Investors > Financial Information > Alternative performance measures

Alternative performance measures

Alternative performance measures (APMs) in Elisa's financial reporting

New ESMA (European Securities and Markets Authority) guidelines on Alternative Performance Measures (Alternative performance measure (APM) = financial measure other than financial measure defined or specified in IFRSs) are effective as of 3 July 2016.

Alternative performance measures i.e. performance measures not based on financial statements standards provide meaningful supplemental information by excluding items that may not be indicative of the operating result or cash flows of Elisa. Alternative performance measures enhance comparability from period to period and are frequently used by analysts, investors and other parties. APMs should not be considered as a substitute for measures of performance in accordance with the IFRS.

From Q3 2016, Elisa replaces previously used performance measures "excluding extraordinary items" with "Comparable".

Elisa’s alternative performance measures (the definitions or calculation methods of these measures remain unchanged):

EBITDA = Operating profit + depreciations
Comparable EBITDA = Operating profit + depreciations - items affecting comparability
Comparable EBIT =

Operating profit - items affecting comparability

Comparable profit for the period = Profit for the period - items affecting comparability
Comparable EPS = Profit attributable to owners of the parent company – items affecting comparability
----------------------------------------------------

Average number of shares during the period adjusted for issues

Cash flow after investments =
“Cash flow before financing activities” in Statement of Cash Flows =

Net cash flow from operating activities – Net cash used in investing activities

Comparable cash flow after investments =
“Cash flow before financing activities” in Statement of Cash Flows  =
Net cash flow from operating activities – Net cash used in investing activities – items affecting comparability
Comparable return on investment (ROI), % =

Profit before taxes + interest and other financial expenses – items affecting comparability
--------------------------------------------------x100
Total equity + interest bearing liabilities (on average during the year)

Comparable return on equity (ROE), % = Profit for the period - items affecting comparability
--------------------------------------------------x100

Total shareholders' equity (on average during the year)

Net debt =

Interest-bearing liabilities – Cash and cash equivalents and financial assets at fair value through profit or loss

Gearing ratio, % =

Interest-bearing liabilities – Cash and cash equivalents and financial assets at fair value through profit or loss
--------------------------------------------------x100
Total shareholders’ equity

Equity ratio, % = Total shareholders’ equity
--------------------------------------------------x100
Balance sheet total – advance payments received


Items affecting comparability:

Certain non-operational or non-cash valuation transactions with significant income statement impact are considered as items affecting comparability. These non-recurring items could arise for example from:

  • - asset impairments
  • - restructuring measures
  • - reorganisation measures
  • - administration fees or redundancy payments omitted permanently from the cost structure
  • - asset sales or disposals
  • - changes in legislation, compensations for damages or legal proceedings.


In addition to above described APMs, Elisa reports other Alternative Performance Measures that are not defined under IFRS. These APMs can be found in Elisa’s Annual Reports. The definitions and names of these measures remain unchanged.