Financial Definitions

Financial Definitions

Financial key figures

Return on shareholders’ equity
Profit for the period, attributable to shareholders of the Parent Company, as a percentage of average shareholders’ equity, excluding non-controlling interests. 

Yield 
Dividend as a percentage of the market price.

Net debt 

Interest-bearing liabilities less interest-bearing assets and cash and cash equivalents.

Free cash flow 
Operating cash flow reduced by cash flow from financial items and tax and the effect of restructuring measures on cash flow.

Free cash flow per share
Free cash flow divided by the average number of shares outstanding.

P/E ratio
Market price divided by earnings per share.

Net debt/equity ratio
Net debt divided by total equity.

Equity/assets ratio
Total equity divided by total assets.

Earnings per share
Profit for the period, attributable to shareholders of the Parent Company, divided by the average number of shares outstanding.

Earnings per share after dilution
Profit for the period, attributable to shareholders of the Parent Company, divided by the average number of shares outstanding plus the average number of shares added through the conversion of outstanding debentures and warrants.

Operating key figures *)

Number of employees at year-end
Including insourced staff and temporary employees

Return on shareholders’ equity 
Profit for the period, attributable to shareholders of the Parent Company, excluding items affecting comparability, net after tax, divided by average equity, excluding non-controlling interests.

Return on capital employed (ROCE) 
Operating profit divided by the average capital employed.

EBITDA
Operating profit excluding depreciation/amortization and impairment of PPE and intangibleassets, excluding items affecting comparability.

EBITDA/Net interest income/expense
EBITDA divided by net interest income/expense (interest income less interest expenses).

EBITDA margin 
EBITDA excluding profit from participations in joint ventures/associated companies as a percentage of net sales.

Rate of capital turnover
Net sales as a percentage of average capital employed.

Cash conversion ratio 
Operating cash flow as a percentage of operating profit, excluding items affecting comparability.

Average number of employees 
Average number of employees during the year based on hours worked. Excluding insourced staff.

Net debt/EBITDA 
Net debt divided by EBITDA.

Operating cash flow 
EBITDA excluding non-cash items, capital expenditures, divested PPE and changes in working capital. The key figure excludes cash flow from restructuring.

Operating cash flow per share 
Operating cash flow divided by the average number of shares outstanding.

Earnings per share
Profit for the period, attributable to shareholders of the Parent Company, excluding items affecting comparability net after tax, divided by the average number of shares outstanding.

Operating profit 
Operating profit as stated in the income statement excluding items affecting comparability.

Operating margin (ROS – Return On Sales) 
Operating profit as a percentage of net sales.

Capital employed
Total assets less interest-bearing investments and noninterest-bearing operating liabilities (including pension liabilities) and excluding tax assets and tax liabilities. 

Western Europe
Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, Malta, the Netherlands, Norway, Portugal, Sweden, Switzerland, Spain, the U.K.

Equity method 
Associated companies and joint ventures in the Group are recognized in line with the equity method, implying that the initial participation is changed to reflect the Group’s share in the company’s profit or loss and for any dividends.

*) for continuing operations.