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Glossary
A
- Average collection period
- Trade accounts receivable divided by sales, multiplied by 360 (the lower the ratio, the faster customers pay)
C
- Capital Employed
- Interest-bearing invested capital
- Cash flow from operating activity
- Cash receipts/payments, unless caused by investing or financing activities
- Corporate Governance
- Designation in international parlance for company management and company controlling focused on responsible, long-term value creation
- Cost of capital
- Strategically defined minimum return required by capital providers
D
- DAX
- DAX®-Index (German Stock Index), compiled by Deutsche Börse. The index reflects the value development of the 30 largest and strongest-selling stocks, including ThyssenKrupp stock.
- Delisting
- Full or partial withdrawal of a stock corporation from the stock exchange, e.g. withdrawal of listing on a foreign stock exchange
- Downstream activities
- Further processing operations carried out on flat steel to add value, e.g. coating, steel service center operations, production of tailored blanks
E
- EBIT
- Earnings before interest, taxes
- EBITDA
- Earnings before interest, taxes, depreciation and amortization
- EBT
- Earnings before taxes
- Economic value added (EVA)
- Difference between ROCE and cost of capital, multiplied by capital employed. If EVA is positive, returns are higher than the cost of capital
- Emerging markets
- Emerging economic regions, particularly of the Third World
- E-procurement
- Purchasing materials using modern electronic media, particularly the internet
- Equity ratio
- Ratio of balance sheet equity capital to balance sheet total (the higher the ratio, the lower the indebtedness)
F
- Fair disclosure
- Disclosure of all information to all stakeholders of an exchange-listed company at the same time
- First-stage processing
- Initial processing of materials in service centers (e.g. blanking, surface treatment)
- Free cash flow (before dividend)
- Cash flow from operating activity less cash flow from investing activity
G
- Gearing
- Ratio of financial payables to equity capital (the lower the ratio, the higher the share of equity in the interest-bearing capital employed)
- Gross margin (absolute)
- Net sales less cost of goods sold
I
- Internal financing strength
- Ratio of cash flow from operating activity to cash flow from investing activity
- Inventory turnover
- Inventories divided by sales, multiplied by 360 (the lower the ratio, the faster the inventory turnover)
- Investment grade
- A rating is expressed in a combination of alphanumeric symbols and represents a company's credit standing as assessed
by the rating agency. Ratings can be roughly dividend into two categories: "Investment grade" (adequate
protection) and "Non-investment grade" (specultative).
L
- Long Term Management Incentive Plan (LTMI)
- Scheme awarding stock appreciation rights to Group executives as a capital market-oriented compensation element. The value of the stock appreciation rights is linked to the performance of ThyssenKrupp stock and the Dow Jones STOXX.
M
- Mid Term Incentive Plan (MTI)
- Mid-term variable compensation for executive board members through stock rights. Criteria are duties, personal
performance and overall board performance as well as the business situation and prospects of the company compared
with benchmarks
O
- One-stop shopping
- Delivery of all products and services from one source
R
- ROCE
- Return on capital employed
S
- SMC
- Sheet Molded Compound, fiber reinforced plastic material
T
- Tailored blank
- Metal blank comprising individual steel sheets of different grade, gauge and finish which are welded together and are suitable for deep drawing
- ThyssenKrupp best
- Program to improve efficiency in all areas of the company. Best stands for "business excellence in service and technology"
V
- Volatility
- Intensity of price fluctuations of a stock, currency or bulk commodity compared to the market development
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