As described in note 2.1.2.1, the Group applied IFRS 16 “Leases” from September 1, 2019 using the simplified retrospective approach, without restating the comparative periods. Hence, comparative information for the Fiscal 2019 is presented as previously, in application of IAS 17 and the related interpretations.
The Group does not believe the new accounting treatment introduced by IFRS 16 modifies the operating nature of its lease transactions. Accordingly, to ensure the Group’s performance measures continue to best reflect its operating performance, the Group considers repayments of lease liabilities as operating items impacting the Free cash flow, which integrates all leases payments (fixed or variable). Consistently, the lease liabilities are not included in Net debt (treated as operating items).
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FISCAL 2020 | FISCAL 2019 |
|---|---|---|---|
| Gearing ratio | Gearing ratio
Borrowings (1) – operating cash (2) |
Gearing ratio FISCAL 2020 67 % |
Gearing ratio FISCAL 2019 27,0 % |
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Shareholders’ equity and non-controlling interests |
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| Net debt ratio* | Net debt ratio *
Borrowings (1) – operating cash (2) |
Net debt ratio *FISCAL 2020 2,1 |
Net debt ratio *FISCAL 2019 0,8 |
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Underlying EBITDA (underlying operating profit before Interest, Taxes, Depreciation and Amortization) (3) |
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| Debt coverage | Debt coverage
Borrowings |
Debt coverage FISCAL 2020 7.5 years |
Debt coverage FISCAL 2019 3.6 years |
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Operating cash flow |
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| Financial independence | Financial independence
Non-current borrowings |
Financial independence FISCAL 2020 179,4 % |
Financial independence FISCAL 2019 86,8 % |
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Shareholders’ equity and non-controlling interests |
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| Return on equity | Return on equity
Profit attributable to equity holders of the parent |
Return on equity FISCAL 2020 - 10,3 % |
Return on equity FISCAL 2019 17,6 % |
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Equity attributable to equity holders of the parent (before profit for the period) |
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| ROCE (Return on capital employed)* | ROCE (Return on capital employed) *
Underlying operating profit after tax (4) |
ROCE (Return on capital employed) *FISCAL 2020 8,6 % |
ROCE (Return on capital employed) *FISCAL 2019 18,3 % |
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Average capital employed (5) |
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| Interest cover | Interest cover
Operating profit |
Interest cover FISCAL 2020 0,6 |
Interest cover FISCAL 2019 11,6 |
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Net borrowing cost |
* Due to IFRS 16 adoption, the Group adjusted the calculation of its performance measures, in particular EBITDA and ROCE. The Group considers the Underlying EBITDA as determined in (3) gives a better understanding as it follows the internal performance measures used by management. For the same reasons, the ROCE calculation uses the Underlying operating profit after tax and not the operating profit after tax, and divided by the average capital employed. The comparative period for Fiscal 2019 is determined on the same calculation basis.
