Glossary - C

Cash flow

A company´s net cash inflow generated from business operations.

CASH MANAGEMENT SYSTEM

Centralized administration, control and bundling of liquid resources within the Group to optimize the net interest result.

Catalyst

Accelerates and controls chemical reactions by acting as a mediator.

Cathode material

Material for positive electrodes (cathodes) in batteries.

CHANGE OF CONTROL PROVISION

Clause in an employment contract making provision for a change of ownership.

Chemical Index

Denotes the Prime Chemicals Performance Index, which includes the twelve major German chemical corporations in the Prime Standard.

CIS

Countries belonging to the former Soviet Union.

Coal-to-liquid (CTL) process

Process for producing liquid fuel from coal. The coal is converted into synthesis gas, from which fuel is manufactured using so-called Fischer-Tropsch synthesis. The process serves to create a substitute for oil.

CODE OF CONDUCT

A binding code regulating the behavior of all Süd-Chemie Group employees worldwide, aimed at avoiding legal risks and ensuring the company´s good reputation among customers, authorities and the general public based on responsible action.

COMPLIANCE

Measures taken by a company to ensure compliance with rights, laws and internal corporate guidelines.

Consolidated Net Income

Profit for the period

Consolidation

Summary of the individual financial statements prepared by each group member, adjusted to eliminate all intercompany transactions. The total number of all companies included is known as the scope of consolidation.

Core coating

Mass for coating cores and moulds in the foundry industry. Coated core moulds improve casting quality and increase heat-resistance.

CORPORATE GOVERNANCE

Relates to the overall system of managing and supervising a company, including its organization, business principles and guidelines, as well as to the entire system of internal and external control and supervision mechanisms.

Cost of capital

Sum total of the return on capital required (both explicitly and implicitly) by providers of equity and borrowed capital. It represents the minimum amount which management must achieve by investing in suitable projects.

Credit facility

A syndicated loan jointly granted by several, or at least two banks in order to spread the risk.