Changes in equity

in € millions

Subscribed share capital

Additional paid-in capital

Cashflow hedge reserve

Cumulative translation reserves

Other (legal) reserves and undis-tributed profit

Share-holders’ equity

Non-controlling interests

Group equity

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

 

 

 

 

 

 

 

 

 

Balance at December 31, 2017

505

769

15

(549)

5,125

5,865

442

6,307

Impact adoption IFRS 9

(3)

(3)

(3)

Impact adoption IFRS 15

(48)

(48)

(5)

(53)

Impact application IAS 29

23

23

23

Balance at January 1, 2018

505

769

15

(526)

5,074

5,837

437

6,274

Profit for the period

6,674

6,674

55

6,729

Other comprehensive income

(15)

(82)

1

(96)

(11)

(107)

Comprehensive income for the period

(15)

(82)

6,675

6,578

44

6,622

Dividend

5

191

(586)

(390)

(57)

(447)

Equity-settled transactions

32

32

32

Issue of common shares

2

(2)

Acquisitions and divestments

(223)

(223)

(220)

(443)

Balance at December 31, 2018

512

958

(608)

10,972

11,834

204

12,038

Shareholders’ equity

Shareholders’ equity increased from €5.9 billion at year-end 2017 to €11.8 billion at the end of December 31, 2018, mainly due to the net effect of:

  • Net income of €6,674 million, including net income from discontinued operations of €6,264 million
  • Dividend payments of €390 million
  • Adverse currency effects of €82 million (including taxes)
  • Goodwill related to the buy-out of non-controlling interests of €223 million

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.

Please refer to the financial calendar of this report for dividend payment dates.