TomTom 2005 Annual Report Download - page 75

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75
9.฀Earnings฀per฀share
The฀calculation฀of฀basic฀and฀diluted฀earnings฀per฀share฀is฀based฀on฀the฀following฀data:
฀ 2004฀ 2005
Earnings
(in฀
฀thousands)
Earnings฀(net฀profit฀attributable฀to฀equity฀holders)฀ 27,717฀ 142,957
฀ ฀ ฀
Number฀of฀shares฀ ฀ ฀
Weighted฀average฀number฀of฀ordinary฀shares฀for฀basic฀earnings฀per฀share฀ 100,000,000฀ 104,247,526
฀ ฀ ฀
Effect฀of฀dilutive฀potential฀ordinary฀shares฀ ฀ ฀
Share฀options฀฀ 7,130,803฀ 9,426,794
Weighted฀average฀number฀of฀ordinary฀shares฀for฀diluted฀earnings฀per฀share
฀ 107,130,803฀ 113,674,320
Basic฀earnings฀per฀share
Basic฀earnings฀per฀share฀is฀calculated฀by฀dividing฀the฀profit฀attributable฀to฀equity฀holders฀of฀the฀Company฀by฀the฀weighted฀
average฀number฀of฀ordinary฀shares฀outstanding฀during฀the฀year.
Diluted฀earnings฀per฀share
Diluted฀earnings฀per฀share฀is฀calculated฀by฀adjusting฀the฀weighted฀average฀number฀of฀ordinary฀shares฀outstanding฀to฀assume฀
conversion฀of฀all฀potential฀dilutive฀ordinary฀shares.฀The฀Company฀has฀one฀category฀of฀potential฀dilutive฀ordinary฀shares:฀share฀
options.฀For฀these฀share฀options฀a฀calculation฀is฀done฀to฀determine฀the฀number฀of฀shares฀that฀could฀have฀been฀acquired฀at฀
fair฀value฀(determined฀as฀the฀average฀annual฀market฀share฀price฀of฀the฀Company’s฀shares)฀based฀on฀the฀monetary฀value฀of฀
the฀subscription฀rights฀attached฀to฀outstanding฀share฀options.฀The฀number฀of฀shares฀calculated฀as฀above฀is฀compared฀with฀
the฀number฀of฀shares฀that฀would฀have฀been฀issued฀assuming฀the฀exercise฀of฀the฀share฀options.
The฀weighted฀average฀number฀of฀ordinary฀shares฀for฀diluted฀earnings฀per฀share฀for฀the฀years฀ended฀31฀December฀2004฀and฀
the฀period฀up฀until฀the฀IPO฀in฀2005,฀has฀been฀computed฀on฀a฀pro-forma฀basis฀assuming฀the฀change฀in฀the฀number฀of฀shares฀
outstanding฀to฀100฀million฀shares฀had฀been฀effective฀for฀all฀of฀2004฀and฀in฀the฀period฀up฀until฀13฀May฀2005฀respectively.