43. Related Party Disclosures

Identification of related parties

In accordance with IAS 24, relationships with elated parties that control BLG LOGISTICS or are controlled by it or over which BLG LOGISTICS can exercise significant influence must be disclosed.

Related parties include, in particular, majority shareholders, subsidiaries – provided that they are not already included in the combined financial statements as consolidated companies – joint ventures, associates or intermediary companies.

In addition, the Board of Management and the Supervisory Board of BLG AG and the first tier of management also constitute related parties pursuant to IAS 24; this also includes family members of the aforementioned persons. A breakdown of the members of the Board of Management and the Supervisory Board, as well as further information about these groups, is provided in note 45. In the 2024 financial year, no reportable transactions took place between members of the Board of Management, the Supervisory Board, the first tier of management and their family members and BLG LOGISTICS.

Material transactions with shareholders: Relationships with the Free Hanseatic City of Bremen (municipality)

As of December 31, 2024, the Free Hanseatic City of Bremen (municipality) was the majority shareholder of BLG AG with a 50.42 percent share of the issued capital (previous year 50.42 percent). The Free Hanseatic City of Bremen (municipality) received a dividend payment in the amount of EUR 16.5 million (previous year: EUR 8.8 million) following the resolution on the appropriation of net retained profits for 2023.

As stipulated in Article 148 of the Constitution of the Free Hanseatic City of Bremen, the Bremen Senate acts as both the state government and statutory body of the municipality of Bremen. Due to the fact that the statutory bodies of the Free Hanseatic City of Bremen (municipality) and the Free Hanseatic City of Bremen (state) are one and the same, this body is consequently considered a related party or ultimate controlling party pursuant to IAS 24. The Free Hanseatic City of Bremen (municipality) has issued heritable building rights to BLG KG with a remaining term of up to 24 years for the land used by the company and its subsidiaries. As of December 31, 2024, lease liabilities for heritable building rights amounted to EUR 268.0 million (previous year: EUR 272.5 million) owed to the Free Hanseatic City of Bremen (municipality). The BLG Group paid a total of EUR 15.5 million (previous year: EUR 15.4 million) for ground rent in 2024. The ground rent is subject to regular five-year increases on the basis of the consumer price index. The increase planned for the 2020 financial year was waived to support Bremen’s port and logistics industry in relation to the COVID-19 crisis and was instead charged in 2021. The next increase is scheduled to take place on January 1, 2025.

Transactions with affiliated companies of the Free Hanseatic City of Bremen (municipality) and (state)

Individual companies of BLG LOGISTICS maintain ongoing business relationships with affiliated companies of the Free Hanseatic City of Bremen (municipality).

BLG KG took out several loans from BLG Unterstützungskasse GmbH, Bremen. The loan liabilities amounted to EUR 25,600 thousand as of December 31, 2024 (previous year: EUR 25,600 thousand). No loan liabilities were repaid and no new loan liabilities taken out in the reporting year. Interest of EUR 919 thousand (previous year: EUR 505 thousand) was paid. In addition, BLG Unterstützungskasse GmbH has been included in the central cash management of BLG KG since September 1, 2012. Interest was charged on funds provided under the same conditions as previously. At the end of the reporting period, liabilities from cash management came to EUR 1,769 thousand (previous year: EUR 1,678 thousand).

Relationships with non-consolidated affiliated companies, joint ventures and associates

Transactions by the Group companies with joint ventures, associates and non-consolidated affiliated companies all occurred in the ordinary course of business at the companies involved. Services were provided to these related parties subject to the prices and conditions also applicable to third parties. The receivables included lease receivables of EUR 168,021 thousand (previous year: EUR 172,212 thousand). The outstanding balances, with the exception of non-current lease receivables of EUR 163,418 thousand (previous year: EUR 167,968 thousand), are unsecured and due in the short term. The table below shows the extent of the business relationships of the joint ventures and associates:

Loss allowances of EUR 9 thousand (previous year: EUR 9 thousand) were recognized for expected credit losses on receivables from joint ventures and associates using the simplified approach. Other than this, no receivables from joint ventures were derecognized in the reporting year. In the reporting year, loss allowances of EUR 600 thousand (previous year: EUR 0 thousand) were recognized on loans to joint ventures and associates. As in the previous year, no loss allowances were recognized on receivables from non-consolidated affiliated companies.