AAK Annual Report 2020

AAK Annual Report 2020 103 Note 20 | Shareholders’ equity Group Share capital As of December 31, 2020, the Group’s registered share capital was 255,413,934 shares (SEK 425,689,890). Reserves Statutory reserve The statutory reserve refers to a reduction of the share capital carried out previously. Hedging reserve The hedging reserve encompasses the effective portion of the accumulated net change in the fair value of a cash flow hedging instrument attributable to hedging transactions yet to take place. Translation reserve Translation reserves include all exchange differences that arise when translating financial statements from foreign operations whose financial statements are stated in currencies other than the Group’s presentation currency. The Parent company and the Group present their financial statements in SEK. Retained profits and profit for the year Retained profits and profit for the year include profits earned and retained by the Parent and subsidiaries, investments in associates, revaluation of the net pension commitment, new share issue, subscription warrants, net effect of acquisition of minority share and profit for the year. Treasury shares The Group owned a total of 0 (0) treasury shares as of December 31, 2020. Specification of equity item “Reserves” Statutory reserve Hedging reserve Translation reserve Total 2019 opening balance 5 - 89 94 Exchange differences - - 402 402 2019 closing balance 5 - 491 496 2020 opening balance 5 - 491 496 Exchange differences - -1 -1,951 -1,952 2020 closing balance 5 -1 -1,460 -1,456 Parent company Share capital In accordance with the articles of association for AAK AB, share capital shall be a minimum of SEK 300 million and a maximum of SEK 1,200 million. All shares are fully paid and entitle the holder to equal voting rights and shares in Company assets. Share capital consists of 255,413,934 shares (253,730,934) at a quota value of SEK 1.67 per share, and shareholder equity of SEK 425,689,890 (422,884,890). Statutory reserve The statutory reserve refers to a reduction of the share capital carried out previously. Retained profit Retained profit includes non-restricted equity from the previous year after any dividend distribution together with the profit for the year. The total non-restricted equity is the amount available for dividends to shareholders. Proposed appropriation of profits In accordance with the Swedish Companies Act, the Board of Directors proposes appro- priation of profits for the consideration and approval of the Annual General Meeting of the Shareholders. The Board of Directors proposes that the disposable profit brought forward SEK 6,135,980,620 and profit/loss for the year SEK -39,231,986 Total SEK 6,096,748,634 be appropriated as follows: To be distributed to shareholders, a dividend of SEK 2.30 per share SEK 587,452,048 To be carried forward SEK 5,509,296,586 Total SEK 6,096,748,634