Items recognized directly in Other Comprehensive Income (OCI) (Group share) are shown below:
| FISCAL 2020 | FISCAL 2019 | |||||
|---|---|---|---|---|---|---|
| (in millions of euro) | INCREASE/(DECREASE) DURING THE YEAR, PRE-TAX | INCOME TAX (EXPENSE)/BENEFIT | INCREASE/(DECREASE) DURING THE YEAR, NET OF TAX | INCREASE/(DECREASE) DURING THE YEAR, PRE-TAX | INCOME TAX (EXPENSE)/BENEFIT | INCREASE/(DECREASE) DURING THE YEAR, NET OF TAX |
| Financial assets measured at fair value through other comprehensive income | Financial assets measured at fair value through other comprehensive income FISCAL 2020(383) | Financial assets measured at fair value through other comprehensive income FISCAL 20199 | (374) | 175 | (4) | 170 |
| Share of other components of comprehensive income (loss) of companies consolidated by the equity method | Share of other components of comprehensive income (loss) of companies consolidated by the equity method FISCAL 20202 | Share of other components of comprehensive income (loss) of companies consolidated by the equity method FISCAL 2019- | 2 | (8) | 1 | (7) |
| Remeasurements of net defined benefit obligation | Remeasurements of net defined benefit obligation FISCAL 202039 | Remeasurements of net defined benefit obligation FISCAL 2019(9) | 30 | 5 | (1) | 4 |
| Currency translation adjustment | Currency translation adjustment FISCAL 2020(502) | Currency translation adjustment FISCAL 2019- | (502) | 190 | - | 190 |
| TOTAL OTHER COMPREHENSIVE INCOME (LOSS) (GROUP SHARE)strong> | TOTAL OTHER COMPREHENSIVE INCOME (LOSS) (GROUP SHARE)strong>FISCAL 2020(844) | TOTAL OTHER COMPREHENSIVE INCOME (LOSS) (GROUP SHARE)strong>FISCAL 2019- | (844) | 362 | (4) | 356 |
Sodexo takes a long-term view in managing its capital structure, with the objective of ensuring the Group’s liquidity, optimizing its financial structure and allowing shareholders to benefit from its strong cash flow generation.
Contributing to decisions made may be objectives for earnings per share or estimated future cash flows, or for balancing various components of the consolidated statement of financial position in order to meet the net debt criteria defined by Group management and communicated to the marketplace, notably a net debt to equity ratio of less than 75%. The net debt to equity ratio corresponds to net debt as a proportion of total shareholders’ equity (including minority interests), with net debt defined as the difference between gross borrowings and total cash, and total cash defined as cash and cash equivalents plus restricted cash and financial assets related to the Benefits & Rewards Services activity less bank overdraft s.
The table below presents the calculation of basic and diluted earnings per share:
| FISCAL 2020 | FISCAL 2019 | |
|---|---|---|
| Profit for the year attributable to equity holders of the parent (in millions of euro) | Profit for the year attributable to equity holders of the parent (in millions of euro) FISCAL 2020(315) | Profit for the year attributable to equity holders of the parent (in millions of euro) FISCAL 2019665 |
| Basic weighted average number of shares | Basic weighted average number of shares FISCAL 2020145 778 963 | Basic weighted average number of shares FISCAL 2019145 721 534 |
| Basic earnings per share(1) (in euro) | Basic earnings per share(1) (in euro)FISCAL 2020(2,16) | Basic earnings per share(1) (in euro)FISCAL 20194,56 |
| Average dilutive effect of free share plans | Average dilutive effect of free share plans FISCAL 20202 141 528 | Average dilutive effect of free share plans FISCAL 20192 054 363 |
| Diluted weighted average number of shares | Diluted weighted average number of shares FISCAL 2020147 920 501 | Diluted weighted average number of shares FISCAL 2019147 775 897 |
| Diluted earnings per share(1)(2) (in euro) | Diluted earnings per share(1)(2) (in euro) FISCAL 2020(2,16) | Diluted earnings per share(1)(2) (in euro) FISCAL 20194,50 |
(1) Basic and diluted earnings per share do not reflect the effect of the dividend premium to be paid on certain registered shares meeting the criteria described in note 11.1. Based on the number of registered shares as of August 31, 2020, such shares total 9,822,658 (9,336,529 as of August 31, 2019).
(2) The net income being negative in Fiscal 2020, the free shares granted are not deemed dilutive . All of the Group’s free share plans had a dilutive impact in Fiscal 2019.
