Calculation of EBIT(DA) Before Special Items

Key performance indicators for the Bayer Group are EBIT before special items and EBITDA before special items. These indicators are reported in order to allow a more accurate assessment of business operations. The special items – comprising effects that are non-recurring or do not regularly recur or attain similar magnitudes – are detailed in the following table. EBITDA, EBITDA before special items and EBIT before special items are not defined in the International Financial Reporting Standards (IFRS) and should therefore be regarded only as supplementary information. EBITDA before special items is a meaningful indicator of operating performance since it is not affected by depreciation, amortization, impairment losses, impairment loss reversals or special items. By reporting this indicator, the company aims to give readers a clear picture of the results of operations and ensure comparability of data over time. The EBITDA margin before special items, which is the ratio of EBITDA before special items to sales, serves as a relative indicator for the internal and external comparison of operational earning power.

Depreciation, amortization and impairments rose by 17.5% in the first nine months of 2015 to €2,376 million (9M 2014: €2,022 million), comprising €1,273 million (9M 2014: €1,077 million) in amortization and impairments of intangible assets and €1,103 million (9M 2014: €945 million) in depreciation and impairments of property, plant and equipment. Impairments totaled €75 million (9M 2014: €68 million), of which €58 million (9M 2014: €8 million) was included in special items.

Special Items Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBIT1
3rd Quarter 2014

EBIT1
3rd Quarter 2015

 

EBIT1 First Nine Months 2014

EBIT1 First Nine Months 2015

 

EBITDA2 3rd Quarter 2014

EBITDA2 3rd Quarter 2015

 

EBITDA2 First Nine Months 2014

EBITDA2 First Nine Months 2015

 

 

€ million

€ million

 

€ million

€ million

 

€ million

€ million

 

€ million

€ million

2014 figures restated

1

EBIT = earnings before financial result and taxes

2

EBITDA = EBIT plus amortization and impairment losses on intangible assets, plus depreciation and impairment losses on property, plant and equipment, minus impairment loss reversals

Before special items

 

1,301

1,769

 

4,842

6,045

 

1,977

2,523

 

6,856

8,363

HealthCare

 

54

(46)

 

45

(336)

 

54

(44)

 

49

(309)

Restructuring

 

(15)

 

(88)

 

(13)

 

(61)

Litigations

 

 

(14)

 

 

(14)

Integration costs

 

(26)

(31)

 

(67)

(177)

 

(26)

(31)

 

(63)

(177)

Settlement of pre-existing relationship

 

 

35

 

 

35

Divestitures

 

80

 

77

3

 

80

 

77

3

Revaluation of other receivables

 

 

(60)

 

 

(60)

CropScience

 

(4)

 

(79)

 

(3)

 

(73)

Litigations

 

 

(18)

 

 

(18)

Divestitures

 

(4)

 

(50)

 

(3)

 

(44)

Revaluation of other receivables

 

 

(11)

 

 

(11)

Covestro

 

(2)

(87)

 

(21)

(188)

 

(1)

(84)

 

(17)

(163)

Restructuring

 

(2)

(87)

 

(21)

(186)

 

(1)

(84)

 

(17)

(161)

Revaluation of other receivables

 

 

(2)

 

 

(2)

Reconciliation

 

(7)

(67)

 

(20)

(100)

 

(7)

(67)

 

(20)

(100)

Restructuring

 

(7)

(35)

 

(20)

(67)

 

(7)

(35)

 

(20)

(67)

Litigations

 

(32)

 

(32)

 

(32)

 

(32)

Revaluation of other receivables

 

 

(1)

 

 

(1)

Total special items

 

45

(204)

 

4

(703)

 

46

(198)

 

12

(645)

of which cost of goods sold

 

(2)

(34)

 

(12)

(271)

 

(2)

(28)

 

(12)

(219)

of which selling expenses

 

(2)

(9)

 

(13)

(80)

 

(2)

(9)

 

(13)

(76)

of which research and development expenses

 

(1)

(5)

 

(3)

(16)

 

(1)

(5)

 

(3)

(14)

of which general administration expenses

 

(5)

(97)

 

(32)

(160)

 

(5)

(97)

 

(28)

(160)

of which other operating income / expenses

 

55

(59)

 

64

(176)

 

56

(59)

 

68

(176)

After special items

 

1,346

1,565

 

4,846

5,342

 

2,023

2,325

 

6,868

7,718