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.