Financial Terms
Average Operating Assets
Average net non-current assets (intangible assets, property, plant and equipment, investment properties) + average net current assets (inventories + trade receivables – trade liabilities).
Cost of Capital
Expenses that must be incurred to utilise financial resources as equity or borrowed capital.
DBO (Defined Benefit Obligation)
Performance-oriented pension obligations arising from the accrued and estimated pension rights of active and former members of staff as at settlement day, allowing for probable future changes in pensions and emoluments.
Derivative Financial Instruments
Financial instruments that are traditionally used to protect existing investments or obligations. Earnings from associated companies (using the equity method) Earnings of joint ventures or associated companies are included in the financial result in the profit and loss statement.
EBIT
Earnings before interest and taxes.
EBITDA
Earnings before interest, taxes, depreciation and amortisation.
EBT
Earnings before tax.
Economies of Scale
Law of economics according to which increases in production are accompanied by reductions in unit costs.
Equity Ratio
Equity / total assets
Financial Result
Interest income – interest expenses +/– earnings from associated companies using the equity method +/– other financial result
Dynamic Gearing Ratio
Commercial debt (pensions provisions + non-current and current liabilities to related parties + non-current and current financial liabilities – cash, cash equivalents and short-term deposits) / EBITDA.
IAS
International Accounting Standards
IFRS
International Financial Reporting Standards
Impairment Test
Impairment test as defined under IFRS
Investments
Payments for investments in property, plant and equipment, investment property and for investments in intangible assets.
Operating Cash Flow (as Defined in Literature on IFRS Indicators)
EBIT – taxes + amortisation and depreciation – write-backs +/– change of non-current provisions (excl. interest portion) +/– gains / losses on the disposal of property, plant and equipment + change of working capital
ROCE (Return On Capital Employed)
EBIT / average operating assets
Revenue
Sales derived from selling, letting or leasing and from services provided by the Group, less sales deductions and turnover tax.
Value Added
Value added is calculated on the basis of the value of production less input (costs of materials, depreciation, other operating expenses). Value added is distributed to different interest groups in HHLA, such as employees, shareholders, partners, lenders or the state. IAS