XML 55 R39.htm IDEA: XBRL DOCUMENT v3.19.1
Note 32 - Related Parties
 12 Months Ended
Dec. 31, 2018
Statement Line Items [Line Items]  
Disclosure of related party [text block]
32.
RELATED PARTIES
 
Policies and practices regarding the realization of transactions with related parties
 
The Company adopts corporate governance practices recommended and/or required by the applicable law.
 
Under the Company’s by laws the Board of Directors is responsible for approving any transaction or agreements between the Company and/or any of its subsidiaries (except those fully subsidiaries), directors and/or shareholders (including shareholders, direct or indirect shareholders of the Company). The Antitrust Compliance and Related Parties Committee of the Company is required to advise the Board of Directors of the Company in matters related to transactions with related parties.
 
Management is prohibited from interfering in any transaction in which conflict exists, even in theory, with the Company interests. It is also
not
permitted to interfere in decisions of any other management member, requiring documentation in the Minutes of Meeting of the Board any decision to abstain from the specific deliberation.
 
The Company’s guidelines with related parties follow reasonable or commutative terms, similar to those prevailing in the market or under which the Company would contract similar transactions with
third
parties. These are clearly disclosed in the financial statements as formalized in written contracts.
 
Transactions with management members:
 
In addition to short-term benefits (primarily salaries), the management members are entitled to participate in Stock Option Plan (Note
24
–
Share-based payments
).
 
Total expenses related to the Company’s management members are as follows:
 
      2018       2017       2016  
                         
Short-term benefits
(i)
    
24.1
      
33.4
      
21.7
  
Share-based payments
(ii)
    
30.8
      
38.9
      
36.2
  
Total key management remuneration    
54.9
      
72.3
      
57.9
  
 
(i) These correspond substantially to management’s salaries and profit sharing (including performance bonuses).
 
(ii) These correspond to the compensation cost of stock options and restricted stocks granted to management. These amounts exclude remuneration paid to members of the Fiscal Council.
 
Excluding the above mentioned plan (Note
24
–
Share-based payments
), the Company
no
longer has any type of transaction with the Management members or pending balances receivable or payable in its balance sheet.
 
Transactions with the Company's shareholders:
 
a
) Medical,
dental and other benefits
 
The Fundação Antonio e Helena Zerrenner Instituição Nacional de Beneficiência (“Fundação Zerrenner) is
one
of Ambev’s shareholders, and at
December 31, 2018
held
10.2%
of its total share capital. Fundação Zerrenner is also an independent legal entity whose main goal is to provide Ambev’s employees, both active and retirees, with health care and dental assistance, technical and superior education courses, facilities for assisting elderly people, through direct initiatives or through financial assistance agreements with other entities. On
December 31, 2018
and
December 31, 2017,
actuarial responsibilities related to the benefits provided directly by Fundação Zerrenner are fully funded by plan assets, held for that purpose, which significantly exceeds the liabilities at these dates. Ambev recognizes the assets (prepaid expenses) of this plan to the extent of amounts from economic benefit available to the Company, arising from reimbursements or future contributions reduction.
 
The expenses incurred by Fundação Zerrenner in providing these benefits totaled
R$273.2
(
R$300.1
as of
December 31, 2017),
of which
R$238.4
and
R$34.8
related to active employees and retirees respectively (
R$264.3
and
R$35.8
as of
December 31, 2017
related to active employees and retirees respectively).
 
b) Leasing
 
The Ambev, through its subsidiary BSA (labeling), has an asset leasing agreement with Fundação Zerrenner, for
R$85.0
maturing on
May 31, 2020
that can be extended for a further year.
 
c) Leasing – Ambev. head office
 
Ambev has a leasing agreement of
two
commercial sets with Fundação Zerrenner in the annual amount of
R$3.3,
maturing on
January, 2020.
 
d) Licensing agreement
 
The Company maintains a licensing agreement with Anheuser-Busch, Inc., to produce, bottle, sell and distribute Budweiser products in Brazil, Canada and Argentina, and sales and distribution agreements of Budweiser products in Guatemala, in Dominican Republic, in Paraguay, in El Salvador, in Nicaragua, in Uruguay, in Chile, in Panama, in Costa Rica e in Puerto Rico. In addition, the Company produces and distributes Stella Artois products under license to ABI in Brazil and Canada and, by means of a license granted to ABI, it also distributes Brahma’s product in the United States and several countries such as the United Kingdom, Spain, Sweden, Finland and Greece. The amount recorded was
R$2.0
(
R$2.8
on
December 31, 2017
and
R$2.0
on
December 31, 2016)
and
R$431.6
(
R$369.1
on
December 31, 2017
and
R$374.0
on
December 31, 2016)
as licensing income and expense, respectively.
 
Ambev has licensing agreements with the Group Modelo, subsidiaries of ABI, for to import, promote and sell products Corona (
Corona Extra
,
Corona Light
,
Coronita
,
Pacifico
and
Negra Modelo
) in countries of the Latin America and the Canada.
 
Transactions with related parties
 
                              2018  
Current    
 Trade receivables
(i)
      
 Other Trade receivables
(i)
      
 Trade payables  
(i)
      
 Other Trade payables  
(i)
  
AB InBev    
16.4
      
–
      
(19.7
 )    
–
  
AB Procurement    
1.1
      
–
      
–
      
–
  
AB Services    
43.7
      
–
      
(1.7
 )    
–
  
AB USA    
27.8
      
3.8
      
(265.2
 )    
–
  
Cervecería Modelo    
135.1
      
–
      
(583.8
 )    
–
  
Inbev    
0.6
      
45.6
      
(14.3
 )    
–
  
ITW International    
–
      
–
      
(248.9
 )    
(66.5
 )
Panamá Holding    
41.1
      
–
      
(15.8
 )    
–
  
Others    
28.7
      
0.5
      
(126.4
 )    
–
  
     
294.5
      
49.9
      
(1,275.8
 )    
(66.5
 )
 
(i) The amount represents the trade operations (purchase and sale) and the reimbursement between the companies of the group.
 
 
 
      2017  
Current    
 Trade receivables
(i)
      
 Other Trade receivables
(i)
      
 Trade payables  
(i)
      
 Other Trade payables  
(i)
      
Borrowings and interest payable
      
 Dividends payables
 
AB InBev    
1.2
      
33.6
      
(363.0
 )    
(1.7
 )    
–
      
–
  
AB Procurement    
8.9
      
0.1
      
–
      
–
      
–
      
–
  
AB Services    
0.8
      
29.1
      
–
      
(6.1
 )    
–
      
–
  
AB USA    
14.1
      
16.3
      
(375.7
 )    
(8.7
 )    
–
      
–
  
Ambrew    
–
      
–
      
–
      
–
      
–
      
(89.9
 )
Cervecería Modelo    
91.6
      
5.8
      
(589.3
 )    
(59.7
 )    
–
      
–
  
Inbev    
0.1
      
23.8
      
(33.8
 )    
–
      
–
      
–
  
ITW International    
–
      
–
      
–
      
(212.5
 )    
(48.3
 )    
(590.9
 )
Panamá Holding    
–
      
20.3
      
–
      
(4.0
 )    
–
      
–
  
Others    
13.9
      
8.6
      
(73.8
 )    
(3.0
 )    
–
      
–
  
     
130.6
      
137.6
      
(1,435.6
 )    
(295.7
 )    
(48.3
 )    
(680.8
 )
 
(i) The amount represents the trade operations (purchase and sale) and the reimbursement between the companies of the group.
 
The tables below represent the transactions with related parties, recognized in the income statement:
 
                              2018  
Company    
Buying / Service fees / Rentals
      
Sales
      
Royalties
      
Net finance cost
  
AB Procurement    
–
      
17.0
      
–
      
–
  
AB USA    
(392.1
 )    
47.6
      
(347.8
 )    
–
  
Ambev Peru    
–
      
0.1
      
–
      
–
  
Cervecería Modelo    
(960.9
 )    
0.3
      
(54.8
 )    
–
  
Inbev    
(107.2
 )    
0.1
      
–
      
–
  
Others    
(148.5
 )    
18.8
      
(27.0
 )    
(8.0
 )
     
(1,608.7
 )    
83.9
      
(429.6
 )    
(8.0
 )
 
                              2017  
Company    
Buying / Service fees / Rentals
      
Sales
      
Royalties
      
Net finance cost
  
AB Procurement    
(5.8
 )    
20.8
      
–
      
–
  
AB USA    
(258.7
 )    
42.5
      
(284.5
 )    
–
  
Ambev Peru    
(8.6
 )    
1.5
      
–
      
–
  
Cervecería Modelo    
(749.1
 )    
0.4
      
(45.8
 )    
–
  
Inbev    
(73.6
 )    
–
      
–
      
–
  
Others    
(91.1
 )    
8.1
      
(35.9
 )    
(16.8
 )
     
(1,186.9
 )    
73.3
      
(366.2
 )    
(16.8
 )
 
                              2016  
Company    
Buying / Service fees / Rentals
      
Sales
      
Royalties
      
Net finance cost
  
AB Package    
(32.8
 )    
–
      
–
      
–
  
AB USA    
(206.0
 )    
52.3
      
(292.8
 )    
–
  
Cervecería Modelo    
(596.0
 )    
2.0
      
(46.9
 )    
–
  
InBev    
(77.0
 )    
–
      
–
      
–
  
ITW International    
–
      
–
      
–
      
(26.0
 )
Modelo    
(63.0
 )    
–
      
–
      
–
  
SAB Group    
(3.5
 )    
23.5
      
–
      
–
  
Others    
(45.6
 )    
0.3
      
(32.2
 )    
–
  
     
(1,023.9
 )    
78.1
      
(371.9
 )    
(26.0
 )
 
 
Denomination used in the tables above
:
 
Anheuser-Busch InBev N.V. (“AB InBev”)
Anheuser-Busch Packaging Group Inc. (“AB Package”)
Anheuser-Busch Inbev Services LLC (“AB Services”)
Anheuser-Busch Inbev USA LLC (“AB USA”)
Compañia Cervecera Ambev Peru S.A.C. (“Ambev Peru”)
Ambrew S.A. (“Ambrew”)
Cervecería Modelo de Mexico S. de R.L. de C.V. (“Cervecería Modelo”)
Inbev Belgium N.V. (“Inbev”)
Interbrew International B.V. (“ITW International”)
Cervecería Modelo de Guadalajara S.A. (“Modelo”)
Bavaria S.A. (“SAB Group”)