Gabriel_Annual_Report_2024-25 - Flipbook - Page 101
CONTENTS // CONSOLIDATED FINANCIAL STATEMENTS AND PARENT COMPANY FINANCIAL STATEMENTS // NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AND PARENT COMPANY FINANCIAL STATEMENTS
Financial liabilities
Financial liabilities are recognised at the date of borrowing, as the net proceeds received, less transaction costs paid. In subsequent
periods, the financial liabilities are measured at amortised cost, corresponding to the capitalised value using the effective interest rate.
The difference between the proceeds and the nominal value is accordingly recognised in the income statement as finance costs over
the term of the loan. Financial liabilities include the capitalised residual obligation on finance leases measured at amortised cost.
Cash flows from financing activities comprise the raising of loans, repayment of interest-bearing debt, acquisition of treasury shares
and payment of dividends to shareholders.
The item bank loans/cash and cash equivalents comprises cash and cash equivalents and bank loans (overdraft facilities).
SEGMENTS
Other liabilities are measured at net realisable value.
The segment information was prepared in accordance with the Group's accounting policies and follows the internal management reporting. Segment income and expenses and segment assets and liabilities comprise the items which are directly attributable, or which
can reliably be allocated, to the individual segment.
Leasing
The Group recognises a lease asset and a lease liability on the commencement date of the lease. On initial recognition, the lease asset
is measured at cost, which comprises the value of the lease liability adjusted for any lease payments made at or before commencement, any initial direct costs incurred and an estimate of any costs to be incurred in dismantling and removing the underlying asset or
in restoring the underlying asset or the site on which it is located to a required condition, less any lease incentives received.
The lease asset is subsequently depreciated by the straight-line method over the lease asset’s useful life, unless the lease transfers
ownership of the underlying asset to the Group by the end of the lease term or the cost price of the right-of-use asset reflects that the
Group will exercise an option to purchase. In that case the lease asset is depreciated over the underlying asset’s useful life, which is
determined on the same basis as property and equipment.
In addition, the lease asset is reduced regularly by any impairment losses and adjusted by certain remeasurements of the lease
liability.
The lease liability is initially measured at the present value of the lease payments that are not payable on commencement, discounted
at the rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. The Group generally uses its incremental borrowing rate as the discount rate.
Addition of non-current assets in the segment comprises non-current assets which are used directly in the segment's operation, including intangible assets and property, plant and equipment.
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New financial reporting regulations
On the date of publication of the consolidated financial statements and parent company financial statements, a number of new or
revised standards and IFRICs are available which have not yet entered into force and are consequently not incorporated into this
report. The new standards and IFRICs will be implemented as they become mandatory and comprise IAS 21, IFRS 9, IFRS 18 and IFRS
19. In 2025/26 Gabriel Holding A/S will initiate an analysis of the effect of implementing IFRS 18 regarding presentation of the consolidated financial statements and parent company financial statements.
Other new standards or IFRICs are not expected to materially influence financial reporting for the Group or the parent company.
The Group determines its incremental borrowing rate by obtaining rates from different external sources of finance and making certain
adjustments to reflect the terms of the lease and the type of leased asset.
Lease payments included in measuring the lease liability comprise the following:
Fixed payments, variable lease payments that depend on an index or a rate measured initially using the index or rate at the commencement date, amounts expected to be payable under a residual value guarantee and the exercise price under a purchase option
if it is reasonably certain that the Group will exercise that option, lease payments in an optional extension period if it is reasonably
certain that the Group will exercise that option, and penalties for early termination of a lease unless it is reasonably certain that the
Group will not terminate it early.
Definitions of financial ratios
Invested capital: Working capital plus property, plant and
equipment and intangible assets, excluding goodwill, less
provisions for liabilities and other non-current operating
liabilities.
Return on equity: Profit after tax as a percentage of
average equity.
Working capital: Current assets less current liabilities,
which are used or necessary for the Group’s operation.
Book value per share at year end: Equity relative to
share capital in percent.
The Group has chosen not to recognise lease assets and lease liabilities for low-value items and short-term leases. The Group recognises lease payments attached to such leases as a cost on a straight-line basis over the lease term.
EBITDA margin: Earnings before depreciation, amortisation
and impairment losses (EBITDA) as a percentage of
net revenue.
Market price at year end: Listed price of the shares on
Nasdaq Copenhagen.
CASH FLOW STATEMENT
EBIT margin: Operating profit (EBIT) as a percentage
of net revenue.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured if there is a change in future
lease payments resulting from a change in an index or a rate, if there is a change in the Group’s estimate of the amount expected to
be payable under a residual value guarantee, if the Group changes its assessment of whether it will exercise a purchase, extension or
termination option, or if in-substance fixed lease payments are revised.
Equity ratio: Equity’s share of total assets.
Price/book value: Market price relative to book value.
The cash flow statement shows the cash flows from operating, investing and financing activities for the year, the year's changes in
cash and cash equivalents, and cash and cash equivalents at the beginning and end of the year.
Cash flows from operating activities are recognised as the share of profit/loss adjusted for non-cash operating items, changes in
working capital and corporation taxes paid.
Cash flows from investing activities comprise payments in connection with acquisitions and disposals of businesses, of activities, of
intangible assets, property, plant and equipment and other non-current assets as well as acquisition and disposal of securities not
classified as cash and cash equivalents.
Return on invested capital (ROIC): Operating profit (EBIT)
as a percentage of average invested capital.
Earnings per share (EPS): Profit after tax divided by
average number of shares.
Earnings per share, diluted (EPS-D): Profit after tax divided
by average number of diluted shares.
Price earnings (PE): Market price relative to earnings
per share.
Price cash flow (PCF): Market price relative to cash flow
per share (excluding treasury shares).
Dividend yield: Yield relative to market price at year end.
Payout ratio: Yield relative to profit after tax.
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