NOTES TO THE BALANCE SHEET

29. Related party transactions
Parties are considered related parties if one of the parties is able to exercise control or a significant influence over the other in decisions affecting its finances and business. The Group’s related parties include the associates and joint ventures. Related parties also include the Supervisory Board and Board of Directors of the Group parent’s parent entity (LSO Osuuskunta), the members of the Group’s Board of Directors, the Group’s CEO, the deputy CEO and their immediate family members, as well as the members of the Group Management Team. The Group strives to treat all parties equally in its business.
HKScan Corporation’s principal owner, LSO Osuuskunta, is a cooperative of 1 300 Finnish meat producers. The cooperative fosters its members’ meat production and marketing by exercising its power of ownership in HKScan. Today, LSO Osuuskunta has no actual business, but receives an income in the form of dividend paid by HKScan and, to a lesser extent, income in the form of other investments and rents. The HKScan Group applies pure market price principles to the acquisition of raw meat material.
The sale of animals to the Group by members of the Group’s Board of Directors and members of the Supervisory Board and Board of Directors of its parent entity LSO Osuuskunta totalled EUR 13.8 (13.5) million. Said persons purchased animals from the Group with EUR 4.3 (4.4) million.
Information on employee benefits of the Management are presented in Note 4. More information on fees of the Board of Directors and the Management is available in the remuneration statement for 2016, which can be found on the Group’s website.
Related party individuals are not otherwise in a material business relationship with the company.
Shares in subsidiaries Number of shares Owner-%
Owned by the Group's parent company
HKScan Finland Oy, Finland 1 000 100.00
HKScan Sweden AB, Sweden 500 000 100.00
HKScan Denmark A/S, Denmark 102 002 100.00
AS HKScan Estonia, Estonia 37 721 700 100.00
UAB HKScan Lietuva, Lithuania 2 000 100.00
AS HKScan Latvia, Latvia 155 920 99.52
HKScan UK Ltd, the UK 999 100.00
HKScan Asia Limited, Hong Kong 10 000 100.00
OOO HKScan, Russia 1 100.00
Owned by HKScan Finland Oy
Kivikylän Kotipalvaamo Oy, Finland 49 49,00*
Lihatukku Harri Tamminen Oy, Finland 49 49,00*
Paimion Teurastamo Oy, Finland 25 50,00*
Owned by AS HKScan Estonia
Rakvere Farmid AS, Estonia 6 984 100.00
Owned by HKScan Sweden AB
HKScan Real Estate AB, Sweden 80 000 100.00
Nordic Genetics AB, Sweden 1 000 100.00
HKScan International AB, Sweden 10 100.00
HKScan Poland Sp.zo.o, Poland 5 000 100.00
Samfood S.A., Belgium 24 999 100.00
Owned by HKScan Real Estate AB
HKScan Real Estate Halmstad AB, Sweden 3 900 100.00
Owned by HKScan Denmark A/S
Kreatina A/S, Denmark 30 000 100.00
* Control is based on shareholders' agreement / board selection.
Shares and holdings in associated companies Number of shares Owner-%
Owned by the Group's parent company
Lihateollisuuden Tutkimuskeskus, Finland** 2 600 5.2*
Owned by HKScan Finland Oy
Länsi-Kalkkuna Oy, Finland 250 50.00
Pakastamo Oy, Finland 660 50.00
Lihateollisuuden Tutkimuskeskus, Finland** 22 400 44.80*
Honkajoki Oy, Finland 900 50.00
Envor Biotech Oy, Finland 128 24.62
Finnpig Oy, Finland 40 50.00
Oy LHP Bio-Carbon LTD, Finland 32 24.24
DanHatch Finland Oy, Finland 250 20.00
Owned by HKScan Sweden AB
Industrislakt Syd AB, Sweden 50 000 50.00
Siljans Chark AB, Sweden 3 680 39.30
AB Tillväxt for svensk animalieproduktion, Sweden 135 500 50.00
Svenska Köttforetagen Holding AB, Sweden 48 000 24.00
Owned by HKScan Denmark A/S
Tican-Rose GmbH, Germany 1 50.00
HRP Kyllingefarme I/S, Denmark 752 50.00
Farmfood A/S, Denmark 10 000 33.30
* The Group has a total of 50 per cent ownership in Lihateollisuuden Tutkimuskeskus.
** Joint venture
The Group conducts business through the associates. The activities include slaughtering, cutting, meat processing, and the use of leasing, waste disposal, research and advisory services. All commercial contracts are negotiated on market terms.
The following transactions were carried out with related parties
2016 2015
Product sales to associates 46.9 70.1
Sales of animals to related parties 4.3 4.4
Product purchases from associates 39.2 46.6
Purchases of animals from related parties 13.8 13.5
Open balances on 31 December 2016 2015
Trade receivables from associates 2.2 1.4
Trade payables to associates 5.1 5.3