Document 55gk7XrJbrOkK7GOQzQqQzyD

:s Increased Shareholders' Equity The high level of capital investments in re cent years has significantly increased the to tal capital invested in Koppers. Total in vestment was $763.1 million at the close of 1978. more than 20% greater than the S631.6 million invested a year earlier. Be cause a maior portion of the increased in vestment has been funded by retained earn ings. common shareholders' equity was raised to $504.7 million at the end of 1978. about 11% higher than the 1977 total. Com mon equity has nearly doubled in the past five years. Equity per common share at the end ol 1978 was $20.12. versus $18.21 in 1977. Kopoers income performance in 1978 produceo a 12.3% return on average total in vested capital, virtually unchanged from the 12.4% return in the prior year. However, the Company s return on average common eq uity rose to 16.2% in 1978. from 15.6% in 1977. aided somewhat by the increased use of debt during the recent year. Return on Average Common Shareholders' Equity and Average Total Investment 20%____________________________________ _______________________________________ | Return on Eouity | Return on Investment 0___________________ 69 70 71 72 73 74 75 76 77 Net Fixed Assets iS Millions) S500 ________ 78 Changes in Securities The aoility of Koppers to declare cash dividends on its common and preferred stocks increased significantly during 1978 as Ihe most restrictive provision within the Com pany's term debt agreements permits S77.252.000 of consolidated earnings re tained in the business to be available for cash dividends on Oecember 31. 1978. This limit is substantially greater than ihe total dividends of $28,758,000 paid out by Koppers in 1978. Equity Security Holders "itie cl Class Mumoer Of Record Holders at Oecember 31. 1970 Common Siock. $1.25 Par Value 16.108 Cumulative Preferred Slock. 5'00 Par Value 621