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. Appro

ved contractual changes are also included in the backlog. The order backlog

increases when orders are secured, and decreases by the level of production out

put 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.

Free cash flow is defined as cash flow from operating activities minus the acquisiti

on 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 chan

ges 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 recalcula

ted at the average exchange rates for the previous period converted into CHF. The

se like-for-like figures allow an assessment of Implenia’s performance over time

without the influence of exchange rate effects.

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 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 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.

The underlying performance at EBITDA level is an EBITDA key figure to measure

the operating performance of Implenia excluding the impacts of one-time effects,

such as special transactions, restructuring provisions or other non-recurring

effects.