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 holds a direct or indirect interest. Transactions with these companies are carried out on an arm’s-length basis.

Transactions in the first quarter 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 €114 million (Q1 2013: €116 million). Receivables of €2 million and payables of €148 million existed as of March 31, 2014 as a result of these transactions (December 31, 2013: €5 million and €40 million, respectively). There was no material change in the first quarter of 2014 in the payment obligations to these companies that existed as of December 31, 2013 under operating leases (€5 million) or purchase agreements (€3 million).

In the first quarter of 2014, production services totaling €1 million (Q1 2013: €0 million) were provided to the LANXESS Group by jointly controlled entities. Loans receivable from jointly controlled entities as of March 31, 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 quarter of 2014.