F2. Jointly owned subsidiaries with significant non-controlling interests

Vinda

Vinda is one of China’s largest hygiene companies. Essity has been a shareholder in Vinda since 2007, became its majority shareholder in late 2013 and has consolidated Vinda’s financials since the first quarter of 2014. In 2014, Essity divested its hygiene business in China, Hong Kong and Macau for integration with Vinda. In 2016, Essity’s divestment of its business in Southeast Asia, Taiwan and South Korea for integration with Vinda was approved by the company’s independent shareholders and the transaction was completed on April 1, 2016. Following this transaction, Essity’s holding amounted to 54.6%. In 2017, Vinda acquired a property via a private placement that diluted Essity’s holding to 52%. Vinda’s market capitalization on the Hong Kong stock exchange was SEK 16,868m (19,705; 19,329) at the end of the period.

Familia

Familia is 50% owned by Essity and 49.8% owned by the Gomez family. Essity is considered to have a controlling influence over Familia, despite the fact that Essity does not hold a majority of shares in the company. Essity is deemed to have a controlling influence since it has control over the activities with the most significant impact on Familia’s return. Familia operates in the South American market and sells Personal Care, Consumer Tissue and Professional Hygiene products. During the year, Familia acquired another subsidiary, see Note F6.

Financial information

Financial information is disclosed below for both subsidiaries. Financial information has not been disclosed for other subsidiaries since no other individual subsidiary had a material impact on the Group’s earnings and position.

These balance sheets have been presented taking into consideration the recognition of Vinda and Familia in Essity’s consolidated financial statements, whereby consideration was given to adjustments for surplus values in connection with acquisitions.