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, write-downs/write-backs or special items. The company also believes that this indicator gives readers a clearer picture of the results of operations and ensures 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 and amortization rose by 2.0% in the first three quarters of 2010 to €2,097 million (9M 2009: €2,056 million), comprising €1,183 million (9M 2009: €1,112 million) in amortization and write-downs of intangible assets and €914 million (9M 2009: €944 million) in depreciation and write-downs of property, plant and equipment. Depreciation and amortization included write-downs of €162 million, of which €30 million did not constitute special items.