Alternative performance measures
Ependion presents certain financial measures in annual and interim reports that are not defined according to IFRS but are consistent with how investors and the company's management measure the company's financial performance. Ependion believes that these measures provide valuable supplementary information to investors and the company's management as they enable the evaluation of trends and the company's performance. Alternative key figures should not be seen as a substitute for financial information presented in accordance with IFRS but as a complement. The supplementary key figures reported in this report may differ in calculation methods from similar measures used by other companies.
Below are the definitions and justifications for each key figure, and in the PDFs further down, the calculation of each key figure is shown.
| Performance measure | Definition | Explanation |
|---|---|---|
|
Average |
Profit before tax plus financial costs for the past 12 months in relation to average capital employed. |
|
|
Average number of employees
|
Average number of employees during the year based on working hours. Excludes contracted staff. |
The cost attributable to the number of employees represents a large part of the Group's costs. The development of the average number of employees is therefore an important key figure to use when comparing the number of employees and costs. |
| Basic earnings per share | Net income after tax, attributable to the parent company’s shareholders, in relation to the weighted number of outstanding shares. | Shows how much profit is allocated to each outstanding share in the Group, without considering the effect of share dilution. |
| Capital employed | Equity plus interest-bearing liabilities. | Shows the total amount of capital the Group uses to run its business. This measure is an indicator of how much capital is tied up in the business to generate returns. |
| Earnings per share after dilution | Earnings per share after dilution is calculated by adjusting the weighted average number of shares by the estimated number of shares from incentive programs. Incentive programs are included in the dilution calculation from the end of each program. | Shows how much profit is allocated to each outstanding share in the Group after considering the effect of share dilution. Dilution occurs when the Group issues more shares, for example, for incentive programs, which leads to the profit being distributed over a larger number of shares. |
| EBIT | Net sales minus operating costs. | EBIT is an important indicator of how effective the Group is in its core business and provides an idea of profitability without being affected by financing decisions or taxes. |
| EBITDA | EBIT excluding depreciation and amortization on tangible (including right-of-use assets) and intangible fixed assets. |
Shows the Group's operating profit from regular operations excluding the effects of depreciation and amortization on tangible and intangible assets. This measure indicates the underlying cash-generating ability. |
| EBIT margin | EBIT in relation to net sales. | Shows the proportion of the Group's net sales that remains as operating profit after operating costs have been deducted. This measure provides an indication of the Group's operational profitability and how effectively the Group converts revenue into profit from regular operations. |
| Equity ratio | Equity in relation to total assets. | Shows the proportion of the Group's assets financed with equity, rather than with debt. This measure is used to assess the Group's long-term financial stability and strength |
| Equity per share before dilution |
Equity attributable to the parent company's shareholders divided by the number of shares. |
Shows how much equity each shareholder is entitled to at the Group's current value and provides an idea of the Group's financial strength and value per share based on equity. |
| Financial net debt in relation to EBITDA |
Interest-bearing liabilities, excluding net provisions for pensions, less cash and cash equivalents and investments in securities, divided by rolling 12-month EBITDA, adjusted for restructuring costs and acquired EBITDA. | Shows how long it would take for the Group to pay off its financial net debt based on operating profit before depreciation and amortization. This measure is used to assess the Group's financial health and ability to manage and pay off net debt. |
| Free cash flow | Cash flow from operating activities, cash flow from investing activities excluding cash flow from acquisitions of subsidiaries and investments in other companies, as well as amortization of lease liabilities. |
Shows how much money the Group generates after covering investments in fixed assets. This cash flow can then be used to pay off debts, reinvest in the Group, or for dividends. Free cash flow is an important measure of the Group's financial health and ability to create value for shareholders. |
| Net debt |
Interest-bearing liabilities less cash and cash equivalents and short-term investments. | Shows how indebted the Group is over time. |
| Net operating assets |
Equity plus interest-bearing liabilities minus financial assets. | Shows the capital the Group uses to finance ongoing operations, i.e., the amount of capital tied up in operating assets and required to keep the business running. |
| Operative cash flow | Cash flow from operating activities. | Shows how much money the Group generates from its main business activities. It reflects the Group's ability to generate cash through daily operations before considering investments and financing activities. |
| Order backlog | The total value of customer orders received by the Group that have not yet been delivered. | Shows how much revenue the Group expects to generate from already received orders. |
| Order intake | Net sales minus the difference between opening and closing order backlog. | Shows the value of orders or contracts the Group has received. It provides an indication of the Group's future net sales and is an important measure for predicting and planning for upcoming revenues and production. |
| Product development expenditure | Expenses for product development work, such as personnel costs, external consultant fees, and other external costs. This also includes expenses capitalized as assets in the balance sheet. |
Shows the costs the Group incurs to develop new products or improve existing products. This includes all expenses related to research, design, testing, and development of products intended for market launch. |
| Product development expenditure in relation to net sales | Product development expenses in relation to net sales. | Shows the proportion of the Group's revenue used to finance product development. It provides an indication of how much Ependion invests in developing new products or improving existing products to drive growth and competitiveness. This measure is particularly relevant for Ependion where continuous product development is crucial for long-term success. |
| Profit margin | Profit after tax in relation to net sales. | Shows the proportion of the Group's revenue that remains as profit after all costs have been deducted. This measure is an indicator of the Group's profitability and efficiency in converting its revenue into profit. |
| Return on capital employed | Profit before tax plus financial expenses for the past 12 months in relation to average capital employed. | Shows how effectively the Group uses the total capital employed in the operating business to generate profit. This measure provides an idea of how well the Group is at generating returns on the capital used in the business, including both equity and borrowed capital. |
| Return on equity after tax | Profit after tax for the past 12 months in relation to average equity. | Shows the Group's ability to generate returns on equity. |
| Return on operating capital | EBIT for the past 12 months in relation to average operating capital. | Shows how effectively the Group uses its operating capital to generate profit. This measure helps assess how well the Group manages its resources in relation to the profit generated by the operating business, without considering financing costs or investments. |
| Working capital | Current assets minus short-term liabilities. | Shows the Group's short-term financial health and operational efficiency. |
Alternative performance measures for download
Beijer Group has changed name to Ependion
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