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2.2 Items affecting comparability
Accounting policies
Exceptional transactions outside the ordinary course of business are treated as items affecting comparability and they have been allocated to divisions. The Group identifies gains and losses on disposal of real estate, shares and business operations, impairment charges and significant restructuring costs as items affecting comparability. Gains on disposal have been presented within other operating income, and losses on disposal within other operating expenses in the income statement. Impairment charges have been presented within depreciation, amortisation and impairment in the income statement.
€ million 2017 2016
Items affecting comparability
Gains on disposal 83.4 4.2
Losses on disposal -1.8 -71.0
Impairment charges -15.0 -30.0
Structural arrangements -38.7 -29.4
Items in operating profit affecting comparability, total 27.9 -126.2
Items in financial items affecting comparability -0.4 -
Items in income taxes affecting comparability 3.8 25.3
Items affecting comparability, total 31.4 -100.9
The most significant items affecting comparability in 2017 were the €49.7 million gain on the divestment of properties in the Baltics, the gain on the divestment of the K-maatalous agricultural business of €12.3 million, the gain on the divestment of the Asko and Sotka furniture trade amounting to €19.0 million, the €14.5 million impairment of goodwill in Russia and the €21.4 million expenses related to the conversion of the Suomen Lähikauppa chains and the transfer of stores to retailers.
In 2016, items affecting comparability included a €69.2 million loss on the disposal of the Russian grocery trade, €30.0 million in impairment charges, €11.4 million in costs related to the conversion of Suomen Lähikauppa’s chains, and €6.9 million in asset transfer taxes on acquisitions included in structural arrangements. Due to the change in the Russian real estate market, the functional currency of the building and home improvement trade’s Russian properties was changed from euro to rouble on 31 December 2016, and as a result, a €15 million impairment charge was allocated to the properties.
€ million 2017 2016
Operating profit, comparable
Operating profit 324.6 146.8
Net of
Items in operating profit affecting comparability 27.9 -126.2
Operating profit, comparable 296.7 272.9
Profit before tax, comparable
Profit before tax 327.6 145.2
Net of
Items in operating profit affecting comparability 27.9 -126.2
Items in financial items affecting comparability -0.4 -
Profit before tax, comparable 300.1 271.4
Net profit, comparable
Profit before tax, comparable 300.1 271.4
Net of
Income tax 58.8 31.4
Items in income tax affecting comparability 3.8 25.3
Net profit, comparable 237.5 214.8
Net profit attributable to owners of the parent, comparable
Net profit, comparable 237.5 214.8
Net profit attributable to non-controlling interests 11.0 15.3
Net profit attributable to owners of the parent, comparable 226.4 199.5
Earnings per share, comparable, €
Net profit attributable to the owners of the parent, comparable 226.4 199.5
Average number of shares, basic, 1,000 pcs 99,426 99,249
Earnings per share, comparable, € 2.28 2.01
Return on capital employed, comparable, %
Operating profit, comparable 296.7 272.9
Capital employed, average 2,427 2,288
Return on capital employed, comparable, % 12.2 11.9
Return on equity, comparable, %
Net profit, comparable 237.5 214.8
Equity, average 2,179 2,184
Return on equity, comparable, % 10.9 9.8
Calculation of performance indicators
Operating profit, comparable
Operating profit +/– items affecting comparability
Earnings per share, comparable, €
Net profit/loss adjusted for items affecting comparability - Non-controlling interests
Average number of shares
Return on capital employed, comparable, %
Comparable operating profit x 100
(Non-current assets + Inventories + Receivables + Other current assets - Non-interest-bearing liabilities) on average for the reporting period
Return on equity, %, comparable
(Profit/loss adjusted for items affecting comparability before tax - Income tax adjusted for the tax effect of items affecting comparability) x 100
Shareholders' equity, average of the beginning and end of the reporting period