Download - Salzgitter AG

(29) Subscribed Capital
In the financial year 2007, subscribed capital (capital stock) remained unchanged at € 161,615,273.31.
The 63,218,400 no par value shares have a notional par value of € 2.56 each.
In accordance with the resolution passed by the General Meeting of Shareholders on May 26, 2004,
the capital stock was increased by up to € 15,952,306.69 through the issuing of up to 6,240,000 new
no par value bearer shares (Contingent Capital 2004). The purpose of this contingent increase in capital
is to facilitate the granting of option and conversion rights, in accordance with the option and convertible
bond terms, to the holders of the options and/or convertible bonds issued on the basis of the
authorization granted by the General Meeting of Shareholders on May 26, 2004. This authorization
enables the Executive Board, with the approval of the Supervisory Board, to issue interest-bearing
bearer warrant-linked bonds and/or convertible bonds on one or more occasions on or before May 25,
2009, up to a total nominal value of € 90,000,000 with a maximum term of ten years and to grant
the holders of the equally privileged bonds and option or conversion rights to a maximum of
6,240,000 new Salzgitter AG shares (corresponds to 10% of the capital stock prior to the capital
increase). No use has yet been made of this authorization.
In addition, the Executive Board, in accordance with the resolution passed by the General Meeting of
Shareholders on May 26, 2004, was authorized to increase the capital stock with the approval of the
Supervisory Board by up to a nominal amount of € 55,833,073.42 (= 35% of the capital stock) on or
before May 25, 2009, by issuing up to 21,840,000 new no par value bearer shares against payment in
cash or kind (Authorized Capital 2004). This authorization has also not yet been used.
(30) Capital Reserve
Within the capital reserve (€ 295.3 million), the sum of € 115.2 million is accounted for by a premium
lodged on the occasion of a capital increase on October 1, 1970. Other amounts totaling € 111.2 million
relate to reserves predating the merger of Ilseder Hütte with Salzgitter Hüttenwerke AG and
lodged with the former Preussag Stahl AG, as well as a sundry contribution by the then principal
shareholder dating from 1971/72.
As part of the divestiture agreement, certain assets were sold to Salzgitter AG by Preussag AG for
€ 0.51 each. These assets were reported at the time of acquisition at their fair values (€ 49.1 million)
and the differences posted to the capital reserve.
In the previous years, the exercise of option rights from the stock option program led to an increase of
€ 7.8 million in the capital reserve.