Tornos : Non-GAAP Financial Measures (1H 2021)

Non-GAAP Financial Measures

Tornos supplements its Swiss GAAP FER results with non-GAAP financial measures. The main non-GAAP financial measures are EBIT, EBITDA, Net cash, Free Cash flow and Net Working Capital.

EBIT and EBITDA

Tornos defines EBITDA as operating result plus non-operating result excluding depreciation of tangible fixed assets and amortization of intangible assets and EBIT as operating result plus non-operating result. Tornos believes that EBITDA and EBIT are important performance indicators because they provide a measure of comparability to other companies with different capital or legal structures, which accordingly may be subject to disparate interest rates and effective tax rates, and to companies which may incur different depreciation and amortization expenses, or impairment charges related to fixed and intangible assets.

	1st HY 2021	1st HY 2020
In CHF 1 000	1.1.-30.6.2021	1.1.-30.6.2020
Operating result	10 466	-16 437
Non-operating result	643	3 348
EBIT	11 109	-13 089
Depreciation and amortization	2 073	2 101
EBITDA	13 182	-10 988

Free Cash flow

Tornos defines Free Cash flow as cash flow from operating activities plus cash flow from investing activities. Tornos believes that Free Cash flow is an important information because it represents the cash Tornos is generating after required investment in its asset base are done and therefore can be used to cover financing requirements or be distributed to shareholders.

Net Working Capital

Tornos defines Net Working Capital as the total of current assets and liabilities without taking into consideration cash and cash equivalents, interest bearing borrowings and provisions. Tornos considers that Net Working Capital is an important information since it shows whether Tornos has sufficient current assets to meet its current liabilities. Changes in Net Working Capital shown in the Consolidated Statement of Cash flows only include cash-effective changes.

In CHF 1 000	30.6.2021	31.12.2020
Trade receivables	20 255	12 244
Inventories, net	66 775	69 375
Other short-term receivables	2 441	2 276
Prepayments and accrued income	2 518	1 572
Trade payables	-14 136	-8 722
Current tax liabilities	-269	-43
Other liabilities	-12 689	-9 463
Accrued liabilities and deferred income	-8 380	-5 673
Net Working Capital	56 515	61 566

Net cash

Tornos defines Net cash as cash and cash equivalents less the interest bearing borrowing (current and non-current). Tornos believes that Net cash is an important information because it presents the available cash and takes in consideration of the shareholder loan.

In CHF 1 000	30.6.2021	31.12.2020
Cash and cash equivalents	20 976	17 329
Interest bearing borrowings (current)	-5 495	-2 195
Interest bearing borrowings (non-current)	-80	-20 126
Net cash	15 401	-4 992