Danone // 2020 Universal Registration Document

DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 110 4.1 Consolidated financial statements and notes to the consolidated financial statements Note 15. Other non-current provisions and liabilities and legal and arbitration proceedings Earnings per share Year ended December 31 (in € per share, except for number of shares) Notes 2019 2020 Net income – Group share 1,929 1,956 Coupon relating to hybrid financing, net of tax (14) (15) Adjusted net income – Group share 1,915 1,941 Number of outstanding shares As of January 1 647,273,210 648,871,267 Effects of changes during the year 14.3 1,598,057 924,643 As of December 31 648,871,267 649,795,910 Average number of outstanding shares • Before dilution 648,250,543 649,331,592 Dilutive impact Group performance shares 855,496 637,251 • After dilution 649,106,039 649,968,844 Net income – Group share, per share • Before dilution 2.95 2.99 • After dilution 2.95 2.99 Note 14.5. Dividend Distributable reserves of the parent company Danone For each subsidiary or associated company, their legally distribu- table reserves may differ from their reported retained earnings as a consequence of (i) consolidation adjustments applied to their separate financial statements, and (ii) the laws applicable in the countries in which the Group operates. In the case of the Group, under French law, dividends can only be paid out of the net income for the year and the distributable reserves of the parent company Danone. Payment of the 2020 dividend The Shareholders’ Meeting on June 26, 2020 in Paris approved the dividend proposed relating to the 2019 fiscal year of €2.10 per share in cash. NOTE 15. OTHER NON-CURRENT PROVISIONS AND LIABILITIES AND LEGAL AND ARBITRATION PROCEEDINGS Note 15.1. Accounting principles Other provisions Other provisions consist of provisions and investment subsidies. Provisions are recognized when the Group has a present obligation resulting froma past event, it is probable that this obligationwill result in a net outflow of resources to settle the obligation and the amount of the obligation can be reliably estimated. Danone also presents in Other provisions the “current” portion since it is not material and does not disclose information on provisions recognized if it deems such disclosure would seriously prejudice its position as regards the resolution of the matter that is the subject of the provision. For each obligation, the amount of the provision recognized as of the reporting date reflects management’s best estimate, as of that date, of the probable outflow of resources required to settle said obligation. If payment is made to settle the obligation or an outflow of resources is no longer probable, the provision is reversed (to reflect, respectively, the use or non-use of the provision). Other non-current liabilities Other non-current liabilities correspond to liabilities for uncertain income tax positions pursuant to IFRIC 23. They are recognized depending on whether it is probable that they will crystallize, without taking into account the probability that they will not be detected by the tax authorities. Their measurement must reflect management’s best estimate as to their actual amount when they ultimately crys- tallize. They must be recognized on the basis of their most probable value or a weighted average of the values under various scenarios.