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As at 31 December 2018, the State Treasury was the majority shareholder of the Group.
In 2018, the State Treasury was the direct top-level parent. Accordingly, all companies owned by the State Treasury (directly or indirectly) are the Group’s related parties. In these consolidated financial statements, the Management Board of the Parent Company has disclosed transactions with significant related parties identified as such according to the best knowledge of the Management Board.
In 2018 and in 2017, all the transactions between the Group and its related parties were executed on an arm’s length basis, were typical and concluded in the normal course of business.
The following individual transactions executed between JSW and the State Treasury or parties related to the State Treasury were identified as significant due to their non-standard scope and/or amount:
Other transactions from 1 January to 31 December 2018 and from 1 January to 31 December 2017 concluded by the Group with the subsidiaries of the State Treasury, which are significant in aggregate, are related to purchases of materials and services for current operations (coal, electricity, forwarding and cargo transportation services). In 2018, the Group’s most important, State Treasury-controlled suppliers included: PKP S.A. Group, Tauron S.A. Group, Węglokoks S.A. Group, PGNiG S.A. Group, Polska Grupa Górnicza S.A. In turn, the most important State Treasury-controlled clients in 2018 included: PGE S.A. Group, WZK Victoria, PGNiG Group and the ENEA S.A. Group.
The table below presents transactions concluded with associates:
| 2018 | 2017 | |
|---|---|---|
| Transactions with associates | ||
| Purchases in the period | 9.9 | 8.4 |
| Balance of liabilities at the end of the period * | 2.3 | 2.0 |
| TOTAL PURCHASES | 9.9 | 8.4 |
| TOTAL BALANCE OF LIABILITIES | 2.3 | 2.0 |
* Including VAT.
The Management Board of JSW is the Group’s key management personnel.
Compensation of Parent Company’s Management Board members
| 2018 (PLN 000s) |
2017 (PLN 000s) |
|
|---|---|---|
| Short-term employee benefits: | ||
| – remuneration, management services* | 3,720.0 | 3,098.0 |
| – annual bonus ** | – | – |
| – benefits, income from other sources *** | – | 560.0 |
| TOTAL | 3,720.0 | 3,658.0 |
*This item includes only compensation paid out under management contracts. In 2017, this item also included the compensation paid to Mr. Daniel Ozon, seconded to perform temporarily the duties of the President of the JSW Management Board – compensation specified by the Supervisory Board resolutions
**This item includes the annual bonus depending on the attainment of management objectives. By the date of preparation of these statements, the Supervisory Board has not adopted a resolution on the degree of fulfillment of management objectives and the amount of the 2017 annual bonus contingent on them.
***This item includes benefits payable after the expiration of the management contract / compensation for the notice period for management services, severance pay, compensation for refraining from competitive activity.
Details of the agreements concluded with the managers are provided in Section 7.16. Management Board Report on the activity of Jastrzębska Spółka Węglowa S.A. and the Jastrzębska Spółka Węglowa S.A. Group for the financial year ended 31 December 2018.
Compensation of the JSW Supervisory Board:
| 2018 (PLN 000s) |
2017 (PLN 000s) |
|
|---|---|---|
| Short-term benefits | 530.9 | 515.5 |
| TOTAL | 530.9 | 515.5 |
Additional information on remuneration of JSW Management Board and Supervisory Board members are provided in the Management Board Report on the activity of Jastrzębska Spółka Węglowa S.A. and the Jastrzębska Spółka Węglowa S.A. Group for the financial year ended 31 December 2018 (Section 7.16).
In 2018, no loans were granted to any members of the Management or Supervisory Board of JSW.
Information on transactions with Management Board members of Subsidiaries
| 2018 | 2017 | |
|---|---|---|
| Short-term employee benefits | 9.8 | 9.9 |
| Termination benefits (severance pay) | 0.3 | 0.4 |
| Post-employment benefits | 0.2 | 0.3 |
| Jubilee awards | 0.1 | – |
| Other | 0.1 | 0.1 |
| TOTAL | 10.5 | 10.7 |
Information on transactions with Supervisory Board members of Subsidiaries
| 2018 | 2017 | |
|---|---|---|
| Short-term benefits | 1.8 | 1.5 |
| TOTAL | 1.8 | 1.5 |
In 2018, no loans were granted to any members of the Management or Supervisory Boards of the subsidiaries.