Glossary

Accident frequency rate

Number of lost time accidents per million hours worked. Accidents on the road to and from work are excluded.

Accident severity rate

Number of calendar days lost per thousand hours work. Accidents on the road to and from work are excluded.

Adjusted EBIT

EBIT -  EBIT adjustments .

Adjusted EBIT margin

Adjusted EBIT of fully consolidated companies / revenues excluding metals.

Adjusted EBITDA

Adjusted EBIT + adjusted depreciation and amortization of fully consolidated companies.

Adjusted EBITDA margin

Adjusted EBITDA of fully consolidated companies / revenues excluding metals.

 Adjusted EPS (Earnings per share)

Adjusted net earnings, Group share / average number of (issued shares – treasury shares).

Adjusted EPS, basic

Adjusted net earnings, Group share / average number of outstanding shares.

Adjusted EPS, diluted

Adjusted 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).

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.

Average number of shares outstanding, basic

Average number of outstanding shares.

Average number of shares outstanding, diluted

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.

Capital employed

Fixed Assets + Working Capital (Inventories + adjusted Trade & Other Receivables – adjusted Trade & Other Payables) – Translation Reserves – Current & Non-Current provisions other than provisions for Employee Benefits.

Capital expenditure

Capitalized investments in tangible and intangible assets, excluding capitalized R&D costs.

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.

EBIT adjustments

Includes adjusted 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. This includes a.o. adjustments related to the sale of business activities or environmental provisions related to historic pollution and environmental remediation of closed sites.

Effective adjusted tax rate

Adjusted tax charge / adjusted profit (loss) before income tax of fully consolidated companies.

Gearing ratio

Net financial debt / (net financial debt + equity of the Group).

Market capitalization

Closing price x total number of outstanding shares.

Net cashflow before financing

Net operating cashflow – net cashflow generated by (used in) investing activities.

Net financial debt

Non-current financial debt + current financial debt - cash and cash equivalents. 

Net debt / LTM adj. EBITDA

Net financial debt divided by adjusted EBITDA of the last 12 months.

Outstanding shares

Issued shares– treasury shares.

Return on capital employed (ROCE)

Adjusted EBIT / average capital employed.

Revenues (excluding metal)

All revenue elements - value of purchased metals.

R&D expenditure

Gross research and development charges, including capitalised costs.The reported R&D figures exclude R&D of associates.

The above definitions cover Umicore’s Alternative Performance Measures (“APMs”).

Revenues:

In order to neutralize distortions from fluctuating metal prices and precious metal prices in particular, Umicore has consistently used revenues excluding the value of purchased metals rather than turnover (which include the value of the purchased metals) to track its performance. This is an industry practice followed by direct peers with similar activities.