17 Equity
 
2007
2006
 
 
 
Balance at 1 January
5,855
5,568
 
 
 
Net profit
434
552
Exchange differences, net of income tax expense
(144)
(133)
Net actuarial gains/(losses) on defined benefit obligations
154
290
Net asset ceiling related to defined benefit obligations
(46)
(7)
Dividend paid
(195)
(214)
Repurchase of ordinary shares
(758)
(318)
Proceeds from reissue of ordinary shares
53
55
Other changes
30
62
 
 
 
Balance at 31 December
5,383
5,855
After the balance sheet date the following dividends were declared by the Managing Board:
 
2007
2006
 
 
 
Per cumulative preference share A: €0.23 (2006: €0.23)
10
10
Per ordinary share: €1.20 (2006: €1.00)
204
187
 
 
 
Total
214
197
The proposed dividend on ordinary shares is subject to approval by the Annual General Meeting of Shareholders and has not been deducted from equity.
Share capital
On 31 December 2007 the authorized capital amounted to €1,125 million, distributed over 306,960,000 ordinary shares, 44,040,000 cumulative preference shares A and 375,000,000 cumulative preference shares B with a nominal value of €1.50 each, and 1,200,000,000 cumulative preference shares C with a nominal value of €0.03 each. Every nominal amount of three eurocents (€0.03) carries one vote. The changes in the number of shares in 2007 are shown in the table below.
 
Issued shares
Treasury shares
 
Ordinary
Cumprefs A
Cumprefs C
Ordinary
Cumprefs C
 
 
 
 
 
 
Balance at 1 January 2007
201,953,008
44,040,000
37,500,000
17,103,171
37,500,000
Reissue of shares in connection with exercise of option rights
-
-
-
(2,730,031)
-
Repurchase of own shares
-
-
-
20,683,008
-
Cancellation of own shares
(20,528,008)
-
-
(20,528,008)
-
 
 
 
 
 
 
Balance at 31 December 2007
181,425,000
44,040,000
37,500,000
14,528,140
37,500,000
Number of treasury shares at 31 December 2007
14,528,140
-
37,500,000
 
 
 
 
 
 
Number of shares outstanding at
31 December 2007
166,896,860
44,040,000
-
The average number of ordinary shares outstanding in 2007 was 178,540,706. All shares issued are fully paid.
Share premium
Of the total Share premium of €489 million, an amount of €125 million can be regarded as entirely free of tax.
Treasury shares
On 31 December 2006 DSM possessed 17,103,171 ordinary shares (nominal value €26 million, 6.9% of the share capital). In 2007, DSM used 2,730,031 ordinary shares for servicing option rights.
On 31 December 2007 DSM possessed 14,528,140 ordinary shares (nominal value €22 million, 6.4% of the share capital). The average purchase price of the ordinary treasury shares was €31.80. In 2007, 20.7 million ordinary treasury shares were repurchased as part of the first and second phase of the share buy-back program of Vision 2010. A total of 20.5 million of the shares bought back related to the Vision 2010 progam were cancelled in 2007. The number of treasury shares at 31 December 2007 included 6.9 million shares related to the share buy-back program of Vision 2010. The remaining ordinary treasury shares will be used for servicing management and personnel share-option rights.
Other reserves in Shareholder's equity
 
Total
Translation
reserve
Hedgingreserve
Reserve for
share-based
compensation
Fair value
reserve
 
 
 
 
 
 
Balance at 1 January 2006
85
77
(3)
11
0
 
 
 
 
 
 
Fair-value changes of cash flow hedges
37
-
37
-
-
Exchange differences, net of income tax
(128)
(128)
-
-
-
Changes in option rights
10
-
-
10
-
Reclassifications
(2)
(2)
-
-
-
 
 
 
 
 
 
Balance at 31 December 2006
2
(53)
34
21
0
 
 
 
 
 
 
Fair-value changes of cash flow hedges
14
-
14
-
-
Fair-value changes of other financial assets
(9)
-
-
-
(9)
Exchange differences, net of income tax
(140)
(140)
-
-
-
Options and performance shares granted
11
-
-
11
-
Options and performance shares exercised/cancelled
(4)
-
-
(4)
-
Reclassifications
3
-
-
3
-
 
 
 
 
 
 
Balance at 31 December 2007
(123)
(193)
48
31
(9)