[28] Equity

Subscribed capital and capital reserves

As at the reporting date, the Company's subscribed capital was fully paid up and amounted to €500 thousand, which was unchanged on 31 December 2011.

In December 2012 the Shareholders' Meeting of KION Holding 1 GmbH approved a resolution to increase the share capital by €779 thousand to €1,279 thousand. Weichai Power Co., Ltd., Weifang, China (referred to below as Weichai Power) – a leading manufacturer in the commercial vehicles and automotive supply sector – assumed a share of €320 thousand as part of this capital increase and, on 27 December 2012, paid the capital contribution, including a premium, of €467,000 thousand in cash. The remaining share amounting to €459 thousand was taken by the current shareholder Superlift Holding S.à r.l., Luxembourg, and was paid by contributing a shareholder loan (non-cash capital contribution) amounting to €670,784 thousand (including accrued interest), also on 27 December 2012.

The capital increase was entered in the commercial register on 14 January 2013. The capital contributions paid by Weichai Power and Superlift Holding S.à r.l were therefore recorded in equity under the line item 'Contributions for carrying out the approved capital increase' as at 31 December 2012.

Transaction costs of €5,232 thousand were incurred in connection with the capital increase. These costs were deducted directly from the capital contributions. No tax benefits were recognised for the transaction costs owing to the lack of opportunities to utilise them.

The capital reserve resulted from capital contributions by shareholders.

Retained earnings

The movement of retained earnings is shown in the consolidated statement of changes in equity. The retained earnings comprise the net income (loss) for the financial year and earnings of the consolidated companies, provided they have not been distributed.

Accumulated other comprehensive income (loss)

Accumulated other comprehensive income (loss) includes the currency translation differences arising from the translation of the financial statements of foreign subsidiaries, the effects of the fair value measurement of derivative financial instruments, the profit (loss) from at-equity investments, and the actuarial gains and losses in connection with defined benefit pension obligations.

Non-controlling interests

Non-controlling interests in companies in the KION Group amounted to €6,159 thousand (31 December 2011: €7,077 thousand).

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