Schindler worldwide

Non-GAAP measures definition in Schindler reporting

The financial information contained in the reporting includes certain non-GAAP measures that are not as defined by IFRS. They are used by management for the purpose of defining targets and measuring the Group’s performance. These non-GAAP measures may not be comparable to similar measures at other companies and should not be viewed as a substitute for IFRS measures.

Non-GAAP measures	Definition
Number of employees	The number of employees is defined as full-time equivalents (FTE).
Order intake	Order intake is defined as the total value of orders received in the reporting period for all product lines, new installations, modernization, maintenance, and repairs.
Order backlog	Order backlog is defined as the value of all unsatisfied performance obligations from new installation, modernization and repair customer contracts. Maintenance contracts are not included in the order backlog.
Operating profit (EBIT), adjusted	Operating profit (EBIT), adjusted, is defined as earnings before interest and taxes (EBIT) reported, excluding: Exceptional items Cost related to strategic Group initiatives Restructuring cost Expenses for BuildingMinds Exceptional items comprise revaluation gains or losses, significant gains on sale of property, plant, and equipment, etc. The Top Speed 23 program, launched in 2021, is considered a strategic Group initiative.
Return on equity (RoE)	RoE is defined as net profit divided by average total equity.
Net liquidity	Net liquidity is defined as follows: + Cash and cash equivalents + Current financial assets + Non-current financial assets (excluding the investment in Hyundai Elevator Co. Ltd.) – Current financial debts – Current lease liabilities – Non-current financial debts – Non-current lease liabilities
Net working capital	Net working capital is defined as follows: + Accounts receivable + Income tax receivable + Contract assets + Inventories + Prepaid expenses – Accounts payable – Income tax payable – Contract liabilities – Accrued expenses
Restructuring costs	Restructuring costs are defined as costs related to strategic restructuring measures.
Exceptional items	Exceptional items are defined as significant costs and income which, because of their exceptional nature, cannot be viewed as inherent to the Group’s ongoing performance. They include revaluation gains, disposals of Group companies, and impairments.
Changes in local currencies	Changes in local currencies are defined as impacts calculated using constant exchanges rates. The change is calculated by converting the figures for the current period at the previous year’s average rates and comparing the result with the figures for the previous year.