NWG // KEY FIGURES
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
performance 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. A reconciliation of alternative performance
measures is available on www.nwg.se/en/investor-relations/
financial-reports/key-numbers.
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 administrative costs.
OPERATING MARGIN Operating result as a percentage of the period's net sales. The measure is used to show operating profitability 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
RETURN ON EQUITY
Rolling 12 month's 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.
Rolling 12 month's result for the period according to the income
statement as a percentage of average equity. The average equity
is calculated by taking the equity per period end and the equity at
year-end for the previous year divided by two. For the Parent company
it is calculated as result after tax as a percentage of average
adjusted equity. In adjusted equity, the equity part of untaxed
reserves is included.
The measure is used to analyze profitability by putting result
in relation to the capital needed to operate the business.
The measure is used to analyze profitability over time, given
the resources available to the Parent company's owners.
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