Key Performance Indicators

Question 1

Nominal Growth Rate

Answer 1

Actual values Order/Rev compared to prev period

Question 2

Comparable new orders / rev growth

Answer 2

Actual numbers adjusted by FX effects and portfolio effects

Question 3

Book to Bill

Answer 3

New Orders / Rev

Question 4

ROCE

Answer 4

Adjusted Profit / Average Capital employed
Measures capital efficiency

Question 5

Economic Value added (EVA)

Answer 5

Profit - cost of capital (WACC * average Net capital employed)

Question 6

Industrial Net Debt

Answer 6

Short term debt and current maturities of long term debt
+long term debt
-cash and equivalents
= net debt
+pensions prov
+credit guarantees
= industrial net debt
Can be put in relation with EBITDA to make statement on capital structure

Question 7

Free Cash Flow - components

Answer 7

Operating Activity - part of FCF
Investing Activity - only investments in tangible asset for FCF
Financing activity - NO

Question 8

Free Cash Flow Calculation

Answer 8

Cash flows from operating activities - Additions to intangible assets and property

Question 9

Cash Conversion Rate

Answer 9

FCF / Profit