Glossary

Adjusted EBIT
Adjusted EBIT is defined as Earnings before finance result and income tax (EBIT) adjusted for certain non-recurring effects relating to (i) effects on earnings from purchase price allocations, (ii) transaction costs, (iii) separation costs, and (iv) other non-recurring effects.

Adjusted EBITDA
Adjusted EBITDA is defined as Earnings before finance result and income tax (EBIT) adjusted for depreciation and amortization (including non-recurring effects on earnings from purchase price allocations), as well as certain non-recurring effects relating to (i) transaction costs, (ii) separation costs, and (iii) other non-recurring effects.

Adjusted Gross Profit
Adjusted Gross Profit is defined as gross profit adjusted for certain non-recurring effects relating to (i) foreign exchange rate fluctuations, (ii) effects on earnings from purchase price allocations, (iii) separation cost, (iv) other non-recurring effects, and (v) effects from reclassification and other items.

Adjusted Net Income
Adjusted Net Income is defined as consolidated profit/loss adjusted for certain non-recurring effects relating to (i) effects on earnings from purchase price allocations, (ii) transaction costs, (iii) separation costs, (iv) other non-recurring effects, and (v) valuation effects related to changes in the fair value of the embedded derivative included in HENSOLDT’s term loan facility and effects resulting from the execution of early termination options of such term loan facility, in each case also reflecting the respective tax adjustment effect for such non-recurring effect. For the purposes of this tax adjustment, we have assumed that (a) the non-recurring effects correspond to those adjusted for purposes of Adjusted EBIT (in type and volume), (b) a constant group-tax rate of 28.3% applies to tax-deductible positions, and (c) all non-recurring effects are tax deductible but for transaction costs.

Adjusted Pre-Tax Unlevered Free Cash Flow
Adjusted Pre-Tax Unlevered Free Cash Flow is defined as the sum of (i) cash flows from operating activities, adjusted for (a) certain non-recurring effects relating to (α) transaction costs, (β) separation costs, and (γ) other non-recurring effects, (b) interest paid (including, in 2019, interest on lease liabilities), (c) income taxes payments/refunds, (d) share of profit in entities recognized according to the equity method, as well as (e)  disposals of associates, other investments and other non-current investments, and (ii) cash flows from investing activities, adjusted for (a) proceeds from sale of intangible assets and property, plant and equipment, (b) acquisition of associates, other investments and other non-current investments, (c) acquisition of subsidiaries net of cash acquired, (d) disposals of associates, other investments and other non-current investments, as well as (e) other.

Order Intake
Order Intake is recorded at the date where a corresponding customer contract becomes effective and enforceable in accordance with the terms and conditions of such contract. Depending on the terms and conditions of the contract, this may either be (i) upon signature of the contract or (ii) at a specific future date following fulfilment of specific conditions.

Order Backlog (soft/firm)
Order Backlog is defined as the value of our order book at a respective reporting date, keeping record of customer orders starting from the opening stock and taking into account revenue and adjustments for the respective reporting period, and ending with the final stock.

Firm Order Backlog is equivalent to Order Backlog. Soft Order Backlog additionally takes into account expected order intake volume (given recent budget approvals, partial budget approvals, budget committee endorsements, and pricing incentives).