Definitions

Concept and key ratios.

Acquisitions and other investments
Investments in goodwill and fair-value adjustments, shares, and participations, and asset retirement obligations.

ARPU
Average monthly revenue per user.

Billed revenues
Voice, messaging, data and content.

CAPEX
An abbreviation of "Capital Expenditure". Investments in intangible and tangible non-current assets but excluding goodwill, fair-value adjustments and asset retirement obligations.

Capital employed
Total assets less non-interest-bearing liabilities and non-interest-bearing provisions, and the (proposed) dividend.

Churn
The number of lost subscriptions (postpaid and prepaid) expressed as a percentage of the average number of subscriptions (postpaid and prepaid).

Earnings and equity per share
Earnings per share are based on the weighted average number of shares before and after dilution with potential ordinary shares, while equity per share is based on the number of shares at the end of the period. Earnings equal net income attributable to owners of the parent and equity is equity attributable to owners of the parent.

EBITDA
An abbreviation of "Earnings Before Interest, Tax, Depreciation and Amortization." Equals operating income before amortization, depreciation and impairment losses, and before income from associated companies and joint ventures.

EBITDA margin
EBITDA excluding non-recurring items expressed as a percentage of net sales.

Equity/assets ratio
Adjusted equity and equity attributable to non-controlling interests expressed as a percentage of total assets.

Free cash flow
Cash flow from operating activities less cash CAPEX.

Interest coverage ratio
Operating income plus financial revenues divided by financial expenses.

Net debt
Interest-bearing liabilities less derivatives recognized as financial assets (and hedging long-term and short term borrowings) and related credit support annex (CSA), less short term investments, long-term bonds available for sale and cash/cash equivalents.

Net debt/equity ratio
Net debt expressed as a percentage of adjusted equity and equity attributable to non-controlling interests.

Net interest-bearing liability
Interest-bearing liabilities and provisions less interest-bearing assets but including investments in associated companies and joint ventures.

Non-recurring items
Non-recurring items comprise capital gains and losses, impairment losses, restructuring programs (costs for phasing out operations and personnel redundancy
costs) or other costs with the character of not being part of normal daily operations.

Operating capital
Non-interest-bearing assets less non-interest-bearing liabilities, including the (proposed) dividend, and non-interest-bearing provisions.

Operating margin (EBIT margin)
Operating income expressed as a percentage of net sales.

Pay-out ratio
Dividend per share divided by basic earnings per share.

Return on assets
Operating income plus financial revenues expressed as a percentage of the average total assets.

Return on capital employed
Operating income plus financial revenues expressed as a percentage of average capital employed.

Return on equity
Net income attributable to owners of the parent expressed as a percentage of average adjusted equity.

Return on sales
Net income expressed as a percentage of net sales.

Self-financing rate
Cash flow from operating activities divided by gross investments.

Service revenues (external)
External net sales excluding equipment sales.

Total asset turnover
Net sales divided by the average total assets.

Turnover of capital employed
Net sales divided by the average capital employed.

Notation conventions
In conformance with international standards, this report applies the following currency notations:

  • SEK Swedish krona
  • AZN Azerbaijan manat
  • CZK Czech koruna
  • DKK Danish krone
  • EUR European euro
  • GBP Pound sterling
  • GEL Georgian lari
  • HKD Hong Kong dollar
  • JPY Japanese yen
  • KZT Kazakhstan tenge
  • LTL Lithuanian litas
  • LVL Laatvian lats
  • NOK Norwegian krone
  • MDL Moldovan leu
  • RUB Russian ruble
  • TJS Tajikistan somoni
  • TRY Turkish lira
  • USD U.S. dollar
  • UZS Uzbekistan som