DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
Guidelines concerning non-IFRS performance measures for
companies with securities listed on a regulated market in the EU
have been issued by ESMA (The European Securities and Markets
Authority). These guidelines are to be applied to alternative perfor-
mance measures (APM) applied as of July 3, 2016. The Interim
Report refers to a number of non-IFRS performance measures used to
assist investors and company management to analyze the company’s
operations. Because not all companies calculate the financial measures
in the same way, these are not always comparable to measures used
by other companies. These financial measures should not be seen as
a substitute for measures defined under IFRS. A description of the
various non-IFRS performance measures used as a complement to the
financial information reported according to IFRS and how they are
used, is presented below.
PERFORMANCE MEASURES DEFINITION/CALCULATION PURPOSE
GROSS PROFIT MARGIN Net sales less goods for resale in percent of net sales. The measure is used for showing the Group's margins
before the effect of costs such as selling and admin-
istrative costs.
OPERATING MARGIN Operating result as a percentage of the period's
net sales. The measure is used to show operating profability
and how the Group meets its targets.
PROFIT MARGIN Result before tax as a percentage of the period's net sales. The measure enables the profitability to be compared
across locations where corporate taxes differ.
NET MARGIN Result after tax as a percentage of the period's net sales. The measure is used to show net earnings in relation
to income.
ORGANIC GROWTH Organic growth refers to sales growth from existing operations
cleared from currency effects. The currency effect is calculated
by recalculating this year's sales in local currencies to last year's
rates and compared to previous year's sales. The measure is used to show growth in existing
business since currency effects are beyond the
Group's control and to measure how the Group
meets its targets.
EBITDA Operating result before depreciation, amortization and
write-downs of tangible and intangible fixed assets. The measure is used to show result from operating
activities, regardless of depreciation, amortization
and write-downs.
NET FINANCIAL ITEMS The total of interest income, interest expenses, currency
differences on borrowings and cash equivalents in foreign
currencies, other financial income and other financial
expenses. The measure reflects the Group's total costs of the
external financing.
RETURN MEASURES DEFINITION/CALCULATION PURPOSE
RETURN ON
CAPITAL EMPLOYED Result before tax plus financial expenses as a percentage of
average capital employed. The average capital employed is
calculated by taking the capital employed per period end and
the capital employed at year-end for the previous year divided
by two. The measure is used to analyze profitability by putting
result in relation to the capital needed to operate the
business.
RETURN ON EQUITY Result for the period according to the income statement as
a percentage of average equity. For the Parent company it
is calculated as result after tax as a percentage of average
adjusted equity. In adjusted equity, 78 % of untaxed reserves
are included. The measure is used to analyze profitability over time,
given the resources available to the Parent company's
owners.
DATA PER SHARE DEFINITION/CALCULATION PURPOSE
EQUITY PER SHARE Equity at the end of the period divided by number of shares at
the end of the period. Equity per share measures the net asset value per
share and determines if a company is increasing
shareholder value over time.
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