Note 18: Group equity

Subscribed share capital

For further details on subscribed share capital, refer to Note F in the Company financial statements.

Cumulative translation reserves

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

Equity-settled transactions consist of the performance related and restricted share plan and share-matching plan, whereby shares are granted to the Board of Management, Executive Committee, other executives and certain other employee categories. For details on share-based compensation, refer to Note 7.

Dividend

Our dividend policy is to pay a stable to rising dividend. In 2021, an interim dividend of €0.44 (2020: €0.43) per common share was paid. We propose a 2021 final dividend of €1.54 (2020: €1.52) per common share, which would equal a total 2021 dividend of €1.98 (2020: €1.95).

Share buybacks

On October 23, 2019, a €500 million share buyback program was announced, for which 0.4 million common shares were acquired in 2019 and 6.2 million shares in 2020, which have all been cancelled. On October 21, 2020, a €300 million share buyback program was announced which was completed in 2021. On February 16, 2021, a €1 billion share buyback program was announced, which was completed in January 2022. This program started in April 2021. As at December 31, 2021, a total of 8.6 million shares had been acquired under this program, of which 5.9 million were cancelled.

During 2021, 11,992,059 common shares were repurchased, of which 9,247,849 shares (2020: 9,331,481) were cancelled. For further details on weighted average number of shares, refer to Note 10.

Non-controlling interests

None of the non-controlling interests are considered individually material to the group. The effects of all transactions with non-controlling interest shareholders are recorded in equity if there is no change in control.