INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Notes to the consolidated financial statements 30 June 2017 (continued) 6 Earnings per share (a) Earnings used in calculating earnings per share Profit (loss) used in calculating basic and diluted earnings per share attributable to ordinary equity holders of the parent is $17,011,000 (2016: $58,770,000 loss). (b) Weighted average number of shares used as the denominator 2017 Number 2016 Number Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share 580,422,734 448,064,084 Adjustments for calculation of diluted earnings per share: Share rights 1,333,910 - Weighted average number of ordinary and potential ordinary shares used as the denominator in calculating diluted earnings per share 581,756,644 448,064,084 (c) Information concerning the classification of securities Share rights Share rights granted to executives and employees under the Company's Employee Incentive Plan are included in the calculation of diluted earnings per share in the current period. The share rights were not included in the calculation of diluted earnings per share in the prior period as they were anti-dilutive. The share rights are not included in the determination of basic earnings per share. Further information about the share rights is provided in note 27. (d) Calculation of earnings per share (i) Basic earnings per share Basic earnings per share is calculated by dividing: • the profit attributable to owners of the Company, excluding any costs of servicing equity other than ordinary shares • by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year and excluding treasury shares. (ii) Diluted earnings per share Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account: • the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares; and • the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares. Independence Group NL 49 IGO ANNUAL REPORT 2017— 79 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017