A to Z glossary

Adjusted operating profit, EBIT
Operating profit before items affecting comparability.

Adjusted operating profit, EBITA
Operating profit, EBIT, before items affecting comparability and amortization of intangible assets.

Adjusted operating profit, EBITDA
Operating profit, EBIT, before items affecting comparability, and amortization, depreciation and impairment of intangible and tangible assets and right-of-use assets.

Adjusted profit after net financial items
Profit after net financial items excluding items affecting comparability.

Capital efficiency
Adjusted operating profit R12, EBITA, as a percentage of average working capital defined as inventories, accounts receivable and advances to suppliers less accounts payable and advance payments from customers.

Capital employed
Total assets less non-interest- bearing liabilities.

Dividend ratio
Dividend relative to net profit for the year attributable to Parent Company shareholders.

Dividend yield
Dividend per share relative to share price.

Earnings growth
Percentage change in adjusted operating profit, EBITA.

Earnings per share
Net profit less tax, in relation to the number of shares outstanding.

Earnings per share after dilution
Net profit less tax, in relation to the number of shares outstanding adjusted for potential shares giving rise to a dilution effect.

EBIT margin, EBITA margin
Operating profit, EBIT, or EBITA, in relation to net revenue.

Employees
Employees refer to both the Group’s employees and contractors.

Equity ratio
Shareholders’ equity in relation to total assets.

Items affecting comparability
Items affecting comparability are items in the balance sheet that affect comparability with earnings from other periods pertaining to the company’s operations.

Net debt
Interest-bearing liabilities excluding lease liabilities according to IFRS 16 less interest-bearing assets.

Net debt/EBITDA
Net debt in relation to adjusted operating profit, EBITDA

Net debt/equity ratio
Net debt in relation to shareholders equity.

Order bookings
Orders from customers for goods or services at fixed terms.

Organic growth
Change in net revenue or order bookings adjusted for currency and acquisitions. Any currency effects from acquisitions are calculated as a change related to acquisitions.

Return on shareholders’ equity
Adjusted profit after net financial items, R12, less 22.0 percent tax, in relation to average shareholders’ equity.

Return on capital employed
Adjusted profit after net financial items, R12, plus interest expenses, in relation to average capital employed.

Shareholders’ equity
Shareholders’ equity attributable to Parent Company shareholders.