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 accounted for using 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 accounted for using 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 accounted for using the equity method in Fiscal 2021 and Fiscal 2022 are shown below:
| (in million euros) | FISCAL 2022 | FISCAL 2021 |
|---|---|---|
| Carrying amount as of September 1 | Carrying amount as of September 1 FISCAL 2022 57 |
Carrying amount as of September 1 FISCAL 2021 53 |
| Of which Investments in companies accounted for using the equity method | Of which Investments in companies accounted for using the equity method FISCAL 2022 63 |
Of which Investments in companies accounted for using the equity method FISCAL 2021 60 |
| Of which Provisions | Of which Provisions FISCAL 2022 (6) |
Of which Provisions FISCAL 2021 (7) |
| Share of profit for the period | Share of profit for the period FISCAL 2022 8 |
Share of profit for the period FISCAL 2021 9 |
| Other comprehensive income (loss) | Other comprehensive income (loss) FISCAL 2022 — |
Other comprehensive income (loss) FISCAL 2021 3 |
| Dividend paid for the period | Dividend paid for the period FISCAL 2022 (6) |
Dividend paid for the period FISCAL 2021 (9) |
| Currency translation adjustment | Currency translation adjustment FISCAL 2022 6 |
Currency translation adjustment FISCAL 2021 — |
| Other movements | Other movements FISCAL 2022 — |
Other movements FISCAL 2021 2 |
| CARRYING AMOUNT AS OF AUGUST 31 | CARRYING AMOUNT AS OF AUGUST 31 FISCAL 2022 65 |
CARRYING AMOUNT AS OF AUGUST 31 FISCAL 2021 57 |
| Of which Investments in companies accounted for using the equity method | Of which Investments in companies accounted for using the equity method FISCAL 2022 73 |
Of which Investments in companies accounted for using the equity method FISCAL 2021 63 |
| Of which Provisions | Of which Provisions FISCAL 2022 (8) |
Of which Provisions FISCAL 2021 (6) |
