17 – Related Party Transactions

The BASF Group maintains relationships with several related parties that can exert influence on the BASF Group or over which the BASF Group exercises control or joint control, or a significant influence. The following tables show the scope of the Group’s transactions with related parties.

Sales from subsidiaries to BASF Group companies amounted to €105 million in the first half of 2020, and €91 million in the first half of 2019. Sales from joint ventures with BASF Group companies amounted to €418 million in the first half of 2020, and €326 million in the first half of 2019. Sales from associated companies with companies in the BASF Group amounted to €300 million in the first half of 2020, and €319 million in the first half of 2019.

Sales and trade accounts receivable from and trade accounts payable to related parties mainly included business with own products, merchandise, agency and licensing businesses, and other operating businesses.

Other receivables and liabilities primarily arose from financing activities, from accounts used for cash pooling, outstanding dividend payments, profit and loss transfer agreements, and other finance-related and operating activities and transactions.

The balance of valuation allowances on trade accounts receivable from related parties amounted to €4 million as of June 30, 2020, compared with €5 million as of December 31, 2019.

The balance of valuation allowances on other receivables from nonconsolidated subsidiaries rose from €23 million as of December 31, 2019, to €55 million as of June 30, 2020. Of this amount, €33 million was recognized as an expense.

The following tables show the volume of business with related parties that are included in the Consolidated Financial Statements at amortized cost or accounted for using the equity method. The values include sales, receivables, other receivables, liabilities and other liabilities with respect to the disposal groups and/or discontinued operations.

There were no reportable related-party transactions with members of the Board of Executive Directors or the Supervisory Board and their related parties during the reporting period.