
increased its shareholding in BLG Sports & Fashion Logistics GmbH,
Hörsel, by 49 percent to 100 percent in the reporting year. This does
not constitute the acquisition of non-controlling interests, as a
forward purchase of the remaining shares was already agreed at the time
of acquisition of the 51 percent equity interest in 2015.
Under a purchase agreement dated November 24, 2020, BLG
Industrielogistik GmbH & Co. KG, Bremen, sold its shares in BLG
Automotive Logistics of South America Ltda., São Paulo, Brazil. The
associated deconsolidation resulted in expenses of EUR 5,000, which are
reported under other operating expenses in the non-operating result.
Companies accounted for using the equity method
As part of the sale of BLG Automotive Logistics of South America Ltda.,
São Paulo, Brazil, the shares in BMS Logistica Ltda., São Paulo, Brazil,
were also divested. No income was generated from the deconsolidation.
Non-consolidated structured companies
BLG Unterstützungskasse GmbH, Bremen (shareholding: 100
BLG KG owns 100 percent of the shares in BLG Unterstützungskasse GmbH,
Bremen. The purpose of the company is to provide ongoing support to
former employees and former Board of Management members of BLG and their
survivors. The necessary funds are provided to the company by the Free
Hanseatic City of Bremen (municipality), as it has accepted the
obligations arising from the pension entitlements. An exposure to risk
as a result of or a claim to variable returns from the investment and
the opportunity to influence the operations of BLG Unterstützungskasse
GmbH, Bremen, are therefore contractually precluded. Accordingly,
control does not exist, despite the ownership of 100 percent of the
voting shares, with the result that the company is not consolidated.
The carrying amount of the shares is EUR 30,000 (previous year: EUR
30,000) and corresponds to the fair value. They are reported in other
financial assets under other financial investments. The maximum exposure
to loss is the carrying amount of the investment.
In accordance with IAS 21, the financial statements of consolidated
companies prepared in foreign currencies are translated into euros in
keeping with the concept of functional currencies. The functional
currency of all foreign companies of the BLG Group is the local
currency, as the companies conduct their business independently in
financial, economic and organizational terms. Accordingly, the assets
and liabilities are translated at the exchange rate on the reporting
date, while expenses and income are in principle translated at the
average annual exchange rate. The resulting currency translation
differences are recognized directly in equity.
As of December 31, 2020, currency translation differences of EUR
10,895,000 (previous year: EUR 6,596,000) were recognized in equity (see
also the Statement of changes in equity). Currency translation is based
on the exchange rates shown in the table:
1 US dollar
1 Brazilian real
1 British pound
1 Chinese yuan renminbi
1 Indian rupee
1 Malaysian ringgit
1 Polish zloty
1 Russian ruble
1 South African rand
1 Ukrainian hryvnia
In the separate financial statements of the consolidated companies
presented in local currency, receivables and payables are translated at
the end of the reporting period in accordance with IAS 21. Currency
translation differences are recognized through profit or loss as other
operating income or expenses. Non-monetary assets that are measured on
the basis of cost are measured at the exchange rate on the day of the
43. Related party disclosures
Identification of related parties
In accordance with IAS 24, relationships with related parties that
control BLG LOGISTICS or are controlled by it or on which BLG LOGISTICS
can exercise significant influence must be disclosed.
Related parties include in particular majority shareholders,
subsidiaries, provided that they are not already included as
consolidated companies in the consolidated financial statements, joint
ventures, associates or intermediary companies.
In addition, the Board of Management and the Supervisory Board of BLG AG
and the first tier of management are also related parties as defined in
IAS 24; this also includes family members of the aforementioned groups.
A list of the composition of the Board of Management and the Supervisory
Board as well as further information about these groups is provided in
note 45. There were no reportable transactions between members of the
Board of Management, the Supervisory Board, the first tier of management
and their family members and BLG LOGISTICS during the 2020 financial
Material transactions with shareholders: Relationships with the
Free Hanseatic City of Bremen (municipality)
As of December 31, 2020, the Free Hanseatic City of Bremen
(municipality) was the majority shareholder of BLG AG with a 50.42
percent (previous year: 50.42 percent) share of the subscribed capital.
The Free Hanseatic City of Bremen (municipality) received a dividend as
a result of the resolution on the appropriation of net retained profits
In accordance with Article 148 of the Constitution of the Free Hanseatic
City of Bremen, the Bremen Senate is both the state government and
statutory body of the municipality of Bremen. Due to the fact that the
statutory bodies of the Free Hanseatic City of Bremen (municipality) and
the Free Hanseatic City of Bremen (state) are identical, this body is
consequently considered a related party or ultimate controlling party
within the meaning of IAS 24. The Free Hanseatic City of Bremen
(municipality) has provided BLG KG with heritable building rights with a
remaining term of up to 28 years for the land used by the company and
its subsidiaries. As of December 31, 2020, lease liabilities for
heritable building rights existed in the amount of EUR 303.0 million
(previous year: EUR 298.2 million) toward the Free Hanseatic City of
Bremen (municipality). The BLG Group paid a total of EUR 3.8 million
(previous year: EUR 14.9 million) for ground rent in 2020. In addition,
ground rent of EUR 11.1 million (previous year: 0.0 million) was
deferred in the reporting year. The ground rent is subject to regular
increases on the basis of the consumer price index every five years. The
increase planned for the reporting period was deferred to support
Bremen’s port and logistics industry in connection with the coronavirus
crisis in 2020. BLG LOGISTICS additionally has the possibility to
participate in the cash pooling facility of the Free Hanseatic City of
Bremen in an amount of up to EUR 50 million, as well as to take out a
non-current loan of EUR 50 million via a state guarantee through Bremer
Aufbau-Bank together with a partner bank.
Transactions with affiliated companies of the Free Hanseatic City of
Bremen (municipality) and (state)
Individual companies of BLG LOGISTICS maintain ongoing business
relationships with affiliated companies of the Free Hanseatic City of
BLG KG took out several loans from BLG Unterstützungskasse GmbH, Bremen.
The loan liabilities amounted to EUR 25,600,000 as of December 31, 2020
(previous year: EUR 25,600,000). In the reporting year, no loan
liabilities were repaid and no new loan liabilities were taken out.
Interest of EUR 505,000 (previous year: EUR 519,000) was paid. In
addition, BLG Unterstützungskasse GmbH has been included in the central
cash management of BLG KG since September 1, 2012. The interest on the
funds provided is based on unchanged conditions. At the end of the
reporting period, receivables from cash management were EUR 7,429,000
(previous year: liabilities of EUR 1,619,000).
Relationships with non-consolidated affiliated companies, joint
ventures and associates
Transactions by the Group companies with joint ventures, associates and
non-consolidated affiliated companies all arose in the ordinary course
of business. Services were provided to these related parties on the
basis of prices and conditions also applicable to third parties. The
receivables include lease receivables of EUR 183,835,000 (previous
year: EUR 181,720,000). The outstanding balances, with the exception of
non-current lease receivables of EUR 174,320,000 (previous year: EUR
178,071,000), are unsecured and due in the short term. The following
table shows the extent of the business relationships of the joint
ventures and associates:
Loss allowances of EUR 36,000 (previous year: EUR 10,000) were
recognized for expected credit losses on receivables from joint ventures
and associates using the simplified approach. In addition, receivables
from joint ventures of EUR 0 (previous year: EUR 17,000) were
derecognized in the reporting year and loans to joint ventures and
associates in the amount of EUR 1,410,000 (previous year: EUR 90,000)
were written down. Receivables from non-consolidated affiliated
companies were, as in the previous year, neither impaired nor