Formulas of performance indicators

In according with the guidelines on Alternative Performance Indicators which were published by the European Securities and Markets Authority in 2015 and came into force on 3 July 2016, the Company provide definitions and formulas (below) of the company's operating and financial indicators.
The Company's performance and financial indicators are used to evaluate the Company's financial position or status. For these indicators, the Company's investor can obtain additional information to help understand the Company's financial position and strategy.

Dividend yield – dividends attributable to shareholder paid per share for the last financial year divided by the price per share at the end of a financial period.

                            The set value of dividends paid per share for the last financial year
Dividend yield = —————————————————————————————— 
                                      The price per share at the end of a financial period


Dividend yiel ratio is a particularly an important valuation measure for investors seeking regular income. The higher the yield, the higher the payout for the shareholder compared to the price of the share.

 
Book value per share – Group‘s equity divided by the number of shares, excluding Company’s own shares, at the end of a financial period.

                                                                                                The Group's equity
Book value per share = —————————————————————————————————————————
                                        The number of shares, excluding the Company's own shares, at the end of a financial period


The book value per common share indicates the remaining value for shareholder after all assets are liquidated and all liabilities are covered.

 
Price to Book ratio – ratio between the share price at the end of a financial period and book value per share.
                                     
                                          The share price at the end of a financial period
Price to Book ratio = ———————————————————————————
                                                      The book value per share


Price-to-book ratio compares a companies market value to book value by dividing price per share by book value per share. This shows how the valuation of the company is covered by equity.


Dividends/Net profit – ratio between the dividends allocated at the ongoing year for the year before and ongoing year net profit of the Company. 
                                   
                                        The dividends allocated at the ongoing year for the year before
Dividends/Net profit = ——————————————————————————————
                                                          Ongoing year net profit of the Company


The dividend payout ratio is the ratio of the total amount of dividends paid out to shareholders relative to the net income of the company. It is the percentage of earnings paid to shareholders in dividends.

 
Return on Equity (ROE) – ratio between net income and average equity of a financial period, measured in percentage terms. 
                                                     
                                                                                                                   Net income
Return on Equity (ROE) (measured in percentage terms) = ——————————————————
                                                                                                Average equity for a financial period


Return on equity excludes debt in the denominator and compares net profit for the period with total average shareholders’ equity. It measures the rate of return on shareholders’ investment.


• Average equity is an arithmetical average of the beginning equity and ending equity of a financial period.

Average equity = (The beginning equity for the financial period + The ending equity for the financial period) / 2

 
Return on Assets (ROA) – ratio between net income and average total assets of a financial period, measured in percentage terms. 

                                                                                                                           Net income
Return on Assets (ROA) (measured in percentage terms) = ————————————————————
                                                                                                 Average total assets for a financial period


Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets. ROA indicates how efficient a company is using its assets to generate earnings.


Average total equity is an arithmetical average of the beginning total assets and ending total assets of a financial period.

Average total equity = (The beginning total assets of a financial period + The ending total assets of a financial period) / 2

 
Debt ratio – ratio between total liabilities and total assets. 

                        Total liabilities
Debt ratio = ——————————
                          Total assets


The debt ratio is a financial ratio that measures the extent of a company’s leverage. It can be interpreted as the proportion of a company’s assets that are financed by debt.

 
Debt to Equity ratio – ratio between total liabilities and Shareholders’ equity.
                           
                                            Total liabilities
Debt to Equity ratio = ——————————
                                     Shareholders' equity


The debt to Equity ratio is calculated by dividing a company’s total liabilities by its shareholder equity. The ratio is used to evaluate a company's financial leverage.

 
Gearing ratio – ratio between net debt and sum of net debt and equity. Net debt is the difference between borrowings and cash and cash equivalents. 

                                       Net debt
Gearing ratio = ——————————
                             Net debt + equity


Gearing ratio is analysis ratio of a level of net debt compared to equity capital. Lower gearing ratio means greater financial stability. However, borrowings are a way for companies
to leverage their value to increase profits for shareholders.

 
Liquidity ratio – ratio between current assets, including assets classified as held for sale, and current liabilities.

                                  Current assets (including assets classified as held for sale)
Liquidity ratio = ——————————————————————————————
                                                                    Current liabilities


Liquidity ratio is a financial metric used to determine a debtor's ability to pay off current debt obligations without raising external capital.

 
Quick ratio – ratio between current assets (excluding inventories, prepayments and deferred charges and current loans granted) and current liabilities. 
 
                             Current assets (excluding inventories, prepayments and deferred charges and current loans granted)
Quick ratio = ————————————————————————————————————————————————
                                                                    Current liabilities


The quick ratio is an indicator of a company’s short-term liquidity position and measures a company’s ability to meet its short-term obligations with its most liquid assets.

 
Normalized operating profit - operating profit excluding interest income, net gains (losses) from fair value adjustments on investment property and other income adding the re-estimation of provision for the Performance Fee.
                                                  
Normalized operating profit = Operating profit – Interest income – Net gains (losses) from fair value adjustments on investment property – Other income + The re-estimation of provision for the Performance Fee.

Normalized operating profit is measurement of the companies operating profit and allows viewing operating trends and identifying strategies to improve operating performance and assists in comparing performance across reporting periods on a consistent basis by excluding item that are not indicative of the companies core operating performance.

                                                                
Normalized operating profit margin – ratio between normalized operating profit and sales, measured in percentage terms.
 
                                                                                                               Normalized operating profit
Normalized operating profit margin (measured in percentage terms) = —————————————
                                                                                                                                 Sales


Normalized operating profit margin is a operating profit margin excluding item that are not indicative of the companies core operating performance.

 
Pre-tax profit margin – ratio between pre-tax profit and sales, measured in percentage terms.

                                                                                          Pre-tax profit
Pre-tax profit margin (measured in percentage terms) = ————————
                                                                                                Sales


The pretax profit margin is the ratio of a company's pre-tax earnings to its total sales. The higher the pretax profit margin, the more profitable the company.
 
Price earnings ratio (P/E) – share price at the end of a financial period divided by earnings per share (EPS).

                                                    The share price at the end of a financial period
Price earnings ratio (P/E) = ———————————————————————
                                                         Earnings per share (EPS)


To determine the P/E value, one simply must divide the current stock price by the earnings per share (EPS). It is used to compare a company against its own historical record or to compare aggregate markets against one another or over time.
 
Borrowings to value of investment properties – ratio between borrowings and investment properties.

                                                                                    Borrowings
Borrowings to value of investment properties = ———————————
                                                                              Investment properties


This indicator shows the proportion of the investment assets financed by borrowed funds.
 
Interest coverage ratio – ratio calculated as normalized operating profit divided by borrowings' interest expenses. The latter amounted to interest expenses of bank borrowings plus interest expenses of borrowings from related parties.

                                          Normalized operating profit
Interest coverage ratio = ———————————————
                                           Borrowings' interest expenses*


*Borrowings' interest expenses = Interest expenses of bank borrowings + Interest expenses of borrowings from related parties

The purpose of this ratio is to give an indication of the companies general ability to service theinterests of it‘s debts.

 
Bank’s Debt Service Coverage Ratio – ratio between normalized operating profit and bank’s debt service costs. Bank’s debt service costs is during reporting period paid interest, commitment fees according to borrowings' agreements and principal repayments.

                                                                  Normalized operating profit
Bank's Debt Service Coverage Ratio = ——————————————
                                                                  Bank's debt service cost*


*Bank's debt service cost = Interest paid during reporting period, commitment fees according to borrowings' agreements and principal repayments.

The purpose of this ratio is to give an indication of the companies general ability to service its debt.

 
Net operating income is calculated by deducting from revenue premises rent costs (excluding provision for onerous contract), utilities expenses, repair and maintenance expenses, property management and brokerage costs, taxes on property and insurance costs.

Net operating income = Revenue premises rent costs (excluding provision for onerous contract)  Utilities expenses  Repair and maintenance expenses  Property management and brokerage costs  Taxes on property and insurance costs.

Net operating income is a calculation used to analyze the profitability of real estate investments that generate income. Net operating income equals all revenue from the property minus all reasonably necessary operating expenses.
 

Net profit margin – net profit divided by sales, expressed in percentage terms.

                                                                                                Net profit
Net profit margin (measured in percentage terms) = ——————————
                                                                                                     Sales

The net profitability is equal to how much net income or profit is generated as a percentage of revenue. It illustrates how much of each euro in revenue collected by a company translates into profit.

 

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