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Notes 6-10

9. Earnings per share

Basic EPS

The calculation of basic reported and headline EPS is as follows:

  Six months ended
30 June
2011
Six months ended
30 June
2010
+/(-)% Constant Currency
+/(-)%
Year ended
31 December
2010
Reported earnings1 (£m) 230.7 150.8     586.0
Headline earnings (£m) (note 19) 293.0 239.2     730.8
Average shares used in Basic EPS calculation (m) 1,244.2 1,222.9     1,233.1
Reported EPS 18.5p 12.3p 50.4 57.8 47.5p
Headline EPS 23.5p 19.6p 19.9 23.8 59.3p

Notes

  1. 1 Reported earnings is equivalent to profit for the period attributable to equity holders of the parent.

Diluted EPS

The calculation of diluted reported and headline EPS is set out below:

  Six months ended
30 June
2011
Six months ended
30 June
2010
+/(-)% Constant Currency
+/(-)%
Year ended
31 December
2010
Diluted reported earnings (£m) 243.6 150.8     614.3
Diluted headline earnings (£m) 305.9 239.2     759.0
Shares used in diluted EPS calculation (m) 1,344.0 1,254.1     1,339.0
Diluted reported EPS 18.1p 12.0p 50.8 58.4 45.9p
Diluted headline EPS 22.8p 19.1p 19.4 22.8 56.7p

Diluted EPS has been calculated based on the reported and headline earnings amounts above. For the six months ended 30 June 2011, the £450 million convertible bonds were dilutive and earnings were consequently increased by £12.9 million for the purpose of the calculation of diluted earnings. For the six months ended 30 June 2010, these convertible bonds were accretive to earnings and therefore excluded from the calculation of diluted earnings.

A reconciliation between the shares used in calculating basic and diluted EPS is as follows:

  Six months ended
30 June
2011
m
Six months ended
30 June
2010
m
Year ended
31??? December
2010
m
Average shares used in basic EPS calculation 1,244.2 1,222.9 1,233.1
Dilutive share options outstanding 6.4 6.8 6.7
Other potentially issuable shares 16.9 24.4 22.7
£450 million 5.75% convertible bonds 76.5 76.5
Shares used in diluted EPS calculation 1,344.0 1,254.1 1,339.0

At 30 June 2011 there were 1,266,516,940 ordinary shares in issue.