Calculation of EBIT(DA) Before Special Items

EBIT (income after income taxes, plus income taxes, plus financial result), which is not defined in the International Financial Reporting Standards, is influenced by one-time special effects and by the amortization of intangible assets and depreciation of property, plant and equipment, along with impairment losses and impairment loss reversals. To elucidate the effects of these parameters on the operational business and facilitate the comparability of operational earning power over time, we determine additional indicators: EBITDA, EBIT before special items, EBITDA before special items and the EBITDA margin before special items. These indicators also are not defined in the International Financial Reporting Standards.

  • EBITDA (EBIT plus the amortization of intangible assets and the depreciation of property, plant and equipment, plus impairment losses and minus impairment loss reversals, recognized in profit or loss during the reporting period) serves to characterize the operational business irrespective of the effects of amortization, depreciation or impairment losses / impairment loss reversals.
  • EBIT before special items and EBITDA before special items show the development of the operational business irrespective of the effects of special items – those that are nonrecurring or do not regularly recur or attain similar magnitudes. EBIT before special items and EBITDA before special items are determined by adding special charges and subtracting special gains. They constitute relevant key data for Bayer.
  • The EBITDA margin before special items, which is calculated by dividing EBITDA before special items by sales, serves as an indicator of relative operational earning power for purposes of internal and external comparison.
Special Items Reconciliation

 

 

EBIT Q1 2015

EBIT Q1 2016

 

EBITDA Q1 2015

EBITDA Q1 2016

 

 

€ million

€ million

 

€ million

€ million

2015 figures restated

Before special items

 

2,188

2,607

 

2,941

3,404

Pharmaceuticals

 

(24)

(231)

 

(24)

Restructuring

 

(9)

(2)

 

(9)

(2)

Litigations

 

(13)

2

 

(13)

2

Integration costs

 

(2)

 

(2)

Impairment losses / impairment loss reversals

 

(231)

 

Consumer Health

 

(89)

(32)

 

(89)

(19)

Restructuring

 

(14)

 

(1)

Integration costs

 

(89)

(18)

 

(89)

(18)

Crop Science

 

(47)

(3)

 

(42)

(3)

Litigations

 

(1)

(3)

 

(1)

(3)

Divestitures

 

(46)

 

(41)

Animal Health

 

(32)

(1)

 

(10)

(1)

Restructuring

 

(32)

(1)

 

(10)

(1)

Reconciliation

 

(10)

(5)

 

(10)

(5)

Restructuring

 

(10)

(5)

 

(10)

(5)

Covestro

 

(42)

 

(21)

Restructuring

 

(42)

 

(21)

Total special items

 

(244)

(272)

 

(196)

(28)

of which cost of goods sold

 

(186)

(183)

 

(143)

(8)

of which selling expenses

 

(26)

(41)

 

(21)

(5)

of which research and development expenses

 

(2)

(35)

 

(2)

(2)

of which general administration expenses

 

(20)

(13)

 

(20)

(13)

of which other operating income / expenses

 

(10)

 

(10)

After special items

 

1,944

2,335

 

2,745

3,376

Depreciation, amortization and impairments were 30.0% higher in the first quarter of 2016 at €1,041 million (Q1 2015: €801 million), comprising €668 million (Q1 2015: €424 million) in amortization and impairments on intangible assets and €373 million (Q1 2015: €377 million) in depreciation and impairments on property, plant and equipment. The impairments totaled €260 million (Q1 2015: €48 million), of which €244 million (Q1 2015: €48 million) constituted special items.