Alternative performance measures
The annual report includes performance measures defined in accordance with the International Financial Reporting Standards (IFRS) as well as selective alternative performance measures. Alternative performance measures provide important information for readers of the annual report about Rieter’s performance and financial position. They are used as an essential element of the financial management of the Group.
The following table includes the definitions of alternative performance measures as used by Rieter:
Alternative performance measure | Reference in the annual report | Rieter definition |
|---|---|---|
Order intake |
| Order intake includes firm orders received from third-party customers for Rieter products and services in the reporting period. Orders are reported as order intake if the following criteria have been met:
Orders are financially secured by means of advance payment, irrevocable letter of credit, bank guarantee, credit insurance, or other instruments. In addition, customer credit limits are used, mainly in the After Sales and Components businesses. Order intake comprises the total gross order value excluding value-added taxes. Additions to existing orders and cancellations are also included in order intake. |
Order backlog |
| The order backlog is defined as the total undiscounted value of open customer orders at the end of the reporting period. The order backlog is expected to turn into sales in the future. |
Operating result before interest and taxes (EBIT) |
| Operating result before financial income and expenses as well as income taxes. |
Operating result before interest, taxes, depreciation, amortization, and impairment (EBITDA) |
| Operating result before interest and taxes (EBIT), excluding depreciation and impairment of property, plant, and equipment, and amortization and impairment of intangible assets. |
Operating result before interest, taxes, restructuring, and impairment (EBIT before restructuring and impairment; EBIT b.r.a.i.) |
| Operating result before interest and taxes (EBIT) excluding restructuring charges and impairment. Restructuring charges include restructuring costs (e.g. personnel expenses and other costs directly associated with restructuring measures) and reversals of existing restructuring provisions. Impairment contains impairment losses on property, plant, and equipment and intangible assets. |
Capital expenditure |
| Purchase of property, plant, and equipment, and intangible assets (excluding additions to right-of-use assets). |
Free cash flow |
| Cash flow from operating activities adjusted by cash flow from investing activities. Acquisitions and divestments of business are excluded. |
Free cash flow conversion ratio |
| Free cash flow divided by the net profit. |
Liquid funds |
| Liquid funds contain cash and cash equivalents as well as marketable securities and time deposits with a maturity of less than twelve months. |
Net liquidity or net debt |
| Liquid funds (see definition above) minus current and non-current financial debt. Lease liabilities are included in financial debt. |
Dividend payout ratio |
| Dividend per share paid or expected to be paid to shareholders of Rieter Holding Ltd. (based on the resolution of the Annual General Meeting of shareholders or the proposal of the Board of Directors) as a percentage of basic earnings per share of the respective period. |
(Operating) net working capital | Operating net working capital consists of trade receivables, inventories, and advance payments to suppliers, less trade payables and advance payments from customers. Net working capital equals to operating net working capital plus other short-term receivables non-interest-bearing less other short-term payables non-interest-bearing. Assets or liabilities are non-interest-bearing, when no receipt/payment of interest is agreed between Rieter and the counterparty (e.g. current income tax receivables/payables or deferred revenue). | |
Equity ratio |
| Shareholders’ equity as a percentage of total assets. |
Return on net assets (RONA) |
| Net profit before interest expenses and write-offs of financial assets as a percentage of the average of the last 13 month-end balances of total assets less liabilities (excluding financial debt). |
Market capitalization |
| Shares outstanding multiplied by share price at the Swiss Exchange (SIX). |
Price/earnings ratio |
| Share price at the SIX divided by basic earnings per share. |
Dividend yield |
| Dividend per share as a percentage of share price at the SIX. |
Number of employees |
| Total number of employees working for Rieter, excluding temporaries and apprentices. |