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
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.
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.
Inventory value as a % of LTM net revenue	Inventory value divided by the sum of net revenue during the past 12 months (LTM)	A measure that provides an indication of whether there is sufficient inventory on hand to support demand.
Net cash / (Net debt)	Interest bearing liabilities less cash and cash equivalents.	A measure that displays the cash and cash equivalent available after having theoretical settled all interest-bearing liabilities; be it current or non-current.
Net cash / (Net debt), adjusted for leasing debt	Cash and cash equivalents minus interest-bearing liabilities, adjusted for lease liabilities attributable to IFRS 16. A positive figure indicates a net cash position, while a negative figure would indicate net debt.	A figure that shows the ratio between interest-bearing liabilities, adjusted for liabilities attributable to IFRS 16, and interest-bearing assets including cash and cash equivalents. In other words, it reflects the short-term ability to settle liabilities should the need arise.
Net revenue	Revenue from sales of goods during the period, excluding VAT and after returns and discounts.	A measure that demonstrates the company’s core sales performance from ongoing operations.
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.
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.
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.
Operating income	Net revenue and other income.	A measure that demonstrates the total income generated from the company’s operations before operating costs.
Operating margin (EBIT margin)	Operating profit (EBIT) divided by net revenue.	A measure that demonstrates the profitability for the operations.
Operating profit (EBIT)	Operating income less operating costs before net financial income and taxes.	A measure that demonstrates the operational profits.
Organic net revenue growth	Net revenue growth adjusted for net Percent change in the period’s net revenue excluding divested operations with adjustment made for currency effects compared to the previous period.	A measure that demonstrates the growth rate of net revenue for ongoing operations excluding currency effects.
Profit for the period	Profit after taxes for the period.	A measure that demonstrates the company’s total profitability after operating expenses, financial items, and taxes.
Profit for the period, margin %	Profit for the period after taxes, divided by total income.	A measure that demonstrates the profitability after taxes.
Return rate, %	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.