Aftermarket
Sale of products to independent market: in spare part business parallel with or following series production.

Asset-backed security transactions
In an asset-backed security transaction, a company sells part of its receivables portfolio to a company, which, in turn, refinances itself by issuing marketable securities, i.e. asset-backed security (ABS).

Blended learning
Electronic learning (e-learning), augmented by tutor support and face-to-face teaching.

Corporate design
Part of the corporate identity, comprises the complete visual image of a company.

Corporate identity
The corporate identity is the strategically planned and operationally implemented self-portrayal and behavior of a company, both internally and externally, based on an established corporate philosophy, a long-term corporate mission statement and a defined (ideal) image – with the aim of achieving uniform internal and external representation in everything that the company does.

German Corporate Governance Code
The German Corporate Governance Code sets basic statutory standards for the management and for monitoring of German companies listed on the Stock Exchange (corporate governance) and comprises internationally and nationally recognized standards of good and responsible corporate governance.

EBIT
Earnings before interest and taxes.

EBITDA
Earnings before interest, taxes, depreciation and amortization.

First consolidation
First consideration of Group member companies in the balance sheet of the absorbing subsidiary (usually if holding exceeds 50%).

Heubeck tables
Uncertain debts from a pension commitment are evaluated for entry into the balance sheet in accordance with the generally recognized actuarial rules, based on the “life expectancy tables” created by Prof. Dr. Klaus Heubeck. These tables show biometric actuarial bases such as invalidity and mortality probabilities.

Key account management
Type of sales organization geared towards purchasers or purchaser groups. The key account manager is available to a key customer or group as a permanent contact for all products.

Consolidated sales
External sales made by a company, i.e. excluding all intercompany sales.

Consolidation group
Comprises the parent company, all subsidiaries and participations that must be considered in accordance with the regulations of the HGB on the date on which the consolidated financial statements are drawn up.

Deferred tax assets
As a result of different accounting regulations for tax and commercial balance sheets, the net income according to tax law and according to commercial law may differ. In this case, the tax expense in the commercial income statement which is derived from the tax balance sheet considers the net income according to commercial law only to a limited extent, to compensate for difference deferred tax assets are recognized in the balance sheet.

Trade balance deficit
If the trade balance from the import and export of goods and services of a national economy shows a deficit. This is the case if a country imports more than it exports.

NAFTA
Acronym for the free trade zone founded on January 1, 1994 – North American Free Trade Agreement. Its members are the United States of America, Canada and Mexico.

Net liquidity
Net amount of liabilities to banks and monetary current assets.

OE/OEM
Original Equipment/Original Equipment Manufacturer.

Profit center
The profit center is an organizational subdivision for which the profit for the period is calculated separately. The profit centers usually operate as independent companies, with the aim of earning as high a profit as possible (profit responsibility).

Responsible buyer concept
Negotiations with the supplier are arranged by a globally responsible purchaser (comparable to a key account manager in sales).

Sale and leaseback transaction
Special form of leasing in which the lessor (leasing company) purchases the leased object from the lessee (company) and leases it back to the lessee.

SRM system (Supplier Relationship Management system)
Comprises the strategic planning and central management of a company’s relationships with its suppliers. The aim is to closely bind all suppliers to the company and to support purchasing throughout the procurement processes.

Reinvestment policy
Defines what portion of a company’s profit the shareholders receive and what portion remains within the company for financing purposes.

Knowledge management
Consciously managing knowledge as a resource and using it in a targeted manner within the company. This makes it possible to control all data, information and skills within the company. Making this knowledge base accessible to as many people as possible ensures that solutions can be found to complex, varied problems.