ASIAKASTIETO GROUP PLC, STOCK EXCHANGE RELEASE 21 JUNE 2016, 2.00 P.M. EEST
Alternative performance measures to be used in Asiakastieto Group's financial reporting
The new guidelines of the European Securities and Markets Authority, ESMA for alternative performance measures1 become effective for the financial year 2016. In accordance with this, Asiakastieto Group Plc publishes the explanation of the use of alternative performance measures used by the company, definitions of the performance measures used and reconciliation with the IFRS financial statement.
Asiakastieto Group Plc discloses alternative performance measures to depict the financial development of its business operations and to improve comparability between different periods. Alternative measures should not be considered replacing indicators compared to the performance measures defined in the IFRS financial statements norms.
Alternative performance measures i.e. performance measures not based on financial statements standards provide meaningful supplemental information to management and investors, security analysts and other interested parties regarding the Company by excluding items that may not be indicative of the operating result or cash flows of the Group. EBITDA, adjusted EBITDA, adjusted EBIT, return on equity, return on capital employed and gross investments are presented as alternative performance measures as the Company believes they enhance an understanding of the Group's operating performance and are frequently used by securities analysts, investors and other interested parties.
Free cash flow and cash conversion are presented as alternative performance measures as the Company believes they provide a good representation of the operational cash flow needs of the Group and are frequently used by securities analysts, investors and other interested parties.
Net debt, net debt to adjusted EBITDA, equity ratio and gearing are presented as alternative performance measures as the Company believes they are useful indicators of the Group's ability to obtain financing and service its debts and are frequently used by securities analysts, investors and other interested parties.
Certain business transactions, which are not part of the actual business operations or asset impairments, which do not have an impact on the cash flow, but which do have a significant impact on the profit and loss statement of the period, have been adjusted as items impacting the comparability, if they are caused by:
- profit from the sale of office premises as non-recurring transaction
- negotiated redundancy payments not part of the operative cost structure
- compensations for damages as non-recurring transactions
- legal proceedings as non-recurring transactions
- management fees omitted permanently from the Group's cost structure
- the Company's listing as non-recurring transaction
- discount for the personnel in the personnel offering in connection with the listing as non-recurring transaction
1 Alternative measures refer to a financial measures, which is some other than the financial measure defined or titled in the IFRS norms.
ASIAKASTIETO GROUP PLC
tel. +358 10 270 7017
Nasdaq Helsinki Ltd
Asiakastieto Group is one of the leading providers of business and consumer information services in Finland. The Group's products and services are primarily used for risk management, finance and administration, decision-making and sales and marketing purposes. The Group has approximately 13 000 contract customers and it serves several industries, the largest ones including finance and banking, wholesale and retail sectors and expert services. In 2015, the Group's net sales totaled 43,7 million euros and at the end of 2015, the Group employed 152 people. Asiakastieto Group is listed on Nasdaq Helsinki under symbol ATG1V. For more information about Asiakastieto Group, please visit www.asiakastieto.fi.