Siemens 2008 Annual Report Download - page 81

Fit42010 – Unleashing the potential of an integrated technology company 75
To reach these targets, we can’t just rely on the strengths of our individual businesses. We
have to unleash the full potential of our integrated technology company. And that’s where
our four proven drivers – Portfolio, People Excellence, Operational Excellence and Corporate
Responsibility – come in:
Portfolio:
 As in the past, the goal of our portfolio strategy is to capture leading positions with
our products and solutions in high-growth markets worldwide. Experience has shown that busi-
nesses must be No. 1 or No. 2 in their markets if they are to achieve high operating margins and
protable long-term growth. Having made major acquisitions in the past ve years, we’re now
focusing primarily on generating organic growth in our three Sectors Industry, Energy and
Healthcare (see page 78-79).
People Excellence:
 By attracting the best people worldwide, evaluating and developing our
employees on the basis of binding standards, identifying and fostering tomorrow’s top manage-
rial talents and key technology experts early on, and grooming our managers for leadership,
we’re creating a high-performance culture that will ensure our Company’s future success
(see page 80-81).
Operational Excellence:
 We aim to remain a leading global player, offering innovative products
and solutions while expanding our market presence and increasing our market penetration, par-
ticularly in fast-growing regions like Asia. With our SMART initiative, for example, we also want
to better serve our customers in a variety of market segments around the world (see page 82-83).
Corporate Responsibility:
 We do more than deliver innovative, cutting-edge products and ser-
vices worldwide; we also make major contributions to environmental protection, economic
development and public welfare in the communities where we do business. Under the Fit42010
program, we’re focusing on four areas: corporate governance, compliance, climate protection
and corporate citizenship. Compliance-related activities, in particular, are a vital element of cor-
porate responsibility at Siemens (see page 84 ff. and Book II, page 28 ff.).
The Fit42010 program has dened clear goals. Now we’re doing what it takes to achieve those
goals and guarantee Siemens’ long-term competitiveness.
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 ROCE of 14 -16%
 Optimized capital structure
 Cash conversion rate
“1 – growth rate”
 > 2 x GDP growth
 Best-in-class margin ranges
 SG&A reduction of 10%
People Excellence
 High-performance culture
 Global diverse talents
 Leadership culture & development
 Expert careers
Portfolio
 Focus on three Sectors Industry,
Energy and Healthcare
 Stringent resource allocation
 Focus on organic growth and
leveraging past acquisitions
Corporate Responsibility
Benchmark in transparency
and compliance
 Corporate governance
 Compliance
 Climate protection
 Corporate citizenship
Operational Excellence
Best-in-class for all businesses
and functions through
 Open innovations
 Global supply chain
management
Fit4 2010
Performance
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