49. Notes on related parties
In financial year 2017/18, METRO maintained the following business relations to related companies:
€ million |
|
2016/17 |
|
2017/18 |
Services provided |
|
86 |
|
8 |
CECONOMY |
|
83 |
|
0 |
Associates |
|
0 |
|
5 |
Joint ventures |
|
0 |
|
3 |
Miscellaneous related parties |
|
3 |
|
0 |
Services received |
|
107 |
|
96 |
CECONOMY |
|
17 |
|
0 |
Associates |
|
78 |
|
78 |
Joint ventures |
|
0 |
|
8 |
Miscellaneous related parties |
|
12 |
|
10 |
Receivables from services provided as of 30/9 |
|
11 |
|
0 |
CECONOMY |
|
11 |
|
0 |
Associates |
|
0 |
|
0 |
Joint ventures |
|
0 |
|
0 |
Miscellaneous related parties |
|
0 |
|
0 |
Liabilities from goods/services received as of 30/9 |
|
3 |
|
1 |
CECONOMY |
|
3 |
|
0 |
Associates |
|
0 |
|
0 |
Joint ventures |
|
0 |
|
0 |
Miscellaneous related parties |
|
0 |
|
1 |
Transactions with CECONOMY companies
METRO was engaged in business relationships with CECONOMY companies until 12 July 2017, the demerger effective date. These applied for the purposes of the consolidated financial statements until the demerger effective date, because METRO AG was until then controlled by the current CECONOMY AG. Accordingly, services received and benefits received from CECONOMY were included in the disclosures for the previous financial year 2016/17.
Transactions with associated companies and other related parties
The services received in the amount of €96 million (2016/17: €90 million) that METRO companies received from associates and miscellaneous related parties in financial year 2017/18 consisted mainly of real estate leases in the amount of €80 million (2016/17: €80 million), thereof €78 million from associates; (2016/17: €78 million) and in the amount of €16 million (2016/17: €10 million) for the rendering of services, thereof €8 million from joint ventures (2016/17: €0 million).
Other future financial obligations in the amount of €719 million (2016/17: €756 million): OPCI FWP France, OPCI FWS France, METRO Habib Pakistan and the Mayfair group.
In financial year 2017/18, METRO companies provided services to companies belonging to the group of associates and related parties in the amount of €8 million (2016/17: €3 million).
A dividend of €57 million has been paid out to a shareholder with significant influence.
Business relations with related parties are based on contractual agreements providing for arm’s-length prices. As in financial year 2016/17, there were no business relations with related natural persons and companies of management in key positions in financial year 2017/18.
Related persons (compensation for management in key positions)
The management in key positions consists of members of the Management Board and the Supervisory Board of METRO AG.
Thus, the expenses for members of the Management Board of METRO AG amounted to €5.2 million for short-term benefits (2016/17: €5.5 million) and €7.0 million for termination and post-employment benefits (2016/17: €0.8 million) of which an amount of €6.1 million relates to termination benefits paid in financial year 2017/18. The expenses for existing compensation programmes with long-term incentive effect in financial year 2017/18, calculated in accordance with IFRS 2, amounted to €0.7 million (2016/17: €5.1 million).
The short-term compensation for the members of the Supervisory Board of METRO AG amounted to €2.2 million (2016/17: €1.5 million).
The total compensation for members of the Management Board in key positions in financial year 2017/18 amounted to €15.1 million (2016/17: €12.9 million).
- For more information about the basic principles of the remuneration system and the amount of Management Board and Supervisory Board compensation, see no. 51 – Management Board and Supervisory Board.