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Note 16. Shareholders' equity
€ million Share
capital
Share
premium
Contingency fund Reserve of
invested
non-
restricted
equity
Retained earnings Total
equity
Balance as at 1 January 2015 197.3 197.5 243.4 22.8 818.0 1,478.9
Dividends -148.7 -148.7
Treasury shares 4.7 4.7
Transfer to donations -0.3 -0.3
Profit for the year 161.8 161.8
Balance as at 31 December 2015 197.3 197.5 243.4 22.8 835.5 1,496.5
Dividends -248.2 -248.2
Treasury shares 5.0 5.0
Transfer to donations -0.3 -0.3
Profit for the year 147.9 147.9
Balance as at 31 December 2016 197.3 197.5 243.4 22.8 740.0 1,400.9
Calculation of distributable profits 2016 2015
Other reserves 266.2 266.2
Retained earnings 592.1 673.7
Profit for the year 147.9 161.8
Total 1,006.2 1,101.7
Breakdown of parent company shares Pcs
A shares 31,737,007
B shares 68,282,745
Total 100,019,752
Votes attached to shares Number
of votes
A share 10
B share 1
Board's authorisations to acquire and issue own shares
The Annual General Meeting held on 4 April 2016 approved the Board's proposal for its authorisation to decide on the acquisition of a maximum of 1,000,000 own B shares of the Company. The authorisation is valid until 30 September 2017. The Board has the authority, granted by the Annual General Meeting of 13 April 2015 and valid until 30 June 2018, to issue a total maximum of 20,000,000 new B shares. Kesko's Annual General Meeting held on 4 April 2016 also authorised the Company's Board to make decisions concerning the transfer of a total maximum of 1,000,000 own B shares held by the Company as treasury shares. The authorisation is valid until 30 June 2020.
Treasury shares
Authorised by the General Meeting, the Board of Directors acquired a total of 700,000 own B shares (purchase price €23.7 million) in the financial year 2011 and a total of 500,000 own B shares (purchase price €16.1 million) in the financial year 2014. The total prices paid for the shares have been deducted from retained earnings in equity. The shares are held by the Company as treasury shares and the Company Board is entitled to transfer them. Based on the authorisations to issue own shares and the fulfilment of the vesting criteria of the 2014 vesting period of Kesko's share-based compensation plans, the Board granted a total of 120,022 own shares held by the Company as treasury shares, and based on the fulfilment of the 2015 vesting period, a total of 139,724 own shares held by the Company as treasury shares to the persons included in the target groups of the vesting periods. The transfers of treasury shares were announced in a stock exchange release on 1 April 2015, 7 April 2015, 17 March 2016 and 27 April 2016. During the financial year, a total of 8,256 shares already granted were returned to the Company in accordance with the terms and conditions of the share-based compensation plan. At the end of the financial year, the Company held 746,109 (877,577) own B shares as treasury shares. The €23.5 million (€27.5 million) acquisition cost of these shares has been deducted from retained earnings in equity.