Management Report

Calculation of EBIT(DA) Before Special Items

To permit a more accurate assessment of business operations, EBIT and EBITDA are also stated “before special items.” The special items concerned are detailed in the table below. “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.

Special Items Reconciliation	EBIT 3rd Quarter 2007	EBIT 3rd Quarter 2008	EBIT First Nine Months 2007	EBIT First Nine Months 2008	EBITDA 3rd Quarter 2007	EBITDA 3rd Quarter 2008	EBITDA First Nine Months 2007	EBITDA First Nine Months 2008
€ million
After special items	677	684	2,769	3,132	1,439	1,334	4,785	5,163
HealthCare	269	160	617	386	117	113	463	300
Schering PPA effects*	51	51	104	157	51	51	165	157
Schering integration	68	48	363	79	68	43	300	45
Write-downs	152	56	152	77	0	14	0	25
Litigations	27	5	27	73	27	5	27	73
Other	(29)	0	(29)	0	(29)	0	(29)	0
CropScience	4	42	94	104	1	40	85	98
Restructuring	4	42	61	104	1	40	52	98
Litigations	0	0	33	0	0	0	33	0
MaterialScience	3	5	33	14	2	6	22	13
Restructuring	3	5	33	14	2	6	22	13
Reconciliation	0	0	0	0	0	0	0	0
Total special items	276	207	744	504	120	159	570	411
Before special items	953	891	3,513	3,636	1,559	1,493	5,355	5,574

* The purchase price paid for Schering AG, Germany, was allocated among the acquired assets and assumed liabilities in accordance with the International Financial Reporting Standards (IFRS). To ensure comparability with future earnings data, the expected long-term effects of the step-up are reflected in EBIT and EBITDA before special items, whereas temporary, non-cash effects of the purchase price allocation are eliminated. In this connection we recognized a €51 million special charge when calculating EBIT before special items for the third quarter of 2008.