Merck 2014 Annual Report Download - page 126

121GROUP MANAGEMENT REPORT → REPORT ON ECONOMIC POSITION → Corporate and Other
CORPORATE AND OTHER
Corporate and Other comprises Group administration expenses for
Group functions that cannot be directly allocated to the divisions,
such as Finance, Procurement, Legal, Communications and Human
Resources. Corporate costs additionally encompass expenses for
central, non-allocated IT functions, including expenses related to
the expansion and harmonization of IT systems within the Group.
Accordingly, Corporate and Other has no sales to report. Gains or
losses on operational currency hedging are also disclosed under
Corporate and Other.
CORPORATE AND OTHER →
KEY FIGURES
€ million 2014 2013
Change
in %
Operating result (EBIT)– 245.1 – 259.7 – 5.6
EBITDA – 226.0 – 244.0 – 7.3
EBITDA pre one-time items –166.0 –196.7 –15.5
Business free cash flow – 214.7 – 281.2 – 23.7
In 2014, administration expenses reported under Corporate and
Other decreased to €195 million (2013: €206 million). The net
amount of operating expenses and income improved to €– 42 mil-
lion (2013: €– 47 million), as increased operating foreign currency
gains more than offset the higher level of one-time items. In 2014,
the foreign currency result showed income of €53 million (2013:
€32 million) and one-time expenses amounted to €60 million
(2013: €47 million).
Overall, EBIT improved 5.6 % to €– 245 million (2013: €– 260 mil-
lion) and EBITDA by 7.3 % to €– 226 million (2013: €– 244 mil-
lion). Adjusted for one-time effects, EBITDA pre one-time items
totaled €–166 million in 2014(2013: €–197 million). The business
free cash flow reported under Corporate and Other amounted to
€– 215 million in 2014 (2013: €– 281 million).