Management Report & Annexes | Report on Economic Position

16.3 Core Earnings Per Share

Earnings per share according to ifrs are affected by the purchase price allocation for acquisitions and other special factors. To enhance comparability, we also determine core net income after eliminating amortization and impairment losses/impairment loss reversals of intangible assets, impairment losses/impairment loss reversals of property, plant and equipment and special items, and the related tax effects.

From this core net income we calculate core earnings per share in the same way as earnings per share. Core earnings per share form the basis for our dividend policy. Core earnings per share in 2014 rose by 7.3% to €6.02 (2013: €5.61).

Core Earnings per Share       [Table 3.16.3]
  4th Quarter 2013 4th Quarter 2014 Full Year 2013 Full Year 2014
  € million € million € million € million
EBIT (as per income statements) 655 561 4,934 5,506
Amortization and impairment losses/loss reversals on intangible assets 437 507 1,559 1,590
Impairment losses/loss reversals on property, plant and equipment 21 57 48 96
Special items (other than amortization and impairment losses/loss reversals) 336 382 571 370
Core EBIT 1,449 1,507 7,112 7,562
Financial result (as per income statements) (84) (347) (727) (981)
Special items in the financial result (72) 13 10 23
Income taxes (as per income statements) (129) 16 (1,021) (1,082)
Special items in income taxes 48 48
Tax effects related to amortization, impairment losses/loss reversals and special items (266) (246) (734) (576)
Income after income taxes attributable to non-controlling interest (as per income statements)  13 (6) 3 (17)
Core net income 911 985 4,643 4,977
  Shares Shares Shares Shares
Number of issued ordinary shares 826,947,808 826,947,808 826,947,808 826,947,808
Core earnings per share (€) 1.10 1.19 5.61 6.02

The calculation of earnings per share in accordance with ifrs is explained in Note [16] to the consolidated financial statements. Core net income, core earnings per share and core ebit are not defined in ifrs.

Last updated: February 26, 2015  Copyright © Bayer AG
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