Alternative Performance Measures (APMs)
The financial statements issued by the Fagerhult Group contain Alternative Performance Measures (APMs). These APMs are disclosed to compliment measures that are defined or specified in the applicable financial reporting framework.
APMs are disclosed to provide the reader with a clearer understanding of those performance measures that are not defined or specified in the applicable financial reporting framework. The basis for disclosing APMs is that they are used by management and the readers of the financial statements to evaluate the financial performance and provide analysts and other stakeholders with valuable information.
Alternative Performance Measures and justification for their use:
Net sales adjusted for currency effects and acquired companies
Since the Fagerhult Group generates the majority of sales in currencies other than in the reporting currency, the Swedish Kronor (SEK), and due to the acquisitive nature of the Fagerhult Group where the financial effects of acquisitions is within the financial reporting period, hence distorting any period to period performance measures, the Group analyses its sales trends and performance as changes in organic sales growth.
Due to the requirement to optimize cash generation to create value for shareholders and for continued investments, management focuses on capital employed.
Net debt and Net debt/EBITDA ratio
Creditors, credit rating agencies and other interested parties use net debt and associated ratios in their analysis of the Fagerhult Group and therefore we provide this APM.