Added value
An increase in the value of a product, usually by integrating it with a customer's workflow, tailoring it to the customers needs, making it more easily accessible using software etc.
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Basic earnings per share
Basic earnings per share (eps) is defined as the profit or loss attributable to shareholders of the parent, divided by the weighted average number of shares outstanding during the period.
Basic earnings per share
Profit for the year attributable to equity holders of the parent divided by the weighted average number of shares outstanding during the period.
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Capital employed
Total of non-current assets and working capital.
Cash flow: Cash conversion ratio (CAR)
Cash conversion ratio is defined as cash flow from operations less net expenditure on property, plant and equipment and other intangible assets, divided by Ordinary EBITA.
Cash Flow: Cash flow from operations
Ordinary EBITA before depreciation plus or minus autonomous movements in working capital.
Cash Flow: Cash flow ratio (CAR)
See Cash Conversion ratio.
Cash Flow: Free cash flow (see KPI’s)
Free cash flow is defined as the cash flow from operating activities less net expenditure on property, plant and equipment and other intangible assets, plus dividends received from investments, which equals the cash flow available for payments of dividend to shareholders, acquisitions, down payments of debt and repurchasing of shares.
Constant Currencies
Income and expense in local currencies are recalculated to Euro, using the average exchange rates of the previous calendar year.
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Diluted earnings per share
Diluted earnings per share is defined as the minimum of:
Net income attributable to the equity holders of the parent divided by the weighted average number of shares (Basic earnings per share), and
Net income attributable to the equity holders of the parent plus correction of interest (net of taxes) to income of unsubordinated convertible bonds on assumed conversion, divided by the diluted weighted average number of shares.
Diluted ordinary earnings per share
Diluted ordinary earnings per share is defined as the minimum of:
Ordinary net income divided by the weighted average number of shares (Ordinary earnings per share), and
Ordinary net income plus correction of interest (net of taxes) to income of unsubordinated convertible bonds on assumed conversion, divided by the diluted weighted average number of shares.
Dividend Cover
Dividend cover is defined as the number of times the dividend can be covered by ordinary net income.
The dividend cover is: Ordinary earnings per share divided by Dividend per share.
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Earnings per share growth (%)
Growth in earnings per share in comparison to a previous comparable period.
EBITA
Earnings before interest, tax and amortization of publishing rights and impairments of goodwill and publishing rights.
EBITA is calculated as operating profit before amortization of publishing rights and impairments.
EBITA margin
EBITA margin is defined as EBITA as a percentage of revenues.
EBITDA
Earnings before interest, tax, depreciation, amortization of publishing rights and other intangible assets, and impairments of goodwill and publishing rights.
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Financing Results
Interest received or receivable from third parties minus interest paid or due to third parties, including fair value changes through profit or loss of (derivative) financial instruments and foreign exchange differences on financial instruments.
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Innovation rate
Revenues from new products for the 12 month period as a percentage of total revenues. See also the definition of New product revenues.
Invested Capital
Capital employed adjusted for exceptional items, amortization of publishing rights, and goodwill previously charged to equity.
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KPI
Key Performance Indicator.
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Net income
Result for the year after tax.
Net (interest bearing) debt
Net (interest bearing) debt is defined as the sum of (long-term) loans, unsubordinated convertible bonds, perpetual cumulative subordinated bonds, bank overdrafts minus cash and cash equivalents and the fair value of derivative financial instruments.
Net interest coverage
Calculated as the ratio between operating profit before amortization of intangible assets and exceptional restructuring expense (ordinary EBITA), divided by financing results.
New product revenues
Revenues from new products created in current year. Existing products of which form and/or content has changed substantially are also included as revenues from new products.
NOPAT (Net operating profit after allocated tax)
Calculated as ordinary EBITA less allocated tax, based on the effective tax rate on pre-tax ordinary income.
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Ordinary
The term “ordinary” refers to figures adjusted for exceptional items and, where applicable, amortization of intangible assets. “Ordinary” figures are non-IFRS compliant financial figures, but are internally regarded as key performance indicators to measure the underlying performance of our business.
Ordinary earnings per share
Ordinary net income divided by the weighted average number of shares.
Ordinary EBITA
EBITA before exceptional restructuring expense.
Ordinary EBITA margin
Ordinary EBITA margin is defined as Ordinary EBITA as a percentage of revenues.
Ordinary EBITDA
EBITDA before exceptional restructuring expense.
Ordinary income before tax
Ordinary income before tax is calculated as ordinary EBITA plus financing results, income from investments, and share of profits of associates.
Ordinary net income (=benchmark net profit)
Ordinary net income is defined as net income attributable to the equity holders of the parent, excluding the after tax effect of exceptional restructuring expense, results on disposals, amortization of publishing rights, and impairments of goodwill and publishing rights.
Organic Revenue Growth
Organic revenue growth is defined as revenue of the period divided by revenue of the period in the previous reporting period, excluding the impact of acquisitions and disposals, all translated at the average exchange rate of the previous calendar year (at constant currencies).
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Personnel costs
All labor costs relating to personnel employed (such as gross wages/salaries, bonuses or commissions, gratuities, holiday allowance, movements in the liability for vacation days and fringe benefits), and the costs of temporary staff.
Professionals
Our customers are 'Professionals' meaning experts sucg as accountants, lawyers, fiscal specialists, experts in banking, insurance and securities, HR officers, medical specialists, nurses, scientists, pharmaceutical companies, teachers, students and educational institutions.
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Renewal rate
Value of the subscription portfolio at the start of the year minus losses (attrition) during the year, expressed as a percentage of the starting position.
Return on Invested Capital (ROIC)
Return on invested capital is calculated by dividing NOPAT by average invested capital.
Revenues
Revenues from third parties less applicable value added tax and discounts.
ROIC (Return on Invested Capital)
Ordinary EBITA after allocated tax (NOPAT) divided by average invested capital.
See Invested capital.
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Smart information tools
Information products that add value to professionals through indexing, linking, customization, or software functionality.
Subscription rate
Revenues from subscription-products divided by total revenues.
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Total revenue growth
Growth of revenues over a period with respect to the previous comparable period (includes impact of organic growth, acquisitions and disposals and where applicable currency effects).
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Workflow tools
Products and services that match the daily work of the professionals, providing appropriate information at appropriate points in theie work process.
Working capital
Working capital is defined as current assets less current liabilities.
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