Definitions

Return on equity

Profit for the year attributable to owners of the parent divided by average equity attributable to owners of the parent.

Dividend yield

Dividend on ordinary shares expressed as a percentage of the Class B share’s market price.

EBITDA

(Earnings Before Interest, Tax, Depreciation and Amortisation). EBITA with depreciation, amortisation and impairment reversed.

EBITA margin

EBITA expressed as a percentage of net sales.

Equity per share

Equity attributable to owners of the parent divided by the number of outstanding ordinary shares at the end of the period.

Consolidated value

The Group’s share of the company’s equity, any residual consolidated surplus and deficit values minus any intra-Group profits. In addition, shareholder loans and capitalised interest on such loans are included.

Organic growth

Net sales growth in comparable units, excluding currency fluctuations. The effects of acquisitions and divestments are excluded.

P/E ratio

Market share price for Class B share in relation to earnings per share.

Basic earnings per share

Profit for the period attributable to owners of the parent company divided by the average number of outstanding ordinary shares.

Diluted earnings per share

The calculation of diluted earnings per share is based on consolidated profit for the year attributable to the owners of the parent company and on the weighted average number of shares outstanding during the year. When calculating diluted earnings per share, earnings and the average number of shares are adjusted to take into account the effects of potential ordinary shares, which, for the reported periods, pertain to convertible debt instruments and warrants issued to employees. Dilution resulting from convertible debt instruments is calculated by increasing the number of shares by the total number of shares to which the convertibles correspond and increasing earnings by the recognised interest expense after tax. Potential ordinary shares are considered to have a dilutive effect only during periods when they result in lower earnings or a higher loss per share.
Interest-bearing net debt
Interest-bearing liabilities and pension provisions minus fixedincome assets and cash and cash equivalents.

Equity ratio

Reported equity expressed as a percentage of total assets. Non-controlling interests are included in equity.

Total return

Price development of Class B shares including reinvested dividends on ordinary shares.

Company performance measures

The following performance measures are presented for Ratos’s business areas – both for the companies in their entirety (100% of the holdings in the companies) regardless of Ratos’s holding and adjusted for the size of Ratos’s holding in each company. When presenting performance measures adjusted for the Ratos’s holding, the holding in percentage is multiplied with the current key figure (performance measure) in order to get the value according to the Ratos’s holding. For example: holding equals 70% and the company net sales is 100 MSEK for the period – Net sales adjusted for Ratos’s holding equals to 70 MSEK (70% x 100 MSEK):

• Net sales in the companies – Net sales for the entire current period and comparative periods in the companies owned at the end of the reporting period.
• EBITDA in the companies – Operating profit before depreciation and amortisation in the companies owned at the end of the reporting period.
• EBITA in the companies – Operating profit for the entire current period and comparative periods in the companies owned at the end of the reporting period before impairment of goodwill as well as amortisation and impairment of other intangible assets arising in conjunction with company acquisitions and equivalent transactions.
• Earnings in the company portfolio – Reported EBITA excluding IFRS 16 for the current company and period.
• Profit/loss before tax in the companies – Profit or loss before tax in the companies owned at the end of the reporting period.
• Interest-bearing net debt in the companies – Interest-bearing liabilities and pension provisions minus fixed-income assets and cash and cash equivalents in companies owned at the end of the reporting period.
• Cash flow from operations – Cash flow from operating activities, excluding paid tax, but including investments and divestments of intangible assets and property, plant and equipment, respectively