Financial metrics and alternative performance measures (APM)

IFRS measure

Earnings per share

Net result for the period attributable to owners of the parent company divided by the average number of shares outstanding.

Alternative performance measures

An alternative performance measure is understood as a financial measure other than a financial measure defined or specified in the applicable financial reporting framework. The alternative performance measures presented are a complement to financial measures defined in IFRS and are used by management to evaluate ongoing operations and control activities. Alternative performance measures presented in these interim financial statements should not be considered as substitutes for measures of performance in accordance IFRS and may not be comparable to similarly titled measures by other companies.

Performance measure Definition Purpose
Capital expenditure (Capex) Capital expenditure in intangible assets and property, plant and equipment, including capital expenditure financed by leasing. Displays the amount of available funds invested in the operations to secure the long-term earning power.
EBITDA EBIT excluding depreciation and amortisation. EBITDA shows the operations’ earning power regardless of capital structure and tax situation with the purpose of simplifying comparisons with other companies in the same industry.
EBITDA-margin EBITDA as a percentage of revenue. Intends to display the profitability of the business.
Equity free cash flow Underlying EBITDA less Capex, interest on bank debt, coupons to bondholders, taxes and change in net working capital. Measures the cash flow available to shareholders after payments to all other stakeholders have been made.
Equity per share Equity divided by the total number of outstanding shares. Measures the company’s net value per share.
Equity / assets ratio Equity as a percentage of total assets. The ratio displays the proportion of assets financed by equity and can be used as an indication of the company’s long-term solvency.
Items affecting comparability Items of temporary nature such as staff costs related to restructuring and transaction costs related to acquisitions. Disclosure of items affecting comparability is considered to increase the comparability of the operating profit over time.
Net debt Interest-bearing liabilities, excluding borrowing costs, less cash and cash equivalents. Measurement of the ability to pay all debt with available cash and cash equivalents, if all debt matured on the day of the calculation. It is therefore a measure of the risk related to the company’s capital structure.
Net debt / Underlying EBITDA Net debt at the end of the period indicated divided by Underlying EBITDA rolling twelve months. Intends to show the business’s ability to pay its debt. Shows the number of years it would take to repay net debt if net debt, in relation to Underlying EBITDA, remains constant.
Operating free cash flow (OFCF) Underlying EBITDA less capital expenditure. Intends to show the cash flow from operations remaining for paying dividend, interest and taxes.
Operating profit (EBIT) Revenue less operating expenses. Enables comparability of profitability regardless of capital structure or tax situation.
Underlying EBITDA EBITDA before disposals, excluding items affecting comparability and operating currency gains/losses. Underlying EBITDA intends to display the operations’ earning power, excluding items affecting comparability.
Underlying EBITDA margin Underlying EBITDA as a percentage of revenue. Underlying EBITDA margin intends to show the profitability of the operations, excluding items affecting comparability.