Annual Report 2008 - Securitas

76 Annual report
Notes and comments to the consolidated financial statements
Note 3. Definitions, calculation of
key ratios and exchange rates
DEFINITIONS
Statement of income according to Securitas’ financial model
Production expenses 1
Guard wages and related costs, the cost of equipment used by the guard
when performing professional duties, and all other costs directly related to
the performance of services invoiced.
Selling and administrative expenses 1
All costs of selling, administration and management including branch office
expenses. The primary function of the branch offices is to provide the production
with administrative support as well as to serve as a sales channel.
Gross margin
Gross income as a percentage of total sales.
Operating income before amortization
Operating income before amortization of acquisition related intangible
assets, acquisition related restructuring costs and items affecting comparability,
but including amortization and depreciation of other intangible
assets, buildings and land and machinery and equipment.
Operating margin
Operating income before amortization as a percentage of total sales.
Operating income after amortization
Operating income after amortization of acquisition related intangible assets,
acquisition related restructuring costs, items affecting comparability and
including amortization and depreciation of other intangible assets, buildings
and land and machinery and equipment.
Adjusted income
Operating income before amortization, adjusted for financial income and
expense (excluding revaluation of financial instruments according to IAS 39)
and current taxes.
Net margin
Income before taxes as a percentage of total sales.
Statement of cash flow according to
Securitas’ financial model
Cash flow from operating activities
Operating income before amortization adjusted for depreciation/amortization
less capital expenditures in non-current tangible and intangible assets
(excluding acquisitions of subsidiaries), change in accounts receivable and
changes in other operating capital employed.
Free cash flow
Cash flow from operating activities adjusted for financial income and
expenses paid and current taxes paid.
Cash flow for the year 1
Free cash flow adjusted for acquisitions of subsidiaries, restructuring costs
paid, cash flow from items affecting comparability, dividends, share issues
and change in interest-bearing net debt excluding liquid funds.
1 The definition is also valid for the formal primary statements – statement of income and the statement
of cash flow.
2 All calculations are made for continuing operations, with the exception of Earnings per share, all
operations, and return on equity.
3 The convertible debenture loans matured in 2007 and no conversion took place. consequently there
is no difference between Earnings per share before and after dilution.
Securitas Annual report 2008
Balance sheet according to Securitas’ financial model
Operating capital employed
capital employed less goodwill, acquisition related intangible assets and
shares in associated companies.
Capital employed
Non interest-bearing non-current and current assets less non interest-
bearing long-term and current liabilities.
Net debt
Interest-bearing non-current and current assets less long-term and shortterm
convertible debenture loans, and long-term and short-term interestbearing
loan liabilities.
Adjusted shareholders’ equity
Equity adjusted for outstanding convertible debenture loans.
CALCULATION OF KEY RATIOS 2
Organic sales growth, actual 2008: 6%
Total sales for the year adjusted for acquisitions and changes in exchange
rates as a percentage of the previous year’s total sales adjusted for divestitures.
Calculation 2008: (56,571.6–1,323.7–863.4)/(51,536.1)–1 = 6%
Operating margin, actual 2008: 5.8%
Operating income before amortization as a percentage of total sales.
Calculation 2008: 3,270.7/56,571.6 = 5.8%
Earnings per share before dilution 3 , all operations,
actual 2008: SEK 6.36
Net income for the year less the net income attributable to the minority,
in relation to the average number of shares before dilution.
Calculation 2008: ((2,321.7+1.9)/365,058,897) x 1,000,000 = SEK 6.36
Earnings per share before dilution 3 , continuing operations,
actual 2008: SEK 5.18
Net income for the year less the net income attributable to the minority, in
relation to the average number of shares before dilution.
Calculation 2008: ((1,889.9+1.9)/365,058,897) x 1,000,000 = SEK 5.18
Earnings per share before dilution 3 and before items affecting
comparability, continuing operations, actual 2008: SEK 5.24
Net income for the year before items affecting comparability (after tax) less
the net income attributable to the minority in relation to the average number
of shares before dilution.
Calculation 2008: ((1,889.9+29.3–8.2+1.9)/ 365,058,897) x 1,000,000 =
SEK 5.24
Cash flow from operating activities as % of operating
income before amortization, actual 2008: 99%
Cash flow from operating activities as a percentage of operating income
before amortization.
Calculation 2008: 3,248.7/3,270.7 = 99%
Free cash flow as % of adjusted income, actual 2008: 94%
Free cash flow as a percentage of adjusted income.
Calculation 2008: 2,011.8/(3,270.7–472.3–651.8) = 94%