Calculation of key figures and purpose of use

Definition 

Operating result as presented in the consolidated income statement 

Reason for the use 

Operating result (EBIT) reflects the result generated by the Group’s business activities excluding financing and taxes. 

Definition 

Operating result (EBIT) as percentage of net sales 

Reason for the use 

Operating result (EBIT) reflects the result generated by the Group’s business activities excluding financing and taxes. 

Definition 

Operating result excluding depreciation, amortization and impairment losses 

Reason for the use 

Management uses EBITDA to track the underlying profitability excluding non-cash capital expenses of the Group’s core business operations. 

Definition 

EBITDA as percentage of net sales 

Reason for the use 

Management uses EBITDA to track the underlying profitability excluding non-cash capital expenses of the Group’s core business operations. 

Definition 

Special items are defined as significant items of income and expenses, which are considered to incur outside the ordinary course of business. Special items include e.g.  restructuring related costs such as employee, facility, contract termination and professional services, impairment losses on assets, impairment on goodwill, gains or losses on sale of shares, real estates or business operations and transaction costs, gains and losses from contingent consideration arising from business acquisitions and costs incurred in the contemplated listing of Posti. 

Reason for the use 

Special items which are not directly related to Group’s normal recurring activities, are reported separately, in order to assess the performance and comparability between reporting periods of its core business operations. 

Definition 

Operating result excluding special items 

Reason for the use 

Adjusted operating result (adjusted EBIT), Adjusted EBITDA and related margins are presented in addition to operating result (EBIT) and EBITDA to reflect underlying business performance and to enhance comparability from period to period. Posti believes that these adjusted performance measures provide meaningful supplemental information by excluding items outside the ordinary business, which reduce comparability between the periods. 

Definition 

Adjusted operating result (adjusted EBIT) as percentage of net sales 

Reason for the use 

Adjusted operating result (adjusted EBIT), Adjusted EBITDA and related margins are presented in addition to operating result (EBIT) and EBITDA to reflect underlying business performance and to enhance comparability from period to period. Posti believes that these adjusted performance measures provide meaningful supplemental information by excluding items outside the ordinary business, which reduce comparability between the periods. 

Definition 

EBITDA excluding special items 

Reason for the use 

Adjusted operating result (adjusted EBIT), Adjusted EBITDA and related margins are presented in addition to operating result (EBIT) and EBITDA to reflect underlying business performance and to enhance comparability from period to period. Posti believes that these adjusted performance measures provide meaningful supplemental information by excluding items outside the ordinary business, which reduce comparability between the periods. 

Definition 

Adjusted EBITDA as percentage of net sales 

Reason for the use 

Adjusted operating result (adjusted EBIT), Adjusted EBITDA and related margins are presented in addition to operating result (EBIT) and EBITDA to reflect underlying business performance and to enhance comparability from period to period. Posti believes that these adjusted performance measures provide meaningful supplemental information by excluding items outside the ordinary business, which reduce comparability between the periods. 

Definition 

The increase in net sales derived from Posti’s existing operations. Reported net sales is adjusted by excluding net sales generated from business acquisitions as well as divestments and operations that are discontinued, which are considered to impact comparability 

Reason for the use 

Organic growth in net sales reflects Posti’s ability to increase its net sales through the efficiency of its own resources and volume growth.

This metric is one of Posti’s medium-term financial targets

Definition 

The increase in net sales derived from Posti’s existing operations without Postal Services. Reported net sales is adjusted by excluding net sales generated from Postal Services and net sales generated from acquisitions as well as divestments and operations that are discontinued, which are considered to impact comparability. 

Reason for the use 

Organic growth in net sales reflects Posti’s ability to increase its net sales through the efficiency of its own resources and volume growth without Postal Services.

This metric is one of Posti’s medium-term financial targets.

Definition 

Non-current assets less deferred tax assets plus inventories and trade and other receivables. Balance sheet assets less other non-current liabilities, less advances received, less provisions, less defined benefit pension obligations, less trade and other payables 

Reason for the use 

Capital employed presents the total investment in the Group’s business operations and it is used to calculate return on capital employed 

Definition 

Operating result (12 months rolling) / capital employed (average of opening and closing balance of the previous 12 months) 

Reason for the use 

Return on capital employed is a profitability metric that the Group uses to measure how efficiently it uses invested capital to generate profits. 

Definition 

Total equity / (total assets – advances received) 

Reason for the use 

The equity ratio indicates the relative proportion of equity used to finance the Group’s assets which helps to monitor the indebtedness of the Group. 

Definition 

Non-current and current interest-bearing borrowings, (including loans from financial institutions and commercial papers) and lease liabilities. 

Reason for the use 

Component of a Net debt measure 

Definition 

Cash and cash equivalents, money market investments and investments in bonds 

Reason for the use 

Component of a Net debt measure 

Definition 

Interest bearing borrowings – liquid funds  

Reason for the use 

Net debt is a liquidity measure used by management to monitor the Group’s ability to pay its debts in the short-term. 

Definition 

Net debt / adjusted EBITDA (12 months rolling) 

Reason for the use 

This measure is an indicator of the Group’s indebtedness in relation to its operational financial performance.

This measure is also one of Posti’s mid-term financial targets.

Definition 

Cash flow from operating activities as presented in the Group’s consolidated statement of cash flows less purchase of intangible assets and property, plant and equipment and payments of lease liabilities as presented in the Group’s consolidated statement of cash flows 

Reason for the use 

Operative free cash flow provides information about the Group’s ability to generate cash from its operations after investments available for repaying debt or paying dividends. 

Definition 

Additions to intangible assets and property, plant and equipment including additions to right-of-use assets, business acquisitions comprising of total amount of purchase considerations and additions to investment properties. 

Reason for the use 

Investments show how much is invested in for the operational, lease and strategic projects to maintain the service production capabilities and support growth of the business. 

Definition 

Full time equivalent personnel on average in reporting period 

Reason for the use 

Personnel on average provides information about the overall staff size of the Group and FTE reflects the total number of working hours of all employees. The Group believes that this provided information can be useful when analyzing workforce costs, productivity or staffing needs.