4. EARNINGS PER ORDINARY SHARE

Earnings per ordinary share are calculated on the profit after taxation, minority interests and preference dividends of US$38.3 million (1996: US$21.3 million) and on the weighted average number of ordinary shares in issue of 1,762.2 million (1996: 1,727.9 million) during the period. The weighted average number excludes the Company's ordinary shares held by the Trustee under the Senior Executive Share Incentive Schemes.

Earnings per ordinary share excluding non-recurring items are calculated on the profit after taxation, minority interests and preference dividends and after adjusting for the losses of Nestlé Dairy Farm of US$6.0 million (1996: US$2.1 million).

Full conversion of the convertible cumulative preference shares and full exercise of the options granted under the Senior Executive Share Incentive Schemes would not result in a material dilution of the earnings per ordinary share.

SHAREHOLDER INFORMATION

The services currently provided by the Company's share transfer agent in Singapore, Barclays Bank Plc, will be preformed by the Company's Singapore branch registrar, M&C Services Private Limited with effect from 16th October 1997.

The interim dividend of US¢1.65 per share will be payable on 25th November 1997 to ordinary Shareholders on the register of members at the close of business on 3rd October 1997 and will be available in cash with a scrip alternative. The ordinary share registers will be closed from 6th to 10th October 1997, inclusive. Ordinary Shareholders will receive their cash dividends in United States Dollars, unless they are registered on the Australia or United Kingdom branch registers where they will have the option to elect for Australian Dollars or Sterling respectively. These Shareholders may make new currency elections by notifying any one of the Company's registrars or the United Kingdom transfer agent in writing by 6th November 1997. The Australian Dollar and Sterling equivalent of dividends declared in United States Dollars will be calculated by reference to rates prevailing ten business days prior to the payment date. Ordinary Shareholders holding their shares through The Central Depository (Pte) Limited ("CDP") in Singapore will receive United States Dollars unless they elect, through CDP, to receive Singapore Dollars or the scrip alternative.