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Net Debt to Total Book Capitalization – A measure that indicates the financial leverage of the Company. It measures the relative use of debt versus equity in the book capital of the Company. Net debt to total book capitalization is defined as net debt (see definition above) divided by net debt plus shareholders’ equity, expressed as a percentage. 

Operating Income – A measure indicating the profitability of the Company’s business units defined as income before corporate expenses, net finance costs, goodwill impairment loss, earnings in equity accounted investments, restructuring and other items and tax. 

See the definition of EBITDA above for a reconciliation of operating income measures to IFRS measures reported in the consolidated statements of earnings for the periods ended as indicated. 

Restructuring and Other Items and Tax Adjustments – A measure of significant non-recurring items that are included in net earnings. The impact of restructuring and other items and tax adjustments on a per share basis is measured by dividing the after-tax income of the restructuring and other items and tax adjustments by the average number of shares outstanding in the relevant period. Management will continue to disclose the impact of these items on the Company’s results because the timing and extent of such items do not reflect or relate to the Company’s ongoing operating performance. Management evaluates the operating income of its Segments before the effect of these items. 

Return on Equity before goodwill impairment loss, restructuring and other items and tax adjustments (“ROE”) — A measure that provides insight into the effective use of shareholder capital in generating ongoing net earnings. ROE is calculated by dividing annual net income before goodwill impairment loss, restructuring and other items (net of tax) and tax adjustments by the average of the beginning and the end of year shareholders’ equity. 

The following table reconciles net earnings used in calculating the ROE measure to IFRS measures reported in the consolidated statement of financial position and in the consolidated income statements for the periods ended as indicated. 

## Return on Equity 

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Return on Sales – A measure indicating relative profitability of sales to customers. It is defined as operating income (see above definition) divided by sales, expressed as a percentage. 

The following table reconciles the return on sales measure to IFRS measures reported in the consolidated statements of earnings in the industry segmented information as per note 6 of the Company’s annual financial statements for the periods ended as indicated. 

## Return on Sales 

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