ANNUAL REPORT 2017

GLOSSARY

Anticipated order releases in the series parts business – In the System Parts segment, orders backlog represents anticipated releases over the next six months. The customer can postpone, amend or cancel these releases at any time. To that extent, orders backlog in the series parts business is merely an important leading indicator.

Artemis Beteiligungen I AG – Investment company controlled by Franke Artemis Holding/Michael Pieper, which acquired a majority share of 50.32 % in Feintool as of 30 September 2014. It acquired all the shares from its affiliate Artemis Beteiligungen III AG, which held a majority share in Feintool as of April 7, 2011.

Automatic transmission – This contributes to improved driving comfort in cars and helps reduce fuel consumption. Feintool's fineblanked and formed parts are ideally suited to the highly complex design and precision requirements. Types include continuously variable transmissions (CVT), dual clutch transmissions (DCT) and stepped automatic transmissions with up to nine gears at present.

Carbon Disclosure Project – A not-for-profit organization that aims to create greater transparency as regards climate-changing greenhouse gas emissions; it acts on behalf of investors by annually collecting data and information on CO2 emissions and climate hazards and risks, as well as the reduction targets and strategies of the companies taking part on a voluntary basis; it also manages the biggest database of its kind in the world.

Cash flow/drain – Periodic cash surplus/shortfall from operations; an indicator of the financial power of a company.

Chipless forming – Forming means changing the shape of sheet steel with tools using processes such as bending. Unlike forging and casting techniques, chipless forming shapes the piece without the use of mechanical processing or machining (removing material). Nor does it rely on heat (cold forming). Chipless forming is an efficient technique that is particularly suitable for the manufacture of complex precision components such as those required by the automotive industry.

Dual-clutch transmission – Automatic gearbox that uses two clutches to enable a fully automatic gear change without interrupting the flow of power.

Earnings per share (EPS) – Net income divided by the average number of shares in circulation.

EBIT – Earnings before interest and taxes: a company’s operating profit before deduction of interest and taxes.

EBIT margin – The ratio of EBIT to sales.

EBITDA – Earnings before interest, taxes, depreciation and amortization: a company’s earnings before taking account of these items; one of the most meaningful indicators of profitability.

EBITDA margin – The ratio of EBIT to sales.

Equity ratio – Ratio of shareholders' equity to total assets; key indicator of the financial stability of a company.

ERCO – The Ordinance Against Excessive Remuneration in Listed Companies Limited by Shares is a set of implementing rules issued by the Federal Council that takes effect on Jan-uary 1, 2014; however, listed companies have until their 2015 annual general meeting to ensure full implementation of all provisions. The background to the ordinance is the so-called Minder Initiative "against fat-cat salaries", which was accepted in a referendum of Swiss voters in March 2013.

Fineblanking – In contrast to conventional blanking, which uses one force only (cutting force), fineblanking involves three forces. Two firmly clamp the material from above and below; only then does the cutting force come into effect. This produces clean, crack- and tear-free blanked surfaces, smooth components, and low finishing requirements.

Free cash flow – The operating cash flow less the cash flow from investment activities; shows how much money will be available for shareholder dividends and/or for paying back third-party loans.

Freefloat – Percentage of the shares in a company that are not held by shareholders with more than 5 percent of the share capital each. Shares held by investment companies are always included in the free float.

IAS – International Accounting Standards; part of IFRS.

IFRS – International Financial Reporting Standards.

Net working capital (NWC) – Amount by which a company's current non interest-bearing assets exceed its current non interest-bearing liabilities.

Net debt – Amount by which interest-bearing liabilities exceed interest-bearing assets plus cash and cash equivalents.

Orders received/order backlog capital goods business – In the Fineblanking Technology segment, orders received/order backlog comprise legally binding orders.

Overall Equipment Effectiveness (OEE) – A comprehensive production parameter that combines availability, machine performance and quality, and thus serves to evaluate the manufacturing plant.

Press portfolio – Feintool's fineblanking presses are designed to enable cost-effective production of precision parts. Feintool has three press series to suit different requirements:

  • HFAplus – Hydraulic fineblanking presses. Mainly used for three-dimensional parts with stringent fineblanking and forming requirements. The HFTfit model was developed and launched specifically for the requirements of the Asian market.
  • XFTspeed – Servo-mechanical fineblanking presses. Mainly used for thin, delicate and critical parts that require a high level of precision, output and process reliability.
  • X-TRA – Servo-hydraulic fineblanking presses. Mainly used for high-volume flat parts. Thanks to their servo drive, X-TRA presses are particularly suitable for processing high-tensile and stainless steels.
  • Servo drive – Feintool uses servo drive for both mechanical and hydraulic fineblanking presses. The advantage of this is that ram travel can be programmed precisely. This means that the speed of the blanking process, which takes just a fraction of a second, can be reduced in a controlled manner in order to protect the workpiece and the tool. The ram then moves to the next stroke even more quickly. Servo-driven presses considerably increase output.

    Simulation – Experimental analysis of fineblanking and forming processes using complex software.

    Stroke rate – Number of strokes completed by a fineblanking press in one minute.

    Technology Centre – Lyss facility at which the entire fineblanking process takes place, from research and development, to engineering and through to tool production, testing and approval. At all other sites around the world, these are sales and service subsidiaries with a focus on the provision of advice and the sale of presses, systems, peripherals and tool systems. All technology centres form part of the Fineblanking Technology segment.

    Tools – Tools are where components are made in fineblanking presses or forming systems. To increase the cost-effectiveness and efficiency of production, Feintool combines fineblanking and forming processes in one tool. A three-stage tool, for example, can simultaneously cut, bend and deburr. A ready-to-install multifunctional component requires just one press and one tool.