Definitions
Key ratios
Definition
Alternative performance measures Alternative performancemeasures (APMs) are financial measures of historical or future earnings trend, financial position or cash flow that are not defined in the applicable accounting regulations (IFRS). Alternative performance measures are used by Hemnet when it is relevant to followup and describe Hemnet's financial situation and to provide additional useful information to the users of the financial reports. These metrics are not directly comparable to similar performance mea - sures presented by other companies. ARPL (Average revenue per published listing) Average revenue per published listing, calculated as revenue from home sellers' published listings including related value-added products during the period, in relation to the number of published listings during the period. It is a measure that shows the company's earning capacity per published listing. EBITDA (earnings before interest, taxes, depreciation and amortisation) Operating profit plus depreciation of tangible and right-of-use assets as well as amortisation of intangible assets. Themeasure enables comparison of profitability over time, regardless of depreciation of tangible and right-of-use assets aswell as amortisation of intangible assets, aswell as independently of taxes and the company’s financing structure.
EBITDA margin
EBITDA in relation to net sales. The measure reflects the operating profitability of the business before depreciation of tangible and right-of-use assets as well as amortisation of intangible assets. The measure is an important component, together with net sales growth, to follow the company’s value creation.
Net financial items
Financial income less financial expenses. The measure reflects the company's financial activities.
Adjusted EBITDA
EBITDA adjusted for items affecting comparability. This measure enables comparison of profitability over time, regardless of depreciation of tangible and right-of-use assets as well as amortisation of intangible assets, and independently of taxes and the company’s financing structure. The measure is also adjusted for the impact of items affecting comparability to increase comparability over time. Adjusted EBITDA in relation to net sales. The measure reflects the operating profitability of the business before depreciation of tangible and right-of-use assets as well as amortisation of intangible assets. The measure is an important component, together with net sales growth, to follow the company’s value creation. The measure is also adjusted for the impact of items affecting comparability to increase comparability over time. Items affecting comparability include revenue and expenses that do not arise regularly in the operating activities. A separate disclosure of items affecting comparability clarifies the development of the underlying business. Interest-bearing liabilities minus cash and cash equivalents and current interest-bearing securities. The net debt measure is used to monitor the evolution of debt and to see the size of the refinancing needs. Since cash can be used to pay off debt at short notice, net debt is used instead of gross debt as a measure of total loan financing. Interest-bearing liabilities less cash and cash equivalents and current interest-bearing securities, in relation to EBITDA or adjusted EBITDA. The measure is a debt ratio that shows how many years it would take to pay off the company’s debt, provided that its net debt and EBITDA or adjusted EBITDA are constant and without taking into account the cash flows regarding interest, taxes and investments. Operating profit/loss in relation to net sales. The measure reflects the operational profitability of the business. The measure is an important component, together with net sales growth, to follow the company’s value creation. Total revenue less total operating expenses. The measure indicates the company’s operation profit/loss before financing and taxes and is used to measure the profit generated by operating activities. Interest-bearing liabilities in relation to total equity. The performance measure is a measure of the relationship between the company's two forms of financing. The mea - sure shows the proportion of debt capital in relation to the owners' invested capital. The measure reflects the financial strength, but also the leverage of the loan. A higher leverage ratio implies a higher financial risk and a higher financial leverage on invested capital. Total equity in relation to total assets. The measure reflects the company's financial position. A high equity/assets ratio provides a readiness to be able to handle periods of weak economic growth. At the same time, a higher equity/assets ratio creates a lower financial leverage. Profit after tax in relation to net sales of the business. The performance measure indicates the company's operating profit after financing and tax and is used to measure the profit generated by operating activities.
Adjusted EBITDA margin
Items affecting comparability
Net debt
Net debt/EBITDA Net debt/adjusted EBITDA
Operating margin
Operating profit/loss
Debt/Equity ratio
Equity/Assets ratio
Profit margin
74 · HEMNET GROUP | ANNUAL AND SUSTAINABILITY REPORT 2021
DEFINITIONS
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