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 1st Quarter 2007	EBIT 1st Quarter 2008	EBITDA 1st Quarter 2007	EBITDA 1st Quarter 2008
€ million
After special items	1,175	1,343	1,774	2,055
HealthCare	139	100	165	80
Schering PPA effects*	20	51	64	51
Schering integration costs	119	49	101	29
CropScience	39	54	36	50
Restructuring	39	54	36	50
MaterialScience	6	0	0	0
Restructuring	6	0	0	0
Reconciliation	16	0	15	0
Restructuring	16	0	15	0
Total special items	200	154	216	130
Before special items	1,375	1,497	1,990	2,185

* 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 first quarter.