B Ell
IBB
Notes to the consolidated financial statements
121
29 Earnings per share
30 Financial risk management and financial instruments
Financial risk management
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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.