Glossary - D

DAX

German Share Index (Deutscher Aktienindex), compiled by the German Stock Exchange (Deutsche Börse), reflects the performance of the thirty most important German stocks. Dividend payments are taken into account in addition to price performance.

Del credere risk

Risk that a purchaser may fail to meet, either in full or in part, a seller´s justified demand for payment in accordance with the purchase agreement, or to meet such demand by the due date. In addition to the principal claim, the supplier´s del credere risk also involves possible claims for damages and other ancillary claims, which may for instance include default interest and conventional penalties.

Distribution and administrative cost ratio

Reflects distribution and administrative costs as a proportion of revenue.

Fuel cell

Converts chemical energy into electric and thermal power, e.g. by converting hydrogen and oxygen into water.

DEBT COVENANTS

A ratio defining the Group´s entire consolidated financial liabilities as a percentage of the EBITDA. This key figure expresses the company´s debt capacity as a ratio of an earnings figure which is approximately equivalent to the cash flow.

Derivative

Substance deriving from an organic compound, but having modified chemical properties.

DIN/ISO 9001:2000

Standard for installing quality management systems drawn up by the International Organization of Standardization (ISO).

DIN/ISO 14001

Standard for installing environmental management systems, drawn up by the International Organization of Standardization (ISO).

Discounted cash flow method (dcf)

An enterprise valuation procedure which discounts the future cash flow forecast over a certain period at valuation date, using a cost of capital rate. The total discounted cash flow represents the net present value and is defined as the enterprise value.

Dividend

Portion of the profit distributed to its shareholders by a public limited company. The amount of profit distributed divided by the number of outstanding shares represents the dividend per share.

Dividend yield

The dividend yield is calculated by dividing the amount of the dividend by the current share price and multiplying by 100. It represents the yield per share on invested share capital.

DUE DILIGENCE

Systematic analysis of strengths and weaknesses prior to purchasing or selling corporate investments or going public, in order to provide a sound valuation of the entity and disclose potential risks.