Note 8 – Investments in Associates and Joint Ventures Audited

 

The following table summarizes the carrying amounts of interests in joint ventures and associates, which are accounted for using the equity method.

million CHF 2017 2016
     

Balance sheet value

   
Interests in joint ventures 4 5
Interests in associates 16 13
Total 20 18
     

Net income statement effect

   
Share of profit / (loss) of joint ventures 0 1
Share of profit / (loss) of associates 0 (2)
Total 0 (1)


In February 2017 Lonza announced that it had entered into a strategic partnership with Sanofi to build and operate a large-scale mammalian cell culture facility for monoclonal antibody production in Visp (CH). The strategic partnership combines the strong biologics development pipeline of Sanofi with the expertise of Lonza to design, construct, start up and operate a state-of-the-art large-scale mammalian cell culture facility. The total investment of both partners is estimated to be CHF 290 million (EUR 270 million). The facility is expected to be operational by 2020.

Lonza accounts for its share in BioAtrium AG (the entity which has been founded for this strategic partnership) as investment in associates in accordance with IAS 28. There has been no significant financial impact on Lonza's 2017 consolidated financial statements.

8.1 Joint Ventures   
              

The Group has interests in three individually immaterial joint ventures. The following table analyzes, in aggregate, the carrying amount and share of profit and other comprehensive income of these joint ventures:

million CHF 2017 2016
     
Carrying amount of interests in joint ventures 4 5
Share of profit / (loss) 0 1
Share of other comprehensive income 0 0

 

In 2017 the Group received dividends of CHF 1 million (2016: none) from joint ventures.

8.2 Associates

 

The Group has interests in five financially immaterial associates (including Lonza's share in BioAtrium AG). The following table analyzes, in aggregate, the carrying amount and share of profit and other comprehensive income of these associates:

million CHF 2017 2016
     
Carrying amount of interests in associates 16 13
Share of profit / (loss) 0 (2)
Share of other comprehensive income 0 0

 

In 2017 the Group received dividends of CHF 3 million (2016: none) from associates.