Related parties

In the course of its operations, the LANXESS Group sources materials, inventories and services from a large number of business partners around the world. These include companies in which LANXESS AG has a direct or indirect interest. Transactions with these companies are carried out on an arm’s-length basis.

Transactions in the second quarter and first half of 2014 with associated companies accounted for in the consolidated financial statements using the equity method, or subsidiaries of such companies, mainly comprised the purchase of site services in the fields of utilities, infrastructure and logistics totaling €104 million (Q2 2013: €116 million) and €218 million (H1 2013: €232 million), respectively. Receivables of €2 million and payables of €143 million existed as of June 30, 2014 as a result of these transactions (December 31, 2013: €5 million and €40 million, respectively). There were also obligations to these companies for future payments amounting to €4 million (December 31, 2013: €5 million) under operating leases and obligations of €5 million (December 31, 2013: €3 million) under purchase agreements.

In the second quarter and first half of 2014, production services totaling €1 million (Q2 2013: €0 million) and €2 million (H1 2013: €0 million), respectively, were provided to the LANXESS Group by jointly controlled entities. Loans receivable from jointly controlled entities as of June 30, 2014 totaled €5 million (December 31, 2013: €5 million).

No material business transactions were undertaken with other related parties. As in the previous year, no loans were granted to members of the Board of Management or the Supervisory Board in the first six months of 2014.