27 Shareholders' equity

Shares and share capital

Lemminkäinen Corporation has one share class. On 31 December 2015, the company had a total of 23,219,900 (23,219,900) shares and 16,687 (16,687) treasury shares.

Share premium account

Share premiums are recognised in the share premium account.

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 2014, a fair value change of interest rate derivatives EUR -0.1 milllion before deferred taxes has been removed from the hedging reserve into the income statement. Hedging instruments have matured and hedge accounting terminated during the year 2014. An amount of EUR -0.1 million has been recognised in interest expenses in profit and loss during the financial year 2014 arising from cash flow hedging.

Invested unrestricted equity fund

Invested unrestricted 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 bonds eligible for equity classification

Shareholders' equity includes two hybrid bonds each of which with original nominal value of EUR 70 million, one issued in 2012 and the other in 2014. During the second quarter of 2015 company repurchased notes of the first issued hybrid bond with a nominal amount of EUR 27.1 million. The bonds have no maturity dates but the company has the right to redeem the hybrid bonds after four years of the issue date. The bonds are 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. The annual coupon rate until the first redemption date of the bond issued in 2012 is 10% and the annual coupon rate of the bond issued in 2014 is 8.75% .

Translation differences

Translation differences include the differences arising from the translation of the Group’s foreign entities’ non-Euro denominated financial statements into Euros. In previous years the Group 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. The Group has not applied hedge accounting for hedging the net investment in foreign entities during the reporting period.

At the end of 2015 the translation difference amounted to EUR -25.9 million (-21.7), of which the share of Russian operations was EUR -24.0 million (-21.5). The change of the translation difference was EUR -4.2 million during 2015 (-18.6). The impact of Russian exchange rate changes on the translation difference was a total of EUR -2.5 million (-15.8) and the impact of Norwegian exchange rate changes was a total of EUR -1.6 million (-2.7).