(35) Related party disclosures

Within the framework of their ordinary business activities, RWE AG and its subsidiaries have business relationships with numerous companies. These include associates, which are classified as parties related to the Group, along with the RWE Energy Division’s investments in municipal enterprises accounted for using the equity method Glossary, especially municipal utilities.

Business transactions were concluded with major related parties, resulting in following items in RWE’s consolidated financial statements:

All business transactions are completed at arm’s length prices and on principle do not differ from the conditions for supply and services provided to other enterprises. €114 million of the receivables (previous year: €88 million) and €5 million of the liabilities (previous year: €4 million) fall due within one year. In respect of the receivables there were guarantees of €0 million, as in the previous year, and other collateral amounting to €1 million (previous year: €1 million). The receivables included €570 million in interest-bearing loans to the Berlinwasser Group (previous year: €725 million).

Above and beyond this, as of December 31, 2008, there was an unused €19 million line of credit for the Berlinwasser Group (previous year: €25 million).

Furthermore, since October 1, 2007, the companies of the Georgsmarienhütte Group are now classified as related companies, as the CEO of RWE AG, Dr. Großmann, is a partner in Georgsmarienhütte Holding GmbH. RWE Group companies provided services and deliveries amounting to €6.8 million to companies of the Georgsmarienhütte Group (from October 1 of the previous year: €1.9 million). Companies belonging to the Georgsmarienhütte Group have provided services and deliveries amounting to €1.7 million to RWE Group companies (from October 1 of the previous year: €0.1 million). As of December 31, 2008, the Georgsmarienhütte Group had liabilities of €0.4 million to RWE Group companies (previous year: €0.7 million). All business transactions are completed at arm’s length prices and on principle do not differ from the conditions for supply and services provided to other enterprises.

No material business transactions were concluded between the RWE Group and related persons.

The compensation model and compensation of the Executive and Supervisory Boards is presented in the compensation report.

In total, the compensation of the Executive Board amounted to €20,260,000 (previous year: €17,376,000), plus pension service costs Glossary of €436,000 (previous year: €1,913,000). The Executive Board received short-term compensation components amounting to €17,510,000 for fiscal 2008 (€12,782,000 in the previous year for fiscal 2007). In addition to this, long-term compensation components from the 2008 tranche of the Beat programme in the amount of €2,750,000 were allocated (€4,594,000 from the 2007 Beat tranche in 2007).

The Supervisory Board received total compensation of €4,173,000 (previous year: €3,237,000) in fiscal 2008. Supervisory Board members also received €256,000 in compensation from subsidiaries for the exercise of mandates (previous year: €268,000).

Former members of the Executive Board and their surviving dependents received €26,783,000 (previous year: €8,932,000), of which €1,823,000 came from subsidiaries (previous year: €1,899,000). Of this, €16,501,000 of this was related to LTIP payments (previous year: €0). As of the balance-sheet date, €114,868,000 (previous year: €114,729,000) has been accrued for defined benefit obligations to former members of the Executive Board and their surviving dependents, of which €18,820,000 was set aside at subsidiaries (previous year: €19,344,000).

The Economic Advisory Board was paid total compensation of €250,000 (previous year: €289,000).

Declarations on the members of the Executive and Supervisory Boards in accordance with Sec. 285 No. 10 of the German Commercial Code (HGB) are presented in the chapters Executive Board and Supervisory Board.