For the Bertelsmann Group, related parties as defined in IAS 24 are those persons and entities that control or exercise a significant influence over the Bertelsmann Group, and those persons and entities controlled or jointly controlled by the Bertelsmann Group, or over which it exercises a significant influence. Accordingly, certain members of the Mohn family, the members of the Executive Board of Bertelsmann Management SE as the personally liable partner and the Supervisory Board of Bertelsmann SE & Co. KGaA including close members of their families and including the companies that are controlled or jointly managed by them, and the joint ventures and associates forming part of the Bertelsmann Group and their subsidiaries are defined as related parties.

Bertelsmann Verwaltungsgesellschaft mbH (BVG), Gütersloh, a holding company with no operating activities, has control of the Bertelsmann Group. Johannes Mohn GmbH has informed Bertelsmann SE & Co. KGaA that, as a result of the merger of Bertelsmann Beteiligungs GmbH into Johannes Mohn GmbH, it directly owns more than 50 percent of the shares in Bertelsmann Management SE and of Bertelsmann SE & Co. KGaA since December 12, 2017. Reinhard Mohn Verwaltungsgesellschaft mbH and Mohn Beteiligungs GmbH still own more than onequarter of the shares in Bertelsmann Management SE and in Bertelsmann SE & Co. KGaA. Shares held both directly and indirectly are included when identifying shareholdings.

In the legal form of a KGaA, the business is managed by a personally liable partner. In the case of Bertelsmann SE & Co. KGaA, Bertelsmann Management SE, represented by its Executive Board, is responsible for the management of the business. The statutory bodies consist of the Supervisory Board and the General Meeting at the Bertelsmann SE & Co. KGaA level, and the Executive Board, Supervisory Board and General Meeting at the Bertelsmann Management SE level. The Supervisory Board of the KGaA is elected by the limited partners at the General Meeting. The members of the Bertelsmann Management SE Supervisory Board are appointed at the General Meeting of Bertelsmann Management SE. BVG controls the voting rights at the Bertelsmann SE & Co. KGaA and Bertelsmann Management SE General Meeting.

Remuneration for key management personnel includes:

The remuneration shown also includes remuneration for activities by the members of the Supervisory Board of Bertelsmann SE & Co. KGaA in the Supervisory Board of Bertelsmann Management SE. Transactions with subsidiaries included in the scope of consolidation are eliminated and are not further disclosed. In addition to transactions with consolidated subsidiaries, the following transactions with related parties and entities were conducted in the reporting period:

The amounts owed to key members of management include pension obligations, variable remuneration components and long-term incentives. The item “Other related parties” primarily includes transactions with the personally liable partner Bertelsmann Management SE. The obligations as of the end of the reporting period result from expenses passed on by Bertelsmann Management SE.

No guarantees were entered into for associates during the reporting period or in the previous year. In line with the previous year, Bertelsmann has no share in the contingent liabilities of its associates. There are contribution obligations in the amount of €63 million (previous year: €61 million) to a Brazilian fund set up by Bertelsmann along with the investment company Bozano Investimentos and other partners, investing in educational companies, with a particular focus on healthcare. Further contribution obligations exist to University Ventures Funds in the amount of €19 million (previous year: €44 million). As in the previous year, no significant expenses were recognized for bad or doubtful debts due from associates in the financial year 2017. Loans amounting to €15 million were granted to associates in the financial year 2017 (previous year: €18 million). As in the previous year, no loans were received from associates.

Joint ventures have obligations to the Bertelsmann Group from operating leases in the amount of €8 million (previous year: €12 million) and contingent liabilities in the amount of €27 million (previous year: €17 million). As of the end of the reporting period, commitments for RTL Group joint ventures existed in the amount of €21 million (previous year: €38 million). As in the previous year, no expenses were recognized for bad or doubtful debts due from joint ventures in the financial year 2017. Loans amounting to €1 million were granted to joint ventures in the financial year 2017 (previous year: €1 million). Loans were received from joint ventures in the amount of €8 million during the reporting period (previous year: €34 million).