The financial results of SoftwareONE are reported in accordance with International Financial Reporting Standards (IFRS), although the internal and external disclosure of the company’s financial performance focuses on adjusted EBITDA. The adjustments made from IFRS to adjusted EBITDA are related to M&A, integration and IPO-related costs that are not indicative of the underlying performance of the business nor of its future growth potential.
SoftwareONE has defined a set of non-IFRS financial measures (Alternative Performance Measures), which reflect the company’s internal approach to analyzing the results and which are disclosed externally. They provide key decision makers at SoftwareONE with the necessary guidance on managing the group and making investment decisions, and serve as a benchmark to recognize if the company is making progress with the implementation of its vision. The company believes that such measures are frequently used by external stakeholders like sell-side analysts, investors and other interested parties in evaluating companies in the same industry.
The results of operations of the acquired Comparex business were consolidated in the group’s consolidated financial statements from the acquisition date on 31 January 2019. As such, unless otherwise indicated, the group’s financial information presented in this report for the 12 months ended 31 December 2019 includes the results of operations of Comparex for the period from 1 February 2019 to 31 December 2019. To ensure better comparability between the periods, some key performance indicators are also presented on a like-for-like basis for 12 months in 2019 and 2018.
Definitions of Alternative Performance Measures used by SoftwareONE and a reconciliation to IFRS are provided at the end of this section.