Additional figures for results of operations

  • EBITDA before special items and EBITDA slightly down
  • Adjusted earnings per share dip from €5.00 to €4.83

Aside from EBIT, EBIT before special items, and EBIT after cost of capital – figures drawn upon to steer the BASF Group – we also provide additional performance indicators in this report that are not defined by IFRS. They should not be viewed in isolation, but treated as supplementary information.

EBITDA before special items (million €)

 

 

2016

2015

EBIT

 

6,275

6,248

– Special items

 

(34)

(491)

EBIT before special items

 

6,309

6,739

+ Amortization, depreciation and valuation allowances on intangible assets and property, plant and equipment before special items

 

4,018

3,769

EBITDA before special items

 

10,327

10,508

EBITDA (million €)

 

 

2016

2015

EBIT

 

6,275

6,248

+ Amortization, depreciation and valuation allowances on intangible assets and property, plant and equipment

 

4,251

4,401

EBITDA

 

10,526

10,649

Income from operations before depreciation, amortization and special items (EBITDA before special items) and income from operations before depreciation and amortization (EBITDA) are figures that describe operational performance independent of age-related amortization and depreciation of assets and extraordinary valuation allowances (impairments or write-ups). Both figures are therefore particularly useful in cross-company comparisons. EBITDA before special items is also highly useful in making comparisons over time.

At €10,327 million, EBITDA before special items in 2016 was down by €181 million compared with the previous year; EBITDA amounted to €10,526 million, or €123 million below the level of 2015.

Return on assets (million €)

 

 

 

2016

2015

Income before taxes and minority interests

 

 

5,395

5,548

+ Interest expenses

 

 

661

638

Income before taxes and minority interests and interest expenses

 

 

6,056

6,186

Total assets as of January 1

 

 

70,836

71,359

Total assets as of December 31

 

 

76,496

70,836

Average assets used

 

 

73,666

71,098

 

 

 

 

 

Return on assets

 

%

8.2

8.7

We calculate return on assets as income before taxes and minority interests, plus interest expenses, as a percentage of average assets used. This figure reflects the return independently of capital structure.

Return on assets was 8.2%, compared with 8.7% in the previous year. The decline was partly attributable to the acquisition of Chemetall in December 2016.

Adjusted earnings per share (million €)

 

 

 

2016

2015

Income before taxes and minority interests

 

 

5,395

5,548

– Special items

 

 

(34)

(468)

+ Amortization and valuation allowances on intangible assets

 

 

560

801

– Amortization and valuation allowances on intangible assets contained in special items

 

 

52

200

Adjusted income before taxes and minority interests

 

 

5,937

6,617

– Adjusted income taxes

 

 

1,300

1,716

Adjusted income before minority interests

 

 

4,637

4,901

– Adjusted minority interests

 

 

197

312

Adjusted net income

 

 

4,440

4,589

 

 

 

 

 

Weighted average number of outstanding shares

 

in thousands

918,479

918,479

Adjusted earnings per share

 

4.83

5.00

Compared with earnings per share, this figure has been adjusted for special items as well as amortization of, and valuation allowances (impairments and write-ups) on, intangible assets. Amortization of intangible assets primarily results from the purchase price allocation following acquisitions. The amortization of intangible assets is therefore of a temporary nature. The effects of these adjustments on income taxes and on minority interests are also eliminated. This makes adjusted earnings per share a suitable measure for making comparisons over time and predicting future profitability.