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Glossary - Financial terms


Associated company A Company that is neither a subsidiary nor a share in a joint venture, upon which a significant influence is exercised and in which no less than 20% of the shares are held. Capital employed Average capital employed consists of shareholders’ equity capital, participationright capital, interest-bearing liabilities, pension provisions and accumulated goodwill amortization, after the deduction of cash and cash equivalents. Cashflow The difference between income and expenditure in a reporting period. The gross cash flow presented by the FUCHS PETROLUB Group in the Annual Report is calculated on the basis of Net profit after tax + depreciation and amortization of long-term assets ± change in long-term provisions ± change in deferred taxes ± income (loss) from investments accounted for using the equity method. The gross cash flow is an indication of a company’s internal financial resources available for investment, financing net current assets, debt repayment, dividend payments and maintaining liquidity. Corporate Governance Internationally used term for responsible management and supervision with a view to long-term value creation. Corporate governance comprises the entire system of managing and supervising a company and includes the organization of the company, its business-policy principles and guidelines, and guidelines, and all internal and external controlling and monitoring mechanisms. Declaration of compliance Declaration by the Supervisory Board and Executive Board pursuant to Section 161 of the German Stock Corporation Act (AktG) concerning the implementation of the recommendations of the German Corporate Governance Code. Deferred taxes Deferred taxes serve to show tax expenses in the consolidated financial statements on an accrual basis. Derivative financial instruments Financial products whose own value is primarily derived from the price, price fluctuations and price expectations of an underlying transaction, without this underlying transaction actually having to be performed. Derivatives are used by the FUCHS PETROLUB Group solely to limit exchange rate and interest-rate risks from the operating business. EBIT Abbreviation for earnings before interest and tax. Profit before financial result, taxes, and including shares of minority shareholders. EBITDA Abbreviation for earnings before interest, tax, depreciation and amortization. Profit before financial result, taxes, depreciation and goodwill amortization, including shares of minority shareholders. EBIT margin Earnings before interest and tax (EBIT) in relation to sales revenue. EBT Abbreviation for earnings before tax. Profit before tax, and including shares of minority shareholders. Effective tax rate Corporate income-tax expense in relation to earnings before tax. Equity method Method of consolidation for including associated companies in the consolidated financial statements. The Group’s ownership interest is entered as its share of these companies’ equity capital. Changes in such companies’ equity capital have an effect on the valuation of the Group’s ownership interest, their annual profit is included at equity in the Group’s profit. Equity ratio Proportion of capital resources (= subscribed capital, reserves and accumulated other capital) to the balance-sheet total. IAS Abbreviation for International Accounting Standards. Accounting principles intended to guarantee international harmonization and the comparability of financial statements and disclosure. They are prepared by an international committee, the International Accounting Standards Boards (IASB). FUCHS PETROLUB AG has compiled its consolidated financial statements on this basis since 2002. IFRS Abbreviation for international financial reporting standards, formerly international accounting standards (IAS). Investment income The Group’s share in the profits distributed by non-consolidated subsidiaries and its share in the profits earned by associated companies. Joint ventures Enterprises managed jointly with other companies, where each company has equal share. Participation interest Company, upon which no significant influence is exercised, due to the Group holding less than 20% of the shares. Proportionate consolidation Joint ventures are included in the consolidated financial statements proportionately (pro rata), i.e. joint ventures are entered in the balance sheet and income statement only in the amount of the proportion belonging to the FUCHS PETROLUB Group. Return on equity Profit after tax, in relation to shareholders’ equity. Return on sales Profit after tax in relation to sales revenue. ROCE Abbreviation for return on capital employed (earnings before scheduled goodwill amortization, financial result, taxes, and minority interests in relation to capital employed). SDAX Share index of German companies with a low market capitalization. The SDAX is thus the third value segment after the DAX (30 companies with a high market capitalization) and the MDAX (50 companies with a medium market capitalization). The FUCHS PETROLUB preference shares have been approved for the Prime Standard section of the German Stock Exchange since January 1, 2003, and are included in the SDAX segment, which comprises 50 companies in total. Subsidiary Company controlled by another company. Volatility Intensity of fluctuations in share prices and exchange rates.