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

Investments in associates and joint ventures are generally measured according to the equity method of accounting. Based on the cost at the time the shares are acquired, the carrying amount of the investment is increased or decreased by profit or loss, changes in other comprehensive income and other changes in equity of the companies to the extent these are attributable to the shares held by BLG LOGISTICS. In the event that proportionate losses 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. Following 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 63,167 thousand; previous year: EUR 20,024 thousand), capital contributions made (EUR 7,946 thousand; previous year: EUR 0 thousand), changes in other reserves due to the remeasurement of pensions (EUR 1,021 thousand; previous year: EUR -4,576 thousand), the fair value measurement of financial instruments (EUR 2,361 thousand; previous year: EUR -571 thousand), currency translation differences (EUR 1,603 thousand; previous year: EUR 196 thousand) and other changes (EUR 9 thousand; previous year: EUR -833 thousand) in addition to reductions due to distributions (EUR -138,894 thousand; previous year: EUR -41,071 thousand). In the reporting year, there were no changes to the group of consolidated companies (previous year: EUR -291 thousand).

Information on 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 stake in the joint venture and its equity investments is 50 percent (previous year: 50 percent) and represents the CONTAINER Division. With this stake, 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 “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 outlined in note 2.

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

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

The EUROGATE Group provides technical services for BLG LOGISTICS and assumes responsibility for the handling of power purchases 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.

This joint venture is covered under the CONTAINER Division in Segment Reporting and note 3.

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 include cash and cash equivalents of EUR 232,098 thousand (previous year: EUR 308,456 thousand).

EUR 455,088 thousand of the non-current liabilities (previous year: EUR 512,230 thousand) and EUR 423,660 thousand of the current liabilities (previous year: EUR 244,609 thousand) are attributable to financial liabilities (in each case excluding trade payables, other liabilities and provisions). EUR 297,125 thousand (previous year: EUR 307,521 thousand) of the financial liabilities were attributable to non-current liabilities and EUR 22,910 thousand (previous year: EUR 17,995 thousand) to current lease liabilities.

EUR 61,190 thousand of the net profit for the year (previous year: EUR 18,202 thousand) and EUR 4,985 thousand of other comprehensive income net of income taxes (previous year: EUR -4,937 thousand) is attributable to BLG LOGISTICS.

BLG LOGISTICS received a dividend in the amount of EUR 137,196 thousand from EUROGATE GmbH & Co. KGaA, KG in the reporting year (previous year: EUR 39,728 thousand). Payment will take place in the following year. This dividend is offset by an expected reinvestment of EUR 41,159 thousand (previous year: EUR 7,946 thousand).

The individual other investments in joint ventures held by BLG LOGISTICS are considered immaterial in their own right. 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 2024 financial year, negative shares of EUR 477 thousand (previous year: EUR 87 thousand) and positive shares of EUR 673 thousand (previous year: EUR 289 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 came to EUR -3,757 thousand (previous year: EUR -3,687 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 year (EUR 1,226 thousand; previous year: EUR 1,353 thousand), changes in other reserves due to the remeasurement of pensions (EUR 0 thousand; previous year: EUR -16 thousand), as well as reductions due to distributions (EUR -770 thousand; previous year: EUR -739 thousand) and currency translation differences (EUR 14 thousand; previous year: EUR -34 thousand). Changes in the group of consolidated companies were also recognized in the reporting year (EUR 39 thousand, previous year EUR -109 thousand), as well as other changes (EUR -747 thousand; previous year: EUR 0 thousand). Other changes relate entirely to the impairment loss on an equity-method carrying amount of an associate.

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 2024 financial year, negative shares of EUR 0 thousand (previous year: EUR 158 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 0 thousand (previous year: EUR 377 thousand).