NOTE 15 - INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD

The Group investments accounted for under the Equity method are Constellium-UACJ ABS LLC and Rhenaroll S.A.


(in millions of Euros)	Period ended June 30, 2018			Year ended December 31, 2017
At January 1,		1			16
Group share in loss		(12	)		(29	)
Additions		—			—
Reclassified to non-current other financial assets		12			14
Effects of changes in foreign exchange rates		—			—

At the end of the period		1			1

As of June 30, 2018, the loan to Constellium-UACJ ABS LLC is, in substance, part of Constellium’s investment in the joint-venture as it represents a long-term strategic investment that is not expected to be settled in the foreseeable future. Constellium’s accumulated share of the losses of joint-ventures, in excess of the initial investment, is thus recognized against other financial assets for a cumulative amount of €28 million at June 30, 2018, of which €12 million were recognized during the six-month period ended June 30, 2018.

Constellium-UACJ ABS LLC financial statements

The information presented hereafter reflects the amounts included in the financial statements of the relevant entity in accordance with Group accounting principles and not the Company’s share of those amounts.


(in millions of Euros)	At June 30, 2018			At December 31, 2017
Current assets
Cash and cash equivalents		3			5
Trade receivables and other		47			35
Inventories		61			57
Non-current assets
Property, plant and equipment		164			161
Intangible assets		1			1

Total Assets		276			259

Current liabilities
Trade payables and other		55			34
Borrowings^(A)		24			206
Non-current liabilities
Borrowings		251			47
Equity		(54	)		(28	)

Total Equity and Liabilities		276			259

(A)	In February 2018, the shareholders agreed to modify the terms of their loan to Constellium-UACJ ABS LLC by reducing the interest rate and extending the maturity to March 31, 2023.


(in millions of Euros)	Three months ended June 30, 2018			Three months ended June 30, 2017			Six months ended June 30, 2018			Six months ended June 30, 2017
Revenue		72			33			118			56
Cost of sales		(82	)		(40	)		(141	)		(69	)
Selling and administrative expenses		(2	)		(2	)		(5	)		(5	)

Loss from operations		(12	)		(9	)		(28	)		(18	)

Finance costs^(A)		(5	)		(4	)		4			(7	)

Net loss		(17	)		(13	)		(24	)		(25	)

(A)	Finance costs include a €12 million gain related to the shareholders’ loan modification for the six months ended June 30, 2018.

Constellium subsidiaries’ intercompany balances with Constellium-UACJ ABS LLC

The transactions during the periods and the year-end balances between Group companies that are fully consolidated and Constellium-UACJ ABS LLC are included in the Group’s Unaudited Interim Consolidated Income Statement and Unaudited Interim Consolidated Statement of Financial Position and are detailed below:


(in millions of Euros)	At June 30, 2018		At December 31, 2017
Trades receivables and other—current		25		15
Other financial assets^(A)		76		83

Total Assets		101		98

(A)	Other financial assets correspond to the loan to Constellium-UACJ ABS LLC as of June 30, 2018 and December 31, 2017. As of June 30, 2018, the carrying value of the loan is €104 million. The carrying value is presented net of €28 million of Constellium’s share of losses of joint venture.


(in millions of Euros)	Three months ended June 30, 2018		Three months ended June 30, 2017		Six months ended June 30, 2018			Six months ended June 30, 2017
Revenue		48		10		78			21
Fees and recharges^(A)		1		2		2			2
Finance income		2		2		(3	)		3

Total income		51		14		77			26

(A)	Fees and recharges are presented in Cost of sales or Selling and administrative expenses depending on their nature.