9. Earnings per share 9.1 Basic earnings per ordinary share Basic earnings per share is calculated by dividing the profit for the year attributable to equity holders by the weighted average number of ordinary shares in issue during the year. 9.2 Headline earnings per ordinary share Headline earnings per share is calculated by excluding applicable non-trading and capital gains and losses from the profit attributable to ordinary shareholders and dividing the resultant headline earnings by the weighted average number of ordinary shares in issue during the year. Headline earnings is defined in Circular 1/2021 issued by the South African Institute of Chartered Accountants. 9.3 Diluted earnings per ordinary share Diluted earnings per ordinary share is calculated by adjusting the profit attributable to equity holders for any changes in income or expense that would result from the conversion of dilutive potential ordinary shares and dividing the result by the weighted average number of ordinary shares increased by the weighted average number of additional ordinary shares that would have been outstanding, assuming the conversion of all dilutive potential shares. 9.4 Normalised earnings per share Normalised earnings per share is calculated by dividing the normalised profit for the year attributable to owners of the company per the group segmental income and profit analysis by the weighted average number of shares in issue, adjusted for shares held by policyholders classified as treasury shares. 9.5 Number of shares Millions 2023 2022 Weighted average number of shares 1 341 1 386 Weighted average shares held by policyholders classified as treasury shares (1) (4) Weighted average treasury shares (108) (123) Weighted average number of shares in issue (net of treasury shares) 1 232 1 259 Dilutive shares 85 98 Diluted weighted average number of shares 1 317 1 357 Actual number of shares in issue 1 328 1 354 Actual treasury shares (103) (126) Share buyback programme (4) (33) Share incentive schemes (59) (52) Employee share option plan (ESOP) (39) (39) Policyholder investment in treasury shares (1) (2) Shares in issue net of treasury shares 1 225 1 228 Normalised number of shares Weighted average number of shares in issue 1 232 1 259 Shares held by policyholders classified as treasury shares 1 4 Normalised number of shares in issue 1 233 1 263. 9. Earnings per share continued 9.6 Calculation of basic and headline earnings from total operations Rm 2023 2022 Profit attributable to owners of the company 704 495 Adjusting items: Profit on disposal of subsidiaries discontinued operations (134) (80) Software written off continuing operations 18 2 Loss on disposal of property and equipment continuing operations 2 Headline earnings for the year 588 419 Earnings per share from total operations1 Basic earnings per share (cents) 57.1 39.3 Headline earnings per share (cents) 47.7 33.2 Diluted basic earnings per share (cents) 53.5 36.5 Diluted headline earnings per share (cents) 44.6 30.9 1 Amounts computed using unrounded numbers. On 2 June 2022 the board approved a new non-schedule 14 share scheme, the Alexforbes LTIP 2022, that will govern all LTIP awards granted from 2022 and beyond. The Alexforbes LTIP 2022, which is not considered dilutive, replaces the 2019 Long-Term Incentive Plan (Alexforbes LTIP 2019 (old scheme)). The share-based awards allocated in terms of the old scheme were governed by rules as approved by shareholders and allowed for settlement through the purchase of shares in the open market, the use of treasury shares or the issue of new shares which may result in dilution on both earnings per share and headline earnings per share. The 2019 scheme rules will continue to govern tranches before 2022 until those shares vest or lapse. The above dilutive effect is calculated based on the performance of the company in the current year in relation to the performance criteria on these historical tranches, refer to note 21.4 for further details. 9.7 Calculation of normalised earnings from total operations Rm 2023 2022 Normalised profit for the year per the group segmental income and profit analysis 655 501 Less: profit attributable to non-controlling interests (10) (12) Normalised profit attributable to owners of the company 645 489 Adjusting items: Profit on disposal of subsidiaries discontinued operations (134) (80) Software written off continuing operations 18 2 Loss on disposal of property and equipment continuing operations 2 Normalised headline earnings for the year 529 413 Normalised earnings per share1 Normalised basic earnings per share (cents) 52.3 38.8 Normalised headline earnings per share (cents) 42.9 32.7 1 Amounts computed using unrounded numbers. 9.8 Calculation of basic and headline earnings from continuing operations Rm 2023 2022 Profit after tax from continuing operations 553 478 Less: profit attributable to non-controlling interests (10) (12) Profit attributable to owners of the company 543 466 Adjusting items: Software written off 18 2 Loss on disposal of property and equipment 2 Headline earnings from continuing operations 561 470 Earnings per share from continuing operations1 Basic earnings per share from continuing operations (cents) 44.0 37.0 Headline earnings per share from continuing operations (cents) 45.5 37.2 Diluted basic earnings per share from continuing operations (cents) 41.2 34.3 Diluted headline earnings per share from continuing operations (cents) 42.6 34.7 1 Amounts computed using unrounded numbers. 9.9 Calculation of basic and headline earnings from discontinued operations Rm 2023 2022 Profit after tax from discontinued operations 161 29 Profit from discontinued operations attributable to owners of the company 161 29 Adjusting items: Profit on disposal of subsidiaries (134) (80) Headline earnings/(loss) from discontinued operations 27 (51) Earnings per share from discontinued operations1 Basic earnings per share from discontinued operations (cents) 13.1 2.3 Headline earnings/(loss) per share from discontinued operations (cents) 2.2 (4.0) Diluted basic earnings per share from discontinued operations (cents) 12.3 2.2 Diluted headline earnings/(loss) per share from discontinued operations (cents) 2.1 (4.0) 1 Amounts computed using unrounded numbers. 9. Earnings per share continued 9.6 Calculation of basic and headline earnings from total operations Rm 2023 2022 Profit attributable to owners of the company 704 495 Adjusting items: Profit on disposal of subsidiaries discontinued operations (134) (80) Software written off continuing operations 18 2 Loss on disposal of property and equipment continuing operations 2 Headline earnings for the year 588 419 Earnings per share from total operations1 Basic earnings per share (cents) 57.1 39.3 Headline earnings per share (cents) 47.7 33.2 Diluted basic earnings per share (cents) 53.5 36.5 Diluted headline earnings per share (cents) 44.6 30.9 1 Amounts computed using unrounded numbers. On 2 June 2022 the board approved a new non-schedule 14 share scheme, the Alexforbes LTIP 2022, that will govern all LTIP awards granted from 2022 and beyond. The Alexforbes LTIP 2022, which is not considered dilutive, replaces the 2019 Long-Term Incentive Plan (Alexforbes LTIP 2019 (old scheme)). The share-based awards allocated in terms of the old scheme were governed by rules as approved by shareholders and allowed for settlement through the purchase of shares in the open market, the use of treasury shares or the issue of new shares which may result in dilution on both earnings per share and headline earnings per share. The 2019 scheme rules will continue to govern tranches before 2022 until those shares vest or lapse. The above dilutive effect is calculated based on the performance of the company in the current year in relation to the performance criteria on these historical tranches, refer to note 21.4 for further details. 9.7 Calculation of normalised earnings from total operations Rm 2023 2022 Normalised profit for the year per the group segmental income and profit analysis 655 501 Less: profit attributable to non-controlling interests (10) (12) Normalised profit attributable to owners of the company 645 489 Adjusting items: Profit on disposal of subsidiaries discontinued operations (134) (80) Software written off continuing operations 18 2 Loss on disposal of property and equipment continuing operations 2 Normalised headline earnings for the year 529 413 Normalised earnings per share1 Normalised basic earnings per share (cents) 52.3 38.8 Normalised headline earnings per share (cents) 42.9 32.7 1 Amounts computed using unrounded numbers. 9.8 Calculation of basic and headline earnings from continuing operations Rm 2023 2022 Profit after tax from continuing operations 553 478 Less: profit attributable to non-controlling interests (10) (12) Profit attributable to owners of the company 543 466 Adjusting items: Software written off 18 2 Loss on disposal of property and equipment 2 Headline earnings from continuing operations 561 470 Earnings per share from continuing operations1 Basic earnings per share from continuing operations (cents) 44.0 37.0 Headline earnings per share from continuing operations (cents) 45.5 37.2 Diluted basic earnings per share from continuing operations (cents) 41.2 34.3 Diluted headline earnings per share from continuing operations (cents) 42.6 34.7 1 Amounts computed using unrounded numbers. 9.9 Calculation of basic and headline earnings from discontinued operations Rm 2023 2022 Profit after tax from discontinued operations 161 29 Profit from discontinued operations attributable to owners of the company 161 29 Adjusting items: Profit on disposal of subsidiaries (134) (80) Headline earnings/(loss) from discontinued operations 27 (51) Earnings per share from discontinued operations1 Basic earnings per share from discontinued operations (cents) 13.1 2.3 Headline earnings/(loss) per share from discontinued operations (cents) 2.2 (4.0) Diluted basic earnings per share from discontinued operations (cents) 12.3 2.2 Diluted headline earnings/(loss) per share from discontinued operations (cents) 2.1 (4.0) 1 Amounts computed using unrounded numbers. 9. Earnings per share continued 9.6 Calculation of basic and headline earnings from total operations Rm 2023 2022 Profit attributable to owners of the company 704 495 Adjusting items: Profit on disposal of subsidiaries discontinued operations (134) (80) Software written off continuing operations 18 2 Loss on disposal of property and equipment continuing operations 2 Headline earnings for the year 588 419 Earnings per share from total operations1 Basic earnings per share (cents) 57.1 39.3 Headline earnings per share (cents) 47.7 33.2 Diluted basic earnings per share (cents) 53.5 36.5 Diluted headline earnings per share (cents) 44.6 30.9 1 Amounts computed using unrounded numbers. On 2 June 2022 the board approved a new non-schedule 14 share scheme, the Alexforbes LTIP 2022, that will govern all LTIP awards granted from 2022 and beyond. The Alexforbes LTIP 2022, which is not considered dilutive, replaces the 2019 Long-Term Incentive Plan (Alexforbes LTIP 2019 (old scheme)). The share-based awards allocated in terms of the old scheme were governed by rules as approved by shareholders and allowed for settlement through the purchase of shares in the open market, the use of treasury shares or the issue of new shares which may result in dilution on both earnings per share and headline earnings per share. The 2019 scheme rules will continue to govern tranches before 2022 until those shares vest or lapse. The above dilutive effect is calculated based on the performance of the company in the current year in relation to the performance criteria on these historical tranches, refer to note 21.4 for further details. 9.7 Calculation of normalised earnings from total operations Rm 2023 2022 Normalised profit for the year per the group segmental income and profit analysis 655 501 Less: profit attributable to non-controlling interests (10) (12) Normalised profit attributable to owners of the company 645 489 Adjusting items: Profit on disposal of subsidiaries discontinued operations (134) (80) Software written off continuing operations 18 2 Loss on disposal of property and equipment continuing operations 2 Normalised headline earnings for the year 529 413 Normalised earnings per share1 Normalised basic earnings per share (cents) 52.3 38.8 Normalised headline earnings per share (cents) 42.9 32.7 1 Amounts computed using unrounded numbers. 9.8 Calculation of basic and headline earnings from continuing operations Rm 2023 2022 Profit after tax from continuing operations 553 478 Less: profit attributable to non-controlling interests (10) (12) Profit attributable to owners of the company 543 466 Adjusting items: Software written off 18 2 Loss on disposal of property and equipment 2 Headline earnings from continuing operations 561 470 Earnings per share from continuing operations1 Basic earnings per share from continuing operations (cents) 44.0 37.0 Headline earnings per share from continuing operations (cents) 45.5 37.2 Diluted basic earnings per share from continuing operations (cents) 41.2 34.3 Diluted headline earnings per share from continuing operations (cents) 42.6 34.7 1 Amounts computed using unrounded numbers. 9.9 Calculation of basic and headline earnings from discontinued operations Rm 2023 2022 Profit after tax from discontinued operations 161 29 Profit from discontinued operations attributable to owners of the company 161 29 Adjusting items: Profit on disposal of subsidiaries (134) (80) Headline earnings/(loss) from discontinued operations 27 (51) Earnings per share from discontinued operations1 Basic earnings per share from discontinued operations (cents) 13.1 2.3 Headline earnings/(loss) per share from discontinued operations (cents) 2.2 (4.0) Diluted basic earnings per share from discontinued operations (cents) 12.3 2.2 Diluted headline earnings/(loss) per share from discontinued operations (cents) 2.1 (4.0) 1 Amounts computed using unrounded numbers. 11. Comment on the return to shareholders for Alexander Forbes. Has the Alexander Forbes strategy aligned with the overall objective of increased shareholder wealth? Show all calculations and workings used in arriving at your evaluation.