NOTES TO THE FINANCIAL STATEMENTS continued
22. Equity:// CONTINUED
22.3 Financial ratios
2018 $M 12 MONTHS
2017 $M 12 MONTHS
Earnings per share
Net profit attributable to owners of the parent
148.2
65.8
Weighted average ordinary shares outstanding during the period (number of shares)
998,370,185
995,651,036
Total earnings per share
14.8 cents
16.7 cents
2018 $M
2017 $M
Net tangible assets per share
Net assets attributable to owners of the parent
2,440.4 (1,398.2) 1,042.2
2,430.6 (1,399.6) 1,031.0
Less total intangible assets Total net tangible assets
Ordinary shares outstanding (number of shares)
999,913,852 104.2 cents
995,645,987 103.5 cents
Economic net debt to economic net debt plus adjusted equity ratio (“gearing ratio”)
2018 $M
2017 $M
Face value of borrowings
2,405.7
2,235.0
Less cash and cash equivalents
(27.9)
(14.9)
Economic net debt
2,377.8 2,457.9
2,220.1 2,448.3
Total equity
Adjusted for hedge reserves
40.1
49.0
Adjusted equity
2,498.0 4,875.8
2,497.3 4,717.4
Economic net debt plus adjusted equity
48.8%
47.1%
22.4 Reserves
Hedge reserves
Hedge reserves comprise the cash flow hedge reserve and cost of hedging. The cash flow hedge reserve records the effective portion of changes in the fair value of derivatives that are designated as cash flow hedges. The gain or loss relating to the ineffective portion is recorded in profit or loss within interest costs (net). During the year, $44.4 million (2017: $59.5 million) was transferred from the cash flow hedge reserve to interest expense. Cost of hedging records the change in the fair value of the cost to convert foreign currency into New Zealand dollars as required under NZ IFRS 9. Other reserves comprise: —— A share-based payment reserve relating to the employee share purchase scheme. When shares are vested to the employee, the reserve is offset with a reduction in treasury shares. —— A foreign currency translation reserve to record exchange differences arising from the translation of the group’s foreign operations. —— A reserve recording the group’s share of its associates other comprehensive income. —— A reserve to record the fair value movements in the group’s investments in financial assets.
Other reserves
105
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