Siemens 2010 Annual Report Download - page 211

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

New orders and order backlog; adjusted or organic growth rates of Revenue and new orders; book-to-bill ratio; Total Sectors
Profit; return on equity, or ROE; return on capital employed, or ROCE; ROCE (adjusted); Free cash flow; cash conversion rate, or
CCR; adjusted EBITDA; adjusted EBIT; earnings effect from purchase price allocation (PPA effects) and integration costs; net debt
and adjusted industrial net debt are or may be non-GAAP financial measures. These supplemental financial measures should not
be viewed in isolation as alternatives to measures of Siemens’ financial condition, results of operations or cash flows as pre-
sented in accordance with IFRS in its Consolidated Financial Statements. Other companies that report or describe similarly titled
financial measures may calculate them differently. Definitions of these supplemental financial measures, a discussion of the most
directly comparable IFRS financial measures, information regarding the usefulness of Siemens’ supplemental financial measures,
the limitations associated with these measures and reconciliations to the most comparable IFRS financial measures are available
on Siemens’ Investor Relations website at www.siemens.com/nonGAAP. For additional information, see “Supplemental financial
measures” and the related discussion in Siemens’ annual report on Form -F, which can be found on our Investor Relations
website or via the EDGAR system on the website of the United States Securities and Exchange Commission.
This document contains forward-looking statements and information – that is, statements related to future, not past, events.
These statements may be identified by words such as “expects,” “looks forward to,” “anticipates,” “intends,” “plans,” “believes,”
“seeks,” “estimates,” “will,” “project” or words of similar meaning. Such statements are based on the current expectations and
certain assumptions of Siemens’ management, and are, therefore, subject to certain risks and uncertainties. A variety of factors,
many of which are beyond Siemens’ control, affect Siemens’ operations, performance, business strategy and results and could
cause the actual results, performance or achievements of Siemens to be materially different from any future results, performance
or achievements that may be expressed or implied by such forward-looking statements. In particular, Siemens is strongly af-
fected by changes in general economic and business conditions as these directly impact its processes, customers and suppliers.
This may negatively impact our revenue development and the realization of greater capacity utilization as a result of growth. Yet
due to their diversity, not all of Siemens’ businesses are equally affected by changes in economic conditions; considerable differ-
ences exist in the timing and magnitude of the effects of such changes. This effect is amplified by the fact that, as a global
company, Siemens is active in countries with economies that vary widely in terms of growth rate. Uncertainties arise from,
among other things, the risk of customers delaying the conversion of recognized orders into revenue or cancellations of recog-
nized orders, of prices declining as a result of continued adverse market conditions by more than is currently anticipated by
Siemens’ management or of functional costs increasing in anticipation of growth that is not realized as expected. Other factors
that may cause Siemens’ results to deviate from expectations include developments in the financial markets, including fluctua-
tions in interest and exchange rates (in particular in relation to the U.S. dollar), in commodity and equity prices, in debt prices
(credit spreads) and in the value of financial assets generally. Any changes in interest rates or other assumptions used in calculat-
ing pension obligations may impact Siemens’ defined benefit obligations and the anticipated performance of pension plan assets
resulting in unexpected changes in the funded status of Siemens’ pension and post-employment benefit plans. Any increase in
market volatility, further deterioration in the capital markets, decline in the conditions for the credit business, continued uncer-
tainty related to the subprime, financial market and liquidity crises, or fluctuations in the future financial performance of the
major industries served by Siemens may have unexpected effects on Siemens’ results. Furthermore, Siemens faces risks and
uncertainties in connection with certain strategic reorientation measures; the performance of its equity interests and strategic
alliances; the challenge of integrating major acquisitions and implementing joint ventures and other significant portfolio mea-
sures; the introduction of competing products or technologies by other companies or market entries by new competitors; chang-
ing competitive dynamics (particularly in developing markets); the risk that new products or services will not be accepted by
customers targeted by Siemens; changes in business strategy; the outcome of pending investigations, legal proceedings and
actions resulting from the findings of, or related to the subject matter of, such investigations; the potential impact of such inves-
tigations and proceedings on Siemens’ business, including its relationships with governments and other customers; the potential
impact of such matters on Siemens’ financial statements, and various other factors. More detailed information about certain of
the risk factors affecting Siemens is contained throughout this report and in Siemens’ other filings with the SEC, which are
available on the Siemens website, www.siemens.com, and on the SEC’s website, www.sec.gov. Should one or more of these risks
or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those
described in the relevant forward-looking statement as expected, anticipated, intended, planned, believed, sought, estimated or
projected. Siemens neither intends to, nor assumes any obligation to, update or revise these forward-looking statements in light
of developments which differ from those anticipated.