Earnings per Share

Earnings per share are determined according to IAS 33 by dividing the net income for the period attributable to Bayer AG stockholders by the weighted average number of shares. As no dilutive financial instruments were in circulation at the end of the reporting period, diluted earnings per share were equivalent to basic earnings per share.

In April 2018, the Republic of Singapore subscribed to 31 million new Bayer shares through a subsidiary, for total gross proceeds of €3 billion. The subscription rights of existing stockholders were excluded from this capital increase. In June 2018, a capital increase with subscription rights for existing stockholders was implemented, raising around €6 billion in net proceeds. Approximately 74.6 million new shares were issued.

In November 2016, Bayer placed €4 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 earnings per share. The new weighted average number of shares is based on the maximum conversion ratio resulting from the currently applicable minimum conversion price of €83.99. In accordance with the terms, the minimum conversion price had to be adjusted following the payment of the dividend and the capital increase with subscription rights. An adjustment is not undertaken 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 and capital increases are provided in Note “Equity”.

Earnings per Share

 

 

2017

 

2018

 

2017

 

2018

 

 

€ million

 

€ million

 

Earnings per share (€)

 

Earnings per share (€)

1

The weighted average number of shares was restated for all periods prior to June 2018 to reflect the effect of the bonus component of the subscription rights issued for the June 2018 capital increase.

Income after income taxes (attributable to Bayer AG stockholders)

 

7,336

 

1,695

 

8.29

 

1.80

of which income after income taxes from continuing operations (attributable to Bayer AG stockholders)

 

3,249

 

1,695

 

3.67

 

1.80

of which income after income taxes from discontinued operations (attributable to Bayer AG stockholders)

 

4,087

 

 

4.62

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares1

 

885,186,889

 

940,754,504

 

 

 

 

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