Alternative performance measures

The order backlog 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 backlog.
The order backlog increases when orders are secured, and decreases by the
level of production output during the period. This measure helps predict
the development of Implenia’s construction activity.

The equity ratio is the ratio of equity to total assets on the balance sheet
date. In addition, the equity ratio takes account of the subordinated
convertible bond. Our equity ratio shows the Implenia Group’s financing
situation.

Income figures excluding PPA show the income situation if depreciation and
amortisation from redetermining the fair value of acquisitions is excluded.

Free cash flow is defined as cash flow from operating activities minus the
acquisition and sale of fixed assets. The free cash flow figure reflects our
ability to generate cash, repay liabilities, make acquisitions and pay
dividends.

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 liabilities.

Performance measures excl. IFRS 16 adjust for the impact of the IFRS 16
leasing standard. Reporting to the Implenia Executive Committee and Board
of Directors contains figures that exclude the impact of IFRS 16.

Production output is calculated as the IFRS revenue plus the proportionate
revenue from joint ventures valued using the equity method. Production
output is a purely statistical measure that reflects the work actually done
by the Group for its clients.

This measure is defined as the ratio between operating income and
average capital invested, excl. rights of use from leasing, during the period
under review. It is a measure of profitability and capital efficiency.