Key figure definitions

Gross margin (EBITDA, %)
Operating profit before depreciation and amortisation (EBITDA = Earnings before Interest, Taxes, Depreciation and Amortisation) as a percentage of net sales. This key performance indicator is used both in follow-up of profit and loss and in comparison with comparable companies.

Operating margin
Operating profit as a percentage of net sales. Operating margin shows the percentage of revenue remaining after account has been taken of operating expenses. This key performance indicator is used both in follow-up of
profit and loss and in comparison with comparable companies. 

Return on capital employed (ROCE)
Operating profit calculated over 12 months as a percentage of average capital employed calculated per quarter. Return on capital employed is a measure indicating how effectively total net operating assets are used to generate return in the business. This key performance indicator takes account of capital invested in the business and is used in following up profit and loss and in comparison with comparable companies.  

Return on equity
Profit/loss for the period, calculated over 12 months, attributable to parent company shareholders, as a percentage of average equity calculated per quarter, attributable to parent company shareholders. This measure represents total profitability compared with equity invested by parent company shareholders. 

Capital employed
Total assets less non-interest bearing liabilities, non-interest bearing provisions and interest-bearing assets. Capital employed is used to quantify net assets used in operational activity, to which operating profit or loss can be related.

Shareholders’ equity
Shareholders’ equity at the end of the period.

Diluted shareholders' equity
Shareholders’ equity at the end of the period plus the effect of estimated participation in the incentive programme.

Interest-bearing net debt
Interest-bearing provisions and liabilities less interest-bearing assets. This key ratio defines financing via financial liabilities taken account of financial assets, and is used as an element in the assessment of financial risk.

Working capital
Inventories, accounts receivable and other operating assets less accounts payable and other operating liabilities. This amount shows the net figure for current assets and current liabilities used in the business. Together with non-current assets, working capital constitutes the capital employed operationally to generate return.

Working capital as percentage of net sales
Average working capital for the past three months divided by net sales for the full year or for part of the year, net sales on an annual basis (net sales for the quarter times four). This key performance indicator shows how
effectively working capital is used. A lower percentage means that less capital has been tied up to generate particular revenue, and a higher ability to finance internally growth and return for shareholders.  

Earnings per share
Profit/loss for the period, attributable to parent company shareholders, divided by the average number of shares on the market.

Diluted earnings per share
Profit/loss for the period, attributable to parent company shareholders, divided by the average number of shares on the market after estimated participation in the incentive programme.

Shareholders’ equity per share
Shareholders' equity at the end of the period, attributable to parent company shareholders, divided by the number of shares on the market at the end of the period.

Shareholders’ equity per share, diluted
Shareholders’ equity at the end of the period, attributable to parent company shareholders, plus the effect of estimated participation in the incentive programme, divided by the number of shares on the market at the end of the period plus the effect of estimated participation in the incentive programme.

Cash flow from operating activities per share
Cash flow from operating activities divided by the average number of shares on the market during the period.

Operating cash flow per share
Cash flow from operating activities including net investments in property, plant and equipment and acquisitions of financial assets, divided by the average number of shares on the market over the period.

P/E ratio
Share price at year-end divided by earnings per share.

EV/EBITDA
Market capitalisation plus interest-bearing net debt, divided by operating profit before depreciation, amortisation and impairment losses (EBITDA = Earnings Before Interest, Tax, Depreciation and Amortisation).

Fluting
The rippled middle layer in corrugated board. Produced from primary or recycled fibre.

Market pulp
Pulp which is sold to paper mills that do not produce their own pulp

MF Paper (machine finished)
A calendered paper with high printability combined with high strength. Used for packaging with a special need for this combination.

MG Paper (mono glazed paper)
Paper which is dried on a highly polished Yankee cylinder, giving it a smooth, glossy surface on one side. Used for packaging with stringent demands on purity, for example.

Sulphate pulp
Chemical pulp produced by cooking wood under high pressure and at a high temperature in cooking liquor, known as white liquor (sodium hydroxide and sodium sulphide). Sulphate pulp is also known as kraft pulp.