Control Secundario: En el ambiente

The changes in the components making up the Group’s equity are reported in the statement of changes in consolidated equity.

a) Subscribed capital, capital reserves and authorised capital

As at 31 December 2013, GSW’s subscribed capital amounts to EUR 56,676,960 (2012: EUR 50,526,314) and is divided into an equal number of ordinary shares issued at a nominal value of EUR 1.00 each. The shares are fully issued and fully paid.

The capital increase of EUR 6,150,646 (or shares) resulted from the conversion of the convertible bond issued in the 2012 financial year by the bondholder on 23 December 2013. The convertible bond with a nominal volume of EUR 181 million was converted into new GSW shares at a conversion price of EUR 29.43.

The capital reserves likewise increased by EUR 160.2 million on the conversion of the bond, as the conversion causes the bond liabilities to be transferred to equity.

GSW’s capital reserves also increased by a total of EUR 616 thousand in the period under review as a result of the share-based remuneration components for Management Board members in accordance with IFRS 2. After the takeover by Deutsche Wohnen AG, share-based remuneration of the LTI was no longer possible as planned and is to be made as a cash settlement, so a corresponding portion of EUR 1,063 thousand was reclassified from the capital reserves into other liabilities.

In accordance with the resolution by the Annual General Meeting (AGM) on 18 June 2013, a dividend of EUR 0.90 per share (totalling EUR 45.5 million) was distributed from retained earnings for the 2012 financial year.

Additional resolutions:

By way of resolution of the Annual General Meeting on 18 June 2013, the authorisation for the simplified disapplication of subscription rights in accordance with section 186 (3) sentence 4 of the Aktiengesetz (AktG – German Stock

Corporation Act) included in Authorised Capital 2012 but no longer usable following the issue of the convertible bond in November 2012 was revoked and Authorised Capital 2012 was supplemented by a new authorisation for the simplified disapplication of subscription rights. In terms of content, this should largely match the authorisation for the simplified disapplication of subscription rights in Authorised Capital 2012, but exclude the shares to be issued on the basis of the convertible bond issued in November 2012 from being counted towards the 10 % limit stipulated in section 186 (3) sentence 4 AktG.

The Management Board was also authorised by way of resolution of the Annual General Meeting to contingently increase the share capital of the company by up to EUR 7,500,000.00 by issuing up to 7,500,000.00 new bearer shares with a notional interest in the share capital of EUR 1.00 by 17 June 2018 (Contingent Capital 2013). Due to the conversion of the convertible bond on 23 December 2013 and the subsequent supply of 6,150,646 new GSW shares, a portion of the Contingent Capital 2013 of EUR 1,098,015.00 has already been used. The remaining Contingent Capital 2012 of EUR 5,052,630.00 was used at the same time. As of 31 December 2013, the available Contingent Capital 2013 therefore amounted to EUR 6,401,985.00.

b) Consolidated retained earnings

Consolidated retained earnings include the earnings of the companies included in the consolidated financial statements in past periods and in the current period in as far as they were not distributed.

The amendments to IAS 19 from 1 January 2013 were applied retrospectively and therefore led to changes in consolidated retained earnings amounting to EUR -30 thousand .

c) Accumulated other comprehensive income

Accumulated other comprehensive income, which includes the adjustments in fair value for owner-occupied properties measured according to the revaluation method, the fair value changes of derivative interest rate contract constituting in cash flow hedges, and the actuarial gains and losses from the measurement of pension commitments, developed as follows:

EUR thousand 2013 2012*

Balance as at 1 January (79,336) (46,237)

Revaluation surplus resulting from actuarial gains and losses from pension commitments 96 (401)

Revaluation surplus from the fair market valuation of owner-occupied properties 38 38

Cumulative fair value changes of derivative interest rate contract constituting in cash flow hedges 27,965 (35,827)

Deferred taxes 6,812 3,044

(44,425) (79,382)

Thereof attributable to non controlling interests (19) 47

Balance as of 31 December (44,444) (79,336)

* The amendments to IAS 19 from 1 January 2013 were applied retrospectively and therefore led to adjustments to the previous year’s figures for other comprehensive income amounting to EUR -493 thousand .

d) Non controlling interests

The share of total comprehensive income for the year attributable to non controlling interests is as follows as at the end of the reporting period:

EUR thousand 31.12.2013 31.12.2012

Non controlling interests in consolidated net income for the year 88 47

Non controlling interests in accumulated other comprehensive income 19 (47)

Non controlling interests in total comprehensive income for the year 107 0

Non-controlling interests in accumulated other comprehensive income of EUR 19 thousand (previous year:

EUR -47 thousand) relate to the change in the fair value of interest derivatives in cash flow hedges.

e) Statement of comprehensive income

The statement of other comprehensive income, which includes the adjustments in fair value for owner-occupied properties measured according to the revaluation method, the fair value changes of derivative interest rate contract constituting in cash flow hedges, and the actuarial gains and losses from the measurement of pension commitments, developed as follows:

01.01.-31.12.2013

EUR thousand

Before

deferred taxes Deferred taxes

After deferred taxes

Consolidated net income for the year 60,013 0 60,013

Revaluation surplus resulting from actuarial gains and losses from pension commitments 96 95 191

Revaluation surplus from the fair market valuation of owner-occupied properties 38 (11) 27

Fair value adjustment of derivatives in cash flow hedges 27,614 6,644 34,258

Reclassification of interest derivatives affecting income 351 84 435

Total comprehensive income for the year 88,111 6,812 94,923

01.01.-31.12.2012*

EUR thousand

Before

deferred taxes Deferred taxes

After deferred taxes

Consolidated net income for the year 143,275 0 143,275

Revaluation surplus resulting from actuarial gains and losses from pension commitments (401) 24 (377)

Revaluation surplus from the fair market valuation of owner-occupied properties 38 (11) 27

Fair value adjustment of derivatives in cash flow hedges (36,681) 3,104 (33,577)

Reclassification of interest derivatives affecting income 854 (72) 782

Total comprehensive income for the year 107,085 3,045 110,130

* The amendments to IAS 19 from 1 January 2013 were applied retrospectively and therefore led to adjustments to the previous year’s figures in the total comprehensive income amounting to EUR -377 thousand .