Alternative Performance Indicators

In addition to the financial performance measures established by the International Financial Reporting Standards (IFRSs), this report presents certain measures that are derived from although not required by IFRSs (“Non-GAAP Measures”). These performance measures are presented to facilitate understanding of Group operating performance and should not be considered as substitutes for the information required under the IFRSs.

Specifically, the Non-GAAP Measures used are the following:

  • Gross Operating Profit (EBITDA): Gross operating profit is an intermediate economic measure deriving from operating income, but excluding depreciation and amortisation of property, plant and equipment and intangible assets;
  • Non-current assets: this measure is the sum of “property, plant and equipment,” “intangible assets,” “investments in associates and joint ventures” and “other financial assets”;
  • Provisions: this measure is the sum of “provisions for liabilities and charges (current and noncurrent),” “provisions for employee benefits” and “provisions for deferred tax liabilities”;
  • Net working capital: this measure consists of all items not included in the two measures above, in “equity” and “net financial position/net borrowings”;
  • Net financial (liquidity)/debt position: this performance measure is represented by gross financial debt less cash and cash equivalents and other financial receivables. The section “Explanatory notes to the consolidated financial statements” presents a table showing the items of the balance sheet used to calculate such measure.