Note 16: Group equity
In € |
Authorized share capital |
Subscribed share capital |
Priority shares (48 with nominal value of €400) |
19,200 |
19,200 |
Cumulative preferred shares |
400,000,000 |
– |
Common shares |
1,200,000,000 |
505,241,170 |
Total |
1,600,019,200 |
505,260,370 |
In € |
Authorized share capital |
Subscribed share capital |
Priority shares (48 with nominal value of €400) |
19,200 |
19,200 |
Cumulative preferred shares |
400,000,000 |
– |
Common shares |
1,200,000,000 |
512,438,602 |
Total |
1,600,019,200 |
512,457,802 |
Number of shares |
2017 |
2018 |
Outstanding at January 1 |
252,176,412 |
252,620,585 |
Issued in connection to |
405,231 |
991,928 |
Stock dividend |
2,418,168 |
2,606,788 |
Share repurchase |
(2,379,226) |
– |
Balance at December 31 |
252,620,585 |
256,219,301 |
Number of shares |
2017 |
2018 |
Weighted average number of shares |
251,635,130 |
254,873,298 |
For further details on weighted average number of shares, refer to Note 9.
Subscribed share capital
For further details on subscribed share capital, refer to Note F in the Company financial statements.
Other components of Shareholders’ equity
Changes in fair value of derivatives comprise the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to hedged transactions that have not yet occurred.
Cumulative translation reserves comprise all foreign exchange differences arising from the translation of the financial statements of foreign operations, as well as from the translation of intercompany loans with a permanent nature and liabilities and derivatives that hedge the net investments in a foreign subsidiary.
Equity-settled transactions consist of the performance-related share plan and share-matching plan, whereby shares are granted to the Board of Management, Executive Committee and other executives. For details of the share-based compensation, refer to Note 6.
Non-controlling interests
None of the non-controlling interests are considered individually material to the group.
|
|
|
2017 |
|
2018 |
Group entity |
Partner at year-end 2018 |
% |
Equity stake in € millions |
% |
Equity stake in € millions |
Akzo Nobel India Limited, Kolkata, India |
Privately held, India |
27.04 |
52 |
25.24 |
49 |
Akzo Nobel Paints (Malaysia) Sdn. Bhd., Kuala Lumpur, Malaysia |
Privately held, Malaysia |
40.05 |
25 |
40.05 |
24 |
PT ICI Paints Indonesia, Jakarta, Indonesia |
PT DWI Satrya Utama, Indonesia |
45.00 |
28 |
45.00 |
22 |
International Paint (Korea) Ltd, Busan, South-Korea |
Noroo Holdings, South Korea |
40.00 |
17 |
40.00 |
16 |
Akzo Nobel Kemipol A.S., Izmir, Turkey |
Privately held, Turkey |
49.00 |
17 |
49.00 |
16 |
International Paints Saudi Arabia, Saudi Arabia |
Yousuf Bin Ahmed Kanoo Co. Ltd, Saudi Arabia |
40.00 |
13 |
40.00 |
15 |
Akzo Nobel Oman SAOC, Muscat, Oman |
Omar Zawawi establishment LLC, Oman |
50.00 |
11 |
50.00 |
11 |
Akzo Nobel Pakistan Limited, Karachi, Pakistan |
Privately held, Pakistan |
24.19 |
12 |
24.19 |
10 |
Akzo Nobel UAE Paints LLC, United Arab Emirates |
Kanoo Group, United Arab Emirates |
40.00 |
10 |
40.00 |
9 |
International Paints of Shanghai Co. Ltd, Shanghai, China |
Huayi Fine Chemical Co. Ltd, China; China National Shipbuilding Equipment & Materials Corp. |
49.00 |
5 |
49.00 |
6 |
Akzo Nobel Swire Paints (Guanzhou) Limited, Guangzhou, China |
Industrial Development Co. Ltd of Guanzhou, China |
46.00 |
33 |
10.00 |
6 |
Akzo Nobel Swire Paints (Shanghai) Ltd, Shanghai, China |
– |
30.00 |
170 |
– |
– |
Others |
|
|
252 |
|
20 |
Total |
|
|
442 |
|
204 |
Dividend
Our dividend policy is to pay a stable to rising dividend. In 2018, an interim dividend of €0.37 per share (2017: €0.56) was paid.
In line with our announcement on April 19, 2017, we intend to return the vast majority of the net proceeds from the separation of the Specialty Chemicals business to our shareholders.
The Extraordinary General Meeting of November 13, 2018, approved to return an amount of €2.0 billion to shareholders by means of a capital repayment and share consolidation which was executed in January 2019. A share consolidation ratio of 9:8 was applied.
We will distribute €1.0 billion by means of a special cash dividend of €4.50 per common share (post consolidation) on February 25, 2019.
A share buyback program to repurchase common shares up to the value of €2.5 billion is due to be completed at the end of 2019. We intend to cancel these shares after repurchase.
We propose a 2018 final dividend of €1.43 per share (post consolidation), which would equal a total 2018 dividend of €1.80 (2017: €2.50, including €0.85 related to the Specialty Chemicals business) per share.