Key figures not defined by Swiss GAAP FER

Order intake

"Order intake" refers to receiving or processing a customer's order. It must only be recognized if a binding order or order confirmation is received.

Orders on hand

"Orders on hand" at the end of the period equal orders on hand at the end of the previous period plus order intake of the reporting period minus gross sales of the reported period.

Sales growth and Organic growth

"Sales growth" refers to the growth in sales in comparison to the previous year period.

"Organic growth" refers to the growth in sales adjusted for the impacts from movements in foreign currencies as well as impacts from changes in the scope of consolidation in comparison to the previous year period.

Annual Report        
  Corporation GF Piping Systems GF Casting Solutions GF Machining Solutions
CHF million 2019 2018 2019 2018 2019 2018 2019 2018
Sales actual 3'720 4'572 1'802 1'821 949 1'687 972 1'066
Sales previous year 4'572 4'150 1'821 1'678 1'687 1'482 1'066 992
Sales growth in % -18.6 10.2 -1.0 8.5 -43.7 13.8 -8.8 7.5
Acquisitions in % 0.8 3.3 0.1 0.7 2.6 8.2 - 0.6
Divestments in % -13.8 -1.0 - - -37.5 -2.7 - -
Currency impact in % -2.2 1.4 -2.5 -0.5 -2.7 3.6 -1.4 1.4
Organic growth in % -4.1 6.5 1.3 8.2 -9.7 5.2 -7.5 5.4
Mid-Year Report        
  Corporation GF Piping Systems GF Casting Solutions GF Machining Solutions
CHF million Jan.-June 2019 Jan.-June 2018 Jan.-June 2019 Jan.-June 2018 Jan.-June 2019 Jan.-June 2018 Jan.-June 2019 Jan.-June 2018
Sales actual 1'915 2'396 921 947 521 924 474 525
Sales previous year 2'396 1'992 947 826 924 723 525 444
Sales growth in % -20.1 20.3 -2.7 14.6 -43.6 27.8 -9.7 18.2
Acquisitions in % 1.4 3.5 - 1.2 4.7 7.7 0.2 0.7
Divestments in % -14.7 - - - -38.1 - -  -
Currency impact in % -2.1 4.9 -2.5 2.3 -2.4 8.7 -1.0 3.4
Organic growth in % -5.5 11.9 -0.2 11.1 -11.1 11.3 -9.0 14.2
Gross value added

"Gross value added" includes all operating income less cost of materials and products, changes in inventory, and operating expenses. As the subtotal “Gross value added” is an important key figure to GF, it is reported separately in the income statement.

EBITDA

"EBITDA" corresponds to the operating result (EBIT) before depreciation on tangible fixed assets and amortization on intangible assets.

Annual Report        
  Corporation GF Piping Systems GF Casting Solutions GF Machining Solutions
CHF million 2019 2018 2019 2018 2019 2018 2019 2018
EBIT 235 382 214 217 -24 86 57 88
Depreciation 133 142 47 50 70 73 12 12
Amortization 6 5 3 2 2 1 2 2
EBITDA 374 529 264 269 48 160 71 102
Mid-Year Report        
  Corporation GF Piping Systems GF Casting Solutions GF Machining Solutions
CHF million Jan.-June 2019 Jan.-June 2018 Jan.-June 2019 Jan.-June 2018 Jan.-June 2019 Jan.-June 2018 Jan.-June 2019 Jan.-June 2018
EBIT 139 208 117 115 6 60 24 42
Depreciation 74 72 24 26 42 37 6 6
Amortization 3 2 1 1 1 - 1 1
EBITDA 216 282 142 142 49 97 31 49
One-offs

"One-offs" refer to impacts arising from one-time occurrence of a specific transaction which are not expected to occur again in the future.

Annual Report        
  Corporation GF Piping Systems GF Casting Solutions GF Machining Solutions
CHF million 2019 2018 2019 2018 2019 2018 2019 2018
Loss from deconsolidation GF Casting Solutions Herzogenburg Iron GmbH 9       9      
Loss from relocation of foundry activities from GF Casting Solutions Werdohl GmbH 37       37      
Total one-offs 46       46      
Mid-Year Report        
  Corporation GF Piping Systems GF Casting Solutions GF Machining Solutions
CHF million Jan.-June 2019 Jan.-June 2018 Jan.-June 2019 Jan.-June 2018 Jan.-June 2019 Jan.-June 2018 Jan.-June 2019 Jan.-June 2018
Loss from deconsolidation GF Casting Solutions Herzogenburg Iron GmbH                
Loss from relocation of foundry activities from GF Casting Solutions Werdohl GmbH 14       14      
Total one-offs 14       14      
EBIT before one-offs

"EBIT before one-offs" correspond to the operating result (EBIT) before one-off transactions. It is defined as:

+/- Operating result (EBIT)

+ One-offs

Annual Report        
  Corporation GF Piping Systems GF Casting Solutions GF Machining Solutions
CHF million 2019 2018 2019 2018 2019 2018 2019 2018
EBIT 235 382 214 217 -24 86 57 88
One-offs 46       46      
EBIT before one-offs 281 382 214 217 22 86 57 88
Mid-Year Report        
  Corporation GF Piping Systems GF Casting Solutions GF Machining Solutions
CHF million Jan.-June 2019 Jan.-June 2018 Jan.-June 2019 Jan.-June 2018 Jan.-June 2019 Jan.-June 2018 Jan.-June 2019 Jan.-June 2018
EBIT 139 208 117 115 6 60 24 42
One-offs 14       14      
EBIT before one-offs 153 208 117 115 20 60 24 42
EBIT after taxes

The "EBIT after taxes" corresponds to the operating result (EBIT) after current taxes. It is defined as:

+/– Operating result (EBIT)

– Current taxes 

Annual Report        
  Corporation GF Piping Systems GF Casting Solutions GF Machining Solutions
CHF million 2019 2018 2019 2018 2019 2018 2019 2018
EBIT 235 382 214 217 -24 86 57 88
Current taxes -51 -51 -36 -32 2 -4 -9 -15
EBIT after taxes 184 331 178 185 -22 82 48 73
Mid-Year Report        
  Corporation GF Piping Systems GF Casting Solutions GF Machining Solutions
CHF million Jan.-June 2019 Jan.-June 2018 Jan.-June 2019 Jan.-June 2018 Jan.-June 2019 Jan.-June 2018 Jan.-June 2019 Jan.-June 2018
EBIT 139 208 117 115 6 60 24 42
Current taxes -31 -38 -22 -21 - -4 -4 -7
EBIT after taxes 108 170 95 94 6 56 20 35
EBIT after taxes*) 216 339 189 188 11 111 39 69

*) 12 months annualized

Free cash flow and Free cash flow before acquisitions/divestments

"Free cash flow" consists of cash flow from operating activities together with cash flow from investing activities and is reported separately in the cash flow statement. It is defined as: 

+/- Cash flow from operating activities 

+/- Cash flow from investing activities

"Free cash flow before acquisition/divestments" excludes the cash effective movements arising from acquisitions/divestments. It is defined as:

+/- Free cash flow

+/- Cash flow from acquisitions/divestments

Annnual Report  
  Corporation
CHF million 2019 2018
Cash flow from operating activities 318 397
Cash flow from investing activities -186 -404
Free cash flow 132 -7
Cash flow from acquisitions/divestments -5 -154
Free cash flow before acquisitions/divestments 137 147
Mid-Year Report  
  Corporation
CHF million Jan.-June 2019 Jan.-June 2018
Cash flow from operating activities 10 46
Cash flow from investing activities -71 -243
Free cash flow -61 -197
Cash flow from acquisitions/divestments -3 -142
Free cash flow before acquisitions/divestments -58 -55
Net debt

"Net debt" describes the interest-bearing liabilities minus cash and cash equivalents and marketable securities. It is defined as:

+ Interest-bearing financial liabilities

- Cash and cash equivalents

- Marketable securities

Annual Report  
  Corporation
CHF million 2019 2018
Other financial liabilities 95 126
Bonds 574 574
Loans from pension fund institutions 1 4
Other liabilities 92 76
Interest-bearing financial liabilities 762 780
Cash and cash equivalents 521 533
Marketable securities 9 9
Net debt 232 238
Mid-Year Report  
  Corporation
CHF million Jan.-June 2019 Jan.-June 2018
Other financial liabilities 147 200
Bonds 574 724
Loans from pension fund institutions 22 28
Other liabilities 81 62
Interest-bearing financial liabilities 824 1'014
Cash and cash equivalents 409 528
Marketable securities 11 6
Net debt 404 480
Net debt-to-EBITDA

"Net debt-to-EBITDA" ratio indicates how many years it would take to pay back its debt if "Net debt" and "EBITDA" are held constant. It is defined as:

Net debt divided by EBITDA

Annual Report  
  Corporation
CHF million 2019 2018
Net debt 232 238
EBITDA 374 529
Net debt-to-EBITDA 0.6 0.4
Mid-Year Report  
  Corporation
CHF million Jan.-June 2019 Jan.-June 2018
Net debt 404 480
EBITDA*) 463 538
Net debt-to-EBITDA  0.9 0.9

*) 12 months rolling

Equity ratio

The "Equity ratio" shows how much of the Corporation's assets are funded by equity. It is defined as:

Shareholders' equity in relation to liabilities and shareholders' equity

Annual Report  
  Corporation
CHF million 2019 2018
Equity 1'438 1'428
Liabilities and equity 3'344 3'444
Equity ratio in % 43 41
Mid-Year Report  
  Corporation
CHF million Jan.-June 2019 Jan.-June 2018
Equity 1'396 1'339
Liabilities and equity 3'412 3'858
Equity ratio in % 41 35
Return on equity (ROE)

The "Return on equity" represents the profitability on shareholders' equity. It is defined as: net profit in relation to average shareholders' equity incl. non-controlling interests  

Annual Report  
  Corporation
CHF million 2019 2018
Net profit 172 279
avrg. Equity 1'433 1'399
Return on equity in % 12.0 19.9
Mid-Year Report  
  Corporation
CHF million Jan.-June 2019 Jan.-June 2018
Net profit*) 204 308
avrg. Equity 1'412 1'354
Return on equity in % 14.4 22.8

*) 12 months annualized

Capital expenditures (Capex)

"Capex" measures the addition in property, plant, and equipment.

Net working capital (NWC)

The "Net working capital (NWC)" is the difference between the Corporation's current assets and current liabilities. It is defined as:

+ Inventories

+ Trade accounts receivable

+ Prepayments to creditors

- Accounts payable

- Prepayments from customers

Annual Report  
  Corporation
CHF million 2019 2018
Inventories 751 779
Trade accounts receivable 597 697
Prepayments to creditors 23 22
Accounts payable 466 498
Prepayments from customers 49 74
Net working capital  856 926
Mid-Year Report  
  Corporation
CHF million Jan.-June 2019 Jan.-June 2018
Inventories  830 908
Trade accounts receivable 750 909
Prepayments to creditors 21 25
Accounts payable 481 613
Prepayments from customers 60 63
Net working capital  1'060 1'166
Invested capital (IC)

The "Invested Capital (IC)" is an indicator that measures total capital invested by shareholders, lenders and any other financing sources. It is defined as:

+/- Net working capital 

+ Income taxes receivable 

+ Other accounts receivable 

+ Property, plant, and equipment for own use

+ Intangible assets

- Provisions 

- Current tax liabilities

- Accrued liabilities and deferred income

- Pension benefit obligations

- Other liabilities 

Annual Report  
  Corporation
CHF million 2019 2018
Net working capital 856 926
Income taxes receivable 22 11
Other accounts receivable 76 77
Property, plant, and equipment for own use 1'054 1'046
Intangible assets 34 34
Provisions 155 149
Current tax liabilities 47 57
Accrued liabilities and deferred income 234 253
Pension benefit obligations 50 47
Other liabilities 85 95
Rounding 2  1
Invested capital 1'473 1'494
Mid-Year Report  
  Corporation
CHF million Jan.-June 2019 Jan.-June 2018
Net working capital 1'060 1'166
Income taxes receivable 17 11
Other accounts receivable 82 95
Property, plant, and equipment for own use 1'037 1'201
Intangible assets 35 33
Provisions 147 176
Current tax liabilities 57 67
Accrued liabilities and deferred income 245 281
Pension benefit obligations 49 130
Other liabilities 91 125
Rounding - 1
Invested capital 1'642 1'728
Return on invested capital (ROIC)

The "ROIC" measures the Corporation’s ability to efficiently use invested capital. It is defined as: EBIT after taxes divided by average invested capital multiplied with 100. The average invested capital is calculated by adding the invested capital at the beginning of the period to that at the end of the period and dividing the sum by 2 (based on a rolling 12-months calculation).

Annual Report        
  Corporation GF Piping Systems GF Casting Solutions GF Machining Solutions
CHF million 2019 2018 2019 2018 2019 2018 2019 2018
EBIT after taxes 184 331 178 185 -22 82 48 73
avrg. Invested capital 1'484 1'480 682 679 504 508 261 265
ROIC in % 12.4 22.4 26.1 27.2 -4.4 16.1 18.4 27.5
Mid-Year Report        
  Corporation GF Piping Systems GF Casting Solutions GF Machining Solutions
CHF million Jan.-June 2019 Jan.-June 2018 Jan.-June 2019 Jan.-June 2018 Jan.-June 2019 Jan.-June 2018 Jan.-June 2019 Jan.-June 2018
EBIT after taxes*) 216  339 189 188 11 111 39 69
avrg. Invested capital   1'568  1'600 738 735 540 537 267 279
ROIC in %    13.8 21.2 25.6 25.6 2.0 20.7 14.6 24.7

*) 12 months annualized

Asset turnover

The "Asset turnover" shows how frequently invested capital is turned over during the period under review. It is defined as: sales in relation to average invested capital.

Annual Report  
  Corporation
CHF million 2019 2018
Sales 3'720 4'572
avrg. Invested capital 1'484 1'480
Asset turnover 2.5 3.1
Mid-Year Report  
  Corporation
CHF million Jan.-June 2019 Jan.-June 2018
Sales *) 3'830 4'792
avrg. Invested capital 1'568 1'600
Asset turnover 2.4 3.0

*) 12 months annualized

Research and Development

"Research and Development" refers to innovative activities in developing new services or products, or improving existing services or products.