Definitions

Total operating revenue growth

Change in total operating revenue as a percentage of total operating revenue during the comparison period, i.e., the previous year or quarter.

Change in total operating revenue reflects the Company’s realised operating revenue growth over time.

Organic growth in total operating revenue

Change in total operating revenue in comparable units after adjustment for acquisition effects, as a percentage of total operating revenue during the comparison period.

Organic total operating revenue growth excludes the effects of changes in the Company structure, which enables a comparison of operating revenue over time.

Acquired growth in total operating revenue

Change in total operating revenue as the percentage change from the comparison period of total operating revenue during the comparison period, driven by acquisitions. Acquired total operating revenue is defined as total operating revenue during the period attributable to companies which have been acquired during the most recent 12-month period and for these companies only operating revenue until 12 months after acquisition closing date.

Acquired growth – Total operating revenue growth reflects the acquired units’ effects on total operating revenue.

EBITDA

Earnings before interest, taxes, depreciation and amortization.

EBITDA provides an overall picture of profit generated from the operating activities and is a supplement to the operating profit (EBIT).

EBITDA margin

EBITDA as a percentage of total operating revenue.

EBITDA margin is used to measure operating profitability and indicates the Company’s operating earnings capacity.

EBITA

Earnings before interest, taxes and amortization.

EBITA provides an overall view of profit generated by operating activities and is a supplement to the operating profit.

EBITA margin

EBITA in relation to total operating revenue.

EBITA margin is used to measure operating profitability and indicates the Company’s operating earnings capacity.

EBIT margin

Earnings before interest and taxes (EBIT) in relation to total operating revenue.

Operating margin enables comparisons of the Company’s profitability regardless of capital structure or tax situation.

Non-recurring items

Items affecting comparability such as acquisition costs, integration costs and listing costs.

Enables comparison of profitability measures without items affecting comparability.

Adjusted EBITDA

EBITDA adjusted for non-recurring items.

Enables comparison of EBITDA without items affecting comparability with other periods. Adjusted EBITDA is a measure that the Company regards as relevant for investors who wish to understand income generation before investments in noncurrent assets and items affecting comparability.

Adjusted EBITDA margin

Adjusted EBITDA as a percentage of total operating revenue.

Adjusted EBITDA margin excludes the effect from items affecting comparability, which enables a comparison of the underlying operating profitability over time.

Adjusted EBITA

EBITA adjusted for non-recurring items.

Enables comparison of EBITA without items affecting comparability with other periods. Adjusted EBITA is a measure that the Company regards as relevant for investors who wish to understand income generation before investments in noncurrent assets and items affecting comparability.

Adjusted EBITA margin

Adjusted EBITA as a percentage of total operating revenue.

Adjusted EBITA margin excludes the effect from items affecting comparability, which enables a comparison of the underlying operating profitability over time.

Adjusted EBIT

Earnings before interest and taxes (EBIT) adjusted for non-recurring items.

Adjusted EBIT (operating profit) excludes the effect from items affecting comparability, which provides an over picture of profit generated from the operating activities.

Adjusted EBIT margin

Adjusted operating profit as a percentage of total operating revenue.

Adjusted EBIT (operating margin) excludes the effect from items affecting comparability, which enables a comparison of the underlying business over time.

Net debt

Total interest bearing liabilities less cash and cash equivalents. Total interest bearing liabilities consists of non-current and current loans, non-current and current leasing liabilities according to IFRS 16, and loans from shareholders.

Net debt is used to monitor the interest-bearing liabilities development and monitor the level of the refinancing requirement. The measure is also used as the numerator in the Net debt ratio used to monitor financial leverage.

Net debt/

LTM adjusted EBITDA

Net debt in relation to twelve-month adjusted EBITDA. Pro forma EBITDA includes all operations within the Group for the full last twelve month period.

The Company uses the Net debt ratio to monitor the level of financial leverage.

Net working capital

Inventory, accounts receivable and other current receivables less trade payables and other current liabilities.

The measure shows how much net working capital is allocated in the operations and is useful to indicate how effectively net working capital is used.

Net working capital/ operating revenue

Net working capital in relation to the pro forma rolling twelve-month operating revenue.

Net working capital ratio enables the Company to measure its net working capital over time.

Financial leasing capital expenditures

Establishment of IFRS 16 right-of-use assets in conjunction with entering into new leasing agreements in the reporting period.

Financial leasing capital expenditures is used by the Group to measure the accounting effect of establishing lease liabilities and right-of-use assets from entering into new lease agreements as leasing is the Group’s main financing model for the vehicle fleet.

Net cash inflow from operating activities

From the Cash flow statement.

Operating cash flow is used to monitor cash flows gene- rated by operating activities. The measure is also used as the numerator in the calculation of cash conversion.

Cash conversion

Net cash inflow from operating activities in relation to adjusted EBITDA.

Cash conversion enables the Company to monitor how efficiently the Company manages operating investments and working capital as well as the operating activity’s ability to generate cash flows.

Capital employed

Total assets less current liabilities.

Capital employed is a measure which the Company uses for calculating the return on capital employed and for measuring how efficient the Company is without taking goodwill generated in connection with acquisition into account.

Return on capital employed

EBIT in relation to Capital employed.