Note 27
Notes relating to equity
During the reporting period, the share capital was increased seven times as a result of share subscriptions with the stock options
of the year 2003 option scheme. The increases were made on 11 February 2008 (€210), 28 April 2008 (€38,168), 9 June 2008 (€42,200),
28 July 2008 (€8,600), 1 October 2008 (€4,000), 27 October 2008 (€6,000) and 18 December 2008 (€15,000), and announced in stock
exchange notifications on the same days. The subscribed shares were included on the main list of the Helsinki Stock Exchange for
public trading with the old B shares on 12 February 2008, 29 April 2008, 10 June 2008, 29 July 2008, 2 October 2008, 28 October
2008, and 19 December 2008.
All issued shares have been fully paid. The maximum number of A shares is 250 million and the maximum number of B shares is
also 250 million, provided that the total number of shares is at maximum 400 million. One A share entitles the holder to 10 votes
and one B share to 1 vote.
An analysis of share-based payments is given in note 37.
Dividends
After the balance sheet date, the Board has proposed that €1.00 per share be distributed as dividends.
Equity and reserves
Restricted and non-restricted equity
Restricted equity is made up of share capital and share premium, and non-restricted equity is made up of other reserves, asset revaluation reserve and retained earnings. Non-restricted equity also includes the accumulated depreciation difference and untaxed reserves less deferred tax liabilities.
Share premium
The amount exceeding the par value of shares received by the enterprise in connection with share subscription, and in some cases amounts not withdrawn from the sale of unregistered shares are recognised in the share premium account. The share premium includes the premium received on exercise of share options.
Other reserves
The other reserves have mainly been created and accumulated as a result of resolutions by the Annual General Meeting.
Revaluation surplus
The revaluation surplus includes the effective portion of fair value based on hedge accounting applied to electricity derivatives and a private placement bond, and the fair value change of available-for-sale financial instruments.
Currency translation differences
Currency translation differences arise from the consolidation of the results of foreign operations. Also gains and losses arising from net investment hedges in foreign entities are included in currency translation differences provided that hedge accounting requirements are fulfilled.
Cash flow hedge result
Hedge accounting is applied to hedging exposure to electricity price risk. As a result, an amount of €5.4 million (€-2.2 million) has
been removed from equity and included in the income statement as purchase cost adjustment, and correspondingly €-12.5 million
(€4.9 million) has been included in equity. Their combined effect on the revaluation surplus for the period was €-17.9 million
(€7.1 million) prior to deferred tax assets recognition.
A fair value change of €5.1 million (€6.6 million) has been recognised in equity for the USD-denominated private placement
arrangement, and €-0.1 million (€-0.1 million) in the financial items of the income statement.