REED ELSEVIER NV > NOTES TO THE FINANCIAL STATEMENTS Adjusted figures 8 Basic and diluted EPS for the parent company was  € 0.26 (2002:  € 0.19) based on earnings of  € 203m (2002:  € 152m) and a weighted average number of shares in issue of 785.3m (2002: 784.7m) and on a diluted basis of 785.3m (2002: 788.1m). The weighted average number of shares for the group is after deducting shares held in treasury. The diluted EPS figures are calculated after taking into account the effect of share options. Adjusted group profit and cash flow figures are used as additional performance measures. The adjusted figures are derived as follows: 2003 2002 € m € m Group profit before tax 376 230 Adjustments: Amortisation of goodwill and intangible assets 323 419 Exceptional items 34 88 Adjusted group profit before tax 733 737 Group profit attributable to ordinary shareholders 242 144 Adjustments: Amortisation of goodwill and intangible assets 325 407 Exceptional items (27) (9) Adjusted group profit attributable to ordinary shareholders 540 542 2003 2002 € € Group earnings per ordinary share 0.31 0.18 Adjustments: Amortisation of goodwill and intangible assets 0.41 0.52 Exceptional items (0.03) (0.01) Adjusted group earnings per ordinary share 0.69 0.69 Earnings per ordinary share (EPS) Group 2003 2002 Weighted Weighted average number average number of shares Earnings EPS of shares Earnings EPS Note (millions) € m € (millions) € m € Basic EPS 783.9 242 0.31 783.2 144 0.18 Diluted EPS 783.9 242 0.31 786.6 144 0.18 Adjusted EPS 8 783.9 540 0.69 783.2 542 0.69 9 98 REED ELSEVIER ANNUAL REPORTS & FINANCIAL STATEMENTS 2003