Cloudberry Annual report 2020 142 Alternative performance measures Alternative performance measures The alternative performance measures (abbreviated APMs) that hereby are provided by Cloudberry are a supplement to the financial statements that are prepared in accordance with IFRS. This is based on the Group’s experience that APMs are frequently used by analysts, investors, and other parties for supplement information. The purpose of the APMs, both financial and non- financial, is to provide an enhanced insight to the operations, financing, and future prospect for the Group. Management also uses these measures internally for key performance measures (KPIs). They represent the most important measures to support the strategy goals. The financial APMs are adjusted IFRS measures that are defined, calculated and used in a consistent and transparent manner over the years and across the Group where relevant. Financial APMs should not be considered as a sub- stitute for measures of performance in accordance with IFRS. Cloudberry uses the following APMs Financial APM: EBITDA: Net earnings before interest, tax, depreciation, amortisation & impairments EBIT: Net earnings before interest and tax Net interest-bearing debt (NIBD): Total interest- bearing debt, less cash and cash equivalents Equity ratio: Total equity divided by total assets Non-financial APMs: Marked Capitalisation: Total market value of all outstanding shares. Number of shareholders: Number of shareholders as per 31.12 Power Production & GWh: Power delivered to the grid over the defined time period (typically one year). Units measured in gigawatt-hours (“GWh”). Example A typical 4 Megawatt (MW) turbine produces 3,000 full-load hours during a year. 4 MW x 3,000 hours = 12,000 MWh or 12 GWh. According to the International Energy Agency (www.iea.org ) a European person consume 6 MWh per year. Volue (Wattsight) predicts long-term electricity prices (adjusted for inflation) of EUR 40 - 50 per MWh Under Construction & secured portfolio: At the time of measure, the power output of the secured portfolio (signed agreements). Units measured in megawatt (“MW”). Construction permits: Total power output to be installed in projects with construction permit. Construction permit is at the stage when conces- sion is granted, but before final investment decision. Units measured in MW. Backlog: Projects with estimated total effect to be installed that are exclusive and in a concession application process. Units measured in MW. Direct emissions: Measure in tons of CO 2 equivalent. The use of fossil fuels for transportation or com- bustion in owned, leased or rented assets. It also includes emission from industrial processes. Indirect emissions: Measure in tCO 2 e. Related to purchased energy; electricity and heating/cooling where the organisation has operational control. The electricity emission factors used are based on electricity production mixes from the International Energy Agency’s statistics (IEA Stat). Emissions from value chain activities are a result of the company’s upstream and downstream activities, which are not controlled by the company. Examples are consumption of products, business travel, goods transportation and waste handling. CO 2 reduction: Refers to the reduction of GHG emis- sions relative to baseline emissions from the European electricity mix (EU-27 electricity mix, IEA 2020).