LANDIS+GYR GROUP AG ANNUAL

Income Statement

26 Landis+Gyr – Financial Report 2019 Main Exchange Rates applied The following exchange rates against the USD have been applied for the most important curren- cies concerned: INCOME STATEMENT EXCHANGE RATE AVERAGE EXCHANGE RATE, 12 MONTHS ON BALANCE-SHEET DATE Exchange rates 2020 2019 31.03.2020 31.03.2019 Euro countries – EUR 1.1113 1.1580 1.0971 1.1221 United Kingdom – GBP 1.2704 1.3126 1.2398 1.2993 Switzerland – CHF 1.0135 1.0098 1.0353 1.0043 Brazil – BRL 0.2431 0.2645 0.1923 0.2564 Australia – AUD 0.6813 0.7293 0.6102 0.7097 Landis+Gyr – Financial Report 2019 27 Glossary The following table provides definitions for key terms and abbreviations used within this annual report. Term Definition Adjusted EBITDA Operating income (loss) excluding depreciation and amor- tization, impairment of intangible assets, restructuring charges, exceptional warranty related expenses, warranty normalization adjustments and timing difference on FX derivatives Adjusted Gross Profit Total revenue minus the cost of revenue, adjusted for depreciation, amortization, restructuring charges, exceptional warranty related expenses, warranty normalization adjust- ments and timing difference on FX derivatives Adjusted Operating Expense Research and development expense (net of research and development related income), plus sales and marketing expense, plus general and administrative expense, adjusted for depreciation and restructuring charges Committed Backlog Cumulative sum of the awarded contracts, with firm volume and price commitments, that are not fulfilled as of the end of the reporting period Cost of Revenue Cost of manufacturing and delivering the products or services sold during the period EBITDA Earnings before Interest, Taxes, Depreciation & Amortiza- tion and Impairment of intangible assets Effective cash tax rate Total projected cash tax payments as a percentage of income (loss) before income tax expenses Effective P&L tax rate Total projected tax expense including current and deferred taxes, as well as discrete events as a percentage of income (loss) before income tax expenses EPS Earnings Per Share (the Company’s total earnings divided by the weighted-average number of shares outstanding during the period) Free Cash Flow (excluding M&A) Cash flow from operating activities (including changes in net operating working capital) minus cash flow from investing activities (cap