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16. Earnings per share from continuing and discontinued operations

Earnings per share are determined according to IAS 33 (Earnings Per Share) by dividing net income by the weighted average number of shares.

Until June 1, 2009, the conversion date of the mandatory convertible bond issued in April 2006, the number of ordinary shares taken into account for this purpose included the potential shares that would be issued upon conversion of the bond. Basic and diluted earnings per share were therefore identical. The financing expenses for the mandatory convertible bond were added back to net income.

Following the conversion of the mandatory convertible bond, the number of ordinary shares in issue was 826,947,808.

Further details of the convertible bond can be found in Note [27].

Earnings Per Share	[Table 4.41]
	2008	2009
	€ million	€ million
Income after taxes	1,724	1,359
of which attributable to non-controlling interest	5	-
of which attributable to Bayer AG stockholders (net income)	1,719	1,359
Income from discontinued operations after taxes	4	-

Financing expenses for the mandatory convertible bond, net of tax effects	112	47
Adjusted net income from continuing operations	1,827	1,406
Adjusted net income from continuing and discontinued operations	1,831	1,406

Weighted average number of issued ordinary shares	764,342,029	801,050,237
(Potential) shares (to be) issued upon conversion of the mandatory convertible bond	59,893,122	24,955,936
Adjusted weighted average total number of issued and potential ordinary shares	824,235,151	826,006,173

Basic earnings per share
from continuing operations	2.22	1.70
from discontinued operations	-	-
from continuing and discontinued operations	2.22	1.70

Diluted earnings per share
from continuing operations	2.22	1.70
from discontinued operations	-	-
from continuing and discontinued operations	2.22	1.70