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Additive manufacturing: Process by which digital 3D design data is used to build up a component in layers by depositing material, for instance in the form of fine powder.

AfS: Abbreviation of “Available for sale”.

Agenda 4 plus One: The Schaeffler Group’s program for the future to help execute the strategy “Mobility for tomorrow”. It includes the five categories Customer focus, Operational excellence, Financial flexibility, Leadership and talent management, as well as Securing long-term competitiveness and value creation. 20 strategic initiatives that have significance worldwide and have been selected from a variety of initiatives are in turn assigned to these categories.

AKO: Abbreviation of “Aftermarket Kitting Operation”: project to establish a state-of-the-art assembly and packaging center.

Automotive Aftermarket: New division established effective January 1, 2018. With its Automotive Aftermarket division, the Schaeffler Group is represented worldwide in the spare parts business, offering both products and services.

Automotive OEM: As a reliable partner to nearly all automobile manufacturers, the Schaeffler Group’s Automotive OEM division offers important supplier expertise for the entire drive train (engines, transmissions, chassis, and accessory units). The division’s product range includes components and systems for vehicles with drive trains based on internal combustion engines as well as for hybrid and electric vehicle applications.

Average capital employed: Calculated as the sum of property, plant and equipment, intangible assets, and working capital, which in turn comprises trade receivables and inventories net of trade payables. The annual average is determined as the mathematical average of the balance at the end of each of the four quarters.


Bearing & Components Technologies (BCT): Functionally coordinated department of the Schaeffler Group that acted as an internal supplier.

Bio-Hybrid: The Bio-Hybrid is an advanced e-bike offering protection from the weather as well as storage space and is aimed at dealing with the growing volume of traffic in urban centers.


Capex: Capital expenditures on property, plant and equipment and intangible assets.

Capex ratio: Capital expenditures on property, plant and equipment and intangible assets as a percentage of revenue.

Capital employed: Working capital plus property, plant and equipment and intangible assets.

Cash flow: Net inflow of funds generated by an entity’s business activities. Cash flow is a measure of an entity’s ability to generate financing internally.

CEEMEA: Abbreviation of “Central and Eastern Europe & Middle East and Africa”.

Charta der Vielfalt: “Diversity charter”; corporate initiative to promote diversity within companies and institutions. Organizations are encouraged to create a working environment free of prejudice. All employees deserve respect, irrespective of gender, nationality, ethnic background, religion or worldview, disability, age, and sexual preference and identity.

Cloud: Digital platform that can be used to store and transfer data.

Code of Conduct: A set of rules adopted or accepted by companies, in this case the Schaeffler Group, that defines rules for the employees and typically contains ordinances and prohibitions.

Common non-voting share: Non-voting no-par-value bearer shares carrying a preferential right to profits in the form of a preferred dividend.

Common share: Share conveying all rights laid down in the German Stock Corporations Act, for instance the right to vote at shareholder meetings, the right to dividends, etc.

Compliance: Ensuring that all rules and regulations applicable to a process are adhered to.

Compliance Fit & Proper: Schaeffler Group initiative to implement certain compliance requirements and measures.

CORE: The Schaeffler Group's program designed to realign the operations of the Industrial division in order to return the division to lasting growth and increased profitability.

Corporate governance: Set of legal and constructive requirements for the management and supervision of companies.

COSO model: An internal control model to help document, evaluate, and design internal control systems.

Cost of capital: Calculated by multiplying average capital employed with the cost of capital percentage.

Cost of capital percentage: The cost of capital percentage is derived from the return investors require for providing capital to the entity.


Data analytics: A process for analyzing large data sets in order to test hypotheses and recognize hidden patterns to help organizations make informed business decisions.

DAX: Abbreviation of “Deutscher Aktienindex” (“German Share Index”): leading share index of Deutsche Börse.

Debt issuance program: A debt issuance program designed to establish a flexible platform for obtaining funding from the debt capital markets in the future.

Declaration of conformity: Declaration by the Board of Managing Directors and the Supervisory Board in accordance with section 161 AktG regarding whether the company has complied and/or is complying with the German Corporate Governance Code and which recommendations were and/or are not applied and the reasons there-fore.

Deferred taxes: Deferred tax assets and liabilities are calculated based on temporary differences between carrying amounts for financial reporting and for tax purposes. They include differences arising on consolidation, loss carryforwards, and tax credits.

Degree of localization: Relation of a region’s total sales to sales volume manufactured in that region.

Derivative financial instruments: Financial products whose value is predominantly driven by the price, price changes, and expected prices of the underlying instrument.

Digital Agenda: Initiative under the program for the future, the “Agenda 4 plus One”, for coordinating, establishing, and expanding the Schaeffler Group’s digital activities. Starting with the customer, it reflects four central digital business scenarios (Products & services, Machines & processes, Analyses & simulation, User experience & customer value) the Schaeffler Group is focusing on.

Diversity: Diversity with respect to aspects including gender, ethnic origin, age, disability, sexual orientation, religion, life style.

Dividend payout ratio: Percentage of the Schaeffler Group’s net income before special items that is paid out to shareholders in dividends.

DJIA: Abbreviation of “Dow Jones Industrial Average”: leading share index of the U.S. stock exchange.

Drive-by-Wire-Technology: This technology facilitates what is referred to as “Steer-by-Wire”-Functionality (see “Steer-by-Wire-Technology”) which enables safe and reliable vehicle steering by purely electronic means.

Dual-mass flywheel: Component of the drive train of modern vehicles (passenger cars, buses, commercial vehicles) that helps reduce torsional vibration.


Earnings per share: Earnings per share are calculated by dividing net income attributable to Schaeffler AG’s shareholders by the weighted average number of common and common non-voting shares outstanding during the reporting period.

EBIT: Abbreviation of “earnings before interest and taxes”: earnings before financial result and income taxes.

EBIT before special items: Earnings before financial result, income taxes, and special items.

EBITDA: Abbreviation of “earnings before interest, taxes, depreciation and amortization”: earnings before financial result, income taxes, depreciation, amortization, and impairment losses.

EBITDA before special items: Earnings before financial result, income taxes, depreciation, amortization, and impairment losses before special items.

EBIT margin: EBIT as a percentage of revenue.

EDC: Abbreviation of “European Distribution Center”: represents a significant element of the strategic alignment of the Schaeffler Group’s logistics activities.

Effectiveness: The effectiveness of a hedging instrument is the degree to which changes in the fair value or the cash flows that are attributable to a hedged risk are offset by the hedging instrument.

Effective tax rate: Income tax expense as a percentage of earnings before income taxes.

Electric axle: With the electric axle, Schaeffler has developed a modular kit solution for hybrid and all-electric vehicles. The fully electric drive system features a modular design for flexible use, either as coaxial or parallel-axis versions on the front and rear ends, and can be complemented by functions such as torque vectoring or a parking lock as needed.

Electric axle actuator (EAA): Schaeffler’s electric axle actuator facilitates particularly energy-efficient actuation of multi-speed electric axle systems and is based on the proven active interlock transmission actuator with integrated interlocking, but operates without a selector shaft. Schaeffler also develops the related software to ensure optimum performance in the entire system.

Electric camshaft phasing unit: The electromechanical camshaft phasing unit adjusts the camshaft to the relevant operating conditions of the engine even faster and more precisely. Using electromechanical technology, the camshaft can be adjusted at a crankshaft angular velocity of up to 600 degrees per second. The significantly increased range of adjustment allows for modern, highly efficient combustion processes.

EMAS: Abbreviation of “Eco-Management and Audit Scheme”: community eco-management and audit scheme setting out requirements under which Schaeffler Group locations are validated.

E-Mobility: Abbreviation of “electric mobility”: mobility that is powered by electricity. This includes electric and hybrid vehicles. Ranging from high-voltage hybrid modules and electric axles through to wheel hub motors – the Schaeffler Group offers a broad range of products for the age of electrified powertrain architectures.

EnEHS: Abbreviation of “energy, environment, health and safety”.

Equity ratio: Shareholders’ equity including non-controlling interests as a percentage of total capital.

ESMA: Abbreviation of “European Securities and Markets Authority”.

Euribor: Abbreviation of “Euro Interbank Offered Rate”: interest rate that European banks charge each other on unsecured loans denominated in euro.

EURO MTF: Abbreviation of “Multilateral Trading Facility”: trading platform similar to a stock exchange that brings together sell and buy orders for shares and other financial instruments according to a de-fined set of rules resulting in trades.

Euro STOXX 50: Reflects the share trends of the 50 largest companies in the euro currency area.

eWheelDrive: Schaeffler’s electric wheel hub motor “eWheelDrive” offers innovative technology for mobility of tomorrow. This highly-integrated drive facilitates completely new vehicle designs. Advantages in terms of space utilization, maneuverability, driving dynamics, and active safety predestine it as a future technology for automated driving.


Factory for Tomorrow: Factory for Tomorrow is a response to the current megatrends and the prototype for the Schaeffler Group’s factory of the future. For instance, the concept is being implemented at the new plant under construction in Xiangtan, China, for the first time.

Fair value: The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Financial covenant: Agreement included in the terms of loan or bond agreements or in the form of side-agreements requiring the debtor to adhere to certain limits defined in terms of financial indicators.

FLAC: Abbreviation of “Financial liability at amortized cost”.

Free cash flow (FCF): Sum of cash flows from operating activities and cash flows from investing activities.

Fully variable valve control system UniAir: First electro-hydraulic system allowing for the fully variable control of the intake valves in fuel-powered engines. This reduces fuel consumption while at the same time increasing performance and improving torque.


Gearing ratio: Ratio of net financial debt to shareholders’ equity including non-controlling interests.

Gender: Social dimension of masculinity or femininity. Refers to the culturally specific and historically variable roles, expectations, values, and orders associated with either masculinity or femininity.

Generation Y: Also known as “Millennials”; refers to the generation born between 1980 and 1995.

Generation Z: Also known as “Gen Z”; refers to the generation born between 1995 and 2010.

German Corporate Governance Code: Presents essential statutory regulations for the management and supervision of German listed companies and contains, in the form of recommendations and suggestions, internationally and nationally acknowledged standards of good and responsible corporate governance.

Goodwill: Amount by which the cost of a business combination exceeds the sum of the fair values of the individually identifiable assets and liabilities acquired.

GRI G4: Abbreviation of “Fourth Generation Global Reporting Initiative”: initiative that formulates guidelines for preparing corporate sustainability reports.

Gross margin: Gross profit as a percentage of revenue.

Group Compliance and Risk Committee (GCRC): The Schaeffler Group’s centralized committee responsible for coordinating the flow of information about risks throughout the organization.


Hedge accounting: Using financial instruments to hedge items recognized in the statement of financial position and future cash flows. Both effectiveness and documentation of the hedging relationship are prerequisites for reflecting hedging relationships in the financial statements.

HfT: Abbreviation of “Held for trading”.


IAS: Abbreviation of “International Accounting Standards”.

IASB: Abbreviation of “International Accounting Standards Board”.

IATF 16949:2016: Standard for quality management in the automo-tive sector.

IFRIC: Abbreviation of “International Financial Reporting Interpretation Committee”.

IFRS: Abbreviation of “International Financial Reporting Standards”.

IHO Holding: A group of holding companies held indirectly by the Schaeffler family.

IHS Markit: Abbreviation of “Information Handling Services”: research institution based in London, England.

Impact of currency translation: Revenue figures are adjusted for currency fluctuations by translating revenue for both the current and the prior year reporting period using the same exchange rate.

Industrial: Division of the Schaeffler Group that includes the business with customers in the mobility, production machinery, energy and raw materials, and aerospace sectors.

Industry 4.0: Refers to the integration of industrial production with state-of-the-art information with communications technology.

Invention reports: Invention reports represent the starting point for potential patent registrations. Ideas and inventions of Schaeffler Group employees are reported to the Schaeffler Group’s centralized patent department and analyzed for potential use in a patent registration.

Investment grade: This designation is only assigned for ratings used, by debt investors in particular, as a positive indicator in assessing the probability that liabilities will be repaid.


LaR: Abbreviation of “Loans and receivables”.


M&A: Abbreviation of “Mergers & Acquisitions”: mergers of companies and acquisitions/disposals of companies or interests in compa-nies.

Machine learning: A subset of artificial intelligence (AI). It enables IT systems to use data sets and algorithms to recognize patterns in order to increase efficiency and generate solutions independently.

MDAX: Abbreviation of “Mid-Cap-DAX”: comprises the shares of the 50 German companies directly below the 30 DAX companies in terms of trading volume and market capitalization.

Mild hybrid (48 Volt): See “System 48 Volt”.

Mobility for tomorrow: The Schaeffler Group's strategy, consisting of 4 key elements: vision and mission, 8 strategic pillars, the excellence program “Agenda 4 plus One” comprising 20 strategic initiatives, and the Schaeffler Group's Financial Ambitions 2020.


Net debt to EBITDA ratio: Ratio of net financial debt to EBITDA.

Net financial debt: Total of current and non-current financial debt net of cash and cash equivalents.

Net Promoter Score (NPS): Used as a measure of customer loyalty.

Nikkei 225: Leading share index of the Japanese stock exchange.

Non-controlling interest: Interest in the company’s shareholders’ equity held by third parties that does not give the holder control.


OCI: Abbreviation of “other comprehensive income”: total income recognized directly in shareholders’ equity less total expenses recognized directly in shareholders’ equity.

OEM: Abbreviation of “original equipment manufacturer”: manufacturer of a branded product.

OES: Abbreviation of “original equipment supplier”: supplier manufacturing spare parts for distribution by the automobile manufacturer under its own brand.


Plug-in hybrid: Motor vehicle with a hybrid drive whose battery can be charged by the internal combustion engine as well as by connect-ing to the power grid.


R&D ratio: Research and development expenses as a percentage of revenue.

Rating: Assessment of a company’s creditworthiness by rating agencies.

REPXPERT: Part of the Automotive Aftermarket division; offers numerous services covering every aspect of products and repair solutions.

Responsibility for tomorrow 2030+: The Schaeffler Group’s sustainability strategy. Is based on the Schaeffler Group’s mission and vision and supports the objective of adding long-term shareholder value. Understanding the internal and external interests and expectations vis-à-vis the company and taking them into account in order to add long-term value is essential to this.

Revolving credit facility (RCF): Contractually agreed credit facility that can be utilized repeatedly.

ROCE: Abbreviation of “return on capital employed”: ratio of EBIT to average capital employed.


Schaeffler Academy: Schaeffler Academy combines all personnel development activities at Schaeffler worldwide. It supports strategic corporate objectives, promotes a culture of lifelong learning, and enables employees to achieve their personal and professional goals.

Scope of consolidation: Total of all companies included in the consolidated financial statements.

SHARE: Abbreviation of “Schaeffler Hub for Advanced Research”: research collaborations of the Schaeffler Group with research and teaching institutions.

SHARE at FAU: Research collaboration of the Schaeffler Group with Friedrich-Alexander-University of Erlangen-Nuremberg.

SHARE at KIT: Research collaboration of the Schaeffler Group with the Karlsruhe Institute of Technology.

SHARE at NTU: Research collaboration of the Schaeffler Group with Nanyang Technological University in Singapore.

SHARE at SWJTU: Research collaboration of the Schaeffler Group with Southwest Jiaotong University in Chengdu, China.

SIC: Abbreviation of the former “Standing Interpretations Committee”.

Smart EcoSystem: With its Smart EcoSystem, the Schaeffler Group is setting up a digital infrastructure for new business models based on digital services that increases availability, reliability, and process quality of machines and plants.

Space Drive-Technology: One of the leading Drive-by-Wire -Technologies (see “Drive-by-Wire-Technology”). Space Drive facilitates what is referred to as “Steer-by-Wire”-Functionality (see “Steer-by-Wire-Technology”) which allows for safe and reliable vehicle steering by purely electronic means. Space Drive is the only system of its kind to be licensed for on-road use in multiple countries worldwide.

Special items: Special items are items whose nature, frequency, and/or size may render the financial indicators less meaningful for evaluating the sustainability of the Schaeffler Group’s profitability.

Steer-by-Wire-Technology: Allows for safe and reliable vehicle steering by purely electronic means.

STOXX Europe 600: Reflects the share trends of the 600 largest listed companies from 18 European countries.

STOXX Europe 600 Automobiles & Parts: Reflects the share price trends of the European automobile manufacturers and automotive supplier sector contained in the cross-sector STOXX Europe 600 index.

Sustainability: Sustainability means utilizing natural resources while taking economic, ecological, and social conditions into account without ignoring the interests of future generations.

SVA: Abbreviation of “Schaeffler Value Added”: represents EBIT less the cost of capital.

System 48 Volt: Schaeffler’s 48 Volt hybrid module (mild hybrid) facilitates the introduction of hybridization and offers attractive potential for reducing CO2. The disc-shaped, compact hybrid module for electrifying vehicles with manual transmissions is mounted as one unit between the engine and the transmission. The module requires neither changes to the transmission nor a water cooling system. Power can be recuperated by braking.


Thermal management module: Temperature control unit for the entire drive train. It is integrated in a compact component manufactured from high-strength plastic and combines numerous functions. The thermal management module enables Schaeffler to help unlock greater potential through the optimization of internal combustion engines.

Three lines of defense model: Model assigning clear responsibility for dealing with risks to the company’s continued existence or development and based on the principle that primary responsibility for a risk lies with its originator.

Torque converter: Hydraulic component that facilitates the transmission of force between components rotating at different speeds.

Torsional vibration damper: Modern engines can be driven at extremely low engine speeds, and the trend is toward ever higher engine torques with transmissions optimized with respect to weight and consumption. The objective is to further reduce fuel consumption and CO2 emissions. However, this results in increased vibration in the engine. This is exactly where the innovative and multi-stage damping systems come into play – reducing vibrations, which quietens the entire drive train.


Valve-lash adjustment element: Components that are used for valve-lash adjustment facilitate precise valve lash and a low-friction valve train – maintenance-free over the entire engine life. The Automotive OEM division develops and manufactures valve-lash adjustment components for engines with overhead camshafts or overhead valves, for direct and indirect drive, as well as for hydraulic or mechanical lash adjustment.


WLTP: Abbreviation of “Worldwide harmonized light vehicles test procedure”: Emissions testing methodology for determining fuel consumption and exhaust emissions, harmonized worldwide.

Working capital: Inventories plus trade receivables less trade payables.


ZOLLHOF Tech-Incubator Nuremberg: Digital business incubator located in Nuremberg. The incubator provides office space, consulting, and coaching and helps establish contacts with scientists and companies.

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