Definitions

Alternative Performance Measures (“APMs”)
APM	Definition	Rationale
EBITDA	Earnings before interest, tax, depreciation and amortization. Derived directly from the income statement by adding back depreciation to the operating result (“EBIT”).	Management believes that this measure provides useful information regarding the Group’s ability to fund its capital investments and provides a helpful measure for comparing its operating performance with those of other companies.
Adj. EBITDA	EBITDA excluding one-time, irregular, and non-recurring items, such as gain (loss) from vessel sales.	Management uses adjusted EBITDA to provide additional useful information that exclude any non-recurring fluctuation. Adjusted EBITDA assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance.
Adj. Profit (Loss) for the Period	Profit (loss) for the perios excluding one-time, irregular, and non-recurring items, such as gain (loss) from vessel sales.	Management uses adjusted EBITDA to provide additional useful information that exclude any non-recurring fluctuation.
Equity Ratio	Total book equity divided by total assets.	Management uses the equity ratio to monitor its capital and financial covenants. The equity ratio also provides an indication of how much of the Group’s assets are funded by equity.
Leverage Ratio	Total interest-bearing debt divided by total assets.	Management uses the leverage ratio to examine the financial structure and degree of indebtedness in relation to capital employed by the Group.
Adj. Operating Expense ("OPEX") per day	Adj. OPEX per day is calculated as operating expenses excluding tonnage taxes and operating expenses reimbursed by the charterers divided by the number of ownership days for consolidated vessels during the reporting period.	Adjusted Opex is a standard shipping industry performance measure used primarily to compare period-to-period changes in daily running cost contributed by vessels on time charters. In addition, it assists our management in making decisions regarding the deployment and use of our vessels and in evaluating their financial and operational performance.
Average Time Charter Equivalent ("TCE")	The time charter equivalent represents time charter revenue and pool revenue divided by the number of trading days for the consolidated vessels during the reporting period. Trading days are ownership days minus days without revenue, including commercial, uninsured technical and dry-dock related off-hire days.	TCE rate is a non-IFRS measure, and management believes it is useful to investors because it is a standard shipping industry performance measure used primarily to compare period-to-period changes in daily earnings generated by vessels on time charters. In addition, it assists our management in making decisions regarding the deployment and use of our vessels and in evaluating their financial and operational performance.
Adj. Average Time Charter Equivalent	Adjusted average TCE is the average TCE for the period excluding one-time, irregular, and non-recurring items, such as gain (loss) from sale of vessels.	Adj. TCE rate is a non-GAAP measure, and management believes it is useful to investors because it provides a additional meaningful information regarding earnings from our vessels without any non-recurring fluctuation.
Net Debt	Calculated as cash and cash equivalent less borrowings (current and non-current). The measure may exclude lease liabilities (current and non-current) or include them.	Management believes that net debt is a useful measure because it provides indication of the minimum necessary debt financing to which the Group is subject at the balance sheet date.

Key Performance Indicators (“KPI”)
KPI	Definition	Rational
Dividend Per Share ("DPS")	The recurring dividend per share and any event-driven dividends per share declared for the period.	DPS is an important measure for investors because the amount the Company pays out in dividends directly translates to income for the shareholder.
Utilization	Total trading days including off-hire days related to dry-docks divided by the total number of ownership days during the period.	The shipping industry uses fleet utilization to measure the Group's efficiency in finding suitable employment for its vessels and minimizing the amount of days that its vessels are off-hire for reasons other than scheduled dry-docking, vessel upgrades or special surveys.