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Note 19 Non-controlling interests

Accounting principles

Non-controlling interests are presented within the equity of the Group in the Consolidated statement of financial position. The proportionate shares of profit or loss attributable to non-controlling interests and to equity holders of the parent company are presented in the Consolidated income statement after the profit for the period. Transactions between non-controlling interests and Group shareholders are transactions within equity and are thus shown in the Statement of changes in equity. The measurement type of non-controlling interests is decided separately for each acquisition.


 

Non-controlling interests
Year Ended 31 December
EUR million 2017 2016
At 1 January 62 125
Disposals - -4
Share of profit for the period -11 -56
Share of other comprehensive income -3 -3
Dividends -1 -
At 31 December 47 62
Principal non-controlling interests
As at 31 December
2017 2017 2016
Company Principal Place of Business Proportion of Ownership Interests Held by Non-controlling Interests, % EUR million
Stora Enso Pulp and Paper Asia AB Group1 Sweden and China See separate table below 37 54
Stora Enso Inpac Packaging Group China 10.00 10 7
Stora Enso Huatai Paper Co Ltd China 40.00 -5 -7
Others - 5 8
47 62
1 Consist of non-controlling interests in Guangxi Integrated Project and Operations
Non-controlling interests in Stora Enso Pulp and Paper Asia AB Group
As at 31 December 2017 As at 31 December 2016
Company Principal Place of Business Direct-% of NCI Indirect-% of NCI Total-% of NCI Direct-% of NCI Indirect-% of NCI Total-% of NCI
Stora Enso Pulp and Paper Asia AB Sweden and China 5.79 - 5.79 5.79 - 5.79
Guangxi Stora Enso Forestry Co Ltd China 5.00 5.50 10.50 5.00 5.50 10.50
Stora Enso (Guangxi) Packaging Company Ltd China 15.00 4.92 19.92 15.00 4.92 19.92
Stora Enso (Guangxi) Forestry Company Ltd China 15.00 4.92 19.92 15.00 4.92 19.92

In 2017 non-controlling interest in Stora Enso decreased by EUR 15 million primarily due to negative result in Stora Enso Pulp and Paper Asia AB Group. Net loss in Stora Enso Pulp and Paper Asia AB Group was EUR 75 (EUR 347) million. Net result improved by EUR 272 million compared to last year mainly due to the start-up of the Beihai consumer board mill in China.

On 31 March 2016, Stora Enso completed the divestment of its 80% shareholding in the Arapoti magazine paper mill in Paraná, Brazil, to Papeles Bio Bio, a Chilean paper producer. The final consideration for the shares was EUR 15 million. The transaction reduced the share of non-controlling interests in the Group by EUR 4 million.

Summarised financial information in respect of the subsidiaries that have material non-controlling interests is set out below.

Stora Enso Pulp and Paper Asia AB Group
EUR million 2017 2016
Non-current assets 939 1 007
Current assets 216 180
Shareholders' equity attributable to the owners of the parent 131 202
Non-controlling interests1 37 54
Total Equity 168 256
Non-current liabilities 475 553
Current liabilities 512 378
Sales 289 114
Net loss for the year -75 -347
Attributable to:
Owners of the parent -61 -291
Non-controlling interests -14 -56
Net Loss for the Year -75 -347
Other comprehensive income -13 -21
Total Comprehensive Income Attributable to:
Owners of the parent -71 -308
Non-controlling interests -17 -60
Total Comprehensive Income -88 -368
Net cash outflow from operating activities -61 -110
Net cash outflow from investing activities -81 -324
Net cash inflow from financing activities 140 279
Net Cash Outflow/Inflow -2 -155
1 No dividends were paid to non-controlling interests in 2017 or 2016.

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