REC Silicon Annual Report 2019

REC Silicon Annual Report 2019 103 DEFINITIONOFALTERNATIVEPERFORMANCEMEASURES An Alternative Performance Measure (APM) is a measure of historic or future financial performance, financial position, or cash flows other than a financial measure defined or specified in the applicable financial reporting framework. The Company has identified the following APMs used in reporting: EBIT EBIT is an acronym for Earnings Before Tax and represents profit/loss from total operations excluding income tax expense/benefit, net financial items, and share of profit/loss from investments in associates. EBIT is reflected on the consolidated statement of income on the line titled EBIT. EBIT has been reported as a loss of USD 82.6million for the year ended December 31, 2019 and a loss of USD 407.1million for the year ended December 31, 2018.. EBITMargin EBITmargin is calculated by dividing EBIT by revenues. EBIT and revenues are reflected on the Company’s statement of income, in note 5 Segment Information, and in the financial highlight tables in this report in lines titled similarly. EBITmargin has been calculated and is reported in the financial highlight tables for REC Silicon Group. EBITDA EBITDA is an acronym for Earnings Before Tax, Depreciation, and Amortization. EBITDA is EBIT excluding depreciation, amortization and impairment. EBITDA is reflected on the consolidated statement of income on the line titled EBITDA. EBITDA has been reported as a loss of USD 12.9million for the year ended December 31, 2019 and a loss of USD 4.9million for the year ended December 31, 2018. EBITDA Margin EBITDAmargin is calculated by dividing EBITDA by revenues. EBITDA and revenues are reflected on the Company’s statement of income, in note 5 Segment Information, and in the financial highlight tables in this report in lines similarly titled. EBITDAmargin has been calculated and is reported in the financial highlight tables for RECSilicon Group, in the key financials table for each operating segment. EBITDA Contribution EBITDA contribution is used to describe the contribution of each of the operating segments, other, and eliminations to the Company’s total EBITDA. For the operating segments, EBITDA contributions represents revenues less cost of manufacturing excluding depreciation and amortization. For other, EBITDA contribution represents primarily operating costs. A table reconciling the EBITDA contribution of each operating segment along with other and eliminations to the Company’s total EBITDA can be found in note 5 Segment Information EBIT Contribution EBITcontribution is used to describe the contribution of each of the operating segments, other, and eliminations to the Company’s total EBIT. For the operating segments, EBITcontributions represents revenues less cost of manufacturing including depreciation and amortization. For other, EBITcontribution represents primarily operating costs. A table reconciling the EBITcontribution of each operating segment alongwith other and eliminations to the Company’s total EBITcan be found in note 5Segment Information. Equity Ratio The equity ratio is calculated by dividing total shareholders’ equity by total assets. Total shareholders’ equity and total assets are reflected on lines similarly titled on the Company’s statement of financial position. At December 31, 2019, the equity ratio is 0.3 percent and is calculated by dividing USD 0.8million total shareholders’ equity by USD 290.6million in total assets. At December 31, 2018, the equity ratio is 30 percent and is calculated by dividing USD 106.7million total shareholders’ equity by USD 357.3million in total assets.