Management Report & Annexes | Fundamental Information About the Group
1.5 Value Creation
The value added statement shows Bayer’s contribution to public and private incomes and is a measure of the value the company’s business activities create for its stakeholders. We define value added as the company’s total operating performance in the previous fiscal year less the costs of procured and consumed goods and services, depreciation and amortization.
The total operating performance of the Bayer Group in 2014 was €43.3 billion. Value added increased by 5% to €15.3 billion. Of the value added, €9.8 billion (64%) was distributed to employees, €1.9 billion (12%) to stockholders, €0.7 billion (5%) to lenders and €1.3 billion (9%) to governments. The remainder was allocated to reserves.
In addition to direct cash flows, the company creates value for its stakeholders in various ways, in particular by focusing on innovative products and solutions in our core businesses. We operate production sites throughout the world, invest locally in research and development, work with international and local suppliers and contribute to the economic development of our target markets. As an employer, we provide jobs in industrialized, emerging and developing economies and create purchasing power through the salaries we pay. We also support public infrastructure through payments of regional taxes.