Danone // 2020 Universal Registration Document

4 109 DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 4.1 Consolidated financial statements and notes to the consolidated financial statements Note 14. DANONE shares, dividend and earnings per share NOTE 14. DANONE SHARES, DIVIDEND AND EARNINGS PER SHARE Note 14.1. Accounting principles DANONE shares held by the Company and its fully consolidated subsidiaries are recognized as a reduction in consolidated equity, under the heading Treasury shares and are measured at effective cost. Note 14.2. Transactions and changes involving DANONE shares Changes in terms of transactions and use according to the Companyʼs objective (in number of shares) As of December 31, 2019 Changes during the period As of December 31, 2020 Buybacks Sales/Transfers Delivery of shares Acquisition transactions 30,769,360 − − − 30,769,360 Employee shareholding plans 700,174 − − (415,849) 284,325 Cancellation of shares − – − − − Shares held by the Company 31,469,534 − − (415,849) 31,053,685 Shares held by Danone Spain 5,780,005 − − − 5,780,005 Total shares held by the Group 37,249,539 − − (415,849) 36,833,690 Note 14.3 Outstanding DANONE shares Year ended December 31 2019 2020 (in number of shares) Notes Share capital Treasury Outstanding Share capital Treasury Outstanding As of January 1 685,055,200 (37,781,990) 647,273,210 686,120,806 (37,249,539) 648,871,267 Capital increase 8.5 1,065,606 − 1,065,606 508,794 508,794 Changes in treasury shares 14.2 532,451 532,451 415,849 415,849 As of December 31 686,120,806 (37,249,539) 648,871,267 686,629,600 (36,833,690) 649,795,910 Note 14.4. Earnings per share – Group share Accounting principles Earnings per share correspond to the ratio of Net income - Group share adjusted for hybrid financing (adjustment of the income used to calculate Earnings per share for the coupon accrued for the period presented net of tax, in accordance with IFRS) divided by the Number of shares. The Number of shares corresponds to the average number of outstanding shares during the year, after deducting the treasury shares held by the Company and its fully consolidated subsidiaries. Earnings per share after dilution (or diluted earnings per share) correspond to the ratio of Net income – Group share adjusted for hybrid financing divided by the Diluted number of shares. The Diluted number of shares corresponds to the Number of shares increased by the net impact, when it is positive, of the following two elements: • the increase in the weighted average number of shares that would result from the acquisition of Group performance shares, taking into account only those shares whose performance conditions are met as of the closing date; • the reduction in the number of shares that could theoretically be acquired, in accordance with the treasury stockmethod specified by IAS 33 Earnings per share.