Definitions

RETURN ON EQUITY

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 measure to show the return on the shareholders’ capital invested in the ITAB Group.

 

RETURN ON CAPITAL EMPLOYED

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

Relevant measure for assessing ITAB’s efficiency and added value from the business.

 

RETURN ON TOTAL CAPITAL

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

Relevant measure for assessing ITAB’s ability to generate profit on the Group’s assets regardless of financing costs.

 

DIRECT YIELD

Paid or proposed dividend in relation to the share price on the balance sheet date.

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

Earnings before interest, tax, depreciation and amortisation.

A relevant profit measure to assess the company’s profit trend over time.

 

EQUITY PER SHARE

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

Measure to describe how much equity belongs to the shareholders of the Parent Company.

 

CASH FLOW FROM OPERATING ACTIVITIES PER SHARE

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

This 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.

This measure shows the size of ITAB’s workforce.

 

EARNINGS PER SHARE

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

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

 

INTEREST-BEARING NET DEBT

Non-current and current interest-bearing liabilities including lease liabilities less interest-bearing assets as well as cash and cash equivalents.

A relevant measure to show ITAB’s total loan financing. This measure is included in the covenants in ITAB’s loan agreements with the company’s banks.

 

INTEREST-COVERAGE RATIO

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

Shows ITAB’s ability to cover its financial expenses.

 

OPERATING MARGIN

Operating profit in relation to revenue.

Relevant for assessing ITAB’s efficiency and added value.

 

EQUITY/ASSETS RATIO

Equity in relation to total capital.

This measure highlights financial risk.

 

CURRENCY-ADJUSTED SALES

Translation of the foreign subsidiaries’ income statements are conducted at each period’s average currency rate. For comparison of profit excluding currency effects, the companies are recalculated at the previous year’s average currency rate for the same period. ITAB applies the European Central Bank’s average rates for the whole period.

Relevant to show the sales and profit trend without any effects from currency rates fluctuations.

 

PROFIT MARGIN

Profit after financial items in relation to revenue.

Relevant for assessing ITAB’s efficiency and added value.