Siemens 2008 Annual Report Download - page 190

94 Management’s discussion and analysis
Subsequent events
At the beginning of November 2008, Siemens signed an agreement to sell its 50% stake of Fujitsu Siemens
Computers (Holding) BV (FSC) to Fujitsu Limited. A gain is expected to arise on the transaction. The transaction,
which is subject to the approval of regulatory authorities, is expected to close in the third quarter of scal 2009.
At the beginning of October 2008, Siemens completed the transfer of an 80.2% stake in Siemens Home and
Ofce Communication Devices GmbH & Co. KG (SHC), reported in Other Operations, to ARQUES Industries AG.
Effective November 17, 2008, Barbara Kux was appointed to the Siemens Managing Board. Barbara Kux will head
the Supply Chain Management and serve as Chief Sustainability Ofcer.
Critical accounting estimates
Siemens’ consolidated nancial statements are prepared in accordance with IFRS. Our signicant accounting
policies, as described in “Notes to Consolidated Financial Statements,” are essential to understand our results
of operations, nancial positions and cash ows. Certain of these accounting policies require critical accounting
estimates that involve complex and subjective judgments and the use of assumptions, some of which may
be for matters that are inherently uncertain and susceptible to change. Such critical accounting estimates could
change from period to period and have a material impact on our nancial position, results of operations and
cash ows. Critical accounting estimates could also involve estimates where management reasonably could have
used a different estimate in the current accounting period. Management cautions that future events often vary
from forecasts and that estimates routinely require adjustment.
For information on Critical Accounting Estimates, see “Notes to Consolidated Financial Statements.”
Non-Financial performance measures
In scal 2007 we initiated our Fit42010 program as a follow-up to the Fit4More program that we concluded in
April 2007. Like the predecessor program on which it builds, Fit42010 species the priorities and performance
targets we believe will enable us to achieve our overall strategy, which is to sustain protable growth by address-
ing the opportunities inherent in global megatrends. The program thus contains both nancial and non-nan-
cial performance measures chosen to help us close the gap to our leading competitors. For a description of the
nancial performance measures included in Fit42010, see “Financial performance measures” earlier in this
Report.
The non-nancial performance measures included in Fit42010 are grouped into four categories: People Excel-
lence, Portfolio, Operational Excellence and Corporate Responsibility. We describe these four categories as
operational “levers” that enable us to achieve our nancial performance targets.