DAX
German share index. (see
Share index)
Designated sponsor Banks or financial service companies at the stock exchange which, upon request or on their own initiative, place in the order book binding offers to buy and sell for certain shares and securities, thus increasing their tradability. Heidelberger Zement has also a designated sponsor so that the tradability of our share is ensured. Also called market maker.
Dividend Share-related payment from a public limited company’s profits, the amount of the dividend is decided upon by the shareholders’ Meeting following the proposal submitted by the Managing Board and the Supervisory Board. The dividend is paid against the presentation of the dividend coupon.
Due diligence A process of intensively examining the financial and economic situation as well as the planning of a company carried out by a third party (normally banks, auditors or lawyers). One of the goals is to identify success-relevant variable factors in the company and to show possible risks. A due diligence can be the prerequisite for the preparation of a prospectus prior to a going-public or for a capital increase. This procedure is also used in the run-op to a planned acquisition or sale of companies.
Earnings before interest and income taxes = EBITThe result of the operating activities. It measures the profitability of the company before the deduction of taxes and interests, thus offering a suitable basis for profit comparisons between international companies which are exposed to different tax rates. HeidelbergCement also includes in its operating result results from participations in subsidiaries and associated companies as well as extraordinary income.
Earnings per share (EPS) Result of the division of the company’s profit for the financial year by the number of issued shares. (see: PER).
EBITDA Earnings before interests and taxes, depreciation and amortisation.
European Medium Term Notes Bearer bonds that can be issued on a revolving basis on a European scale within the framework of an unlimited program. Normally, the notes have a duration of 2 years (optionally up to 10 years). They are brought about to institutional investors by banks appointed as traders during the private placement.
EVA Economic value added. A factor to measure the profitability of the deployed capital in the company. The value is the result of the difference between the profit for the financial year after tax adjusted for goodwill depreciations and other non-operating income elements on the one hand and the company’s capital costs on the other hand. Heidelberger Zement uses the EVA method to steer and support investment decisions and, thus, to create shareholder value.
Going public Conversion of a company into a public limited company or the listing of shares of a public limited company that was not yet listed on the stock exchange.