Glossary

Ad hoc

A listed company is obliged to publish any information impacting on its share price without delay. This is usually done in the form of a so-called 'ad hoc', when the information is disclosed besides the normal reporting.

Annual General Meeting (AGM)

Shareholders exercise their rights, including their right to vote, at the Annual General Meeting. Every share entitles the holder to one vote. The Ordinary Annual General Meeting is held once a year – usually within the first six months of each fiscal year. For information on the Annual General Meeting of Beiersdorf please click here.

Benchmark

A benchmark is a reference or a comparison. Usually the benchmark is a stock index or a comparable sector.

Cash flow

Key indicator used to assess a company’s financial position and earnings power. Cash flow is determined from the inflows and outflows of cash and cash equivalents from operating, investing, and financing activities.

Compliance

Compliance means to abide to applicable laws and internal guidelines. It is the management’s responsibility to ensure Compliance.

Consumer Insights

Findings relating to the wishes and needs of consumers. They are a key basis for developing new ideas and products.

Corporate Governance

Corporate Governance means responsible company management and supervision that aims to achieve long-term value enhancement. It increases the transparency of the statutory and company-specific conditions for the management of listed companies and hence promotes the confidence of investors, customers, employees, and the general public in this regard. To learn more about Corporate Governance at Beiersdorf please click here.

CSR – Corporate Social Responsibility

Umbrella term used to denote the responsibility exercised by companies towards society, which encompasses economic, ecological and social issues. For more information on sustainability at Beiersdorf please click here.

DAX

German equity index compiled by Deutsche Boerse that tracks the share price performance of the 30 leading German listed stock corporations, including Beiersdorf AG.

Directors' dealings

The members of the Executive and the Supervisory Boards of listed German corporations are obliged to disclose the transactions of shares in the company. Under German law, any such dealings must be disclosed if they exceed EUR 25,000 within a period of 30 days. For more information please click here.

Dividend

A dividend is the proportion of the profit distributed by a company that is attributable to a single share. A 10-year overview of the dividend per share of Beiersdorf is available here.

Dividend yield

A financial ratio that shows how much a company pays out in dividends relative to its share price. Dividend yield is calculated by dividing the dividend by the share price and then multiplying it by 100.

EBIT

Earnings before interest and taxes.

EBITDA

Earnings before interest, taxes, depreciation, and amortization/impairment.

Equity ratio

Ratio of equity to total assets. Indicates a company’s financial strength and therefore its economic stability.

Free Cash Flow

A financial ratio showing the cash flow remaining in the reporting period after deducting the net cash funds used for investing activities.

Free Float

The proportion of shares issued by a company that is in principle available for stock exchange trading.

Gearing

A financial ratio expressing the level of net debt to its equity capital.

IFRS / IAS

IFRS = International Financial Reporting Standards. IAS = International Accounting Standards. Standards issued by the International Accounting Standards Board (IASB). Under the EU IAS Directive, listed companies in Europe must prepare their accounting and reporting in accordance with these standards.

ISIN

Abbreviation that is used for identification of securities traded at stock exchanges. ISIN for Beiersdorf is DE 0005200000.

Market Capitalization

Market capitalization denotes a company’s stock market value. It is calculated by multiplying the current share price by the number of outstanding shares.

Operating result

Operating result means the same as EBIT. Please find the definition above.

Payout ratio

The proportion of earnings paid to shareholders. Payout ratio is calculated by dividing the total dividends paid by the net profit.

POS – Point of Sale

The place at which goods are bought (by the consumer) or sold (by the retailer).

Retained earnings

Retained earnings refers to the portion of net income which is retained by the corporation rather than distributed to its owners as dividends.

Return on equity

A financial ratio showing the proportion of net profit to shareholders' equity.

Share index

For example the DAX is an index for the largest German companies. Some of the best known indices are the Dow Jones (USA), the MSCI World, the NASDAQ (technology stocks in USA) and the Nikkei Index (Japan).

Special Factors

One-time income or expenses that have a material effect on the Beiersdorf Group’s overall earnings. These include i. e. the realignment of the Consumer Supply Chain and divestments.

Statement of Comprehensive Income

Reconciliation of income and expenses recognized in the income statement and changes in comprehensive income for the period that are recognized directly in equity, including deferred taxes.

Total Shareholder Return

TSR expresses the overall return that the investor earns (share price gain + dividends).

Working capital

A financial measure for a company's efficiency. Working capital is calculated as follows: inventories + trade receivables - trade payables.