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PRYSMIAN GROUP | DIRECTORS’ REPORT
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ALTERNATIVE PERFORMANCE INDICATORS
In addition to the standard financial reporting formats and indicators required under IFRS, this document
contains a number of reclassified statements and alternative performance indicators. The purpose is to help
users better evaluate the Group's economic and financial performance. However, these statements and
indicators should not be treated as a substitute for the standard ones required by IFRS.
The alternative indicators used for reviewing the income statement include:
Adjusted operating income
: operating income before non-recurring income and expenses and the
fair value change in metal derivatives and in other fair value items, as reported in the consolidated
income statement. The purpose of this indicator is to present the Group's operating profitability
without the effects of events considered to be outside its recurring operations;
EBITDA
: operating income before the fair value change in metal price derivatives and in other fair
value items and before amortisation, depreciation and impairment. The purpose of this indicator is to
present the Group's operating profitability before the main non-monetary items;
Adjusted EBITDA
: EBITDA as defined above calculated before non-recurring income and
expenses, as reported in the consolidated income statement. The purpose of this indicator is to
present the Group's operating profitability before the main non-monetary items, without the effects of
events considered to be outside the Group's recurring operations;
Adjusted EBITDA before share of net profit/(loss) of equity-accounted companies
: Adjusted
EBITDA as defined above calculated before the share of net profit/(loss) of equity-accounted
companies;
Organic growth
: growth in sales calculated net of changes in the scope of consolidation, changes in
metal prices and exchange rate effects.
The alternative indicators used for reviewing the reclassified statement of financial position include:
Net fixed assets:
sum of the following items contained in the statement of financial position:
o
Intangible assets
o
Property, plant and equipment
o
Equity-accounted investments
o
Available-for-sale financial assets, net of non-current securities classified as long-term financial
receivables in the net financial position
Net working capital:
sum of the following items contained in the statement of financial position:
o
Inventories
o
Trade receivables
o
Trade payables
o
Other non-current receivables and payables, net of long-term financial receivables classified in the
net financial position