Management Report

7. 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 impairment losses / impairment loss reversals on intangible assets, impairment losses /impairment loss reversals on property, plant and equipment and special items, and 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 the first quarter of 2015 rose by 7.7% to €2.10 (q1 2014: €1.95).

Core Earnings per Share   [Table 14]
  1st Quarter
2014
1st Quarter
2015
  € million € million
EBIT (as per income statements) 2,096 1,998
Amortization and impairment losses/loss reversals on intangible assets 348 427
Impairment losses/loss reversals on property, plant and equipment 36
Special items (other than amortization and impairment losses/loss reversals) (7) 196
Core EBIT 2,437 2,657
Financial result (as per income statements) (159) (274)
Special items in the financial result (44) (3)
Income taxes (as per income statements) (512) (415)
Tax effects related to amortization, impairment losses/loss reversals and special items (107) (222)
Income after income taxes attributable to non-controlling interest
(as per income statements)
(2) (6)
Core net income 1,613 1,737
  Shares Shares
Number of issued ordinary shares 826,947,808 826,947,808
Core earnings per share (€) 1.95 2.10

Core net income, core earnings per share and core ebit are not defined in ifrs.

Last updated: August 16, 2017  Copyright © Bayer AG
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