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 from continuing operations after eliminating amortization and impairment losses / impairment loss reversals on intangible assets, impairment losses / impairment loss reversals on property, plant and equipment, and special items, along with 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 from continuing operations in the third quarter of 2015 increased by 28.0% to €1.69 (Q3 2014: €1.32).

Core Earnings per Share

 

 

 

 

 

 

 

 

 

3rd Quarter 2014

3rd Quarter 2015

 

First Nine Months 2014

First Nine Months 2015

 

 

€ million

€ million

 

€ million

€ million

2014 figures restated

EBIT (as per income statements)

 

1,346

1,565

 

4,846

5,342

Amortization and impairment losses / impairment loss reversals on intangible assets

 

366

403

 

1,077

1,273

Impairment losses / impairment loss reversals on property, plant and equipment

 

4

5

 

39

60

Special items (other than amortization and impairment losses / impairment loss reversals)

 

(46)

198

 

(12)

645

Core EBIT

 

1,670

2,171

 

5,950

7,320

Financial result (as per income statements)

 

(302)

(280)

 

(634)

(841)

Special items in the financial result

 

59

(21)

 

10

(30)

Income taxes (as per income statements)

 

(236)

(296)

 

(1,087)

(1,064)

Tax effects related to amortization, impairment losses / impairment loss reversals and special items

 

(93)

(175)

 

(328)

(606)

Income after income taxes attributable to non-controlling interest (as per income statements)

 

(7)

(6)

 

(11)

(18)

Core net income from continuing operations

 

1,091

1,393

 

3,900

4,761

 

 

Shares

Shares

 

Shares

Shares

Number of issued ordinary shares

 

826,947,808

826,947,808

 

826,947,808

826,947,808

Core earnings per share from continuing operations (€)

 

1.32

1.69

 

4.72

5.76

Core earnings per share from discontinued operations (€)

 

0.03

0.03

 

0.11

0.11

Core earnings per share from continuing and discontinued operations (€)

 

1.35

1.72

 

4.83

5.87

Core net income from continuing operations, core earnings per share from continuing operations (core EPS) and core EBIT are not defined in IFRS.