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. 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 fell by 5.4% in the first nine months of 2011 to €1,983 million (9M 2010: €2,097 million), comprising €1,021 million (9M 2010: €1,183 million) in amortization and impairments of intangible assets and €962 million (9M 2010: €914 million) in depreciation and impairments of property, plant and equipment. Included here were impairments of €113 million (9M 2010: €162 million), of which €21 million (9M 2010: €30 million) did not constitute special items.