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DES GB2012 E

Free cash flow ¤ The surplus cash gen- erated from operating activities recog- nised in the profit and loss account. This expresses a company’s internal financing power, which can be used for investments, the repayment of debt, dividend payments and to meet funding requirements. Funds from Operations (FFO) ¤ Cash flows from operating activities. DES- calculation: net income for the period adjusted for measurement gains/losses and deferred income tax expense. earing ¤ Ratio which shows the relationship between liabilities and equity. edge accounting ¤ Financial map- ping of two or more financial instru- ments that hedge one another. fo Business Climate Index ¤ The ifo Business Climate Index is an important forward indicator for economic development in Germany. In order to cal- culate the index, the ifo Institute asks approximately 7.000 companies every month for their assessment of the eco- nomic situation and their short-term cor- porate planning. Interest rate swap ¤ Exchange of fixed and variable interest pay able on two nominal amounts of capital for a fixed period. By means of an interest rate swap, interest rate risks may be controlled actively. International Financial Reporting Stan- dards (IFRSs) ¤ International Financial Reporting Standards are based on Inter- national Accounting Standards (IASs). Since 1 January 2005, listed companies have been required to apply IFRSs. IASs/ IFRSs focus on the decision-usefulness of accounts. The key requirement with regard to the annual financial statements is fair presentation that is not qualified by aspects of prudence or risk provision. Loan to value ¤ Ratio that ex- presses the amount of a mortgage as a percentage of the market value of real property. all ¤ Row of shops in a shopping center. Market capitalisation ¤ The current quoted price for a share multiplied by the number of shares listed on the stock. MDAX ¤ German mid-cap index com- prising the 50 most important securities after the DAX members. exchange. Market capitalisation is calculated for individual companies, sectors, and entire stock mar- kets, thus enabling comparisons between them. Multi Channelling ¤ Using a combination of online and offline communication tools in marketing. et Asset Value (NAV) ¤ The value of an asset after deduction of lia- bilities. With regard to shares, the NAV constitutes their intrinsic value. The net net asset value (NNAV) is calculated by deducting deferred taxes from the NAV. eer-Group ¤ A share price per- formance benchmark consisting of companies from similar sectors, put together on the basis of individual criteria. Performance ¤ The term performance describes the percentage appreciation of an investment or a securities portfolio during a given period. EIT ¤ REIT stands for “Real Estate Investment Trust”. REITs are listed real estate corporations that are exempt from tax at the company level. To qualify, a minimum of 75% of their income must come from real estate rental, leasing and sales and 90% of profits must be distrib- uted to shareholders as dividends. Retail space ¤ Space in a building and/or an open area that is used for sales by a retail operation and that is accessible to customers. Service areas required for operational and legal purposes are not taken into account, nor are stairways or shop windows. The retail space is part of the leasable space of a business. Roadshow ¤ Corporate presentations to institutional in vestors. avings ratio ¤ Share of savings of the income available in households. Subprime ¤ Mortgage loan to borrower with a low degree of creditworthiness. ecDAX ¤ The successor to the NEMAX 50, comprising the 30 larg- est German listed technology securities in terms of market capitalisation and market turnover. olatility ¤ Statistical measure for price fluctuations. The greater the fluctuations in the price of a security, the higher its volatility. etra ¤ An electronic stock ex- change trading system that, in contrast to floor trading, uses and open order book, thus increasing market trans- parency. The trading hours are currently 9,00 a.m. to 5,30 p.m. H I L M N P R S T V X G { 185 } DES ANNUAL REPORT 2012 SERVICE Glossary