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Glossary

Financial definitions

EBIT Operating profit (loss) of fully consolidated companies, including income from other financial investments + Group share in net profit (loss) of companies accounted for under equity method.
Non-recurring EBIT Includes non-recurring items related to restructuring measures, impairment of assets, and other income or expenses arising from events or transactions that are clearly distinct from the ordinary activities of the company. Any write-downs on those metal inventories permanently tied up in operations are part of the non-recurring EBIT of the business groups.
IAS 39 effect Non-cash timing differences in revenue recognition in case of non-application of or non-possibility of obtaining IAS hedge accounting to: a) Transactional hedges, which implies that hedged items can no longer be measured at fair value, or b) Structural hedges, which implies that the fair value of the related hedging instruments are recognized in the income statement instead of the equity and this prior to the occurance of the underlying forecasted or committed transactions, or c) Derivatives embedded in executory contracts , which implies that the change in fair value on the embedded derivatives must be recognized in the income statement as opposed to the executory component where the fair value change in the income statement cannot be recognized.
Recurring EBIT EBIT – non-recurring EBIT – IAS 39 effect.
Recurring EBIT margin Recurring EBIT of fully consolidated companies / revenues excluding metals.
Recurring EBITDA Recurring EBIT + recurring depreciation and amortization of fully consolidated companies.
Revenues (excluding metal) All revenue elements – value of purchased metals.
Recurring effective tax rate Recurring tax charge / recurring profit (loss) before income tax of fully consolidated companies.
Return on Capital Employed (ROCE) Recurring EBIT / average capital employed.
Capital employed Total equity (excluding fair value reserves) + net financial debt + provisions for employee benefits – deferred tax assets and liabilities – IAS 39 impact.
Average capital employed For half years: average of capital employed at start and end of the period; for full year: average of the half year averages.
Capital expenditure Capitalized investments in tangible and intangible assets.
Cash-flow before financing Net cash generated by (used in) operating activities + net cash generated by (used in) investing activities.
Net financial debt Non current financial debt + current financial debt – cash and cash equivalents.
Gearing ratio Net financial debt / (net financial debt + equity of the Group).
R&D expenditure Gross research and development charges, including capitalised costs.
Recurring EPS Recurring net earnings, Group share / average number of outstanding shares.
EPS, basic Net earnings, Group share / average number of outstanding shares.
EPS, diluted Net earnings, Group share / (average number of outstanding shares + number of potential new shares to be issued under the existing stock option plans x dilution impact of the stock option plans).