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 and should therefore be regarded only as supplementary information. The company considers EBITDA before special items to be a more suitable indicator of operating performance since it is not affected by depreciation, amortization, impairments or special items. By reporting this indicator, the company aims to give readers a clearer picture of the results of operations and ensure greater 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 26.6% in 2010 to €3,556 million (2009: €2,809 million), comprising €2,308 million (2009: €1,537 million) in amortization and impairments of intangible assets and €1,248 million (2009: €1,272 million) in depreciation and impairments of property, plant and equipment. Included here were impairments of €985 million, of which €78 million did not constitute special items. Impairments and write-downs also included a €56 million write-down of other receivables.