KEY NUMBER DEFINITIONS
The interim report refers to a number of non-IFRS measures that are used to help both investors and company management analyze the company's operations. The various non-IFRS measures used as a supplement to the financial information reported in accordance with IFRS are described below.

Non-IFRS measures Definition Reason for using the measure
Adjusted operating profit Calculated as operating profit less other operating income/expenses.  Adjusted operating profit provides an overall picture of the total generation of earnings in core operating activities. 
Capital employed Balance sheet decreased by non interest bearing debt and deffered tax liabilities.  This measures shows how much capital that is used in the business and is thereby the only component that measues the return from the business. 
Change in sales The change in net sales compared with the year-earlier period expressed as a percentage.  The measure is used to track the performance of the company’s operations between periods. 
Change in sales at unchanged currencies (organic growth) Change in sales at unchanged exchange rates. i.e. excluding currency effects.  This measure is used to monitor underlying change in sales driven by alterations in volume. pricing and mix for comparable units between different periods. 
Debt/equity ratio Net debt in relation to equity.  The measure shows financial risk and is used by management to monitor the Group’s indebtedness. 
EBITDA Operating profit before financial items. tax. depreciation/amortization and impairment. 

The measurement is a way to evaluate the result without taking into consideration financial decisions or taxes. 

Equity per share Equity divided by number of shares at the end of the period.  The measurement shows the return generated on the owners’ invested capital per share. 
Equity/assets ratio Equity expressed as a percentage of total assets at the end of the period.  This is a standard measure to show financial risk. and is expressed as the percentage of the total restricted equity financed by the owners. 
Gross profit Net sales minus cost of goods sold.  Gross profit is used to measure the margin before sales. research. development and administrative expenses 
Interest bearing debt Debt with an interest bearing component  Shows the actiual interest bearing debt burden. 
Net debt Interest-bearing liabilities less cash and cash equivalents and interest-bearing current and long-term receivables This measure shows the Group’s total indebtedness 
Net debt/EBITDA Net debt at the end of the period in relation to operating profit before depreciation and amortization over the past 12-month period.  A relevant measure from a credit perspective that shows the company’s ability to handle its debt. 
Operating costs Consists of sales costs, administration costs and research and development costs that are part of the operating business. In former reports cogs and other income and other costs were also included. Operating costs gives an overall view of costs tied to the operating business and is an important internal measure which management can have a great impact on.
Operating margin Operating profit expressed as a percentage of net sales. Together with sales growth the operating margin is a key element for monitoring value creation.
Operating profit/loss Calculated as profit for the period before financial items and tax. Operating profit/loss provides an overall picture of the total generation of earnings in operating activities.
Order backlog The value of orders at the end of the period that the company has yet to deliver and recognize as revenue. meaning remaining performance obligations. The order backlog shows the value of orders already booked by RaySearch that will be converted to revenue in the future.
Order intake The value (transaction price) of all orders received and changes to existing orders during the current period. Order intake is an indicator of future revenue and thus a key figure for the management of RaySearch’s operations.
P/E ratio Share price at the end of the period divided by profit per share. Shows from an ownership perspective how the market values the share in relation to profit after tax.
Return on capital employed Operating profit plus financial income in percentage of average balance sheet items excluding non-interest bearing debt. A central metric to measure the return on all capital tied up in the business.
Return on equity Calculated as profit/loss for the period as a percentage of average equity. Average equity is calculated as the sum of equity at the end of the period plus equity at the end of the year-earlier period. divided by two. Shows the return generated on the owners’ invested capital from a shareholder perspective.
Rolling 12 months’ sales. operating profit or other results Sales. operating profit or other results measured over the past 12-month period. The measure is used to clearly illustrate the trends for sales. operating profit and other results. which is relevant because RaySearch’s revenue is subject to monthly variations.
Working capital Working capital is comprised by inventories, operating receivables and operating liabilities. It is obtained from the statement of financial position. Operating receivables comprise accounts receivable. other current/long-term receivables and non-interest bearing prepaid expenses and accrued income. Operating liabilities include other non-interest bearing long-term liabilities. advance payments from customers. accounts payable. other current liabilities and non-interest bearing accrued expenses and deferred income. This measure shows how much working capital is tied up in operations and can be shown in relation to net sales to demonstrate the efficiency with which working capital has been used.