Glossary and definitions

Financial definitions

Capital employed
Total assets less non-interest-bearing liabilities and provisions including deferred tax liabilities.

Cash flow per share
Cash flow from operating activities in relation to the average number of shares. Average number of shares is calculated as the number of shares at period-end multiplied by the number of days this number existed during the period and added to any other number of shares during the period multiplied by the number of days these numbers existed during the period, divided by the number of days during the period.

Gross margin
Net sales less costs for goods for resale, as a percentage of net sales.

Gross profit
Revenue minus the cost of goods for resale.

Earnings per share
Profit for the period excluding non-controlling interests, in relation to the average number of shares. Average number of shares is calculated as the number of shares at period-end multiplied by the number of days this number existed during the period and added to any other number of shares during the period multiplied by the number of days these numbers existed during the period, divided by the number of days during the period.

EBIT margin
EBIT after depreciation/amortisation as a percentage of total revenue.

EBITA
EBITA after depreciation according to plan but before amortization and impairment of intangible fixed assets.

EBITA margin
EBITA as a percentage of total revenue.

EBITDA
Operating profit before depreciation/amortisation and impairment of tangible and intangible fixed assets.

EBITDA margin
EBITDA as a percentage of total revenue.

Equity/assets ratio
Shareholders’ equity including non-controlling interest as a percentage of total assets. Parent company’s equity/assets ratio includes 78 per cent of untaxed reserves.

Interest-coverage ratio
Profit after net financial items plus interest expenses divided by interest expenses.

Net debt
Current and long-term interest-bearing liabilities for borrowing, meaning excluding pensions, leasing, derivatives and similar obligations, less cash and cash equivalents.

Net debt/equity ratio
Net debt divided by shareholders’ equity including non-controlling interest.

Operating costs
Operating costs consist of other external costs, personnel costs and depreciation/amortisation and impairment of tangible and intangible fixed assets.

Return on capital employed
Profit after net financial items plus interest expenses as a percentage of average capital employed. Average capital employed is calculated as capital employed at the end of the period added to the four immediately preceding quarters’ capital employed at the end of the period divided by five.

Return on shareholders’ equity
Profit for the period, excluding non-controlling interests, as a percentage of average shareholders’ equity attributable to Parent Company’s shareholders. Average shareholders’ equity attributable to the Parent Company’s shareholders is calculated as shareholders’ equity attributable to the Parent Company’s shareholders at the end of the period added to the four immediately preceding quarters’ shareholders’ equity attributable to the Parent Company’s shareholders at the end of the period divided by five.

Return on total capital
Profit after net financial items plus interest expenses as a percentage of the average total assets. Average total assets are calculated as total assets at the end of the period added to the four immediately preceding quarters’ total assets at the end of the period divided by five.

Sales growth
Increase in the total revenue as a percentage of the total revenue of the previous year.

Sales per employee
Sales relative to the average number of employees.

Shareholders’ equity per share
Shareholders’ equity excluding non-controlling interests, in relation to the number of shares at the end of the period.

Company-specific definitions

Accessories for cars
Products that are not necessary for a car to function, but enhance the experience or extend use of the car, for example, car-care products, roof boxes, car child seats, etc.

Affiliated workshops
Workshops that are not proprietary owned, but conduct business under the Group’s brands/workshop concept (Mekonomen Service Centre, MekoPartner, MECA Car Service, BilXtra and Speedy).

B2B
Sales of goods and services between companies (business-to-business).

B2C
Sales of goods and services between companies and consumers (business-to-consumer).

Comparable units
Stores, majority-owned workshops and Internet sales that have been in operation for the past 12 month period and throughout the entire preceding comparative period.

Concept workshops
Affiliated workshops.

Currency effects on the balance sheet
The impact of currency regarding realised and unrealized revaluations of foreign short-term non-interest-bearing receivables and liabilities.

Currency-transaction effects
Currency impact on internal sales from Mekonomen Grossist AB and from MECA CarParts AB to each country.

Currency-translation effects
Currency impact in the translation of the earnings of foreign subsidiaries to SEK.

DAB products
Car accessories with solutions for receiving digital radio broadcasts. DAB is an abbreviation for Digital Audio Broadcasting.

Fleet operations
Mekonomen Group’s offering to business customers comprising service and repairs of cars, sales of spare parts and accessories and tyre storage.

Group companies
The MECA, Mekonomen Sweden, Mekonomen Norway and Sørensen og Balchen segments.

Lasingoo
The car portal that Mekonomen Group owns together with industry players that simplifies the workshop selection and booking processes for car owners.

Mekonomen Yehlove
Mekonomen’s cutting-edge concept that meets the customers’ growing demands for quality, availability and comfort, with an extended range of services and complete solutions.

OBP
Own brand products, such as Mekonomen Group’s own brand products ProMeister and Carwise.

Partner stores
Stores that are not proprietary, but conduct business under the Group’s brands/store concepts.

ProMeister
Mekonomen Group’s proprietary brand for high quality spare parts with five-year warranties.

Proprietary stores
Stores with operations in subsidiaries, directly or indirectly majority owned, by Mekonomen AB.

Proprietary workshops
Workshops with operations in subsidiaries, directly or indirectly majority owned, by Mekonomen AB.

Sales in comparable units
Sales in comparable units comprise external sales (in local currency) in majority-owned stores, wholesale sales to partner stores, external sales in majority-owned workshops and Internet sales.

Sales to customer group Affiliated workshops
Sales to affiliated workshops and sales to proprietary workshops.

Sales to customer group Consumers
Cash sales from proprietary stores to customer groups other than affiliated workshops and other B2B-customers, as well as the Group’s e-commerce sales to consumers.

Sales to customer group Other B2B-customers
Sales to business customers that are not affiliated to any of Mekonomen Group’s concepts, including sales in the fleet operations.

Spare parts for cars
Parts that are necessary for a car to function.

Underlying net sales
Sales adjusted for the number of comparable working days and currency effects.