Siemens 2009 Annual Report Download - page 180

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 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
Share buyback plan – In November 2007, we announced a
share buyback plan for up to €10 billion in share repurchases
through 2010 amongst others for the purpose of cancellation
and reduction of capital stock and to fulfill obligations arising
from share-based compensation programs. Since the start of
the share buyback program in fiscal 2008, we repurchased
shares in two tranches with a total volume of approximately
€4.0 billion. During fiscal 2009 we made no shares purchases
under this program.
Dividends – At the Annual Shareholders’ Meeting scheduled for
January 26, 2010, the Managing Board, in agreement with the
Supervisory Board, will submit the following proposal to allo-
cate 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’ Meet-
ing, which aggregates to an expected total distribution of €1.388
billion, and the remaining amount to be carried forward.
With our ability to generate positive operating cash flows, our
total liquidity of €10.329 billion and our undrawn lines of credit
of €5.9 billion and given our credit ratings at year-end we be-
lieve that we have sufficient flexibility to fund our capital re-
quirements including for scheduled debt service, regular capi-
tal spending, ongoing cash requirements from operating and
SFS financing activities, dividend payments, pension plan
funding, portfolio activities and for our share buyback plan, if
continued in fiscal 2010. Also in our opinion, the working capi-
tal is sufficient for the Company ’s present requirements.
Payments due by period
(in millions of €) Total Less than  year  –  years  –  years After  years
Debt 19,638 698 4,893 4,334 9,713
Purchase obligations 11,218 9,769 1,267 146 36
Operating leases 2,851 742 897 530 682
Total contractual cash obligations 33,707 11,209 7,057 5,010 10,431
B25T028_E
Debt – At September 30, 2009, Siemens had €19.638 billion of
short- and long-term debt, of which €698 million will become
due within the next 12 months. Short-term debt includes cur-
rent maturities of long-term debt, as well as loans from banks
coming due within the next 12 months. At September 30,
2009, the weighted average maturity of our bonds and notes
due after one year was 5.95 years. At September 30, 2008, total
debt was €16.079 billion. Further information about the com-
ponents of debt is given in “Notes to Consolidated Financial
Statements.”
Debt for Siemens at September 30, 2009 consisted of the
following:
Short-
Term
Long-
Term
Total
(in millions of €)
Notes and bonds – 16,502 16,502
Loans from banks 261 1,910 2,171
Other financial indebtedness 392 379 771
Obligations under finance leases 45 149 194
Total debt 698 18,940 19,638
B25T029_E
Contractual obligations
In the ordinary course of business, Siemens’ primary contrac-
tual obligations regarding cash involve debt service, purchase
obligations and operating lease commitments.
The following table summarizes contractual obligations for
future cash outflows as of September 30, 2009: