The SEA Group uses alternative performance indicators (API’s) in order to provide information on the profitability of the business in which it operates and its financial situation more effectively. In accordance with the guidelines published on October 5, 2015 by the European Securities and Markets Authority (ESMA/2015/1415), and pursuant to Consob communication 92543 of December 3, 2015, the content and criteria for determining the APM’s used in the present financial statements are set out below:
- EBITDA, gross operating margin or gross operating result is calculated as the difference between total revenues and total costs, excluding provisions and write-downs.
- EBIT or operating result is calculated as the difference between total revenues and total costs, including provisions and write-downs.
- The line “Discontinued operations profit/(loss)” from FY 2017 includes the net result of the company SEA Handling SpA in liquidation, as per IFRS 5.
- “Profit / (loss) before taxes” means the result before the discontinued operations net result and before taxes.
- “Net financial debt” or “Net financial position” means liquidity, financial receivables and current securities, net of financial payables (current and non-current) and the fair value of financial debt hedging derivatives.
- “NFP/EBITDA” means the ratio of Net financial debt to EBITDA, as defined above.
- “Working capital” means the sum of inventories, trade receivables, other current receivables, other current financial receivables, tax receivables, other payables, trade payables and tax payables.
- “Net capital employed” means the sum of working capital, as defined above, and fixed assets, net of the personnel provisions, other non-current payables and provision for contingencies and charges.
- “Investments in tangible and intangible assets” means investments in tangible and intangible assets based on the information presented in the SEA Group’s notes, net of uses of the restoration provision.
- “Non-recurring components” means items arising from non-recurring transactions. Such items, in the management’s opinion and where specified, may be excluded in the interest of better comparability and assessment of financial performance results. In this Directors’ Report, some of the measures listed above are presented and described net of non-recurring components.
Finally, it should be noted that API’s have been calculated uniformly across all periods and are not to be considered as replacing the conventional measures prescribed in IASs/IFRSs.