Alternative performance measures and definitions
Alternative performance measures are used to describe the development of operations and to enhance comparability between periods. These are not defined under IFRS but correspond to the methods applied by Group management and Board of Directors to measure the company’s financial performance. Alternative performance measures should not be viewed as a substitute for financial information presented in accordance with IFRS but rather as a complement. For more information see www.peab.com/alternative-performance-measures.
Liquid funds and short-term investments along with unutilized credit facilities. Shows the Group´s available liquidity.
Capital employed for the Group
Total assets at the end of the year less non-interest-bearing operating liabilities and provisions. The measurement is used to measure capital utilization and its effectiveness.
Capital employed for the business areas
Total assets in the business area at the end of the year reduced by deferred tax recoverables and internal receivables from the internal bank Peab Finans with deductions for non-interest-bearing liabilities and deferred tax liabilities. The measurement is used to measure capital utilization and its effectiveness for the business areas, and is only presented as a net amount per business area.
Cash flow per share
Cash flow per share calculated as the total of the cash flow from current operations and cash flow from investment activities divided by the average number of outstanding shares during the year.
Direct return, shares
Dividend as a percentage of the share price at year-end. Measures the direct return of the proposed dividend i relation to the price at year-end.
Earnings per share
Profit for the period attributable to shareholders in parent company divided by the average number of outstanding shares during the period.
Equity as a percentage of total assets at the end of the year. Shows financial position.
Equity per share
Equity attributable to shareholders in parent company divided by the number of outstanding shares at the end of the period.
Interest coverage ratio
Pre-tax profit items plus interest expenses in relation to interest expenses. The measurement shows how the interest costs can be covered.
Interest-bearing liabilities including provisions for pensions less liquid funds and interest-bearing assets.
Net debt/equity ratio
Interest-bearing net debt in relation to equity. Shows financial position.
The change in the period of the reported value of current assets (CB-OB) plus depreciation and write-downs.
The value at the end of the period of the remaining income in ongoing production plus orders received yet to be produced.
Operating profit as a percentage of net sales.
Operative net sales and operative operating profit
Operative net sales and operative operating profit are reported according to percentage of completion method corresponding segment reporting. For more information see Board of Directors’ Report on page 28.
The sum of orders received during the period. Measures how new orders replace produced work.
Share price at year-end divided by earnings per share.
Return on capital employed
The pre-tax profit of the rolling 12 months period with the addition of financial expenses in percent of the average (last four quarters) capital employed. The measurement is used to measure capital efficiency and to allocate capital for new investments.
Return on equity
The profit of the rolling 12 months period attributable to shareholders of shares in the parent company divided by the average (last four quarters) equity attributable to shareholders of shares in the parent company. The measurement is used to create efficient business and a rational capital structure.
The amount stated in the contract for contract work excluding VAT.
Estimated amount of construction possible on a piece of land. A development right is the maximum level of construction allowed on a property according to a zoning plan. The scope of the future zoning plan is estimated for up and coming zoning plans. In order to have the right of disposition over a development right ownership of, or the option to own, the land is required. Development rights for commercial property are measured in square meters.
Contract to be carried out for a fixed price without the contractor being able to alter it, unless the client makes changes to the contract or makes supplementary orders.
Contract work where the contractor carries out construction and appoints and is responsible for subcontractors on the basis of documentation provided by the client.
A type of structured collaboration in the construction industry in which the developer, consultants, contractors and other key players work together to achieve a construction goal. The collaboration is founded on trust where each person’s professional skills supplement the others’ throughout the construction process. The basic idea is that the developer gathers together all the expertise needed to realize the project early on. We avoid different players only being involved in the process for a limited time. In partnering/collaboration we take advantage of everyone’s know-how all the time as we work together from start to finish.
Project and development property
Holdings of undeveloped land and decontamination property for future development, real estate with buildings for project development or improvement and thereafter sales within Peab’s normal business cycle.
Finding project or development properties and developing these into complete projects.
Contract work where the contractor, in addition to building, is also responsible for planning the project.