Earnings per Share

Earnings per share from Continuing operations Sales and earnings reporting for continuing operations pertains only to business operations that are expected to remain in the company’s portfolio for the foreseeable future; opposite of discontinued operations. are determined according to IAS 33 (Earnings per Share) by dividing net income (income after income taxes attributable to Bayer AG stockholders) minus income from discontinued operations after income taxes (attributable to Bayer AG stockholders) by the weighted average number of shares. Earnings per share for continuing and discontinued operations are calculated by dividing net income by the weighted average number of shares.

In November 2016, Bayer placed €4.0 billion in mandatory convertible notes without granting subscription rights to existing stockholders of the company. According to IAS 33.23, the weighted average number of shares increases as soon as the notes contract is signed, and this increase must be taken into account in calculating undiluted and diluted earnings per share. The new weighted average number of shares is based on a minimum conversion price that is adjusted annually due to the dividend payment and determines the maximum conversion ratio. The minimum conversion price stood at €87.82 as of December 31, 2017 (December 31, 2016: €90.00). Undiluted and diluted earnings per share are not adjusted for financing expenses incurred in connection with the mandatory convertible notes because the interest component was recognized outside profit or loss when the notes were placed. Further details of the mandatory convertible notes are provided in Note “Equity”.

Since the undiluted and diluted earnings per share were determined for each interim reporting period, earnings per share for the full year or year to date may differ from the sum of the earnings per share for the respective interim reporting periods.

Earnings per Share

 

 

2016

 

2017

 

 

€ million

 

€ million

2016 figures restated

Income from continuing operations after income taxes

 

3,756

 

3,248

of which attributable to noncontrolling interest

 

13

 

(1)

of which attributable to Bayer AG stockholders

 

3,743

 

3,249

 

 

 

 

 

Income from discontinued operations after income taxes

 

1,070

 

4,846

of which attributable to noncontrolling interest

 

282

 

759

of which attributable to Bayer AG stockholders

 

788

 

4,087

 

 

 

 

 

Income after income taxes

 

4,826

 

8,094

of which attributable to noncontrolling interest

 

295

 

758

of which attributable to Bayer AG stockholders (net income)

 

4,531

 

7,336

 

 

 

 

 

 

 

Shares

 

Shares

Weighted average number of shares

 

832,502,808

 

872,107,808

 

 

 

 

 

Earnings per share

 

 

From continuing operations

 

 

 

 

Basic

 

4.50

 

3.73

Diluted

 

4.50

 

3.73

From discontinued operations

 

 

 

 

Basic

 

0.94

 

4.68

Diluted

 

0.94

 

4.68

From continuing and discontinued operations

 

 

 

 

Basic

 

5.44

 

8.41

Diluted

 

5.44

 

8.41

Compare to Last Year