Siemens 2008 Annual Report Download - page 82

76 Fit42010 – Performance
We’re making good progress with our Fit42010 program. When adjusted for currency translation
and portfolio effects, Company-wide revenue growth in scal 2008 totaled nine percent, exceeding
our goal of growing at least twice as fast as world GDP.
We’ve dened our targets for scal 2009 and are equipped to meet and even surpass them. The
challenges arising from today’s four global megatrends – shifting demographics, increasing
urbanization, climate change and globalization – are creating major business opportunities that
we fully intend to leverage. With our wide-ranging portfolio of innovative, energy-efcient prod-
ucts and solutions, we’re already better positioned than virtually any other company worldwide
to provide answers to the toughest questions of our time.
When we restructured our Company organization, we raised our target margin ranges at both the
Sector and Division levels. We’re rmly convinced that business growth is sustainable only when
it’s protable. That’s why we intend to reach or exceed the protability of our top competitors in
all our business elds. With this in mind, we’ve raised our target margin ranges for the Industry
Sector to 9-13 percent, for the Energy Sector to 11-15 percent and for the Healthcare Sector to
14-17 percent. But it’s not just at the Sector level that we’ve set higher goals: we’ve also raised the
bar for ten of our Divisions. For the Divisions that have not yet achieved their targets, we’ve taken
timely steps to improve their protability. In the Industry Sector, for example, we’ve launched the
Mobility in Motion project to ensure that our Mobility Division reaches its target margin range of
5-7 percent.
However, to be truly successful, we have to do more than just generate sufcient growth and reach
margin targets. What’s equally important, we have to ensure that we’re achieving a satisfactory
ratio between our earnings and the capital we use in our business activities, that these activities
are generating a sufcient amount of cash and that we’re optimizing our capital structure.
Fit42010 – Performance
Fit42010 establishes a comprehensive system of targets and indicators
for measuring our success. To achieve our overall aim of generating
long-term protable growth, we intend to increase our revenue and
protability, improve our cash ow and optimize our capital structure.