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Corporate and Other 

Corporate and Other comprises Group administration 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
€ million 2019 2018 € million ­
Operating result (EBIT)1 -617 -548 -69 12.6%
EBITDA1 -537 -488 -48 9.9%
EBITDA pre1 -469 -381 -88 23.0%
Business free cash flow1 -536 -497 -39 7.9%
1 Not defined by International Financial Reporting Standards (IFRSs).

After eliminating adjustments, administrative costs declined to €302 million in fiscal 2019 (2018: €320 million). Cross-business research and development costs amounting to €59 million (2018: €47 million), such as operating expenses for the Innovation Center, were allocated to Corporate. Other operating expenses (net) rose to €–167 million (2018: € –90 million), due primarily to the development of the foreign exchange result. A reversal of an impairment loss (€ 37 million) for receivables in connection with contractual refund claims from the sale of the Generics business in 2007 had a positive effect on the operating result. After eliminating depreciation, amortization, and adjustments, EBITDA pre amounted to € –469 million in 2019 (2018: € –381 million). The increase in negative business free cash flow to € –536 million (2018: € –497 million) was largely the outcome of the development of EBITDA pre as well as lower investments.