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Glossary of analyst model terms

Apparent steel selling prices Defined as sales divided by steel shipments
Average steel selling prices Prices based on steel sales alone
Crude steel The first solid steel product upon solidification of liquid steel, including ingots from conventional mills and semis (e.g., slab, billet and blooms) from continuous casters
Ebitda Defined as operating income plus depreciation, impairment expenses and exceptional items
Ebitda margin Defined as Ebitda divided by sales
Enterprise value (EV) Calculated as market capitalisation plus net financial debt plus minority interest less investments/others
Invested capital (IC) Calculated as intangibles assets plus plant, property and equipment (PPE), inventory, trade accounts receivable and trade accounts payable
Market capitalisation Calculated as weighted average common shares outstanding multiplied by share price
Metric tonne All shipment figures are provided in metric tonnes (equal to 1,000 kilograms or 2,204.62 pounds)
Operating income per tonne Defined as operating income divided by steel shipments
Operating margin Defined as operating Income divided by sales
ROIC (%) Calculated as operating income after tax divided by invested capital
RoE (%): Calculated as net income divided by group share of shareholders’ equity
Sales Includes steel and non-steel sales and related transportation costs
Steel products Finished and semi-finished steel products, excluding direct reduced iron (DRI)
Strategic contract Defined as a contract that has business conditions better than the open market in the long term
Tonnes or MT Metric tonnes, used in measurements involving iron ore, iron ore pellets, DRI, hot metal, coke, coal, pig iron and scrap (a metric tonne is equal to 1,000 kilograms or 2,204.62 pounds)