DEFINITIONS

Acquired growth¹
Changes in net sales attributable to business acquisitions compared with the same period last year. Acquired growth is used as a component to describe the change in consolidated net sales in which acquired growth is distinguished from organic growth, divestments and exchange rate effects, see reconciliation table.

Capital employed¹
Total assets minus non-interest-bearing liabilities and provisions.

Capital employed shows the size of the company’s assets that have been lent to the company’s owners or that have been lent out by lenders, see reconciliation table.

Cash flow from operating activities per share¹
Cash flow from operating activities, divided by the average number of outstanding shares after repurchase.

This measure is used so investors can easily analyse the size of the surplus generated per share from operating activities.

Debt/equity ratio¹ ²
Financial net liabilities divided by equity.

A measure used to analyse financial risk.

Earnings per share (EPS)
Shareholders’ share of profit for the period after tax, divided by the weighted average number of shares during the period. Performance measures under IFRS.

Earnings per share (EPS), diluted
Shareholders’ share of profit for the period after tax, divided by the weighted average number of shares during the period, adjusted for the additional number of shares in the event of outstanding options being used.

EBITA¹
Operating profit before amortisation of intangible assets.

EBITA is used to analyse the profitability generated by operating activities, see reconciliation table..

EBITA-margin¹
EBITA as a percentage of net sales.

EBITA margin is used to the show the degree of profitability in operating activities.

EBITDA¹
Operating profit before depreciation and amortisation.

EBITDA is used to analyse the profitability generated by operating activities, see reconciliation table.

Equity ratio¹ ²
Equity as a percentage of total assets.

The equity/assets ratio is used to analyse financial risk and show the percentage of assets that are funded with equity.

Equity per share¹
Equity divided by number of shares outstanding at the reporting period’s end.

This measures how much equity is attributable to each share and is published to make it easier for investors to conduct analyses and make decisions.

Financial net deb¹
The net of interest-bearing debt and provisions minus cash and cash equivalents.

Net debt is used to monitor changes in debt, analyse the Group indebtedness and its ability to repay its debts using liquid funds generated from the Group’s operating activities if all debt fell due for repayment today and any necessary refinancing.

Financial net debt/EBITDA¹
Net financial debt divided by EBTIDA.

Net financial debt compared with EBITDA provides a performance measure for net debt in relation to cash- generating earnings in the business, i.e. it gives an indication of the business’ ability to repay its debts. This measure is generally used by financial institutions to measure creditworthiness.

Financial items¹
Finance income minus finance costs.

Used to describe changes in the Group’s financial activities.

Interest coverage ratio¹
Earnings after net financial items plus interest expense and bank charges divided by interest expense and bank charges.

This performance indicator measures the Group’s capacity through its business operations and finance income to generate a sufficiently large surplus to cover its finance costs, see reconciliation table.

Net debt excluding pensions¹
The net of interest-bearing debt and provisions excluding pensions minus cash and cash equivalents.

A measure used to analyse financial risk, see reconciliation table.

Net debt excluding pensions/equity ratio¹ ²
Net debt excluding pensions divided by shareholders’ equity.

A measure used to analyse financial risk, see reconciliation table.

Net investments in non-current assets¹
Investments in non-current assets minus sales of non-current assets.

This measure is used to analyse the Group’s investments in renewing and developing property, plant and equipment.

Operating margin¹
Operating profit as a percentage of net sales.

This measure is used to specify the percentage of sales that is left to cover interest and tax, and to provide a profit, after the company’s costs have been paid.

Operating profit¹
Operating income minus operating expenses.

Used to describe the Group’s earnings before interest and tax.

Organic growth¹
Changes in net sales excluding currency effects, acquisitions and divestments compared with the same period last year.

Organic growth is used to analyse underlying sales growth driven a change in volumes, product range and price for similar products between different periods, see reconciliation table.

Outstanding shares
Total number of shares less treasury shares repurchased by the Company.

Profit after financial items¹
Profit/loss for the period before tax.

Used to analyse the business’ profitability including financial activities.

Return on capital employed¹
Profit before tax plus financial expenses as a percentage of capital employed. The components are calculated as the average of the last 12 months.

Return on capital employed shows the Group’s profitability in relation to externally financed capital and equity, see reconciliation table.

Return on equity²
Earnings after tax divided by equity. The components are calculated as the average of the last 12 months.

Return on equity measures the return generated on owners’ invested capital.

Return on working capital (P/WC)¹
EBITA divided by working capital.

P/WC is used to analyse profitability and is a measure that encourages high EBITA and low working capital requirements, see reconciliation table.

Working capital¹
Working capital (WC) is measured through an annual average defined as inventories plus accounts receivable less accounts payable.

Working capital is used to analyse how much working capital is tied up in the business, see reconciliation table.

1The performance measure is an alternative performance measure according to ESMA’s guidelines.
2Minority interest is included in equity when the performance measures are calculated.

RECONCILIATION TABLES, ALTERNATIVE KEY FINANCIAL INDICATORS

EBITA and EBITDA
Group, SEK million 2020/2021 2019/2020 2018/2019 2017/2018
Operating profit 989 1,161 910 701
Amortization, intangible non-current assets (+) 262 203 175 137
EBITA 1,251 1,364 1,085 838
Depreciation, property, plant and equipment (+) 250 215 52 43
EBITDA 1,501 1,579 1,137 881
Working capital and return on working capital (P/WC)
Group, SEK million 2020/2021 2019/2020 2018/2019 2017/2018
EBITA (rolling 12 months) 1,251 1,364 1,085 838
Inventory, annual average (+) 1,722 1,594 1,304 1,037
Accounts receivable, annual average (+) 1,756 1,854 1,542 1,231
Accounts payable, annual average (-) 1,062 1,033 817 677
Working capital (annual average) 2,416 2,415 2,029 1,591
Return on working capital (P/WC) (%) 52% 56% 53% 53%
Acquired growth and organic growth
Group 2020/2021 2019/2020 2018/2019 2017/2018
Acquired growth (SEK million, %) 809 (7%) 774 (8%) 999 (12%) 557 (8%)
Organic growth (SEK million, %) -906 (-8%) 765 (8%) 903 (11%) 356 (5%)
Divestments (SEK million, %) -4 (0%) -59 (-1%) -65 (-1%) -115 (-2%)
Exchange rate effects (SEK million, %) -298 (-2%) 107 (1%) 289 (4%) 46 (1%)
Total growth (SEK million, %) -399 (-3%) 1 587 (16%) 2 126 (26%) 844 (12%)
Net debt excluding pensions and net debt/equity ratio excluding pensions
Group 2020/2021 2019/2020 2018/2019 2017/2018
Financial net debt, SEK million 3,134 2,585 1,960 1,405
Pensions, SEK million (-) -336 -332 -260 -229
Net debt excluding pensions, SEK million 2,798 2,253 1,700 1,176
Equity, SEK million 3,450 3,076 2,520 2,131
Net debt/equity ratio excluding pensions, multiple 0.8 0.7 0.7 0.6
Interest coverage ratio
Group 2020/2021 2019/2020 2018/2019 2017/2018
Profit after financial items, SEK million 937 1105 865 665
Interest expenses and bank charges, SEK million (+) 63 57 41 31
Total 1,000 1162 906 696
Interest coverage ratio, multiple 15.8 20.5 22,1 22,7
Capital employed and return on capital employed
Group, SEK million 2020/2021 2019/2020 2018/2019 2017/2018
Profit after financial items 937 1,105 865 665
Financial expenses (+) 93 79 62 71
Profit after financial items plus financial expenses 1,030 1,184 927 736
Total assets, annual average (+) 9,309 7,926 6,324 4,996
Non-interest-bearing liabilities, annual average (-) -2,153 -1,947 -1,604 -1,319
Non-interest-bearing provisions, annual average (-) -413 -379 -378 -335
Capital employed 6,743 5,600 4,342 3,342
Return on capital employed, % 15% 21% 21% 22%

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