Glossary
  • Adjusted
    'Adjusted' refers to figures from continuing operations, adjusted for non-benchmark items and, where applicable, amortization and impairment of goodwill and acquired identifiable intangible assets. 'Adjusted' figures are non-IFRS compliant financial figures, but are internally regarded as key performance indicators to measure the underlying performance of the business. 
  • Adjusted earnings per share
    Adjusted net profit divided by the weighted average number of ordinary shares outstanding.
  • Adjusted EBITDA
    EBITDA adjusted for non-benchmark items in operating profit.
  • Adjusted net financing results
    Total financing results adjusted for non-benchmark items in total financing results.
  • Adjusted net profit
    Profit for the period from continuing operations attributable to the owners of the company, excluding the after-tax effect of non-benchmark items, amortization of acquired identifiable intangible assets, and impairments of goodwill and acquired identifiable intangible assets.
  • Adjusted operating profit
    Operating profit before amortization and impairment of acquired identifiable intangible assets and impairment of goodwill and adjusted for non-benchmark items.
  • Adjusted operating profit margin
    Adjusted operating profit as a percentage of revenues.
  • Adjusted profit before tax
    Sum of adjusted operating profit, adjusted net financing costs, income from investments, and share of profit of equity-accounted investees (net of tax).
  • Allocated tax
    Allocated tax is benchmark tax rate multiplied by adjusted operating profit. 
  • 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.
  • Benchmark tax rate
    Tax on adjusted profit, divided by adjusted profit before tax.
  • Capital expenditure (CAPEX) 
    Sum of capitalized expenditure on property, plant, and equipment and other intangible assets less any carrying value of assets disposed of. 
  • Cash flow: cash conversion ration
    Adjusted operating cash flow divided by adjusted operating profit.
  • Cash flow: adjusted free cash flow
    Net cash from operating activities less capital expenditure, plus paid acquisition and divestment expenses, plus dividends received, and one-off cash tax benefits. Adjusted free cash flow is the cash flow available for payments of dividend to shareholders, acquisitions, repayments of debt, and repurchasing of shares.
  • Cash flow: adjusted operating cash flow
    Adjusted EBITDA plus or minus autonomous movements in working capital, less capital expenditure.
  • Constant currencies
    Income, expense, and cash flows in local currencies are recalculated to euros, using the average exchange rates of the previous calendar year.
  • Continuing operations
    The results of the group, excluding the results of those components that have been presented as discontinued operations. 
  • Diluted adjusted earnings per share

    Adjusted net profit divided by the weighted average number of ordinary shares outstanding (adjusted earnings per share).

    Shares conditionally awarded under LTIP-plans are included in the calculation of the diluted weighted average number of ordinary shares outstanding if the vesting conditions are satisfied at balance sheet date.

  • Diluted earnings per share
    Profit for the year attributable to the owners of the Company divided by the weighted average number of ordinary shares outstanding (basic earnings per share) adjusted for the effects of all dilutive potential ordinary shares.

    Shares conditionally awarded under LTIP-plans are included in the calculation of the diluted weighted average number of ordinary shares outstanding if the vesting conditions are satisfied at balance sheet date.
  • EBITA
    EBITA (earnings before interest, tax, and amortization) is calculated as operating profit plus amortization and impairment of acquired identifiable intangible assets and impairment of goodwill. 
  • EBITDA
    Operating profit before amortization and impairment of acquired identifiable intangible assets and impairment of goodwill, and before amortization of other intangible assets and depreciation and impairment of property, plant, and equipment. 
  • Guarantee equity
    Sum of total equity, subordinated (convertible) bonds and perpetual cumulative bonds.
  • Invested capital
    Capital employed, excluding investments in equity-accounted investees, deferred tax assets, non-operating working capital and cash and cash equivalents, adjusted for accumulated amortization on acquired identifiable intangible assets and goodwill amortized, and goodwill written-off to equity (excluding acquired identifiable intangible assets and goodwill impaired and/or fully amortized), less any related deferred tax liabilities.
  • Net debt
    Sum of long-term debt, borrowings and bank overdrafts, and deferred and contingent acquisition payments minus cash and cash equivalents, divestment receivables, collateral deposited, and the net fair value of derivative financial instruments.
  • Net-debt-to-EBITDA ratio
    Net debt divided by EBITDA, adjusted for divestment related results on operations.
  • Net gearing
    Net debt divided by total equity.
  • Net interest coverage
    Adjusted operating profit, divided by adjusted financing costs.
  • Non-benchmark items
    Non-benchmark items 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.
    Non-benchmark items in operating profit: results from divestments (including directly attributable divestment costs), additions to provisions for restructuring of stranded costs following divestments, acquisition related costs, additions to acquisition integration provisions, subsequent fair value changes on contingent considerations, and other.

    Non-benchmark items in total financing results: financing component employee benefits, impairment of investments available-for-sale, and divestment related results on equity-accounted investees. 
  • NOPAT
    Net operating profit after allocated tax. Adjusted operating profit less allocated tax, based on the benchmark tax rate.
  • Operating accounts receivable
    Operating accounts receivables consist of trade receivables, prepayments, and other receivables.
  • Operating current liabilities
    Operating current liabilities consist of salaries and holiday allowances, social security premiums and other taxation, pension-related payables, royalty payables, and other liabilities and accruals.
  • Organic revenue growth
    Calculated as revenue of the period, excluding the impact of acquisitions above a minimum threshold, divided by revenue of the period in the previous reporting period, adjusted for the impact of divestments of operations above a minimum threshold, all translated at constant currencies.
  • Tax on adjusted profit
    Income tax expense adjusted for tax benefit on amortization of acquired identifiable intangible assets and impairments, tax on non-benchmark items, and any material changes in tax laws and tax rates in the jurisdictions where the group operates.
  • 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, collateral, the short-term part of the restructuring provision, deferred and contingent acquisition payables, interest receivables/payables, income tax receivables/payables, share buyback commitments 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.