Basic and diluted earnings per share

Basic earnings (or loss) per share are calculated by dividing the consolidated profit or loss for the period by the weighted average number of shares in issue during the period, excluding the weighted average number of treasury shares. Diluted earnings per share for the year ended 31 December 2019 reflects the effect of potentially dilutive shares under the Group’s share-based payment plans and arrangements introduced in the same period.

The Group changed its share structure in connection with the IPO (as further described in note 24). Prior to the IPO, different classes of ordinary and preference shares were converted into one class of ordinary shares. The conversion was made on a one-share-for-one-share basis and the number of shares remained unchanged. The earnings per share information is therefore calculated as if the Group had always had only one class of shares, also in the comparative period.

 

 

Total number of ordinary shares

Issued shares as of 1 January 2018

 

215,053,240

Capital increase in connection with the IPO

 

105,000,000

Issued shares as of 31 December 2018

 

320,053,240

Issued shares as of 1 January 2019

 

320,053,240

Issued shares as of 31 December 2019

 

320,053,240

The below table shows the weighted average numbers of shares outstanding before and after adjustments for the effect of potentially dilutive shares. For the year ended 31 December 2018, the Group did not have any potentially dilutive shares.

 

 

Weighted average number of ordinary shares

Issued shares as of 1 January 2018

 

215,053,240

Effect of capital increase in connection with the IPO

 

26,178,082

Weighted average number of shares as of 31 December 2018 - basic and diluted

 

241,231,322

Issued shares as of 1 January 2019

 

320,053,240

Effect of treasury shares held

 

(10,732)

Weighted average number of shares as of 31 December 2019 - basic

 

320,042,508

Effect of share-based payment plans and arrangements

 

15,552

Weighted average number of shares as of 31 December 2019 - diluted

 

320,058,060

The following table shows the profit or loss attributable to shareholders and the weighted average number of outstanding shares used in the calculation of basic and diluted earnings per share.

(In € million unless indicated)

 

Year ended
31 Dec. 2019

 

Year ended
31 Dec. 2018

Profit/(loss) for the period

 

106.9

 

(83.9)

Weighted average number of shares for the period - basic (in numbers)

 

320,042,508

 

241,231,322

Basic earnings/(loss) per share (in €)

 

0.33

 

(0.35)

Profit/(loss) for the period

 

106.9

 

(83.9)

Weighted average number of shares for the period - diluted (in numbers)

 

320,058,060

 

241,231,322

Diluted earnings/(loss) per share (in €)

 

0.33

 

(0.35)

Adjusted earnings per share

Adjusted earnings per share is defined by the Group as adjusted net income divided by the weighted average number of shares. Management believes that (basic) adjusted earnings per share is a useful measure as adjusted net income is used to measure performance. Adjusted net income and adjusted earnings per share are not defined performance measures in IFRS (see further note 9).

The following table shows the adjusted net income and the weighted average number of outstanding shares used in the calculation of basic and diluted adjusted earnings per share.

(In € million unless indicated)

 

Year ended
31 Dec. 2019

 

Year ended
31 Dec. 2018

Adjusted net income

 

217.4

 

148.9

Weighted average number of shares for the period - basic (in numbers)

 

320,042,508

 

241,231,322

Adjusted earnings per share - basic (in €)

 

0.68

 

0.62

Adjusted net income

 

217.4

 

148.9

Weighted average number of shares for the period - diluted (in numbers)

 

320,058,060

 

241,231,322

Adjusted earnings per share - diluted (in €)

 

0.68

 

0.62