Associates are companies in which Sodexo S.A. directly or indirectly exercises significant influence over financial and operating policy without exercising exclusive or joint control. Joint ventures are joint arrangements in which Sodexo S.A. directly or indirectly exercises joint control and has rights to the net assets of the arrangement. Associates and joint ventures are consolidated by the equity method. Sodexo has a number of equity interests in project companies established in connection with Public-Private Partnership (PPP) contracts. These contracts enable governments to call upon the private sector for the design, construction, financing and management of public infrastructure (hospitals, schools, barracks, prisons), with detailed performance criteria. An analysis is performed for each of these equity interests, in order to determine whether they qualify as associates or joint ventures.
When Sodexo is legally or constructively obligated to make payments on behalf of companies consolidated by the equity method, a provision is made under liabilities in the consolidated statement of financial position for its share in the negative shareholders’ equity of the said companies (see note 10.1).
Changes in the Group’s share of the net assets of companies consolidated by the equity method in Fiscal 2019 and Fiscal 2020 are shown below:
| (in millions of euro) | FISCAL 2020 | FISCAL 2019 |
|---|---|---|
| Carrying amount as of September 1 | Carrying amount as of September 1FISCAL 202051 | Carrying amount as of September 1FISCAL 201977 |
| Of which Companies consolidated by the equity method | Of which Companies consolidated by the equity methodFISCAL 202062 | Of which Companies consolidated by the equity methodFISCAL 201983 |
| Of which Provisions | Of which ProvisionsFISCAL 2020(9) | Of which ProvisionsFISCAL 2019(6) |
| Share of profit for the period | Share of profit for the period FISCAL 20209 | Share of profit for the period FISCAL 20196 |
| Other comprehensive income (loss) | Other comprehensive income (loss) FISCAL 20202 | Other comprehensive income (loss) FISCAL 2019(7) |
| Dividend paid for the period | Dividend paid for the period FISCAL 2020(3) | Dividend paid for the period FISCAL 2019(10) |
| Changes in scope of consolidation | Changes in scope of consolidation FISCAL 20200 | Changes in scope of consolidation FISCAL 2019- |
| Currency translation adjustment | Currency translation adjustment FISCAL 2020(3) | Currency translation adjustment FISCAL 20192 |
| Other movements | Other movements FISCAL 2020(3) | Other movements FISCAL 2019(17) |
| CARRYING AMOUNT AS OF AUGUST 31 | CARRYING AMOUNT AS OF AUGUST 31FISCAL 202053 | CARRYING AMOUNT AS OF AUGUST 31FISCAL 201951 |
| Of which Companies consolidated by the equity method | Of which Companies consolidated by the equity methodFISCAL 202060 | Of which Companies consolidated by the equity methodFISCAL 201962 |
| Of which Provisions | Of which ProvisionsFISCAL 2020(7) | Of which ProvisionsFISCAL 2019(9) |
