Siemens 2009 Annual Report Download - page 254

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 Reports Supervisory Board /
Managing Board  Corporate Governance  Management’s discussion and analysis  Consolidated Financial Statements
 Consolidated Statements of Income  Consolidated Statements of Income
and Expense Recognized in Equity
 Consolidated Balance Sheets  Consolidated Statements of Cash Flow
Increases and decreases in the discount rate, rate of compen-
sation increase and rate of pension progression which are
used in determining the DBO do not have a symmetrical effect
on NPBC primarily due to the compound interest effect created
when determining the net present value of the future pension
benefit. If more than one of the assumptions were changed
simultaneously, the cumulative impact would not necessarily
be the same as if only one assumption was changed in isola-
tion.
Pension benefits: Plan assets
The asset allocation of the plan assets of the principal pension
benefit plans as of the balance sheet date for fiscal 2009 and
2008 as well as the target asset allocation for fiscal year 2010,
are as follows:
Pension benefits: Sensitivity analysis
A one-percentage-point change of the established assump-
tions mentioned above, used for the calculation of the NPBC
for fiscal 2010, or a change in the fair value of plan assets of
€500, as of September 30, 2009, respectively, would result in
the following increase (decrease) of the fiscal 2010 NPBC:
Target asset allocation Asset allocation
September 30, 2010 September 30, 2009 September , 
Asset class Total Domestic Foreign Total Domestic Foreign
Equity 20 – 50% 27% 27% 29% 29% 29% 29%
Fixed income 40 – 70% 61% 62% 59% 61% 62% 61%
Real estate 5 – 15% 9% 8% 9% 9% 8% 10%
Cash and other assets 5 – 15% 3% 3% 3% 1% 1% 0%
100% 100% 100% 100% 100% 100%
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Effect on NPBC 2010
due to a one-
percentage-point/€500
increase decrease
Discount rate 18 (29)
Expected return on plan assets (195) 195
Rate of compensation increase 26 (23)
Rate of pension progression 139 (109)
Fair value of plan assets (32) 32
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Derivatives are reported under the asset class whose risk is
hedged. Current asset allocation is composed of high quality
government and selected corporate bonds. Siemens con-
stantly reviews the asset allocation in light of the duration of
its pension liabilities and analyzes trends and events that may
affect asset values in order to initiate appropriate measures at
a very early stage.
The plan assets include own shares and debt instruments of
the Company with a fair value of €50 as of September 30, 2009,
as well as domestic real estate with a fair value of €274 and
€265 as of September 30, 2009 and 2008, respectively, which is
occupied by the Company.
The following table shows the actual return on plan assets for
fiscal 2009 and 2008:
Year ended September 30, 2009 Year ended September 30, 2008
Total Domestic Foreign Total Domestic Foreign
Actual return on plan assets 1,906 1,546 360 (2,177) (1,627) (550)
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