Capital invested (CI)
- Capital invested comprises the assets on which the company must obtain a return by generating an appropriate cash inflow; in some cases the cost of ultimately reproducing the assets must be earned in addition.
Cash flow return on investment (CFROI)
- The CFROI is the difference between the gross cash flow in the period and the cost of reproducing depletable assets, divided by the capital invested. The CFROI is thus a measure of the return on capital employed in the period.
Cash value added (CVA)
- This is the difference between the gross cash flow and gross cash flow hurdle. It is therefore the amount by which the gross cash flow exceeds the return and reproduction requirements. If CVA is positive, the investors’ return and reproduction requirements have been satisfied and value has been created for the company.
- (formerly Carbon Disclosure Project) is an independent, not-for-profit organization that works on behalf of analysts and investors to promote the transparent reporting of greenhouse gas emissions and water use (Water Disclosure Report) by companies. CDP publishes two climate rankings each year: the Climate Disclosure Leadership Index (CDLI) rates the extent and quality of the disclosure of climate-relevant data, while the best-rated companies are additionally listed in the Climate Performance Leadership Index (CPLI).
- are those mined in conflict regions. They include tin, tungsten and tantalum ores, gold or their derivatives. Among the regions in which armed conflicts over the control of these resources occur are the eastern part of the Democratic Republic of Congo and neighboring countries.
- comprises the observance of statutory and company regulations on lawful and responsible conduct.
- comprises the long-term management and oversight of the company in accordance with the principles of responsibility and transparency. The German Corporate Governance Code sets out basic principles for the management and oversight of listed companies.
Credit default swaps (CDS)
- Credit default swaps are tradable insurance contracts used to hedge against the default of a borrower.
- designates the variation within the workforce in terms of gender, origin, nationality, age, religion and physical capability.
- The multi-currency European Medium Term Notes (EMTN) program is a documentation platform that enables Bayer to raise capital by quickly issuing debt on
the global capital market. Maturities, currencies and conditions can be very flexibly designed.
Environmental aspect analysis
- involves identifying the aspects of the activities, products or services of an organization that can impact the environment.
- are a group of antibiotics.
- The Greenhouse Gas Protocol Corporate Standard is an internationally recognized standard for the recording and reporting of greenhouse gas emissions.
It covers direct (Scope 1) and indirect (Scope 2) greenhouse gas emissions relating to a company’s value-added chains, as well as emissions resulting from third-party and acquired upstream services (Scope 3).
Global commercial paper program
- Commercial paper (CP) issued under Bayer’s program is a short-term, unsecured debt instrument normally issued at a discount and redeemed at nominal value. It is a flexible way of obtaining short-term funding on the capital market.
- (Global Reporting Initiative) is a charitable organization that works on behalf of the dissemination and optimization of sustainability reporting. The GRI guidelines are considered the most frequently used and internationally most recognized standard for sustainability reporting. These guidelines are evolved in a multi-stakeholder process. GRI was established in 1997 by the Ceres Coalition of environmentally responsible economies and the United Nations Environment Programme (UNEP).
Gross cash flow hurdle
- The GCF hurdle is the gross cash flow that needs to be generated to satisfy investors’ return and reproduction requirements.
- is a collective term for all guidelines that govern “good working practice” and are particularly relevant for the fields of medicine, pharmacy and pharmaceutical chemistry. The “G” stands for “Good” and the “P” for “Practice,” while the “x” in the middle is replaced by the respective abbreviation for the specific area of application – such as Good Manufacturing Practice (GMP), Good Laboratory Practice (GLP), Good Clinical Practice (GCP) or Good Agricultural Practice (GAP). These guidelines are established by institutions such as the European Medicines Agency or the U.S. Food and Drug Administration.
- A hybrid bond is a corporate bond with equity-equivalent properties, usually with either no maturity date or a very long maturity. Due to its subordination, issuer bankruptcy carries a lower likelihood of repayment than a normal bond.
ILO core labor standards
- The eight core labor standards of the ILO (International Labour Organization) that define the minimum requirements for humane working conditions are internationally recognized “qualitative social standards.” They represent universal human rights that are deemed valid in all countries regardless of their economic development status.
- Field of activities comprising particularly health care and agriculture. At Bayer this refers to the activities of the HealthCare and CropScience subgroups.
- Chemical class of systemic insecticides
- At Bayer HealthCare, OTC (over-the-counter) medicines are those obtainable without
a prescription. In finance, OTC represents trade between financial market participants outside of an organized exchange. OTC transactions are nevertheless subject to securities trading laws.
Phase I-III studies
- are clinical phases in the development of a drug product. The active ingredient candidate is tested in healthy subjects (with the exception of oncology) in Phase I, and in sick patients in Phases II and III. The studies are subject to strict legal requirements and documentation procedures.
Price/cash flow ratio
- The price/cash flow ratio is the ratio of the share price to gross cash flow per share. It shows how long it would take for the company’s cash flow to cover the share price.
Price/EPS ratio (price/earnings ratio)
- This is the ratio of the current share price to earnings per share. A high price/EPS ratio indicates that the market assigns a high value to the stock in the expectation of future earnings growth.
Syndicated credit facility
- Credit line agreed with a group of banks. Generally used for extensive financing requirements, such as when making an acquisition, to increase available liquidity or as security for the issuance of debt instruments. The credit facility can be utilized and repaid flexibly, either in full or in portions, during its term.
UNGC (United Nations Global Compact)
- The UN Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labor, environment and anti-corruption. By doing so, business – as a primary driver of globalization – can help ensure that markets, commerce, technology and finance advance in ways that benefit economies and societies everywhere. By committing to the UNGC, companies agree to document each year their efforts to uphold the ten principles.
- is the sustainable use of water as a natural resource.
Weighted average cost of capital (WACC)
- The weighted average cost of capital (WACC) represents the return expected by investors on the capital invested in the company. It is computed as a weighted average of the cost of equity and debt. The cost of equity is derived from capital market information and represents the return expected by stockholders, while the cost of debt represents the conditions at which the company can borrow money over the long term.
WHO Class I
- The World Health organization (WHO) divides crop protection products into various hazard classes. Class I products are deemed to be extremely hazardous.