Changes in equity

in € millions

Subscribed share capital

Additional paid-in capital

Cashflow hedge reserve

Cumulative translation reserves

Other reserves

Share­holders’ equity

Non­controlling interests

Group equity

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

149

(393)

(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

746

3

(47)

5,347

6,553

481

7,034

 

 

 

 

 

 

 

 

 

Balance at January 1, 2017

504

746

3

(47)

5,347

6,553

481

7,034

Profit for the period

832

832

72

904

Other comprehensive income

12

(502)

380

(110)

(38)

(148)

Comprehensive income for the period

12

(502)

1,212

722

34

756

Dividend

4

180

(1,471)

(1,287)

(73)

(1,360)

Equity-settled transactions

37

37

37

Issue of common shares

2

(2)

Share repurchase

(5)

(155)

(160)

(160)

Balance at December 31, 2017

505

769

15

(549)

5,125

5,865

442

6,307

Shareholders’ equity

Shareholders’ equity decreased from €6.6 billion at year-end 2016 to €5.9 billion at year-end 2017, mainly due to the net effect of:

  • Dividend payments of €1,287 million
  • Profit for the period of €832 million
  • Adverse currency effects of €502 million (and related taxes)
  • The completed share repurchase program, for which a total number of 2.38 million common shares were repurchased and canceled, decreasing shareholders’ equity by €160 million
  • An actuarial impact of €380 million (including tax) reported in Other comprehensive income, including €77 million for de-risking of pension liabilities

Dividend

Our dividend policy is to pay a stable to rising dividend. In 2017 an interim dividend of €0.56 per share (2016: €0.37), with the option to elect stock dividend, was paid. We will propose a 2017 final dividend of €1.94 per share, which would make a total 2017 dividend of €2.50 (2016: €1.65) per share, up 52%. In addition, a €1 billion special cash dividend, as advance proceeds for the separation of the Specialty Chemicals business, was paid on December 7, 2017.

There will be a stock dividend option with cash dividend as default. Please refer to the final page of this report for dividend payment dates.

Share repurchase program

In Q4 2016, we announced the repurchase of up to 2.5 million common shares to neutralize the dilutive effect of stock dividends paid in 2016.

The share repurchase program was completed in April 2017. A total number of 2.38 million common shares were repurchased in the period from January 2, 2017, up to and including April 21, 2017, for a total consideration of €160 million. These shares have subsequently been canceled.