Management Report & Annexes | Report on Economic Position

16.2 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 impairment losses increased by 1.4% in 2014 to €2,936 million (2013: €2,869 million), comprising €1,592 million (2013: €1,572 million) in amortization and impairments of intangible assets, €2 million (2013: €13 million) in impairment loss reversals and €1,346 million (2013: €1,337 million) in depreciation and impairments of property, plant and equipment. A total of €68 million (2013: €268 million) in depreciation, amortization and impairments constituted special items. This amount comprised €70 million (2013: €259 million) in impairment losses and €0 million (2013: €22 million) in depreciation and amortization, less €2 million (2013: €13 million) in impairment loss reversals.

Special Items Reconciliation               [Table 3.16.2]
 

EBIT1

4th Quarter 2013

EBIT1

4th Quarter 2014

EBIT1

Full Year 2013

EBIT1

Full Year 2014

EBITDA2 

4th Quarter 2013

EBITDA2

4th Quarter 2014

EBITDA2

Full Year 2013

EBITDA2

Full Year

2014

  € million € million € million € million € million € million € million € million
Before special items 1,094 1,003 5,773 5,944 1,769 1,846 8,401 8,812
HealthCare (354) (376) (713) (331) (268) (347) (476) (298)
Impairment losses/impairment loss reversals (55) (29) (171) (29) 14
Restructuring (109) (197) (78) (145)
Litigations (180) (88) (269) (88) (180) (88) (269) (88)
Integration costs (10) (86) (76) (153) (10) (86) (76) (149)
Settlement of pre-existing relationship3 35 35
Divestitures (173) (96) (173) (96)
CropScience (40) (32) (72) (32) (37) (2) (64) (2)
Restructuring (40) (67) (37) (59)
Litigations (1) (5) (1) (1) (5) (1)
Divestitures (31) (31) (1) (1)
MaterialScience (18) (22) 6 (43) (4) (21) 29 (38)
Restructuring (18) (22) (36) (43) (4) (21) (13) (38)
Divestitures 42 42
Reconciliation (27) (12) (60) (32) (27) (12) (60) (32)
Restructuring (25) (12) (58) (32) (25) (12) (58) (32)
Litigations (2) (2) (2) (2)
Total special items (439) (442) (839) (438) (336) (382) (571) (370)
of which cost of goods sold (79) (68) (116) (80) (42) (37) (83) (49)
of which selling expenses (37) (50) (73) (63) (37) (21) (73) (34)
of which research and development expenses (77) 1 (212) (2) (12) 1 1 (2)
of which general administration expenses (38) (23) (56) (55) (35) (23) (53) (51)
of which other operating income/expenses (208) (302) (382) (238) (210) (302) (363) (234)
After special items 655 561 4,934 5,506 1,433 1,464 7,830 8,442
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
3 For details see Note [6.2] to the consolidated financial statements.
Last updated: February 26, 2015  Copyright © Bayer AG
http://www.annualreport2014.bayer.com