Financial definitions
Definitions
| Non-IFRS metrics | Description | Justification for the use of metrics |
| Net turnover, USD thousands | Amounts 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/loss | Net 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. |
| EBITDA | EBIT 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 EBITDA | EBITDA 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 comparability | Income 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 capital | Current 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 flow | EBITDA 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 liabilities | Interest-bearing liabilities less cash and cash equivalents. | Interest-bearing net liabilities is a metric that shows total indebtedness of the Company. |
| USD/SEK, average | Net 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.
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| Key Performance Indicators (KPIs) | Description | Justification for the use of metrics |
| Sales reported back from external resellers, USD | Sales 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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