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 Full-Year Results 2020 and more comprehensively in the Financial Statements 2020.

Financial Statements 2020

Alternative Performance Measures

Sanoma presents certain financial performance measures on a non-IFRS basis as alternative performance measures (APMs). The 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 net sales growth:  Net sales growth adjusted for the impact of acquisitions and divestments 
Items affecting comparability (IACs):  Gains/losses on sale, restructuring or efficiency program expenses and impairments that exceed EUR 1 million 
Operational EBITDA:   Operating profit + depreciation, amortisation and
impairments - IACs
Operational EBIT excl. PPA:  EBIT – items affecting comparability –purchase price allocation (PPA) adjustments and amortisations 
Free cash flow:  Cash flow from operations – capital expenditure 
Net debt:  Interest-bearing liabilities – cash and cash equivalents 
Net debt / Adj. EBITDA:  The adjusted EBITDA 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 
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