Reporting 2020


Financial Glossary


Recovery of invested capital through income.

At equity/equity method

Method for recognition of equity investments that are not included in the consolidated financial statements on the basis of full consolidation with all assets, liabilities, and equity interests. The carrying amount of the investment is increased or decreased by the development of the pro rata equity of the investment. This change is recognized in the income statement of the parent company.

Cash flow

Key figure that describes the addition to cash and cash equivalents within the financial year.


Collective term for measures taken to ensure adherence to all legal obligations, provisions, and directives relevant for a company as well as to corporate governance. Another objective of compliance is to achieve harmonization between corporate actions and social values.

Corporate Governance

Rights and obligations of the various parties involved in the company, in particular the shareholders, Board of Management and Supervisory Board.

Derivative financial instruments

Financial instruments that are traditionally used to hedge existing investments or liabilities and whose value is derived from a reference investment (e.g., share or bond).


Digitalization, in contrast to digitization, does not simply refer to the conversion of analogue information into digital formats, but rather to the changes that result from the steadily growing possibilities of using information technology. This concerns, for example, the development of innovative business models and the use of intelligent technologies with the aim of increasing the networking of production, logistics and finance and the associated increase in efficiency and the standardization of processes. Digital change (digital transformation) is not an end in itself, but is intended to ensure the future viability of companies.

Discounted cash flow method

Measurement method: Future payment surpluses or deficits are discounted with the help of capital costs on the measurement date. Taxes due are included in the measurement. The present value determined in this way is the discounted cash flow.


Earnings before interest and taxes = operating earnings.


Earnings before interest, taxes, depreciation and amortization.


Earnings before taxes.


Recht des Erbbauberechtigten, gegen Zahlung eines Entgelts (des sog. Erbbauzinses) auf einem fremden Grundstück ein Bauwerk zu haben.

Finance leases

Method for financing investments in intangible assets or property, plant and equipment that involves a series of payments over the entire expected useful life of the asset. The asset appears on the assets side, the lease liability on the liabilities side of the lessee’s statement of financial position.

Forward interest rate swap

A forward interest rate swap is an agreement on a swap in the future whose terms are defined immediately.

Functional currency

The currency in which a company carries out the majority of its business activities and reports its financial results to the parent company.


A strategy of protecting against interest rate, currency, and price risks through derivative financial instruments (options, swaps, forward transactions, etc.).

Hypothetical derivative method

Method of measuring the effectiveness of derivative financial instruments by comparing the change in market value of the derivative to that of a hypothetical derivative that perfectly hedges the risk to be hedged against.


International Accounting Standards (see also IFRSs).


International Accounting Standards Board: Body that develops and publishes international accounting standards.


International Financial Reporting Interpretations Committee: Body that publishes interpretations regarding the IFRS accounting standards. After approval by the IASB the interpretations are binding for all IFRS users.


International Financial Reporting Standards (“IASs” until 2001): International accounting regulations that are published by an international independent body (IASB) with the aim of creating a transparent and comparable accounting system that can be applied by companies and organizations all over the world.

Impairment testing

Test to determine change in value in accordance with IFRSs.

Investment properties

Land, buildings and/or parts of buildings that are maintained to earn rental income and/or for the purpose of value enhancement.

Joint venture

Legally and organizationally independent company that is jointly established or acquired by at least two independent partners.

Current account

Designation for an account in which all transactions of two business partners are conducted and the mutual receivables are set off (netted) against each other at regular intervals.

Current account overdraft facility

Credit limit contractually pledged to a customer by a bank up to which the customer may overdraw beyond their credit balance.

Liability method

Method of measurement of deferred tax assets and deferred tax liabilities. A measurement is carried out on the basis of the tax rate that is expected at the time when the future tax burden or relief arises.

Matching principle

IFRSs: Recognition of income and expenses of the same events in the same period.

Operating leases

Method of renting intangible assets or property, plant and equipment for a certain period that is shorter than the expected life of the asset. In the case of operating leases, neither the asset nor a liability appears in the lessee’s statement of financial position.

Other long-term benefits

Additional long-term employee benefits that are reported under long-term provisions.

Post-employment benefits

Benefits after termination of employment contract.

Pro rata temporis

At a rate proportional to the time allotted.

Projected unit credit method

Special method for measuring pension and similar obligations in accordance with IFRSs.

Recoverable Amount

Amount presumed to be achievable through use or sale of an asset.

Promissory note loan

Large long-term loan similar to a security.

Other comprehensive income

All income and expenses that are not contained in the net profit or loss for the year. It includes, for example, foreign currency gains and losses from the translation of foreign financial statements that are reported directly in equity in accordance with IAS 21.

Stage of completion method (SoC)

IFRSs: Recognition of service orders according to their progress.


Einbehalten von Gewinnen.

Full consolidation

Method for recognition of subsidiaries that are included in the consolidated financial statements with all assets, liabilities, and equity interests.

Working Capital

Difference between current assets and current liabilities. Used to evaluate the liquidity of the company.

Cash-generating unit

Smallest identifiable group of assets that, by virtue of continued use, generates inflows of liquidity, which, in turn, are largely independent of the cash inflows of other assets.

Interest rate swap

An interest rate swap describes a contractual agreement on the exchange of interest payment flows in the same currency where the cash flows are based on a defined amount of capital.

Sustainability Glossary

CI factory

Production site of Engelbert Strauss GmbH & Co. KG in Schlüchtern. “CI” is the abbreviation for Corporate Identity, or how a company is perceived in the public sphere.

CO2 equivalents (CO2e)

Uniform measure of the greenhouse effect of various greenhouse gases. The reference value is carbon dioxide CO2. DIN 16258:2013-03 takes the following gases into account: CO2, CH4, N2O, HFC, PFC and SF6. These six gases are also listed in Annex A of the Kyoto Protocol to the United Nations Framework Convention on Climate Change. The GEMIS (Global Emissions Model for Integrated Systems) takes account of CO2, CH4, N2O, C6F14 and C2F6.


Corporate Social Responsibility. Social responsibility of companies as part of sustainable business operations.

EBT margin

Division of EBT by revenue. The EBT margin is an indicator of the efficiency and profitability of a company.

Equity method/At equity

Method for recognition of equity investments that are not included in the consolidated financial statements on the basis of full consolidation with all assets and liabilities. The carrying amount of the investment is increased or decreased by the development of the pro rata equity of the investment. This change is recognized in the income statement of the parent company.

R&D projects

Research and development projects are ventures that deliver new knowledge or innovations as their main outcome, and are characterized by a pronounced degree of innovation, interdisciplinarity and project risk. The project goals deliberately go beyond the current state of research in science and technology. Funding is provided by the public sector in the form of grants.

United Nations Global Compact

Global pact between companies and the United Nations to support socially fair and ecologically sustainable globalization. The members undertake to follow ten principles in the areas of labor and human rights, environment and anti-corruption in all the countries in which they operate.

Global Reporting Initiative (GRI)

Internationally active organization that works with various stakeholders (including companies, human rights organizations and environment organizations) to develop guidelines for compiling sustainability reports. The GRI guidelines or standards constitute the most commonly used framework for sustainability reporting around the world.

Global Emissions Model for Integrated Systems (GEMIS)

A life-cycle analysis model to determine material flows with an integrated database for energy, materials, and transport systems. It is available to download free from the International Institute for Sustainability Analysis and Strategy (IINAS) and is used in more than 30 countries to analyze costs and environmental impacts.

Greenhouse Gas Protocol

Most widely adopted global standard for uniform accounting of and reporting on greenhouse gas emissions.

Lean Management

Process optimization approach designed to minimize waste and harmonize processes.

Robert Koch Institute (RKI)

The Robert Koch Institute (RKI) is a German federal institute within the portfolio of the Federal Ministry of Health. The core tasks of the RKI are the detection, prevention and control of diseases, especially infectious diseases. In the context of the COVID-19 pandemic, the RKI provides regular information and recommendations for pandemic response.


Novel coronavirus (stands for: severe acute respiratory syndrome coronavirus type 2) that was identified in early 2020 as triggering the COVID-19 disease. The severe acute respiratory syndrome coronavirus type 2 was the causative agent of the global COVID-19 pandemic.

Science Based Targets initiative (SBTi)

A collaboration between leading environment and climate protection organizations which defines a framework according to which companies can reduce their greenhouse gas emissions on a scientific basis. One of the SBTi targets is to limit global warming to significantly below 2° C, as demanded by the Paris Climate Agreement.

Six Sigma

A management system for process improvement and statistical quality targets, and simultaneously a method of quality management. The core element is the description, measurement, analysis, improvement and monitoring of business transactions with statistical means.

Sustainable Development Goals (SDGs)

In 2015, the United Nations agreed on 17 goals for sustainable development (SDGs) which should be achieved by 2030. The SDGs shape the sustainability debate on national and international levels. As a global target system, they offer a common language and a compass for the challenges of the 21st century.

Logitic Glossary

Cargo-modal services

Services such as storage, customs clearance, distribution logistics and supply chain management.


All processes carried out in the sales channel between producers and dealers all the way to the consumer.

Intermodal chain of transport

Use of different means of transportation (air, water, rail, road) for a shipment.

Order picking

Putting together the articles requested according to a customer’s order or an equipment order.


Assignment of logistics functions to external suppliers.


Roll-on/Roll-off = transport of vehicles (with or without load) on vessels in which the vehicles go on board and leave the vessel on their own power.

Self-Propelled Modular Transporter (SPMT)

Special vehicles for the transport of very large and bulky cargo or of project cargo onshore.


Twenty-foot container equivalent unit. Standardized container unit with a length of 20 feet (1 foot = 30 cm).