Key Financial Figures – definitions
| Key Financial Figures | Definition and calculation | Purpose |
|---|---|---|
| Growth (%) | Growth consists of the increase in sales in relation to the comparative period. The period’s increase in net sales/Net sales in the period of comparison | This key figure is used to follow up the company’s sales increase |
| Acquired growth (%) | The period’s net sales growth from acquisitions/the comparative period’s net sales | The key figure used to monitor the proportion of the company’s sales growth generated through acquisitions |
| Currency effect on growth (%) | The increase in net sales for the period attributable to change in exchange rates/Net sales in the comparative period | The key figure used to monitor the proportion of the company’s sales growth generated through exchange-rate fluctuations |
| Organic growth (%) | The increase in net sales for the period adjusted for acquisitions, divestments and currency/Net sales in the comparative period | This key figure is used when analysing underlying sales growth driven by comparable units between different periods |
| Operating profit (EBIT) | Profit for the period before financial items and tax Total operating income – Operating expenses | The key figure used to monitor the company’s profit generated by operating activities. This key figure enables comparisons of profitability between companies/industries |
| EBITA | Operating profit before amortisation and impairment of intangible assets Operating profit (EBIT) + Amortisation and impairment of intangible assets | This key figure is used to follow up the company’s profit generated by operating activities. This key figure enables comparisons of profitability between companies/industries |
| Items affecting comparability | Items related to events in the company’s operations that impact comparability with profit during other periods. Include: – Transaction costs attributable to major acquisitions – Major re-organisations | The key figure of Items affecting comparability is used to achieve a fair comparison of the underlying development of business operations |
| Adjusted EBITA | Operating profit before amortisation and impairment of intangible assets adjusted for items from events in the company’s operations that affect comparisons with profit during other periods EBITA + Items affecting comparability | The key figure is used to follow up the company’s profit generated by operating activities in order to obtain a fair comparison of the underlying development of business operations. This key figure enables comparisons of profitability between companies/industries |
| EBITDA | Operating profit before depreciation, amortisation and impairment of intangible and tangible assets Operating profit (EBIT) + Depreciation, amortisation and impairment of tangible and intangible assets | The key figure used to follow up the company’s profit generated by operating activities. This key figure enables comparisons of profitability between companies/industries |
| Adjusted EBITDA | Operating profit before depreciation/amortisation and impairment of intangible and tangible assets adjusted for items from such events in the company’s operations that affect comparisons with profit from other periods EBITDA + Items affecting comparability | This key figure is used to follow up the company’s profit generated by operating activities with a fair comparison of the underlying development of the business operations. The key figure enables comparisons of profitability between companies/industries |
| Operating cash flow | Total cash flow from operating activities excluding tax, net financial items and items affecting comparability, as well as cash flow from investing activities excluding acquisitions and divestments of operations Adjusted EBITDA + Changes in working capital + Cash flow from investing activities excl. acquisitions and divestments of subsidiaries + adjustments for cash flow from investing activities related to increased capacity/growth | This key figure shows the cash flow from the company’s operations, excluding business combinations, company divestments, financing, tax and items affecting comparability and is used to follow up whether the company is able to generate a sufficiently positive cash flow to maintain and expand its operations |
| Free cash flow | Total cash flow from operating activities and cash flow from investing activities excluding acquisitions and divestments of operations Cash flow from operating activities + Cash flow from investing activities excluding acquisitions and sales of subsidiaries | This key figure shows cash flow from operating activities including cash flow from investing activities excluding acquisitions and divestments of operations and is used because it is a relevant measure for investors to be able to understand the Group’s cash flow from operating activities |
| Cash conversion (%) | Cash conversion as a percentage is defined as operating cash flow divided by adjusted EBITDA Operating cash flow/Adjusted EBITDA | The key figure used as an efficiency measure of the proportion of a company’s profit that is converted to cash |
| Net debt | The Group’s interest-bearing liabilities excluding pension provisions adjusted for cash and cash equivalents Interest-bearing liabilities – cash and cash equivalents | This key figure is a measure of the company’s debt/equity ratio and is used by the company to assess its capacity to meet its financial commitments |
| Net debt /Adjusted EBITDA, RTM | Net debt/Adjusted EBITDA is a measure of the debt/equity ratio defined as the closing balance for net debt in relation to rolling adjusted EBITDA. Net debt/Adjusted EBITDA, RTM | The key figure used to monitor the level of the company’s indebtedness to ensure that financial covenants are met |
| Operating margin (%) | Operating profit as a percentage of net sales. Operating profit (EBIT)/Net sales | This key figure is used to follow up the percentage of net sales from operations that remains to cover interest payments and tax and to generate a profit after the company’s costs have been paid |
| EBITDA excluding effects of IFRS 16 | Operating profit before depreciation, amortisation and impairment of intangible and tangible assets, adjusted for the effects of IFRS 16 | This key figure is used to calculate the comanys indebtness excluding effects of IFRS 16 |
| Adjusted EBITDA excluding effects of IFRS 16 | Operating profit before depreciation, amortisation and impairment of intangible and tangible assets adjusted for items from such events in the company’s operations that affect comparisons with profit from other periods, adjusted for the effects of IFRS 16 Adjusted EBITDA + net effects of IFRS 16 on EBITDA | This key figure is used to calculate the comanys indebtness excluding effects of IFRS 16 |
| Net debt excluding effects of IFRS 16 | The Group’s interest-bearing liabilities, adjusted for the effects of IFRS 16, excluding pension provisions adjusted for cash and cash equivalents Net debt – lease liabilities related to properties | This key figure is used to calculate the comanys indebtness excluding effects of IFRS 16 |
| Net debt / Adjusted EBITDA, RTM excluding effects of IFRS 16 | Net debt/Adjusted EBITDA excluding the effects of IFRS 16 is a measure of the debt/equity ratio defined as the closing balance for net debt, adjusted for the effects of IFRS, in relation to rolling adjusted EBITDA, adjusted for the effects of IFRS 16 Net debt excluding the effects of IFRS 16/Adjusted EBITDA excluding the effects of IFRS 16 RTM | The key figure used to monitor the level of the company’s indebtedness to ensure that financial covenants are met |
| Mature units | Mature units include units that have been in Ambea’s operation for at least 13 months. | This key figure is used to show the EBITA margin in units with a stable status to compare with the total EBITA margin, which also includes start-up units. |
| EBITA excluding effects of IFRS 16 | Operating profit before amortisation and impairment of intangible assets, adjusted for the effects of IFRS 16. EBITA + net effects of IFRS 16 on EBITA | The key figure is used to follow up the company’s profit generated by operating activities in order to obtain a fair comparison of the underlying development of business operations. This key figure enables comparisons of profitability between companies/industries |
| Adjusted EBITA excluding effects of IFRS 16 | Operating profit before amortisation and impairment of intangible assets adjusted for items from events in the company’s operations that affect comparisons with profit during other periods, adjusted for the effects of IFRS 16 Adjusted EBITA + net effects of IFRS 16 on EBITA | The key figure is used to follow up the company’s profit generated by operating activities in order to obtain a fair comparison of the underlying development of business operations. This key figure enables comparisons of profitability between companies/industries |
