Reebok 2012 Annual Report Download - page 277

adidas Group
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2012 Annual Report
Additional Information
255
2012
Glossary
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05.2
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Socially Responsible Investment
(SRI)
Socially responsible investments evaluate a
company’s efforts through in-depth analysis of
sustainability programmes and consider these
aspects in the investment decision process. The
evaluation looks at how companies approach their
social and environmental responsibilities. Socially
responsible investments are often seen as a
method to identify better-managed companies with
a lower risk profile.
Stakeholders
All groups that have a direct or indirect interest in
the efforts and results of a company, e.g. lenders,
shareholders, consumers, retailers, suppliers,
licensees, business partners in the supply chain,
employees, international sport federations, non-
governmental organisations, media, etc.
Swap
A derivative in which two counterparties agree to
exchange one stream of cash flows against another
stream.
Syndicated loan
A syndicated loan is one that is provided by a
group of lenders and is structured, arranged and
administered by one or several commercial banks
or investment banks, known as arrangers.
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T
Top and bottom line
A company’s bottom line is its net income
attributable to shareholders. More specifically,
the bottom line is a company’s income after all
expenses have been deducted from revenues. The
top line refers to a company’s sales or revenues.
Top-down, bottom-up
Specific concept for information and knowledge
processing. In a first step, information and
empowerment of management decisions is
delegated from top to bottom. After going into more
detail on the bottom level, the final information/
decision is then transported back to the top.
Toxproof/TÜV Rheinland
The Toxproof mark is a safety mark issued by TÜV
Rheinland, especially for testing the quantities of
toxins in products.
Trend scouting
Identification and commercialisation of future
trends, particularly lifestyle trends.
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V
Vertical retailer
A retail company that (vertically) controls the entire
design, production and distribution processes of its
products.
Visual merchandising
Activity of promoting the sale of goods, especially
by their presentation at the point-of-sale. This
includes combining products, environments and
spaces into a stimulating and engaging display to
encourage the sale of a product or service.
VOCs (Volatile Organic Compounds)
Volatile organic compounds (VOCs) are organic
chemical compounds that can vaporise into the
air and may be harmful and cause breathing and
health problems. VOCs are by-products of the shoe
manufacturing process.
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W
Weighted average cost of capital
(WACC)
Calculation of the cost of capital according to the
debt/equity structure, utilising a weighted average
cost of capital (WACC) formula. The cost of equity is
typically computed utilising a risk-free rate, market
risk premium and a beta factor. The cost of debt is
calculated through the risk-free rate, credit spread
and average tax rate.
Working capital
A company’s short-term disposable capital used to
finance day-to-day operations.
Working capital = total current assets – total
current liabilities
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SEE ALSO OPERATING WORKING
CAPITAL.
World Business Council for
Sustainable Development (WBCSD)
The WBCSD is a global association of around
200 international companies dealing exclusively
with business and sustainable development
:
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WWW.WBCSD.ORG.
World Federation of the Sporting
Goods Industry (WFSGI)
The WFSGI is an independent non-profit
organisation formed by sporting goods brands,
manufacturers, suppliers, retailers and other
sporting industry-related businesses. It is the
world authoritative body for the sporting goods
industry and is officially recognised by the
International Olympic Committee (IOC) as the
industry representative
:
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WWW.WFSGI.ORG.