Fiscal 2020 Universal Registration Document

Looking further out, on the basis that the pandemic will be over by 2021 calendar year end, the Group aims to return to sustained growth and to rapidly increase the underlying operating margin back over the pre-Covid level.

2.1.3.6 Alternative Performance Measure definitions

Blended cost of debt

The blended cost of debt is calculated at period end and is the weighted blended ﬁnancing rate on borrowings (including derivative ﬁnancial instruments and commercial papers) and cash pooling balances at period end.

Financial ratios

Please refer to 3.3.1.

Free cash ﬂow

Please refer to the section entitled Consolidated ﬁnancial position.

Growth excluding currency effect

The currency effect is determined by applying the previous year ’s average exchange rates to the current year ﬁgures except in hyper-inﬂationary economies where all ﬁgures are converted at the latest closing rate for both periods when the impact is signiﬁcant.

As a result, for the calculation of organic growth of the On-site Services activities in Argentina, Peso figures for Fiscal 2020 and Fiscal 2019 have been converted at the exchange rate of 1€ = 87.865 vs 63.975 ARS for Fiscal 2019

Issue volume

Issue volume corresponds to the total face value of service vouchers, cards and digitally delivered services issued by the Group (Beneﬁ ts & Rewards Services) for beneﬁciaries on behalf of clients.

Net debt

Net debt is defined as Group borrowing at the balance sheet date, less operating cash.

Organic growth

Organic growth corresponds to the increase in revenue for a given period (the “current period”) compared to the revenue reported for the same period of the prior ﬁscal year, calculated using the exchange rate for the prior ﬁscal year; and excluding the impact of business acquisitions (or gain of control) and divestments, as follows:

for businesses acquired (or gain of control) during the current period, revenue generated since the acquisition date is excluded from the organic growth calculation;
for businesses acquired (or gain of control) during the prior ﬁscal year, revenue generated during the current period up until the first anniversary date of the acquisition is excluded;
for businesses divested (or loss of control) during the prior ﬁscal year, revenue generated in the comparative period of the prior ﬁscal year until the divestment date is excluded;
for businesses divested (or loss of control) during the current fiscal year, revenue generated in the period commencing 12 months before the divestment date up to the end of the comparative period of the prior ﬁscal year is excluded.
for countries with hyperinflationary economies all figures are converted at the latest closing rate for both periods. As a result, for the calculation of organic growth of the On-site Services activities in Argentina, Peso ﬁgures for Fiscal 2020 and Fiscal 2019 have been converted at the exchange rate of 1€ = 87.865 vs 63.975 ARS for Fiscal 2019.

Underlying Net proﬁt

Underlying Net proﬁ t presents a net income excluding signiﬁcant unusual and/or infrequent elements. Therefore, it corresponds to the Net Income Group share excluding Other Income and Expense and significant non-recurring elements in both Net Financial Expense and Income Tax Expense where relevant.

Underlying Net proﬁt per share

Underlying Net profit per share presents the Underlying net proﬁt divided by the average number of shares.

Underlying operating proﬁt margin

The underlying operating profit margin corresponds to Underlying operating proﬁt divided by revenues.

Underlying operating proﬁt margin at constant rates

The underlying operating profit margin at constant rates corresponds to Underlying operating proﬁ t divided by revenues, calculated by converting 2020 figures at Fiscal 2019 rates, except for countries with hyperinﬂationary economies.