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Glossary
AMORTISATION AND DEPRECIATION
The systematic allocation of the depreciable amount of an asset over its useful life.
CASH FLOWS
Cash and cash equivalents generated by an entity over a certain period of time. Specifically, the difference between inflows (mainly cash revenue) and monetary outflows (costs for the period which required outflows).
CORE BUSINESS REVENUE
Income from the sale of goods and/or providing of services related to the entity’s core business, including all income/expense related to the entity’s core business and are of a recurring nature.
CORPORATE GOVERNANCE
Set of rules that monitor and direct the management and control of an entity. The corporate governance system establishes the segregation of duties and rights amongst the company personnel by assigning duties, responsibilities and decision-making powers.
DERIVATIVE FINANCIAL INSTRUMENTS
A financial instrument is defined as a derivative when its cost/return profile is based on cost/return parameters of other instruments (the “underlying”) which may be raw materials, currencies, interest rates, securities or share indices.
DIVIDENDS
Distribution of profits to shareholders approved by the shareholders in their meetings upon the proposal of the board of directors.
DIVIDEND PAYOUT
Costi sostenuti per svolgere l’attivitàThe ratio of dividends to profit for the period, equal to the percentage of profit distributed to shareholders in the form of dividends.
EQUITY
Total resources contributed by shareholders increased by retained earnings and decreased by losses.
EXCISE DUTY
Indirect tax for immediate payment, applied to the production or consumption of certain industrial goods (amongst which petrol products and natural gas).
INVESTMENTS
Costs for non-current assets whose utility is not limited to one reporting period.
LEVERAGE
Financial structure indicator; measures the degree of debt and is calculated as the ratio of net financial debt to net invested capital.
NET FINANCIAL DEBT
Debt indicator. Calculated as the difference between financial payables (net of financial receivables) and cash and cash equivalents.
NET INVESTED CAPITAL
Net investments made for operating reasons, being the sum of net working capital and non-current assets.
NON-CURRENT ASSETS
Items in the balance sheet, recognised net of the related amortisation, depreciation and impairment losses, with a long life. They are split into the following four main categories: “Intangible assets”, “Property, plant and equipment”, “Financial assets” and “Other non-current assets”.
OPERATING COSTS
Costs incurred to carry out the entity’s core business. The key costs are incurred for purchases, services, energy, consumables, personnel expense and maintenance.
OPERATING PROFIT (EBIT)
Difference between revenue and cost of goods sold in a certain period. The profit or loss of operations before costs and revenue from financial transactions and taxes.
PROFIT OR LOSS FOR THE PERIOD
Profit or loss obtained by deducting financial income or expense and income taxes from the operating profit or loss.
TSR (TOTAL SHAREHOLDER RETURN)
Total return on a share, calculated on an annual basis, considering both changes in share prices (difference between opening and closing price for the year) and dividends distributed.
