305 / 488
296
Wiley lFRS: Practicallmplementation Guide and Workbook
Ba sis of calculation
The calculations of combined earn ings per share are based on the net profi t attributable to ordi–
nary cap ital divided by the average number of share units representing the combined ordinary capital
of NV and PLC in issue during the year , after deducting shares held as treasury stock. Earni ngs per
share are calculated on the basis of the revised nominal share values which have bee n app lied since 22
May 2006 and wh ich resulted in a one-to-one equivalence of ordinary shares of NV and PLC as re–
gards their economic interest in the Group. For furthe r information please refer to note 22 on page
109.
The calc ulations of diluted earning s per share are based on: (i) conversion into PLC ordinary
shares of the shares in a group company which are convertible in the year 2038, as descri bed in Corpo–
rate governance on page 42; (ii) conversion of the
EO.OS
NV preference shares, de tails of wh ich are
set out below and in note 22 on page 109; (iii) the effect of sha re-based compensation plans, det ails of
which are set out in note 29 on pages 117 to 121; and (iv) the forw ard equit y contract desc ribed in note
29 on page 121.
On 15 February
2005,
Unilever converted its
EO.OS
NV preference shares into ordi nary
EO.SI
NV
shares. The conversion was made using shares already held by Unilever for the purposes of satisfying
the Group's share-based compensation plans. Unilever bought further ord inary shares in the market
during
2005
to the extent required to restore the hedging position. Until the date of conversio n, the
EO.OS
preference shares were potenti ally dilutive for the purp oses of the calculation of fully dil uted
ea rnings per share , as shown below. At midnight on 13 July
2005
the
EO.OS
NV preference shares
were cancelled.
Calcula tion of average number of sha r e un its
2004
f
million
2,755
~)
2005
f
million
3,766
nLa
Millions of share units
2006
2005
2004
1,714.7 1,714.7 1,714.7
1,310.2 1,310.2 1,310.2
~)
.uus.
~)
2,883.3 2,913.0 2,890.2
70,9
70.9
70.9
7.1
56.6
18.3
16.0
14.9
~
3.QQ1J)
3 032 6
2006
f
million
4,745
n!.JJ
Net profit attributable to shareholders' equity
Less preference dividends
Net profit attributed to ordinary capital for basic earnings per share
calculation
;Llli
Adjusted net profit attributed
to
ordinarycapital for the diluted
earnings per share calculation*
;Llli
lli2
In accordance with lAS
33.
the net profit fo r diluted earnings per sha re has been adjusted fo r the pref erence
dividend on shares f or conversion, which in 2006 amounted
to
€
nil (2005:
€
3
million; 2004
€
2
J
million).
Average number of shares
NY
PLC
Less shares held by employee share trusts and companies
Combined average number of share units for all bases except diluted
earnings per share
Add shares issuable in 2038
Add shares for conversion
Adddilutive effect of share-based compensation plans and forward
equity contract
Adjusted combined average numberof share units for diluted earnings
per share basis
Calculation of earnings