f i n a n c i a l h i g h l i g h t s ($ and shares in thousands, except per share data) Summary of Operations for year ended December 31, 2012 2011 Net sales $2,579,068 $2,500,369 Operating profit 310,441 36,571 Net income attributable to common shareholders 216,993 26,315 Operating profit before special items 334,947 308,545 Net income attributable to common shareholders before special items 218,416 203,098 Share Data Net income attributable to common shareholders per diluted share $3.72 $0.44 Net income attributable to common shareholders per diluted share 3.75 3.43 before special items Dividends 1.08 0.98 Average diluted shares outstanding 58,293 59,204 Average basic shares outstanding 57,443 58,120 Financial Position at December 31, Assets $2,889,878 $2,843,531 Net debt (net cash) (a) ( 23,732) 154,937 Equity 927,376 822,056 Market value of equity (b) 2,642,874 2,691,162 Market capitalization (c) 2,619,142 2,846,099 ) Key Statistics Operating margin 12.0% 1.5% Operating margin before special items 13.0% 12.3% Return on average equity 24.2% 2.5% Return before special items on adjusted equity (d) 24.4% 19.1% Net debt (net cash) to net capitalization (e) ( 2.6%) 15.9% Certain non-GAAP measures shown above and in the Letter to Shareholders have been provided to facilitate comparison with the prior year. Reconciliation of such amounts is provided in the fold-out table on pages 2 and 3. Net debt (net cash) is total debt less cash and cash equivalents. (a) Market value of equity is the number of shares of common stock outstanding multiplied by the period-end closing stock price. (b) Market capitalization is the market value of equity plus net debt (net cash). (c) Average equity has been adjusted for the impact of special items in 2012, 2011 and 2010. (d) Net capitalization is net debt (net cash) plus equity. (e) 1