Financial Report – Consolidated financial statements
Alternative performance measures
In this Annual Report, Zehnder Group reports financial key figures that are not defined according to Swiss GAAP FER. These alternative performance measures are intended to aid the management team as well as analysts and investors in forming a clearer understanding of the Group’s performance.
Two additional alternative performance measures have been disclosed to improve the comparability of the previous year’s financial performance: EBITDA adjusted and EBIT adjusted. These alternative performance measures were introduced this year, because, unlike in the previous years, the result in 2024 is heavily impacted by one-off effects like the divestment of the Climate Ceiling Solution business, measures related to China, and to the adaptions to the European radiator production footprint. These alternative performance measures were deemed more helpful as they remove exceptional and substantial business operations, and their exclusion is relevant to the assessment of the overall year-to-year business performance.
The following definitions and calculation bases of Zehnder Group may differ from those employed by other companies.
Alternative performance measure | Definition | Calculation basis/reconciliation EUR million | 2024 | 2023 | |
Organic sales growth | Organic sales growth measures the growth that the Group is able to achieve on its own. Organic sales equate to sales that have been adjusted for acquisition effects and which took place at constant exchange rates. | Sales | 705.8 | 762.1 | |
Currency effects | –0.5 | 10.1 | |||
Acquisition effects | –8.4 | –12.7 | |||
Organic sales | 696.9 | 759.6 | |||
Organic sales growth/(decline) in % | –8.7 | –6.5 | |||
EBITDA | Earnings before interest, taxes, depreciation and amortisation (EBITDA) is a key figure used to measure the performance of the Group. | Operating result (EBIT) | 14.1 | 60.2 | |
Depreciation of property, plant and equipment | 38.6 | 23.6 | |||
Amortisation of intangible assets | 2.5 | 1.0 | |||
EBITDA | 55.3 | 84.8 | |||
EBITDA adjusted | Earnings before interest, taxes, depreciation and amortisation (EBITDA) adjusted for significant exceptional one-off effects. | Operating result (EBIT) | 14.1 | 60.2 | |
Depreciation of property, plant and equipment | 38.6 | 23.6 | |||
Amortisation of intangible assets | 2.5 | 1.0 | |||
One-off effects (excluding impairments) | 21.7 | 2.8 | |||
EBITDA adjusted | 77.0 | 87.6 | |||
EBIT adjusted | Earnings before interest and taxes (EBIT) adjusted for significant exceptional one-off effects. | Operating result (EBIT) | 14.1 | 60.2 | |
One-off effects | 35.9 | 2.8 | |||
EBIT adjusted | 50.1 | 63.0 | |||
ROCE | The return on capital employed (ROCE) measures the profitability and efficiency of the Group’s capital utilisation. The net operating profit after tax (NOPAT) is based on the adjusted EBIT and compared with the capital employed (CE). | Total assets | 476.7 | 516.8 | |
less liquid assets and market securities | –56.7 | –77.2 | |||
Total liabilities | –235.2 | –169.5 | |||
less total financial liabilities | 68.6 | 6.4 | |||
Capital employed (CE) | 253.3 | 276.6 | |||
EBIT adjusted | 50.1 | 63.0 | |||
Expected tax rate | 22.5% | 21.8% | |||
Expected income taxes on EBIT adjusted | –11.3 | –13.7 | |||
Net operating profit after tax (NOPAT) | 39.0 | 49.5 | |||
ROCE in % | 15.4 | 17.9 | |||
Net liquidity/(net debt) | Net liquidity or net debt is a key figure used to measure the Group’s financial liquidity or debt. | Liquid assets | 56.7 | 77.2 | |
Short-term financial liabilities | –4.3 | –1.7 | |||
Long-term financial liabilities | –64.2 | –4.7 | |||
Net liquidity/(net debt) | –11.8 | 70.8 |