Alternative Performance Measures (APMs)

An alternative performance measure (APM) is any financial measure that is not defined in the IFRS reporting framework. Such APMs provide additional insight into the Group’s performance and are used by the Executive Board to assess operational and financial performance. The definitions and calculation methods applied for the APMs are set out below.

Capital employed

Capital employed is a financial measure indicating the average amount of capital a company has utilised during a given period. This capital is used to generate revenue.

Working capital

Working capital is an indicator that shows how the short-term operation is financed.

Return on capital employed (ROCE)

Return on capital employed (ROCE) is a financial ratio used to measure the efficiency with which capital is employed to generate profit. ROCE indicates the return the Group generates on the average amount of capital employed during a given period.

Net cash / (Net debt)

Net cash / (Net debt) is a metric used to assess financial health. Depending on the balance, this represents either net cash or net debt.

Underlying EBITDA

Underlying EBITDA is the operating result before depreciation and amortisation, including EBITDA from joint ventures, excluding any impairment of land positions and/or goodwill, restructuring costs, acquisition costs including retention bonuses, gains or losses on the purchase or sale of entities, and any other specifically identified non-operational results that the Group classifies as exceptional.

Underlying EBITDA margin

The underlying EBITDA margin is calculated as underlying EBITDA divided by revenue.

Operating margin

Operating margin is the ratio used to measure operational efficiency and profitability. It indicates how much profit is generated in relation to revenue, net of operating costs. It can be broken down as follows:

Solvency ratio

Solvency is the financial term that describes the degree to which a company is able to fulfil its financial obligations.