Definitions & Glossary

Financial definitions

CAPITAL EMPLOYED: Total assets less non-interest bearing liabilities and non-interest bearing provisions.

CASH FLOW PER SHARE: Cash flow from operating activities divided by the average number of shares.

CURRENCY ADJUSTED INFORMATION: Financial figures converted to the same exchange rate as in the comparative period. The aim is to show how the business has developed without the impact of currency fluctuations.

DIVIDEND YIELD: Dividend divided by market price at year-end.

EARNINGS PER SHARE: Proportion of net income for the year attributable to the owners of the Parent Company divided by weighted average number of shares.

EBIT MULTIPLE: Market value at year-end plus net debt divided by operating income.

EQUITY RATIO: Equity including non-controlling interests as a percentage of total assets.

EQUITY PER SHARE: Total equity attributable to the owners of the parent Company, divided by the average No of shares.

GROSS MARGIN: Gross profit i.e net sales minus cost of goods sold, divided by net sales.

INTEREST COVERAGE RATIO: Operating income excluding one-off items plus interest income divided by interest expenses.

NET DEBT: Cash and cash equivalents plus interest-bearing receivables minus interest-bearing liabilities and provisions.

NET DEBT/EQUITY RATIO: Interest-bearing liabilities and provisions minus cash and cash equivalents and interestbearing receivables divided by equity including non-controlling interests.

ONE-OFF ITEMS: Income statement items, which are of non-recurring nature in normal operations. One-off items may for example include restructuring costs, impairment and product related warranties related to a specific product recall. The purpose of specifying this is to demonstrate the underlying business performance.

NET OF INTEREST: The economical difference in absolute terms between the reported interest income for financial assets and interest expense on interest-bearing liabilities and provisions.

OPERATING INCOME: Operating income before financial items and tax.

OPERATING INCOME EXCLUDING ONE-OFF ITEMS: Operating income before financial items and tax, adjusted for one-off items.

OPERATING MARGIN: Operating income as a percentage of net sales for the year.

PAYOUT RATIO: Dividend divided by earnings per share.

P/E RATIO: Market value at year-end divided by earnings.

R&D, %: Costs for research and development as a percentage of net sales.

RETURN ON CAPITAL EMPLOYED: Operating income plus interest income as a percentage of average capital employed.

RETURN ON EQUITY: The proportion of net income for the year attributable to owners of the Parent Company as a percentage of the proportion of average equity attributable to owners of the Parent Company.


ABA: Automatic Brake Adjuster

ABS: Anti Lock Brake System

AIR CONTROLS: Haldex’s product line for products to improve brake systems’ safety and driving qualities, such as treatment and dehumidifying of compressed air, valves and ABS & EBS.

AFTERMARKET: Spare parts sold to, and training and services provided to the workshops that repair and service vehicles.

FOUNDATION BRAKE: Haldex’s product line for brake products for wheel ends such as disc brakes, brake adjusters for drum brakes and acutators.

OEM: Original Equipment Manufacturer, i.e. vehicle manufacturers.

OES: OEM’s service network.

TRUCKS: Heavy trucks and buses.

TRAILERS: Trailers attached to a semi-tractor (truck).