Definitions

Advanced trader	A trader which takes on full supplier responsi- bility towards its customers and which has local presence in China.
Basic trader	A trader which typically acts as an outsourced purchasing function.
EMS	Electronics Manufacturing Services. Contract Manufacturer that manufactures and assemblies products for OEM companies.
Factory management	NCAB’s organization in China which focuses on manufacturer relationships and is involved in the manufacturers’ production and quality assurance processes. The team is located in Shenzhen, China.
Gerber file	A file comprising all data regarding design and specifications of a PCB.
Greenfield establishment/ expansion	Where a parent company builds its operations in a foreign country from the ground up.
HMLV (high-mix low-volume)	Orders with high complexity in terms of number of parts and low volumes per order line.
ODM	Original Design Manufacturer. Own product and design, but does not assemble the end-product.
OEM	Original Equipment Manufacturer. Own product, design and assembles the end-product.
PCB	Printed Circuit Boards. Platform for electronic components.
PCB-A	Printed Circuit Board Assembly. A PCB that is mounted with electronic components.
Purchasing power	Being a purchaser that receives favorable terms from, and is prioritized by, manufacturers.
Share of wallet	Share of wallet is the percentage (“share”) of a customer’s expenses (“of wallet”) for a product that goes to the Company selling a product.

Financial definitions

Non-IFRS financial measures	Description	Reason for use of the measure
Order intake	The value of orders received during the period.	Order intake is used by NCAB as a measure for the development of net sales.
Gross profit	Net sales less raw materials and consumables adjusted for translation differences on trade receivables and trade payables.	Gross profit provides an indication of the surplus that is needed to cover fixed and semi-fixed costs in NCAB.
Gross margin, %	Gross profit divided by net sales.	The gross margin provides an indication of the surplus as a percentage of net sales that is needed to cover fixed and semi- fixed costs in NCAB.
EBIT	NCAB’s reported operating profit.	EBIT shows profit generated by operating activities.
EBITA	Operating profit before amortization and impairment of goodwill and acquisition-related intangible assets.	EBITA provides an overall picture of operating earnings.
EBITA margin, %	EBITA in relation to net sales.	This measure is used for the analysis of value creation.
Adjusted EBITA	Operating profit before amortization and impairment of goodwill and acquisition-related intangible assets adjusted for extraordinary items [divided by net sales.]	Adjusted EBITA is adjusted for extraordinary items. NCAB therefore considers that it is a useful performance measure for showing the Company’s operating earnings.
Adjusted EBITA margin, %	Operating profit before amortization and impairment of goodwill and acquisition-related intangible assets adjusted for extraordinary items.	The adjusted EBITA margin is adjusted for extraordinary items. NCAB therefore considers that it is a useful performance measure for comparing the Company’s margin with other companies regardless of whether the business is driven by acquisitions or organic growth.
EBITDA	Operating profit before depreciation, amortization and impairment of property, plant and equipment, and intangible assets.	EBITDA along with EBITA provide an overall picture of operating earnings.
EBITDA margin, %	EBITDA in relation to net sales.	This measure is used for the analysis of value creation.
Adjusted EBITDA	Operating profit before depreciation, amortization and impairment of property, plant and equipment, and intangible assets adjusted for extraordinary items.	Adjusted EBITDA is adjusted for extraordinary items. NCAB therefore considers that it is a useful performance measure for showing the Company’s operating earnings.
Adjusted EBITDA margin, %	Adjusted EBITDA in relation to net sales.	Adjusted EBITDA margin is adjusted for extraordinary items. NCAB therefore considers that it is a useful performance measure for showing the Company’s operating earnings.
Equity/assets ratio, %	Equity and untaxed reserves net of deferred tax, divided by total assets.	NCAB considers that this is a useful measure for showing what portion of total assets is financed by equity. It is used by management to monitor the Group’s long-term financial position.
Net debt	Interest-bearing liabilities less cash and cash equivalents.	Net debt is a measure which shows the Company’s total indebtedness.
Net debt/adjusted EBITDA	Net debt in relation to adjusted EBITDA.	Net debt/adjusted EBITDA is used to analyze NCAB’s financial risk in relation to its indebtedness.
Net working capital	Current assets, excluding cash and cash equivalents less non-interest bearing current liabilities.	This measure shows how much working capital that is tied up in NCAB’s operations and can be put in relation to revenues to understand how efficiently tied up working capital is used.
Cash conversion, %	Adjusted EBITDA, investments in property, plant and equipment, investments in intangible assets and total changes in working capital in relation to adjusted EBITDA.	Cash conversion is used by NCAB to understand how effectively net working capital is used.
Return on equity	Net profit/loss for the past 12 months divided by average equity.	Return on equity is used to analyze the Company’s profitability, based on how much equity is used.
Compound annual growth rate (CAGR)	Compound Annual Growth Rate of operating revenue (operating profit) from 2008-2017 in per- cent (“CAGR for operating revenue 2008-2017, %”). CAGR is calculated as end value divided by start value to the power of one divided by the number of years in the time period minus one.	The performance measure is relevant given that it measures growth under the assumption of a consistent annual rate of growth and thus provides a balanced rate of growth over the specified period.