APQP (Advanced Product Quality Planning)

In commercial quality management, this conceptual part of the quality planning process anticipates the characteristics that will be required of a product or a service in the future.


An analysis examining whether processes, specifications and policies meet the required standards. This method of investigation is a common feature of a quality management system. The audits are carried out by a specially trained auditor.


Captive market / segment

Market segment in which original equipment and commercial vehicle manufacturers have their own engine production facilities to meet their engine needs. Consequently, the captive market is not generally accessible to independent engine manufacturers.

Cash flow statement

Shows the Group’s inflows and outflows of cash over the financial year. It distinguishes between cash flow from operating activities, cash flow from investing activities and cash flow from financing activities. It also shows the change in cash and cash equivalents.


Denotes the entirety of measures taken by a company to comply with laws, regulations and directives and also to comply with contractual obligations and self-imposed obligations. Compliance is a key element of corporate governance.

Corporate citizenship

Denotes a company’s corporate social responsibility activities.

Corporate Governance

Responsible management and control of a company with a view to long-term value creation and increasing shareholder value.


Deferred taxes

Differences between the calculation of profit under tax law and under IAS result in differing tax calculations. These differences in the amount of tax are recognised on the balance sheet as deferred tax assets or liabilities.

DIN EN ISO 9001 (Deutsches Institut für Normung – European Norm – International Organization for Standardization – 9001)

A German, European and international industrial standard for environmental management.


Acceptance of the differences between individual employees, which – when embedded in a tolerant corporate culture – can be utilised to boost the success of a company. Employees should not suffer discrimination due to ethnic origin, gender, age, religion, sexual orientation, disability, etc. They should all have equal opportunities.


Reduction of technical dimensions (such as weight and capacity) but delivering the same or similar power output.


Earnings per share

A key figure calculated by dividing the net income attributable to the shareholders of DEUTZ AG by the average number of shares in issue.

EBIT (earnings before interest and tax)

Income from operating activities (before interest and tax).

EU Stage I, II, III A, III B, IV, V

Exhaust emissions standard laid down by the European Union for off-road applications. Sets limits for pollutants such as nitrogen oxide, hydrocarbons and soot particulates in exhaust gas.

Exhaust aftertreatment

Ensures compliance with statutory emissions limits for pollutants such as nitrogen oxides (NOx) and soot particles through the cleansing of combustion exhaust gases. In vehicles, exhaust aftertreatment is achieved by the use of catalytic converters and diesel particulate filters.



Individually structured, non-exchange-traded forward transaction.

Free float

The proportion of shares in a public limited company (Aktiengesellschaft) not held by a major shareholder. According to the Deutsche Börse definition, shareholdings of less than 5 per cent are classified as free float.



Countering interest-rate, currency, price or similar risks through the use of derivative financial instruments that limit the risk associated with the underlying transactions.


IMS (integrated management system)

Standardised structure bringing together methods and tools for ensuring compliance with requirements in various areas (e.g. quality, environment, health and safety), thereby contributing to corporate governance (i.e. the management and monitoring of a company).



Describes both a Japanese philosophy of life and work and a methodical approach focused on continuous and never-ending improvement. The improvements are achieved through incremental perfectioning or optimisation of a product or process.


A method used in software development to limit the number of work items that are in progress at any one time. The aim is to shorten lead times and to quickly identify problems, particularly bottlenecks.


Liquefied petroleum gas (LPG)

A liquefied variable mixture, mainly of butane and propane, that can be used in internal combustion engines.

Long-Term-Incentive-Plan (LTI)

A form of incentive-based remuneration offered to members of the Board of Management and selected senior managers; its purpose is to enable these executives to benefit from the company’s long-term success, thereby encouraging them to stay with the company.


Material handling

Equipment for moving goods within contained areas, such as airports or factories. Examples include forklift trucks, telehandlers, lifting platforms and ground support equipment.


Non-captive market / segment

Market segment in which original equipment and commercial vehicle manufacturers purchase engines from third-party manufacturers to meet their engine needs. The non-captive market is accessible to independent engine manufacturers.


Off-highway applications (off-road)

Engine-powered applications whose use on roads is subject to restrictions, e.g. trains, ships, agricultural vehicles and construction vehicles.

OHSAS (Occupational Health and Safety Assessment Series)

A standard based very closely on ISO 9001 and ISO 14001. OHSAS 18001 was defined as a UK standard in 2007. It has also become a national standard in Poland. Used in more than 80 countries worldwide, OHSAS 18001 is one of the best known and most important standards for occupational health and safety management systems. Certification for this standard can be obtained.


Contract that, until the expiry date, gives the holder the right to buy – and the writer the obligation to sell – an underlying instrument (a security or a product/commodity) at an exercise price that has been fixed in advance.



Stands for Plan Do Check Act. The PDCA cycle is easy to use, can be applied in all parts of the company and only has to be adapted to the specific task in hand. The key benefits of the PDCA method are its simplicity, how quickly it can be learned and how well it can be adapted to a range of tasks and problems.


The size of a proportion or the strength of concentration is normally expressed as a percentage (%) or per mill (‰). Very small parts, e.g. a thousandth or 1 millionth of a per mill, have to be written somewhat awkwardly, using decimal points, as 0,001 ‰ or 0,000,001 ‰ respectively. To avoid having this confusing representation, further abbreviations have been introduced.



Used to assess the creditworthiness of a company. It gauges the extent to which the company will be able to repay the principal and interest on its outstanding liabilities at the agreed date.


European Union regulation concerning the registration, evaluation, authorisation and restriction of chemicals.

Return on capital employed (ROCE)

Ratio of EBIT to average capital employed. Capital employed: total assets less cash and cash equivalents, trade payables and other current and non-current liabilities, based on average values from two balance sheet dates.


RoHS Directive 2011/65/EU; restricts the use of certain hazardous substances in electrical and electronic equipment.



Method used in project and product management, particularly for agile software development. Scrum originates from software engineering but is now used in many other industries. It is an application of lean development for project management.

Six Sigma (6σ)

Management system used for process improvement, statistical quality targets and quality management. At its core, it uses statistical means to describe, measure, analyse, improve and monitor business processes.

Synthetic fuel

Fuel that is produced in a different way to conventional fuels (e.g. diesel, petroleum, kerosene) and is sourced from a raw material other than, for example, crude oil.


US EPA TIER 1, 2, 3, 4

US emissions standard for off-road applications. Sets limits for pollutants such as nitrogen oxide, hydrocarbons and soot particulates in exhaust gas.


Working capital

Inventories and trade receivables less trade payables.

Working capital ratio

Ratio of working capital (inventories plus trade receivables less trade payables) at the end of the reporting period to revenue for the preceding twelve months.



Stands for ‘Exchange Electronic Trading’ and is the name given to the electronic dealing system run by Deutsche Börse AG (also known as screen-based trading).