Unilever 1999 Annual Report Download - page 27

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Unilever Group Notes to the consolidated accounts
29 Combined earnings per share
The calculations of combined earnings per share are based on the net profit attributable to ordinary capital 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 to
meet Unilever employee share options which are not yet vested. For the calculation of combined ordinary capital the exchange rate of
£1=Fl. 12 has been used, in accordance with the Equalisation Agreement. On 10 May 1999 the 1.25p ordinary shares of PLC were
consolidated, so that every 112 1.25p ordinary shares were replaced by 100 1.4p ordinary shares. The Fl. 1 ordinary shares of NV were
consolidated, so that 100 Fl. 1.12 ordinary shares replaced every 112 Fl. 1 ordinary shares. This consolidation was associated with the
payment on 9 June 1999 of a special dividend, so that the economic impact was that of a share buy back at fair value at that date and
therefore, in accordance with United Kingdom Financial Reporting Standard 14, earnings per share for prior years have not been restated.
Thousands of share units Thousands of share units
Fl. 1.12 Fl. 1 1.4p 1.25p
1999 1998 1999 1998
Average ordinary capital: NV 601 725 640 165 4 011 500 4 267 767
PLC 459 745 489 099 3 064 967 3 260 662
less shares held by employee share trusts and group companies (16 287) (13 100) (108 583) (87 331)
Combined average number of share units 1 045 183 1 116 164 6 967 884 7 441 098
Fl. million £ million
Net profit 6 106 6488 1 825 1 973
less preference dividends (44) (15) (13) (4)
Net profit attributable to ordinary capital 6 062 6473 1 812 1 969
Divided by the combined average number of share units equals: Fl. 5.80 Fl. 5.80 26.01p 26.45p
Net profit 6 106 6488 1 825 1 973
add exceptional items net of tax 408 (115) 122 (36)
Net profit before exceptional items 6 514 6373 1 947 1 937
less preference dividends (44) (15) (13) (4)
Net profit before exceptional items attributable to ordinary capital 6 470 6358 1 934 1 933
Divided by the combined average number of share units equals: Fl. 6.19 Fl. 5.69 27.76p 25.97p
Earnings per share before exceptional items is provided because the directors believe it better explains the ongoing trends in the Group’s
performance.
The calculations of diluted earnings per share are based on (a) conversion into PLC ordinary shares of the shares in a group company
which are convertible in the year 2038 as described in note 20 on page 20, and (b) the exercise of share options, details of which are set
out in note 20 on page 21.
Thousands of share units Thousands of share units
Fl. 1.12 Fl. 1 1.4p 1.25p
1999 1998 1999 1998
Combined average number of share units as above 1 045 183 1 116 164 6 967 884 7 441 098
add shares issuable in 2038 23 625 23 625 157 500 157 500
add shares under option 14 264 11 898 95 094 79 317
less shares issuable at fair value (11 361) (7 528) (75 735) (50 187)
Adjusted combined average number of share units 1 071 711 1 144 159 7 144 743 7 627 728
Fl. million £ million
Net profit attributable to ordinary capital as above 6 062 6473 1 812 1 969
Divided by the adjusted combined average number of share units
equals: Fl. 5.66 Fl. 5.66 25.36p 25.80p
On a SSAP 15 basis the calculations would be:
Net profit attributable to ordinary capital before adjustment 6 062 6473 1 812 1 969
SSAP 15 taxation adjustment (64) (139) (19) (42)
Net profit attributable to ordinary capital on a SSAP 15 basis 5 998 6334 1 793 1 927
Divided by the combined average number of share units equals: Fl. 5.74 Fl. 5.67 25.73p 25.88p
27 Unilever Annual Accounts 1999