Investments Accounted for Using the Equity Method

Five (2015: four) associates and six (2015: three) joint ventures were accounted for in the consolidated financial statements using the equity method.

Associates and Joint Ventures Accounted for Using the Equity Method

 

 

Place of business

 

Bayer’s interest

Company name

 

 

 

%

1

For information concerning the interest in this company see Note “Scope of Consolidation; Subsidiaries and Affiliates”

Associates

 

 

 

 

Bayer Trendlines AG Innovation Fund, L.P.1

 

Misgav, Israel

 

100

Flagship Ventures V Agricultural Fund, L.P.1

 

Cambridge, U.S.A.

 

99.9

Nanjing Baijingyu Pharmaceutical Co., Ltd.

 

Nanjing, China

 

15

Paltough Industries (1998) Ltd.

 

Kibbutz Ramat Yochanan, Israel

 

25

PO JV, LP

 

Wilmington, U.S.A.

 

39.4

Joint ventures

 

 

 

 

Bayer Zydus Pharma Private Limited

 

Mumbai, India

 

50

BlueRock Therapeutics GP LLC

 

San Francisco, U.S.A.

 

50

BlueRock Therapeutics LP

 

San Francisco, U.S.A.

 

50

Casebia Therapeutics LLC

 

Cambridge, U.S.A.

 

50

DCSO Deutsche Cyber-Sicherheitsorganisation GmbH

 

Berlin, Germany

 

25

DIC Covestro Polymer Ltd.

 

Tokyo, Japan

 

50

In 2000, Bayer acquired the polyols business and parts of the propylene oxide (PO) production operations of Lyondell Chemicals with the objective of ensuring access to patented technologies and safeguarding the long-term supply of PO, a starting product for polyurethane. As part of this strategy, a company was established to produce PO (PO JV, LP, United States, in which Covestro holds a 39.4% interest). Covestro benefits from fixed long-term supply quotas / volumes of PO from this company’s production. The two following tables contain summarized data from the income statements and statements of financial position of the associated company PO JV, LP, United States, which is accounted for using the equity method, and show the respective amounts recognized in the consolidated financial statements of the Bayer Group.

Income Statement Data PO JV, LP, Wilmington, U.S.A.

 

 

2015

 

2016

 

 

€ million

 

€ million

Net sales

 

1,695

 

1,659

Net loss after taxes

 

(56)

 

(53)

Share of net loss after taxes

 

(23)

 

(24)

Share of total comprehensive income after taxes

 

(23)

 

(24)

Data from the Statements of Financial Position of PO JV, LP, Wilmington, U.S.A.

 

 

Dec. 31, 2015

 

Dec. 31, 2016

 

 

€ million

 

€ million

Noncurrent assets

 

475

 

469

Equity

 

475

 

469

Share of equity

 

201

 

202

Other

 

(3)

 

(4)

Carrying amount

 

198

 

198

The item “Other” mainly comprises differences arising from adjustments of data to Bayer’s uniform accounting policies, along with purchase price allocations and their amortization in profit or loss.

In December 2015, Bayer and CRISPR Therapeutics AG, Switzerland, agreed to establish a company to develop and commercialize new, breakthrough therapeutics for blood disorders, blindness and congenital heart diseases. The joint venture Casebia Therapeutics, established at the beginning of 2016, has access to gene-editing technology from CRISPR Therapeutics in specific disease areas, as well as access to protein engineering expertise and relevant disease know-how through Bayer. The two following tables contain summarized data from the income statements and statements of financial position of the joint venture Casebia Therapeutics LLC, United States, which is accounted for using the equity method, and show the respective amounts recognized in the consolidated financial statements of the Bayer Group.

Income Statement Data of Casebia Therapeutics LLC, Cambridge, U.S.A.

 

 

2015

 

2016

 

 

€ million

 

€ million

Net sales

 

 

Net loss after taxes

 

 

(8)

Share of net loss after taxes

 

 

(4)

Share of total comprehensive income after taxes

 

 

(4)

Data from the Statements of Financial Position of Casebia Therapeutics LLC, Cambridge, U.S.A.

 

 

Dec. 31, 2015

 

Dec. 31, 2016

 

 

€ million

 

€ million

Noncurrent assets

 

 

68

Current assets

 

 

4

Noncurrent liabilities

 

 

Current liabilities

 

 

3

Equity

 

 

69

Share of equity

 

 

38

Other

 

 

242

Carrying amount

 

 

280

The item “Other” comprises Bayer’s outstanding capital contribution obligation.

The following table contains a summary of the aggregated income statement data and aggregated carrying amounts of the individually nonmaterial associates accounted for using the equity method.

Income Statement Data and Carrying Amount of Associates Accounted for Using the Equity Method

 

 

2015

 

2016

 

 

€ million

 

€ million

Income after taxes

 

12

 

11

Share of income after taxes

 

1

 

3

Share of total comprehensive income after taxes

 

1

 

3

Carrying amount

 

37

 

49

The following table contains a summary of the aggregated income statement data and aggregated carrying amounts of the individually nonmaterial joint ventures that are accounted for using the equity method.

Income Statement Data and Carrying Amount of Joint Ventures Accounted for Using the Equity Method

 

 

2015

 

2016

 

 

€ million

 

€ million

Income after taxes

 

6

 

Share of income after taxes

 

3

 

(1)

Share of total comprehensive income after taxes

 

3

 

(1)

Carrying amount

 

11

 

57