IFRS PRACTICAL IMPLEMENTATION GUIDE AND WORKBOOK

295

Chapter 26 / Earnings Per Share (lAS 33)

• Instruments (including contingently issuable shares) that could potentially dilute basic earn– ings per share in the future, but were not included in the calculation of diluted EPS because they are antidilutive for the period(s) presented. • A description of those ordinary share transactions or potential ordinary share transactions that occur after the balance sheet date and that would have changed significantly the number of ordinary shares or potential ordinary shares outstanding at the end of the period if those transactions had occurred before the end of the reporting period. Examples include issues and redemptions of ordinary shares, warrants and options. 10 . EXTRACTS FROM PUBLISHED F INANCIAL STATEMENTS Basic earnings per share are calculated by dividing the net income attributable to shareholders by the weighted-average number of sha res outstanding during the year. Due to the share split, conducted in June 2006 , all numbers of shares have been restated by multiplying them by four. Dilutive potential shares have arisen under the Management Share Option Plan (MSOP) of Adidas Ag, which was implemented in 1999 (see note 33). As the required performance criteria for the exer– cise of the stock options of all tranches of the share option plan have been fulfilled, dilutive potential shares impact the diluted earnings per share calculation . It is also necessary to include dilutive potential shares arising from the convertible bond issuance in October 2003 in the calculation of diluted earnings per share as at December 31, 2006 and 2005 , re– spectively, as the required conversion criteria were fulfilled at the balance sheet date (see note 16). The convertible bond is assumed to have been converted into ordinary shares and the net income is adjusted to eliminate the interest expense less the tax effect. Year ending Dec. 3 / Earnings Per Share 383 186,947,832 2.05 383 II 394 186,947,832 895,315 15,686,275 203,529,422 1.93 For the calculation of earn ings per share from continuing and discontinued operations, the weighted-average number of shares as presented above has been used. 10.2 UNILEVER GROUP, An n ual Report 2006 Net income attributable to shareholders (€ in millions) Weightedaveragenumber of shares Basic earnings per share (€) Net income attributable to shareholders ( in millions) Interest expenses on convertiblebond (net of taxes) ( in millions) Net income used to determine diluted earnings per share ( in millions) Weighted-average numberof shares Weightedshare options Weightedassumedconversion convertiblebond Weighted-averagenumberof shares for diluted earnings per share Dilutedearningsper share ( ) 2006 483 203,386,104 2.37 483 12 495 203,386,104 328,308 15,685,110 219,399,522 2.25 2005 10.1 ADIDAS GROUP, Annual Report 2006 Notes to the Consolidated F inancial Statements 29. Earnings Per Share

Notes to the Consolidated Acco unts 7. Combined Earnings Per Share

2005

2004

2006

€

Combined earnings per year

€

€

From continuing operations Basic earnings per share Dilutedearnings per share From discontinued operations Basicearnings per share

0.87 0.84

U9 1.07 U5 1.04

0.22 0.21

0.07 0.07

0.46 0.45

Dilutedearningsper share From total opera tions Basic earningsper share Dilutedearnings per share

1.29 1.25

0.94 0.91

1.65 1.60