Kendrion

Kendrion N.V. successfully completes equity offering

Glossary

Kendrion uses the explanatory vocabulary for financial wording as mentioned below.

Code of Conduct	A set of behavioural rules and standards which broadly reflects the -values that should guide all employees, for example in relation to doing business responsibly, safety, health and the environment.
Compliance Officer	The Kendrion employee who is charged with supervising compliance with the regulations to prevent insider trading.
Corporate governance	The management of the business, the supervision of that management, the rendering of account thereon and the way in which stakeholders can influence decisions.
COSO Enterprise Risk Management Framework	Risk management framework based on the system proposed by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) (see www.coso.org).
Defined benefit plan	A pension scheme where the employee is promised a pension the level of which depends on their age, salary and years of service. The commitment carried in the statement of financial position is the cash value of the projected pension benefits on the financial position date, less the fair market value of fund investments.
Defined contribution plan	Pension scheme where the employer pays agreed contributions to a fund or insurance company and no obligation arises for the employer to pay supplementary contributions in the event of a shortfall in the fund or insurance company.
Derivatives	Derivative financial products which do not represent a direct cash value; they include options, forward exchange contracts and swap contracts.
ERP system	Enterprise Resource Planning:an ICT system which supports all the business processes within an organisation, such as purchasing, sales and accounting, with data being exchanged between departments.
Fair value	The current value. For assets or liabilities for which there is an active market, this is generally the market value.
Hedging	The covering of financial risks, usually relating to (undesirable) movements in market interest rates, exchange rates and raw material prices.
IFRS	IFRS International Financial Reporting Standards, also referred to as IAS (International Accounting Standards). With effect from 2005, all listed companies in the European Union must comply with these accounting rules.
Interest rate swap	Derivative financial product whereby an agreement is reached with a counterparty (bank) to exchange specific interest payments on a predetermined underlying amount during a predetermined period. A variable interest rate (e.g. three-month EURIBOR) is usually swapped for a fixed interest rate.
Mid-term Plan	A plan for the medium term (three years) which is drawn up by the Group annually to facilitate the management and control of its organisation in the short to medium term.
Normalisation	Figures from which exceptional effects have been eliminated in order to improve comparability and transparency.
Number of employees (FTEs)	Number of employees stated in full-time equivalents.
Organic (sales) growth	Growth in revenue after eliminating the effects of acquisitions and disposal of activities.
Return on investment (ROI)	The result before amortisation of intangibles related to acquisitions, interest and tax as a percentage of the average invested capital.
Return on sales (ROS)	The result before amortisation of intangibles related to acquisitions, interest and tax as a percentage of revenue.
Solvency ratio	The ratio of total equity to the financial position total.
Translation risk	Translation risk: a change in the value of an asset or liability of a subsidiary as a result of movements in the (non-euro) exchange rate.
TSR	Total shareholders return