23. Equity

The share capital amounts to € 115,089,210.88 and is divided into 44,956,723 no-par-value bearer shares, each with a notional interest of € 2.56. The share capital is fully paid in.

The Executive Board is empowered, subject to the approval of the Supervisory Board, to increase the share capital by March 2, 2016 by up to € 57,544,604.16 by issuing new shares once or in several installments for a cash contribution or a contribution in kind.

The share capital has been conditionally increased by up to € 52,313,277.44 by issuing up to 20,434,874 new no-par-value bearer shares with a proportionate notional amount per share of € 2.56 of the share capital (conditional capital increase). It will be used to grant shares to the holders of bonds with warrants and/or convertible bonds and participation rights and/or participating bonds that can be issued by February 28, 2017.

Generated group equity comprises consolidated net income, the revenue reserves of all group companies, the accumulated unappropriated earnings of the subsidiaries since their initial consolidation and the accumulated amounts resulting from consolidation adjustments recognized in profit or loss. In addition, the effects deriving from the remeasurement of the net liability resulting from the defined benefit pensions plans (after taxes), which are recorded directly in equity, are also included.

The legal reserve of € 6,391 thousand, which is not available for distribution, is also included in this amount. The change in generated group equity from € 1,424,188 thousand as at September 30, 2014 to € 1,523,444 thousand as at September 30, 2015 includes the dividend payment of € 44,957 thousand, effects recognized in equity deriving from the remeasurement of the net liability resulting from the defined benefit pensions plans (after taxes) of € 11,781 thousand and the consolidated net income for fiscal year 2014/15 of € 132,435 thousand.

Changes in accumulated other comprehensive income amounting in total to € – 8,235 thousand (previous year: € – 13,375 thousand), mainly comprise gains and losses of € – 12,189 thousand (previous year: € – 19,131 thousand) deriving from the measurement of derivative financial instruments at market prices in conjunction with cash flow hedges.

The amount transferred during the period from other comprehensive income to the consolidated income statement in conjunction with cash flow hedge accounting is € – 43,576 thousand (previous year: € 1,225 thousand) and is reflected primarily in the cost of materials. € 2,175 thousand, which was reported in the other financial result, was transferred from other comprehensive income to the consolidated income statement in the prior year in connection with the measurement of financial investments at market prices.

The non-controlling interests amounting to € 2,778 thousand (previous year: € 3,069 thousand) comprise the interests of non-group shareholders in the equity of two companies that are fully consolidated by Aurubis AG. As at September 30, 2015, the companies concerned were Deutsche Giessdraht GmbH, Emmerich, and Aurubis Bulgaria AD, Pirdop.

Changes in equity are presented in detail in the consolidated statement of changes in equity.

Proposed appropriation of earnings

The separate financial statements of Aurubis AG, Hamburg, have been prepared in accordance with German GAAP (HGB – German Commercial Code).

   T 070
   
Net income for the year of Aurubis AG € 145,083,390.78
Unappropriated earnings brought forward from the prior year € 42,987,473.73
Allocations to other revenue reserves € 72,500,000.00
Unappropriated earnings € 115,570,864.51

A proposal will be made to the Annual General Meeting that Aurubis AG, Hamburg’s unappropriated earnings of € 115,570,864.51 are used to pay a dividend of € 1.35 per no-par-value share (= € 60,691,576.05) and that € 54,879,288.46 be carried ­forward.

A dividend of € 1.00 per share was paid in fiscal year 2014/15, totaling € 44,956,723.00.

Additional information on capital management

The main purpose of management control is to increase the corporate value of the Aurubis Group, in that a positive contribution to the enterprise as a whole is generated beyond the capital costs. The task of Group Treasury is to provide optimum liquidity and to control the Group’s liquidity to ensure that the balance sheet structure is in equilibrium in the long term. Control and monitoring are carried out on the basis of defined key ratios. Net debt and liquidity are controlled in the medium and short term by means of regular cash flow forecasts.

One of the main key ratios used to determine and compare profitability is ROCE (return on capital employed), which reflects the efficiency with which the capital is utilized in the operating business or for investments. ROCE is defined as the ratio of EBIT (earnings before interest and taxes) to capital employed as at the balance sheet date. Capital employed comprises equity and interest-bearing liabilities, less cash and cash equivalents. In the current fiscal year reported, the Aurubis Group achieved a ROCE of 18.7 % in the past fiscal year, compared with 8.5 % in the prior year, due to the improvement in the operating EBIT (operating EBIT of € 370 million compared with € 167 million in the prior year).

All external requirements under financial covenants were fulfilled in the past fiscal year.