SAF-HOLLAND
Menü

Alternative Performance Measures

In addition to the key figures defined or specified in the applicable IFRS financial reporting framework, SAF-HOLLAND also provides key financial ratios derived from or based on the prepared financial statements. These are known as Alternative Performance Measures (APM).

SAF-HOLLAND considers these key financial ratios to be important supplemental information for investors and other readers of the financial reports and press releases. The key financial ratios should therefore be seen as an addition to and not a replacement of the information prepared in accordance with IFRS.

With regard to the requirements of the European Securities and Markets Authority (ESMA) Guidelines on Alternative Performance Measures, SAF-HOLLAND provides an overview of the Alternative Performance Measures used, their definition and their compilation.

Reconciliations

 

Definitions

A

Adjusted EBIT


Earnings before interest and taxes is adjusted for special items, such as depreciation and amortization from purchase price allocations, impairment of goodwill and intangible assets, reversal of impairment of intangible assets as well as restructuring and transaction costs.


SAF-HOLLAND considers Adjusted EBIT as a useful measure to show true operational performance in internal performance reportings and for discussion with the investment analyst community and debt rating agencies.


 

Adjusted EBIT margin


The adjusted EBIT margin is the adjusted EBIT (operating profit) divided by net sales.


SAF-HOLLAND recognizes Adjusted EBIT margin as one of the key operational management metrics as it provides an indication of the profitability of the business underwritten. This measure is used in setting director and management renumeration.

 

Adjusted EBITDA


Earnings before amortization and depreciation and interest and taxes is adjusted for special items, such as depreciation and amortization from purchase price allocations, impairment of goodwill and intangible assets, reversal of impairment of intangible assets as well as restructuring and transaction costs.


SAF-HOLLAND rates Adjusted EBITDA as an essential measure of our operating performance because it approximates the underlying operating cash flow by eliminating depreciation and amortization, impairment of goodwill and intangible assets, reversal of impairment of intangible assets as well as restructuring and transaction costs.
 

Adjusted EPS


Earnings per share (EPS), excluding depreciation and amortization from purchase price allocations, impairment of goodwill and intangible assets, reversal of impairment of intangible assets as well as restructuring and transaction costs.


SAF-HOLLAND favors Adjusted EPS as a good measure for investors to give an indication of the performance without restructuring and transaction costs and without the impact of depreciation and amortization from purchase price allocations, impairment of goodwill and intangible assets as well as reversal of impairment of intangible assets.
 

C

Cash conversion rate


Cash flow from operating activities before income taxes divided by adjusted EBIT, expressed as percent.


SAF-HOLLAND regards Cash conversion rate as a good measure for the proportion of profits that are converted to cash flow.
 

F

Free cash flow


Operating cash flow including changes in working capital, minus capital expenditure, pre-acquisition, pre-divident and pre-M&A


SAF-HOLLAND considers Free cash flow as an essential measure for evaluating the funds available for investing, distributions to shareholders and reducing debt.
 

I

Investment ratio


Investments in property, plant and equipment and intangible assets divided by sales, expressed as percent.


SAF-HOLLAND sees the Investment ratio as a relevant measure for investors to be able to understand the Group's investment intensity.
 

N

Net debt


The sum of current and non-current liabilities from interest-bearing loans and bonds less cash and cash equivalents and short-term investments.


SAF-HOLLAND considers Net debt as the main APM to measure the Company's level of debt.
 

Net working capital


R&D cost and capitalized development cost divided by sales, expressed as percent.


SAF-HOLLAND rates Net working capital as an important measure of both the Company's efficiency and its short-term financial health.
 

R

R&D ratio


R&D cost and capitalized development cost divided by sales, expressed as percent.


SAF-HOLLAND considers the R&D ratio as a relevant measure for investors to be able to understand the Group's research and development intensity.
 

Restructuring and transaction expenses


Restructuring and transaction expenses are defined as expenses that have occurred outside the normal course of the business. These expenses include – besides other – expenses associated with the purchase of entities, restructuring measures within the group and severance payments for executives. The definition of restructuring and transaction expenses used differs from the one defined in IAS 37.
 

ROCE


The total of operating income plus financial income as a percentage of average capital employed.


SAF-HOLLAND regards ROCE as a good measure to show how efficiently the Group generates revenues with the capital employed.