Changes in equity

in € millions

Subscribed share capital

Additional paid-in capital

Cashflow hedge reserve

Cumulative translation reserve

Other reserves

Share­holders’ equity

Non­controlling interests

Group equity

Balance at January 1, 2015

492

463

(19)

(43)

4,897

5,790

477

6,267

Profit for the period

979

979

87

1,066

Other comprehensive income

(23)

124

(193)

(92)

15

(77)

Comprehensive income for the period

(23)

124

786

887

102

989

Dividend

4

137

(363)

(222)

(86)

(308)

Equity-settled transactions

32

32

32

Issue of common shares

2

(2)

2

2

Acquisitions and divestments

(3)

(3)

1

(2)

Balance at December 31, 2015

498

598

(42)

81

5,349

6,484

496

6,980

 

 

 

 

 

 

 

 

 

Balance at January 1, 2016

498

598

(42)

81

5,349

6,484

496

6,980

Profit for the period

970

970

82

1,052

Other comprehensive income

45

(128)

(597)

(680)

(5)

(685)

Comprehensive income for the period

45

(128)

373

290

77

367

Dividend

5

148

(392)

(239)

(93)

(332)

Equity-settled transactions

20

20

20

Issue of common shares

1

(1)

Acquisitions and divestments

(2)

(2)

1

(1)

Balance at December 31, 2016

504

745

3

(47)

5,348

6,553

481

7,034

Shareholders’ equity

Shareholders’ equity increased from €6.5 billion at year-end 2015 to €6.6 billion at year-end 2016, mainly due to the net effect of:

  • Profit for the period of €970 million
  • A net negative effect of €597 million for actuarial gains and losses which includes the adverse impact of the de-risking of pension liabilities and the positive impact of re-recognition of (pension related) deferred tax assets
  • Dividend payments of €239 million
  • Negative currency effect of €128 million (and related taxes)

Dividend

Our dividend policy is to pay a stable to rising dividend. We will propose a 2016 final dividend of €1.28 per share, which would make a total 2016 dividend of €1.65 (2015: €1.55) per share, up 6%. There will be a stock dividend option with cash dividend as default. Please refer to the last page of this report for dividend payment dates.

Share repurchase program

We announced the repurchase of up to 2.5 million ordinary shares to neutralize the dilutive effect of stock dividends paid in 2016. Subject to shareholder approval, it is intended the shares will be cancelled during the course of 2017. This share repurchase program started on January 2, 2017, and is anticipated to be concluded by the end of April 2017.