Annual report 2010 - plazacenters

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As of December 31, 2010 the expiry date status of tax losses to be carried forward is as follows:
2011 2012 2013 2014 2015 After 2015
Total tax losses carried forward €’000 €’000 €’000 €’000 €’000 €’000
53,378 790 1,168 4,894 6,953 2,532 37,041
Tax losses are mainly generated from operations in Hungary, Romania, Serbia, Latvia and The Netherlands. Tax settlements may be
subjected to inspections by tax authorities. Accordingly, the amounts shown in the financial statements may change at a later date
as a result of the final decision of the tax authorities.
Note 25 – Equity
December 31, December 31,
2010 2009
Number of shares Number of shares
Ordinary shares of par value EUR 0.01 each 1,000,000,000 1,000,000,000
Issued and fully paid:
At the beginning of the year 294,195,700 292,431,381
Exercise of share options 1 2,526,429 1,764,319
At the end of the year 296,722,129 294,195,700
1 In the course of 2009, 2,970,976 vested options were exercised into 1,764,319 shares of EUR 0.01. In the course of 2010, 3,954,541 vested options were exercised into 2,526,429
shares of EUR 0.01.
Capital reserve due to share option plan
Capital reserve is in respect of Employee Share Option Plan (“ESOP”) in the total amount of EUR 31,029 as of December 31, 2010
(2009: EUR 28,467). Regarding the amendment of ESOP and its effect on the capital reserve refer to note 27.
Translation reserve
The translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign
operations in India and in the US.
Dividend policy
The payment of dividends is dependent on the financial performance and condition of the Group, the Company’s financial position and
the capital and anticipated working capital requirements of the Group. The distribution of dividend is based upon the statutory report’s
distributable results and retained earnings of the Company itself.
Subject to mandatory provisions of Dutch laws, the dividend policy will reflect the long-term earnings and cash flow potential of the
Group, taking into account the Group’s capital requirements, while at the same time maintaining an appropriate level of dividend cover.
Treasury shares
The buyback program announced in October 2008 was fully utilized within three months and the 14,500,000 purchased shares were
held in treasury.
On October 9, 2009 the Company placed the 14,500,000 ordinary shares mentioned above with a number of Polish institutional
investors. The shares were sold at a price of 6.5 Polish Zlotys (“PLN”) per share (circa 141 pence), compared to the Warsaw Stock Exchange
closing price on October 9, 2009 of 6.6 PLN per share (circa 143 pence).
The Company received a total gross consideration of circa GBP 20.5 million (EUR 21.9 million) on disposal, representing a gross economic
(not accounting) gain of circa GBP 12.8 million (circa EUR 13.8 million). For accounting purposes the excess of amount paid over the
value of treasury shares was recorded as share premium.
Plaza Centers N.V. Annual report 2010101