26 SHAREHOLDERS' EQUITY

Shares and share capital

Lemminkäinen Corporation has one share class. On 31 December 2013, the Company had a total of 19,650,176 shares. All issued shares are fully paid up. The Company held 34,915 treasury shares.

Share premium account

Share premiums are recognised in the share premium account.

Invested non-restricted equity fund

The invested non-restricted equity fund includes the subscription prices of shares to the extent that they are not entered into share capital on the basis of a separate decision.

Hybrid bond eligible for equity classification

Shareholders' equity includes EUR 70 million Hybrid bond issued 2012. The bond has no maturity date but the company has the right to redeem it after four years of the issue date. The bond is unsecured and in a lower priority than the company's other debt obligations. A holder of Hybrid bond notes does not possess any of the rights of a shareholder, and the bond does not dilute shareholders' holdings in the company. Bond's annual coupon rate is 10%.

Translation differences

The translation differences include the differences arising from the translation of the financial statements of foreign entities. During the past years the Group has hedged the net investment in foreign entities and hedging gains and losses from hedge instruments are also included in the translation differences, provided they qualified for hedge accounting. Group has not applied the hedge accounting for hedging the net investment in foreing entities during the reporting period.

Revaluation reserve

Revaluation reserve includes fair value changes of available-for-sale financial assets.

Hedging reserve

Hedging reserve includes the effective portion of the fair value changes of interest rate derivatives designated for hedge accounting. Cash flow hedging is applied for hedging interest rate risk. During the period a fair value change of interest rate derivatives EUR 0.5 milllion (EUR 0.7 mill.) before deferred taxes has been recognised in other comprehensive income. An amount of EUR -0.5 million (EUR -0.9 mill.) has been recognised in interest expences in profit and loss during the financial year arising from cash flow hedging.