21. Equity

Please refer to the Consolidated statement of changes in equity.

The authorised capital as at both 31 December 2016 and 31 December 2015 consisted of 4 million ordinary shares with a nominal value of €453.78 (originally NLG 1,000). There are 2,230,738 shares that are issued and fully paid up. All issued shares are held by the State of the Netherlands. The shareholders are entitled to a dividend, as annually declared, based on the resolution of the General Meeting of Shareholders regarding the appropriation of the profit. The shareholders have the right to cast one vote per share at meetings of the company.

The financial statements for 2015 and the profit appropriation were determined in the shareholders’ meeting of 3 March 2016. In accordance with the proposal, the profit of €118 million over the reporting period plus a sum of €77 million were allocated to the reserves and a sum of €41 million was paid out as a dividend.

The movements in the other reserves were as follows:

(in millions of euros)

Translation reserve

Hedging reserve

Fair value reserve

Actuarial reserve

Revaluation reserve for associates

Total other reserves

Balance as at 1 January 2015








Other comprehensive income








Revised balance as at 31 December 2015








Other comprehensive income








Balance as at 31 December 2016







Translation reserve

This reserve covers all foreign exchange differences arising as a result of the conversion of the financial statements of foreign operations, as well as the conversion of liabilities hedging the company's net investment in an international group company.

Hedging reserve

The hedging reserve consists of the cumulative change in the fair value of hedging instruments if the hedged transaction has not yet taken place or the hedged position has not yet been settled.

Fair value reserve

The fair value reserve consists of the cumulative change in the fair value of investments available for sale until such time as the investment is no longer accounted for in the balance sheet.

Actuarial reserve

The actuarial reserve refers to the actuarial gains and losses, which comprise the difference between the actual and anticipated changes in the pension liabilities and investment returns on pension assets.

Revaluation reserve for associates

The revaluation reserve for associates comprises the cumulative non-realised results, recognised directly in associates’ equity in accordance with the equity method. The change in 2016 is related to changes in the hedging reserve and actuarial reserve recognised by these associates.

General reserve

The recognition in equity is after deduction of taxes.

Profit appropriation as stipulated by the Articles of Association

In accordance with Article 21 paragraph 2 of the Articles of Association of NV Nederlandse Spoorwegen, the Annual General Meeting of Shareholders decides on the appropriation of any positive balance in the income statement.

Profit appropriation proposal

A proposal will be put to the meeting to add €212 million of the net profit of €133.3 million to the general reserves, consisted of €74 million of regular dividend and €4.7 million as a consequence of a agreement from the past.