Non-GAAP measures glossary - Full Year Results 2017 onwards
- Like-for-like
- Restructuring, litigation, implementation and other non recurring costs
- Profit/Loss on disposals and other non-operating items
- Recurring EBITDA
- Recurring EBITDA Margin
- Net income before impairment and divestments
- Earnings per share (EPS) before impairment and divestments
- The Net Maintenance and Expansion Capex (“Capex” or “Capex Net”)
- Free Cash Flow
- Net financial debt (“Net debt”)
- Invested Capital
- Net Operating Profit After Tax (“NOPAT”)
- ROIC (Return On Invested Capital)
- Cash conversion
Factors out changes in the scope of consolidation (such as divestments and acquisitions occurring in 2017 and 2016) and currency translation effects (2017 figures are converted with 2016 exchange rates in order to calculate the currency effects).
Significant items that, because of their exceptional nature, cannot be viewed as inherent to the Group's ongoing performance, such as strategic restructuring, major items relating to antitrust fines and other business related litigation cases. In 2017 and 2016, they also included costs directly related to the merger such as legal, banking fees and advisory costs, employee costs related to redundancy plans and IT implementation costs.
Comprises capital gains or losses on the sale of Group companies and of property, plant and equipment and other non-operating items that are not directly related to the Group's normal operating activities such as revaluation gains or losses on previously held equity interests, disputes with non-controlling interests and other major lawsuits.
Previously Operating EBITDA Adjusted, defined as:
+/– Operating profit - depreciation, amortization and impairment of operating assets
- restructuring, litigation, implementation and other non-recurring costs
Recurring EBITDA divided by Net Sales
+/- Net income (loss)
- capital gains or losses on the sale of Group companies
- impairment of goodwill and assets
Net income before impairment and divestments attributable to the shareholders of LafargeHolcim divided by the weighted average number of shares outstanding.
+ Expenditure to increase existing or create additional capacity to produce, distribute or provide services for existing products (expansion) or to diversify into new products or markets (diversification)
+ Expenditure to sustain the functional capacity of a particular component, assembly, equipment, production line or the whole plant, which may or may not generate a change of the resulting cash flow
– Proceeds from sale of property, plant and equipment
Previously “Operating Free Cash Flow”, defined as:
+/– Cash flow from operating activities
– Net Maintenance and expansion Capex
+ Financial liabilities (Long Term & Short Term) including derivative liabilities
– Cash and cash equivalents
– Derivative assets
+ Net working capital
+ Investments in associates and joint ventures
+ Property, plant and equipment
+ Goodwill
+ Intangible assets
+ Deferred tax assets
+ Pension assets
– Short-term provisions
– Defined benefit obligations
– Deferred tax liabilities
– Long-term provisions
+/– Net Operating Profit (being the Recurring EBITDA, adjusted for depreciation and amortization of operating assets but excluding impairment of operating assets)
– Standard Taxes (being the taxes applying the Group's tax rate to the Net Operating Profit as defined above)
Net Operating Profit After Tax (NOPAT) divided by the average Invested Capital. The average is calculated by adding the Invested Capital at the beginning of the period to that at the end of the period and dividing the sum by 2 (based on a rolling 12 month calculation)
Free Cash Flow divided by Recurring EBITDA