30. Transactions with Related Parties

A family member of a member of the Board of Directors has a majority share in a company. The Lindt & Sprüngli Group purchased the retail operations from this company in 2020. In relation to this purchase, a contingent consideration of CHF 1.0 million is still outstanding (CHF 0.9 million in prior year). Moreover, in 2022 operating expenses (mostly rent and energy costs) of CHF 0.1 million have been paid to this company (CHF 0.8 million in prior year).

In current and prior year the Lindt & Sprüngli Group provided various administration services to the Lindt Chocolate Competence Foundation, the Lindt Cocoa Foundation, the Finanzierungsstiftung für die Vorsorgeeinrichtungen der Chocoladefabriken Lindt & Sprüngli AG as well as the Fonds für Pensionsergänzungen der Chocoladefabriken Lindt & Sprüngli AG and also obtained such services from the first two mentioned. In 2022, no own shares have been sold to the Finanzierungsstiftung für die Vorsorgeeinrichtungen der Chocoladefabriken Lindt & Sprüngli AG (140 own shares at a price of CHF 88,920 in prior year). Furthermore, the Lindt & Sprüngli Group rents property from the pension funds with a market value of CHF 16.0 million at December 31, 2022 (CHF 16.0 million in prior year). The resulting rent expenses are immaterial (below CHF 1.0 million).

The Lindt & Sprüngli Group has provided the Lindt Chocolate Competence Foundation with the building right for the Lindt Home of Chocolate in 2016 and obtains a ground rent for it. The conditions of this contract have been agreed at arm’s length. In addition, the Lindt & Sprüngli Group has provided the funding bank with a security of up to CHF 130.0 million in relation to the construction project, which is unlikely to be used. Moreover, there are rental contracts between the Lindt & Sprüngli Group and the Lindt Chocolate Competence Foundation, in particular for office space, and therefore result in rent expenses, rent income, incidental costs and maintenance costs. Additionally, the Lindt & Sprüngli Group uses a pilot plant owned by the Lindt Chocolate Competence Foundation for research, and runs show productions, which the Lindt & Sprüngli Group is compensated for.

In total, the mentioned transactions with Lindt Chocolate Competence Foundation resulted in other income of CHF 6.0 million (CHF 5.8 million in prior year) and expenses of CHF 5.8 million (CHF 7.8 million in prior year). The outstanding receivables were as in prior year immaterial (below CHF 1.0 million) and the open payables amounted to CHF 1.0 million (immaterial in prior year).

Remuneration of the Board of Directors and Group Management

As of December 31, 2022, the Board of Directors consisted of 7 non-executive and executive Directors (6 in prior year). The number of executive Officers as of December 31, 2022, is 7 (7 in prior year). The compensation paid to non-executive Directors and executive Officers is shown below:

Apart from the payments mentioned above, no payments were made on a private basis or via consulting companies to either an executive or a non-executive member of the Board of Directors or a member of the Group Management. As of December 31, 2022, there were no loans, advances or credits due to the Lindt & Sprüngli Group or any of its subsidiaries by any of the members of the Board of Directors or the Group Management.