| Term | Definition |
|---|---|
| Added value | Operating result (EBIT) + remuneration, social security and pension charges + depreciation, amortization, impairment of assets and negative goodwill. |
| Associates | Companies in which Bekaert has a significant influence, generally reflected by an interest of at least 20%. Associates are accounted for using the equity method. |
| Book value per share | Equity attributable to the Group divided by number of shares outstanding at balance sheet date. |
| Capital employed (CE) | Working capital + net intangible assets + net goodwill + net property, plant and equipment + net RoU Property, plant and equipment. The weighted average CE is weighted by the number of periods that an entity has contributed to the consolidated result. |
| Capital ratio (financial autonomy) | Equity relative to total assets. |
| Current ratio | Current assets to Current liabilities |
| Combined figures | Sum of consolidated companies + 100% of joint ventures and associates after elimination of intercompany transactions (if any). Examples: sales, capital expenditure, number of employees. |
| Dividend yield | Gross dividend as a percentage of the share price on 31 December. |
| EBIT | Operating result (earnings before interest and taxation). |
| EBIT - Underlying (EBITu) | EBIT before operating income and expenses that are related to restructuring programs, impairment losses, business combinations, business disposals, environmental provisions or other events and transactions that have a material one-off effect that is not inherent to the business. |
| EBIT interest coverage | Operating result (EBIT) divided by net interest expense. |
| EBITDA | Operating result (EBIT) + depreciation, amortization, impairment of assets and negative goodwill. |
| EBITDA - underlying (EBITDAu) | EBITDA before operating income and expenses that are related to restructuring programs, impairment losses, business combinations, business disposals, environmental provisions or other events and transactions that have a material one-off effect that is not inherent to the business. |
| Equity method | Method of accounting whereby an investment (in a joint venture or an associate) is initially recognized at cost and subsequently adjusted for any changes in the investor’s share of the joint venture’s or associate’s net assets (i.e. equity). The income statement reflects the investor’s share in the net result of the investee. |
| Free Cash Flow (FCF) | Cash flows from Operating activities - capex + dividends received - net interest paid. |
| Gearing | Net debt relative to equity |
| Joint ventures | Companies under joint control in which Bekaert generally has an interest of approximately 50%. Joint ventures are accounted for using the equity method. |
| Margin on sales | EBIT, EBIT-underlying, EBITDA and EBITDA-underlying on sales. |
| Net capitalization | Net debt + equity |
| Net debt | Interest-bearing debt net of current loans, non-current financial receivables and cash guarantees, short-term deposits, cash and cash equivalents. |
| Net debt on EBITDA | Net debt divided by EBITDA. |
| Operating free cash flow | Cash flows from Operating activities – capex (net of disposals of fixed assets). |
| Operating working capital | Inventories + trade receivables + bills of exchange received + advanced paid - trade payables - advances received - remuneration and social security payables - employmentrelated taxes. |
| Pay-out ratio | Gross dividend as a percentage of result for the period attributable to the Group. |
| Price-earnings ratio | Share price divided by result for the period attributable to the Group per share. |
| Return on capital employed (ROCE) | Operating result (EBIT) relative to the weighted average capital employed. |
| Return on equity (ROE) | Result for the period relative to average equity. |
| ROIC | NOPLAT on invested capital. NOPLAT is EBIT after tax (using a target tax rate of 27%), and includes the Group’s share in the NOPLAT of its joint ventures and associates. Invested capital is the aggregate of total equity, net debt, non-current employee benefit obligations and non-current other provisions, and includes the Group’s share in the net debt of its joint ventures and associates. |
| Subsidiaries | Companies in which Bekaert exercises control and generally has an interest of more than 50%. |
| Underlying EPS | (EBITu + interest income - interest expense +/- other financial income and expense - income tax + share in the result of JVs and associates - result attributable to non-controlling interests) divided by the weighted average nr of ordinary shares (excluding treasury shares). |
| Velocity | Velocity is calculated by taking the sum of the daily division of the number of shares traded by the outstanding number of shares existing the same day, and that for the twelve previous months. |
| Velocity (adjusted) | Velocity divided by the free-float band of 60% end 2007. |
| WACC | Cost of debt and cost of equity weighted with a target gearing of 50% (net debt/equity structure) after tax. |
| Operating Working capital | Inventories + trade receivables + bills of exchange received + advanced paid - trade payables - advances received - remuneration and social security payables - employment-related taxes. |
| Weighted average cost of capital (WACC) | Cost of debt and cost of equity weighted with a target gearing of 50% (net debt/equity structure) after tax. |
| Internal Bekaert Management reporting | Focusing on the operational performance of the industrial companies of the Group, leaving out financial companies and other non-industrial companies, in a flash approach and as such not including all consolidation entries reflected in the full hard-close consolidation on which the annual report is based. |
