REC Silicon Annual Report 2019

72 Notes to the consolidated financial statements, REC Silicon Group REC Silicon Annual Report 2019 EARNINGS PER SHARE BASIC Basic earnings per share (EPS) is calculated by dividing the profit/loss attributable to equity holders of the Company by the weighted average number of ordinary shares issued during the year, excluding treasury shares. Theweighted average number of ordinary shares in the table below have been adjusted for the reverse share split on July 9, 2019 (see note 15). 2019 2018 Profit/loss (USD INMILLION) -127.0 -341.6 Weighted average number of ordinary shares in issue (INMILLION) 270.5 254.4 Basic earnings per share (USD per share) -0.47 -1.34 DILUTED Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares from the convertible bonds and employee share options. Earnings are adjusted to reverse interest expense, currency gains or losses, changes in fair value and the related tax amounts of the convertible bonds. The calculation is made individually for each of the convertible bonds. If the effect increases EPS from continuing operations, it is anti-dilutive, and is then not included in diluted EPS. The calculation shows that the share options are anti-dilutive for 2019 and 2018. Consequently, dilutive EPS equals basic EPS for both years. DIVIDENDS PER SHARE The Board of Directors did not propose any dividend payments for financial years 2019 or 2018. RESEARCH AND DEVELOPMENT (USD INMILLION) 2019 2018 Research and development expense 1.8 2.6 Development capitalized 0.0 0.0 Total research and development 1.8 2.6 Research and development activities consist of improvements to current production processes and equipment as well as activities designed to enhance quality, improve efficiency, and reduce production cost. 26 27 28