Glossary

Associated companies
Companies upon which a significant influence can be exercised but in which there is no majority holding or controlling interest. The holding is usually between 20% and 50%.

BOT
Abbreviation for build-operate-transfer. BOT projects, also known as public-private partnerships, are private-sector solutions to real estate or infrastructure tasks in the public sector, with planning, construction and long-term operation from one source. Refinancing of the entire investment takes place during the operational phase by means of user fees.

Business-unit-related financial assets / interest income
Accounting category in Bilfinger Berger’s return-on-capital-employed controlling for the assessment of appropriate capital resources of the respective unit of the Group.

Capital employed
The average capital tied up in operative assets, which, in the context of return-on-capitalemployed controlling, is expected to yield a return at least as high as the weighted average cost of capital (WACC).

Cash earnings
Financial performance measure for the ability of a company to provide its own funds. Measures the financial surplus earned in a certain period from current, profit-relevant activities, but without taking into consideration the change in working capital.

Cash flow
Figure for the assessment of the financial strength and profitability of a company in terms of the flow of funds. The statement of cash flows shows the changes in marketable securities and cash during an accounting period in terms of the cash flows from, or into, operating, investing and financing activities.

Corporate governance
The internationally common term for a responsible system of corporate management and monitoring with a focus on long-term value creation.

CTA
Abbreviation for "contractual trust arrangement," a form of financing pension obligations whereby pension plan assets covering the Company’s pension obligations are transferred to a trust fund. In consolidated financial statements prepared according to IFRS, this has the effect of reducing the balance-sheet total, as the plan assets are netted out against the corresponding pension provisions. The effect is to improve the international comparability of the consolidated financial statements. Deferred taxes Asset or liability items that compensate for different accounting periods compared with earnings according to the tax financial statements.

Deferred taxes
Asset or liability items that compensate for different accountig periods compared with earnings according to the tax financial statements. Deffered tax expenses / income are corrections to the actual tax expense derived from the tax financial statements for the period. The primary aim is to show an income-tax expense in a proper relation to the reported earnings before taxes.

Discounted cash-flow method
Valuation model for projects and ventures. All future free cash flows are discounted to their present values and added up. Key factors are the cost of capital (discount), the future free cash flows and the period of time involved.