Siemens 2008 Annual Report Download - page 271

Notes to Consolidated Financial Statements 175
(in millions of €, except where otherwise stated and per share amounts)
Miscellaneous
Under the German Stock Corporation Act (Aktiengesetz), the amount of dividends available for distribution to
shareholders is based upon the earnings of Siemens AG as reported in its statutory nancial statements deter-
mined in accordance with the German Commercial Code (Handelsgesetzbuch). During the scal year ended Sep-
tember 30, 2008, Siemens AG management distributed an ordinary dividend of €1,462 (€1.60 per share) of the
scal 2007 earnings to its shareholders. During the year ended September 30, 2007, Siemens AG management
distributed €1,292 (€1.45 per share) of the scal 2006 earnings to its shareholders.
The Managing Board proposed a dividend of €1.60 per share of the scal 2008 Siemens AG earnings, in total
representing approximately €1,378 in expected payments. Payment of the proposed dividend is contingent upon
approval by the shareholders at the Annual Shareholders’ Meeting on January 27, 2009.
28 Additional capital disclosures
As of September 30, 2008 and 2007, the capital structure of the Company was as follows:
In scal 2008, total equity decreased by 8% compared to scal 2007 primarily due to the purchase of treasury
stock under our share buy back program, dividend payments to our shareholders offset by an increase in
retained earnings. For further information on the share buy back program see Note 27. In scal 2008, Siemens
repurchased a total of 56,201,421 shares at an average price of €77.41 per share. Total debt increased by 4% in
scal 2008 due to the issuance of long-term debt, which was partly used to renance short-term debt (see Note
23). This resulted in a decrease in equity as a percentage of total capital to 62% in scal 2008 compared to 65%
in scal 2007. Debt as a percentage of total capital increased to 38% from 35% in the prior year.
Siemens is not subject to any statutory capital requirements. Commitments exist to sell or otherwise issue com-
mon shares in connection with established share-based payment plans. In scal 2008, commitments for share-
based payments were fullled through repurchases of the Company’s shares, which is planned to be continued.
In scal 2007, commitments for share-based payment plans have been satised through capital increases.
As part of our “Fit42010” program, we decided to optimize our capital structure. A key consideration is to main-
tain ready access to capital markets through various debt products and to preserve our ability to repay and
service our debt obligations over time. We therefore set a capital structure goal that is measured by Adjusted
industrial net debt divided by Earnings before interest taxes depreciation and amortization (EBITDA) as
adjusted. The calculation of Adjusted industrial net debt is set forth in the table below. Adjusted EBITDA is cal-
culated as earnings before income taxes (EBIT) (adjusted) before amortization (dened as amortization and
impairments of intangible assets other than goodwill) and depreciation and impairments of property, plant and
equipment and goodwill. Adjusted EBIT is income from continuing operations before income taxes less nancial
income (expense), net and income (loss) from investments accounted for using the equity method, net.
September 30,
% Change2008 2007
Total equity attributable to shareholders of Siemens AG 26,774 28,996 (8)%
As a % of total capital (see below) 62% 65%
Short-term debt 1,819 5,637
Long-term debt 14,260 9,860
Total debt 16,079 15,497 4%
As a % of total capital 38% 35%
Total capital (total equity and total debt) 42,853 44,493 (4)%