Added value
An increase in the value of a product, usually by integrating it with a customer's workflow, tailoring it to the customers needs, making it more easily accessible using software etc.
Average invested capital
The average of the previous year-end invested capital and the current year-end invested capital.
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Basic earnings per share
The profit or loss attributable to the ordinary shareholders of the Company, divided by the weighted average number of ordinary shares outstanding during the period.
Basic earnings per share
Profit for the year attributable to equity holders of the parent divided by the weighted average number of shares outstanding during the period.
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Capital employed
Total of non-current assets and working capital.
Capital expenditure (CAPEX)
Sum of expenditure on property, plant, and equipment, and other intangible assets.
Cash flow: Cash conversion ratio (CAR)
Calculated as cash flow from operations less net capital expenditure, divided by ordinary EBITA.
Cash Flow: Cash flow from operations
Ordinary EBITA before depreciation plus or minus autonomous movements in working capital.
Cash Flow: Cash flow ratio (CAR)
See Cash Conversion ratio.
Cash Flow: Free cash flow
Cash flow from operating activities less net capital expenditure, plus appropriation of Springboard cost (after taxation), plus dividends received from equity-accounted investees and investments. Free cash flow is the cash flow available for payments of dividend to shareholders, acquisitions, down payments of debt, and repurchasing of shares.
Constant Currencies
Income, expense, and cash flows in local currencies are recalculated to euro, using the average exchange rates of the previous calendar year.
Continuing operations
The Group, excluding those components and groups of the entity that have been disposed of or that are classified as held-for-sale.
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Diluted earnings per share
Minimum of:
• Profit for the year attributable to the equity holders of the Company divided by the weighted average number of shares (basic earnings per share), and
• Profit for the year attributable to the equity holders of the Company, including a correction of interest (net of taxes) to income of unsubordinated convertible bonds on assumed conversion, divided by the diluted weighted average number of shares.
Share options that are not in the money and related interest are excluded from the diluted earnings per share calculation. Shares conditionally awarded under the Long-Term Incentive Plan are included in the diluted earnings per share calculation at 100% of the grant.
Diluted ordinary earnings per share
Minimum of:
• Ordinary net income divided by the weighted average number of shares (ordinary earnings per share); and
• Ordinary net income, including a correction of interest (net of taxes) to income of unsubordinated convertible bonds on assumed conversion, divided by the diluted weighted average number of shares.
Share options that are not in the money and related interest are excluded from the diluted ordinary earnings per share calculation. Shares conditionally awarded under the LTIP are included in the diluted ordinary earnings per share calculation at 100% of the grant.
Dividend Cover
Dividend cover is defined as the number of times the dividend can be covered by ordinary net income.
The dividend cover is: Ordinary earnings per share divided by Dividend per share.
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Earnings per share growth (%)
Growth in earnings per share in comparison to a previous comparable period.
EBITA
EBITA (earnings before interest, tax, and amortization of publishing rights and impairments of goodwill and publishing rights) is calculated as operating profit less amortization of publishing rights and impairments of goodwill and publishing rights.
EBITA margin
EBITA margin is defined as EBITA as a percentage of revenues.
EBITDA
Earnings before interest, tax, depreciation, amortization of publishing rights and other intangible assets, and impairments of goodwill and publishing rights.
EROA
Expected return on plan assets is the expected return derived from the pension plan assets and is based on market expectations at the beginning of the period, for returns over the entire life of the related pension obligations.
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Financing Results
Interest received or receivable from third parties (‘finance income’) less interest paid or due to third parties (‘finance costs’), fair value changes through profit or loss of (derivative) financial instruments, foreign exchange differences on financial instruments, and fair value changes of contingent considerations.
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Guarantee equity
Sum of total equity, subordinated (convertible) bonds and perpetual cumulative bonds.
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Innovation rate
Revenues from new products for the 12-month period as a percentage of total revenues. See also the definition of new product revenues.
Invested Capital
Capital employed, excluding non-operating working capital and cash and cash equivalents, adjusted for amortization of publishing rights and goodwill amortized or written-off to equity (excluding for publishing rights and goodwill impaired and/or fully amortized), less any related deferred tax liabilities.
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KPI
Key Performance Indicator.
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Net income
Result for the year after tax.
Net (interest bearing) debt
Net (interest bearing) debt is defined as the sum of (long-term) loans, unsubordinated convertible bonds, perpetual cumulative subordinated bonds, bank overdrafts minus cash and cash equivalents and the fair value of derivative financial instruments.
Net interest coverage
Calculated as the ratio between operating profit before amortization of intangible assets and exceptional restructuring expense (ordinary EBITA), divided by financing results.
New product revenues
Revenues from new products created in current year. Existing products of which form and/or content has changed substantially are also included as revenues from new products.
Net capital expenditure
Calculated as capital expenditure less the net book value of disposed assets.
Net gearing
Net debt divided by total equity.
Net debt
Sum of (long-term) loans, borrowings, and bank overdrafts and deferred acquisition payments minus cash and cash equivalents and the net fair value of derivative financial instruments.
Net interest coverage
Calculated as the ratio between ordinary EBITA divided by net financing results.
New product revenues
Revenues from new products created in current year. Existing products of which form and/or content has changed substantially are also included as revenues from new products.
Non-benchmark costs
Non-benchmark costs relate to expenses arising from circumstances or transactions that, given their size or nature, are clearly distinct from the ordinary activities of the Group and are excluded from the benchmark figures: Springboard costs, Restructuring costs, Acquisition integration costs, Acquisition related costs as included in operating profit and fair value changes of contingent acquisition considerations in financing results.
NOPAT (Net operating profit after allocated tax)
Net operating profit after allocated tax. Calculated as ordinary EBITA less allocated tax, based on the effective tax rate on ordinary income before tax.
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Operating accounts receivable
Operating accounts receivable consist of trade receivables, prepayments, and other receivables.
Operating current liabilities
Operating current liabilities consist of salaries and holiday allowances, royalties payable, other liabilities and accruals, and social security premiums and other taxation.
Ordinary
The term ‘ordinary’ refers to figures adjusted for non-benchmark costs and, where applicable, amortization and impairment of goodwill and publishing rights. ‘Ordinary’ figures are non-IFRS compliant financial figures, but are internally regarded as key performance indicators to measure the underlying performance of the business.
Ordinary earnings per share
Ordinary net income divided by the weighted average number of shares.
Ordinary EBITA
EBITA before non-benchmark costs in operating profit.
Ordinary EBITA margin
Calculated as ordinary EBITA as a percentage of revenues.
Ordinary EBITDA
EBITDA before non-benchmark costs in operating profit.
Ordinary income before tax
Calculated as ordinary EBITA including financing results, income from investments, and results of equity-accounted investees.
Ordinary net income (=benchmark net profit)
Profit for the period attributable to the equity holders of the Company, excluding the after-tax effect of non-benchmark costs, results on disposals, amortization of publishing rights, and impairments of goodwill and publishing rights.
Organic Revenue Growth
Calculated as revenue of the period divided by revenue of the period in the previous reporting period, excluding the impact of acquisitions and disposals above a minimum threshold, all translated at constant currencies.
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Personnel costs
All labor costs relating to personnel employed (such as gross wages/salaries, bonuses or commissions, gratuities, holiday allowance, movements in the liability for vacation days and fringe benefits), and the costs of temporary staff.
Personnel expenses
All labor costs relating to personnel employed (such as gross wages/salaries, bonuses or commissions, gratuities, holiday allowances, movements in the liability for vacation days, pensions, social charges, share-based payment charges, and fringe benefits) and the costs of temporary staff.
Profit for the year
Group result for the year after tax, being allocated to the equity holders of the Company and the equity holders of non-controlling interests.
Professionals
Our customers are 'Professionals' meaning experts such as accountants, lawyers, fiscal specialists, experts in banking, insurance and securities, HR officers, medical specialists, nurses, scientists, pharmaceutical companies, teachers, students and educational institutions.
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Renewal rate
Value of the subscription portfolio at the start of the year minus losses (attrition) during the year, expressed as a percentage of the starting position.
Return on Invested Capital (ROIC)
Return on invested capital is calculated by dividing NOPAT by average invested capital.
Revenues
Revenues from third parties less applicable value added tax and discounts.
ROIC (Return on Invested Capital)
Ordinary EBITA after allocated tax (NOPAT) divided by average invested capital.
See Invested capital.
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Smart information tools
Information products that add value to professionals through indexing, linking, customization, or software functionality.
Subscription rate
Revenues from subscription products divided by total revenues.
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Total revenue growth
Growth of revenues over a period with respect to the previous comparable period (including the impact of organic growth, acquisitions and disposals, and where applicable currency effects).
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Workflow tools
Products and services that match the daily work of professionals, providing appropriate information at appropriate points in their work process.
Working capital
Current assets less current liabilities.
Working capital: non-operating working capital
Non-operating working capital is the total of receivables/ payables of derivative financial instruments, the short-term part of the restructuring provision, acquisition payables, interest receivable/payable, income tax receivable/payable, and borrowings and bank overdrafts.
Working capital: operating working capital
Operating working capital is working capital minus non-operating working capital minus cash and cash equivalents.
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