N O TE 3 Defnitions calculation o f k ey ratio s and e x change rat e s DEFINITIONS St atement of income accor din g to Securit as fnancial model Production e xpenses 1 W a g es and related cos ts the cos t of equipment used when per formin g professional duties and all other cos ts directly related the per formance of ser vices in v oiced Sellin g and adminis tr ativ e e xpenses 1 All cos ts of sellin g adminis tr ation and mana g ement includin g br anch ofce e xpenses The primar y function of the br anch ofces is to pro vide the pro duction with adminis tr ativ e support as w ell as to ser v e as a sales channel Gross mar g in Gross income as a percent a g e of tot al sales Oper atin g income before amortization Oper atin g income before amortization and impairment of acquisition related int an g ible assets acquisition related cos ts and items afectin g compar abilit y but includin g amortization and depreciation of other int an g ible assets buildin g s and land and machiner y and equipment Oper atin g mar g in Oper atin g income before amortization as a percent a g e of tot al sales Oper atin g income after amortization Oper atin g income after amortization and impairment of acquisition related int an g ible assets acquisition related cos ts items afectin g compar abilit y and includin g amortization and depreciation of other int an g ible assets buildin g s and land and machiner y and equipment Adjus ted income Oper atin g income before amortization adjus ted for fnancial income and e xpenses e x cludin g re v aluation of fnancial ins truments accor din g to I A S 3 9 and current t ax es Net mar g in Income before t ax es as a percent a g e of tot al sales R eal chan g e Chan g e adjus ted for chan g es in e x chan g e r ates St atement of cash fo w accor din g to Securit as fnancial model Cash fo w from oper atin g activities Oper atin g income before amortization adjus ted for depreciation amortization less capit al e xpenditures in noncurrent t an g ible and int an g ible assets e x cludin g acquisition of subsidiaries chan g e in accounts receiv able and chan g es in other oper atin g capit al emplo y ed F ree cash fo w Cash fo w from oper atin g activities adjus ted for fnancial income and e xpenses paid and current t ax es paid Cash fo w for the y ear 1 F ree cash fo w adjus ted for acquisition of subsidiaries acquisition related cos ts paid cash fo w from items afectin g compar abilit y dividends new issues and chan g e in interes t bearin g net debt e x cludin g liquid funds B alance sheet accor din g to Securit as fnancial model Oper atin g capit al emplo y ed Capit al emplo y ed less g oodwill acquisition related int an g ible assets and shares in associated companies Capit al emplo y ed Non interes t bearin g noncurrent and current assets less non interes t bearin g lon g term and current liabilities Net debt Interes t bearin g noncurrent and current assets less lon g term and short term interes t bearin g loan liabilities CAL CUL A TION OF K E Y RA TIOS 2012 Acquired sales gro wth 4 This y ear s sales from acquired business as a percent a g e of the pre vious y ear s tot al sales Calculation 2 4184 64 0571 4 Or ganic sales gro wth 0 T ot al sales for the y ear adjus ted for acquisitions and chan g es in e x chan g e r ates as a percent a g e of the pre vious y ear s tot al sales adjus ted for div es ti tures Calculation 66 45822 4184143564 05715071 0 R eal sales gro wth 4 T ot al sales for the y ear includin g acquisitions and adjus ted for chan g es in e x chan g e r ates as a percent a g e of the pre vious y ear s tot al sales Calculation 66 45821435 64 05711 4 Oper atin g mar g in 46 Oper atin g income before amortization as a percent a g e of tot al sales Calculation 3 0855 66 4582 46 Earnin g s per share before dilution 23 SEK 332 475 and 571 Net income for the y ear at tribut able to equit y holder s of the Parent Compan y in relation to the a v er a g e number of shares before dilution Calculation 2012 1 212004 365 058 897 x 1 000 000 SEK 332 Calculation 2011 1 738629365 058 897 x 1 000 000 SEK 475 Calculation 2010 2 080823365 058 897 x 1 000 000 SEK 571 Earnin g s per share before dilution 23 and before items afectin g compar abilit y and impairment losses 4 SEK 421 Net income for the y ear at tribut able to equit y holder s of the Parent Compan y before items afectin g compar abilit y after t ax and impairment losses in relation to the a v er a g e number of shares before dilution Calculation 1 2120043263365 058 897 x 1 000 000 SEK 421 Cash fo w from oper atin g activities as of oper atin g income before amortization 104 Cash fo w from oper atin g activities as a percent a g e of oper atin g income before amortization Calculation 3 2008 3 0855 104 F ree cash fo w as of adjus ted income 105 F ree cash fo w as a percent a g e of adjus ted income Calculation 2 0856 3 0855 57405264 105 1 The defnition is also v alid for the formal primar y s t atements the s t atement of income and the s t atement of cash fo w 2 There are no con v ertible debenture loans Consequently there is no diference bet w een earnin g s per share before and after dilution 3 Number of shares includes shares related to the Group s sharebased incentiv e scheme that ha v e been hed g ed throug h a s w ap a greement 4 Impairment losses of g oodwill and other acquisition related int an g ible assets 82 Annual R eport Notes and comments to the consolidated fnancial s t atements Securit as Annual R eport 2012