Financial Terms

Average Operating Assets

Average net non-current assets (intangible assets, property, plant and equipment, 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 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) / .

IAS

International Accounting Standards

IFRS

International Financial Reporting Standards

Impairment Test

as defined under

Investments

Payments for investments in property, plant and equipment, property and for investments in intangible assets.

Operating Cash Flow (as Defined in Literature on IFRS Indicators)

– 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 /

Revenue

Sales derived from selling, letting or leasing and from services provided by the Group, less sales deductions and turnover tax.

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.