Siemens 2010 Annual Report Download - page 210

6 To our shareholders 21 Corporate Governance 49 Combined management’s discussion and analysis
50 Business and operating environment
78 Fiscal  – Financial summary
81 Results of operations
98 Financial position
110 Net assets position
113 Overall assessment of the economic position

R&D activities therein described which involve lightning solu-
tions in Industry and laboratory diagnostics in Healthcare are
being conducted largely by units outside Siemens AG.
REPORT ON POST-BALANCE SHEET DATE EVENTS
As of October , , Siemens IT Solutions and Services
was carved out in a separate legal entity wholly owned by
Siemens AG.
RISK AND RISK MANAGEMENT
As the parent company of the Siemens group, Siemens AG is
integrated into the group-wide risk management system. For
relevant details refer to “Report on expected developments and
associated material opportunities and risks – Risk manage-
ment.”
The description of the internal control system for Siemens AG
required by § () HGB is included in “Information required
pursuant to § () and § () no  HGB and explanatory
report.”
As the parent company of the Siemens group, Siemens AG is
exposed, directly or indirectly via its subsidiaries, to risks that
are largely the same as those to which the group is exposed.
These risks are described in “Report on expected developments
and associated material opportunities and risks – Risks.”
OUTLOOK
As the parent company of the Siemens group, we expect that
Siemens AG will benefit from the expected development of the
group. For the Siemens group, we expect organic revenue to
show moderate growth in fiscal . Based on an expected
positive development in global energy markets and in our
longer-cycle industrial markets, we expect organic revenue
growth to continue in fiscal  for the Siemens group. How-
ever, revenue development for Siemens AG will be held back
by the carve-out of Siemens IT Solutions and Services.
With One Siemens, our framework for sustainable value cre-
ation, we want to provide an attractive dividend payout to our
investors. We have therefore set a target for our dividend pay-
out ratio, defined as the ratio of the total dividend payout to
Net income of the Siemens group (as presented in the “Con-
solidated Financial Statements”). In future, we aim to propose
an annual dividend payout ratio of  – % of Siemens group’s
Net income to our shareholders. For these purposes, the per-
centage calculation will take into account exceptional non-
cash items within income. We expect that in coming periods
Siemens AG will generate Net income, supplemented with re-
tained earnings if necessary, sufficient for the dividend distri-
bution. In particular, we expect fiscal  results to include
the divestment of our stake in Areva NP held by the Energy
Sector.
For information regarding the expected development of the
global economy and the markets served by our Sectors, and
regarding the assumptions underlying expected development
of the Siemens group, see “Report on expected developments
and associated material opportunities and risks – Report on
expected developments.”