Alternative Performance Measures

The Rieter Annual Report includes performance measures defined in accordance with the International Financial Reporting Standards (IFRS) as well as selective alternative performance measures. Alternative performance measures provide important information for readers of the Annual Report about Rieter’s performance and financial position. They are used as an essential element of the financial management of the Group.

The following table includes the definitions of alternative performance measures as used by Rieter:

Order intake

Reference in the annual report

  • Rieter at a glance
  • Letter to the shareholders
  • Business Groups

Rieter definition

Order intake includes firm orders received from third party customers for Rieter products and
services in the reporting period. Orders are reported as order intake if the following criteria
have been met:

  • Receipt of a written, legally binding confirmation from the customer;
  • Production capacity is available in case manufacturing is required;
  • The order is financially secured.

Orders are financially secured by means of advance payment, irrevocable letter of credit, bank
guarantee, credit insurance or other instruments. In addition, customer credit limits are used,
mainly in the After Sales and Components businesses.

Order intake comprises the total gross order value excluding value added taxes. Additions to existing orders and cancellations are also included in order intake.

Order backlog

Reference in the annual report

  • Letter to the shareholders

Rieter definition

The order backlog is defined as the total undiscounted value of open customer orders at the end
of the reporting period. The order backlog is expected to turn into sales in the future.

Operating result before interest and taxes (EBIT)

Reference in the annual report

  • Rieter at a glance
  • Letter to the shareholders
  • Business Groups
  • Remuneration report
  • Consolidated income statement
  • Note 3.1
  • Review 2017 to 2021

Rieter definition

Operating result before the share in profit of associated companies, financial income and expenses, and income taxes.

Operating result before interest, taxes and amortization (EBITA)

Reference in the semi-annual report

  • Key figures
  • Note 6

Rieter definition

Operating result before interest and taxes (EBIT) excluding amortization of intangible assets.

Operating result before interest, taxes, depreciation and amortization (EBITDA)

Reference in the annual report

  • Rieter at a glance
  • Note 3.5
  • Review 2017 to 2021

Rieter definition

Operating result before interest and taxes (EBIT) excluding depreciation of property, plant and equipment and amortization of intangible assets.

EBIT before restructuring charges

Reference in the annual report

  • Rieter at a glance
  • Note 2.3
  • Note 3.1
  • Review 2017 to 2021

Rieter definition

Operating result before interest and taxes (EBIT) excluding restructuring charges. These charges include restructuring costs (e.g. personnel expenses and other costs directly associated with restructuring measures) and impairment losses on property, plant and equipment. In addition, reversals of existing restructuring provisions are also included.

Capital expenditure

Reference in the annual report

  • Rieter at a glance

Rieter definition

Purchase of property, plant and equipment and intangible assets (excluding additions to right-of-use assets).

Free cash flow

Reference in the annual report

  • Letter to the shareholders
  • Note 5.1
  • Review 2017 to 2021

Rieter definition

Cash flow from operating activities adjusted by cash flow from investing activities. Acquisitions and divestments of business are excluded.

Free cash flow conversion ratio

Reference in the annual report

  • Remuneration report

Rieter definition

Free cash flow divided by the net profit.

Liquid funds

Reference in the annual report

  • Note 8.6 (Liquidity risk)

Rieter definition

Liquid funds contain cash and cash equivalents as well as marketable securities and time deposits with a maturity of less than twelve months.

Net liquidity or net debt

Reference in the annual report

  • Rieter at a glance
  • Letter to the shareholders
  • Note 5.1
  • Review 2017 to 2021

Rieter definition

Liquid funds (see definition above) minus current and non-current financial debt. Lease liabilities are included in financial debt.

Dividend payout ratio

Reference in the annual report

  • Note 5.4
  • Review 2017 to 2021

Rieter definition

Dividend per share paid or expected to be paid to shareholders of Rieter Holding Ltd. (based on the resolution of the Annual General Meeting of shareholders or the motion of the Board of Directors) as a percentage of basic earnings per share of the respective period.

(Operating) net working capital

Rieter definition

Operating net working capital consists of trade receivables, inventories and advance payments to suppliers, less trade payables and advance payments from customers.

Net working capital equals to operating net working capital plus other short-term receivables non-interest-bearing less other short-term payables non-interest-bearing. Assets or liabilities are non-interest-bearing, when no receipt/payment of interest is agreed between Rieter and the counterparty (e.g. current income tax receivables/payables or deferred revenue).

Equity ratio

Reference in the annual report

  • Letter to the shareholders
  • Note 8.6 (Capital management)
  • Review 2017 to 2021

Rieter definition

Shareholders’ equity as a percentage of total assets.

Return on net operating assets (RONOA)

Reference in the annual report

  • Remuneration report

Rieter definition

Operating result before interest and taxes (EBIT) as a percentage of the average of the last twelve month-end balances of net operating assets. Net operating assets contain operating net working capital, property, plant and equipment, intangible assets and goodwill.

Return on net assets (RONA)

Reference in the annual report

  • Review 2017 to 2021

Rieter definition

Net profit before interest expenses and write-offs of financial assets as a percentage of the average of the last twelve month-end balances of total assets less liabilities (excluding financial debt).

Market capitalization

Reference in the annual report

  • Corporate Governance (2 Capital structure)
  • Review 2017 to 2021

Rieter definition

Shares outstanding multiplied by share price at the Swiss Exchange (SIX).

Price/earnings ratio

Reference in the annual report

  • Review 2017 to 2021

Rieter definition

Share price at the SIX divided by basic earnings per share.

Dividend yield

Reference in the annual report

  • Review 2017 to 2021

Rieter definition

Dividend per share as a percentage of share price at the SIX.

XS
SM
MD
LG
XLG