Q1 2021 INVESTOR CALL PRESENTATION
Caution regarding
Non-IFRS Performance Measures
This presentation refers to certain measures that are not recognized under IFRS and do not have a
standardized meaning prescribed by IFRS. They are therefore unlikely to be comparable to similar
measures presented by other companies. The Company uses non-IFRS measures including "EBITDA,"
"EBITDA margin," "Adjusted EBITDA," "Adjusted EBITDA margin," "Gross mining profit," and "Gross mining
margin" as additional information to complement IFRS measures by providing further understanding of
the Company's results of operations from management's perspective.
EBITDA and EBITDA margin are common measures used to assess profitability before the impact of
different financing methods, income taxes, depreciation of capital assets and amortization of intangible
assets. Adjusted EBITDA and Adjusted EBITDA margin are measures used to assess profitability before the
impact of all of the items in calculating EBITDA in addition to certain other non-cash expenses. Gross
mining profit and Gross mining margin are measures used to assess profitability after power costs in
cryptocurrency production, the largest variable expense in mining. Management uses non-IFRS measures
in order to facilitate operating performance comparisons from period to period and to prepare annual
operating budgets.
"EBITDA" is defined as net income (loss) before: (i) interest expense; (ii) income tax expense; and (iii)
depreciation and amortization. "EBITDA margin" is defined as the percentage obtained when dividing
EBITDA by Revenue. "Adjusted EBITDA" is defined as EBITDA adjusted to exclude: (i) share-based
compensation; (ii) non-cash finance expenses; (iii) asset impairment charges; and (iv) other non-cash
expenses. "Adjusted EBITDA margin" is defined as the percentage obtained when dividing Adjusted
EBITDA by Revenue. "Gross mining profit" is defined as Revenue minus energy expenses for the
Backbone segment of the Company. "Gross mining margin" is defined as the percentage obtained when
dividing Gross mining profit by Revenue for the Backbone segment of the Company.
These measures are provided as additional information to complement IFRS measures by providing
further understanding of the Company's results of operations from management's perspective.
Accordingly, they should not be considered in isolation nor as a substitute for analysis of the Company's
financial information reported under IFRS.
See "Reconciliation of Net Income to EBITDA and Adjusted EBITDA" for reconciliation of EBITDA and
Adjusted EBITDA to net income in the Company's Q1 2021 Management's Discussion & Analysis.
Bitfarms
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