Financial definitions Earnings measurements Operating result (EBIT) Operating result before financial items. EBITA Operating result before amortization of intangible assets. Margin measurements Gross margin Gross profit/loss as a percentage of net sales. Operating margin Operating result as a percentage of net sales Capital structure Net debt Interest-bearing liabilities less cash and equivalents and financial assets. Net debt/equity ratio Net debt divided by equity. Working capital Inventories are current receivables less current liabilities, excluding provisions and interest-bearing liabilities. This measure represents an average for each period based on quarterly data. Capital employed Equity plus interest-bearing liabilities. This measure represents an average for each period based on quarterly data. Operating capital (excluding intangible assets) Tangible assets, participations in joint ventures, deferred tax assetsand working capital less deferred tax liability and provisions. This measure represents an average for each period based on quarterly data. Working capital tied-up Average working capital, as a percentage of annually adjusted net sales. Return Return on capital employed Annually adjusted operating result, as a percentage of average capital employed. Return on operating capital (excl. intangible assets), % Annually adjusted EBITA, as a percentage of average operating capital (excluding intangible assets). Return on shareholders’ equity Annually adjusted net profit/loss for the period as a percentage of equity. Per share data Earnings per share Profit/loss for the period divided by the average number of shares outstanding during the period. Earnings per share after dilution Profit/loss for the period divided by the average number of shares outstanding during the period after dilution. Equity per share Equity divided by the number of shares outstanding at the end of the period. Equity per share after dilution Equity divided by the number of shares outstanding at the end of the period. Cash flow per share from operating activities Cash flow from operating activities divided by the average number of shares for the period. Shares outstanding at the end of the period Shares outstanding at the end of the period adjusted for rights issues and share splits. Shares outstanding at the end of the period after dilution Number of shares at the end of the period adjusted for rights issues and share splits. Any dilution has been taken into account. Average number of shares Weighted average number of shares outstanding during the period, adjusted for rights issues and share splits. Average number of shares after dilution Weighted average number of shares outstanding during the period, adjusted for rights issues and share splits. Any dilution has been taken into account. Other Average number of employees The number of employees recalculated as full-time positions and as an average for reporting period. Supplementary disclosures Growth Sales growth Change in the net sales of the business compared with the previous period, in percent. Adjusted earnings measurements Underlying operating result (uEBIT) The operating result (EBIT) before non-recurring items, adjusted for inventory gains and losses (deductions for gains and additions for losses). Underlying EBITA EBITA before non-recurring items, adjusted for inventory losses and inventory gains (deductions for gains and additions for losses). Adjusted margin measurements Underlying gross margin Underlying gross profit as a percentage of net sales. The underlying gross profit/loss is the reported gross profit/loss adjusted for inventory gains and losses (deductions for gains and additions for losses). Underlying operating margin Underlying operating result (uEBIT) as a percentage of net sales. Underlying EBITA margin Underlying EBITA as a percentage of net sales. Adjusted return Underlying return on operating capital (excluding intangible assets) Annualized underlying EBITA as a percentage of average operating capital excluding goodwill and other intangible assets. Adjusted capital structure Net debt/underlying EBITDA Annualized net debt divided by underlying EBITDA. Underlying EBITDA is EBITDA before non-recurring items and inventory gains and losses (deductions for gains and additions for losses). EBITDA is the operating result before amortization. Other Inventory gains and losses The difference between the cost of goods sold at cost and the cost of goods sold at replacement price. Shipped volumes BE Group products sold during the period in thousands of tonnes. Average sales prices Net sales divided by shipped volumes.