SATO has 21 (19) subsidiaries that are individually material to the Group. Subsidiaries are entities over which SATO has control and they are consolidated to the Group. There are no material non-controlling interests in any of the Group's subsidiaries.
Mutual property companies and housing companies are treated as joint operations that are consolidated by the proportionate consolidation method. The relative proportionate method is applied to all such entities irrespective of the Group’s share of ownership. None of these entities is individually material to the Group.
List of all entities owned by the group or the parent company is presented in note 38.
The non-profit subsidiaries are subject to regulatory restrictions limiting distribution of profit from those entities. More information on the restrictions are presented in note 24. Shareholders equity.
The housing companies in SATO that own so-called shared ownership apartments are treated as structured entities. These companies are considered to be external arrangements of SATO’s operations and are not included in the consolidated financial statement. Their purpose is to act on behalf of the people who have invested in shared ownership apartments.
There is no significant risk associated to the group's interests in unconsolidated structured entities. More information on the shared ownership apartments is presented in accounting principles and note 34. Collateral, commitments and contingencies.
Immaterial associates and joint ventures
SATO did not have joint ventures or associates that are material to the group in 2016 or 2015.