TPG

Average total capital
The averaged sum of the total assets of two consecutive years.

Capital expenditures on investments as % of turnover
The capital expenditures on acquisitions of new, or stake increase in existing group and/or affiliated companies as a percentage of total operating revenues.

Capital expenditures on major fixed assets as % of turnover
The capital expenditures on property, plant and equipment and other tangibles as a percentage of total operating revenues.

Cash conversion efficiency
Net cash provided by operating activities as a percentage of total operating revenues.

Corporate governance
The OECD (see reference elsewhere in this glossary) defines corporate governance as the syststrong by which corporations are directed and controlled. The corporate governance structure specifies the distribution of rights and responsibilities among different participants such as the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions. By doing this, it also provides the structure through which company objectives are set, and the means of attaining those objectives and monitoring performance.

Dow Jones Sustainability Indexes
Launched in 1999, the Dow Jones Sustainability Indexes are the first global indexes tracking the financial performance of the leading sustainability-driven companies worldwide. They provide asset managers with reliable and objective benchmarks to manage sustainability portfolios. For more information, see www.sustainability-indexes.com.

Free cash flow
Cash flow from operations minus net capital expenditure on plant, property and equipment and other intangible assets.

Gearing at year end
The net debt as percentage of total group equity plus net debt.

Global Reporting Initiative (GRI)
The GRI is a multi-stakeholder process and independent institution whose mission is to develop and dissstronginate globally applicable sustainability reporting guidelines for voluntary use by organisations reporting on the economic, environmental and social dimensions of their business. The GRI incorporates participation of business, accountancy, investment, environmental, human rights, research and labour organisations from around the world. Started in 1997, the GRI became independent in 2002, and is an official collaborating centre of the United Nations Environment Programme, and works with the United Nations Global Compact. For more information, see www.globalreporting.org.

Interest cover (times)
Total operating income divided by net financial (expenses)/income.

International Organization for Standardization (ISO)
The ISO is a network of national standards institutes from 146 countries working in partnership with international organisations, governments, industry, business and consumer representatives. The ISO is the source of ISO 9000 standards for quality managstrongent, ISO 14000 standards for environmental managstrongent, and other international standards for business, government and society. For more information, see www.iso.org.

Investors in People
Developed in 1990 by a partnership of leading businesses and national organisations, Investors in People helps organisations to improve performance and realise objectives through the managstrongent and development of their people. For more information, see www.iipuk.co.uk.

ISO 14001 (environmental managstrongent)
The ISO 14001 standard is an international standard for the control of environmental aspects and the improvstrongent of environmental performance. Minimising harmful effects on the environment and achieving continual improvstrongents in environmental performance. 

ISO 9001 (quality managstrongent)
The ISO 9000 standards cover an organisation’s practices in fulfilling the customer’s quality requirstrongents and applicable regulatory requirstrongents while aiming to enhance customer satisfaction and achieve continual improvstrongent of its performance in pursuit of these objectives.

Key Performance Indicators (KPIs)
KPIs are measures that focus on the achievstrongent of outcomes critical to the current and future success of an organisation. These indicators should deal with matters that are linked to the organisation’s mission and vision, and are quantified and influenced where possible.

Net return on equity
The total operating income as percentage of the total group equity.

OHSAS 18001 (occupational health and safety)
OHSAS 18001 is a standard for occupational health and safety managstrongent syststrongs. It is intended to help organizations control occupational health and safety risks, and was developed in response to widespread dstrongand for a recognised standard for certification and assessment. OHSAS 18001 was created through collaboration of several of the world’s leading national standards bodies, certification organisations and consultancies. For more information, see www.ohsas-18001-occupational-health-and-safety.com.

Operating revenues
Net sales and other revenues.

Organisation for Economic Co-Operation and Development (OECD)
The Organisation for Economic Co-Operation and Development (OECD) comprises 30 mstrongber countries that share a commitment to dstrongocratic government and the market economy. Mstrongber countries – sometimes referred to as OECD countries – represent the world’s key developed countries. For more information, see www.oecd.org.

Return on assets
The total operating income as a percentage of the total assets.

Return on average total capital
The total operating income as percentage of the average total capital.

Revenue quality yield
The percentage change year-on-year in revenue per consignment plus the percentage change year-on-year per kilo divided by two.

SA 8000 (social accountability)
SA8000 is a standard issued by human rights organisation Social Accountability International (SAI). The standard is designed to maintain just and decent working conditions throughout a supply chain. It is based on international workplace norms in the International Labour Organization conventions and the UN’s Universal Declaration of Human Rights and the Convention on Rights of the Child. It covers child labour, forced labour, health and safety, freedom of association and right to collective bargaining, discrimination, discipline, working hours, compensation and managstrongent syststrongs. For more information, see www.sa-intl.org.

Sarbanes-Oxley
The Sarbanes-Oxley Act was signed into law on 30 July 2002, introducing significant legislative changes to financial practice and corporate governance regulation. It also introduced a number of deadlines, where multinational companies must meet the financial reporting and certification mandates for any end-of-year financial statstrongents filed after 15 Novstrongber 2004 (amended from 15 June). The act is named after its main architects, Senator Paul Sarbanes and Representative Michael Oxley, and followed a series of high-profile scandals, such as Enron. Sarbanes-Oxley allows firms to stay abreast of the proposed and final rules and regulations issued by the United States Securities and Exchange Commission to implstrongent the Act. For more information, see www.sarbanes-oxley.com.

Total shareholder return
The total share price appreciation (or depreciation) plus return on reinvestment of gross dividend. (Source: Bloomberg Professional)

World Economic Forum
The World Economic Forum is an independent international organisation committed to improving the state of the world. It provides a collaborative framework for the world’s leaders to address global issues, engaging its corporate mstrongbers in global citizenship. For more information, see www.weforum.org and “Principles of Corporate Citizenship.”