Note 20 • Reserves

(i) Legal reserve

The Company is required by Luxembourg law to appropriate to a legal reserve at least 5 percent of its statutory net profit, until the aggregate reserve equals 10 percent of its issued share capital. The legal reserve is not available for distribution.

(ii) Translation reserve

Included in the translation loss in 2010 are the following:

(a) Exchange gain of €10 million (€4.4 million loss) arising on long term inter-company debt of an investment nature, and;

(b) A foreign exchange gain of €6.2 million (€2.2 million loss) arising from the translation of financial statements of foreign subsidiaries.

Included in the translation reserve is a revaluation reserve related to certain assets of €9.2 million (€9 million).

(iii) Hedging reserve

The hedging reserve comprises the effective portion of the cumulative net change in fair value of the cash flow hedging instruments.

(iv) Dividends

In May 2009, the AGM of the Company approved a dividend of €1.25 per share, as proposed by the Board of Directors, i.e. €70.4 million in total.

In May 2010, the AGM of the Company approved a dividend of €1.25 per share, as proposed by the Board of Directors, i.e. €71 million in total.

The Board of Directors will propose to the AGM in May 2011 a dividend payment of €1.50 per share, amounting to €85.5 million in total.

(v) Other reserve

The other reserve comprises the increase in equity from services received with respect to the equity settled share based payments plan.