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 2nd Quarter 2007	EBIT 2nd Quarter 2008	EBIT 1st Half 2007	EBIT 1st Half 2008	EBITDA 2nd Quarter 2007	EBITDA 2nd Quarter 2007	EBITDA 1st Half 2007	EBITDA 1st Half 2008
€ million
After special items	917	1,105	2,092	2,448	1,572	1,774	3,346	3,829
HealthCare	209	126	348	226	181	107	346	187
Schering PPA effects*	33	55	53	106	50	55	114	106
Schering Integration	176	(18)	295	31	131	(27)	232	2
Write-downs	0	21	0	21	0	11	0	11
Litigations	0	68	0	68	0	68	0	68
CropScience	51	8	90	62	48	8	84	58
Restructuring	18	8	57	62	15	8	51	58
Litigations	33	0	33	0	33	0	33	0
MaterialScience	24	9	30	9	20	7	20	7
Restructuring	24	9	30	9	20	7	20	7
Reconciliation	(16)	0	0	0	(15)	0	0	0
Restructuring	(16)	0	0	0	(15)	0	0	0
Total special items	268	143	468	297	234	122	450	252
Before special items	1,185	1,248	2,560	2,745	1,806	1,896	3,796	4,081

* 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 €55 million special charge when calculating EBIT before special items for the second quarter of 2008.