Sanoma Group prepares its Interim Reports in accordance with IAS 34 ‘Interim Financial Reporting’ while adhering to related IFRS standards and interpretations applicable within the EU on 31 December 2020. Accounting policies and definitions of key indicators are available in the Financial Statements 2023.

Alternative Performance Measures

Sanoma presents certain financial performance measures on a non-IFRS basis as alternative performance measures (APMs). Sanoma considers that these alternative perfomance measures provide useful and relevant supplemental information to the management and investors on Sanoma's financial performance. Certain APMs exclude certain non-operational or non-cash valuation items affecting comparability (IACs) and are provided to reflect the underlying business performance and to enhance comparability between reporting periods. The APMs should not be considered as a substitute for performance measures in accordance with IFRS.

APMs used by Sanoma
Comparable (or organic) net sales (growth):  Net sales (growth) adjusted for the impact of acquisitions and divestments 
Items affecting comparability (IACs):  Gains/losses on sale, restructuring (including transaction and integration costs of acquisitions) or efficiency program expenses and impairments that exceed EUR 1 million 
Operational EBITDA:   Operating profit + depreciation, amortisation and
impairments - IACs
Purchase price allocation adjustments and amortisations (PPAs) Purchase price allocation amortisations and cost impact of the inventory fair value adjustments
Operational EBIT excl. PPA:  EBIT – items affecting comparability – purchase price allocation adjustments and amortisations (PPAs)
Equity ratio, % Equity total / (Balance sheet total advances received) x 100
Free cash flow:  Cash flow from operations – capital expenditure 
Free cash flow / share Free cash flow / Weighted average number of shares on the market
Net debt:  Interest-bearing liabilities (short or long-term liabilities which have separately determined interest cost) – cash and cash equivalents 
Net debt / Adj. EBITDA:  The adjusted EBITDA used in this ratio is the 12-month rolling operational EBITDA, where acquired operations are included and divested operations excluded, and where programming rights and prepublication rights have been raised above EBITDA on cash flow basis 
Net financial items Financial income – financial expenses
EPS (Result for the period attributable to the equity holders of the Parent Company – IACs – tax effect of IACs – non-controlling interests' share of IACs) / Weighted average number of shares on the market
Operational EPS:  (Result for the period attributable to the equity holders of the parent company – items affecting comparability) / Weighted average number of shares on the market