Siemens 2009 Annual Report Download - page 151

63
 Managing Board statements, Independent auditors’ report, Additional information
95 Net assets position 97 Report on post-balance sheet date events
98 Risk report
108 Information required pursuant to
§315 (4) HGB of the German Commercial
Code and explanatory report
114 Compensation report
114 Report on expected developments
to reduce capital expenditures by about 7% compared to 2008.
For the transportation services and the post and logistics busi-
nesses, the decline in investments in 2009 is estimated at
about 6%. Investments in the machine building industry are
expected to decline in nearly all countries of the world. These
declines are expected to be offset by strong growth in China,
which claims the world’s largest machine-building industry.
Our Energy Sector is also exposed to the adverse conditions in
certain markets described above for Industry, including the
chemicals, post and logistics, wholesale and retail, transporta-
tion services and oil and gas industries. In addition, Energy is
affected by an expected decline in investments of about 7% in
the utilities markets, where the situation of the customers
worsened together with deteriorating macroeconomic condi-
tions in the first half of 2009.
Capital expenditures within the international healthcare mar-
kets, served by our Healthcare Sector, are expected to decline
by about 12% in 2009 compared to 2008. Capital expenditures
have declined in nearly all countries, with the strongest de-
creases coming in some of our most important markets includ-
ing the U.S. and Germany. The only country reporting a signifi-
cant increase in healthcare capital expenditures in 2009 is
China.
The public sector, a major customer of offerings from our
Siemens IT Solutions and Services business, is expected to
reduce its capital investment by about 8% compared to the
prior year, despite government spending for stimulus pro-
grams. A similar decline is expected in the finance businesses.
Fiscal 2009 –
Financial summary
Siemens delivered a resilient performance in fiscal 2009. Oper-
ating in a contracting global economy struggling with the af-
termath of a major financial crisis, we had the competitive
strength to generate revenue within 1% of the fiscal 2008 level.
The many streamlining initiatives we launched in fiscal 2008,
particularly including our global SG&A reduction program, in-
creased our operating efficiency and helped us surpass our
mid-year outlook for Total Sectors profit. New orders declined
16% year-over-year, as our overall market environment in-
cluded deep downturns in major world markets for industrial
production, customer postponements of major energy infra-
structure projects and growing uncertainty in the healthcare
equipment market. The order decrease year-over-year includes
our own divestment of non-strategic businesses, and as reces-
sionary conditions began to ease toward the end of fiscal 2009
we were well positioned to deliver our typically strong year-
end quarter.
Income from continuing operations and Net income were
strongly influenced by negative impacts related to our stake in
NSN. Equity investment losses related to NSN totaled €543 mil-
lion during the year, and at the end of the fiscal year we took
an impairment of €1.634 billion on our stake in NSN based on a
review of its prospects in coming years. These impacts, re-
ported within our Equity Investments segment, were only
partly offset by a gain on the sale of our share of Fujitsu
Siemens Computers (Holding) B.V. (FSC).
Revenue remained stable year-over-year, at €. billion.
On an organic basis, excluding the net effect of currency trans-
lation and portfolio transactions, revenue was unchanged.
The Energy and Healthcare Sectors competed successfully in
challenging markets, delivering higher revenue year-over-
year. This growth was offset by a revenue decline in the Indus-
try Sector resulting from recession-driven downturns in im-
portant markets such as factory automation, machine-build-
ing, automotive, construction and process industries as well
as divestments of non-strategic businesses. On a geographic
basis, revenue grew in the Americas and in Asia, Australia but
declined in Siemens’ largest reporting region which comprises