Siemens 2009 Annual Report Download - page 177

89
 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
the repayment of a €0.5 billion floating rate extendible note
and US$750 million floating rate notes. A year earlier, we raised
net cash of €5.728 billion through three long-term capital mar-
ket transactions. These cash inflows were largely offset by a
decrease of €4.635 billion in short-term debt and other financ-
ing activities primarily including repayment of commercial pa-
per and repayment of debt originally raised by Dade Behring in
the amount of €0.4 billion. In addition, we used €4.350 billion
in cash for the purchase of common stock, including €4.0 bil-
lion in total under the first two tranches of our share buyback
plan. Dividends paid to shareholders in the current year (for
fiscal 2008) amounted to €1.380 billion, compared to €1.462
billion (paid for fiscal 2007) in the prior year.
CAPITAL RESOURCES AND REQUIREMENTS
Our capital resources consist of a variety of short- and long-
term financial instruments including loans from financial
institutions, commercial paper, medium-term notes and
bonds. In addition, other capital resources consist of liquid re-
sources such as cash and cash equivalents, future cash flows
from operating activities and current available-for-sale finan-
cial assets.
Our capital requirements include, among others, scheduled
debt service, regular capital spending, ongoing cash require-
ments from operating and SFS financing activities, dividend
payments, pension plan funding, portfolio activities and capi-
tal requirements for our share buyback plan, if continued in
fiscal 2010. Other expected capital requirements include cash
outflows in connection with our SG&A reduction program and
other restructuring measures especially in the Industry Sector.
Total debt comprises our notes and bonds, loans from banks,
obligations under finance leases and other financial indebted-
ness such as commercial paper. Total debt comprises short-
term debt and current maturities of long-term debt as well as
long-term debt, as stated on the Consolidated Balance Sheets.
Total liquidity refers to the liquid financial assets we had avail-
able at the respective balance sheet dates to fund our business
operations and pay for near-term obligations. Total liquidity
comprises Cash and cash equivalents as well as current Avail-
able-for-sale financial assets, as stated on the Consolidated
Balance Sheets. Net debt results from total debt less total
liquidity. Management uses the Net debt measure for internal
corporate finance management, as well as for external com-
munication with rating agencies, and accordingly we believe
that presentation of Net debt is useful for investors. Net debt
should not, however, be considered in isolation or as an alter-
native to short-term debt and long-term debt as presented in
accordance with IFRS. For further information to Net debt,
please refer to the end of this Management’s discussion and
analysis.
Commercial paper program – We have a US$9.0 billion (€6.1
billion) global multi-currency commercial paper program in
place, which includes the ability to issue US$-denominated
extendible notes. As of September 30, 2009, the nominal
amount outstanding under this program was US$493 million
(€337 million). Our issues of commercial paper have a maturity
of typically less than 90 days.
Notes and bonds – We have a “program for the issuance of
debt instruments” (medium-term note program) of €15.0 bil-
lion in place which we updated in May 2009. As part of this
update, we increased the maximum issuable amount under
this program from €10.0 billion to €15.0 billion, following a
previous increase from €5.0 billion to €10.0 billion in Decem-
ber 2008. Under this medium-term-note program we issued
the following notes:
(in millions of €)
September 30,
2009 2008
Short-term debt and current maturities
of long-term debt 698 1,819
Long-term debt 18,940 14,260
Total debt 19,638 16,079
Cash and cash equivalents 10,159 6,893
Available-for-sale financial assets (current) 170 152
Total liquidity 10,329 7,045
Net debt 19,309 9,034
1 We typically need a considerable portion of our cash and cash equivalents as well as
current available-for-sale financial assets at any given time for purposes other than
debt reduction. The deduction of these items from total debt in the calculation of
Net debt therefore should not be understood to mean that these items are available
exclusively for debt reduction at any given time.
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