Note 17: Group equity
In € |
Authorized |
Subscribed |
|---|---|---|
Priority shares (48 with nominal value of €400) |
19,200 |
19,200 |
Cumulative preferred shares (200 million with nominal value of €2) |
400,000,000 |
– |
Common shares (600 million with nominal value of €2) |
1,200,000,000 |
512,438,602 |
Total |
1,600,019,200 |
512,457,802 |
In € |
Authorized |
Subscribed |
|---|---|---|
Priority shares (48 with nominal value of €400) |
19,200 |
19,200 |
Cumulative preferred shares (200 million with nominal value of €0.50) |
100,000,000 |
– |
Common shares (500 million with nominal value of €0.50) |
250,000,000 |
99,800,166 |
Total |
350,019,200 |
99,819,366 |
Number of shares |
2018 |
2019 |
|---|---|---|
Outstanding at January 1 |
252,620,585 |
256,219,301 |
Issued in connection to performance-related share plan and share-matching plan |
991,928 |
283,370 |
Capital repayment and share consolidation |
– |
(28,468,812) |
Stock dividend |
2,606,788 |
– |
Share repurchase |
– |
(31,599,495) |
Add back of repurchased shares not yet cancelled |
– |
3,165,967 |
Balance at December 31 |
256,219,301 |
199,600,331 |
Number of shares |
2018 |
2019 |
|---|---|---|
Weighted average number of common shares |
254,873,298 |
213,074,002 |
For further details on weighted average number of shares, refer to Note 9.
Subscribed share capital
For further details on subscribed share capital, refer to Note F in the Company financial statements.
Other components of Shareholders’ equity
Changes in fair value of derivatives comprise the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to hedged transactions that have not yet occurred.
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 consist of the performance-related and restricted share plan and share-matching plan, whereby shares are granted to the Board of Management, Executive Committee and other executives. For details of the share-based compensation, refer to Note 6.
Non-controlling interests
None of the non-controlling interests are considered individually material to the group.
|
|
|
2018 |
|
2019 |
|---|---|---|---|---|---|
Group entity |
Partner at year-end 2018 |
% |
Equity stake in € millions |
% |
Equity stake in € millions |
Akzo Nobel India Limited, Kolkata, India |
Privately held, India |
25.24 |
49 |
25.24 |
53 |
PT ICI Paints Indonesia, Jakarta, Indonesia |
PT DWI Satrya Utama, Indonesia |
45.00 |
22 |
45.00 |
25 |
Akzo Nobel Paints (Malaysia) Sdn. Bhd., Kuala Lumpur, Malaysia |
Privately held, Malaysia |
40.05 |
24 |
40.05 |
23 |
Akzo Nobel Kemipol A.S., Izmir, Turkey |
Privately held, Turkey |
49.00 |
16 |
49.00 |
17 |
International Paint (Korea) Ltd, Busan, South-Korea |
Noroo Holdings, South Korea |
40.00 |
16 |
40.00 |
16 |
International Paints Saudi Arabia, Saudi Arabia |
Yousuf Bin Ahmed Kanoo Co. Ltd, Saudi Arabia |
40.00 |
15 |
40.00 |
15 |
Akzo Nobel Oman SAOC, Muscat, Oman |
Omar Zawawi establishment LLC, Oman |
50.00 |
11 |
50.00 |
11 |
International Paints of Shanghai Co. Ltd, Shanghai, China |
Huayi Fine Chemical Co. Ltd, China; China National Shipbuilding Equipment & Materials Corp. |
49.00 |
6 |
49.00 |
10 |
Akzo Nobel Pakistan Limited, Karachi, Pakistan |
Privately held, Pakistan |
24.19 |
10 |
24.19 |
9 |
Akzo Nobel UAE Paints LLC, United Arab Emirates |
Kanoo Group, United Arab Emirates |
40.00 |
9 |
40.00 |
9 |
Akzo Nobel Paints (Guangzhou) Limited, Guangzhou, China |
Industrial Development Co. Ltd of Guanzhou, China |
10.00 |
6 |
10.00 |
5 |
Others |
|
|
20 |
|
25 |
Total |
|
|
204 |
|
218 |
Dividend
Our dividend policy is to pay a stable to rising dividend.
In 2019, an interim dividend of €0.41 (2018: €0.37) per common share was paid. We propose a 2019 final dividend of €1.49 (2018: €1.43) per common share, which would equal a total 2019 dividend of €1.90 (2018: €1.80).
In line with our announcement on April 19, 2017, we have returned 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 distributed €1.0 billion by means of a special cash dividend of €4.50 per common share (post consolidation) on February 25, 2019, in addition to the €1.0 billion special cash dividend already distributed in December 2017.
The share buyback program to repurchase common shares up to the value of €2.5 billion was completed at the end of 2019, acquiring 31.2 million common shares.
On October 23, 2019, a new €500 million share buyback program was announced, for which 0.4 million common shares were acquired in 2019.