sain t-gobain annu al report 2008 annual report

NOTE 28
Related-party transactions
Balances and transactions with associates
Dec. 31, Dec. 31, Dec. 31,
(in € millions) 2008 2007 2006
Assets
Financial receivables 2 2 11
Inventories 1 0 1
Short-term receivables 11 9 16
Cash and cash equivalents 0 0 1
Provisions for impairment in value 0 0
Liabilities
Short-term debt 4 1 7
Cash advances 0 0 4
Expenses
Purchases 21 17 86
Income
Sales 45 41 66
Revenue from transactions with proportionately
consolidated companies
Transactions with proportionately consolidated companies are
treated as transactions with external parties and the Group’s
share of revenue arising from such transactions is not eliminated
on consolidation. In 2008, these revenues amounted to
€8 million (2007: €4 million; 2006: €3 million).
Transactions with key shareholders
Some Group subsidiaries, particularly in the Building Distribution
Sector, carry out transactions with subsidiaries of the
Wendel group (mainly Legrand and Materis). Business relations
between the two groups have not changed since Wendel
increased its interest in the Group in the second half of 2007,
and transactions are carried out on an arm’s length basis.
NOTE 29
Joint ventures
The amounts recorded in the 2008 balance sheet and income
statement corresponding to the Group’s interest in its proportionately
consolidated companies are as follows:
Non-current assets: €303 million.
Current assets: €163 million.
Non-current liabilities: €35 million.
Current liabilities: €142 million.
Sales: €320 million.
Operating expenses: €257 million.
NOTE 30
Management compensation
Direct and indirect compensation and benefits paid to
members of the Board of Directors and the Group’s senior
management were as follows in 2008:
(in € millions) 2008
Attendance fees 0.8
Direct and indirect compensation (gross):
- fixed portion 8.0
- variable portion 5.4
Estimated compensation cost -
pensions and other employee benefits (IAS 19) 1.4
Expense relating to stock options 10.7
Termination benefits 1.5
Total 27.8
Employers’ social security contributions relating to the above
compensation represented an estimated €3.3 million.
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Saint-Gobain – Financial Report 2008