Siemens 2009 Annual Report Download - page 208

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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
long-term basis. In addition, the realignment of our organiza-
tional structure and related process improvements are ex-
pected to provide further business opportunities for Siemens.
Another opportunity for us is to further benefit from the above-
average growth potential in the emerging markets by strength-
ening local entrepreneurship in these countries. Localizing
certain activities, such as procurement, manufacturing, main-
tenance and service in markets like the BRIC countries Brazil,
Russia, India and China and the Middle East could enable us to
reduce costs while enhancing our local presence, which in
turn is also expected to provide additional business opportuni-
ties in these strategic growth markets.
We also have an opportunity to further grow in the areas of
environment and climate protection. Our environmental port-
folio comprises products and solutions with exceptional en-
ergy efficiency, systems and components for renewable forms
of energy, and environmental technologies. These products
and solutions are intended to help our customers to reduce
their carbon dioxide footprint, cut their energy costs and im-
prove their profitability through an increase in their productiv-
ity. We anticipate that public policy initiatives in many coun-
tries will lead to greater demand for such products and solu-
tions in the years ahead, including from government stimulus
programs already announced in connection with the current
macroeconomic and financial crisis. For further information,
see “Business and operating environment—Strategy—Impor-
tant corporate programs and initiatives—Environmental port-
folio.”
In addition, through our research and development activities
as well as through selective acquisitions, we constantly strive
to develop new products and solutions and improve existing
ones. We invest in new technologies that we expect to meet
future demand in accordance with the four strategic mega-
trends demographic change, urbanization, climate change
and globalization (for further information, see “Business and
operating environment—Global megatrends).” For example,
an opportunity is to develop the capabilities required to de-
sign, manufacture and sell so-called SMART products (Simple,
Maintenance-friendly, Affordable, Reliable and Timely to mar-
ket). Adding such products to our current portfolio would en-
able us to increase our revenues by serving large and fast-
growing regional markets, such as in Asia, where customers
may consider price as strongly as quality and innovation when
making a purchase. Many of the key areas of our research and
development activities focus on products and solutions capa-
ble of strengthening and expanding our environmental portfo-
lio. These focus areas include smart power grids, the technol-
ogy for electric vehicles, including their integration into these
smart grids, as well as concentrated solar power that plays an
important role in accelerating the implementation of the
DESERTEC concept.
Our business, financial condition or results of operation could
suffer material adverse effects as a result of certain risks. For
an overview of our risk factors, see “Risk report.”