PDF, 3.2 MB - Pfleiderer AG

Economic Glossary
Asset deal
Describes the acquisition of companies,
or parts thereof, by assigning all or
specific assets and liabilities of a company
by way of singular succession. The
opposite of a share deal, where only
shares in the company are transacted.
Capital employed
The entire capital employed in the
company, i.e. fixed assets plus current
assets, less provisions (excluding
provisions for pensions), and liabilities
(excluding financial liabilities).
Cash flow
A measure used when analyzing balance
sheets, companies and shares in
order to assess a company’s financial
strength and profitability. The cash flow
defines the inflow of liquid funds to a
company from sales and other sources
over a certain period.
Derivative financial instruments
Derivative financial instruments are
used to hedge against and minimize
risks arising when transactions are
exposed to potential changes in
currency exchange rates or market
interest rates. Hedging is performed
using swaps, options or futures.
Discontinued operations
According to US-GAAP business segments
which are ear marked for
disposal or separation are shown separately
under “discontinued operations”
in the income statement and balance
sheet.
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EBITDA
Earnings before interest, taxes, depreciation
and amortization. EBITDA describes
a company’s profit margin and
is a key figure when assessing its earnings
power.
EBIT
Earnings before interest and taxes.
EBT
Earnings before taxes.
EPS
Earnings per share. Consolidated earnings
divided by the weighted number of
shares.
IFRS – International Financial
Reporting Standards
The International Financial Reporting
Standards have been drafted to ensure
that corporate financial reporting and
publication standards are comparable
worldwide. From 2005, all capital market
holding companies listed on a regulated
stock market within the EU are
obliged to draw up their financial statements
in accordance with IFRS rules.
In 2003 and 2004, Pfleiderer AG compiled
its financial statements according
to US-GAAP (United States Generally
Accepted Accounting Standards). As
from 2005, the Company will be
accounting according to IFRS rules.
Impairment test
A test for determining whether an intangible
asset (or goodwill) has depreciated
in value based on future discounted
cash flow.
IN BRIEF GLOSSARY
Long Term Incentive Program
A motivation program geared to the
long term to encourage staff loyalty,
incorporating schemes to allow employees
a share in the success of the
company.
ROCE
Return On Capital Employed.
Stock options
Form of remuneration entailing the
issue of subscription rights to members
of management and employees,
conferring on them the right to acquire
shares in their own company, provided
they achieve certain goals under certain
conditions.