Financial definitions

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Definitions

 

Non-IFRS metricsDescriptionJustification for the use of metrics
Net turnover, USD thousandsAmounts invoiced in USD relating to net turnover, adjusted for [distributor and reseller discounts that are also denominated in other currencies].Fractal sales are invoiced in full in USD. The purpose of presenting the key figures is to present the organic growth for the Group.
Product profit/lossNet turnover less cost of goods sold.Demonstrates product profitability of the core business.
Product margin, %Product profit/loss in relation to net turnover.Demonstrates product profitability of the core business in relation to net turnover.
Operating profit/loss (EBIT)Realised operating profit/loss for Fractal.EBIT is a performance metrics that along with EBITDA, shows the earnings generated by the day-to-day activities.
Operating margin (EBIT margin), %EBIT in relation to net turnover.Enables comparisons of profitability irrespective of capital structure or tax situation.
Adjusted operating profit/loss (Adjusted EBIT)EBIT adjusted for items affecting comparability.Adjusted EBIT is a performance metric that is relevant to the understanding of the Fractal financial performance from the day-to-day activities. This metric indicates the financial performance of the day-to-day activities without any influence from significant cost or income items that affect the possibility of making comparisons over time, as described under “Items Affecting Comparability” below.
Adjusted operating margin (adjusted EBIT margin), %Adjusted EBIT in relation to net turnover.Adjusted EBIT margin is a key figure that is considered relevant to understanding the Fractal financial performance from the day-to-day activities without any impact from significant cost or income items that affect the ability to make comparisons over time.
EBITDAEBIT with a reduction of costs for depreciation of tangible and intangible fixed assets.EBITDA together with EBIT provides an overall picture of the generation of earnings from the day-to-day activities.
EBITDA margin, %EBITDA in relation to net turnover.

 

This key figure is used for analysis of the generation of earnings by Fractal.
Adjusted EBITDAEBITDA adjusted for items affecting comparability.Adjusted EBITDA is a performance metric that is considered relevant to the understanding of the Fractal financial performance from the day-to-day activities. This metric shows the financial performance of the day-to-day activities without any influence from significant cost or income items that affect the possibility of making comparisons over time, as described under “Items Affecting Comparability” below.
Adjusted EBITDA margin, %Adjusted EBITDA in relation to net turnover.Adjusted EBITDA margin is a key figure that is considered relevant to understanding the Fractal financial performance from the day-to-day activities without any impact from significant cost or income items that affect the ability to make comparisons over time.
Items affecting comparabilityIncome and cost items that are reported separately as a result of their nature

and amount. The items consist of costs for [the listing and related costs].

 

Items affecting comparability are used to explain differences in the historical profit/loss. Separate reporting and specification of Items affecting Comparability enables readers of the financial statements to understand and evaluate the adjustments made in the presentation of Adjusted EBIT and Adjusted EBITDA.
Net operating capitalCurrent assets less cash and cash equivalents, current liabilities except bank overdraft [, leasing liabilities] and shareholder loans.This metric shows how much net operating capital is tied up in the Fractal business.
Operating cash flowEBITDA less net investments in fixed assets and adjustments for changes in inventories, operating receivables and operating liabilities.[1]Operating cash flow is used by Fractal as a metric for how much cash flow the business generates.
Cash generation, %Operating cash flow in relation to EBITDA.Fractal uses the key ratio to monitor how effectively the Group manages ongoing investments and net operating capital.
Interest-bearing net liabilitiesInterest-bearing liabilities less cash and cash equivalents.Interest-bearing net liabilities is a metric that shows total indebtedness of the Company.
USD/SEK, averageNet turnover (SEK) in relation to net turnover, USD.The average USD/SEK exchange rate has a significant impact on Company net turnover and operating profit/loss.
Net turnover growth, %Net turnover growth for the period, calculated as an increase in net turnover compared to the preceding period, expressed as a percentage.Shows change in net turnover for the business during the period compared to the preceding period.
Organic net turnover growth, %Growth in net turnover growth in USD for the period, calculated as an increase in net turnover compared to the preceding period, expressed as a percentage.Shows organic business growth during the period compared to the preceding period.
Average annual growth rate (CAGR)Average annual growth rate in net turnover from the 2010/11 to 2020 financial year.This metric is relevant as it measures growth under the assumption of constant annual growth, thereby providing an even rate of growth over the given period.

 

 

Key Performance Indicators (KPIs)DescriptionJustification for the use of metrics
Sales reported back from external resellers, USDSales to end consumers in USD, reported by Fractal resellers.Sales reported back from external resellers measured in USD are used by Fractal as an indicator of the underlying demand for Company products.

 

[1] Change in inventories, operating receivables and operating liabilities as defined in the section, “Cash Flow”.

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