The following dividend and repayment of capital were declared and paid by the company:
Repayment of capital 0.00 (0.42) per share, EUR
Dividends 0.50 (0.20) per share, EUR
Description of items in shareholders' equity
Shares and share capital
The total number of SATO Corporation's shares as at 31 December 2016 was 56,783,067 and the number of own shares held was 160,000. On 3 March 2016, the Annual General Meeting authorised the Board of Directors to decide on one or more directed, payable share issues so that the combined total number of own shares held by SATO can be at a maximum of 3,000,000. The Board of Directors may use the directed share issue for acquisition of assets relating to the company’s business operations or to finance or execute company acquisitions. The Board of Directors was authorised to decide on the other terms of the share issue. The authorisation remains in effect until 28 February 2017. Based on the authorisation, SATO's Board of Directors approved a directed share issue for the acquisition of all the shares in SVK Yhtymä Oy. Shareholders of SVK Yhtymä subscribed for a total of 728,763 shares in SATO at a subscription price of EUR 19.53 per share. The new shares subscribed for in the directed share issue were registered with the Finnish Trade Register in April 2016.
Furthermore, the Board of Directors was authorised by the Annual General Meeting on 3 March 2016 to decide on a share issue of a maximum of 5,200,000 new shares, with subscription rights to be given to shareholders in proportion to their existing shareholdings in the Company. The Board of Directors was authorised to decide on the other terms of the share issue. The authorisation remains in effect until 28 February 2017. Based on the authorisation, on 9 May 2016, the Board of Directors of SATO Corporation decided on a rights issue against payment, whereby a maximum of 5,084,184 new SATO Corporation shares were offered to shareholders at a subscription price of EUR 19.53 per share. A total of 5,052,462 shares were subscribed for in the rights issue and they were registered with the Finnish Trade Register in June 2016.
The reserve fund includes the share premium fund.
Fair value reserves
Fair value reserves include change in fair value of financial instruments used in cash flow hedge accounting and fair valuation of available-for-sale financial assets.
Reserve for invested non-restricted equity
Reserve for invested non-restricted equity includes other equity investments and the subscription price of shares, to the extent that it is not recorded in share capital.
After the balance sheet date 31 December 2016, the Board of Directors has proposed that no dividend for the current year shall be distributed (2015: dividend of EUR 0.50 per share).
SATO's retained earnings at the end of period, EUR 1,127.6 (978.1) million, included distribution-restricted capital totalling EUR 206.6 (219.7) million attributable to subsidised, non-profit businesses. The figure includes the share of the change in the fair value reported in the income statement. Part of the group companies are under statutory, non-profit restrictions according to which the company is allowed to distribute only a regulated amount of capital.
Management of capital structure
The aim of SATO's management of capital structure is to support the growth targets and to secure the ability to pay dividend. Another aim is to ensure SATO's prospects of operating in the equity market. SATO's targeted equity ratio measured at fair value is at least 30%. At year-end, SATO's equity ratio measured at fair value was 35.2 (33.3) %. The Board of Directors reviews and assesses SATO's capital structure regularly.
Some of SATOs interest bearing financial agreements include covenants relating to capital structure and profitability. SATO complied with the capital structure and profitability covenants during the reporting period.