Siemens 2012 Annual Report Download - page 336

1 A. To our Shareholders 49 C. Combined Management Report 21 B. Corporate Governance
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A
Adjusted EBITDA Abbreviation for adjusted “Earnings before
interest, taxes, depreciation and amorti-
zation.” Siemens defines adjusted EBITDA on
group level as “Income from continuing
operations before income taxes” less “Other
financial income (expense), net,” less “Inter-
est expense,” less “Interest income,” as well
as less “Income (loss) from investments
accounted for using the equity method, net
(adjusted EBIT)” before amortization and
depreciation and impairment of property,
plant and equipment and goodwill.
American Depositary
Shares (ADSs) /
American Depositary
Receipts
A U.S. dollar-denominated certificate issued
by a U.S. bank, representing a share of a for-
eign-based company available for purchase
on an American stock exchange. The entire
issuance is called an American Depositary
Receipt (ADR) and the individual shares are
referred to as ADSs.
Asset management The process of managing and controlling
corporate assets in order to enhance opera-
tional efficiency in using these assets in
business operations.
C
Captive finance unit A financial services unit organized as a busi-
ness within an industrial enterprise that
offers financial solutions primarily to custom-
ers of the operating units of that enterprise.
Cash conversion
rate
Ratio of “Free cash flow” to “Income.”
Comfort letter A written statement prepared by an inde-
pendent auditor which expresses an opinion
on the results of certain audit procedures.
Commercial paper Short-term debt instruments in the form of
bearer bonds, issued in the money market
by companies with strong credit ratings.
Commercial Paper
Program
Program for the issuance of commercial paper
that can be drawn in different currencies.
Compliance Compliance with laws as well as with external
and internal guidance or codes of conduct.
Corporate Treasury A corporate unit responsible for the financial
management, particularly relating to the
liquidity and cash management as well as the
financial risk management.
D
Derivatives /Derivative
financial instruments
An instrument that derives its value from
that of an underlying instrument or index,
is settled at a future date and requires no
or a relatively low initial investment.
Discontinued operations A component of an entity that either has
been disposed of or is classified as held
for sale and represents a separate major line
of business or geographical area of opera-
tions; is part of a single coordinated plan to
dispose of a separate major line of business
or geographical area of operations; or is a
subsidiary acquired exclusively with a view
to resale.
E
Emerging market
economies
Economies that do not form part of the
industrialized economies. Siemens defines
emerging market countries by means of
a negative delimitation from developed
economies in accordance with the definition
by the International Monetary Fund (IMF).
F
Free cash flow A measure of operative cash generation.
Siemens defines “Free cash flow” as inflows
and outflows of cash and cash equivalents
provided by (used in) operating activities
less cash outflows for additions to intangible
assets and property, plant and equipment.
Functional costs Functional costs comprise “Cost of goods
sold and services rendered,” “Research and
development expenses,” and “Marketing,
selling and general administrative expenses.”
G
German Corporate
Governance Code
Essential statutory regulations for the
management and supervision of German
listed companies. It contains internatio-
nally and nationally recognized standards
for good and responsible governance.
H
Hybrid bond A corporate bond that, due to its character-
istics such as long maturity date and sub-
ordination, bears the character of both debt
and equity.