Long-term incentive plan (LTI)
Components of Executive Board compensation with a long-term incentive effect, related both to internal measures of success as well as the performance of the Bilfinger Berger share price.
Non-recourse financing
Debt which is secured solely against the financed project, without the possibility of any recourse liability for Bilfinger Berger.
Output volume
This comprises the supply of goods and services by the Group and the pro-rated supply of goods and services by joint ventures in which the Group participates.
Percentage-of-completion method (POC)
Accounting method according to IAS 11 for longterm construction contracts. Contract costs and revenues are accounted for in accordance with the percentage of completion of the contract so that the realization of profits is shown in the income statement in line with the progress made by the project.
Performance share units (PSU)
Phantom shares that are granted to the members of the Executive Board as a part of their compensation within the framework of our long-term incentive plans depending on the development of value added.
Plan assets
Assets that serve to cover pension obligations and fulfill the conditions of IAS 19. In accordance with IFRS, plan assets are netted out against pension provisions, which reduces the balance-sheet total. See CTA.
Project-related financial assets / project-related interest income
Accounting category in Bilfinger Berger’s returnon- capital-employed controlling for the assessment of appropriate capital resources of the respective units of the Group.
Public-private partnership (PPP)
Public-private partnerships, are private-sector solutions to real estate or infrastructure tasks in the public sector, with design, financing, construction and long-term operation from one source. Refinancing of the entire investment takes place during the operational phase by means of user fees.
Return
The measure of earnings in return-on-capitalemployed controlling at Bilfinger Berger, derived from EBITA.
Return on equity
Measure of earnings which states the ratio between net profit and shareholders’ equity.
Return on output volume
Measure of profitability showing the ratio of EBITA to output volume.
ROCE
Abbreviation for ‘return on capital employed.’ Ratio between the earnings of a reporting period (return) and the average operative assets (capital employed).
Syndicated credit lines
Credit lines that are agreed upon with a group of banks (syndicate) under uniform conditions.
Statement of cash flows
Presentation of liquidity developments / flows of funds taking into consideration the sources and applications of funds within a certain period. The statement of cash flows shows the separate cash flows from, or into, operating, investing and financing activities.
Value added
Difference between ROCE and the weighted average cost of capital multiplied by capital employed. If value added is positive, this means that the return on capital employed is higher than the weighted average cost of capital.
WACC
Abbreviation for ‘weighted average cost of capital.’ Serves as a measurement of the financing of the operative assets in return-on-capital-employed controlling at Bilfinger Berger. It reflects the minimum required rate of return of the shareholders and the creditors.
Working capital
Factor for observing changes in liquidity. It shows the difference between current assets, without cash and marketable securities, and current liabilities.