Concepts and key ratios
Acquisitions and other investments
Investments in goodwill, intangible and tangible non-current assets acquired in business combinations, shares and participations, and asset retirement obligations.
EBITDA adjusted for adjustment items within EBITDA.
Adjusted EBITDA margin
Adjusted EBITDA in relation to net sales.
Reported equity attributable to owners of the parent less the (proposed) dividend. For the parent company also including untaxed reserves net of tax.
Adjusted operating income
Operating income adjusted for adjustment items within operating income.
Adjustment items comprise capital gains and losses, impairment losses, restructuring programs (costs for phasing out operations and personnel redundancy costs) or other costs with the character of not being part of normal daily operations.
Average monthly revenue per user.
The number of lost subscriptions (postpaid and prepaid) expressed as a percentage of the average number of subscriptions (postpaid and prepaid).
CAPEX with addition/deduction of net of paid investments and additional payments from previous periods.
An abbreviation of “Capital Expenditure.” Investments in intangible and tangible non-current assets but excluding goodwill, intangible and tangible non-current assets acquired in business combinations and asset retirement obligations.
CAPEX excluding license and spectrum fees
CAPEX deducted with license and spectrum fees.
Total assets less non-interest-bearing liabilities and non-
interest-bearing provisions, and the (proposed) dividend.
Change local organic (%)
The change in Net sales/External service revenues/Adjusted EBITDA, excluding effects from changes in currency rates compared to the group’s reporting currency (SEK) and acquisitions/disposals, compared to the same period previous year.
Earnings and equity per share
Earnings per share are based on the weighted average number of shares before and after dilution with potential ordinary shares, while equity per share is based on the number of shares at the end of the period. Earnings equal net income attributable to owners of the parent and equity is equity attributable to owners of the parent.
An abbreviation of “Earnings Before Interest, Tax, Depreciation and Amortization.” Equals operating income before depreciation amortization and impairment losses, and before income from associated companies and joint ventures.
EBITDA expressed as a percentage of net sales.
Adjusted equity and equity attributable to non-controlling interests expressed as a percentage of total assets.
Free cash flow
The total of cash flow from operating activities and cash CAPEX.
Interest coverage ratio
Operating income plus financial revenues divided by financial expenses.
Mobile billed revenues
Voice, messaging, data and content.
Interest-bearing liabilities less derivatives recognized as financial assets (and hedging long-term and short-term borrowings) and related credit support annex (CSA), less 50 percent of hybrid capital (which, consistent with market practice for the type of instrument, is treated as equity), less short-term investments, long-term bonds available for sale and cash/cash equivalents.
Net debt/assets ratio
Net debt expressed as a percentage of total assets.
Net debt/adjusted EBITDA ratio (multiple)
Net debt divided by adjusted EBITDA rolling 12 months and excluding disposed operations.
Net debt/equity ratio
Net debt expressed as a percentage of adjusted equity and equity attributable to non-controlling interests.
Net interest-bearing liability
Interest-bearing liabilities and provisions less interest-
bearing assets but including investments in associated companies and joint ventures.
Non-interest-bearing assets less non-interest-bearing liabilities, including the (proposed) dividend, and non-interest-bearing provisions.
Operational free cash flow
Free cash flow from continuing operations excluding cash CAPEX for licenses and dividends from associated companies net of taxes.
Operating income expressed as a percentage of net sales.
For 2013-2015 dividend per share divided by basic total earnings per share. For 2016 and 2017 proposed dividend divided by free cash flow excluding licenses.
Return on assets
Operating income plus financial revenues expressed as a percentage of average total assets.
Return on capital employed
Operating income, including impairments and gains/losses on disposals, plus financial revenues excluding foreign exchange gains expressed as a percentage of average capital employed.
Return on equity
Net income attributable to owners of the parent expressed as a percentage of average adjusted equity.
Return on sales
Net income expressed as a percentage of net sales.
Segment assets and liabilities (Segment operating capital)
As Operating capital, but assets and liabilities excluding items related to foreign currency derivatives and accrued interest as well as to deferred and current tax, respectively, and liabilities excluding the (proposed) dividend.
Cash flow from operating activities divided by gross investments.
Service revenues (external)
External net sales excluding equipment sales.
Total asset turnover
Net sales divided by average total assets.
Turnover of capital employed
Net sales divided by the average capital employed.
In conformity with international standards, this report applies the following currency notations: