Balance Sheet Disclosures


The changes in equity are presented in the statement of changes in equity. The co-operative shares in RZF are shown as debt capital under financial liabilities. The changes in this item between reporting dates are explained in note 35 "Other Financial Liabilities".

Subscribed Capital

As in the previous year, the subscribed capital of RZAG is divided into 1,512,000 registered no-par-value shares with restricted transferability; it amounted to 38.7 million euros as at the balance sheet date. The subscribed capital is fully paid up. Each share carries one vote.

Capital Reserves

The capital reserves relate to the premiums from the capital increases RZAG implemented in 1987 and 1990.

Retained Earnings

Retained earnings include the legal reserves, other revenue reserves, the unappropriated profit, the reserve for pension obligations, the reserve for gains and losses from the remeasurement of equity instruments and the reserves from adjustment entries made for the transition from local GAAP to IFRS accounting. In accordance with IFRS 9, the reserve for changes in the fair value of equity instruments was reported for the first time in the financial year. A total of 661.8 million euros (previous year: 612.6 million euros) of retained earnings is attributable to the legal reserve of RZF and 38.7 million euros (previous year: 38.7 million euros) to the legal reserve of RZAG. These amounts are not eligible for distribution as dividends.

The other change in retained earnings is due primarily to the net income generated in the financial year amounting to 429.3 million euros (previous year: 342.3 million euros), which is attributable to the shareholders of the parent companies, the result of 17.8 million euros from the remeasurement of defined benefit pension commitments including the corresponding deferred taxes (previous year: loss of 10.6 million euros), the change in fair value of equity instruments amounting to -8.8 million euros and a dividend distribution of 29.3 million euros (previous year: 4.9 million euros). Further effects resulted from the changes in the scope of consolidation amounting to -0.1 million euros (previous year: 0.9 million euros). In addition, retained earnings also changed by 6.0 million euros (previous year: -2.2 million euros) as a result of the acquisition of shares from other shareholders.

Other Reserves

The statement of comprehensive income shows how changes in these reserves impact on profit or loss.

The reserve for cash flow hedges includes the measurement gains or losses on cash flow hedges taken directly to equity, which are discussed in note 40 "Financial Risk Management".

The costs of hedging reserve includes the change in the fair values of forward elements as well as the foreign currency basis spread of forward contracts as hedging expenses.

The reserve for financial instruments measured at fair value through other comprehensive income includes the effects from the change of financial instruments, for which the option to recognised the change in equity was exercised and for which the changes in subsequent periods are recognised through profit or loss.

The revaluation reserve results from after-tax remeasurement gains or losses, taken directly to equity, on shares held before control was obtained in companies acquired in stages. If such companies are sold, the revaluation reserve is reclassified directly to retained earnings; otherwise it is transferred to retained earnings on a pro rata basis.

The reserve for currency translation differences is the result of translating other currencies into euros (see note 6 "Currency Translation").

The reserve for income components of equity-accounted companies recognised directly in equity contains the accumulated other comprehensive income of associates and joint ventures.

The deferred tax reserve includes the accumulated deferred taxes recognised in equity on the items recognised in other reserves, as explained above.

Treasury Shares

Treasury shares relate to shares in RZAG that are directly or indirectly held by RZF companies.

Non-Controlling Interests

Non-controlling interests comprise third-party interests in the equity of consolidated subsidiaries. They amounted to 110.1 million euros as at 31 December 2018 (previous year: 147.4 million euros).

Changes in the scope of consolidation included the non-controlling interests relating to the first-time consolidation of UAB Palink.

The changes in non-controlling interests between reporting dates are detailed in the statement of changes in equity.

Appropriation of Profits

The Management Board and the Supervisory Board of RZAG will propose to the Annual General Meeting on 29 June 2019 to allocate 16.6 million euros to retained earnings and to carry forward 16.6 million euros to a new account. A distribution of 24.00 euros per share was made in the year under review.

After the payment of interest on the co-operative shares and the statutory allocation of 21.6 million euros (previous year: 11.8 million euros) to legal reserves, RZF's unappropriated commercial law profit amounted to 122.6 million euros in the 2018 financial year (previous year: 66.8 million euros). The Management Board and Supervisory Board of RZF will propose to the general meeting on 30 June 2019 to allocate from this profit an amount of 50.5 million euros (previous year: 27.5 million euros) to legal reserves and an amount of 72.1 million euros (previous year: 39.3 million euros) to other revenue reserves.