32. Shareholders' equity

Changes in Group shareholders’ equity are shown in the statement of changes in shareholders’ equity.

Capital management at the Nordzucker Group is founded on a strong equity base and a sustainable dividend policy in order to secure current operations on the one hand and to enable a reasonable dividend yield for the shareholders on the other. As of 28 February 2014, the equity ratio came to 59 per cent (previous year: 54 per cent). The Executive Board will put a proposal at the Annual General Meeting to distribute a dividend of EUR 1.30 per share (previous year: EUR 1.80 per share).

Nordzucker AG’s Articles of Association do not require any particular amount of equity. The Executive Board manages the Group with the aim of generating a profit. It does this by means of capital market related targets for the company which are measured in terms of specific financial indicators. The main financial indicators for the Group are total operating profitability, return on sales, equity ratio and return on equity, for which targets have been set.

32.1. Subscribed capital

As of 28 February 2014, subscribed capital (ordinary share capital) remained unchanged at EUR 123,651,328.00 and was divided into 48,301,300 registered common shares.

The ordinary share capital is fully paid in and, as in the previous year, has a nominal share of subscribed capital of EUR 2.56 per share.

At the end of the reporting period, Nordzucker Holding AG, Braunschweig, Germany, had provided evidence that it held more than 50 per cent of the shares, with 84.06 per cent.

32.2. Capital reserves

The capital reserves have been formed from share premiums paid in the course of capital increases by Nordzucker AG.

32.3. Retained earnings

Retained earnings are made up of the net income earned in prior financial years and the current period by the companies included in the consolidated financial statements. Goodwill arising on acquisitions made by the Group before 1 March 2004 has been offset against reserves. In the IFRS opening balance sheet the balancing item from the conversion of financial statements prepared in foreign currencies was offset against retained earnings.

Retained earnings include statutory reserves of 10 per cent of subscribed capital, amounting to EUR 12,365 thousand which, in line with statutory regulations (Sec. 150 AktG [German Stock Corporation Act]), are not available for distribution to shareholders.

32.4. Other comprehensive income

Other comprehensive income is made up as follows:

Other comprehensive income
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in EUR thousands

28/2/2014

28/2/2013

Remeasurements of defined benefit plans

–36,438

–35,073

Exchange differences on translating foreign operations

45,450

58,004

Net result of cash flow hedges

–484

897

Balance sheet amount

8,528

23,828

32.5. Non-controlling interests

Non-controlling interests exist primarily in the following companies:

Non-controlling interests
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in EUR thousands

28/2/2014

28/2/2013

Sucros Oy

30,565

29,844

AB Nordic Sugar Kèdainiai

14,220

16,929

Norddeutsche Flüssigzucker GmbH & Co. KG

2,741

2,174

Považský cukor a.s.

1,735

2,272

Cukrownia Melno S.A. i.L.

208

210

Other companies

126

167

Balance sheet amount

49,595

51,596