Additional paid-in capital | capital paid in over and above the reserves set up according to law and the statutes and formed from reinvested profits
Associated company | an enterprise in which the investor has significant influence and which is neither a subsidiary nor a joint venture of the investor Balance sheet total | sum of the assets or the sum of shareholders’ equity and outside capital Cash and cash equivalents | all cash resources and assets that can be swiftly converted into cash, i.e., liquid funds and available-for-sale financial assets Cash flow | inflows and outflows of cash and cash equivalents Cash flow from financing activities | covers all gross cash receipts and cash payments that result in changes in the size and composition of the equity capital and the borrowings of an enterprise
Cash flow from investing activities | covers all gross cash receipts and cash payments that relate to the acquisition and disposal of longterm assets and other investments not included in cash equivalents Cash flow from operating activities | primarily covers sales-related activities including all activities that cannot be lassified as investing or financing activities Consolidated at equity | associated companies that are evaluated using the equity method
Consolidated income | income for the period less minority interests Control | is the power to govern the financial and operating policies of an enterprise so as to obtain benefits from its activities Customer sales | sales with customers outside the Group as opposed to intra-Group sales
DAX 30 | tracks the performance of the 30 German blue chips in the Prime Standard segment that are largest in terms of trading volume and market capitalization
Earnings from ordinary activities | earnings prior to extraordinary expenses and income as well as taxes EBIT | earnings before interest and taxes EBITDA | earnings before interest and taxes, depreciation and amortization Equity method | valuation method used for interests held in associated companies based on the proportion of the stake of the company’s shareholders’ equity held and the proportionate share in that company’s net income for the year Equity ratio | ratio of equity capital to total assets Fair value | the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction. In this sense, fair value can be understood as market or current value
Financial derivatives | financial instruments, such as options, futures, interest swaps and foreign-exchange swaps that generate rights and obligations, such that the financial risks of the underlying original financial instruments can be transferred between the parties to the contract as separate rights and obligations Fully-consolidated companies | companies that are fully incorporated into the consolidated accounts with all their assets, liabilities, expenses and earnings. When calculating consolidated net income for the year any minority nterests are deducted from the net income for the year Goodwill | entire sum a buyer is willing to pay when acquiring an enterprise, factoring in future earnings expectations, over and above the value of the individual assets of the enterprise and less debts IFRS (International Financial Reporting Standards) | The IFRS are issued by an independent international ccounting board the IASB, appointed by professional associations interested in accounting matters, with the goal of creating transparent and comparable accounting standards that can be used by enterprises and organizations worldwide Income for the period | after-tax profits
Indirect reduction in sales revenues | all reductions in earnings which cannot be directly attributed to customer invoices, e.g., rebates and cash discounts
International Accounting Standard (IAS) | accounting methods stipulated by the International Accounting Standards Committee and based on US and British accounting principles Intra-Group sales | sales generated through business with a Group member, as opposed to customer sales
Material interest | the possibility to influence the financial and corporate decision-making of a company in which an interest is held, without being able to control these decisions (interest of 20 – 50 %) MDAX | contains the 50 Prime Standard listed companies from classic sectors of industry that follow on from the 30 listed in the DAX stock index in terms of trading volume and market capitalization Net income for the period | net income for the reporting period Net return on sales | ratio of income for the period to sales revenues Prepaid expenses/income or deferred charges | payments made or received in advance during the reporting period but which relate to a time after the period in question Return on equity | ratio of net income for the year to equity capital Sales revenues | gross sales revenues minus direct and indirect reductions of proceeds Scope of consolidation | those companies in a group included in the consolidated accounts Segment profit | measure of a segment’s profitability. It is the product of segment income less segment expense Segment reporting | disclosure of information on the assets, financial and earnings positions of the individual segments. This enables insights into the trend for the individual segments and their contribution to Group earnings Subsidiary | fully-consolidated and affiliated company Tax deferrals | item arising to account for timing differences between the tax bill according to the AG/Group annual financial statements prepared according to IAS for tax purposes and the commercial reporting statements Total-cost method | structuring the profit and loss account according to type of expense or revenue Treasury management | Group-wide management of cash and foreign-exchange flows as well as financial risk transactions
