equities - Drivers of equity returns: dividend yield, change in P/E and dividend (or earnings) growth

In an NBIM paper I read the following:

"... one can break down the total equity return into the dividend yield (the starting valuation), the change in the P/E ratio (the change in valuation) and the growth in dividends (or earnings) per share."

This breakdown is claimed to be an accounting exercise.

I do not see how these three components together form the equity return. In additon, how does this breakdown relates to this formula capturing equity return: $\frac{P_{1}-P_{0} + D}{P_0}$, with $P_1 - P_0$ the stock price increase and $D$ the dividend.

http://www.nbim.no/en/transparency/discussion-notes/2012/economic-growth-and-equity-returns/