More details about treasury shares can be found in the
subsequent note on “Treasury shares”.
Share premium reserve
This amounts to Euro 485,496 thousand at 31 December 2012,
reporting an increase of Euro 524 thousand since 31 December
2011, due to the exercise of 115,300 options under the stock
option plan described in Note 15. Personnel costs.
Capital increase costs
This reserve, which amounts to a post-tax negative Euro
3,982 thousand at 31 December 2012, relates to the costs
incurred for the capital increase serving the public mixed
exchange and cash offer for the ordinary shares of Draka
Holding N.V., announced on 22 November 2010 and formalised
on 5 January 2011.
Legal reserve
This amounts to Euro 4,288 thousand at 31 December 2012,
and is Euro 647 thousand higher than at 31 December 2011
following apportionment of part of the prior year’s net profit,
as approved by the shareholders on 18 April 2012.
Treasury shares reserve
This reserve amounts to Euro 30,179 thousand at 31 December
2012, in compliance with the legal limit (art. 2357-ter of
the Italian Civil Code). It was formed during 2008 after
the shareholders adopted a resolution on 15 April 2008
authorising a programme to buy back up to 10% of the
Company’s shares. Under this resolution, purchases and
sales of shares had to meet the following conditions: (i) the
minimum price could be no more than 10% below the stock’s
official price reported in the trading session on the day before
carrying out each individual purchase transaction; (ii) the
maximum price could be no more than 10% above the stock’s
official price reported in the trading session on the day before
carrying out each individual purchase transaction; (iii) the
maximum number of shares purchased per day could not
exceed 25% of the average daily volume of trades in Prysmian
shares on the Milan Stock Exchange in the 20 trading days
prior to the purchase date; (iv) the purchase price could not be
greater than the higher of the price of the last independent
transaction and the highest independent bid price currently
quoted on the market. On 7 October 2008, the Board of
Directors subsequently granted the Chief Executive Officer
and Chief Financial Officer separate powers to purchase up to
4 million of the Company’s shares by 31 December 2008. At
that date a total of 3,028,500 shares had been bought back
for Euro 30.2 million.
On 9 April 2009, the shareholders renewed the authorisation
to buy and dispose of treasury shares, while cancelling
the previous resolution adopted on 15 April 2008. The
authorisation permitted the purchase of shares representing
no more than 10% of the Company’s share capital at any
time, including any treasury shares already held by the
Company. Purchases could not exceed the amount of
undistributed earnings and distributable reserves reported
in the most recently approved annual financial statements.
The programme was to last for a maximum of 18 months
commencing from the date of the shareholders’ approval and
therefore expired on 9 October 2010.
Extraordinary reserve
This reserve amounts to Euro 52,688 thousand at 31
December 2012 and was formed following the apportionment
of net profit for 2006, as approved by the shareholders on 28
February 2007.
IAS/IFRS first-time adoption reserve
This reserve was created in accordance with IFRS 1 and
reflects the differences arising on first-time adoption of IAS/
IFRS.
It amounts to Euro 30,177 thousand at 31 December 2012, the
same as at 31 December 2011.
Stock option reserve
This reserve amounts to Euro 25,975 thousand at 31 December
2012, reporting a net increase of Euro 17,511 thousand since 31
December 2011 due to:
• the total cost of Euro 5,557 thousand recognised in the
income statement during the year (Euro 2,503 thousand
in 2011), for stock option plans involving Prysmian S.p.A.
shares;
• the credit of Euro 11,019 thousand recognised for
subsidiaries, which directly or indirectly employ managers
of other Group companies who are beneficiaries of stock
option plans involving Prysmian S.p.A. shares;
• an increase of Euro 935 thousand in the carrying amount
of investments in subsidiaries, whose managers are
beneficiaries of stock option plans involving Prysmian
S.p.A. shares.
Further information can be found in Note 15. Personnel costs.
Treasury shares
The book value of treasury shares is Euro 30,179 thousand
at 31 December 2012 and refers to 3,028,500 ordinary shares
acquired under the share buy-back programme described
earlier.
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