Values

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Report Statements Supervisory
Board
Selected Terms at a Glance
Bertelsmann Value Added (BVA)
A central performance indicator for assessing the profi tability
of operations and return on invested capital. Th e BVA is the
diff erence between Net Operating Profi t After Tax (NOPAT),
defi ned as Operating EBIT adjusted for a uniform tax rate of
33 percent, and cost of capital. Cost of capital is the product of
the weighted average cost of capital (a uniform 8 percent after
taxes) and invested capital (operating assets less non-interestbearing
operating liabilities).
Business Process Outsourcing
Business Process Outsourcing refers to the outsourcing of entire
business processes to a third-party company.
Cash Conversion Rate (CCR)
Indicator for assessing cash fl ow generated by operations. CCR
is calculated based on the ratio of Operating Free Cash Flow
to Operating EBIT.
Contractual Trust Arrangement (CTA)
Concept of funding and insolvency protection of pension
obligations by transfer of assets into a structure similar to a
trust. Assets are classifi ed as plan assets under IFRS and netted
against the company’s pension liabilities.
Coverage Ratio
Th e (interest) Coverage Ratio is an important fi nancing target.
It represents the ratio of Operating EBITDA to fi nancial result.
Amounts reported in the annual fi nancial statements are modifi
ed in calculating the coverage ratio.
IFRS
International Financial Reporting Standards. Accounting
standards intended to ensure internationally comparable
accounting and reporting.
Bertelsmann Annual Report 2009
Selected Terms at a Glance
Financial Calendar/Contact
Production Credits
Impairment
Write-down of assets to their recoverable amount.
Leverage Factor
The Leverage Factor is the ratio of economic debt to
Operating EBITDA. In calculating the leverage factor, modifications
are made to the balance sheet figures to better
refl ect the Group’s actual fi nancial strength from an economic
viewpoint.
Operating EBIT
Earnings before interest, taxes and special items.
Operating EBITDA
Earnings before interest, taxes, depreciation, amortization and
special items.
Rating
Expression of creditworthiness of a creditor or fi nancial instrument
by an agency specialized in creditworthiness analysis.
Special Items
Income and expense items which are distinguished by their
nature, amount or frequency of occurrence and disclosure
of which is relevant for assessing the earnings power of the
entity or its segments in the period aff ected. IFRS requires these
items to be separately disclosed. Th ey include, for example,
restructuring measures, impairments and gains or losses on
disposals of participations.
Syndicated Credit Line
Syndicated loan facility involving a consortium of banks.
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