Siemens AG – Annual report – 30 September 2022
Industry: manufacturing
NOTE 31 Related party transactions (extract)
Joint ventures and associates
Siemens has relationships with many joint ventures and associates in the ordinary course of business whereby Siemens buys and sells a wide variety of products and services generally on arm’s length terms. The transactions between continuing operations and joint ventures and associates were as follows:
As of September 30, 2022 and 2021, receivables to associates included reimbursement rights against Siemens Energy which were recognized correspondingly with obligations from customer contracts in connection with Siemens Energy activities legally remaining at Siemens. Liabilities to associates as of September 30, 2022 and 2021 were mainly due to trade receivables that also result from these activities and that have economically to be allocated to Siemens Energy.
As of September 30, 2022 and 2021, guarantees to joint ventures and associates amounted to €8,165 million and €14,533 million, respectively, thereof €8,147 million and €14,159 million, respectively, to associates. These guarantees included mainly obligations from performance and credit guarantees in connection with the Siemens Energy business. For these guarantees, Siemens has reimbursement rights towards Siemens Energy.
As of September 30, 2022 and 2021, loans given to joint ventures and associates amounted to €166 million and €1,138 million, therein €149 million and €1,122 million related to joint ventures, respectively. The related book values amounted to €143 million and €28 million, therein €139 million and €25 million related to joint ventures, respectively. Valuation adjustments recognized in fiscal 2022 and 2021 reduced book values of loans related to joint ventures by €2 million and €242 million, respectively. Prior year amounts included Siemens’ stake in the equity investment in Valeo Siemens eAutomotive GmbH that was sold in fiscal 2022.
As of September 30, 2022 and 2021, the Company had commitments to make capital contributions to joint ventures and associates of €106 million and €72 million, therein €95 million and €65 million related to joint ventures, respectively.
As of September 30, 2022 and 2021, there were loan commitments to joint ventures amounting to €4 million and €222 million, respectively.
Accounts examples 