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Definitions of Alternative Performance Measures

Proporation of risk-bearing capital
Equity, non-controlling share of equity and deferred tax liability divided by balance sheet total.

Return on shareholders' equity
Profit/loss for the year as a percentage of average shareholders' equity.

Return on operating capital
Operating profit divided by average operating capital.

Gross contribution
Operating income minus cost of goods.

Share price/Equity
Share price divided by equity per share.

Direct yield
Dividend per share as a percentage of the share price.

Equity per share
Equity divided by average number of shares at the balance sheet date.

Capital turnover rate
Net sales divided by average operating capital.

Cash and cash equivalents
Cash and bank balances plus hort-term investments with a maturity of less than three months.

Earnings per share
Profit/loss for the year divided by the average number of shares on the balance sheet date.

Net borrowings
The total of interest-bearing liabilities minus interest-bearing assets.

P/E ratio
Share price divided by earnings per share

Interest coverage ratio
Operating profit/loss plus financial income divided by financial expenses.

Working capital
Non-interest-bearing current assets minus non-interest-bearing liabilities excluding deferred tax.

Net debt/equity ratio
Net borrowings divided by equity including non-controlling interests.

Equity/assets ratio
Equity including non-controlling interests as a percentage of blanace sheet total

Operating capital
Total assets minus cash and cash equivalents, interest-bearing receivables and non-interest-bearing operating liabilities, but excluding deferred tax.

Dividend pay-out ratio
Dividend per share as a percentage of earnings per share.

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