Siemens 2012 Annual Report Download - page 337

135 D. Consolidated Financial Statements 239 E. Additional Information
240 E. Responsibility statement
241 E. Independent Auditors’ Report
243 E. Statement of the Managing Board
244 E. Five-year summary
246 E. Glossary
248 E. Index
250 E. Further information and information resources
251 E. Financial calendar
252 E. Company structure
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M
Medium Term
Notes Program
A kind of framework agreement between
companies and traders of notes (usually
banks), enabling a company to issue secu-
rities in the capital market under prede-
termined terms and conditions, thus provid-
ing flexibility in raising debt within a very
short period of time.
O
Operating
net working capital
The net amount of inventories less advance
payments reveived plus trade and other
receivables minus trade payables and minus
billings in excess of costs and estimated
earnings on uncompleted contracts and
related advances.
Order backlog Inventory of orders for goods and services
based on binding contractual arrangements
with customers.
R
Rating Standardized indicator for the assessment
of issuers’ credit ratings; carried out by spe-
cialized agencies.
Return on capital
employed (ROCE)
This indicator shows how efficiently a
company works with the capital of its share-
holders and lenders.
Risk management Systematic process to identify and assess
potential opportunities and risks and to
select and implement response strategies
with respect to these opportunities and risks.
S
Sensitivity
analysis
Analysis of effects of possible changes in
assumptions. It is used, for example, to esti-
mate how net periodic benefit cost is affect-
ed by decreasing / increasing discount rates.
Supply Chain
Management
Comprises the planning and management
of all processes in connection with supplier
selection, procurement and logistics.
W
Weighted Average
Cost of Capital (WACC)
The rate that a company is expected to pay
on average to all its providers of capital to
finance its assets.