Definitions

Share of risk-bearing capital

Equity plus provisions for deferred tax liabilities as well as convertible debenture loans in relation to total capital.

Relevant for assessing ITAB’s potential to fulfill its financial obligations.

 

Return on equity

The net profit for the year attributable to the Parent Company’s shareholders in relation to average equity attributable to the Parent Company’s shareholders.

Relevant to assess how ITAB uses its assets to generate results in the company.

 

Return on capital employed

Profit after financial items plus financial borrowing costs in relation to average balance sheet total minus non interest-bearing liabilities.

Relevant to assess ITAB’s efficiency and value creation from the business.

 

Return on total capital

Profit after financial items plus financial borrowing costs in relation to average total capital.

Relevant to assess the ability to generate results on the Group’s assets regardless of financing costs.

 

Direct yield

Proposed dividend in relation to the share price on the closing day.

Return measure for shareholders.

 

Discount rate, (WACC)

Weighted Average Cost of Capital – weighted required return for equity and borrowed capital against the company’s future earnings.

Measures the required return on ITAB’s capital and is used to discount future cash flows.

 

EBITDA

Operating profit before depreciation, amortisation and impairment of non-current assets.

A central profit measure to assess the profit development for the company over time.

 

Equity per share

Equity at the end of the period attributable to the Parent Company’s shareholders in relation to the number of shares at the end of the period.

Measure to describe the size of the equity that belongs to the shareholders in the parent company.

 

Cash flow from operating activities per share

Cash flow from operating activities in relation to the average number of outstanding shares.

The measure highlights ITAB’s ability to generate cash flow and pay its shareholders.

 

Average number of employees

Number of worked hours divided by normal annual working time.

The measure shows the size of ITAB’s workforce.

 

Earnings per share

Net profit for the year attributable to the Parent Company’s shareholders in relation to average number of shares.

A valuation measure that highlights ITAB’s ability to pay its shareholders.

 

Earnings per share after dilution

Net profit for the period that is attributable to the Parent Company’s shareholders plus costs attributable to convertible loans in relation to the number of shares, including shares that are added on conversion of outstanding convertibles.

A valuation measure that highlights ITAB’s ability to pay its shareholders after conversion.

 

Interest-bearing net debt

Non-current and current interest- bearing liabilities minus interest- bearing assets as well as cash and cash equivalents.

Measures to show ITAB’s total loan financing.

 

Interest coverage ratio

Income after financial items plus financial interest expenses in relation to financial borrowing costs.

Demonstrates ITAB’s ability to cover its financial costs.

 

Operating margin

Operating profit in relation to net sales.

Relevant to assess ITAB’s efficiency and added value.

 

Equity/assets ratio

Equity in relation to total capital.

Highlights financial risk.

 

Profit margin

Profit after financial items in relation to net sales.

Relevant to assess ITAB’s efficiency and added value.