Within the scope of its periodical and obligatory reporting, in addition to the key figures prepared in accordance with IFRS, adesso also uses additional performance measures that are, or may be, alternative performance measures (APM). Provided that the APM are not governed by the financial reporting standards, they should be seen as an addition to the information prepared by us in accordance with IFRS and not as a replacement. APM are not subject to IFRS or to any other generally accepted accounting principles. The APM used by adesso may be defined differently in other companies under certain circumstances. APM should not be viewed in isolation or as an alternative to the key financial figures determined in accordance with IFRS in the Consolidated Financial Statement for the assessment of net assets, financial position and results of operations. The APM used by adesso are explained below:
EBIT (Earnings Before Interest and Taxes) represents the period results before interest and income taxes are applied. It represents the operating results of a company without the impact of effects arising from internationally inconsistent taxation systems and different financing activities. Depreciations, amortisations as well as impairments and write-ups are included in EBIT.
EBITDA stands for ‘Earnings Before Interest, Taxes, Depreciation and Amortisation’. EBITDA does not factor in interest or the distortionary effects on operating activities arising from different depreciation methods and valuation latitude. adesso defines EBITDA as EBIT plus the amortisation of intangible assets and property, plants and equipment, as well as impairments and write-ups of intangible assets, property, plants and equipment, and goodwill affecting income recorded in the period.
The ratio of EBITDA to sales revenues. The EBITDA margin is used to assess the profitability of a company or individual business areas. It is used to compare the earning power of results-oriented areas of different sizes.
EBT (Earnings Before Taxes) is the period results of the company before income taxes.
(Gross/)net financial liabilities
Net financial liabilities are the portion of the overall financial liabilities not covered by liquid assets and current financial assets. We define net financial liabilities as the total of all interest-bearing liabilities (bank loans, bonds, promissory note loans etc.) less liquid assets and securities of current assets. We consider gross financial liabilities to be the total of all current and non-current financial liabilities.
Net cash position
We define net cash position as the balance of liquid assets at the end of the period less the current and non-current financial liabilities. The net cash position is thus used to measure company debt.
Operating cash flow
The operating cash flow is calculated according to the indirect method based on the period results. For this purpose, the period results are adjusted for non-cash expenses and income as well as for other positions assigned to investment or financing activities. At adesso, the operating cash flow or cash flow from operating activities is defined as the result of all cash transactions from ordinary activities.