Alternative Performance Measures, Definitions and Key Ratios

RECONCILIATION OF NON-IFRS MEASURES TO IFRS
(ALTERNATIVE PERFORMANCE MEASURES)

Dometic presents some financial measures in this interim report, which are not defined by IFRS. The company believes that these measures provide valuable additional information to investors and management for evaluating the company’s financial performance, financial position and trends in our operations. It should be noted that these measures, as defined, may not be comparable to similarly titled measures used by other companies. These non-IFRS measures should not be considered as substitutes for financial reporting measures prepared in accordance with IFRS. See Dometic’s website dometic.com for the detailed reconciliation.

Core working capital
Consists of inventories and trade receivables less trade payables.

EBITDA
Operating profit (EBIT) before Depreciation and Amortization.

EBITDA margin
EBITDA divided by net sales.

Leverage
Net debt excluding pensions and accrued interest in relation to EBITDA.

Net debt
Total borrowings including pensions and accrued interest less cash and cash equivalents.

Operating cash flow
EBITDA +/- change in working capital excluding paid tax, after capital expenditure.

Organic growth
Sales growth excluding acquisitions/divestments and currency translation effects. Quarters calculated at comparable currency, applying latest period average rate.

RoOC – Return on Operating Capital
Operating profit (EBIT) divided by operating capital. Based on the operating profit (EBIT) for the four previous quarters, divided by the average operating capital for the previous four quarters, excluding goodwill and trademarks for the previous quarter.

 

DEFINITIONS AND KEY RATIOS

AM
Aftermarket.

Capital expenditure
Expenses related to the purchase of tangible and intangible assets.

CPV
Commercial and Passenger Vehicles.

EPS – Earnings per share
Net profit for the period divided by average number of shares.

FY 2017
Financial Year ended December 31, 2017.

i.a.c. – items affecting comparability
Items affecting comparability are events or transactions with significant financial effects, which are relevant for understanding the financial performance when comparing profit for the current period with previous periods. Items included are for example restructuring programs, expenses related to major revaluations, gains and losses from acquisitions or disposals of subsidiaries.

Interest-bearing debt
Liabilities to credit institutions plus liabilities to related parties plus provisions for pensions.

Net profit
Profit (loss) for the period

OCI
Other comprehensive income.

OEM
Original Equipment Manufacturers.

Operating capital excluding goodwill and trademarks
Interest-bearing debt plus equity less cash and cash equivalents, excluding goodwill and trademarks.

Operating profit (EBIT)
Earnings before financial items and taxes.

Operating profit (EBIT) margin
Operating profit (EBIT) divided by net sales.

RV
Recreational Vehicles.

Q2 2018
April to June 2018 for Income Statement.

Q2 2017
April to June 2017 for Income Statement.

Working capital
Core working capital plus other current assets less other current liabilities and provisions relating to operations.