Definitions

Definitions of key performance indicators

Rugvista Group presents certain measures that are not defined under IFRS (alternative performance measures – “APMs”). The Group believes that these measures provide useful supplementary information to investors and the Company’s management as they enable evaluation of the Company’s financial development and position. Since not all companies calculate financial measures in the same way, these are not always comparable with measures used by other companies. These financial measures should therefore not be regarded as substitute for measures defined in accordance with IFRS. The APMs have been derived from Rugvista Group’s internal accounts and have not been audited.

Measure Definition Explanation
Number of visits Number of visits to the Company’s online stores during the period. A measure that provides an indication of the Company’s ability to attract potential customers to the Company’s online stores during the period.
Number of new customers Number of orders from new customers, before cancellations or returns. A measure that provides an indication of how well the Company succeeds in attracting new customers with its offering.
Number of orders Number of orders placed by customers during the period, before cancellations or returns. A measure that provides an indication of the Company’s level of activity towards customers. Also used to calculate unit-based key metrics.
Gross margin Gross profit divided by the net revenue. Demonstrates profitability after goods for resale have been paid.
Gross profit Net revenue less the cost for goods for resale. Demonstrates what is left to finance other costs after the goods for resale have been sold.
EBIT Operating income less operating costs before net financial income and taxes. The amount shows the Company’s earnings before interest and taxes, which gives the Executive Management an overview of total profitability.
EBIT margin Operating profit (EBIT) divided by net revenue. A measure that demonstrates the profitability for the Group’s operational business.
EBITDA The operating profit before depreciation, amortization, interest and taxes. The key performance indicator shows the operating profit cleared from the effect of depreciation and amortization, and thus provides a more comparable performance indicator over time.
EBITDA margin The operating profit before depreciation, amortization, interest and taxes, divided by the net revenue. The key performance indicator shows the Company’s profitability before depreciation and amortization.
Shipping and other selling expenses as a portion of revenue Costs associated with completion of orders during the period divided by the net revenue during the period. A measure that provides an indication of how much the Company pays for costs associated with the completion of orders.
Average NPS value The average value for customer responses on the NPS (Net Promotor Score) question for orders received during the period. The maximum value is 100. An established key performance indicator that is used to measure the Company’s customer satisfaction.
Average order value The average value, including VAT, of orders after cancellations during the period, divided by the number of orders during the period. A measure that provides an indication of how much each customer is willing to pay for the Company’s products.
Average TrustPilot value The average value for customer responses on the TrustPilot platform during the period. The maximum value is 5.0. A number which is used to measure customer satisfaction.
Investments as a portion of net revenue Investments in tangible and intangible assets, divided by the net revenue. Used to follow how the value of investments develops in relation to net revenue.
Adjusted EBIT Operating income minus operating costs before net financial income and taxes, adjusted for items affecting comparability and other exceptional costs. The amount shows the Company’s earnings before interest and taxes, excluding items affecting comparability and other exceptional costs.
Adjusted EBIT margin Adjusted EBIT divided by net revenue. A measure that demonstrates the profitability for the Group’s operations, excluding items affecting comparability and other exceptional costs.
Cash conversion Operating cash flow adjusted for non-cash items in percent of EBITDA. The key performance indicator shows the Company’s ability to manage future amortizations and investments.
Inventory value as a portion of net revenue Inventory value as of the balance sheet date, divided by the net revenue (rolling 12 months). The purpose of this measure is to follow and make it possible to parry the purchases of products according to changes in revenue.
Marketing costs as a portion of net revenue The costs for marketing activities carried out during the period, divided by net revenue during the period. A measure that provides an indication of how much the Company invests in marketing its offering to potential customers.
Net revenue growth The period’s total net revenue, divided by the previous period’s net revenue. Demonstrates the growth rate of the Group’s net revenue for one period in relation to the previous period.
Operating cash flow EBITDA +/- changes in cash flow affecting working capital, less investments (CapEx). Operating cash flow is used to monitor the cash flow from the operations.
Operating cash flow adjusted for non-cash items Operating cash flow adjusted for non-cash items (amortization of leasing debt and interest costs for leasing). The key performance indicator is used to monitor the cash flow from the operations.
Organic growth Net revenue growth adjusted for net revenue relating to acquired and divested operations. The key performance indicator is used to measure the comparable net revenue growth.
Product expenses as a portion of net revenue Goods for resale excluding shipping and other selling expenses as a portion of net revenue. A measure that provides an indication of how much the Company pays for the products that drive the net revenue.
Return rate in percent The value of returns (actual and expected) during the period, divided by the sales during the period. A measure that provides an indication of if the Company’s customers are satisfied with the products they have ordered.
Working capital Current assets, excluding cash and cash equivalents, minus non-interest-bearing current liabilities (prepaid income and accrued expenses, accounts payable, current tax liabilities, and other current liabilities). The Company uses working capital as a measure of current financial soundness, since it indicates whether the Company has sufficient current assets to cover its current liabilities.
Working capital as a portion of net revenue (rolling 12 months) Working capital divided by net revenue on a 12 months’ rolling basis. The key performance indicator is used to follow working capital’s development in relation to the net revenue.
Profit for the period, margin Profit for the period after taxes, divided by total income. The key performance indicator facilitates a straightforward comparison between the period’s development in relation to the previous period.