Alleima uses certain alternative performance measures that are not defined by IFRS. These measures are considered to be important performance indicators of the operating performance and liquidity for Alleima. They should not be considered a substitute to Alleima’s financial statements prepared in accordance with IFRS. Alleima’s definitions of these measures are described below, and as other companies may calculate non IFRS measures differently, these measures are therefore not always comparable to similar measures used by other companies.
|Adjusted earnings per share||Adjusted profit for the period divided by average number of shares.|
|Adjusted EBIT||EBIT excluding items affecting comparability and metal price effects.|
|Adjusted EBIT margin, %||Adjusted EBIT in relation to revenues.|
|Adjusted EBITDA||EBIT before depreciation, amortization and impairments, adjusted for items affecting comparability and metal price effects.|
|Adjusted EBITDA margin, %||Adjusted EBITDA in relation to revenues.|
|Adjusted gross margin, %||Revenues less cost of goods sold, adjusted for items affecting comparability and metal price effects, in relation to revenues.|
|Adjusted profit for the period||Profit for the period, adjusted for items affecting comparability, metal price effects and income tax effects.|
|Capex||Acquisitions and sale of tangible and intangible assets.|
|Capex in relation to revenues, %||Capex divided by revenues.|
|EBIT margin, %||EBIT in relation to revenues.|
|EBITDA||EBIT less depreciation, amortization and impairments.|
|EBITDA margin, %||EBITDA in relation to revenues.|
|Financial net debt (+)||Net debt, excluding net pension and lease liabilities.|
|Free operating cash flow||EBITDA adjusted for non-cash items plus the change in net working capital minus investments and disposals of tangible and intangible assets and less the amortization of lease liabilities.|
|Gross profit||Revenues less costs of goods sold.|
|Gross profit margin, %||Revenues less costs of goods sold in relation to revenues.|
|Items affecting comparability||Capital gains and losses from divestments and larger restructuring initiatives, impairments, capital gains and losses from divestments of financial assets as well as other material items having a significant impact on the comparability.|
|Metal price effects||Metal price effect on the operating profit during a particular period from changes in alloy prices arising from the timing difference between the purchase (as included in cost of goods sold) and the sale of an alloy (as included in the revenue) when alloy surcharges are applied.|
|Net debt (+)||Interest-bearing current and non-current debts, including net pension and lease liability, less cash and cash equivalents.|
|Net debt/Adjusted EBITDA||Net debt divided by adjusted EBITDA.|
|Net debt/Equity||Net debt divided by equity.|
|Net working capital||Total of inventories, trade receivables, account payables and other current non-interest-bearing receivables and liabilities, including those classified as liabilities and assets held for sale, but excluding tax assets and liabilities and provisions.|
|Net working capital, %||The quarterly value is the average working capital for the latest quarter divided by annualized revenues for the last quarter. The annual value is the average working capital for four quarters divided by revenues for the full year.|
|Order intake||Order intake for a period refers to all orders received for immediate delivery and those orders for future delivery for which delivery dates and quantities have been confirmed.|
|Order intake in relation to revenues, %||The order intake of the period divided by the revenues of the period.|
|Organic growth, %||Change in revenues after adjustments for exchange rate effects and structural changes such as divestments and acquisitions and alloy surcharges.|
|Return on capital employed, %||Annualized operating profit/loss plus financial income, adjusted for derivatives, in relation to a four quarter average capital employed. Capital employed is defined as total capital less non-interest bearing debt.|
|Bars||Stainless steel cast as a round bar for machining in a wide range of grades, including duplex and super-duplex stainless steel.|
|Billets||Steel cast in compact round shape. Available in a wide range of materials, such as stainless steels, duplex stainless steels and nickel alloys.|
|Bloom||Steel cast in compact square shape. Available in a wide range of materials, such as stainless steels, duplex stainless steels and nickel alloys.|
|Cladding tubes||Cladding tubes are used mainly as fuel tubes, with a group of fuel rods containing the fissionable material (uranium) providing fuel for the nuclear reactor.|
|Composite tubing||Composite tube (compound tube) suitable for applications where the conditions outside and inside the tube require material properties that cannot be met by one material only.
The composite tube consists of two different alloys metallurgically bonded together to achieve good thermal transfer properties. One alloy is used to withstand corrosion, while the other is often an approved pressure vessel material.
|Compressor valve steel||Strip steel grades with a very high fatigue resistance, especially designed to meet the tough demands on compressor valves.|
|Corrosion Resistant Alloy (CRA)||Grade with high mechanical strength and excellent corrosion resistance, e.g. to pitting and crevice corrosion, stress corrosion cracking (SCC), acid and caustic environments, erosion-corrosion.|
|GDI automotive tubing||Seamless stainless steel tubing developed for gasoline direct injection (GDI)|
|High-pressure tubing||Seamless high-pressure tubes for a variety of high-pressure applications using liquid or gas as the pressure medium, such as hydraulic installations, test benches and water-jet cutting equipment.|
|Hollow bar||Hollow bar is a thick-wallet stainless steel bar often used for machining components.|
|Ingots||Ingots are a mass of steel that has been cast into a size and shape (such as a bar, plate, or sheet) that is convenient to store, transport, and work into a semi-finished or finished product.|
|Kanthal® APM||Kanthal® APM is an advanced powder-metallurgical, dispersion-strengthened, ferritic iron-chromium-aluminum alloy (FeCrAl alloy) for use at temperatures up to 1,425 degrees Celsius (2,600 degrees Fahrenheit). The alloy is characterized by exceptionally good form stability and oxidation resistance.|
|Kanthal® APMT||Kanthal® APMT is an advanced powder metallurgical, dispersion strengthened, ferritic iron-chromium-aluminum-molybdenum alloy (FeCrAlMo alloy) recommended for continuous use up to 1,250 degrees Celsius (2,280 degrees Fahrenheit) in oxidizing and reducing environments.|
|OCTG||Oil Country Tubular Goods (OCTG) refers to the casing, tubing, piping and pipelines used in the petroleum industry.|
|Umbilical tubes||Umbilical tubes are the lifeline between surface installations and subsea equipment, and link surface and seafloor oil and gas equipment for controls, power or heat.
Umbilical tubes are designed for high systematic pressure at great depths, where thinner walls and high strength are required.
|Term / Acronym||Meaning||Definition|
|HEALTH AND SAFETY|
|EH||Exposure Hours||Number of hours worked in the time-period by the workforce. Refers to the amount of time where the workforce is exposed to the risk of a work-related incident.|
|FI||Fatal Injury||An Injury where the injured person dies as a consequence of the incident.|
|LTI||Lost Time Injury||An Injury that results in one or more Days Lost from work|
|LTIFR||Lost Time Injury Frequency Rate||(FI + LTI) * NF / EH|
|MTI||Medical Treatment Injury||An Injury where the injured person is not able to return to their Full Normal Duties immediately following any treatment for that Injury|
|NF||Normalization Factor||A numerical calculation factor used only to make the Frequency Rate numbers easier to handle.
Different NF values are used around the world e.g., 1,000,000 used in Europe and 200,000 used in the USA.
Alleima will use NF = 1,000,000 as its standard value.
|RWI||Restricted Work Injury||An injury where the injured person does not have one or more Days Lost but would only be able to perform some of their Normal Duties.|
|TRI||Total Recordable Injuries||This indicator is the sum of the number of “recordable” injuries: Fatal Injuries (FI), Lost Time Injuries (LTI), Restricted Work Injuries (RWI) and Medical Treatment Injuries (MTI) i.e., it is not an independent classification.
TRI = FI + LTI + RWI + MTI
Other accidents that are not defined and included above belong to the category minor injuries and are characterized as having less severe consequence. These are the so called first-aid treatment incidents. The injured person is able immediately return to their full normal duties after receiving treatment.
Minor injuries are also recorded in our reporting, but not included in the term TRI.
|TRIFR||Total Recordable Injury Frequency Rate||TRI * NF / EH|
|CO2e||CO2 equivalents||The universal unit of measurement to indicate the global warming potential (GWP) of each of the six greenhouse gases, expressed in terms of the GWP of one unit of carbon dioxide. It is used to evaluate releasing (or avoiding releasing) different greenhouse gases against a common basis – CO2e.|
|GHG||Greenhouse Gas||Gases that are found to trap heat in the atmosphere. Common GHGs are carbon dioxide (CO2); methane (CH4); nitrous oxide (N2O) plus fluorinated gases.|
|Scope 1||Category of CO2 emission representing own direct operations||Further separated in fuels and raw materials-based emissions.
- Fuels refer to the combustion of fuels for the purpose using its energy content. For example, a furnace that use liquefied gas to create heat.
- Raw materials-based emission refers to the processes in which carbon oxidation occurs e.g., consumption of reducing agent, carbon content of crude iron/ferroalloy
|Scope 2||Category of CO2 emission representing indirect emissions||Consumption of purchased electricity, steam, heating & cooling|
|Primary Material||Non-recycled material||Metals from virgin mineral sources, e.g., various alloys|
|Recycled Rate (%)||Rate of recycled content in manufactured steel||Secondary Material / (Primary Material + Secondary Material) x 100|
|Secondary Material||Recycled material||Metals from secondary sources e.g., scrap metal that can be recirculated in the steel manufacturing process|
|DIVERSITY, INCLUSION AND BELONGING|
|Share of female managers||Rate of female managers in relation to total number of managers||Refers to the share (%) of managers that identify themselves as female in relation to total number of managers in the workforce.|
 The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard. Revised edition. (https://ghgprotocol.org/sites/default/files/standards/ghg-protocol-revised.pdf)