51. Notes on related parties
In financial year 2019/20, METRO maintained the following business relations to related companies:
€ million |
2018/19 |
2019/20 |
|---|---|---|
Services provided |
8 |
54 |
Associates |
5 |
51 |
Joint ventures |
3 |
3 |
Miscellaneous related parties |
0 |
0 |
Services received |
71 |
70 |
Associates |
60 |
61 |
Joint ventures |
7 |
6 |
Miscellaneous related parties |
4 |
3 |
Receivables from services provided, as of 30/9 |
0 |
23 |
Associates |
0 |
23 |
Joint ventures |
0 |
0 |
Miscellaneous related parties |
0 |
0 |
Liabilities from goods/services received as of 30/9 |
0 |
0 |
Associates |
0 |
0 |
Joint ventures |
0 |
0 |
Miscellaneous related parties |
0 |
0 |
Transactions with associated companies and other related parties
On 23 April 2020, the sale of METRO AG’s entire indirect majority shareholding in METRO China to a subsidiary of Wumei Technology Group was completed. METRO has a stake of around 20% in WM Holding (HK) Limited and thus in the activities of METRO China. Accordingly, METRO transactions with Wumei Technology Group and its subsidiaries must be reported as related company transactions.
The significant increase in services provided results from the business relations with METRO Group Commerce (Shanghai) Co., Ltd. (formerly METRO China) based on a service level agreement for 2 years and the granting of brand licences.
In connection with the prepaid brand use, contractual liabilities amounting to €153 million on 30 September 2020 were deferred at METRO.
The services received totalling €70 million (2018/19: €71 million) that METRO companies received from associates and other related parties in financial year 2019/20 consisted mainly of real estate leases in the amount of €63 million (2018/19: €63 million), thereof €61 million from associates (2018/19: €60 million) and the rendering of services in the amount of €7 million (2018/19: €8 million), thereof €6 million from joint ventures (2018/19: €7 million).
The balance sheet includes lease liabilities of €360 million (2018/19: €380 million) and corresponding rights of use of €291 million (2018/19: €313 million) from rental agreements with the following associates: OPCI FWP France, OPCI FWS France, Habib METRO Pakistan and Iniziative Methab s.r.l.
In financial year 2019/20, METRO companies provided services to companies belonging to the group of associates and related parties in the amount of €54 million (2018/19: €8 million).
A dividend of €76 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 2018/19, there were no business relations with related natural persons and companies of management in key positions in financial year 2019/20.
Related persons (remuneration 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 €6.4 million (2018/19: €6.9 million) for short-term benefits and €0.7 million (2018/19: €3.7 million) for post-employment benefits. The expenses for existing compensation programmes with long-term incentive effect in financial year 2019/20, calculated in accordance with IFRS 2, amounted to €−0.8 million (2018/19: €2.6 million).
The short-term compensation for the members of the Supervisory Board of METRO AG amounted to €2.2 million (2018/19: €2.2 million).
The total compensation for members of the Management Board in key positions in financial year 2019/20 amounted to €8.5 million (2018/19: €15.4 million).
- For more Information about the basic principles of the remuneration system and the amount of Management Board and Supervisory Board compensation, see no. 53 – Management Board and Supervisory Board.