Siemens 2009 Annual Report Download - page 172

84
 Reports Supervisory Board /
Managing Board  Corporate Governance  Management’s discussion and analysis  Consolidated Financial Statements
44 Business and operating environment 63 Fiscal 2009 – Financial summary 66 Results of operations 84 Financial position
Financial position
FINANCIAL STRATEGY
Siemens is committed to a strong financial profile, which gives
us the financial flexibility to achieve our growth and portfolio
optimization goals.
Our principal source of financing is cash inflows from operat-
ing activities. Our Corporate Treasury generally manages cash
and cash equivalents for the entire Company and has primary
responsibility for raising funds in the capital markets for the
entire Company, except in countries with conflicting capital
market controls. In these countries, the relevant Siemens sub-
sidiary companies obtain financing primarily from local banks.
At September 30, 2009, Siemens held €10.159 billion in cash
and cash equivalents in various currencies, of which 95% were
managed by Corporate Treasury. Corporate Treasury carefully
manages investments of cash and cash equivalents subject to
strict credit requirements and counterparty limits. In addition,
Corporate Treasury lends funds via intragroup financing to the
Sectors and Cross-Sector Businesses.
In addition to the sources of liquidity described below, we
monitor funding options available in the capital markets and
trends in the availability of funds as well as the cost of such
funding, with a view to maintaining financial flexibility and
limiting repayment risk. We also closely monitor develop-
ments in global capital markets, including the recent deterio-
ration of these markets in connection with the global financial
crisis, in order to evaluate possible consequences on our finan-
cial and risk profile.
DIVIDEND
Siemens AG, the parent company of the businesses discussed
in this report, recorded an unappropriated net income under
German accounting principles (HGB) of €1.463 billion for fiscal
2009 compared to €1.463 billion for the previous year.
At the Annual Shareholders’ Meeting scheduled for January
26, 2010, the Managing Board, in agreement with the Super-
visory Board, will submit the following proposal to allocate the
unappropriated net income of Siemens AG for the fiscal year
ended September 30, 2009: to distribute a dividend of €1.60 on
each no-par value share entitled to the dividend for fiscal year
2009 existing at the date of the Annual Shareholders’ Meeting,
which aggregates to an expected total distribution of €1.388
billion, and the remaining amount to be carried forward. The
prior-year dividend was €1.60 per share.
CRITICAL ACCOUNTING ESTIMATES
Siemens’ consolidated financial statements are prepared in
accordance with IFRS. Our significant accounting policies, as
described in “Notes to Consolidated Financial Statements,” are
essential to understand our results of operations, financial po-
sitions and cash flows. Certain of these accounting policies re-
quire 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 financial position, results of operations and cash flows.
Critical accounting estimates could also involve estimates
where management reasonably could have used a different
estimate in the current accounting period. Management cau-
tions that future events often vary from forecasts and that esti-
mates routinely require adjustment.
For information on Critical accounting estimates, see “Notes to
Consolidated Financial Statements.”