Siemens 2010 Annual Report Download - page 183

113 Report on post-balance sheet date events
114 Report on expected developments and associated
material opportunities and risks
128 Information required pursuant to § () and
§ () HGB and explanatory report
133 Information required pursuant to § () and
§ () no.  HGB and explanatory report
135 Compensation and declaration pursuant to §a HGB
135 Additional information for supplemental
financial measures
138 Siemens AG (Discussion on basis of HGB)
147 Consolidated Financial Statements
261 Additional information

Sectors and SFS will be within their respective ranges for both
fiscal  and . In particular, we expect fiscal  results
to include the divestment of our stake in Areva NP held by the
Energy Sector.
We expect that income development from Equity Investments
will remain volatile in fiscal  and fiscal . Restructuring
measures continue at NSN, which we expect to have substan-
tial impacts on income from Equity Investments. Develop-
ments at NSN in coming periods may be influenced by integra-
tion of wireless network infrastructure assets from Motorola,
the acquisition of which is expected to close in coming
months.
Measures initiated in fiscal  to improve the competitive
position of Siemens IT Solutions and Services will be imple-
mented in fiscal . While we expect a substantial improve-
ment in fiscal  results compared to the loss reported for
fiscal , we do not expect the business to deliver results
typical of its industry within the forecast horizon.
We expect that activities at the Corporate level related to estab-
lishing Siemens IT Solutions and Services as a legally separate,
stand-alone operating entity and wholly owned subsidiary of
Siemens, will result in substantial charges in fiscal . These
charges will be reported within Corporate items. In fiscal
, Corporate items included expenses of € million re-
lated to special remuneration for non-management employees
as mentioned above. Once the allocation of the remuneration
is determined in the first quarter of fiscal , the expenses
will be allocated primarily to the Sectors in fiscal . Begin-
ning with fiscal , central infrastructure costs that have
been included in Corporate items up to and including fiscal
 will be allocated primarily to the Sectors. Financial infor-
mation for prior periods will be reported on a comparable ba-
sis. For example, comparable fiscal  results will show al-
located central infrastructure costs of € million.
Overall assessment
With continuing improvement in Siemens’ markets, we expect
organic order intake to show a clear increase compared to fiscal
. Supported also by our already strong order backlog, we
expect revenue to return to moderate organic growth in fiscal
. We further anticipate income from continuing operations
to exceed reported fiscal  results by at least % to %.
This outlook excludes effects that may arise from legal and
regulatory matters. Based on our expectation for capital-effi-
cient growth in our businesses and continuous improvement
relative to markets and competitors, we expect ROCE (adjusted)
within the target range of % to % in both fiscal  and
fiscal .
Overall, the actual development for Siemens and its segments
may vary, positively or negatively, from our expectations due
to the inherent uncertainties related to a number of factors
discussed above, particularly including recovery of the global
economy, anticipated market development, limited effects re-
lated to currency, and progress in converting our strong order
backlog into current revenue, as well as the risks and opportu-
nities described below. See “– Risks” as well as “– Opportuni-
ties.” This Report on expected developments should be read in
conjunction with the disclaimer at the end of this Combined
management’s discussion and analysis.