Added value


Operating result (EBIT) + remuneration, social security and pension charges + depreciation, amortization, impairment of assets and negative goodwill.            


Companies in which Bekaert has a significant influence, generally reflected by an interest of at least 20%.  Associates are accounted for using the equity method.            
Book value per share  Equity attributable to the Group divided by number of shares outstanding at balance sheet date. 
Capital employed (CE) Working capital + net intangible assets + net goodwill + net property, plant and equipment. The average CE is weighted by the number of periods that an entity has contributed to the consolidated result.
Capital ratio Equity relative to total assets.            
Combined  Sum of consolidated companies + 100% of joint ventures and associated companies after elimination of intercompany transactions (if any). Examples: sales, capital expenditure, number of employees. 
Dividend yield Gross dividend as a percentage of the share price on 31 December.


Operating result (earnings before interest and taxation).

EBIT - Underlying  EBIT before operating income and expenses that are related to restructuring programs, impairment losses, business combinations, business disposals, environmental provisions or other events and transactions that have a one-time effect. 

EBIT interest coverage

Operating result (EBIT) divided by net interest expense.


Operating result (EBIT) + depreciation, amortization, impairment of assets and negative goodwill. 

Equity method

Method of accounting whereby an investment (in a joint venture or an associate) is initially recognized at cost and subsequently adjusted for any changes in the investor’s share of the joint venture’s or associate’s net assets (i.e. equity). The income statement reflects the investor’s share in the net result of the investee.


Net debt relative to equity

Joint ventures

Companies under joint control in which Bekaert generally has an interest of approximately 50%. Joint ventures are accounted for using the equity method.            

Net capitalization

Net debt + equity.

Net debt

Interest-bearing debt net of current loans, non-current financial receivables and cash guarantees, short term deposits, cash and cash equivalents.

Pay-out ratio  Gross dividend as a percentage of result for the period attributable to the Group. 
Price-earnings ratio  Share price divided by result for the period attributable to the Group per share. 

Return on capital employed (ROCE)

Operating result (EBIT) relative to weighted average capital employed.

Return on equity (ROE)

Result for the period relative to average equity.

ROIC  NOPLAT on invested capital. NOPLAT is EBIT after tax (using a target tax rate of 27%), and includes the Group’s share in the NOPLAT of its joint ventures and associates. Invested capital is the aggregate of total equity, net debt, non-current employee benefit obligations and non-current other provisions, and includes the Group’s share in the net debt of its joint ventures and associates. 

Sales (combined)

Sales of consolidated companies + 100% of sales of joint ventures and associates after intercompany elimination.

Subsidiaries             Companies in which Bekaert exercises control and generally has an interest of more than 50%.            
Velocity Velocity is calculated by taking the sum of the daily division of the number of shares traded by the outstanding number of shares existing the same day, and that for the twelve previous months.            
Velocity (adjusted)   Velocity divided by the free-float band of 60% end 2007.
Working capital (operating)            

Inventories + trade receivables + bills of exchange received + advances paid - trade payables - advances received - remuneration and social security payables - employment-related taxes.

Weighted average cost of capital (WACC)  Cost of debt and cost of equity weighted with a target gearing of 50% (net debt/equity structure) after tax (using a target tax rate of 27%). Bekaert calculates a WACC for its three main currency environments: EUR, USD and CNY, the average of which (7.6%) has been rounded to 8% to set a long-term target. 

The 2015 comparative information has been restated due to:

  • The application of the amendment to IAS 19 ‘Employee benefits’ coming into effect in 2016.
    The appropriate discount factor in accounting for employee benefit obligations should be currency based and no longer country based. The new standard affects the defined benefit plans in Ecuador, where a reference is made to USD bonds, both on defined benefit obligation and on benefit expense level.
  • The guidelines from ESMA.The term ‘recurring’ and ‘non-recurring’ will no longer be used. The amounts previously reported under ‘non-recurring’ are reported as part of the other operating  expenses and revenues. ‘EBIT’ and ‘EBITDA’ will be kept as such, while ‘REBIT’ and ‘REBITDA’ will be changed into ‘EBIT-Underlying’ and ‘EBITDA-Underlying’.
  • The reclassification of ‘acquisition related external professional fees’.
    Similar to the treatment of professional fees in relation to the divestment of a business, fees for acquisition related professional services rendered by third parties are presented as other operating expenses. This does not apply to fees rendered for integration programs related to acquired companies. The accounts have been restated in this respect for an amount of € 9.3 million (decrease of administrative expenses).
  • In accordance with IFRS 8 ‘Operating Segments’, Bridon-Bekaert Ropes Group (‘BBRG’) has been identified as a separate reportable segment, while the regional segmentation is being applied to all other businesses of the Bekaert Group. As the merger was finalized on June 28, 2016, the newly merged Bridon business only contributed to the 2016 operating results for half a year. Previous year’s figures have been restated and all elements relating to Bekaert’s advanced cords and global ropes businesses have been taken out of their respective regional segments and are now presented under BBRG.