AAK Annual Report 2020

AAK Annual Report 2020 129 Alternative performance measures (APM) and other financial definitions AAK presents Alternative performance measures that are not defined in the financial reporting framework IFRS. Alternative performance measures are used as guidance to the Group’s management and external stakeholders in their analysis of the Group’s operations and are considered as a supplement to the financial statements prepared in accordance with IFRS. AAK uses the following Alternative performance measures: Organic volume growth, EBITDA, Return on Capital Employed (ROCE), Net working capital, Net debt, Net debt/EBITDA and Equity/asset ratio. See pages 111–113 for calculations. See definitions of the Alternative per- formance measures and other performance measures below. Cash and cash equivalents Cash and bank balances and short-term investments with a maturity of less than three months. Capital employed Total assets less cash and cash equivalents, other interest-bearing receivables, non-interest-bearing operating liabilities, but excluding deferred tax. Direct yield Dividend per share in relation to the share price at the reporting date. Expressed in percent. Dividend pay-out ratio Dividend in relation to the net profit for the year. Expressed in percent. Earnings per share Net profit for the year attributable to the Parent company shareholders divided by the average number of shares on the reporting date. EBITDA Earnings before interest, tax, depreciation and amorti- zation. Equity/assets ratio Equity including non-controlling interests in relation to total assets. Expressed in percent. Equity per share Equity excluding non-controlling interests divided by the average number of shares on the reporting date. Net debt Interest-bearing liabilities (incl. pension liabilities, excl. financial leases) less Cash and cash equivalents and other current interest-bearing receivables. Net debt/EBITDA Net debt in relation to EBITDA calculated on a rolling 12 months basis. Expressed as a multiple of EBITDA. Net working capital Non-interest-bearing current assets less non-interest-bearing current liabilities. Organic volume growth Total volume growth excluding effects of acquisitions/ disposals. Expressed in percent. Return on Capital employed (ROCE) Operating profit in relation to average capital employed, calculated on a rolling 12 months basis. Expressed in percent. Share price/equity Share price in relation to equity per share.