Glossary

Average collection period: Trade accounts receivable divided by sales, multiplied by 360 (the lower the ratio, the faster customers pay)

Capital employed: Interest-bearing invested capital
Operating cash flows: 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
Cross selling: Selling additional related products or services to an existing customer

DAX: Deutscher Aktien-Index (German Stock Index), compiled by Deutsche Börse. The index reflects the performance of the 30 largest and strongest-selling German stocks, including ThyssenKrupp stock
Declaration of Conformity: Declaration by executive board and supervisory board in accordance with Art. 161 Stock Corporation Act (AktG) on the implementation of the recommendations of the Government Commission on the German Corporate Governance Code
Dual-phase steel: Steel with a microstructure imparting good formability and high strength

EBIT: Earnings before interest, taxes
EBITDA: Earnings before interest, taxes, depreciation and amortization
EBT: Earnings before taxes
E-procurement: Purchasing materials using modern electronic media, particularly the internet
Equity ratio: Ratio of total equity to balance sheet total (the higher the ratio, the lower the indebtedness)

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): Operating cash flows less cash flows from investing activities

Gearing: Ratio of financial liabilities to total equity (the lower the ratio, the higher the share of total equity in the interest-bearing capital employed)
Gross income: Net sales less cost of sales

Internal financing strength: Ratio of operating cash flows to cash flows from investing activities
International Financial Reporting Standards (IFRS): The standard international accounting rules are intended to make company data more comparable. Under an EU resolution, accounting and reporting at exchange-listed companies must be done in accordance with these rules.
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 alpha-numeric symbols and represents a company's credit standing as assessed by the rating agency. Ratings can be roughly divided into two categories: "Investment grade" (adequate protection) and "Non-investment grade" (speculative).

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

Mid Term Incentive Plan (MTI): Mid-term variable compensation for executive board members and other selected executives through stock rights.

Rating: Ratings are used to assess the future ability of a company to meet its payment obligations on time and in full. They are based on an analysis of quantitative and qualitative factors, including an evaluation of the company's business and financial risk profile.
ROCE: Return on capital employed

Slab: Compact block of crude steel as starting product for sheet or strip
Supply chain management: Integrated planning, control and monitoring of all logistics activities in a supply chain
SWATH: Small Waterplane Area Twin Hull – Type of ship with specially shaped hull that keeps it very stable even in high seas

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"
ThyssenKrupp Value Added (TKVA): Central indicator for value-based management, comparing earnings before taxes and interest with cost of capital

Volatility: Intensity of price fluctuations of a stock, currency or bulk commodity compared to the market development