Financial glossary

A- B- C- D- E- F- G- H- I- J- K- L- M- N- O- P- Q- R- S- T- U- V- W- X-Y-Z

A

Adjusted share price
Share price taking into account transactions that have altered the capital base (creation of new shares, share splits etc.). The adjustment allows share prices to be compared over time.

Afep/Medef 2008 code
Means the corporate governance code for listed companies published in December 2008 by the Association Française des entreprises privées (Afep) and the Mouvement des entreprises de France (Medef)

AMF (Autorité des Marchés Financiers)
France's independent public financial markets authority. The AMF's task is to set operational and ethical rules for organised markets, to monitor the markets and to protect investors and shareholders.

B

Bearer form
If a shareholder holds shares in bearer form, the shares are held in dematerialised form via Euroclear. The issuing company is not informed of the shareholder's name.

Bond
Tradable debt security issued by a public- or private-sector company, a local authority or a government, paying a fixed rate of interest over a specific length of time and including a promise of repayment at maturity. The term "bond" designates both the security issued by the company to mark the existence of a claim against the company, and the claim itself. Bonds do not confer the same rights offered by shares (right to a share of earnings and right to manage the company via voting).

Buyback offer
A company can buy back up to 10% of its own shares under certain conditions.

C

Capital gain
The profit generated when selling a share; the difference between the purchase price and the selling price.

CDI
Means the Crest Depositary Interests representing GET SA ordinary shares or, if applicable, Warrants.

Capital increase
An increase in the company's share capital, either through the issue of new shares or an increase in the par value of existing shares.

Custody fees
Fees charged by a financial intermediary for keeping a securities account. These fees are usually charged as a percentage of portfolio value or as a fixed sum per position held.

D

DSS (Deferred Settlement Service)
This is a service for the market's most liquid stocks, allowing order payment and the delivery of securities to be deferred until the last trading day of the month.
To be eligible for the DSS, stocks must meet two criteria:
- Their market capitalisation must exceed €1 billion.
- Their daily trading volume must exceed €1 million.

Dividend
Portion of net profit distributed to shareholders. The shareholders' meeting can only decide to distribute a dividend after approving the financial statements for the most recent financial year and after recognising the existence of sums available for distribution.

E

Earnings per share
Net profit divided by the total number of shares in issue.

EBITDA
Earnings Before Interest, Taxes, Depreciation and Amortisation.

EGP
Means Eurotunnel Group UK PLC, an English law company wholly-owned by GET SA (with the exception of the EGP Preferred Share).

Euronext Paris
Stock exchange that organises, manages and develops the market for securities.

Exchange Tender Offer (ETO)
A takeover bid in which control is acquired by exchanging shares at a ratio set in advance.

F

Fixing
Method for pricing shares under which the share price is set on one or more occasions during the day, not continuously. Under this method, all orders are grouped together and executed once or twice a day, at set times.

Free Cash Flow
As defined by the Group, as net cashflow from operating activities less net cash flow from investing activities (excluding the acquisition of shareholdings in subsidiary undertakings) and net cash flow from financing activities relating to the service of the debt (Term Loan and hedging instruments plus interest received (on Cash and cash equivalents).

Free float
The proportion of capital available to the public for trading on stock exchanges. The higher the free float, the more liquid the security.

Funds from operations
Equal to pre-tax profit plus depreciation, amortisation and minority interests.

I

IFRS (International Financial Reporting Standards)
International accounting standards implemented from 1 January 2005 to make it easier to compare companies' financial statements.

L

Liquidity
Ratio of the volume of shares traded to the total number of shares making up the company's capital. Liquidity expresses the ease with which an investor can quickly find a counterparty for a large order, regardless of whether it is a buy or sell order, without causing major movement in the share price.

Long term debt to asset ratio
As defined by the Group, as the ratio between long-term financial liabilities less the value of the floating rate notes which were purchased during 2011 as a percentage of tangible fixed assets.

M

Managed registered form
Shares are dematerialised, and the names of both the shareholder and his/her financial intermediary appear in the issuing company's register of movements in share ownership.

Market capitalisation
The market value of a company at a given time. Market capitalisation is equal to the share price multiplied by the number of shares in issue.

N

Note Redeemable in Shares (NRS)
Means the notes issued by EGP pursuant to the Safeguard Plan; Notes redeemable in GET SA Ordinary Shares and admitted on Euronext Paris and on the London Stock Exchange, in accordance to the 4 April 2007 Securities Note (n°07-113).

O

Option
A contract that confers the right to buy or sell an underlying asset at a predetermined price and during a predetermined period. In market finance, an option is a derivative instrument that allows the holder to "bet" on the future price of a financial asset, for speculative or insurance purposes.

Par value
The par value of a share corresponds with the portion of the share capital it represents. A company's share capital equals the par value of each share multiplied by the number of shares.

Preferential subscription right
Tradable right giving each shareholder, at the time of a capital increase with preferential subscription rights maintained, a right of first refusal to subscribe new shares in proportion to the number of shares he/she already owns.

P/E ratio (price / earnings ratio)
A company's share price divided by its earnings per share.

Profit warning
An announcement made by a company to the market that its earnings will be lower than those expected by the financial community.

Public buy-out offer
Procedure under which a shareholder owning at least 95% of the voting rights in a company whose shares are, or have ceased to be, listed for trading on a regulated market, withdraws the remaining shares from the market.

Pure registered form
Shares are dematerialised, and only the shareholder's name appears in the issuing company's register of movements in share ownership.

Quorum
A minimum percentage of shares with voting rights that must be present or represented for a shareholders' meeting to take decisions validly. A quorum is also required for the Board of Directors to take decisions validly.

Registered form
If a shareholder holds shares in registered form, his/her name appears in the issuing company's share register. The benefits of holding shares in registered form including receiving information directly from the company and easier access to shareholders' meetings. Shares can be held in two types of registered form, i.e. managed registered and pure registered form.

Return on equity
A company's total earnings divided by its shareholders' equity. Return on equity measures the company's ability to make a return on capital invested by shareholders.

Risk premium
Additional return required by an investor to compensate for the extra risk he/she is taking relative to a government bond.

ROCE (return on capital employed)
Net profit before interest expense and after tax divided by average capital employed. ROCE reflects the return made by the company on funds invested by shareholders and lent by the banking and financial system.

ROE (return on equity)
Net profit divided by shareholders' equity. ROE reflects the return made by the company on funds invested by shareholders.

S

Safeguard procedure
A new legal procedure in France for dealing with a company's difficulties. Companies can ask for their difficulties to be dealt with before cessation of payment occurs. A safeguard procedure gives rise to a court-ordered plan at the end of an observation period and, if applicable, the creation of two creditor committees representing banks and the company's main suppliers. The procedure aims to eliminate the company's difficulties without depriving the debtor of its ownership of production facilities.

SDES
Means the Subordinated Deferred Equity Shares issued by GET SA on 6 March 2008 and admitted to official listing and trading on the regulated market of the Luxembourg Stock Exchange, in accordance with the 20 February 2008 SDES Securities Note (n°08-032).

Self control
This occurs when a company controls itself through one or more companies over which it has direct or indirect control.

Share
A tradable security representing a portion of a company's capital. A share gives its owner (the shareholder) the right to take part in shareholder meetings, to receive information and to receive, if applicable, a portion of the company's earnings and surplus upon winding-up.

Share fraction
A portion of a share that cannot be distributed in a bonus share issue or share subscription, if the number of shares owned by the shareholder is not an exact multiple of the allocation ratio used in the transaction. Example: in a bonus share issue, one new share is distributed for every 10 existing shares held. As a result, a shareholder owning 125 shares will be allocated 12 new shares and 5 fractions (the equivalent of half a share).

Shareholders' equity
The sum of a company's share capital, share premiums, revaluation adjustments, reserves, retained earnings (if positive), non-distributed profit for the most recent period, investment subsidies and regulated provisions less losses.

Shareholders' meeting
A meeting in which shareholders can either approve or reject the company's financial statements, vote on dividends, elect directors and auditors, authorise transactions involving the company's capital, amend the articles of association and decide to wind up the company. Shareholders' meetings comprise ordinary business, extraordinary business or a combination of the two.

Share consolidation
A share consolidation involves reducing the number of shares in issue without altering the issuing company's capital. In practice, it consists of exchanging a certain number of existing shares for one new share. In Eurotunnel Group's case, GET SA is proposing to exchange 40 existing shares for one new share.

T

Takeover bid
An intention stated publicly by a company to take control of a company by buying shares from shareholders.

Underlying operating profit
Difference between revenues on the one hand and the cost of making, distributing and selling products and depreciating the company's investments on the other. Underlying operating profit is an indicator of the company's ability to make the profits needed for it to continue operating and to develop.

V

Volatility
The extent of changes in a share price over a given period. Volatility is an indicator of risk: the higher the volatility, the riskier the stock.

W

WarranT (2007 Warrants - BSA)
Means the share warrants free allocated to GET SA shareholders in 2007, which have been listed and admitted on Euronext Paris in accordance to the 4 April 2007 Securities Note (n°07-113).