DOOSAN HEAVY INDUSTRIES & CONSTRUCTION CO., LTD. AND ...

Doosan Heavy Industries & Construction Co., Ltd. and SubsidiariesNotes to the Consolidated Financial StatementsFor the years ended December 31, 2012 and 201123. Retained Earnings(1) Composition of retained earnings(In millions of won) 2012 2011Legal reserve ₩ 94,968 88,268Discretionary reserve 743,561 665,561Unappropriated retained earnings 2,675,767 2,799,461₩ 3,514,296 3,553,290(2) Changes in retained earnings for the years ended December 31, 2012 and 2011 are as follows:(In millions of won) 2012 2011Balance at beginning ₩ 3,553,290 3,471,526Profit for the year 38,045 274,781Payment of dividends (66,773) (67,375)Actuarial losses (9,030) (50,740)Changes in retained earnings of equity method investees (1,236) (74,902)Ending balance ₩ 3,514,296 3,553,290(3) Details of dividends for the years ended December 31, 2012 and 2011 were as follows :(In won, except number of shares) 2012(*1) 2011Dividends ₩ 66,782,821,500 66,773,221,500Number of shares 89,043,762 89,030,962Par value per share 5,000 5,000Dividends to capital stock rate 15.00% 15.00%Dividends per share ₩ 750 750(*1) Represents the amount proposed prior to the date of authorization of issuance of financial statements,and not recognized as appropriations of retained earnings on the financial statements as of the reportingdate.The Controlling Company paid ₩ 66,773 million of dividends for the year ended December 31, 2011 duringApril of 2012, and dividends for the year ended December 31, 2012 are expected to be paid during April of2013 (₩ 67,375 million was paid in 2011).(4) Pay-out ratio and dividend yield ratio for the years ended December 31, 2012 and 2011 were as follows:Pay-out ratio (dividends/profit for the year attributable to theControlling Company)Dividend yield ratio (dividends per share / Share price at thereporting date)2012 2011175.54% 24.30%1.66% 1.15%66