Financial definitions

BJÖRN BORG

Björn Borg refers to Björn Borg AB or, depending on the context, the group in which Björn Borg AB is the Parent Company (also referred to as “the Group”). “Björn Borg” also refers to the Björn Borg brand or, in rare cases, Björn Borg himself. In cases where “Björn Borg” refers to Björn Borg the person, this is noted.

 

BJÖRN BORG STORES

Björn Borg stores are stores managed by either Björn Borg Retail AB or franchisees and sell only Björn Borg products.

 

BRAND SALES

Estimated total sales of Björn Borg products at the consumer level, excluding VAT, based on reported wholesale sales.

Purpose: Shows the sales trend measured as retail value excluding VAT.

 

DISTRIBUTORS

Refers to the over 25 distributors with agreements with Björn Borg or with one of the external product companies on the use of the Björn Borg trademark and/or sale of Björn Borg products.

 

CAPITAL EMPLOYED

Total assets less non-interest-bearing liabilities and provisions.

Purpose: Capital employed measures capital use and efficiency.

 

COMPARABLE STORE SALES

Sales for own stores that were also open in the previous period.

Purpose: To obtain comparable sales between periods for own stores.

 

E-TAILERS

Retailers that are purely selling online, excluding Björn Borg own e-commerce website.

 

EARNINGS PER SHARE (DEFINED ACCORDING TO IFRS)

Profit after tax in relation to the weighted average number of shares during the period.

Purpose: This indicator is used to assess an investment from an owner’s perspective.

 

EARNINGS PER SHARE AFTER DILUTION (DEFINED ACCORDING TO IFRS)

Earnings per share adjusted for any dilution effect.

Purpose: This indicator is used to assess an investment from an owner’s perspective.

 

EQUITY/ASSETS RATIO

Equity as a percentage of total assets.

Purpose: This indicator shows financial risk, expressed as a share of total restricted equity financed by the owners.

 

FRANCHISEES

Franchisees are companies with franchise agreements with Björn Borg, giving them the right to manage Björn Borg stores.

 

GROSS PROFIT MARGIN

Net sales less cost of goods sold divided by net sales.

Purpose: Gross margin is used to measure operating profitability.

 

GROSS PROFIT MARGIN BEFORE ACQUISITIONS

Net sales less cost of goods sold divided by net sales.

Purpose: Gross margin before acquisitions is used to measure operating profitability adjusted for acquisition effects.

 

GROSS PROFIT MARGIN EXCL. CURRENCY EFFECTS

Gross profit margin calculated by using last year’s currency.

Purpose: To obtain currency neutral gross profit margin.

 

GROUP NET SALES EXCL. CURRENCY EFFECTS

Net sales calculated using year-earlier exchange rates.

Purpose: To obtain comparable and currency neutral net sales.

 

NET DEBT

Liabilities less investments and cash & cash equivalents.

Purpose: Net debt reflects the company’s total debt situation.

 

NET DEBT TO EBITDA RATIO

Liabilities less investments and cash & cash equivalents divided by operating profit before depreciation/amortization.

Purpose: This indicator shows the company’s ability to pay debts.

 

NET FINANCIAL ITEMS

Financial income less financial expenses.

Purpose: Describes the company’s financial activities.

 

NETWORK

The network comprises Group companies included in Björn Borg and product companies, distributors and franchisees that directly or indirectly have contractual relationships with Björn Borg on the use of the Björn Borg trademark and/or sale of Björn Borg products. Independent retailers that are not franchisees are not part of the network.

 

OPERATING EXPENSES

Operating expenses excluding goods for resale, i.e., other external expenses, staff costs, depreciation, amortization and other operating expenses.

 

OPERATING EXPENSES EXCL. CURRENCY EFFECTS

Operating expenses calculated by using last year’s currency.

Purpose: To obtain currency neutral operating expenses.

 

OPERATING MARGIN

Operating profit as a percentage of net sales.

Purpose: The operating margin is used to measure operating profitability.

 

OPERATING PROFIT

Profit before tax plus net financial items.

Purpose: This indicator facilitates profitability comparisons regardless of the company’s tax rate and independent of its financing structure.

 

PRODUCT COMPANIES

Product companies are the Group companies Björn Borg Clothing AB as well as the external licensees Frameworks AB, Libro Gruppen AB, Sky Brands and Trend Design Group, which have agreements with Björn Borg on the use of the Björn Borg trademark in the development, design and manufacture of Björn Borg products.

 

PROFIT MARGIN

Profit before tax as a percentage of net sales.

Purpose: Profit margin shows the company’s profit in relation to its sales.

 

RETAILERS

Retailers of Björn Borg products, including department stores, retail chains and independent merchants, as well as Group-owned or franchised Björn Borg stores and factory outlets.

 

RETURN ON CAPITAL EMPLOYED

Profit before tax (per rolling 12-month period) plus financial expenses as a percentage of average capital employed.

Purpose: This indicator is the key measure to quantify the return on the capital used in operations.

 

RETURN ON EQUITY

Profit for the period/year attributable to the Parent Company’s shareholders (for rolling 12 months) according to the income statement as a percentage of average equity. Average equity is calculated by adding equity at January 1 to equity at December 31 and dividing by two.

Purpose: This indicator is used to show, from an ownership perspective, the return generated on the owners’ invested capital.

 

SEK Swedish krona

USD US dollar

HKD Hong Kong dollar

EUR Euro