| A / AA / A+ class |
|
European certification given to appliances combining high performance and minimum energy consumption. |
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| Call rate |
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Number of service requests over total products sold.
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| CGU (Cash Generating Unit) |
|
The smallest identifiable group of activities that generate incoming cash flows and are largely independent
of incoming cash flows from other activities or groups of activities.
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| Corporate Governance |
|
Rules and codes of conduct disciplining the control of a company, its ownership structure and the
efficiency of its management in pursuing business objectives.
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| Defined benefit plan |
|
Fixed income pension scheme that a company must pay its retired employees. Fixed contribution pension
scheme. The amount of income will depend on the contribution payments and on yields.
|
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| Defined contribution plan |
|
Fixed contribution pension scheme. The amount of income will depend on the contribution payments and
on yields.
|
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| EBITDA/EBIT |
|
Earnings before interest, taxes, depreciation and amortization (gross operating margin) / Earnings before
interest and taxes (operating margin).
|
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| EPS (Earning Per Share) |
|
Net profits (losses) for the year over the number of shares in circulation.
|
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| Fair Value option |
|
The possibility of stating at fair value certain assets and liabilities with specific characteristics.
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| Fair value |
|
Price at which an asset may be traded or a liability extinguished in a free transaction between informed
and consenting parties.
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| Financial covenant |
|
Clauses stipulated to discipline financial events (esp. loans and credit lines).
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| Free cash flow |
|
Cash flows from operating business and investment activities net of dividend payouts and capital increases.
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| Hedge accounting |
|
A method that designates a hedging instrument, normally a derivative, as an offset to changes in the fair
value or cash flows of a hedged item.
|
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| IAS/IFRSTM |
|
International Accounting Standards/International Financial Reporting Standards.
|
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| Impairment test |
|
An assessment carried out at each balance sheet reference date to search for indications that assets may
have undergone lasting loss of value and to estimate recoverable values.
|
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| Net working capital |
|
The difference between short-term assets and short-term liabilities of a trade and financial nature.
|
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| Operating Cash Flow (OCF) |
|
Cash flows generated by operating business.
|
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| PMS (Performance Management System) |
|
A system for assessing employees’ professional performance, so they can improve and develop their careers
on the basis of their aptitudes and competencies.
|
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| Projected Unit Credit (PUCM) |
|
An actuarial method of stating balance sheet items (esp. employee severance indemnity).
|
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| Purchase price allocation |
|
Fair value statement of all the major assets and liabilities of an acquired company.
|
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| Retirement awards |
|
Awards and ceremonies accorded to meritorious employees on retirement.
|
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| RoHS |
|
EC Directive disciplining the use of hazardous substances in electrical and electronic equipment.
|
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| Securitization |
|
A company’s sales to commercial intermediaries; goods entering a point of sale.
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| Sell in |
|
Without recourse transfer of a portfolio of receivables in exchange for an issue of securities secured by the
receivables themselves.
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| Sell out |
|
Sales by retailers to consumers; goods leaving a point of sale.
|
| Special economic zone |
|
A geographical area with laws different from those of the country to which the area belongs, usually for
the purpose of attracting foreign investment.
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| Stock option |
|
A faculty granted by enterprises to their managers whereby the latter may buy or subscribe a certain
number of company shares at a favourable, predetermined price and within a limited period of time.
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| Supply chain |
|
The organizational and IT structure that manages and co-ordinates business processes, from procurement
of materials and components through to delivery of finished products.
|
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| Vesting period |
|
The time required before options on shares can be exercised and the shares can be subscribed by the holder
under a given stock option plan.
|
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| WACC (Weighted Average Cost of Capital) |
|
The average cost of a company’s various sources of funding, including both debt and equity; usually used
an indicator to track a company’s operating cash flows and assess its financial position and EVA (economic
value added).
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| WEEE (Waste Electrical and Electronic Equipment) |
|
EU Directive regulating the end of the life cycle of household appliances.
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| WRAP (Web Ready Appliances Protocol) |
|
An exclusive technology enabling household appliances to dialogue amongst themselves and with the
outside world. Wrap is also the Group company specializing in electronics research.
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