Accounting policy

The basic earnings per share are obtained by dividing profit for the year by the weighted average number of ordinary shares outstanding during the reporting period. The weighted average number of ordinary shares excludes the treasury shares held by the Group over the reporting period.

The diluted earnings per share are obtained by dividing profit for the year, adjusted for the effects of dilutive potential ordinary shares, by the weighted average number of ordinary shares, also adjusted by the number of dilutive potential ordinary shares attached to the issuance of share options.

The number of dilutive potential ordinary shares is calculated for the weighted average number of share options outstanding during the reporting period as the difference between the average market price of ordinary shares during the reporting period and the exercise price of the share option. Share options have a dilutive effect only when the average market price is above the exercise price (share options are “in the money”).

For the purpose of calculating diluted earnings per share, there were no adjusting elements to the profit for the year (Solvay share).

Basic and diluted amounts per share for discontinued operations are presented in the consolidated income statement.

Number of shares (in thousands)

 

2018

 

2017

Weighted average number of ordinary shares (basic)

 

103,277

 

103,352

Dilution effect of subscription rights

 

459

 

733

Weighted average number of ordinary shares (diluted)

 

103,735

 

104,084

 

 

2018

 

2017

 

Basic

 

Diluted

 

Basic

 

Diluted

Profit for the year (Solvay share) including discontinued operations (in € thousands)

 

858,032

 

858,032

 

1,060,922

 

1,060,922

Profit for the year (Solvay share) excluding discontinued operations (in € thousands)

 

657,378

 

657,378

 

823,962

 

823,962

Earnings per share (including discontinued operations) (in €)

 

8.31

 

8.27

 

10.27

 

10.19

Earnings per share (excluding discontinued operations) (in €)

 

6.37

 

6.34

 

7.97

 

7.92

Full data per share, including dividend per share, can be found in the Business Review section.

The average market price during 2018 was € 110.21 per share (2017: € 118.56 per share). The following share options were out of the money, and therefore antidilutive for the period presented, but could potentially dilute basic earnings per share in the future (see note F33 Share-based payments):

Antidilutive share options

 

Date granted

 

Exercise price (in €)

 

Number of share options granted

 

Number of share options outstanding

Share option plan 2015

 

25/2/2015

 

114.51

 

346,617

 

346,617

Share option plan 2017

 

23/2/2017

 

111.27

 

316,935

 

316,935

Share option plan 2018–1

 

27/2/2018

 

113.11

 

400,704

 

400,704

Total

 

 

 

 

 

1,064,256

 

1,064,256