Siemens 2013 Annual Report Download - page 364

92 A. To our Shareholders 117 B. Corporate Governance 155 C. Combined Management Report

E.5 Glossary
A
Adjusted EBITDA Abbreviation for the performance measure
»earnings before interest, taxes, depreciation
and amortization«. Siemens defines adjusted
EBITDA on group level as result of the follow-
ing line items: Income from continuing oper-
ations before income taxes less Financial
income (expenses), net (comprised of Interest
expenses, Interest income and Other finan-
cial income (expenses), net) and less Income
(loss) from investments accounted for using
the equity method, net (adjusted EBIT), plus
amorti zation and depreciation and impair-
ment of property, plant and equipment and
goodwill.
American Depositary
Shares (ADSs) /
American Depositary
Receipts (ADRs)
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
company 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 company that offers
financial solutions primarily to customers of
the operating units of that company.
Comfort letter A written statement prepared by an indepen-
dent auditor which expresses an opinion
on the results of certain audit procedures.
Commercial paper Short-term debt instrument 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 papers
that can be drawn in different currencies.
Compliance Adherence to laws and to external and
internal guidance or codes of conduct.
Corporate Treasury A corporate unit responsible for financial
management, particularly relating to the
liquidity and cash management as well as
the financial risk management.
Credit Rating Standardized indicator for the assessment of
issuers’ credit ratings; determined by special-
ized agencies.
D
Debt Issuance Program A kind of framework agreement between com-
panies and traders of notes (usually banks),
enabling a company to issue securities in the
capital market under predetermined terms and
conditions, thus providing flexibility in raising
debt within a very short period of time.
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 often requires no
or a relatively low initial investment.
Discontinued operations A component of an entity that either has
been disposed of in the fiscal year or is classi-
fied as held for sale and represents a separate
major line of business or geographical area
of operations; 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 markets Economies that are not industrialized econo-
mies. Siemens defines emerging market
countries in accordance with the International
Monetary Fund’s definition of “Emerging
Market and Developing Economies”.
F
Free cash flow A measure of operative cash generation.
Siemens defines “Free cash flow” as cash
flows from operating activities less additions
to intangible assets and property, plant and
equipment.
Functional costs Functional costs comprise the following
line items: Cost of sales, Research and
development expenses, and Selling and
general administrative expenses.
G
German Corporate
Governance Code
Drafted by a German government commission,
the German Corporate Governance Code is
a set of recommendations and suggestions
for the good management and supervision
of publicly listed companies.