Siemens 2010 Annual Report Download - page 79

261 Additional information 147 Consolidated Financial Statements
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Global economic developments and a comparison with our competitors
Siemens concluded fiscal  very successfully in a challenging global environment. The basis of
this success was our sustainability-focused strategy, coupled with the outstanding achievements
of our employees and management. Seizing all opportunities for action, we took steps to minimize
the impact of slumps in demand. At our facilities in Germany, for example, we implemented reduced
working hours, particularly at the beginning of the fiscal year.
During the first half of fiscal , we were still very cautious when speaking about the prospects for
a global economic recovery. However, as the year unfolded, the upturn prevailed on a broad basis
worldwide. It’s extremely gratifying to see the economy picking up not only in the dynamic growth
markets of the BRIC countries – Brazil, Russia, India and China – and in the Gulf region but also in our
company’s traditional markets in the industrialized countries, with particularly strong growth in our
home country, Germany. Government infrastructure and stimulus programs played a key role here.
Throughout the crisis, we performed well compared to our most important competitors, returning
our company to the ranks of the world’s leading players. This positive development is primarily due to
steps we took early on, even before the crisis hit. We streamlined our organization and strengthened
our management system. We cut marketing, selling and general administrative expenses and
achieved excellent results with our procurement initiative. In a nutshell: Siemens is again in an excel-
lent competitive position and wields enormous business clout.
The best operating results in our company’s history
In fiscal , we recorded the best operating results our company has ever achieved. Total Sectors
profit rose four percent to €. billion – despite impairment charges of €. billion at our Healthcare
Sector. Net income surged  percent to €. billion. Growth gained momentum as the fiscal year
progressed. After declining during the first two quarters, new orders and revenue again increased in
the second half of the year. Overall, orders climbed three percent to slightly over € billion in fiscal
, while revenue stabilized at € billion.
Our employees played an invaluable role in keeping Siemens on a positive, stable course during the
worst global economic crisis in generations. We’re now rewarding their tremendous achievements
with a special one-time bonus payment for all employees who are not part of senior management.
Worldwide, we’ve earmarked a total of € million for this purpose.
We also want you, our shareholders, to benefit from our success in fiscal  – in the form of a sub-
stantially increased dividend. That’s why the Supervisory Board and the Managing Board will propose
to the Annual Shareholders’ Meeting in January  a dividend of €. – an almost  percent
increase compared to fiscal . This corresponds to a payout ratio of  percent, excluding the
non-cash items at our Healthcare Sector.