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Glossary

Adjusted
Adjusted earnings per share
Adjusted EBITDA
Adjusted net financing results 
Adjusted net profit
Adjusted operating profit 
Adjusted operating profit margin
Adjusted profit before tax
Allocated tax
Basic earnings per share
Benchmark tax rate​
Capital expenditure (CAPEX)
Cash flow: cash conversion ratio
Cash flow: adjusted free cash flow​
Cash flow: adjusted operating cash flow
Constant currencies
Continuing operations
Diluted adjusted earnings per share
Diluted earnings per share
EBITA
EBITDA 
Guarantee equity
Invested capital
Net debt​
Net-debt-to-EBITDA ratio
Net gearing
Net interest coverage
Non-benchmark items
NOPAT
Operating accounts receivable
Operating current liabilities
Organic revenue growth
Tax on adjusted profit​
Working capital
Working capital: non-operating working capital
Working capital: operating working capital

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Adjusted
'Adjusted' refers to figures from continuing operations, adjusted for non-benchmark items and, where applicable, amortization and impairment of goodwill and publishing rights. 'Adjusted' figures are non-IFRS compliant financial figures, but are internally regarded as key performance indicators to measure the underlying performance of the business.     

Adjusted earnings per share
Adjusted net profit divided by the weighted average number of ordinary shares outstanding.

Adjusted EBITDA
EBITDA adjusted for non-benchmark items in operating profit.

Adjusted net financing results
Total financing results adjusted for non-benchmark items in total financing results.

Adjusted net profit​
Profit for the period from continuing operations attributable to the owners of the Company, excluding the after-tax effect of non-benchmark items, amortization of publishing rights, and impairments of goodwill and publishing rights.

Adjusted operating profit
Operating profit before amortization and impairment of publishing rights and impairment of goodwill and adjusted for non-benchmark items.

Adjusted operating profit margin
Adjusted operating profit as a percentage of revenues.

Adjusted profit before tax
Sum of adjusted operating profit, adjusted net financing costs, income from investments, and share of profit of equity-accounted investees (net of tax).​​

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Allocated tax
Allocated tax is benchmark tax rate multiplied by adjusted operating profit. ​

Basic earnings per share
The profit or loss attributable to the ordinary shareholders of the Company, divided by the weighted a​verage number of ordinary shares outstanding during the period.

Benchmark tax rate
Tax on adjusted profit, divided by adjusted profit before tax.

Capital expenditure (CAPEX)
Sum of capitalized expenditure on other intangible assets and property, plant, and equipment, less the carrying value of assets disposed of. 

Cash flow: cash conversion ratio
Adjusted operating cash flow, divided by adjusted operating profit.

Cash flow: adjusted free cash flow
Net cash from operating activities less capital expenditure, plus paid acquisition and divestment expenses​, plus appropriation of Springboard provisions (net of tax), plus dividends received. Adjusted free cash flow is the cash flow available for payments of dividend to shareholders, acquisitions, repayments of debt, and repurchasing of shares.

Cash flow: adjusted operating cash flow
Adjusted EBITDA plus or minus autonomous movements in working capital, less capital expenditure.

Constant currencies
Income, expense, and cash flows in local currencies are recalculated to euro, using the average exchange rates of the previous calendar year.

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Continuing operations
The results of the Group, excluding the results of those components that have been presented as discontinued operations. 

Diluted adjusted earnings per share
Minimum of:

  • Adjusted net profit divided by the weighted average number of ordinary shares outstanding (adjusted earnings per share); and
  • Adjusted net profit, including a correction of interest (net of tax) to income of senior convertible bonds on assumed conversion, divided by the diluted weighted average number of ordinary shares outstanding. 

Shares conditionally awarded under LTIP-plans are included in the calculation of the diluted weighted average number of ordinary shares outstanding if the vesting conditions are satisfied at balance sheet date.

Diluted earnings per share
Minimum of:

  • Profit for the year attributable to the owners of the Company divided by the weighted average number of ordinary shares outstanding (basic earnings per share), and
  • Profit for the year attributable to the owners of the Company, including a correction of interest (net of tax) to income of senior convertible bonds on assumed conversion, divided by the diluted weighted average number of ordinary shares outstanding. 

Shares conditionally awarded under LTIP-plans are included in the calculation of the diluted weighted average number of ordinary shares outstanding if the vesting conditions are satisfied at balance sheet date. 

EBITA
EBITA (earnings before interest, tax, and amortization) is calculated as operating profit plus amortization and impairment of publishing rights and impairment of goodwill. 

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EBITDA
Operating profit before amortization and impairment of publishing rights and impairment of goodwill, and before amortization of other intangible assets and depreciation on property, plant, and equipment. 

Guarantee equity
Sum of total equity, subordinated (convertible) bonds and perpetual cumulative bonds.

Invested capital
Capital employed, excluding non-operating working capital and cash and cash equivalents, adjusted for accumulated amortization on publishing rights and goodwill amortized, and goodwill written-off to equity (excluding publishing rights and goodwill impaired and/or fully amortized), less any related deferred tax liabilities.​

Net debt
Sum of (long-term) loans, borrowings and bank overdrafts, and deferred and contingent acquisition payments minus cash and cash equivalents, (non-​current) divestment receivables, collateral deposited, and the net fair value of derivative financial instruments.

Net-debt-to-EBITDA ratio
Net debt divided by EBITDA adjusted for divestment related results on operations.

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Net gearing
Net debt divided by total equity.

Net interest coverage
Adjusted operating profit, divided by adjusted financing costs.​

Non-benchmark items
Non-benchmark items relate to expenses arising from circumstances or transactions that, given their size or nature, are clearly distinct from the ordinary activities of the Group and are excluded from the benchmark figures.
Non-benchmark items in operating profit: results from divestments (including directly attributable divestment costs), additions to provisions for restructuring of stranded costs following divestments, acquisition related costs, additions to acquisition integration provisions, subsequent fair value changes on contingent considerations, and other.

Non-benchmark items in total financing results: financing component employee benefits, impairment of investments available-for-sale, and divestment related results on equity-accounted investees. 

​NOPAT
Net operating profit after allocated tax. Adjusted operating profit less allocated tax, based on the benchmark tax rate.

Operating accounts receivable
Operating accounts receivables consist of trade receivables, prepayments, and other receivables.

Operating current liabilities
Operating current liabilities consist of salaries and holiday allowances, social security premiums and other taxation, pension-related payables, royalties payable, and other liabilities and accruals.

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Organic revenue growth
Calculated as revenue of the period divided by revenue of the period in the previous reporting period, excluding the impact of acquisitions and divestments of operations above a minimum threshold, all translated at constant currencies.

Tax on adjusted profit
Income tax expense adjusted for tax benefit on amortization of publishing rights and impairments, and tax on non-benchmark items.​

Working capital
Current assets less current liabilities.

Working capital: non-operating working capital
Non-operating working capital is the total of receivables/payables of derivative financial instruments, collateral, the short-term part of the restructuring provision, deferred and contingent acquisition payables, interest receivable/payable, income tax receivable/payable, and borrowings and bank overdrafts.​

Working capital: operating working capital
Operating working capital is working capital minus non-operating working capital minus cash and cash equivalents.

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