Profitability

		2012	2011 (restated data)	Growth rate
EBITDA	Operating result + Depreciation	2,374.8	3,552.8	66.8%
Gross margin	Gross result on sales x 100 Sales revenues	27.6%	36.4%	75.8%
EBIT margin	Operating result x 100 Sales revenues	14.8%	28.9%	51.2%
EBITDA margin	EBITDA x 100 Sales revenues	26.9%	37.9%	71.0%
Net return on sales	Net financial result x 100 Sales revenues	11.2%	22.2%	50.5%
Return on Assets (ROA)	Net financial result x 100 Total assets	7.0%	15.3%	45.8%
Return on Equity (ROE)	Net financial result x 100 Equity	11.5%	24.7%	46.6%

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Analysis of profitability ratios indicates a lower efficiency of the Group’s performance in 2012 caused by the economic slowdown resulting in a decrease in unit prices of coking coal and coke and lower income from sales of coal and coke.

EBITDA for 2012 was PLN 2,374.8 million compared to PLN 3,552.8 million in 2011, down by 33.2%. EBITDA was generated in 55.1% from the operating profit while 44.9% came from depreciation. In 2011, these shares were 76.2% and 23.8%, respectively. The EBITDA margin for 2012 decreased by 11.0 percentage points from 37.9% in 2011 to 26.9% in 2012. On the other hand, in 2012 the EBIT margin was 14.8% which means that with respect to JSW S.A.'s core business, each PLN 1 million of revenues on sales generated approx. PLN 148 thousand in operating profit. Net sales profitability in 2012 was at the level of 11.2%, down by 11.0 percentage points from 2011. In 2012, the return on assets (ROA) and return on equity (ROE) ratios indicated a decrease, compared to 2011, in the efficiency of the Group’s utilization of assets and equity.