Hexagon Annual Report 2019

NOTE 25 INVESTMENTS IN JOINT VENTURES The Group has classified the investment in Hyon AS as joint venture. The entity is organized as limited liability company with its own management in charge of day-to-day business. However, the composition of the board and guidelines for operation of the company is based on an operational agreement and shareholder agreement. Under these agreements, it is required unanimity between the parties for making decisions about relevant activities. Accordingly, the venture has joint control over the company's operations. Thus, the group as a participant is entitled to the arrangement’s net assets. The Group's responsibility as a participant in the company is limited to the capital contribution, and the return equals the Group's share of profit/loss. The investment in joint ventures are accounted for according to the equity method. In 2018 Agility Fuel Solutions LLC was accounted for as a joint venture, 100% acquired and consolidated from 4 January 2019. JOINT VENTURE COUNTRY BUSINESS SEGMENT OWNERSHIP SHARE VOTES Hyon AS Norway Hexagon Purus 33.3 % 33.3 % HEXAGON COMPOSITES ASA HAS THE FOLLOWING INVESTMENTS IN JOINT OPERATIONS (NOK 1 000) 2019 2018 Sales revenue 5 288 Other operating income 0 Cost of materials 20 063 Other operating expenses 0 THE INCOME STATEMENT INCLUDES THE FOLLOWING AMOUNTS RESULTING FROM TRANSACTIONS WITH JOINT VENTURES (NOK 1 000) 2019 2018 Trade receivables 1 398 Trade payables 10 039 THE BALANCE SHEET INCLUDES THE FOLLOWING AMOUNTS RESULTING FROM TRANSACTIONS WITH JOINT VENTURES (NOK 1 000) 2019 2018 BOOK VALUE AS AT 01.01. 917 604 Share of profit 31 800 Amortization of excess value -13 421 Elimination of downstream transaction 890 Reported as profit/loss from joint venture 19 270 Share of OCI 55 044 Received dividends -12 826 Share-based payment 13 285 Book value as at 31.12. 992 378 HEXAGON COMPOSITES GROUP'S SHARE OF PROFIT/LOSS IN AGILITY FUEL SOLUTIONS LLC Agility Fuel Solutions LLC does not have an observable market value in form of market price or similar. 56 142 2019 AT A GLANCE FROM THE BOARD ROOM FINANCIAL STATEMENTS