Fiven Annual Report 2020

Appendix to Fiven 2020 Annual report - Alternative Performance Measures (APMs) An APM is defined as a financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework (IFRS). Fiven uses EBITDA and Adjusted EBITDA (EBITDA Adj.) to measure operating perfor- mance at the group and segment level. In particularly management regards EBITDA and Adjusted EBITDA as relevant performance measures at segment level because intangible assets, income tax and finance expenses/ finance income, are managed on a group basis. The APMs presented herein are not measurements of perfor- mance under IFRS or other generally accepted accounting principles and should not be considered as a substitute for measures of performance in accordance with IFRS. Because companies calculate the APMs presented herein differently, Fiven’s presentation of these APMs may not be comparable to similarly titled measures used by other companies. Fiven`s financial APMs defined: EBITDA Earnings Before Interest, Tax, Depreciation and Amortization. EBITDA is a measure of the Group`s operating profit before depreciation and amortization. EBITDA (Adj). EBITDA (adj.) shows the Group’s EBITDA before items that require special explanation, and is defined as reported EBITDA before “Other income and expenses” (OIE). OIE include one-off and non-recurring operating expenses and P&L arising from the acquisition of the Fiven group. The adjusted EBITDA is the Group`s key financial figure, inter- nally and externally. The figure is used to identify and analyze the Group’s operating profitability from normal operations and operating activities, excluding the effects from depreciation and amortization. Fiven Annual Report 2020 88   Alternative Performance Measures