Annual report 2012

25. Equity and reserves

Equity and reserves

EUR thousand 31 Dec 2012 31 Dec 2011
Called-up capital 272,721 272,721
Capital surplus 139,108 137,609
Revenue reserves 254,021 229,309
Legal reserves 51,619 51,663
Reserves for own shares and interests 3,671 3,671
Own shares and interests -3,671 -3,671
Statutory reserves 55,269 54,854
Other revenue reserves 147,133 122,792
Retained earnings or losses 79,379 103,699
Retained earnings or losses from previous periods 60,166 80,356
Profit or loss for the period 19,213 23,343
Revaluation reserves for property, plant and equipment 70,642 73,846
Revaluation reserves for financial instruments 611 187
Translation reserve -1,765 -2,096
Total equity and reserves 814,717 815,275


Called-up capital

Authorised, issued and fully paid-up capital amounts to EUR 272,721 thousand and is divided into 6,535,478 ordinary no-par value shares.


Ownership structure as at 31 December 2012

Shareholder No. of shares Share (%)
Republic of Slovenia 4,087,569 62.54
Individual shareholders 694,347 10.62
Individual shareholders 599,742 9.18
Kapitalska družba, d. d. 365,175 5.59
Foreign corporations 321,788 4.92
Slovenska odškodninska družba 277,839 4.25
Banks 66,906 1.02
Mutual and other funds 66,037 1.02
Telekom Slovenije (own shares) 30,000 0.46
Insurance companies 10,970 0.17
BPH (Brokerage houses) 8,046 0.12
Investment agencies and management fund companies 7,059 0.11
Total 6,535,478 100.00

The balances and changes in equity are illustrated in the Statement of Changes in Equity. The number of issued shares did not change in the reporting period.


Reserves

Reserves were initially created in accordance with provisions of the Ownership Transformation of Companies Act, whilst in recent years reserves have been formed pursuant to the resolution of the Management Board. In compliance with the Companies Act, the Management Board is authorised to appropriate one half of the profit for the period to reserves.


Capital surplus

Surplus paid-up capital arising from ownership transformation in the amount of EUR 130,118 thousand, and transfer of the tax-free portion of revaluation reserves for property, plant and equipment in the amount of EUR 8,990 thousand are included in the capital surplus. The capital surplus can be used for purposes specified in the Company’s act and are not distributable.


Revenue reserves

Reserves for own shares are formed in the amount paid for these shares. These reserves are not distributable. The Group has not acquired any additional own shares in 2012.

As at 31 December 2012, the Company recorded 30,000 own shares representing 0.46% of equity and totalling to EUR 3,671 thousand. The number of own shares has not changed since their acquisition in 2003. The Group may acquire own shares for purposes as defined by the law.

Statutory reserves can be used for purposes specified in the Company’s act. These reserves are not distributable.

While compiling the Annual Report, the Group can form other revenue reserves up to 50% of the net profit for the year, less amounts used for statutory or legal reserves. Other revenue reserves can be used for any purpose in accordance with the law, the Company's acts and Articles of Association, business policy and resolutions adopted by the General Meeting of Shareholders.


Retained earnings or losses

Retained earnings include retained net profit from previous periods and net profit for 2012.

According to the resolution of the General Meeting of Shareholders held on 21 June 2012, the accumulated profit of 2011 in the amount of EUR 119,698 thousand was used for dividend payout in the amount of EUR 45,538 thousand (2011: EUR 22,118 thousand) i.e. EUR 7.00 per share (2011: EUR 3.40), while the remaining EUR 74,160 thousand was appropriated to retained earnings.


Proposed dividend for 2012

Amount of interim dividend paid: EUR 24,070,268.60

Interim dividend per ordinary shares: EUR 3.70

Amount of dividend paid: EUR 9,497,997.88

Dividend per ordinary share: EUR 1.46

Pursuant to the call at the 23rd General Meeting of Shareholders, the Management Board and the Supervisory Board adopted a resolution on the payment of interim dividends in the amount of EUR 3.70 per share.


Revaluation reserves for property, plant and equipment

Change in revaluation reserves for fair value of property, plant and equipment in 2012

EUR thousand Land and buildings Cable lines Total
Balance at 1 Jan 2012 34,684 39,162 73,846
Revaluation of land and building (increase) 586 0 586
Revaluation of land and building (decrease) -2,890 0 -2,890
Deferred taxes 345 0 345
Transfer to retained earnings -239 -1,966 -2,205
Transfer to capital surplus -1,017 -482 -1,499
Change of tax rate 486 1,926 2,412
Other 47 0 47
Balance at 31 December 2012 32,002 38,640 70,642


Change in revaluation reserves for fair value of property, plant and equipment in 2011

EUR thousand Land and buildings Cable lines Total
Balance at 1 Jan 2011 35,016 41,497 76,513
Transfer to retained earnings -146 -1,853 -1,999
Transfer to capital surplus -949 -482 -1,431
Other 763 0 763
Balance at 31 Dec 2011 34,684 39,162 73,846

In 2012, revaluation reserves for property, plant and equipment decreased by EUR 3,704 thousand as follows: EUR 2,205 thousand was transferred from revaluation reserves to retained earnings on account of additional depreciation of property, plant and equipment, while a further EUR 1,499 thousand was transferred from revaluation reserves to capital reserves on account of the revaluation of property, plant and equipment.

An increase in the amount of EUR 2,412 thousand relates to the calculation of deferred tax liability as a result of the lower tax rate.

Revaluation reserves decreased on the account of the revaluation of land and buildings to fair value in the amount of EUR 2,890 thousand, and increased by EUR 586 thousand as a result of the reversal of deferred tax liability, and increased by EUR 345 thousand due to the reversal of deferred tax liability. Revaluation reserves are not distributable.


Revaluation reserves for financial instruments

Revaluation reserves for financial instruments include the revaluation of investments held for sale in the amount of EUR 611 thousand. 


Change in revaluation reserves for fair value of investments held for sale

EUR thousand 2012 2011
Balance at 1 January 187 2,117
Revaluation of investments held for sale (increase in value) 405 0
Revaluation of investments held for sale (impairment) -371 -2,182
Deferred taxes -5 436
Change of tax rate 34 0
Other 361 -184
Balance at 31 December 2012 611 187


Translation reserve

The translation reserve derives from foreign currency differences arising upon consolidation of financial statements of subsidiaries. In 2012, the translation reserve increased by EUR 332 thousand.