IBERSOL Annual Report 2018

Consolidated Financial Statements 2018 2017 Pre-tax profit 29.141.059 33.941.094 Tax calculated at the appliacble tax rate in Portugal (22,5%) 6.556.738 7.636.746 Fiscal effect caused by: Income tax provisions - 1.182.596 Insufficiency (excess) of income tax -73.338 -2.707.163 Tax credits (CFI) -3.871.869 -3.021.307 Deferred tax credits 60.814 -1.066.980 Special tax (independent) 416.550 357.463 Tax pours 192.166 149.654 Deferred tax adjustments and other effects 789.248 170.580 Income Tax Expenses 4.070.309 2.701.589 In 2018 and 2017, the income tax rate on profits was of 14% and 8%, respectively, lower than the nominal rate, mainly due to the tax credits obtained under the terms of the Investment Tax Code (CFI), as in the “Decreto –Lei” no. 162/2014, of 31 October. 29. INCOME PER SHARE Income per share in the years ending on 31st December 2018 and 2017 was calcu- lated as follows: 2018 2017 Profit payable to shareholders 24.962.061 30.849.460 Mean weighted number of ordinary shares is- sued (1) 36.000.000 36.000.000 Mean weighted number of own shares -3.599.981 -3.599.981 32.400.019 32.400.019 Basic earnings per share (€ per share) 0,77 0,95 Earnings diluted per share (€ per share) 0,77 0,95 Number of own shares at the end of the year 3.599.981 3.599.981 (1) in 2018 and 2017, there were capital increases due to the incorporation of reserves. Nevertheless, in accordance with IAS 33, when this occurs, the number of ordinary shares is adjusted as if the increase had occurred at the beginning of the oldest period presented. Since there are no potential voting rights, the basic earnings per share is equal to earn- ings diluted per share. 284