Balance at 1 January
Exchange differences, net of income tax
Net actuarial gains/(losses) on defined benefit obligations
Repurchase of shares
Proceeds from reissue of ordinary shares
Balance at 31 December
For details see the consolidated statement of changes in equity (Note 16) and Consolidated statement of changes in equity (Note 16).
In Shareholders' equity, an amount of €530 million (2015: €314 million) is included for Translation reserve,-€207 million (2015: -€203 million) for Hedging reserve, €8 million (2015: -€3 million) for Fair value reserve and -€100 million(2015: -€86 million) for intangible assets related to product development projects.
In addition, a legal reserve of €120 million (2015: €111 million) is recognized for profits that cannot be distributed and received in the Netherlands.
According to article 32 of the Articles of Association of Koninklijke DSM N.V. and with the approval of the Supervisory Board, every year the Managing Board determines the portion of the net profit to be appropriated to the reserves. For the year 2016 the net profit is €621 million and the amount to be appropriated to the reserves has been established at €311 million. From the subsequent balance of the net profit of €310 million, dividend is first distributed on the cumulative preference shares B. At the end of 2016 no cumprefs B were in issue. Subsequently, a 1.759% dividend is distributed on the cumulative preference shares A, based on a share price of €5.29 per cumulative preference share A. For 2016 this distribution amounts to €0.09 per share, which is €4 million in total. An interim dividend of €0.03 per cumulative preference share A having been paid in August 2016, the final dividend will then amount to €0.06 per cumulative preference share A.
The profit remaining after distribution of these dividends on the cumulative preference shares A (€617 million) will be put at the disposal of the Annual General Meeting of Shareholders in accordance with the provisions of Article 32, section 5 of the Articles of Association.
The Managing Board proposes a dividend on ordinary shares outstanding for the year 2016 of €1.75 per share. With an interim dividend of €0.55 per ordinary share having been paid in August 2016, the final dividend would then amount to €1.20 per ordinary share.
If the Annual General Meeting of Shareholders makes a decision in accordance with the proposal, the net profit will be appropriated as follows:
- To be added to / paid from the reserves
- Dividend on cumprefs A
- Interim dividend on ordinary shares
- Final dividend distributable on ordinary shares