Siemens 2010 Annual Report Download - page 193

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

believes are appropriate and consistent with industry practice.
We may incur environmental losses beyond the limits, or out-
side the coverage, of such insurance, and such losses may
have a material adverse effect on our financial condition and
results of our operations, and our provisions for environmental
remediation may not be sufficient to cover our ultimate losses
or expenditures.
OPPORTUNITIES
Within our ERM approach, we regularly identify, evaluate and
respond to opportunities that present themselves in our vari-
ous fields of activity. While we describe our most significant
opportunities below, those are not the only ones we encoun-
ter. In addition, our assessment of opportunities is subject to
change as our Company, our markets and technologies are
constantly developing. As a consequence, new opportunities
may arise, existing opportunities may cease to be relevant, or
the significance of an opportunity may change. Generally, op-
portunities are assessed to the best of our knowledge, consid-
ering certain assumptions including market development,
market potential of technologies or solutions, and anticipated
developments in customer demand or prices, among other
things. When opportunities materialize, they may have a lower
effect than previously estimated on the basis of the underlying
assumptions. It is also possible that opportunities we see today
will never materialize.
We are in the process of continuously developing and im-
plementing initiatives to reduce costs, adjust capacities and
streamline our portfolio: Such measures aim at strengthen-
ing our competitive position and realizing cost advantages. For
example, we expect to generate sustainable improvements in
profitability from our supply chain management efforts aimed
at optimizing our supply chain management, generating as-
sociated savings as well as improving the management of our
supplier-related risk. For further information regarding our
supply chain management, see “Business and operating envi-
ronment – Value chain – Supply chain management.”
Through selective acquisitions and equity investments we
constantly strive to strengthen our leading technology posi-
tion, access additional market potential or further develop
our product portfolio: We constantly monitor our current and
future markets for opportunities for strategic acquisitions or
equity investments to complement organic growth. Such ac-
quisitions or equity investments could help us to strengthen
our market position in our existing markets, provide access to
new markets or complement our technological portfolio in
selected areas.
We have an opportunity to further grow in the area of envi-
ronment and climate protection: Many of the key areas of our
research and development activities focus on products and
solutions capable of strengthening and advancing our Environ-
mental Portfolio. Our Environmental Portfolio comprises prod-
ucts and solutions with outstanding energy efficiency, systems
and components for renewable forms of energy, and environ-
mental technologies for cleaner water and air. 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 increased productivity. We
believe that public policy initiatives in many countries will lead
to greater demand for such products and solutions in the years
ahead, including from government stimulus programs. Within
One Siemens we have set ourselves the target of exceeding
€ billion in revenue from our Environmental Portfolio by the
end of fiscal . For further information, see “Business and
operating environment – Sustainability – Environmental pro-
tection – Environmental Portfolio.”
We see further opportunities in the above-average growth
potential of emerging markets: It is expected that in coming
years emerging markets will continue to grow significantly
faster than industrialized nations, led by particularly strong
growth in the BRIC countries Brazil, Russia, India and China.
Within One Siemens, we want to take measures aimed at con-
tinuously increasing our share of revenue from emerging
markets. We believe, that developing the capability to design,
manufacture and sell so-called SMART (simplicity, mainte-
nance-friendly, affordable, reliable, and timely to market)
products will provide us with opportunities to gain market
share and enhance our local presence in these strategic growth
markets. Adding further SMART products to our portfolio and
developing stronger sales channels would enable us to in-
crease our revenues by serving large and fast-growing regional
markets, where customers may consider price more strongly
than product features when making a purchase decision.
Localizing value chain activities in low cost countries could
further improve our cost position: Localizing certain value
chain activities, such as procurement, manufacturing, mainte-
nance and service in markets like the BRIC countries and the
Middle East could enable us to reduce costs and to strengthen
our global competitive position, in particular compared to
competitors based in countries with a favorable cost structure.