Definitions

Acquired growth in net sales

Change in net sales as a percentage of net sales during the comparable period, fuelled by acquisitions. Acquired net sales is defined as net sales during the period that are attributable to companies that were acquired during the last 12-month period and for these companies, the only amounts that are considered as acquired net sales are their sales up until 12 months after the acquisition date.

Purpose

Acquired net sales growth reflects the acquired units’ impact on net sales.

Cash conversion

Operating cash flow, 12-months rolling, as a percentage of EBITDA, 12-months rolling. A change in the calculation of cash conversion occurred in Q4 2022 and prior periods have been restated.

Purpose

Cash conversion is used to monitor how effective the Group is in managing ongoing investments and working capital.

Change in exchange rates

The period’s change in net sales that is attributable to the change in exchange rates (start of the period compared to the end of the period), as a percentage of net sales during the comparison period.

Purpose

The change in exchange rates reflects the impact that exchange rate fluctuations has had on net sales during the period.

EBIT margin

Earnings before interest and taxes, as a percentage of net sales.

Purpose

EBIT margin is used to measure operational profitability.

EBITA

Operating profit/loss (EBIT) before depreciation/amortization and impairment of acquired intangible assets.

Purpose

EBITA provides an overall picture of the profit generated from operating activities.

EBITA margin

Operating profit/loss (EBIT) before depreciation/amortisation and impairment of acquired intangible assets, as a percentage of net sales.

Purpose

EBIT margin is used to measure operational profitability.

EBITDA

Operating profit/loss (EBIT) before depreciation/amortisation and impairment of acquired intangible assets and depreciation/amortisation and impairment of property, plant and equipment and intangible assets.

Purpose

EBITDA, together with EBITA provides an overall picture of the profit generated from operating activities.

EBITDA margin

Operating profit/loss (EBIT) before depreciation/amortisation and impairment of acquired intangible assets and depreciation/amortisation and impairment of property, plant and equipment and intangible assets, as a percentage of net sales.

Purpose

EBITDA margin is used to measure operational profitability.

Equity ratio

Equity including non-controlling interests, expressed as a percentage of total assets.

Purpose

Equity ratio is used to show the proportion of assets that are financed by equity.

Gearing ratio

Interest-bearing net debt as a percentage of total equity.

Purpose

Gearing ratio measures the extent to which the Group is financed by loans. Because cash and other short-term investments can be used to pay off the debt on short notice, net debt is used instead of gross debt in the calculation.

Growth in net sales

Change in net sales as a percentage of net sales in the comparable period, prior year.

Purpose

The change in net sales reflects the Groups realised sales growth over time.

Interest-bearing net debt

Non-current and current interest bearing liabilities less cash and other short-term investments.

Purpose

Interest-bearing net debt is used as a measure that shows the Groups total debt.

Net debt in relation to EBITDA

Interest-bearing net debt compared to EBITDA provides a measure of liquidity for net liabilities in relation to cash-generating earnings in the business. Net debt on the closing date and EBITDA are calculated as the most recent 12-month period.

Purpose

The measure provides an indication of the organisation’s ability to pay its debts.

Operating cash flow

EBITDA less investments in property, plant and equipment and intangible assets, along with an adjustment for cash flow from change in working capital.

Purpose

Operating cash flow is used to monitor the cash flow generated from operating activities.

Operating profit/loss (EBIT)

Earnings before interest and taxes.

Purpose

Operating profit/loss (EBIT) provides an overall picture of the profit generated from operating activities.

Order backlog

The value of outstanding, not yet accrued project revenue from received orders.

Purpose

Order backlog provides an indication of the Group’s remaining project revenue from orders already received.

Organic growth adjusted for currency effects

The change in net sales for comparable units after adjustment for acquisition and currency effects, as a percentage of net sales during the comparison period.

Purpose

Organic growth in net sales does not include the effects of changes in the Group’s structure and exchange rates, which enables a comparison of net sales over time.

Return on capital employed

Operating profit/loss (EBIT) plus financial income divided by capital employed (total assets less interest-free liabilities). The components are calculated as the average over the last 12 months.

Purpose

The purpose is to analyse profitability in relation to capital employed.

Return on equity

Earnings for the period on a rolling 12-month basis divided by average total equity at the end of the period.

Purpose

Return on equity is used to analyse profitability, based on how much equity is used.

Working capital

Inventories, accounts receivable, earned but not yet invoiced income, prepaid expenses and accrued income and other current assets, less accounts payable, invoiced but not yet earned income, accrued expenses and deferred income and other current liabilities.

Purpose

Working capital is used to measure the company’s ability to meet short-term capital requirements.

Working capital as a percentage of net sales

Working capital at the end of the period as a percentage of net sales on a 12-month rolling basis.

Purpose

Working capital as a percentage of net sales is used to measure the extent to which working capital is tied up.