Definitions

In the Annual Report, Gunnebo presents certain key performance measures that are not defined according to IFRS. The Group ­believes that these measures ­provide investors and the management with valuable supplementary disclosures, since they enable a valuation of the Group’s financial results and position. Since not all companies calculate financials in the same way, they are not always comparable with measures used by other ­companies. Definitions of Gunnebo key performance measures which are not defined according to IFRS are presented below.

Capital Employed

Operating capital employed plus capital employed from the Group functions, goodwill and right of use assets.

Debt/Equity Ratio

Net debt in relation to equity.

Dividend Yield

Dividend in relation to listed price on 31 December.

EBIT Margin

EBIT as percentage of net sales.

EBITA

EBIT before amortisation and impairment of acquisition related intangible assets, excluding items affecting comparability and effect of IFRS 16 Leases.

EBITA Margin

EBITA as a percentage of net sales.

EBITDA

EBIT before depreciation/amortisation and impairment of intangible assets, right of use assets and property, plant and equipment.

EBITDA Margin

EBITDA as a percentage of net sales.

Equity per Share

Equity attributable to the shareholders of the Parent Company ­divided by the number of shares excluding C-shares, as these have no dividend rights, at the end of the period.

Equity Ratio

Equity as a percentage of total assets.

Free Cash Flow

Cash flow from operating activities and investing activities excluding cash flows related to acquisitions and divestments, adjusted for finance lease payments.

Free Cash Flow Per Share

Free cash flow divided by weighted ­average number of shares ­excluding C-shares as these have no dividend rights.

Gross Margin Excluding IAC

Gross profit excluding IAC, as a percentage of net sales.

Items Affecting Comparability (IAC)

Items affecting comparability are defined as significant items affecting EBIT that are isolated in order to enable a complete understanding of the Group’s financial performance and comparability between periods. Items affecting comparability mainly relate to restructuring activities or structural changes and would include costs for closure of businesses/locations and personnel reductions.

Net Debt

Total liabilities from financing activities less cash and cash equivalents at the end of the period.

Net Debt incl. Post-Employment Benefits (PEB)

Total liabilities from financing activities and provisions for post-employment benefits less cash and cash equivalents at the end of the period.

Net Debt/ebitda

Net debt divided by EBITDA rolling 12 months.

Net Debt incl. PEB/ebitda

Net debt including provisions for post-employment benefits divided by EBITDA, rolling 12 months.

Operating Capital Employed

The capital employed that is utilised in the four Business Units. It consists of property, plant and equipment, other intangible assets, inventory, customer receivables and other short-term assets less accounts payables and other short-term liabilities, excluding short term taxes and financial items.

Order Intake Growth

Growth in order intake in constant currencies including organic and acquired order intake, excluding divested order intake.

Reported Growth

The change in reported nominal values, from one period to the next.

P/E Ratio

Listed price on 31 December divided by diluted earnings per share.

Return on Capital Employed

EBITA rolling 12 months as a percentage of average capital employed.

Return on Operating Capital Employed

EBITA rolling 12 months for the four business units, as a percentage of average operating capital employed.

Sales Growth

Growth in net sales in constant currencies including organic and acquired sales, excluding divested sales.