Alternative performance measures
In addition to those prescribed by IFRS, Implenia uses alternative measures to help it manage its business. The following overview explains the alternative performance measures (APMs) used in this report. The aim is to clarify the reasons for using these measures and to improve transparency and comprehensibility.
Definitions of alternative performance measures
|The order book is defined as services that have been contractually|
agreed but not yet performed, valued by contract amount on the
balance sheet date. Approved contractual changes are also included
in the book. The order book increases when orders are secured,
and decreases by the level of production output during the period.
This measure helps predict the future development of Implenia’s
|The equity ratio is the ratio of equity to total assets on the|
balance sheet date. The reported equity ratio takes account of
the subordinated convertible bond. Our equity ratio reflects Implenia
Group’s financing situation.
Free cash flow
|Free cash flow is defined as cash flow from operating activities|
minus the acquisition and sale of fixed assets (excl. movements in fixed deposits).
The free cash flow figure reflects our ability to generate cash, repay liabilities,
make acquisitions and pay dividends.
|Implenia shows like-for-like figures (currency-adjusted) in order|
to measure changes since the previous reporting period without
the distorting effect of exchange rate fluctuations. The adjustment
is made by recalculating balance sheet items at the closing exchange
rate on the last day of the previous year. Meanwhile, figures for
the consolidated companies’ income, expenditure and cash flows
are recalculated at the average exchange rates for the previous
period converted into CHF. These like-for-like figures allow an
assessment of Implenia’s performance over time without the influence
of exchange rate effects.
Net cash position
|The net cash position corresponds to the difference between cash|
and cash equivalents on the one hand, and interest-bearing short
and long-term financial liabilities on the other. The net cash
position reflects our ability to settle interest-bearing financial
|Operating performance at EBIT level is a measure of Implenia’s|
operating performance excluding the impact of one-off effects,
such as special transactions, restructuring provisions and other
|Performance measures excl. IFRS 16 adjust for the impact of the|
IFRS 16 leasing standard. Performance reports made to the Implenia
Executive Committee and Board of Directors contain figures that
exclude the impact of IFRS 16.
|Production output is calculated as IFRS revenue plus the proportionate|
revenue from joint ventures (JVs) valued using the equity method.
Production output is a purely statistical measure that reflects
the work actually done by the Group for its clients.
Return on invested capital
|This measure is defined as the ratio between EBIT and average capital|
invested, excl. rights of use from leasing, during the period under
review. It is a measure of profitability and capital efficiency.
|Visibility is calculated as the order book for the current year|
divided by planned production output for the next reporting period.
Visibility is an indicator of future assured capacity utilisation.
The following reconciliation shows the derivation of the alternative performance measures “production output”, “EBIT” and “operating performance at EBIT level”:
Proportional revenue and services invoiced to JVs
Other expenses from leases
EBIT excl. IFRS 16
Disposals (share / asset deals)
Underlying performance at EBIT level
1 Production output in unconsolidated amount, disclosed as consolidated value in the previous year
The following reconciliation shows the derivation of the alternative performance measure “net cash position”:
Cash and cash equivalents and fixed short-term deposits
Net cash position
Net cash position excl. lease liabilities
Implenia defines free cash flow as cash flow from operating activities minus the acquisition and sale of fixed assets. The following table gives an overview of free cash flow:
Cash flow from operating activities
Investments in non-current assets
Disposal of non-current assets
Acquisition of subsidiaries
Sale of subsidiaries
Free cash flow
Impact of IFRS 16 Leases
Free cash flow excl. IFRS 16