Definitions
Adjusted earnings per share1)
Profit/loss for the year adjusted for items affecting comparability attributable to equity holders of the Parent Company divided by the average number of shares outstanding during the year.
Adjusted EBITA1)
Earnings before interest, tax and accounting effects arising from business combinations, referring to amortizations, depreciations and impairments, adjusted for items affecting comparability.
Adjusted EBITA margin1)
Earnings before interest, tax and accounting effects arising from business combinations, referring to amortizations, depreciations and impairments, adjusted for items affecting comparability, in relation to sales.
Capital turnover
Rolling 12 months revenue divided by the average total assets in the five last quarters.
Cash conversion
Free operating cash flow, adjusted for items affecting comparability divided by adjusted EBITA.
Earnings per share
Profit/loss for the year attributable to equity holders of the Parent Company divided by the average number of shares outstanding during the year.
EBITA
Earnings before interest, tax and accounting effects arising from business combinations, referring to amortizations, depreciations and impairments.
EBITDA
Operating profit (EBIT) less depreciation, amortiztion and impairments.
Financial net debt/EBITDA
Interest-bearing current and non-current liabilities, excluding net pension liabilities and leases, less cash and cash equivalents divided by rolling 12 month EBITDA.
Free operating cash flow
Earnings before interest, taxes and depreciation adjusted for noncash items and adjusted for cash items related to acquisitions not considered operational plus the change in net working capital minus investments and disposals of rental equipment and tangible and intangible assets.
Items affecting comparability (IAC)
Sandvik reports EBITA, EBIT, profit before tax and earnings per share adjusted for items affecting comparability. IAC includes capital gains and losses from divestments and larger restructuring initiatives, impairments, capital gains and losses from divestments of financial assets, M&A related costs as well as other material items having a significant impact on the comparability.
Lost Time Injury Frequency Rate (LTIFR)
Number of lost time injuries per million worked hours.
Net debt/equity ratio
Interest-bearing current and non-current debts, including net pension liabilities, less cash and cash equivalents divided by total equity.
Net working capital (NWC)
Total of inventories, trade receivables, account payables and other current non-interest-bearing receivables and liabilities, including those classified as asset and liabilites held for sale/distribution, but excluding tax assets and liabilities and provisions.
Order intake
Order intake for a period refers to the value of all orders received for immediate delivery and those orders for future delivery for which delivery dates and quantities have been confirmed. General sales agreements are included only when they have been finally agreed upon and confirmed. Service contracts are included in the order intake with the full binding contract amount upon signing.
Organic growth
Change in order intake and revenues after adjustments for exchange rate effects and structural changes such as divestments and acquisitions. Sandvik generates the majority of its revenues in currencies other than in the reporting currency (i.e. SEK, Swedish Krona). Organic growth is used to analyze the underlying sales performance in the Group.
Return on capital employed (ROCE)
Earnings before interest and taxes plus financial income, on a 12 month rolling basis, as a percentage of an average rolling 12 months capital employed.
Return on capital employed (ROCE), excluding amortization of surplus values
Earnings before interest and taxes, adjusted for accounting effects arising from business combinations, referring to amortizations, depreciations and impairments, plus financial income, on a 12 month rolling basis, as a percentage of an average rolling 12 months capital employed.
Return on total equity
Consolidated net profit/loss for the year as a percentage of average total equity.
Total Recordable Injury Frequency Rate (TRIFR)
Total number of injuries per million worked hours.
1) Alternative Performance Measures: Sandvik presents certain financial measures that are not defined in accordance with IFRS. Sandvik believes that these measures have an important purpose of providing useful supplemental information to investors and the company’s management when they allow evaluation of trends and the company’s performance. As not all companies calculate the financial measures in the same way, these are not always comparable to measures used by other companies. These financial measures should not be seen as a substitute for measures defined under IFRS.