Glossary
Portal
PPB
An Internet electronic portal.
Processo Produtivo Básico, or Basic Production Process, this is the certificate that defines which manufacturing components and processes must be carries out in Brasil so that PC may take advantage of IPI (excise tax) reduction, Pursuant to Law 8,248/91 (IT Law), the so-called Information Technology Law.
| ABINEE | Brazilian Electrical and Electronics Industry Association |
| Arbitration Chamber | Market Arbitration Chamber established by the BOVESPA for resolution of disputes between companies and its investors. |
| BM&FBOVESPA | Securities, Commodities and Futures Exchange, the leading exchange in Latin America, was created in 2008 with the integration between the Brazilian Mercantile & Futures Exchange (BM&F) and the São Paulo Stock Exchange. |
| Brazilian GAAP | The accounting practices adopted in Brazil, based on the provisions of the Brazilian Corporation Law, and on accounting standards adopted by IBRACON and on resolutions adopted by the CFC. |
| CAGR | Compound Annual Growth Rate. |
| CBLC | Companhia Brasileira de Liquidação e Custódia, the Brazilian Settlement and Custody Company. |
| Company | Positivo Tecnologia S.A. |
| Corporate Market | The market formed through sales to small, medium-sized and large private companies, whether through direct sales, resale or outsourced agents. |
| CVM | The Brazilian Securities Commission (Comissão de Valores Mobiliários). |
| EBITDA | EBITDA comprises income before net financial expenses, income and social contribution taxes and depreciation and amortization. The calculation of EBITDA is not based on accounting principles adopted in Brazil, does not represent cash flow for the periods in question and should not be considered as an alternative to net income as an indicator of our operating performance or as an alternative to cash flow as an indicator of liquidity. EBITDA does not have a standardized definition and our definition of EBITDA may not be identical to or comparable with the EBITDA or Adjusted EBITDA used by other companies. |
| Adjusted EBITDA | Adjusted EBITDA corresponds to EBITDA plus that part of the investment subsidy booked as deferred revenue under current liabilities which will be recognized in the result as the mandatory R&D investments associated with said amounts are amortized, and excluding the amortizations of deferred revenue. The aim of this adjustment is to provide the market with results showing the entire investment subsidy for the period. |
| e-Commerce | Trade carried out through computers and cellular phones connected to data transmission networks. |
| Educational Desk | Computers designed to educate by forming a learning environment. A set of devices and software connectable to computers. |
| Educational Portal | An educational Internet electronic portal. |
| Educational Technology Segment | Its business unit engaged in the provision of integrated services, encompassing software, installation, computer equipment, and technical and pedagogical support, principally for public and private schools and home users. |
| E-reader | E-book reader. |
| GCI | Internet Management Committee |
| Government Market | Comprising sales to bodies administered directly or indirectly by the various spheres of Brazilian government |
| Grey Market | The market formed by small and medium-sized computer companies selling products with an element of smuggled parts and products not entitled incentives under the Processo Produtivo Básico, the Basic Productive Process, or PPB. |
| Hardware Segment | Its business unit engaged in the manufacture of Desktops, Notebooks and servers, developed as lines of products and solutions specifically targeted to each of the markets the Company serves. |
| IDC | International Data Corporation – Internacional Research Company that tracks the computer market. |
| IFRS | The International Financial Reporting Standards. |
| Investment Subsidy | As an incentive, the Paraná government allows us credit that reduces the ICMS tax expense to an effective rate of 0% on PC sales revenue in exchange for investing in the state. As of the introduction of Law 11,638/07, the investment subsidy began to be booked under the result. That part of the subsidy corresponding to the remaining amount needed to cover all the mandatory R&D investments is booked under current liabilities and is recognized in the result as such investments are amortized. |
| IPSOS | Company that provides survey-based researches |
| Notebook | A portable computer. |
| Novo Mercado | A special listing segment of BOVESPA. |
| Official Market | The computer selling market, excluding sales in the grey market. |
| PAC | Growth Acceleration Program (Programa de Aceleração do Crescimento). |
| PC | A personal computer, including Desktops, Notebooks and servers. |
| PISA | Program for International Student Assessment. |
| Portal | An Internet electronic portal. |
| PPB | Processo Produtivo Básico, or Basic Production Process, this is the certificate that defines which manufacturing components and processes must be carries out in Brasil so that PC may take advantage of IPI (excise tax) reduction, Pursuant to Law 8,248/91 (IT Law), the so-called Information Technology Law. |
| Public Bid Market | Comprising sales to bodies administered directly or indirectly by the various spheres of Brazilian government. |
| Regulation S | Regulation S under the Securities Act. |
| Retail Market | The market formed by sales through retail chains to home users (individuals), micro companies and small companies. |
| Rule 144A | Rule 144A under the Securities Act. |
| SEC | The Securities and Exchange Commission of the United States. |
| Securities Act | The United States Securities Act of 1933, as amended. |
| Tablet | Touchscreen clipboard-shaped device. |
| Total Market | The sum of the Grey and Official Markets. |
| US GAAP | The generally accepted accounting principles of the United States. |