Notes to the Consolidated Financial Statements Notes to the Consolidated Financial Statements (38) Research and development expenditure (41) Group companies and joint arrangements Expenditure on research and development in the reporting period amounted to CHF 358.0 million (2019: CHF 366.6 million), thereof Country Company name and location Activity CHF 171.4 million (2019: CHF 171.5 million) were recognized as intangible assets (see development costs in note (7)). S = sales R = research (39) Related party disclosures D = development P = production (39.1) Key management personnel compensation Se = services H = holding Details of compensation of key management personnel are as follows: financial amounts in CHF million 22002200 2019 Parent company Number of Re- Number of Re- members muneration members muneration Liechtenstein Hilti Corporation, Feldkircherstrasse 100, P.O. Box 333, 9494 Schaan, S, R, D, P, Se, H Tel. +423 234 2111, www.hilti.group Board of Directors 8 3.4 7 3.3 Corporate Management (Executive Board and Executive Management Team) 30 25.2 29 38.5 100% owned consolidated Group companies (subsidiaries – including production plants and market organizations) Total 3388 2288..66 3366 4411..88 Albania Hilti Albania sh.p.k., Tirana S Algeria Hilti Construction Equipements EURL, Alger S Salaries and other short-term employee benefits 23.7 28.6 Argentina Hilti Argentina S.R.L., Buenos Aires S Post-employment benefits 3.9 2.4 Australia Hilti (Aust.) Pty. Ltd., Rhodes New South Wales S Other employee benefits, mainly related to long-term incentive 1.0 10.8 Austria Hilti Austria Gesellschaft m.b.H., Vienna S Total employee benefits to key management 2288..66 4411..88 Hilti Holding GmbH, Vienna H Hilti Aktiengesellschaft Zweigniederlassung Thüringen, Thüringen P Employee benefits to key management include both fixed and variable components. The variable components are performance-linked Eurofox GmbH, Lanzenkirchen P, D and include a long-term incentive which is payable only if certain predetermined specific financial targets linked to the sustainable Belarus Hilti BY FLLC, Minsk S development and growth of the Group’s business are achieved. In accordance with IAS 19 Employee Benefits, the 2020 portion of the Belgium Hilti Belgium N.V., Brussels S estimated ultimate amount payable has been recognized as an obligation at December 31, 2020, under the heading of other employee Bosnia-Herzegovina Hilti Systems BH d.o.o. Sarajevo, Sarajevo S benefits (21). Brazil Hilti do Brasil Comercial Ltda., São Paulo S Bulgaria Hilti (Bulgaria) EOOD, Sofia S (39.2) Ownership of parent Canada Hilti (Canada) Corporation, Mississauga, Ontario S 100% of the registered shares of the Hilti Corporation are owned by the Martin Hilti Family Trust. Chile Hilti Chile Limitada, Santiago de Chile S China Hilti (China) Ltd., Zhanjiang P, D (39.3) Other transactions and balances with the shareholder Hilti (China) Distribution Ltd., Shanghai S Hilti (PEC Suzhou) Ltd., Suzhou P The Hilti Corporation rendered accounting, administration, rental and other support services to the Martin Hilti Family Trust. The amount Hilti (Shanghai) Ltd., Shanghai P, D invoiced was CHF 1.0 million (2019: CHF 1.0 million). These services were charged at cost. Additionally, the Hilti Corporation has a current liability to the Martin Hilti Family Trust of CHF 0.7 million (2019: CHF 0.7 million). Oglaend Industries (Suzhou) Co., Ltd., Suzhou P Oglaend System (Suzhou) Trading Co., Ltd., Suzhou S During 2020 the Martin Hilti Family Trust granted a loan of CHF 100.0 million to the Hilti Corporation which was repaid during the year. Colombia Hilti Colombia S A S, Bogota D.C. S The applied interest rate was at arm’s length. Croatia Hilti Croatia d.o.o., Sesvete S Czech Republic Hilti ČR spol. s r.o., Průhonice S (40) Events after the reporting period Denmark Hilti Danmark A/S, Hvidovre S Øglænd System A/S, Haderslev S There were no significant transactions after the reporting period. Estonia Hilti Eesti OÜ, Tallinn S Finland Hilti (Suomi) OY, Vantaa S France Hilti France SAS, Boulogne-Billancourt S Hilti Digital Marketing Services SAS, Boulogne-Billancourt Se Germany Hilti Deutschland AG (Liechtenstein), Zweigniederlassung Deutschland, Kaufering S Hilti GmbH Industriegesellschaft für Befestigungstechnik, Kaufering P Hilti Entwicklungsgesellschaft mbH, Kaufering D Hilti Kunststofftechnik GmbH, Nersingen P 2020 Financial Report | 64 2020 Financial Report | 65