15. Equity Investments in Companies Accounted for Using the Equity Method

Investments in associates and joint ventures are generally measured using the equity method of accounting. Starting with the cost at the time of the acquisition of the shares, the carrying amount of the investment is increased or decreased by the profit or loss, the changes in other comprehensive income and the other changes in equity of the companies to the extent these are attributable to the shares held by BLG LOGISTICS. In the case of proportionate losses that exceed the carrying amount of an investment accounted for using the equity method, they are also offset through profit or loss against non-current loans or receivables attributable to the net investment in the investee. After the application of the equity method, testing must also be carried out to determine whether there are any indications of impairment of the net investment in the investee.

Joint ventures

The change in the carrying amount of the investments in joint ventures was primarily the result of increases due to proportionate net income for the financial year (EUR 20,024 thousand; previous year: EUR 76,515 thousand), changes in other reserves due to the remeasurement of pensions (EUR -4,576 thousand; previous year: EUR 26,267 thousand), the fair value measurement of financial instruments (EUR -571 thousand; previous year: EUR 722 thousand), currency translation differences (EUR 196 thousand; previous year: EUR -1,234 thousand) and other changes (EUR -833 thousand; previous year: EUR -1,945 thousand), as well as reductions due to distributions (EUR -41,071 thousand; previous year: EUR -28,283 thousand). In the reporting year, changes in the group of consolidated companies were also included with EUR -291 thousand (previous year EUR 25 thousand).

Information about significant joint ventures is presented below.

EUROGATE GmbH & Co. KGaA, KG, Bremen, is a joint venture of BLG KG and EUROKAI GmbH & Co. KGaA, Hamburg, which is structured as an independent entity. BLG KG’s interest in the joint venture and its equity investments is 50 percent (previous year: 50 percent) and represents the CONTAINER Division. With this investment, the Group receives rights to the joint venture’s net assets rather than rights to its assets and obligations arising from its liabilities.

The IFRS subgroup consolidated financial statements of the EUROGATE Group are consolidated using the equity method. EUROGATE GmbH & Co. KGaA, KG and its subsidiaries are accordingly included in the list of shareholdings under the item “Companies accounted for using the equity method.” No market price is available for EUROGATE GmbH & Co. KGaA, KG.

The services of the CONTAINER Division are described in note 2.

For the land necessary for its business, BLG KG has transferred to the EUROGATE Group under usage transfer agreements the rights and obligations arising from the heritable building rights of the Free Hanseatic City of Bremen (municipality).

In the usage transfer agreements, BLG KG undertakes to pay compensation to the EUROGATE Group for buildings erected on the land used at the expiration of the usage transfer agreement or upon extraordinary termination. The compensation is based on the market value of the buildings. In addition, BLG KG irrevocably surrenders its claims for compensation to the EUROGATE Group upon exercise of the right to reversion under the heritable building right contract by the Free Hanseatic City of Bremen (municipality).

The EUROGATE Group provides technical services for BLG LOGISTICS and assumes settlement of electricity drawing in the city state of Bremen’s overseas port in Bremerhaven from the port investment funds. This is based on the takeover of the electricity supply network for the respective area from January 1, 2008.

In Segment Reporting and note 3, this joint venture is represented by the CONTAINER Division.

The following table summarizes the financial information of the IFRS subgroup consolidated financial statements of EUROGATE GmbH & Co. KGaA, KG and reconciles this information with the carrying amounts of the investments in joint ventures.

Current assets included cash and cash equivalents of EUR 308,456 thousand (previous year: EUR 392,356 thousand).

EUR 512,230 thousand of the non-current liabilities (previous year: EUR 585,704 thousand) and EUR 244,609 thousand of the current liabilities (previous year: EUR 203,218 thousand) were attributable to financial liabilities (in each case excluding trade payables, other liabilities and provisions). The financial liabilities resulted with EUR 307,521 thousand (previous year: EUR 334,325 thousand) from non-current and with EUR 17,995 thousand (previous year: EUR 21,871 thousand) from current lease liabilities.

EUR 18,202 thousand of the net profit for the year (previous year: EUR 76,705 thousand) and EUR -4,937 thousand of other comprehensive income net of income taxes (previous year: EUR 25,866 thousand) was attributable to BLG LOGISTICS.

BLG LOGISTICS received a dividend from EUROGATE GmbH & Co. KGaA, KG in the amount of EUR 39,728 thousand in the reporting year (previous year: EUR 27,320 thousand).

The individual other investments in joint ventures held by BLG LOGISTICS are considered immaterial. The following table summarizes the carrying amounts, the share of the net profit (loss) for the year and the share of other comprehensive income of these equity investments:

The proportionate net income for the year results in full from continuing operations.

In the 2023 financial year, negative shares of EUR 87 thousand (previous year: EUR 105 thousand) and positive shares of EUR 289 thousand (previous year: EUR 346 thousand) in the total comprehensive income of joint ventures were not included in the combined comprehensive income as the equity-method carrying amount had already been adjusted to zero as a result of losses in prior periods. At the reporting date, the cumulative negative share in the total comprehensive income of joint ventures not recognized in the combined comprehensive income totaled EUR -3,687 thousand (previous year: EUR 3,636 thousand).

Associates

The change in the carrying amount of the investments in associates was primarily the result of increases due to proportionate net income for the financial year (EUR 1,353 thousand; previous year: EUR 1,191 thousand), changes in other reserves due to the remeasurement of pensions (EUR -16 thousand; previous year: EUR 80 thousand), as well as reductions due to distributions (EUR -739 thousand; previous year: EUR -738 thousand) and currency translation differences (EUR -34 thousand; previous year: EUR 2 thousand). Changes in the group of consolidated companies were also recognized in the reporting year (EUR -109 thousand, previous year EUR 0 thousand). As in the previous year, no other changes arose in the reporting period.

The individual investments in associates held by BLG LOGISTICS are considered immaterial.

The following table summarizes the carrying amounts, the share in the net profit (loss) for the year attributable to BLG LOGISTICS and the share of other comprehensive income of these equity investments:

The proportionate net income for the year results in full from continuing operations.

In the 2023 financial year, negative shares of EUR 158 thousand (previous year: EUR 1 thousand) in the total comprehensive income of associates were not included in the combined comprehensive income. At the reporting date, the cumulative negative share of the total comprehensive income of joint ventures not recognized in the combined comprehensive income totaled EUR 377 thousand (previous year: EUR 221 thousand).