Glossary

A

  • Accident rates

    BLG LOGISTICS measures the number of accidents using two independent rates: The previously used 1,000- man rate describes the relative frequency of reportable accidents per 1,000 full-time employees. The Lost Time Injury Frequency Rate (LTIFR), on the other hand, includes all accidents with lost time and sets them in relation to 1,000,000 hours worked.

  • Amortization

    Recovery of invested capital through income.

C

  • Cash flow

    Key figure that describes the balance of cash and cash equivalent receipts and payments within the financial year.

  • 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.

  • CDP

    The CDP (formerly the Carbon Disclosure Project) is a non-profit organization that provides a platform for the publication of environmental data from companies and municipalities. On a voluntary basis, they are called upon to fill out questionnaires in order to collect information, for example on CO2 emissions, climate risks, etc.

  • CKD

    The CKD (Completely Knocked Down) method involves combining vehicle parts from individual deliveries from suppliers and manufacturers, packaging them into specific kits and then delivering them to the appropriate foreign assembly plants via sea transport.

  • 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 which extends 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.

  • Compliance

    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.

  • CSR

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

D

  • 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).

  • Discounted cash flow method

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

E

  • EBIT

    Earnings before interest and taxes, and net financial income (costs). EBIT represents the operating result of a company for a financial year.

  • EBITDA

    Earnings before interest, taxes, depreciation and amortization.

  • EBT-Marge

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

  • EBT

    Earnings before taxes (pre-tax profit). A value for determining profitability independently of tax-related effects which cannot be controlled. This is also suitable for measuring profitability in an international comparison.

  • Equity accounting/equity method

    Method for recognition of equity investments that are not included in the combined 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 proportionate share in the equity of the investment. This change is recognized in the statement of profit or loss of the parent 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 proportionate share in the equity of the investment. This change is recognized in the statement of profit or loss of the parent company.

F

  • Forward interest rate swap

    A forward interest rate swap is a contractual agreement to hedge variable interest payment flows at a future date (exchange of fixed and variable interest payment flows), in which the terms can be defined immediately at the time when the hedging instrument is entered into.

  • Full consolidation

    Method for recognition of subsidiaries that are included in the combined financial statements with all assets and liabilities.

G

  • German Supply Chain Due Diligence Act (LkSG)

    Law on corporate due diligence to prevent human rights violations in the supply chain valid in Germany since January 1, 2023.

  • 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.

  • Globales Emissions-Modell integrierter Systeme (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.

H

  • Hedging

    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.

I

  • IASB

    International Accounting Standards Board: body that develops and publishes International Accounting Standards.

  • IASs

    International Accounting Standards (see also IFRSs).

  • IFRIC

    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.

  • IFRSs

    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 test

    Test to determine the recoverable amount of an asset in accordance with IFRSs.

  • Information Security Management System (ISMS)

    An Information Security Management System (ISMS) defines structures and processes that ensure, control, monitor and continuously improve information security within the company.

  • 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.

J

  • Joint venture

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

L

  • Lean Management

    Process optimization approach designed to minimize waste and harmonize processes.

  • 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.

M

  • Matching principle

    IFRSs: recognition of income and expense of the same events in the same period.

O

  • 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.

  • Other long-term benefits

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

P

  • Profit retention

    Profits retained in a company for future investment.

  • Projected unit credit method

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

R

  • Recoverable amount

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

  • RoCE

    Return on capital employed. Business indicator that measures how efficiently companies use the capital employed. For this purpose, RoCE compares EBIT with the assets tied up in the company.

S

  • 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.

  • Stage of completion method (SoC)

    IFRSs: recognition of service orders according to their progress.

  • 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.

T

  • TEU

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

U

  • United Nations Global Compact

    Global pact between companies and the United Nations to support socially fair and environmentally sustainable globalization. The members undertake to follow ten principles in the areas of labor and human rights, environment, and anti-corruption. In Germany, the UN Global Compact Network Germany supports companies in strategically anchoring the ten goals.

W

  • Working capital

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

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