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 impairments/impairment loss reversals of intangible assets, impairments/impairment loss reversals of property, plant and equipment, and special items in EBITDA including 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 2013 rose by 5.8% to €5.61 (2012: €5.30).

Core Earnings per Share[Table 3.16.3]
4th Quarter 2012 4th Quarter 2013 Full Year 2012 Full Year 2013
€ million € million € million € million
EBIT (as per income statements) 729 655 3,928 4,934
Amortization and impairment losses/loss reversals of intangible assets 327 437 1,637 1,559
Impairment losses/loss reversals on property, plant and equipment 9 21 41 48
Special items (other than amortization and impairment losses/loss reversals) 425 336 1,364 571
Core EBIT 1,490 1,449 6,970 7,112
Financial result (as per income statements) (169) (84) (752) (727)
Special items in the financial result (73) (72) (73) 10
Income taxes (as per income statements) (156) (129) (723) (1,021)
Tax effects related to amortization, impairment losses/loss reversals and special items (255) (266) (1,024) (734)
Income after income taxes attributable to non-controlling interest (as per income statements) (38) 13 (50) 3
Special items in income after income taxes attributable to non-controlling interest 35 35
Core net income 834 911 4,383 4,643

 

 

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Shares

Number of issued ordinary shares 826,947,808 826,947,808 826,947,808 826,947,808
Core earnings per share (€) 1.01 1.10 5.30 5.61
2012 figures restated

The calculation of earnings per share according to 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 28, 2014  Copyright © Bayer AG
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