2. Consolidation and acquisitions

2.1. Principles of consolidation

Subsidiaries

In addition to Nordzucker AG as the parent company, the Nordzucker consolidated financial statements also include the domestic and foreign subsidiaries in which Nordzucker AG has direct or indirect control of financial and operating policy.

Subsidiaries are fully consolidated from the acquisition date, i.e. the date on which the Group obtains control. Consolidation ends once the parent company no longer exercises control. The financial statements of the subsidiaries are prepared for the same reporting period as the financial statements for the parent company using uniform accounting methods. Intra-group transactions between companies in the Group are eliminated in full.

Associated companies and joint ventures

Associated companies and joint ventures are accounted for in the consolidated financial statements using the equity method. Associated companies are defined as companies in which the Nordzucker Group has a significant influence over financial and operating policy. Joint ventures are companies which are jointly controlled in cooperation with other companies. In applying the equity method, the IFRS financial statements of these companies are used. Losses from associated companies which exceed the carrying amount or other non-current receivables from financing these companies are not recognised unless there is an obligation to provide further capital.

2.2. Acquisitions

No acquisitions were made in the reporting period or comparative period.

For the accounting principles relating to acquisitions, please see Note 3.16.

2.3. Group of consolidated companies

The consolidated companies in the Nordzucker Group are as follows:

Group of consolidated companies
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28/2/2014

28/2/2013

Fully consolidated subsidiaries

 

 

Domestic

3

4

Foreign

14

19

Companies accounted for using the equity method

 

 

Domestic

2

2

Foreign

2

2

In the reporting period, the Group of consolidated companies was reduced by six subsidiaries. In Germany, fuel 21 GmbH & Co. KG was merged with Nordzucker AG. Outside of Germany, Nordzucker Eastern Europe GmbH (Vienna, Austria) and SugarPartners Holdings Limited (Dublin, Ireland) were liquidated and therefore deconsolidated. In addition, Nordic Sugar UAB (Vilnius, Lithuania), SIA Nordic Sugar (Riga, Latvia) and Ingolf Wesenberg & Co. AS (Oslo, Norway) were also deconsolidated due to lack of significance. The carrying amounts for these three companies are listed in the item ‘Other financial investments’.

The list of shareholdings can be found in the Nordzucker AG annual report and is published in the German Federal Gazette.

All the companies included in the consolidated financial statements have 28 February 2014 as their reporting date.

2.4. Significant subsidiaries and joint ventures

The significant subsidiaries of the Nordzucker Group are listed in the table below:

Significant subsidiaries
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Group stake

Central Europe region

 

NORDZUCKER GmbH & Co. KG, Braunschweig, Germany

100 %

Norddeutsche Flüssigzucker GmbH & Co. KG, Braunschweig, Germany

70 %

 

 

Northern Europe region

 

Nordic Sugar A/S, Copenhagen, Denmark

100 %

Nordic Sugar AB, Malmö, Sweden

100 %

Suomen Sokeri Oy, Kantvik, Finland

80 %

Sucros Oy, Säkylä, Finland

80 %

AB Nordic Sugar Kèdainiai, Kèdainiai, Lithuania

70.6 %

Nordzucker Ireland Limited, Dublin, Ireland

100 %

 

 

Eastern Europe region

 

Považský cukor a.s., Trenčianska Teplá , Slovakia

96.798 %

Nordzucker Polska S.A., Opalenica, Poland

99.87 %

The following trading companies structured as limited partnerships (GmbH & Co. KG)

  • NORDZUCKER GmbH & Co. KG, Braunschweig, Germany
  • Norddeutsche Flüssigzucker GmbH & Co. KG, Braunschweig, Germany

are exempt from the obligation to prepare annual financial statements in accordance with the regulations applicable to companies with limited liability pursuant to Sec. 264b German Commercial Code (HGB).

Significant joint ventures of the Nordzucker Group that are accounted for under the equity method are listed below:

Significant joint ventures
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Group stake

Central Europe region

 

MEF Melasse-Extraktion Frellstedt GmbH, Frellstedt

50 %

 

 

Northern Europe region

 

NP Sweet A/S, Copenhagen, Denmark

50 %

2.5. Conversion of financial statements in foreign currencies

Assets and liabilities of subsidiaries whose functional currency is not the Euro are converted at the exchange rate applicable on the balance sheet date. The functional currency is the currency of the primary economic environment in which the subsidiary operates. Items in the income statement are converted at the weighted average rate for the relevant reporting period. Equity components of subsidiaries are converted at the historical rate for the date first recognised. The currency differences resulting from conversions are included in other comprehensive income (i.e. in the statement of comprehensive income and not in the income statement).

The rates for the conversion of key financial statements in foreign currencies into Euros have changed as follows:

Exchange Rates of Foreign Currencies
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for EUR 1.00

Average rate

Spot rate

 

2013/2014

2012/2013

28/2/2014

28/2/2013

Polish Zloty (PLN)

4.20104

4.16353

4.16760

4.15150

Hungarian Forint (HUF)

298.97255

288.25639

310.45000

295.80000

Danish Crown (DKK)

7.45811

7.44799

7.46250

7.45600

Swedish Crown (SEK)

8.69838

8.65947

8.85250

8.44750

Lithuanian Litas (LTL)

3.45280

3.45280

3.45280

3.45280