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Definitions & Glossary

Financial definitions

Return on equity

Share of net profit for the year attributable to the shareholders in the parent company as a percentage of the average equity attributable to the shareholders in the parent company.

Return on capital employed
Operating income plus interest income as a percentage of the average capital employed.

Gross margin
Gross profit, i.e. net sales less cost of goods sold, divided by net sales.

Equity per share
Equity attributable to the parent company shareholders divided by average number of shares.

Non-recurring items
Profit and loss items that are of a nonrecurring nature in normal business operations. Non-recurring items may, for example, include restructuring costs, impairments and product-related warranties attributable to specific customer commitments. The purpose of specifying these is to be able to demonstrate the trend in the underlying business.

External investments
Investments done at external suppliers that are booked directly against the balance sheet. Capitalization of product development costs are not included.

R&D, %
Total research and development expenditure excl. depreciation divided by net sales.

Cash flow per share
Cash flow from operating activities divided by average number of shares.

Net debt
Cash and cash equivalents plus interestbearing receivables minus interest-bearing liabilities and provisions.

Net debt/equity ratio
Interest-bearing liabilities and provisions minus cash and cash equivalents and interest-bearing receivables divided by equity including non-controlling interests.

Earnings per share
Share of net profit for the year attributable to the parent company shareholders divided by weighted average number of shares.

Net interest income/expense
The economic difference in absolute terms between recognized interest income for financial assets and interest expenses for interest-bearing liabilities and provisions.

Interest coverage ratio
Operating profit excluding non-recurring items plus interest income divided by interest expense.

Operating margin
Operating profit as percentage of net sales for the period.

Adjusted operating margin
Operating profit excluding non-recurring items as percentage of net sales for the period.

Adjusted operating margin excl. investment in new technology
Operating profit excluding product development expenses for new technology and non-recurring items, as percentage of net sales for the period.

Operating profit
Profit from operations before financial items and tax.

Adjusted operating profit
Profit from operations before financial items and tax, adjusted for non-recurring items.

Adjusted operating profit, excluding new technology
Profit from operations before financial items and tax, adjusted for non-recurring items and development expenses for new technology.

Equity/assets ratio
Equity including non-controlling interests as a percentage of total capital.

Capital employed
Total assets less non-interest-bearing liabilities and non-interest-bearing provisions.

Currency-adjusted information
Financial figure converted to the same exchange rate as in the comparative period. The purpose is to show how the business operation would have developed without the impact of changes in exchange rates when consolidating foreign units.

 

Glossary

ABA

Automatic Brake Adjuster

ABS

A system that prevents the wheels from locking during braking. ABS stands for Antilock Braking System.

Air Controls

Haldex product line for products that improve the safety and driving dynamics of the brake system, such as treatment and dehumidifying of compressed air, valves, ABS and EBS.

Aftermarket

The selling of spare parts, training and services to the workshops which repair and service vehicles that have entered service.

EBS
Electronically controlled brake system. EBS acts as a key part of pneumatic brake systems and can monitor and control the brake system. In brake systems without EBS, the braking force on the wheels is the same at all times, while in vehicles with EBS the braking force is distributed 
differently depending on need.

EMB
Electromechanical brakes. These are part of an electronic braking system, i.e. the pneumatic brake system is replaced by an electronic brake system. Electromechanical brakes are currently approved in China, but not in North America and Europe.

FABV
Fast Acting Brake Valve, one of the products in new technology. FABV is a valve that is used in brake systems based on compressed air to reduce braking distance and improve control of the vehicle’s path.

Foundation Brake

Haldex’s product line for brake products for wheel ends such as disc brakes, brake adjusters for drum brakes and acutators.

New technology
New technology means the Scalable Brake System, which includes EMB and FABV. These are developed partly in-house at Haldex and partly via the Haldex joint venture VIE in China.

OEM

Original Equipment Manufacturer, i.e. vehicle manufacturers.

OES

OEM’s service network.

Truck

Heavy goods vehicles and buses.

Trailer

Towed vehicles attached to a tractor (goods vehicle).