Definitions

Earnings before interest, tax and accounting effects arising from business combinations, referring to amortizations, depreciations and impairments, adjusted for items affecting comparability.

Earnings before interest, tax and accounting effects arising from business combinations, referring to amortizations, depreciations and impairments, adjusted for items affecting comparability, in relation to sales.

Profit/loss for the period adjusted for items affecting comparability attributable to equity holders of the parent company divided by the average number of shares outstanding during the year.

Profit/loss for the period adjusted for items affecting comparability attributable to equity holders of the parent company divided by the average number of shares outstanding during the year including shares that will be allotted in the long-term incentive programs.

Profit for the period adjusted for items affecting comparability and accounting effects arising from business combinations, referring to amortizations, depreciations and impairments, net of tax, attributable to equity holders of the parent company, divided by the average number of shares outstanding during the year including shares that will be allotted in the long-term incentive programs.

Profit before tax adjusted from items affecting comparability.

Capital employed is defined as total net working capital plus tangible and intangible assets, including those classified as asset held for sale, other current assets (incl. cash and cash equivalents) less other current liabilities.

Rolling 12 months revenue divided by the average total assets in the five last quarters.

Free operating cash flow, adjusted for items affecting comparability divided by adjusted EBITA.

Profit/loss for the year attributable to equity holders of the Parent Company divided by the average number of shares outstanding during the year.

Earnings before interest, tax and accounting effects arising from business combinations, referring to amortizations, depreciations and impairments.

Operating profit less depreciation, amortization and impairments.

Total equity in relation to total capital.

Interest-bearing current and non-current liabilities, excluding net pension liabilities and leases, less cash equivalents divided by rolling 12 months EBITDA.

Earnings before interest, taxes and depreciation adjusted for non-cash items and adjusted for cash items related to acquisitions not considered operational plus the change in net working capital minus investments and disposals of rental equipment and tangible and intangible assets.

EBITDA adjusted for non-cash items minus net interest minus current tax expense.

Sandvik reports EBITA, EBIT, profit before tax and earnings per share adjusted for items affecting comparability. IAC includes capital gains and losses from divestments and larger restructuring initiatives, impairments, capital gains and losses from divestments of financial assets, M&A related costs as well as other material items having a significant impact on the comparability.

Interest-bearing current and non-current debts less cash and cash equivalents divided by EBITDA.

Interest-bearing current and non-current liabilities, including net pension liabilities and leases, less cash and cash equivalents.

Interest-bearing current and non-current debts, including net pension liabilities, less cash and cash equivalents divided by total equity.

Total of inventories, trade receivables, account payables and other current non-interest-bearing receivables and liabilities, including those classified as assets and liabilities held for sale/distribution, but excluding tax assets and tax liabilities and provisions.

Net working capital on an average 12 month rolling basis divided by 12 month rolling revenues.

Order intake for a period refers to the value of all orders received for immediate delivery and those orders for future delivery for which delivery dates and quantities have been confirmed. General sales agreements are included only when they have been finally agreed upon and confirmed. Service contracts are included in the order intake with the full binding contract amount upon signing.

Change in order intake and revenues after adjustments for exchange rate effects and structural changes such as divestments and acquisitions. Sandvik generates the majority of its revenues in currencies other than in the reporting currency (i.e. SEK, Swedish Krona). Organic growth is used to analyze the underlying sales performance in the Group.

Earnings before interest and taxes plus financial income, on a 12 month rolling basis, as a percentage of an average rolling 12 months capital employed.

Earnings before interest and taxes, adjusted for accounting effects arising from business combinations, referring to amortizations, depreciations and impairments, plus financial income, on a 12 month rolling basis, as a percentage of an average rolling 12 months capital employed.

Annual

12 month rolling profit/loss as a percentage of the average shareholders' equity over the last four quarters.

Quarterly

Profit/loss in the most recent quarter adjusted to annual rate, as a percentage of the average shareholders' equity in the most recent quarter.

Earnings before interest and tax plus financial income, as a percentage of a four quarter average total capital.

Consolidated net profit/loss for the year as a percentage of average total equity.

Total number of injuries per million worked hours.

Number of lost time injuries per million worked hours.

Greenhouse gas emissions resulting from the combustion of fossil fuels in sources owned or controlled by Sandvik, such as vehicles, furnaces, and other equipment. These are classified as scope 1 emissions under the Greenhouse Gas Protocol.

Greenhouse gas emissions associated with the generation of purchased or acquired electricity, steam, heating, and cooling. These are classified as scope 2 emissions under the Greenhouse Gas Protocol.

Waste generated by Sandvik that is directed to recovery operations, such as reuse or recycling.

Waste generated by Sandvik that is not directed to recovery operations but sent to incineration or to landfill.