Corporate and Other comprises administrative expenses for central Group functions that cannot be directly allocated to the business sectors, 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 as well as research and development costs spanning business sectors.
Corporate and other
Key figures |
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Change |
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€ million |
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2020 |
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2019 |
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€ million |
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% |
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Operating result (EBIT)1 |
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-658 |
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-617 |
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-41 |
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6.6% |
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EBITDA1 |
|
-573 |
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-537 |
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-37 |
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6.8% |
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EBITDA pre1 |
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-495 |
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-469 |
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-26 |
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5.5% |
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Business free cash flow1 |
|
-571 |
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-536 |
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-35 |
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6.6% |
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After eliminating adjustments, administrative costs increased by 3.1% to € 311 million in fiscal 2020 (2019: € 302 million). Cross-business research and development costs amounting to € 62 million (2019: € 59 million), such as expenses for the Innovation Center, were allocated to Corporate. After eliminating adjustments, other operating expenses (net) increased to € -197 million (2019: € -167 million). After eliminating depreciation, amortization, and adjustments, EBITDA pre amounted to € -495 million in 2020 (2019: € -469 million). The increase in negative business free cash flow to € -571 million (2019: € -536 million) was largely due to the development of EBITDA pre.