Download Annual Report 2006 - Mühlbauer Group

FINANCIAL GLOSSARY87paired. An impairment assessment is done at least once ayearGross cash position: Total of cash and cash equivalentsand marketable securitiesGross profit on sales: Net sales less cost of salesHedging activities: Hedging of interest or currency risksof individual or several basic transactions, for example bymaking use of derivative financial instrumentsIFRS/IAS: International Financial Reporting Standards forguaranteeing international comparability in financial reportingand meeting the information requirements of investorsand other addressees through higher transparency. Theindividual paragraphs of the IFRS are referred to as IAS(International Accounting Standards). Mühlbauer has preparedits financial statement according to the IFRS/IAS requirementssince 2005Market capitalization: The market price of a publicly listedcompany. At Mühlbauer the market price is calculatedfrom the market value of the share multiplied by the resultingsum of shares from the division of total capital (EUR18,810,976) and the nominal value per share of EUR 1.28Net cash position: Gross cash position minus currentand non-current liabilitiesPension expenses: Amount of pension costs realized inthe income statement. They are composed of the expensesfor new pension rights, interest expenses, the expectedyield for plan assets, the repayment amount for actuarialgains and losses, the repayment amount for retroactivepension plan changes as well as the repayment amountfor possibly underfunded initial expenses of IAS 19 (revised1998) during the fiscal yearPlan assets: Assets from an external insurance provider,which are only used for insurance purposes and cannot beobtained by other corporate creditors, and which can onlyflow back to the company, if they are used for direct pensionpayments, or if they are no longer required for insurancepurposesRisk management: Systematic process of identifying, assessingand monitoring various financial risk factors and ofselecting and implementing measures to handle themROCE: Return On Capital Employed – an indicator of operatingperformance, calculated as the percentage of EBITin relation to capital employedStatement of income: Displays a company's success duringthe reporting period and is part of the financial statement.The statement of income includes the cost on salesand posts all major costs according to their purposeStock options: Form of employee incentive and compensation.The employee is given an option to purchase acompany's shares if certain targets are met under specifiedconditionsWorking capital: Working capital indicates which part ofcurrent assets generates profits without causing capital expensesin a narrow sense and is calculated by non-interestbearing current assets less current and non-interest bearingliabilities. A low working capital base is consequentlyto be considered positive, since a company's supplier alsogenerates company profitsWorking capital intensity: An indicator for determining acompany's sales-related current assets, calculated as thepercentage of working capital in relation to net sales