Financial Definitions

Financial Key Figures

Average interest-rate maturity: The remaining interest-rate maturity weighted by interest-bearing liabilities outstanding.

Average shareholders’ equity: Average of recognized shareholders’ equity at January 1, March 31, June 30, September 30 and December 31.

Buyback of company shares (treasury shares) in share data: Treasury shares have been excluded from calculations of key figures based on the number of shares outstanding.

Capital employed: Total assets less interest-free liabilities including deferred tax liabilities. Average capital employed is calculated as the average of the balances at January 1, March 31, June 30, September 30 and December 31.

Capital turnover rate: Net sales divided by average capital employed.

Corporate net debt: Total net debt excluding lease liability and excluding pension debt.

Closing date interest rate: Nominal interest weighted by interest-bearing liabilities outstanding on the balance-sheet date.

Debt/equity ratio: Net debt divided by shareholders’ equity.

Dividend yield: Dividend as a percentage of the market price at year-end.

Earnings per share, after taxes: Net profit for the year attributable to NCC shareholders divided by the weighted number of shares during the year in question.

EBITDA: Operating profit in accordance with the income statement with depreciation and impairment losses reversed (not construction-related projects) including impairment losses on properties classed as current assets and excluding depreciation of leases.

Equity/assets ratio: Shareholders’ equity as a percentage of total assets.

Exchange-rate difference: Exchange-rate changes attributable to movements in various exchange rates when receivables and liabilities in foreign currency are translated into SEK.

Exchange-rate effect: Impact of changes in various exchange rates on current reporting in NCC’s consolidated accounts on translation into SEK.

Interest-bearing Corporate Debt: Interest-bearing liabilities excluding lease liability and excluding pension debt.

Interest coverage ratio: Profit after financial items following the reversal of financial expenses divided by financial expense.

Net debt/EBITDA: Corporate net debt divided by EBITDA.

Net investments: Closing balance less opening balance plus depreciation and impairment losses less write-ups of fixed assets and properties classified as current assets

Net sales: The net sales of construction operations are recognized in accordance with the percentage-of-completion profit recognition principle. These revenues are recognized in pace with the gradual completion of construction projects within the company. Property sales are recognized on the date when material risks and benefits are transferred to the buyer, which normally coincides with the transfer of ownership. In the Parent Company, net sales correspond to recognized sales from completed projects.

Operating capital employed: Total assets less interest-free liabilities (including current and deferred tax liabilities), financial fixed assets, current tax receivables, current interest-bearing receivables and cash and bank. Average capital employed is calculated as the average of the balances at January 1, March 31, June 30, September 30 and December 31.

Operating margin: Operating profit as a percentage of net sales.

Operating net: Profit from property management before depreciation.

Order backlog: Year-end value of the remaining unrecognized project revenues for projects received, including proprietary projects for sale that have not been completed.

Orders received: Value of received projects and changes in existing projects during the period concerned. Proprietary projects for sale are also included among assignments received, assuming that a decision to initiate the assignment has been taken, as well as sold completed housing units from inventory.

P/E ratio: Year-end market price of the shares, divided by earnings per share after taxes.

Return on capital employed: Profit after financial items including results from participations in associated companies following the reversal of interest expense in relation to average capital employed. Return on capital employed is used to optimize the Group’s capital allocation and value generation. 

Return on operating capital employed: Profit after financial items including results from participations in associated companies following the reversal of interest expense in relation to average operating capital employed.

Return on shareholders’ equity: Net profit for the year according to the income statement excluding non-controlling interests, as a percentage of average shareholders’ equity.

Shareholders’ equity per share before and after dilution: Closing shareholders’ equity before and after dilution in relation to the number of outstanding shares at the end of the period.

Total net debt: Interest-bearing liabilities and provisions for pensions and similar obligations less cash and cash equivalents, short-term investments and interest-bearing receivables.

Total return: Share-price performance during the year plus dividend paid divided by share price at the beginning of the year.