In addition to the ones prescribed by IFRS, Implenia uses other measures to manage its business. The following overview explains the alternative performance measures (APM)used in this report. The aim is to clarify the reasons for using these measures and to improve transparency and comprehensibility.
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 excl. PPA
Income figures excluding PPA show the income situation if depreciation and amortisation from redetermining the fair value of acquisitions is excluded.
Free cash flow
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.
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 income, expenditure and cash flows at consolidated companies 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.
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
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 (unconsolidated)
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.
Return on invested capital (ROIC)
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.
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”, “EBITDA” and “operating income excluding PPA”: