NOTE 27
| Share capital € million |
Share premium € million |
Total € million |
||||
| Number of shares | ||||||
| Share capital | A | B | Total | |||
| 1 Jan. 2009 | 31,737,007 | 66,087,847 | 97,824,854 | 195.6 | 190.6 | 386.2 |
| Exercise of share options | - | 496,675 | 496,675 | 1.0 | 3.7 | 4.7 |
| 31 Dec. 2009 | 31,737,007 | 66,584,522 | 98,321,529 | 196.6 | 194.2 | 390.8 |
| Exercise of share options | 319,763 | 319,763 | 0.6 | 3.6 | 4.2 | |
| 31 Dec. 2010 | 31,737,007 | 66,904,285 | 98,641,292 | 197.3 | 197.8 | 395.1 |
| Number of votes | 317,370,070 | 66,904,285 | 384,274,355 | |||
During the reporting period, the share capital was increased three times corresponding to share subscriptions made with the options of the 2003 option scheme. The increases were made on 11 February 2010 (€128,424), 3 May 2010 (€422,754) and 3 June 2010 (€88,348) and announced in stock exchange notifications on the same days. The subscribed shares were included on the main list of NASDAQ OMX Helsinki for public trading with the old B shares on 12 February 2010, 4 May 2010 and 4 June 2010.
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 35.
After the balance sheet date, the Board has proposed that €1.30 per share be distributed as dividends. A dividend of €0.90 per share was distributed on the profit for 2009.
Equity consists of share capital, share premium, other reserves, revaluation reserve, currency translation differences and retained earnings. In addition, the portion of accumulated depreciation difference and optional provisions net of deferred tax liabilities are included in equity.
The amount exceeding the par value of shares received by the enterprise in connection with share subscriptions is recorded in share premium in cases where options have been granted under the old Limited Liability Companies Act (29 Sept. 1978/734).
The reserve of invested non-restricted equity includes the other equity-related investments and share subscription prices to the extent not designated to be included in share capital. The payments received from the exercise of options granted under schemes governed by the new Limited Liability Companies Act (21 Jul. 2006/624, effective 1 Sept. 2006) are recorded in full in the reserve of invested non-restricted equity. Shares subscriptions have not been made under the share option schemes governed by the effective companies act.
Other reserves have mainly been created and increased as a result of resolutions by the Annual General Meeting. Other reserves mainly comprise contingency reserves.
Currency translation differences arise from the translation of foreign operations’ financial statements. Also gains and losses arising from net investment hedges in foreign operations are included in currency translation differences, provided they qualify for hedge accounting. The change in the reserve is stated within comprehensive income.
The revaluation reserve includes the change in the fair value of available-for-sale financial instruments and the effective portion of the change in the fair value based on hedge accounting applied to derivatives. Cash flow hedges include electricity derivatives and interest rate derivatives hedging the private placement note interest. The change in the reserve is stated within comprehensive income.
Hedge accounting is applied to hedging exposure to electricity price risk. As a result, the amount of €1.3 million (€-5.0 million) has been removed from equity and included in income statement as purchase cost adjustment, and €19.1 million (€0.3 million) have been recognised in equity. Their combined effect on the revaluation reserve for the year was €17.8 million (€5.3 million) before accounting for deferred tax assets.
A fair value change of €3.0 million (€-9.1 million) has been recognised in equity for the USD-denominated private placement arrangement before accounting for deferred taxes. In addition, a €0.8 million (€-0.1 million) interest expense adjustment for interest rate derivatives has been recognised in the income statement.