Alternative performance measures
∆%
Change in percentage.
Capital employed
Balance sheet total with a deduction for non-interest-bearing liabilities and deferred tax liability. The key figure is relevant to show the capital in the Group that is financed by interest-bearing capital.
Debt/equity ratio
Net debt in relation to equity. The objective is to show borrowing in relation to book value of equity.
EBITA
Operating profit before amortisation and write-downs on intangible fixed assets. The objective of reporting EBITA is that the Group regards it as a relevant measure for an investor who wants to understand the generation of earnings before amortisation and write-downs on intangible fixed assets.
EBITA excluding items affecting comparability
Operating profit excluding items affecting comparability and before amortisation and write-downs on intangible fixed assets. The purpose of reporting EBITA excluding items affecting comparability is that the Group considers it a relevant measure for an investor who wants to understand the generation of earnings from the underlying operating activities before amortisation and write-downs on intangible fixed assets.
EBITA-margin, %
EBITA in relation to net sales. Shows the operating profit from the operating activities before amortisation and write-downs on intangible fixed assets in relation to net sales.
EBITA-margin excluding items affecting comparability, %
EBITA excluding items affecting comparability in relation to net sales. Shows the operating profit from the underlying operating activities before amortisation and write-downs on intangible fixed assets in relation to net sales.
EBITDA
Operating profit before depreciation, amortisation and write-downs on tangible and intangible fixed assets. The purpose of reporting EBITDA is for the Group considers it a relevant measure for an investor who wants to understand the profit generation before depreciation, amortisation and write-downs on tangible and intangible fixed assets.
EBITDA excluding items affecting comparability
Operating profit excluding items affecting comparability and before depreciation, amortisation and write-downs on tangible and intangible fixed assets. The purpose of reporting EBITDA excluding items affecting comparability is for the Group considers it a relevant measure for an investor who wants to understand the profit generation from the underlying operating activities before depreciation, amortisation and write-downs on tangible and intangible fixed assets.
EBITDA excluding leasing (IFRS 16) and items affecting comparability
Operating profit excluding impact from leasing (IFRS 16) and items affecting comparability and before depreciation, amortisation and write-downs on tangible and intangible fixed assets. The purpose of reporting EBITDA excluding leasing and items affecting comparability is that the Group considers it a relevant measure for an investor who wants to understand the profit generation from the underlying operating activities before depreciation, amortisation and write-downs on tangible and intangible fixed assets before impact from leasing.
Equity per share before/after dilution
Equity before and after dilution in relation to the average number of outstanding shares. The average number of shares outstanding is calculated as the average of the total number of shares outstanding at the end of the last four quarters. The measure shows equity in relation to the average number of outstanding shares.
Equity ratio
Equity at the end of the period in relation to balance sheet total.
Interest-bearing liabilities
Interest-bearing liabilities to credit institutions, liabilities related to right-of-use assets and pension liabilities. The key figure is relevant to get an indication of the Group’s interest rate sensitivity and financial risk.
Interest coverage ratio
Earnings before tax plus financial expenses in relation to financial expenses. The objective of this measure is to show the proportion of earnings allocated to paying interest expenses and other financial expenses.
Interest coverage ratio, excluding items affecting comparability
Earnings before tax, excluding items affecting comparability, plus financial expenses in relation to financial expenses. The objective of this measure is to show the proportion of earnings allocated to paying interest expenses and other financial expenses without impact from items affecting comparability.
Items affecting comparability
Major non-recurring items. Provides an increased understanding of the Group’s underlying results.
Net debt
Interest-bearing liabilities reduced by liquid funds and interest-bearing current investments. We are of the opinion that the net debt is useful for the users of the financial report as a complement for assessing the possibility for a dividend, for carrying out strategic investments and for assessing the Group’s possibilities for living up to financial commitments.
Net debt/EBITDA
Net debt in relation to EBITDA for previous 12-month period. A measure of financial risk that puts interest-bearing debt in relation to cash generation.
Net debt/EBITDA excluding items affecting comparability
Net debt in relation to EBITDA excluding items affecting comparability for previous 12-month period. A measure of financial risk that puts interest-bearing debt in relation to underlying cash generation.
Net debt/EBITDA excluding leasing liabilities, pension liability and items affecting comparability
Net debt in relation to EBITDA excluding items affecting comparability, leasing and pensions for previous 12-month period. A measure of financial risk that puts external interest-bearing debt in relation to underlying cash generation.
Operating capital
Capital employed minus liquid funds, financial assets and other interest-bearing assets. We are of the opinion that operating capital is a relevant key figure for identifying the capital needed to finance the ongoing operations.
Operating cash flow
Cash flow from operating activities adjusted with interest paid, income tax paid and charged with investments in fixed assets. The performance measure excludes cash flow from items affecting comparability. The alternative key figure is relevant to give an indication of the funds that the underlying operating activities generate to be able to carry out strategic investments, make amortisations and provide a return to the shareholders.
Operating margin, %
Operating profit in relation to net sales.
Operating margin excluding items affecting comparability, %
Operating profit excluding items affecting comparability in relation to net sales.
Operating profit (EBIT)
Profit before net financial items and tax. The key figure is relevant for an investor who wants to understand the generation of earnings before net financial items and tax.
Operating profit excluding items affecting comparability (EBIT)
Operating profit excluding items affecting comparability. The key figure is relevant for an investor who wants to understand the profit generation from the underlying operating activities before net financial items and tax.
Organic change
Comparative figures year over year adjusted for translation effects on consolidation and changes in the structure.
Profit per share before/after dilution
The calculation of profit per share before dilution is based on the year’s earnings in the group attributable to the parent company’s shareholders and on the weighted average number of shares outstanding during the year. When calculating profit per share after dilution, the average number of shares is adjusted to take into account the effects of dilutive potential ordinary shares.
Profit per share excluding items affecting comparability before/after dilution
The calculation of profit per share before dilution, excluding items affecting comparability, is based on the year’s earnings in the group, excluding items affecting comparability, attributable to the parent company’s shareholders and on the weighted average number of shares outstanding during the year. When calculating profit per share after dilution, excluding items affecting comparability, the average number of shares is adjusted to take into account the effects of dilutive potential ordinary shares.
R12
Rolling twelve is the latest 12 months.
Return on equity, %
Profit after tax (rolling 12-months) as a percentage of average equity. Average equity is calculated as the average of equity at the end of the last four quarters. Return on equity is used to make the result in relation to average equity.
Return on operating capital, %
EBITA for the last 12-month period as a percentage of average operating capital. Average operating capital is calculated as the average of operating capital at the end of the last four quarters. Return on operating capital is used to set the operating profit, before amortisation and write-downs on intangible fixed assets, in relation to average operating capital.
Return on operating capital, excluding items affecting comparability, (R12), %
EBITA excluding items affecting comparability for the last 12-month period as a percentage of average operating capital. Average operating capital is calculated as the average of operating capital at the end of the last four quarters. Return on operating capital, excluding items affecting comparability, is used to set the operating profit, before amortisation and write-downs on intangible fixed assets, from the underlying operating activities in relation to average operating capital.