CORRAL PETROLEUM HOLDINGS AB (PUBL) - Preem

indicator of our ability to finance our operations, capital expenditures and other investments and our ability to incur andservice debt. While depreciation and amortization are considered operating costs, these expenses primarily represent thenon-cash current period allocation of costs associated with long-lived assets acquired or constructed in prior periods. Fundsdepicted by this measure may not be available for management’s discretionary use or for service of payment of interest orprinciple on our outstanding indebtedness. Because all companies do not calculate EBITDA identically, the presentation ofEBITDA may not be comparable to similarly entitled measures of other companies. EBITDA is also calculated differentlyfrom “Consolidated EBITDA” for purposes of various covenants applicable to us under the Senior Secured Notes. Thefollowing table presents a reconciliation of net income to EBITDA.Year ended December 31,2008 2009 2010(in millions SEK)Net profit/(loss) ........................................................................................ (3,349) 2,753 1,277Add back:Income tax ................................................................................................. (1,475) 995 466Profit/(Loss) before taxes........................................................................ (4,824) 3,748 1,743Adjustments for:Depreciation and amortization ............................................................. 978 984 986Other financial expense........................................................................ 2,380 (771) (516)Total interest expense........................................................................... 1,655 1,373 1,259Interest income ..................................................................................... (214) (178) (170)Other financial income......................................................................... (36) 86 (46)EBITDA.................................................................................................... (62) 5,242 3,257(7) Adjusted EBITDA is defined as EBITDA further adjusted to exclude inventory gains and losses and foreign currency gainsand losses and reflects the adjustments permitted in calculating covenant compliance under the 2008 Credit Facility. Webelieve that the inclusion of supplemental adjustments to EBITDA applied in presenting Adjusted EBITDA are appropriateto provide additional information to investors about certain material normalizing items and create a useful indicator of ourability to finance our operations, capital expenditures and other investments and our ability to incur and service debt. Fundsdepicted by this measure may not be available for management’s discretionary use or for service of payment of interest orprinciple on our outstanding indebtedness. Because all companies do not calculate Adjusted EBITDA identically, thepresentation of Adjusted EBITDA may not be comparable to similarly entitled measures of other companies. The followingtable presents a reconciliation of EBITDA to Adjusted EBITDA.Year ended December 31,2008 2009 2010(in millions SEK)EBITDA.................................................................................................... (62) 5,242 3,257Add back:Inventory (gains)/ losses............................................................................ 4,523 (3,171) (1,212)Foreign currency (gains)/losses................................................................. 118 498 381Adjusted EBITDA ................................................................................... 4,579 2,570 2,426(8) Total Preem debt includes total long-term debt and total current debt of Preem to credit institutions.(9) Senior Secured Notes issued by Corral Petroleum Holdings AB.(10) Our total debt on a consolidated basis includes total long-term debt and total current debt to credit institutions and noteholders.16