Management Report
Management Report

4.3 Core Earnings Per Share

Earnings per share according to IFRS are affected by the purchase price allocation for acquisitions and other special factors. To enhance comparability, we also determine core net income after eliminating amortization and impairments of intangible assets, impairments of property, plant and equipment, and special items in EBITDA including the related tax effects.
From this core net income we calculate core earnings per share in the same way as earnings per share. Core earnings per share form the basis for our dividend policy. Core earnings per share in 2010 amounted to €4.19 (2009: €3.64).
Core Earnings Per Share[Table 3.17]
 20092010
 € million€ million
EBIT as per income statements3,006 2,730
Amortization and impairment losses on intangible assets1,5372,308
Impairment losses on property, plant and equipment8853
Special items (other than impairment losses)657815
Core EBIT5,2885,906
Non-operating result (as per income statements)(1,136) (1,009)
Income taxes (as per income statements)(511) (411)
Tax effects related to impairments and special items(685) (1,012)
Income after taxes attributable to non-controlling interest
(as per income statements)

0

(9)
Core net income2,9563,465
Financing expenses for the mandatory convertible bond, net of tax effects470
Adjusted core net income3,0033,465


Shares

Shares
Weighted average number of issued ordinary shares801,050,237826,947,808
(Potential) shares (to be) issued upon conversion
of the mandatory convertible bond

24,955,936

0
Adjusted weighted average total number of issued and potential ordinary shares826,006,173826,947,808
Core earnings per share (€)3.644.19
The calculation of earnings per share according to IFRS is explained in Note [16] to the consolidated financial statements. The (adjusted) core net income, core earnings per share and core EBIT are not defined in IFRS.
Last updated: February 28, 2011

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