Definitions of key figures

Average number of employees

Total number of working hours of all employees, divided by the normal total working time over the year.

Basic earnings/loss per share in SEK

Profit/loss after taxes less non-controlling interests divided by the ordinary number of shares.

Currency impact on operating profit

The effects of both translation and transaction flows based on current assumptions and exchange rates and compared to the corresponding period last year.

Debt

Loans and net provisions for post-employment benefits.

Diluted earnings per share

Diluted earnings per share is calculated using the weighted average number of shares outstanding during the period adjusted for all potential dilutive ordinary shares.

Equity/assets ratio

Equity as a percentage of total assets at year-end.

Equity per share

Equity excluding non-controlling interests divided by the ordinary number of shares.

EBITA

(Earnings before interest, taxes and amortization) Operating profit before amortizations.

EBITDA

(Earnings before interest, taxes, depreciation and amortization) Operating profit before depreciations, amortizations, and impairments.

Gearing

Loans plus net provisions for postemployment benefits, as a percentage of the sum of loans, net provisions for post-employment benefits and equity, all at year-end.

Key figures

The majority of the subsidiaries within the Group report the results of their operations and financial position twelve times a year. Most of the key figures presented in the Annual Report have been calculated using average values based on these reports. Consequently, the calculation of these key figures using the year-end values presented may give slightly different results.

Net debt

Loans and net provisions for postemployment benefits less short-term financial assets excluding derivatives.

Net debt/equity

Total short-term financial assets excluding derivatives minus loans and provisions for post-employment benefits, as a percentage of equity, all at year-end.

Net working capital

Trade receivables plus inventory minus trade payables as a per cent of a 12-month rolling net sales.

Operating margin

Operating profit/loss, as a percentage of net sales.

Organic sales

Volume + price/mix

Registered number of employees

Total number of employees included in SKF’s payroll at the year-end.

ROCE (Return on capital employed

Operating profit/loss plus interest income, as a percentage of twelve months rolling average of total assets less the average of non-interest bearing liabilities.

ROE (Return on equity)

Profit/loss after taxes as a percentage of twelve months rolling average of equity.

SKF demand outlook

The demand outlook for SKFs products and services represents management’s best estimate based on current information about the future demand from our customers. The demand outlook is the expected volume development in the markets where our customers operate.

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