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 equals orders on hand at the end of the previous period, plus the 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 compared to the previous year period.

Mid-Year Report                    
    Corporation   GF Piping Systems   GF Casting Solutions   GF Machining Solutions
CHF million Jan.-June 2021
Jan.-June 2020 Jan.-June 2019 Jan.-June 2018 Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018 Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018 Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018
Sales actual 1'835  1'528 1'915 2'396 983 845 921 947 459 328 521 924 393 355 474 525
Sales previous year 1'528 1'915 2'396 1'992 845 921 947 826 328 521 924 723 355 474 525 444
Sales growth in % 20.1 -20.2 -20.1 20.3 16.3 -8.3 -2.7 14.6 39.9 -37.0 -43.6 27.8 10.7 -25.1 -9.7 18.2
Acquisitions in % 0.7 0.2 1.4 3.5 1.3 0.4   1.2     4.7 7.7     0.2 0.7
Divestments in %   -2.2 -14.7             -8.1 -38.1          
Currency impact in % -0.6 -4.7 -2.1 4.9 -1.4 -5.4 -2.5 2.3 1.7 -3.9 -2.4 8.7 -0.7 -3.9 -1.0 3.4
Organic growth in % 20.0 -14.0 -5.5 11.9 16.4 -3.1 -0.2 11.1 38.3 -27.6 -11.1 11.3 11.4 -21.3 -9.0 14.2
Annual Report        
 
Corporation

GF Piping Systems

GF Casting Solutions

GF Machining Solutions
CHF million 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018
Sales actual 3'184 3'720 4'572 1'708 1'802 1'821 752 949 1'687 725 972 1'066
Sales previous year 3'720 4'572 4'150 1'802 1'821 1'678 949 1'687 1'482 972 1'066 992
Sales growth in % -14.4 -18.6 10.2 -5.2 -1.0 8.5 -20.8 -43.7 13.8 -25.4 -8.8 7.5
Acquisitions in % 0.1 0.8 3.3 0.2 0.1 0.7   2.6 8.2   0.1 0.6
Divestments in % -1.6 -13.8 -1.0       -6.2 -37.5 -2.7      
Currency impact in % -4.7 -2.2 1.4 -5.7 -2.5 -0.5 -3.7 -2.7 3.6 -3.7 -1.4 1.4
Organic growth in % -8.4 -4.1 6.5 0.3 1.3 8.2 -11.9 -9.7 5.2 -21.6 -7.5 5.4
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.

Mid-Year Report                        
    Corporation   GF Piping Systems   GF Casting Solutions   GF Machining Solutions
CHF million Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018 Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018 Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018 Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018
EBIT 141 57 139 208 128 94 117 115 13 -32 6 60 9 1 24 42
Depreciation 65 58 74 72 27 24 24 26 28 25 42 37 6 6 6 6
Amortization 3 3 3 2 2 1 1 1 1 1 1   1 1 1 1
EBITDA 209 118 216 282 157 119 142 142 42 -6 49 97 16 8 31 49
Annual Report        
  Corporation GF Piping Systems GF Casting Solutions GF Machining Solutions
CHF million 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018
EBIT 166 235 382 193 214 217 -34 -24 86 20 57 88
Depreciation 127 133 142 49 47 50 59 70 73 12 12 12
Amortization 6 6 5 3 3 2 1 2 1 2 2 2
EBITDA 299 374 529 245 264 269 26 48 160 34 71 102
One-offs

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

Mid-Year Report                
    Corporation   GF Piping Systems   GF Casting Solutions   GF Machining Solutions
CHF million Jan.-June 2021
Jan.-June 2020

Jan.-June 2019 Jan.-June 2018 Jan.-June 2021
Jan.-June 2020

Jan.-June 2019 Jan.-June 2018 Jan.-June 2021
Jan.-June 2020

Jan.-June 2019 Jan.-June 2018 Jan.-June 2021 Jan.-June 2020
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   7 14             7 14          
Total one-offs   7 14             7 14          
Annual Report        
  Corporation GF Piping Systems GF Casting Solutions GF Machining Solutions
CHF million 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 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 19 37         19 37        
Total one-offs 19 46         19 46        
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

Mid-Year Report                        
    Corporation   GF Piping Systems   GF Casting Solutions   GF Machining Solutions
CHF million Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018 Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018 Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018 Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018
EBIT 141 57 139 208 128 94 117 115 13 -32 6 60 9 1 24 42
One-offs   7 14             7 14          
EBIT before one-offs 141 64 153 208 128 94 117 115 13 -25 20 60 9 1 24 42
Annual Report        
  Corporation GF Piping Systems GF Casting Solutions GF Machining Solutions
CHF million 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018
EBIT 166 235 382 193 214 217 -34 -24 86 20 57 88
One-offs 19 46         19 46        
EBIT before one-offs 185 281 382 193 214 217 -15 22 86 20 57 88
EBIT after taxes

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

+/- Operating result (EBIT)

- Current taxes 

Mid-Year Report                        
      Corporation   GF Piping Systems   GF Casting Solutions   GF Machining Solutions
CHF million Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018 Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018 Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018 Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018
EBIT 141 57 139 208 128 94 117 115 13 -32 6 60 9 1 24 42
Current taxes -32 -20 -31 -38 -27 -21 -22 -21 -3 10   -4 -3   -4 -7
EBIT after taxes 109 38 108 170 101 73 95 94 10 -22 6 56 6 1 20 35
EBIT after taxes*) 218 75
216 339 203 147 189 188 20 -44 11 111 13 2 39 69
Annual Report        
  Corporation GF Piping Systems GF Casting Solutions GF Machining Solutions
CHF million 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018
EBIT 166 235 382 193 214 217 -34 -24 86 20 57 88
Current taxes -37 -51 -51 -39 -36 -32 8 2 -4 -2 -9 -15
EBIT after taxes 129 184 331 153 178 185 -26 -22 82 18 48 73

*) 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

Mid-Year Report      
      Corporation
CHF million Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018
Cash flow from operating activities 59 -3 10 46
Cash flow from investing activities -91 -76 -71 -243
Free cash flow -32 -79 -61 -197
Cash flow from acquisitions/divestments -30 -6 -3 -142
Free cash flow before acquisitions/divestments -2 -73 -58 -55
Annual Report  
  Corporation
CHF million 2020 2019 2018
Cash flow from operating activities 342 318 397
Cash flow from investing activities -118 -186 -404
Free cash flow 224 132 -7
Cash flow from acquisitions/divestments -6 -5 -154
Free cash flow before acquisitions/divestments 230 137 147
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

Mid-Year Report      
      Corporation
CHF million Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018
Financial liabilities 83 515 147 200
Bonds 775 574 574 724
Loans from pension fund institutions 2 2 22 28
Other liabilities 124 102 81 62
Interest-bearing financial liabilities 984 1'193 824 1'014
Cash and cash equivalents 770 3 409 528
Marketable securities 8 770 11 6
Net debt 206 420 404 480
Annual Report  
  Corporation
CHF million 2020 2019 2018
Financial liabilities 73 95 126
Bonds 775 574 574
Loans from pension fund institutions 3 1 4
Other liabilities 107 92 76
Interest-bearing financial liabilities 958 762 780
Cash and cash equivalents 834 521 533
Marketable securities 7 9 9
Net debt 117 232 238
Net debt-to-EBITDA

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

Net debt divided by EBITDA

Mid-Year Report      
      Corporation
CHF million Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018
Net debt 206 420 404 480
EBITDA*) 390 276 463 538
Net debt-to-EBITDA  0.5 1.5 0.9 0.9
Annual Report  
  Corporation
CHF million 2020 2019 2018
Net debt 117 232 238
EBITDA 299 374 529
Net debt-to-EBITDA 0.4 0.6 0.4

*) 12 months rolling

Equity ratio

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

Equity in relation to liabilities and equity

Mid-Year Report      
      Corporation
CHF million Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018
Equity 1'441 1'328 1'396 1'339
Liabilities and equity 3'657 3'596 3'412 3'858
Equity ratio in % 39 37 41 35
Annual Report  
  Corporation
CHF million 2020 2019 2018
Equity 1'389 1'438 1'428
Liabilities and equity 3'445 3'344 3'444
Equity ratio in % 40 43 41
Return on equity (ROE)

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

Mid-Year Report      
    Corporation
CHF million Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018
Net profit*) 206 62 204 308
avrg. Equity 1'415 1'383 1'412 1'354
Return on equity in % 14.6 4.5 14.4 22.8
Annual Report  
  Corporation
CHF million 2020 2019 2018
Net profit 112 172 279
avrg. Equity 1'414 1'433 1'399
Return on equity in % 7.9 12.0 19.9

*) 12 months annualized

Capital expenditures (Capex)

"Capital expenditures (Capex)" measures the addition in property, plant, and equipment.

Net working capital (NWC)

"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

- Trade accounts payable

- Prepayments from customers

Mid-Year Report      
    Corporation
CHF million Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018
Inventories 718 746  830 908
Trade accounts receivable 705 616 750 909
Prepayments to creditors 18 16 21 25
Accounts payable 517 389 481 613
Prepayments from customers 66 51 60 63
Net working capital 858 938  1'060 1'166
Annual Report  
  Corporation
CHF million 2020 2019 2018
Inventories 638 751 779
Trade accounts receivable 550 597 697
Prepayments to creditors 14 23 22
Accounts payable 445 466 498
Prepayments from customers 50 49 74
Net working capital  707 856 926
Invested capital (IC)

"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 

Mid-Year Report      
      Corporation
CHF million Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018
Net working capital 858 938 1'060 1'166
Income taxes receivable 21 21 17 11
Other accounts receivable 86 94 82 95
Property, plant, and equipment for own use 1'038 1'040 1'037 1'201
Intangible assets 39 33 35 33
Provisions 133 148 147 176
Current tax liabilities 55 51 57 67
Accrued liabilities and deferred income 266 231 245 281
Pension benefit obligations 54 53 49 130
Other liabilities 94 98 91 125
Rounding       1
Invested capital (IC) 1'440 1'545 1'642 1'728
Annual Report  
  Corporation
CHF million 2020 2019 2018
Net working capital 707 856 926
Income taxes receivable 22 22 11
Other accounts receivable 77 76 77
Property, plant, and equipment for own use 1'026 1'054 1'046
Intangible assets 36 34 34
Provisions 140 155 149
Current tax liabilities 48 47 57
Accrued liabilities and deferred income 239 234 253
Pension benefit obligations 52 50 47
Other liabilities 75 85 95
Rounding -1 2  1
Invested capital (IC) 1'313 1'473 1'494
Return on invested capital (ROIC)

"Return on invested capital (ROIC)" measures the Corporation’s ability to efficiently use invested capital. It is defined as: EBIT after taxes divided by average invested capital multiplied by 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.

Mid-Year Report                        
    Corporation   GF Piping Systems   GF Casting Solutions   GF Machining Solutions
CHF million Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018 Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018 Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018 Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018
EBIT after taxes*) 218 75 216  339 203 147 189 188 20 -44 11 111 13 1 39 69
avrg. Invested capital 1'377 1'509   1'568  1'600 643 705 738 735 468 485 540 537 192 252 267 279
ROIC in % 15.8 5.0    13.8 21.2 31.6 20.8 25.6 25.6 4.4 -9.0 2.0 20.7 6.6 0.5 14.6 24.7
Annual Report        
  Corporation GF Piping Systems GF Casting Solutions GF Machining Solutions
CHF million 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018
EBIT after taxes 129 184 331 153 178 185 -26 -22 82 18 48 73
avrg. Invested capital 1'393 1'484 1'480 635 682 679 463 504 508 227 261 265
ROIC in % 9.3 12.4 22.4 24.2 26.1 27.2 -5.7 -4.4 16.1 7.8 18.4 27.5

*) 12 months annualized

Asset turnover

"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.

Mid-Year Report      
    Corporation
CHF million Jan.-June 2021 Jan.-June 2020 Jan.-June 2019 Jan.-June 2018
Sales *) 3'670 3'056 3'830 4'792
avrg. Invested capital 1'377 1'509 1'568 1'600
Asset turnover 2.7 2.0 2.4 3.0
Annual Report  
  Corporation
CHF million 2020 2019 2018
Sales 3'184 3'720 4'572
avrg. Invested capital 1'393 1'484 1'480
Asset turnover 2.3 2.5 3.1

*) 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.