Download the 2009 annual report in PDF format - ANF

Earnings per share (IAS 33)
Basic earnings per share equates to net income after minority
interests attributable to ordinary shares divided by the weighted
average number of outstanding shares during the period. The
average number of outstanding shares during the period is the
number of outstanding ordinary shares at the beginning of the
Market risks
Managing market risk
Owning rental properties exposes the Group to the risk of
fl uctuations in the value of property assets and rent. However, this
exposure is mitigated because:
• the assets are mainly held for the long-term and recognised in
the fi nancial statements at their fair value, even if this value is
determined on the basis of estimates;
• rental income stems from leasing arrangements, the term and
dispersion of which are likely to lessen the impact of fl uctuations
in the rental market.
Counterparty risk
With a client portfolio of over 500 tenant companies, a high degree
of sector diversifi cation, and 1,700 individual tenants, the Group is
not exposed to a signifi cant risk of concentration.
Following the completion of the acquisition of B&B Group hotel
properties, a large portion of ANF’s rental income comes from
rent payments by B&B Group companies. Only serious fi nancial,
commercial or operational diffi culties for the B&B Group would see
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated fi nancial statements
period adjusted for the number of ordinary shares bought back or
issued during the period.
To calculate diluted earnings per share, the average number of
outstanding shares is adjusted to refl ect the effect of dilution from
equity instruments issued by the Company that might increase the
number of outstanding shares.
it defaulting on its rent payments and would accordingly potentially
have a signifi cant negative impact on ANF’s operations, earnings,
fi nancial position and outlook.
Financial transactions, particularly the hedging of interest rate risk,
are entered into with leading fi nancial institutions.
Liquidity risk
Medium and long-term liquidity risk is managed via multi-year
fi nancing plans. In the short-term, it is managed via confi rmed credit
lines that have not been drawn down.
Interest rate risk
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Contents
The ANF Group is exposed to interest rate risk. Management
actively manages this risk exposure. The Group uses a number
of fi nancial derivatives to address this. The goal is to reduce,
wherever deemed appropriate, fl uctuations in cash fl ows as a result
of changes in interest rates. The Group does not engage in any
fi nancial transaction, the risk of which cannot be quantifi ed when
entered into.
ANF • 2009 ANNUAL REPORT
135
OTHER GENERAL GENERAL INFORMATION PRO FORMA FINANCIAL INFORMATION ANNUAL FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL FINANCIAL STATEMENTS INFORMATION ABOUT ANF DESCRIPTION OF THE BUSINESS