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 2006	EBIT 2007	EBITDA 2006	EBITDA 2007
€ million
After special items	2,762	3,154	4,675	5,866
HealthCare	402	928	666	727
Schering PPA effects*	84	177	429	216
Schering integration costs	189	506	170	418
Write-downs of intangible assets	60	152	0	0
Restructuring	48	0	46	0
Litigations	26	106	26	106
Other	(5)	(13)	(5)	(13)
CropScience	57	130	38	120
Restructuring	79	97	60	87
Litigations	0	33	0	33
Other	(22)	0	(22)	0
MaterialScience	218	75	178	64
Restructuring	60	75	20	64
Litigations	153	0	153	0
Other	5	0	5	0
Reconciliation	40	0	27	0
Restructuring	37	0	24	0
Litigations	(7)	0	(7)	0
Other	10	0	10	0
Total special items	717	1,133	909	911
Before special items	3,479	4,287	5,584	6,777

2006 figures restated
* 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). The purchase price allocation resulted in total charges to EBIT of €1,037 million in 2007. 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. When calculating EBIT before special items, we deducted a €177 million special charge recorded in this connection. EBIT before special items therefore reflects €860 million in charges resulting from the purchase price allocation. EBITDA before special items remains unaffected by the purchase price allocation.