Alternative Performance Measures

Alternative Performance Measures

Arbonia uses alternative performance measures (APM) as guidance measures for both internal reporting to management and external reporting to stakeholders. The APM used by Arbonia have not been prepared in accordance with IFRS accounting policies and are discussed in detail below. The APM serve as supplementary information components and should therefore always be read and interpreted in conjunction with the consolidated financial statements prepared in accordance with IFRS. The APM used by Arbonia do not necessarily agree with the same or similar titled measures of other or comparable companies.

EBITDA without one-time effects/adjusted

The elimination of one-time effects provides an adjusted and thus better comparable presentation of the operating result over time. Discontinued operations as defined by IFRS 5 are not included. The following one-time effects are eliminated by Arbonia:

Costs resulting from creation of provisions or income resulting from reversal of provisions for restructurings and reorganisation as well as closure costs
Ramp-up costs for new production sites
Consultancy and integration costs from acquisitions
Consultancy costs from disposal of subsidiaries
Gains and losses from sale of properties and associated companies
Real estate development costs
Costs in connection with personnel changes / leave of absence in Group and Division management

EBITA without one-time effects/adjusted

Impairments
Reversal of impairments

EBIT without one-time effects/adjusted

Impairments on intangible assets from acquisitions

Group result before income tax without one-time effects/adjusted

Costs for debt refinancing
Impairments and reversal of impairments on loans granted

55 565

Group result after taxes without one-time effects/adjusted

Tax effect on one-time effects
Tax consequences from disposal of subsidiaries

Reconciliation Group and Divisions from IFRS-result to result without one-time effects / Adjusted

in 1 000 CHF		2020
		IFRS	%	Gain from sale of properties	Costs for restructurings and reorganisation	Tax effects on one-time effects	without one-time effects/ adjusted	%
HVAC	EBITDA	59 182	11.2		426		59 608	11.3
	EBITA	33 253	6.3				33 679	6.4
	EBIT	29 607	5.6				30 033	5.7
Sanitary Equipment	EBITDA	16 992	11.7				16 992	11.7
	EBITA	12 820	8.8				12 820	8.8
	EBIT	11 023	7.6				11 023	7.6
Doors	EBITDA	49 149	13.5				49 149	13.5
	EBITA	33 588	9.2				33 588	9.2
	EBIT	24 115	6.6				24 115	6.6
Corporate Services	EBITDA	– 9 031		– 2 248			– 11 279
	EBITA	– 10 874					– 13 122
	EBIT	– 10 874					– 13 122
Group	Net revenues	1 038 421	100.0				1 038 421	100.0
	Other operating income	14 807	1.4	– 2 098			12 709	1.2
	Capitalised own services	6 369	0.6				6 369	0.6
	Changes in inventories of semi-finished and finished goods	3 333	0.3				3 333	0.3
	Cost of material and goods	– 454 017	– 43.7				– 454 017	– 43.7
	Personnel expenses	– 345 604	– 33.3		353		– 345 251	– 33.2
	Other operating expenses	– 147 017	– 14.2	– 150	72		– 147 095	– 14.2
	EBITDA	116 292	11.2				114 470	11.0
	Depreciation, amortisation and impairments	– 47 505	– 4.6				– 47 505	– 4.6
	EBITA	68 787	6.6				66 965	6.4
	Amortisation of intangible assets from acquisitions	– 14 915	– 1.4				– 14 915	– 1.4
	EBIT	53 872	5.2				52 050	5.0
	Financial income	469	0.0				469	0.0
	Financial expenses	– 13 401	– 1.3				– 13 401	– 1.3
	Group result before income tax	40 940	3.9				39 118	3.8
	Income tax expense	– 11 210	– 1.1			213	– 10 997	– 1.1
	Group result from continuing operations	29 730	2.9				28 121	2.7

Presentation of the respective one-time effects on the immediate result line without disclosure of the impact on the subsequent line items.

Reconciliation Group and Divisions from IFRS-result to result without one-time effects / Adjusted

in 1 000 CHF		2019
		IFRS	%	Gain from sale of properties	Costs for restructurings and reorganisation	Ramp-up costs for new production sites	Consultancy and integration costs from acquisitions	Impairments on machinery and right-of-use assets	Various	Tax effects on one-time effects	without one-time effects/ adjusted	%
HVAC	EBITDA	51 565	9.3		4 658	2 359	428				59 010	10.6
	EBITA	26 514	4.8					1 973			35 932	6.5
	EBIT	22 720	4.1								32 138	5.8
Sanitary Equipment	EBITDA	14 669	10.2		471						15 140	10.5
	EBITA	10 823	7.5								11 294	7.9
	EBIT	9 025	6.3								9 496	6.6
Doors	EBITDA	43 954	12.2								43 954	12.2
	EBITA	29 377	8.2					100			29 477	8.2
	EBIT	19 476	5.4								19 576	5.4
Corporate Services	EBITDA	– 9 490		– 1 070					156		– 10 404
	EBITA	– 11 149									– 12 063
	EBIT	– 11 149									– 12 063
Group	Net revenues	1 057 832	100.0								1 057 832	100.0
	Other operating income	17 062	1.6	– 1 070							15 992	1.5
	Capitalised own services	7 422	0.7			– 560					6 862	0.6
	Changes in inventories of semi-finished and finished goods	2 248	0.2			– 199					2 049	0.2
	Cost of material and goods	– 475 227	– 44.9		35	1 300					– 473 892	– 44.8
	Personnel expenses	– 351 978	– 33.3		4 531	1 096	322				– 346 029	– 32.7
	Other operating expenses	– 156 661	– 14.8		563	722	106		156		– 155 114	– 14.7
	EBITDA	100 698	9.5								107 700	10.2
	Depreciation, amortisation and impairments	– 45 133	– 4.3					2 073			– 43 060	– 4.1
	EBITA	55 565	5.3								64 640	6.1
	Amortisation of intangible assets from acquisitions	– 15 494	– 1.5								– 15 494	– 1.5
	EBIT	40 071	3.8								49 146	4.6
	Financial income	1 164	0.1								1 164	0.1
	Financial expenses	– 7 136	– 0.7								– 7 136	– 0.7
	Group result before income tax	34 099	3.2								43 174	4.1
	Income tax expense	– 11 561	– 1.1							– 1 519	– 13 080	– 1.2
	Group result from continuing operations	22 538	2.1								30 094	2.8

Presentation of the respective one-time effects on the immediate result line without disclosure of the impact on the subsequent line items.

Acquisition and currency adjusted growth (organic growth)

Acquisition and currency adjusted growth excludes effects from acquisitions and disposals of companies and currency effects.

In the acquisition adjusted growth, revenues of the acquired companies are eliminated in the year of acquisition. For companies acquired in the previous year, revenues of the current year are included for the same period as in the previous year. Discontinued operations within the meaning of IFRS 5 are eliminated.

In the currency adjusted growth, revenues of the current year in the functional currency of the respective company are translated at the average exchange rates of the same previous year period.

Net debt

Current and non-current financial debts plus current and non-current lease liabilities (including IFRS 16 "Leases") minus cash and cash equivalents

Adjusted net debt

Current and non-current financial debts plus current and non-current lease liabilities (excluding IFRS 16 "Leases" but including existing finance lease contracts under IAS 17 "Leases") minus cash and cash equivalents

Leverage ratio

Net debt divided by EBITDA

Adjusted leverage ratio

Adjusted net debt divided by EBITDA (excluding EBITDA-impact of IFRS 16 "Leases" but including EBITDA-impact of existing finance lease contracts under IAS 17 "Leases")

Free cash flow

Cash flow from operating and investing activities

Operational free cash flow

Cash flow from operating and investing activities without expansion capital expenditures

Capital expenditures

Maintenance and expansion capital expenditures

Accesskeys

Alternative Performance Measures

EBITDA without one-time effects/adjusted

EBITA without one-time effects/adjusted

EBIT without one-time effects/adjusted

Group result before income tax without one-time effects/adjusted

Group result after taxes without one-time effects/adjusted

Reconciliation Group and Divisions from IFRS-result to result without one-time effects / Adjusted

Reconciliation Group and Divisions from IFRS-result to result without one-time effects / Adjusted

Acquisition and currency adjusted growth (organic growth)

Net debt

Adjusted net debt

Leverage ratio

Adjusted leverage ratio

Free cash flow

Operational free cash flow

Capital expenditures