Nordzucker_GB 03-04_E_.pd 1 - Nordzucker AG

Glossary
Finance
Cashflow Net inflow of funds. Difference
between receipts and spending expenses within
one accounting period. For the sake of simplicity,
the cash flow is determined on the basis of
the annual surplus after tax, plus non-spending
expenses, in particular depreciation and the
changes in the long-term reserves. The cash
flow is available to the company for investment,
repayment of liabilities, and distribution of
profits.
Compliance Declaration Annual declaration
made and published by the managing and
supervisory boards of listed companies in
accordance with article 161 AktG, stating the
extent to which the company management
complies with the recommendations of the
Government Commission "German Corporate
Governance Code" and which recommendations
are not applied.
German Corporate Governance Code
(CGK) Statutes formulated in 2002 on the
management and supervision of German companies
listed at the stock exchange. The German
Corporate Governance Code shows
nationally and internationally accepted standards
of responsible business management,
which primarily aim at transparency and clarity.
The code defines the responsibility of managing
and supervisory boards, it sets forth or makes
recommendations on how to protect the right
of shareholders, and how executive and supervisory
bodies should be filled and how their
members should be remunerated. Non-listed
companies are also recommended to comply
with the Corporate Governance Code.
EBIT (earnings before interest and taxes) This
index is to supply information on the result of
current operations. Since differences in capitalization
are not accounted for the general interest
rate level or tax rates are not considered. In
this way it provides a better basis for comparing
the operating success of companies across
national borders. In particular international
investors regard EBIT details as important
figures.
Equity Consolidation Assessment method for
shareholdings in companies whose company
and finance policy can be influenced decisively.
Proportionate annual surplus or deficits of the
associate company increase or decrease the
book value of participations and affect the profit
and loss account. Distributions and dividends
decrease the book value of participations without
affecting the profit and loss account.
IFRS/IAS (International Financial Reporting
Standards) or previously: IAS (International
Accounting Standards) are accounting standards
that render balance sheet and disclosure
methods comparable on a global scale.
Consolidation The group accounts are drawn
up as if all group member companies formed
one uniform company in law. All expenditures
and earnings as well as all interim trade results
and other transactions between the group
members are eliminated by way of set-off
(expense and result as well as interim result
consolidation). Stakes held in group member
companies are set off against their equity capital
(capital consolidation), and all intra-group
receivables and liabilities are eliminated (debt
consolidation), because such legal relationships
do not exist within a legal entity. Summation
and consolidation of the remaining items of the
annual accounts result in the consolidated
balance sheet and the consolidated profit-andloss
account.
Rating Standardised assessment of the credit
standing of a company by specialised agencies.
Syndicated Credit Lending by several banks
(syndicate) on the basis of standardised contract
documentation and on the basis of identical
terms and conditions.
Sugar and food terms
Fructose Sweetener often found in fruit and
therefore also known as fruit sugar. In a chemically
bound form it is contained in sucrose and
in inulin, which is dominant in chicories. Fructose
is suited for use as a diabetic sweetener. It
is industrially extracted from sucrose, inulin or
starch. Fructose is subject to market regulations.
Glucose Also known as dextrose or grape
sugar; widely used plant-based sweetener.
The carbohydrate forms part of the family of
monosaccharides and it is a structural element
of starch, cellulose and glycogen. Glucose is
industrially extracted from starch.
Glycemic index Measuring unit for the rate
in which the blood sugar level rises after the
intake of foodstuffs containing carbohydrates.
Isoglucose Sugar primarily produced from
maize starch, which is used in beverages and
fruit preserves. Isoglucose is subject to market
regulations.
Prebiotic are indigestible substances that
affect the growth and the activity of microorganisms
in the digestive tract and thus contribute
to a healthy intestinal flora.
Sorbitol E 420, Sugar alcohol that occurs, for
instance, in rowan berries. Its structure is similar
to that of glucose, from which it is produced in
a technical process by the catalytic addition of
water (hydration). Sorbitol has half the sweetening
power of glucose and is an important
sugar substitute for diabetics.
Sucrose Scientific term for sugar; a disaccharide
based on fructose and glucose. Texture,
taste enhancement and keeping quality are
properties which, in addition to its sweet
flavour, make it an important sweetener.
Sucrose is produced from sugar beets and
sugar cane.
Tagatose A sweetener similar to fructose,
which is industrially produced from lactose.
Tagatose provides virtually the same sweetness
as sucrose (92 percent), but its energy content
is much lower (1.5 kcal/g). Tagatose is tooth
friendly, it has prebiotic properties and is suited
for use by diabetics. Thanks to its flavour
enhancing properties, it is an ideal sweetener
for light beverages, sugar-free candies and
chewing gum.
Sugar industry
A/B Quota Sugar sales volume assigned by the
EU with limited price and full sales guarantees.
At the same time the upper limit for sugar sales
in the EU.
C Sugar Sugar produced in excess of the A/B
quota, which has to be sold on the world market
at world market prices.
Declassification Instrument used to cut back
the EU sugar quotas for compliance with the
WTO requirements of limiting the value and
volume of subsidised sugar.
LDC/EBA ‘Least developed countries’ / ‘Everything
but arms‘. Both terms relate to the EU
resolution of 2001, according to which the
49 least developed countries in the world may
import any goods except arms into the EU free
of any duty. Sugar falls under a special transitional
arrangement which will expire in 2009.
Production Levy Levy paid by beet farmers
and sugar producers to finance utilization losses
if quota sugar, which cannot be marketed in
the EU, has to be exported.