B Ell IBB Notes to the consolidated financial statements 121 29 Earnings per share 30 Financial risk management and financial instruments Financial risk management Ahold at a glance 1 Business review 1 Governance 1 Financials 1 Investors Ahold Annual Report 2015 The calculation of basic and diluted net income per share attributable to common shareholders is based on the following data: 2015 2014 Earnings million) Net income attributable to common shareholders for the purposes of basic earnings per share 852 594 Effect of dilutive potential common shares - reversal of preferred dividends from earnings 23 22 Net income attributable to common shareholders for the purposes of diluted earnings per share 875 616 Number of shares (in millions) Weighted average number of common shares for the purposes of basic earnings per share 820 879 Effect of dilutive potential common shares: Share options and conditional shares 12 11 Cumulative preferred financing shares 25 34 Weighted average number of common shares for the purposes of diluted earnings per share 857 924 The calculation of the basic and diluted income from continuing operations per share attributable to common shareholders is based on the same number of shares as detailed above and the following earnings data: millior 2015 2014 Income from continuing operations 849 791 Non-controlling interests (1) Income from continuing operations, attributable to common shareholders for the purposes of basic earnings per share 850 791 Effect of dilutive potential common shares - reversal of preferred dividends from earnings 23 22 Income from continuing operations, attributable to common shareholders for the purposes of diluted earnings per share 873 813 Basic and diluted income per share from discontinued operations attributable to common shareholders amounted both to nil (2014: negative €0.22 basic and negative €0.21 diluted). They are based on the income from discontinued operations attributable to common shareholders of €2 million (2014: loss of €197 million) and the denominators detailed above. The Treasury function provides a centralized service to the Company for funding, foreign exchange, interest rate, liquidity and counterparty risk management. Treasury operates within a framework of policies and procedures that is reviewed regularly. The Treasury function does not operate as a profit center and manages the financial risks that arise in relation to underlying business needs. Ahold's Management Board has overall responsibility for the establishment and oversight of the Treasury risk management framework. Ahold's management reviews material changes to Treasury policies and receives information related to Treasury activities. In accordance with its Treasury policies, Ahold uses derivative instruments solely for the purpose of hedging exposures. These exposures are mainly connected with the interest rate and currency risks arising from the Company's operations and its sources of finance. Ahold does not enter into derivative financial instruments for speculative purposes. The transaction of derivative instruments is restricted to Treasury personnel only and Ahold's Internal Control department reviews the Treasury internal control environment regularly. Relationships with credit rating agencies and monitoring of key credit ratios are also managed by the Treasury department.

Jaarverslagen | 2015 | | pagina 25