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Annual Report 
www.siemens.com
Creating sustainable cities

Table of contents

  • Page 1
    Creating sustainable cities Annual Report 2011 www.siemens.com

  • Page 2
    7.8 million inhabitants 5,030 people per square kilometer > London

  • Page 3
    ... the world population in cities number of city dwellers is continuing to grow. Experts predict that urban areas will be home to about 60% of the world's population by 2030 - and this figure is expected to reach 70% by 2050. Over the next 20 years, the global population will increase by an estimated...

  • Page 4
    Total world population 7 billion ~50 7.8 million inhabitants 5,030 people per square kilometer > London Percentage of world population in cities - 2011 % Total world population 9 billion ~70 Percentage of world population in cities - 2050 %

  • Page 5
    ...2011, more people worldwide lived in cities than in rural areas - and the number of city dwellers is continuing to grow. Experts predict that urban areas will be home to about 60% of the world's population by 2030 - and this figure is expected to reach 70% by 2050. Over the next 20 years, the global...

  • Page 6
    ...mainly 5,030 people per square kilometer because of inadequate infrastructures > London for mobility, power and water as well as energy-inefficient buildings - and it's clearly cause for concern. But it also contains the seeds of a solution: cities committed to sustainable urban development can make...

  • Page 7
    London ~70 % Percentage of the world's greenhouse gas emissions generated in cities ~60 % Percentage of the world's freshwater consumed in cities

  • Page 8
    ... the engines of growth Cities are major contributors to global economic growth. The ten economically strongest cities already generate one-fifth of the world's total GDP - and this share is increasing. The result? A growing need to invest 7.8 million inhabitants in advanced infrastructure solutions...

  • Page 9
    London ~3.5 Annual GDP growth to 2025 - Cities % ~3.0 Annual GDP growth to 2025 - Worldwide %

  • Page 10
    ...Account Managers are advising urban decision-makers in the crucial planning phase of infrastructure projects. And last but not least, our innovative products and solutions are making cities more environmentally friendly, improving the quality of urban life and cutting costs. > www.siemens.com/cities...

  • Page 11
    ... Page 1 million inhabitants London Page 26 million inhabitants Singapore São Paulo Page 62 million inhabitants To learn more about how we're promoting sustainable development and improving the quality of life in London, Singapore and São Paulo, please take a look at our three city reports.

  • Page 12
    ... Part I 1 City report: London Siemens - A pioneer of our time City report: Singapore Focus on innovation7.8 million inhabitants driven growth markets Get closer to our customers Use the power of Siemens City report: São Paulo Unleash the strengths of an integrated technology company 83 Siemens is...

  • Page 13
    London Contents Part I

  • Page 14
    ... inhabitants, London is western Europe's largest city London is at the heart of world business and globalization. By applying our innovative technology solutions, the city is in a better place to tackle the challenges it faces in its drive to achieve a sustainable future. www.siemens.com/ar/london

  • Page 15
    ... formerly head of project management at Network Rail, the owner and operator of most of the rail infrastructure in the UK. Kevin Worster (right) Kevin Worster has been Siemens' City Account Manager in London since October 2009. His job is to drive innovation and thought leadership and leverage our...

  • Page 16
    ... challenges relating to sustainable development in the city. 04 I'm glad to hear that. It always takes an effort to create such a role in a large and diversified organization. At Siemens, we believe that we need to become involved very early in any decision-making process for urban infrastructure...

  • Page 17
    Clinicians at Queen's Hospital scanned 13,340 patients last year using Siemens' SOMATOM Sensation CT system - a testimony to the growing need for early diagnostic imaging and the technology's increasing importance. 13,340 patients

  • Page 18
    With a capacity of 630 megawatts, the London Array will be the world's largest offshore wind farm. Not only are we supplying, installing and commissioning the facility's 175 wind turbines; we'll also be maintaining them under a five-year service agreement. 630 megawatts

  • Page 19
    .... It was a very fast-track program. Martin Powell "A sustainable city is one that combines all of its various strategies together on water, energy, waste and transport, so that you have a single, holistic approach to tackle your urban challenges." A Siemens engineer maintains a wind turbine at...

  • Page 20
    .... Some of the city 's buses now have Siemens technology, but the main challenge is that there's a time limit on the things we really want to bring out for 2012. We're working in close partnership with the Greater London Authority and the London Development Agency in terms of policy to make sure that...

  • Page 21
    The Heathrow Express carries an average of 16,000 passengers a day. Comprising 14 Desiro 332 electric trains, the rail link features extremely comfortable, air-conditioned cars equipped with TV monitors and a host of other conveniences. 16,000 passengers

  • Page 22
    Our toll system is enabling London to reduce its CO2 emissions by 150,000 tons a year. Since the system's launch in 2003, traffic volume on the city's streets has been cut by 20% and traffic congestion by 26%. Today, 60,000 fewer cars travel through London each day. 150,000 tons

  • Page 23
    ...with UK Power Networks and Siemens and with other partners. We realized we had an opportunity to get a lot of money invested in London to understand how our grid works, how it will work in the future, how smart technology will integrate with our network, where it's failed in lots of other cities. We...

  • Page 24
    ...key attainments to be had from working with London would be to understand the city 's targets and drivers. You really need to put yourself in a city 's shoes to understand where it's going in terms of air quality, buildings, transporta­ tion infrastructure, and then link in our innovative solutions...

  • Page 25
    About 100,000 people are expected to visit the Crystal, our sustainability center in London's Docklands, every year. At the center, they'll discover how cities can develop sustainably - and what a technology company like Siemens can do to help. 100,000 visitors

  • Page 26
    ... location. For the future, I hope that Siemens continues to invest in the technology they have today and implement that into London right now. I think the London government needs to make some big infrastructure decisions today in order to allow even more investment into these areas fifteen years...

  • Page 27
    ... grow - with important consequences for infrastructure, energy supply and transport. Siemens is collaborating closely with London's government to master the challenges facing the city in its drive to achieve a sustainable future. The Crystal, our sustainability center, is located in the heart of the...

  • Page 28
    ... London electric mobility project: to have 1,300 public charging stations in operation across the entire city by 2013. Supplying software solutions geared to the project's complex requirements as well as related services, we're playing a key role in London's drive to become the capital of electric...

  • Page 29
    ... Hospital An integrated and consolidated blood sciences solution from Siemens has enabled the pathology department at King's College Hospital to create an end­to­end diag­ nostics service. The result: increased process efficiency, productivity gains, predictable turnaround times and workforce re...

  • Page 30
    The UK capital is one of Europe's most important metropolitan areas and a shining example of how Siemens solutions can contribute to sustainable urban development. London Hybrid buses Smart grid Infrastructure for electric mobility Heathrow Express

  • Page 31
    Q Queen's Hospital Toll system The Crystal - A Sustainable Cities Initiative by Siemens K King's College Hospital Automated video surveillance London Array offshore wind farm

  • Page 32
    ...- The pioneer in > Energy efficiency > Industrial productivity > Affordable and personalized healthcare > Intelligent infrastructure solutions 20 Siemens - A pioneer of our time Vision Strategy One Siemens 46 Focus on innovation-driven growth markets 50 Get closer to our customers 20 21 22 22

  • Page 33
    ... with these values, our strategy and the One Siemens framework, it also defines our business goals and specifies a clear direction for our develop­ ment. We're tackling the challenges of our time - just as we did when Werner von Siemens founded our Company over 160 years ago. This commitment...

  • Page 34
    ...And our strategy shows us how to make it a reality. We're aiming to capture and maintain leading market and technology positions in all our businesses in order to achieve sustainable profitable growth and, thus, continually increase our company value. We intend to reap par­ ticular benefit from the...

  • Page 35
    ... - Excellent - Innovative 2 Stand for integrity Empower our diverse and engaged people worldwide e ycl Use the power of Siemens 56 Use the power of Siemens 82 Unleash the strengths of an integrated technology company Ad ju ste di Encourage lifelong learning and development Ca pi nd...

  • Page 36
    1-3 Framework for sustainable value creation 1 2 3 A-C Strategic directions Page 46 Page 50 A B Page 56 C a-i Focus areas Page 49 c Page 48 Page 47 b a d e f Page 52 Page 54 Page 51 Page 60 i h g Page 57 Page 58 23

  • Page 37
    ... the servicing of our financial obligations. Further information on our framework for sustainable value creation is available in the combined management's discussion and analysis on pages 56 ­ 60 of Part II of this Annual Report. 20 Siemens - A pioneer of our time Vision Strategy One Siemens 46...

  • Page 38
    ... a colonial outpost at the southern tip of Asia's mainland, Singapore has grown into a vibrant metropolis, an international business and financial hub and the world's second­busiest port. Siemens has been a reliable and expert partner throughout Singapore's development. www.siemens.com/ar/singapore

  • Page 39
    ... technologies. He is also a member of the managing board of the International Water Association and a member of the Civil Service College Board. Steffen Endler (right) Steffen Endler was appointed Siemens' City Account Manager for Singapore in 2011. He also holds a number of key positions in Siemens...

  • Page 40
    ... of the investments we have made over the past decades, we are well placed to meet these challenges. 05 For further information on Singapore, see the Singapore portrait in the Asian Green City Index, a study conducted by the Economist Intelligence Unit in cooperation with Siemens: www.siemens.com...

  • Page 41
    The two new blocks that we've supplied for PowerSeraya's combined-cycle cogeneration power plant on Jurong Island have a capacity of 800 megawatts. The blocks, which emit 40% less CO2 than their conventional counterparts, have increased the plant's thermal efficiency to over 75%. 800 megawatts

  • Page 42
    Singapore's Khoo Teck Puat Hospital is now using one of the most reliable computed tomography systems on the market: our SOMATOM Definition Flash. The system reduces radiation dosage in heart scans to less than one millisievert. < 1 millisievert

  • Page 43
    ... discuss further challenges for Singapore's sustainable development. 06 Khoo Teng Chye And there is one area that is particularly important for Singapore's future development, and that is, of course, water. We are very keen on saving water, and are watching cities across the world closely for...

  • Page 44
    ... with us to invest in creating a research center for water in Singapore. It is an example of good partnership between the government and the private sector. A new water treatment plant began operation in Singapore's Changi district in 2010. Using Siemens membrane filters, the plant can produce up...

  • Page 45
    The pores of the fiber membranes used to purify pretreated wastewater are only 0.04 micrometers thick - or about 2,000 times thinner than a single sheet of paper. The membranes reliably remove all loose contaminants such as dirt particles, bits of organic matter and germs. 0.04 micrometers

  • Page 46
    Our R&D team in Singapore is developing an innovative technology that will cut energy consumption in the desalination process to just 1.5 kWh/m3 of water treated, compared to the 7.0 kWh/m3 required in conventional processes. 1.5 kilowatt hours

  • Page 47
    ... new Marina Bay Financial Centre, which is equipped with building automation, security and fire safety solutions from Siemens. In our global water R&D center in Singapore, Siemens scientists are working in close cooperation with other experts to develop solutions that will help supply the city with...

  • Page 48
    ... future development of major metropolitan areas, our City of the Future exhibition in Singapore enables decision-makers from around the world to learn about the innovative solutions available for cities and the sustainable management of urban growth. Postal automation technology from Siemens sorts...

  • Page 49
    Roughly three million pieces of mail pass through the Singapore Post Centre every day - with the help of postal automation technology supplied by Siemens. 3 million items

  • Page 50
    Electric vehicles emit 66% less CO2 than their conventional counterparts. We offer innovative electric mobility solutions for today and tomorrow. 66% less CO2

  • Page 51
    .... Singapore will invest heavily in two new lines in the next decade, and Siemens is of course very keen on supplying its technology in terms of train sets, Khoo Teng Chye "Singapore has always been a living laboratory, given our constraints and our need to achieve balanced development." 39

  • Page 52
    ... of Asia, in the rest of the world. And we also have to deal with the challenge of climate change. The kinds of solutions Siemens has to offer in terms of water, in terms of energy and in terms of mobility will show increasing demand over the next several years. 40 Siemens projects in Singapore

  • Page 53
    ...with another power plant in 2011. Water - and, in particular, water supply and treatment - has been another main focus of our activities in Singapore: we've built treatment facilities in the island's Kranji and Changi districts and opened a global water research and development center in the city of...

  • Page 54
    ... projects, we're helping Singapore meet its growing need for cost-effective and ecofriendly power. Khoo Teck Puat Hospital Khoo Teck Puat Hospital is the city-state's newest public hospital and one of the world's most ecofriendly medical facilitites. Opened in 2010, the 550-bed hospital provides...

  • Page 55
    ... an innovation leader in water purification worldwide. That's why we've located our global R&D center for water technologies in the island nation. At the center, 45 Siemens scientists work hand-in-hand with other experts to produce energy-efficient, ecofriendly clean water solutions. Their successes...

  • Page 56
    Siemens is one of the largest European companies operating in Singapore. We're contributing to the city-state's sustainable development with products and solutions for mobility, healthcare, energy supply and safe, efficient buildings. Singapore NEWater plants Driverless metro line R&D center for ...

  • Page 57
    Khoo Teck Puat Hospital Fire protection for the Kallang-Paya Lebar Expressway City of the Future Deep Tunnel Sewerage System Singapore Post Centre ancial Centre Baggage handling for the Marina Cruise Centre

  • Page 58
    ... spirit is a key foundation of our business success. We're breaking new ground while focusing on growth markets, thinking across borders and considering every challenge from a variety of perspectives. Our activities are closely geared to innovation-driven markets with long-term growth potential. And...

  • Page 59
    ...- our researchers and developers tackle these challenges every day. Hydrogen is one solution: it's an optimal energy carrier and a valuable raw material. Hydrogen gas can be produced from water by means of electrolysis using, for example, surplus green power. Siemens employees are now working on new...

  • Page 60
    ... of subsea power grid solutions in the medium term. To continue driving our booming business in India and boost its influence on our operations on the subcontinent, Siemens AG increased its stake in our publicly listed Indian Regional Company from 55.3% to 75% in fiscal 2011. At the end of 2010, we...

  • Page 61
    ... wind power market. These successes illustrate how the products and solutions in our Environmental Portfolio are creating advantages on three fronts: for our customers, who are benefiting from lower energy costs and increased efficiency; for future generations, whose quality of life and environment...

  • Page 62
    ...our markets and a strong, local partner to our customers everywhere in the world. Besides playing a leading role in the industrialized countries, we're also successfully developing and producing more and more innovative products and solutions in the emerging countries - strengthening our position by...

  • Page 63
    ... South America and the Middle East are achieving high levels of economic growth, in which we intend to participate. Our strategic aim is to increase the share of revenue we generate in the world's emerging countries, thus strengthening our position in high-growth markets. Over the past few years, we...

  • Page 64
    ... power consumption poses a long-term challenge. In India, for example, medium-voltage switchgear is in very short supply. Competition on this market, which is characterized by regionally specific technical requirements, is fierce. Proceeding on the basis of our globally standardized product...

  • Page 65
    .... We've set up a worldwide Siemens service network and conduct regular service conferences to help ensure that service issues are jointly investigated, thoroughly discussed and successfully resolved. Looking ahead, our service business will rest increasingly on two main pillars. The first pillar...

  • Page 66
    ... We've long had a reputation for outstanding customer proximity. Our account representatives are committed to providing our customers, most of whom are small to mid-sized businesses, with direct local support worldwide. In addition, more than 1,200 professional Key Account Managers support our major...

  • Page 67
    ... right direction. The jury was impressed by our fostering of long-term customer relationships, cultivation of promising account managers and close customer proximity at Managing Board level. As part of our Executive Relationship Program, the members of Siemens' Managing Board maintain close contacts...

  • Page 68
    ... to integrity is what guides us in our ongoing pursuit of business success. Our actions are governed by binding principles to which we expect our customers, suppliers and employees to adhere. 20 Siemens - A pioneer of our time 46 Focus on innovation-driven growth markets 50 Get closer to our...

  • Page 69
    ... such as project management and software development, we rolled out new programs in fiscal 2011 tailored to various organizational functions - from supply chain management and corporate human resources to sales management. As we see it, one key prerequisite for long­term business success is always...

  • Page 70
    ... web-based new@Siemens learning program comes in, giving more than 18,000 employees from over 80 countries a com­ prehensive, well­focused and informative introduction to the Company in 2011. h. Empower our diverse and engaged people worldwide Siemens is a global powerhouse with a highly diverse...

  • Page 71
    ... of our total work­ force - are Siemens shareholders. This is a clear sign of our employees' trust in our values and vision and in the strength and future of our Company - a sign that has also attracted the attention of external observers. In the summer of 2011, the Global Equity Organization (GEO...

  • Page 72
    ... position in the battle against corruption. We also fulfill our responsibilities to society, the environment and our employees. For us, occupational safety, health management and the conservation of natural resources are all part of ethical business conduct. Fair competition requires that all market...

  • Page 73
    ... programs and sus­ tainability audits are just two examples of how we're ensuring conformity with these principles. A binding Code of Conduct for Siemens suppliers provides the foundation for our partners' integrity. 56 57 58 60 Use the power of Siemens Encourage lifelong learning and development...

  • Page 74
    ... Paulo - A city in transition São Paulo is the most populous city of the Southern Hemisphere. A purely industrial center only a few decades ago, the city has now burgeoned into a dynamic modern metropolis - with all the challenges and opportunities that this transformation entails. www.siemens.com...

  • Page 75
    ... - On course for a sustainable future? Meeting point: City Hall, São Paulo, August 26, 2011, 10:00 a.m. Sergio Boanada, Manager of Siemens' Market Development Board Infrastructure and Cities in Brazil, meets Deputy Mayor Alda Marco Antonio in São Paulo's historic city center. On a walk through...

  • Page 76
    ... further development is sustainable? 04 Alda Marco Antonio Siemens' transformer substation in Anhanguera is making a major contribution to improving São Paulo's energy supply. 1.4 20.0 São Paulo Well, for one thing, we're taking a long hard look at our mass transit system. Our metro network is...

  • Page 77
    Directly linked to the Anhanguera transformer substation, some 500,000 consumers are benefiting from the country's largest gas-insulated high-voltage system. 500,000 consumers

  • Page 78
    With 560 beds, Hospital Israelita Albert Einstein is one of Latin America's largest medical facilities. Our most advanced healthcare systems are enabling the hospital's physicians to deliver a comprehensive portfolio of care. 560 beds

  • Page 79
    ... one area where Siemens can help. We've already presented some of our ideas to the city government. We've contributed technology for São Paulo Metro's driverless Line 4-Yellow. We're also participating in electric bus projects. In particular, we're currently involved in talks to develop an electric...

  • Page 80
    ... to tackle resolutely and vigorously. Advanced technologies and extensive investment hold the key." 07 Sergio Boanada What would you say is the main prerequisite for São Paulo's sustainable development? Is it financial resources, innovative technologies or political commitment? 08 Alda Marco...

  • Page 81
    Our MAGNETOM Espree magnetic resonance imaging system combines a 70-centimeter inner bore with Tim® (Total imaging matrix) technology to enable high-quality whole-body scans in a single pass. 70 centimeters

  • Page 82
    Per capita water consumption in São Paulo averages 180 liters a day. We're helping state water utility Sabesp tackle this huge challenge by providing water treatment systems and waterrelated services. 180 liters

  • Page 83
    09 Sergio Boanada Siemens' City Account Managers are involved in infrastructure projects at an early stage. Sergio Boanada is already involved in the development phase of a number of projects for São Paulo's city administration. For years, water conservation has been a major concern for São ...

  • Page 84
    ... stage. The upcoming World Cup is an important event for Siemens, and we want to help make it a success. Diagnósticos da América (DASA) is one of Latin America's leading providers of clinical diagnostics. Its major facility in São Paulo uses the latest Siemens diagnostic technologies. 72

  • Page 85
    DASA offers more than 3,000 different clinical analysis and imaging procedures. We supply a large part of the facility's medical technology and are helping make its processes more efficient, economical and environmentally friendly. 3,000 procedures

  • Page 86
    The new Line 4-Yellow driverless metro carries 500,000 passengers a day. We've supplied the line's fully automated drives and control technology and installed its energy management, communications, air circulation and security infrastructure. 500,000 passengers

  • Page 87
    ...that will benefit both São Paulo and Siemens." Sergio Boanada The use of fully automated driverless technology has made it possible to reduce the intervals between trains on São Paulo Metro's Line 4-Yellow without compromising safety. The new line's track, trains and control center are managed by...

  • Page 88
    ...this type of long-term cooperation - which I warmly welcome - it's very helpful to have a permanently accessible contact of the kind that Siemens provides, a person our employees can turn to whenever they have questions. 17 Sergio Boanada This is precisely the task or our City Account Managers. As...

  • Page 89
    ... international banks and financial service providers. São Paulo faces major infrastructure challenges - particularly in the areas of water supply, electricity supply and mass transit. And it's here that we're making key contributions to the city's sustainable development, as the following examples...

  • Page 90
    ... in the world. Operated by DASA - Latin America's leading provider of clinical diagnostic services - the facility offers more than 3,000 different clinical analysis and imaging procedures. As a key partner, we supply a large part of the laboratory's medical technologies and are helping make its...

  • Page 91
    ... the hospital are employing our ARCADIS Orbic 3D diagnostics system, which provides state-of-the-art intra-operative imaging. Production of high-voltage direct-current components in Jundiaí Our high-voltage direct-current (HVDC) transmission systems enhance the efficiency of power transmission by...

  • Page 92
    ... Southern Hemisphere, São Paulo faces major challenges in the area of infrastructure. With our broad portfolio of products and solutions, we're supporting the city in its drive to secure a sustainable future. São Paulo Anhanguera transformer substation Traffic management for the megacity Diagn...

  • Page 93
    Video surveillance of World Cup stadiums for 2014 Smart grid research Production of high-voltage direct-current components in Jundiaí

  • Page 94
    ... diversity of our employees. Our closely aligned business units enable us to offer a wide range of products and solutions that help customers drive competitiveness, enhance business performance, cut costs and reduce CO2 emissions. Siemens is more than the sum of its parts - that's what gives us the...

  • Page 95
    ...leadership, technology leadership and financial clout - that's what the Siemens brand em­ bodies around the globe. As an integrated technology company, we're better equipped than virtually any other enterprise in the world to offer customers a comprehensive range of products, solutions and services...

  • Page 96
    ... and Infrastructure & Cities. Siemens Energy Our Energy Sector is a world­leading supplier of a wide array of products, solutions and services in the field of energy technology. In the drive to create a sustain­ able energy system, electrical power will play a key role in the more efficient use of...

  • Page 97
    ... network will make it possible to compensate for supply fluctuations from renewables and engage in international electricity trading. In the future, Siemens Energy will address the rapid­ ly changing global energy markets - particularly in high­ growth regions - while focusing on technologies...

  • Page 98
    ... increase in data volumes in the development process. It's here that our segment­specific expertise comes in. Our innovative products and solutions are en­ abling us to substantially reduce our customers' time­to­ market through software applications and automation technology while cutting...

  • Page 99
    ... major infrastructure customers, we have segment­ specific sales structures that enable us to combine, de­ velop and adapt our Sector's offerings to customer needs. Just as our City Account Managers serve custom­ ers in the area of urban planning and development, our Key Account Managers provide...

  • Page 100

  • Page 101
    Financial Report 2011 > São Paulo 20.0 million inhabitants 7,315 people per square kilometer

  • Page 102
    ... report Third-quarter financial report Preliminary figures for fiscal 2012 Annual Shareholders' Meeting for fiscal 2012 1 Provisional. Updates will be posted at www.siemens.com/financial-calendar. Jan. Jan. Jan. Apr. Jul. Nov. Jan. 24, 2012 24, 2012 25, 2012 25, 2012 26, 2012 8, 2012 23, 2013 Key...

  • Page 103
    ...in Equity Notes to Consolidated Financial Statements Supervisory Board and Managing Board Statement of the Managing Board Responsibility statement Independent Auditors' report Five­year summary Glossary Index Information resources / Further information Company structure B. Corporate Governance 33...

  • Page 104
    ...-year presentation. 5 Earnings per share - attributable to shareholders of Siemens AG. For fiscal 2011 and 2010 weighted average shares outstanding (basic) (in thousands) amounted to 873,098 and 868,244 shares, respectively. 6 Discontinued operations primarily consist of OSRAM, Siemens IT Solutions...

  • Page 105
    ... an international provider of financial solutions in the business-to-business area. SFS supports Siemens as well as other companies, with a particular focus on the Sectors of Industry, Energy, and Healthcare. SFS finances infrastructure, equipment and working capital and acts as an expert manager of...

  • Page 106
    ... began to increase due to the debt and financial crisis. 6 A. A.1 A.2 A.3 A .4 To our shareholders Report of the Supervisory Board Managing Board of Siemens AG Letter to our shareholders The Siemens share / Investor relations 23 B. Corporate Governance 51 C. Combined management's discussion...

  • Page 107
    ...the Managing Board's activities. We were directly involved in all major decisions regarding the Company. In written and oral reports, the Managing Board regularly provided us with timely and comprehensive information on Company planning and business operations as well as on the strategic development...

  • Page 108
    ... plenary meetings were revenue, profit and employment development at Siemens AG, at the Sectors and at Siemens worldwide as well as the Company 's financial position and its major investment and divestment projects. The Managing Board reported to us regularly and comprehensively on Company planning...

  • Page 109
    ... 14, 2010, we discussed the future of Siemens IT Solutions and Services and approved the transfer of this business to Atos S.A. (AtoS). At our meeting on January 24, 2011, the Managing Board reported on the Company 's business and financial position following the conclusion of the first quarter. At...

  • Page 110
    ... Corporate Governance Code. Information on corporate governance at the Company and a detailed report on the level and structure of the compensation paid to the members of the Supervisory and Managing Boards is provided on pages 25 - 30 and 36 - 49 of Part II of this Annual Report. At their meetings...

  • Page 111
    ... of the Corporate Technology Department. The Supervisory Board would like to thank the members of the Managing Board as well as the employees and employee representatives of all Siemens companies for their work. Together, they helped make fiscal 2011 another very successful year for Siemens. For the...

  • Page 112
    ..., Americas Hermann Requardt (right) Healthcare Barbara Kux (left) Corporate Supply Chain Management, Corporate Sustainability, Global Shared Services Michael Süß (right) Energy 6 A. A.1 A.2 A.3 A .4 To our shareholders Report of the Supervisory Board Managing Board of Siemens AG Letter...

  • Page 113
    Joe Kaeser (left) Corporate Finance and Controlling, Financial Services, Siemens Real Estate, Equity Investments Peter Löscher - President and Chief Executive Officer (center) Corporate Communications and Government Affairs, Corporate Development Brigitte Ederer (right) Corporate Human Resources, ...

  • Page 114
    ... value. And we've been that kind of partner for over 160 years now. 6 A. A.1 A.2 A.3 A .4 To our shareholders Report of the Supervisory Board Managing Board of Siemens AG Letter to our shareholders The Siemens share / Investor relations 23 B. Corporate Governance 51 C. Combined management...

  • Page 115
    ...is creating new opportunities Even in uncertain times, our forward-looking financial strategy gives us the resources we need to continue investing in the future. In fiscal 2011, we spent â,¬3.9 billion - or 5.3% of our total revenue from continuing operations - on research and development activities...

  • Page 116
    ...that - as a responsible global partner - we're outpacing competitors everywhere. 6 A. A.1 A.2 A.3 A .4 To our shareholders Report of the Supervisory Board Managing Board of Siemens AG Letter to our shareholders The Siemens share / Investor relations 23 B. Corporate Governance 51 C. Combined...

  • Page 117
    ... in fiscal 2011. Although our share price declined year-over-year, we outperformed the DAX, Germany's leading stock index. We want you, our shareholders, to benefit from our success - in the form of another substantially increased dividend. That's why the Supervisory Board and Managing Board will...

  • Page 118
    ... people. And we again provided 250 training positions for disadvantaged youth. 6 A. A.1 A.2 A.3 A .4 To our shareholders Report of the Supervisory Board Managing Board of Siemens AG Letter to our shareholders The Siemens share / Investor relations 23 B. Corporate Governance 51 C. Combined...

  • Page 119
    ... regions. Here, too, our new organizational setup is helping us. We're one Siemens. We're one team. Everywhere in the world. In an environment of uncertainty, we're doing everything in our power to be an innovative, excellent and responsible partner - a partner of trust - to our employees, customers...

  • Page 120
    ...MSCI World FY 2002 - FY2011 7.3% 2.5% 3.7% A long-term comparison illustrates the strength of the Siemens share: the assets of an investor who acquired Siemens stock worth â,¬1,000 at the beginning of fiscal 2007 6 A. A.1 A.2 A.3 A .4 To our shareholders Report of the Supervisory Board Managing...

  • Page 121
    ... dividends to our investors. A.4.3 Shareholder structure With some 739,000 shareholders, Siemens AG is one of the world's largest publicly owned companies. An analysis of our shareholder structure conducted in August 2011 showed that shareholders in Germany hold the largest percentage of our share...

  • Page 122
    ...all major publication dates as well as the date of the Annual Shareholders' Meeting, are available at www.siemens.com/investors. Stock market information (in â,¬, unless otherwise indicated) FY 2011 1 FY 2010 1 Stock price range (Xetra closing price) High Low Year-end Number of shares (year-end, in...

  • Page 123
    ... Governance report 25 28 29 29 B.1.1 Management and control structure B.1.2 Purchase or sale of the Company's shares B.1.3 Shareholder relations B.1.4 Significant differences between Siemens' corporate governance and NYSE Corporate Governance Standards 31 B.2 Corporate Governance statement...

  • Page 124
    ... 31 B. Corporate Governance 33 36 B.3 Compliance report B.4 Compensation report (part of Notes to Consolidated Financial Statements) 24 B.1 Corporate Governance report B. 2 Corporate Governance statement pursuant to Section 289a of the German Commercial Code (HGB) (part of the combined management...

  • Page 125
    ... next Supervisory Board election in 2013 is to make sure that the present considerable share of Supervisory Board members with international background is maintained. 51 C. Combined management's discussion and analysis 153 D. Consolidated Financial Statements 273 E. Additional information 25

  • Page 126
    ... Managing Board in its management of the Company 's business. At regular intervals, it discusses business development, planning, strategy and implementation. It reviews the Annual Financial Statements of Siemens AG, the Consolidated Financial Statements of Siemens worldwide, management's discussion...

  • Page 127
    ... Financial Statements of Siemens AG and the Consolidated Financial Statements of Siemens worldwide. It concerns itself with the Company 's risk monitoring system and oversees the effectiveness of the internal control system, in particular as it relates to financial reporting, the risk management...

  • Page 128
    ... the basic issues of business policy and corporate strategy as well as on the annual and multi-year planning. The Managing Board prepares the Company 's quarterly and half-yearly reports, the Annual Financial Statements of Siemens AG and the Consolidated Financial Statements of Siemens worldwide. In...

  • Page 129
    B.1.3 Shareholder relations Four times a year, Siemens AG reports to shareholders on its business development, financial position and earnings. An ordinary Annual Shareholders' Meeting normally takes place within the first four months of each fiscal year. The Managing Board facilitates shareholder ...

  • Page 130
    ... 31 B. Corporate Governance 33 36 B.3 Compliance report B.4 Compensation report (part of Notes to Consolidated Financial Statements) 30 B.1 Corporate Governance report B.2 Corporate Governance statement pursuant to Section 289a of the German Commercial Code (HGB) (part of the combined management...

  • Page 131
    ... Code can be downloaded from the Internet at: www.siemens.com/289a. Further Corporate Governance Practices applied beyond legal requirements are contained in our so-called Business Conduct Guidelines. 51 C. Combined management's discussion and analysis 153 D. Consolidated Financial Statements...

  • Page 132
    ... via the Internet at the following link: www.siemens.com/289a. A general description of the functions and operation of the Managing Board and the Supervisory Board can be found under the heading "Management and control structure" in the Corporate Governance report under B.1.1 on pages 25 - 28 and on...

  • Page 133
    ... all our managers and employees. In his foreword to the Siemens Business Conduct Guidelines, President and CEO Peter Löscher defines the role of the Guidelines this way: "They set out how we meet our ethical and legal responsibility as a company and give expression to our corporate values of being...

  • Page 134
    ... 31 B. Corporate Governance 33 36 B.3 Compliance report B.4 Compensation report (part of Notes to Consolidated Financial Statements) 34 B.1 Corporate Governance report B.2 Corporate Governance statement pursuant to Section 289a of the German Commercial Code (HGB) (part of the combined management...

  • Page 135
    ... businesses worldwide. Compliance will remain an ongoing, critical responsibility at Siemens. At the beginning of fiscal 2011, our compliance management team - working within the framework of our One Siemens strategic target system - defined four medium-term priorities for the continuing development...

  • Page 136
    ... for the Managing Board at Siemens is intended to provide an incentive for successful corporate management with an emphasis on sustainability. Members of the Managing Board are expected to make a long-term commitment to and on behalf of the Company, and may benefit from any sustained increase in the...

  • Page 137
    ... enhancing corporate value. On the basis of this system, the Supervisory Board at the beginning of each fiscal year defines unique targets for several parameters: return on capital employed (ROCE adjusted); free cash flow; and organic revenue growth at the group level (continuing operations). These...

  • Page 138
    ... must be updated annually thereafter. If the value of the accrued holdings declines below the minimum to be evidenced from time to time because the market price of Siemens stock decreases, the member of the Managing Board must acquire additional shares. At the end of the calendar year, the Company...

  • Page 139
    ... of the German Stock Corporation Act, or if Siemens AG is to be merged into an existing corporation or other entity - any member of the Managing Board has the right to terminate his or her contract with the Company if such a change of control results in a substantial change in position (e.g., due to...

  • Page 140
    ... 31 B. Corporate Governance 33 36 B.3 Compliance report B.4 Compensation report (part of Notes to Consolidated Financial Statements) 40 B.1 Corporate Governance report B.2 Corporate Governance statement pursuant to Section 289a of the German Commercial Code (HGB) (part of the combined management...

  • Page 141
    ..., Schneider) over the coming four years, and will therefore not be determined until after the end of fiscal 2015. All stock awards were recorded at the closing price of Siemens stock in Xetra trading on the date of commitment less the present value of dividends expected during the restriction period...

  • Page 142
    ..., 2011. 9 Dr. Heinrich Hiesinger resigned from the Managing Board effective September 30, 2010. 6 A. To our shareholders 23 25 31 B. Corporate Governance 33 36 B.3 Compliance report B.4 Compensation report (part of Notes to Consolidated Financial Statements) 42 B.1 Corporate Governance report...

  • Page 143
    ... years) Shares Monetary Value Stock Awards (Target attainment depends on future stock price performance) Shares Monetary Value 4 Shares 2010 Stock Awards (Target attainment depends on EPS for past three fiscal years) Shares Monetary Value 2011 Other compensation 3 2010 2011 Total 2010 Total...

  • Page 144
    ...time of retirement, the pension account is credited with an annual interest payment (guaranteed interest) on January 1 of each year. For fiscal 2011, the members of the Managing Board were granted contributions under the BSAV totaling â,¬5.2 million defined Contribution Benefit Plan (BSaV) 1 Balance...

  • Page 145
    ... Siemens Share Matching Plan. other No loans from the Company are provided to members of the Managing Board. Stock awards The following table shows the changes in the Stock Awards held by Managing Board members in fiscal 2011: Stock awards Balance at beginning of fiscal 2011 Weighted average fair...

  • Page 146
    ...the Annual Shareholders' Meetings of Siemens AG on February 18, 1999, and February 22, 2001 (for additional information on the Siemens Stock Option Plans see Note 34 of the Notes to Consolidated Financial Statements). At the beginning of fiscal 2011, the members of the Managing Board held a total of...

  • Page 147
    ... policies for the Supervisory Board were authorized at the Annual Shareholders' Meeting held on Januar y 25, 2011. Details are set out in Section 17 of the Articles of Association of Siemens AG. By way of exception to a recommendation of the German Corporate Governance Code, the Supervisory Board...

  • Page 148
    ... 31 B. Corporate Governance 33 36 B.3 Compliance report B.4 Compensation report (part of Notes to Consolidated Financial Statements) 48 B.1 Corporate Governance report B.2 Corporate Governance statement pursuant to Section 289a of the German Commercial Code (HGB) (part of the combined management...

  • Page 149
    ... of a financial loss associated with employment functions. The insurance policy for fiscal 2011 includes a deductible for the members of the Managing Board and the Supervisory Board in compliance with the requirements of the German Stock Corporation Act and the German Corporate Governance Code. 51...

  • Page 150
    50

  • Page 151
    ... structure Cash flow - Fiscal 2011 compared to fiscal 2010 Capital resources and requirements 101 C.4 Financial position 114 117 C.5 C.6 Net assets position Overall assessment of the economic position Report on post-balance sheet date events Report on expected developments and associated...

  • Page 152
    ...2011 and business activities in around 190 countries and reported consolidated revenue of â,¬73.515 billion in fiscal 2011. We operate in excess of 285 major production and manufacturing plants worldwide. In addition, we have office buildings, warehouses, research and development facilities or sales...

  • Page 153
    ... Automation Drive Technologies Building Technologies Industry Solutions Mobility Energy Sector Fossil Power Generation Renewable Energy Oil & Gas Power Transmission Power Distribution Healthcare Sector therein: Diagnostics Equity Investments Financial Services Reconciliation to Consolidated...

  • Page 154
    ...include: new orders, revenue, profit and profit margin. For Equity Investments we report profit, and for SFS we report profit and total assets. Free cash flow and further information is reported for each reportable segment in the Notes to Consolidated Financial Statements. For information related to...

  • Page 155
    ...life in cities. We believe that our products and solutions for manufacturing, urban transit, building construction, power distribution Europe, C.I.S. 1, Africa, Middle East Americas Asia, Australia 1 Commonwealth of Independent States. In addition, we report financial information at group level...

  • Page 156
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 157
    ... increasing demand for healthcare in constrained budget environments. We drive innovation across our portfolio to meet tomorrow's clinical and financial demands of our customers and to continuously improve our cost position. We push operational excellence in our various businesses, and tap into new...

  • Page 158
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 159
    ... 5 of the German Commercial Code (HGB) and explanatory report 142 C.11 Compensation report and Corporate Governance statement pursuant to Section 289a of the German Commercial Code (HGB) 143 C .12 Additional information for supplemental financial measures 145 C .13 Siemens AG (Discussion on basis of...

  • Page 160
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 161
    .... Siemens now holds approximately 53,300 patents worldwide in its continuing operations, compared to approximately 51,400 patents last year. In terms of the number of published patent applications in calendar year 2010, Siemens in total ranked third in Germany and - for the first time in the company...

  • Page 162
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 163
    ... goal to increase this share to 25% of Siemens' total purchasing volume in the medium term. We achieved this goal by the end of fiscal 2011, with 27% for Siemens in total. The global balance of our supply chain network continues to be a central part of our supply chain management strategy. Another...

  • Page 164
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 165
    ...this program was introduced on a country level involving senior management representatives from our regional companies. Building long-lasting and customer-focused strategic partnerships is important for Siemens as our portfolio primarily focuses on capital goods and related services, often with long...

  • Page 166
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 167
    ... Board Chief Sustainability Officer Sustainability Board Head of Corporate legal and Compliance CEO of Customer Services (Industry) 1 CtO of Energy (Energy) CEO of Imaging & therapy Systems (Healthcare) CEO of Rail Systems (Infrastructure & Cities) 1 Head of Corporate Finance - Reporting...

  • Page 168
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 169
    ... 5 of the German Commercial Code (HGB) and explanatory report 142 C.11 Compensation report and Corporate Governance statement pursuant to Section 289a of the German Commercial Code (HGB) 143 C .12 Additional information for supplemental financial measures 145 C .13 Siemens AG (Discussion on basis of...

  • Page 170
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 171
    ... fiscal year to the average number of employees. 3 Without travel expenses. Our employees are a key success factor for our Company. We therefore aim to attract, develop and retain the best and brightest employees worldwide. Our sustainable human resources policy focuses on diversity, learning and...

  • Page 172
    ...corporation. The aim was to enable as many employees as possible to participate in Siemens' long-term future development. Over the years, thousands of employees in Germany have acquired Siemens shares with the Company 's financial support. Building on this success in Germany, Siemens' Managing Board...

  • Page 173
    ... global benefit schemes. Siemens AG was commended by the GEO jury for its strategy of establishing a truly global equity culture within the Company, taking all employees worldwide into consideration. For further information regarding these programs, see D.6 Notes to Consolidated Financial Statements...

  • Page 174
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 175
    ... for fiscal 2012 with the ongoing aim of strengthening compliance as a business responsibility within our Company. C.1.5.5 CORPORAtE CItIzENSHIP Siemens is committed to providing long-term benefits to the societies in which we operate, through corporate citizenship activities that extend beyond...

  • Page 176
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 177
    ... in 2011 following the 8.6% reported a year earlier. A key factor for Siemens as a manufacturer is manufacturing value added, a component used in calculating gross domestic product by means of the production approach. Following the exceptionally high growth rate of 9.2% recorded in 2010, IHS Global...

  • Page 178
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 179
    ... positive impact in 2011. After investment growth of 10% in 2010, IHS Global Insight forecasts an increase of around 18% for the current year, driven in particular by rising demand for energy in the emerging economies. Investments within the international healthcare markets, served by our Healthcare...

  • Page 180
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 181
    ... continuing operations increased also on lower losses at Equity Investments and Centrally managed portfolio activities compared to the prior fiscal year. Income and profit (in millions of â,¬) Total Sectors profit 36% 65% 55% Income from continuing operations Net income 9,093 FY 2011 6,673 FY 2010...

  • Page 182
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 183
    ... included growth at all Divisions. A higher volume from major orders in the Energy Sector was most notable at Fossil Power Generation. Orders in Healthcare increased moderately compared to New orders (location of customer) Year ended September 30, (in millions of â,¬) 2011 2010 % Change vs. previous...

  • Page 184
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 185
    ...year. Year ended September 30, (in millions of â,¬) 2011 2010 % Change Research and development expenses as percentage of revenue Marketing, selling and general administrative expenses as percentage of revenue Other operating income Other operating expense Income (loss) from investments accounted...

  • Page 186
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 187
    ...OSRAM reported a 8% revenue increase compared to the previous fiscal year. Growth was driven by demand for specialty lighting products as well as by increased LED business. For additional information, see D.6 Notes to Consolidated Financial Statements. Net income for Siemens in fiscal 2011 increased...

  • Page 188
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 189
    ...(1)% 0% 2% 0% 0% (3)% 0% Profit and Profit margin by Divisions Profit Year ended September 30, (in millions of â,¬) 2011 2010 % Change 2011 Profit margin Year ended September 30, 2010 Industry Automation Drive Technologies Building Technologies Industry Solutions Mobility 1,415 1,087 409 276 429...

  • Page 190
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 191
    Energy Sector Year ended September 30, (in millions of â,¬) 2011 2010 Actual % Change Adjusted 1 Currency therein Portfolio Profit Profit margin New orders Total revenue External revenue therein: Europe, C.I.S.2, Africa, Middle East therein Germany Americas Asia, Australia 1 Excluding currency ...

  • Page 192
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 193
    ...in the transformers and high-voltage substation businesses, which have attracted new market entrants based in lower-cost countries. In addition, the current year included charges totaling â,¬57 million, including for staff reduction measures, related to optimizing the Division's global manufacturing...

  • Page 194
    ... the new structure, financial results are reported externally for the Sector and for the Diagnostics Division. Prior-year information is presented on a comparable basis. The healthcare market environment included continuing pressure on public health budgets in developed countries while healthcare...

  • Page 195
    ... quarters including material impacts related to repositioning activities at NSN. For further information see C.7 Report on post-balance sheet date events. C. 3. 2. 3 FINANCIAl SERvICES (SFS) Year ended September 30, (in millions of â,¬) 2011 2010 % Change Income before income taxes Total assets...

  • Page 196
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 197
    ... due to changes in the fair market value of interest rate and foreign currency derivatives not qualifying for hedge accounting. The current fiscal year also benefited from an improved interest result as well as positive effects related to the reclassification of fund shares in connection with the...

  • Page 198
    ... Drive Technologies Building Technologies Industry Solutions Mobility Energy Sector Fossil Power Generation Renewable Energy Oil & Gas Power Transmission Power Distribution Healthcare Sector therein: Diagnostics Total Sectors Equity Investments Financial Services (SFS) Reconciliation to Consolidated...

  • Page 199
    ... numbers presented may not add up precisely to totals provided. 153 D. 273 E. 140 C.10 Information required pursuant to Section 289 (5) and Section 315 (2) no. 5 of the German Commercial Code (HGB) and explanatory report 142 C.11 Compensation report and Corporate Governance statement pursuant...

  • Page 200
    ... date of the Annual Sharehold­ ers' Meeting, and the remaining amount to be carried for­ ward. The prior­year dividend was â,¬2.70 per share. C.3.5 Critical accounting estimates Siemens' Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards...

  • Page 201
    ...information on reverse purchase agreements see D.6 Notes to Consolidated Financial Statements. C.4.1.3 FInanCIaL RISk managEmEnT Investments of cash and cash equivalents are subject to credit requirements and counterparty limits. Corporate Treasury pools and centrally manages Siemens' interest rate...

  • Page 202
    ...provide long­term and short­term credit ratings. We believe that our high credit rating for our long­term debt applied by Moody 's and Standard & Poor's allows us to raise funds in the capital markets at attractive conditions or to ob­ tain financing from banks with financial flexibility. A high...

  • Page 203
    ... information on fair value hedges see D.6 Notes to Consolidated Financial Statements. Due to rounding, numbers presented may not add up precisely to totals provided. 153 D. 273 E. 140 C.10 Information required pursuant to Section 289 (5) and Section 315 (2) no. 5 of the German Commercial Code...

  • Page 204
    ...) operating activities less cash used for additions to intangible assets and property, plant and equipment. We believe that the presenta­ tion of Free cash flow provides useful information to investors because it gives an indication of the long­term cash­generat­ ing ability of our business and...

  • Page 205
    ... the commercial finance business at SFS. Higher purchases of investments in fiscal 2011 of â,¬889 million primarily included cash outflows relating to the â,¬500 million in new equity, which we provided to NSN in exchange for preferred shares in order to further strengthen NSN 's financial position...

  • Page 206
    ... payments, pension plan funding, portfolio activities, and cash outflows in connection with restructuring measures. (in millions of â,¬) 2011 2010 Short-term debt and current maturities of long-term debt Long-term debt Total debt Cash and cash equivalents Available-for-sale financial assets...

  • Page 207
    ... stock and proceeds (payments) relating to other transactions with owners, dividends paid and financing discontinued operations as well as effects without cash flow impact such as reclassifications, effects of exchange rates and fair value hedge accounting adjustments. Commercial paper program...

  • Page 208
    ... for our company worldwide. Capital expenditures include additions to intangible assets and property, plant and equipment and additions to assets held for rental in operating leases as presented in the Consolidated Statements of Cash Flow. â,¬1.809 billion of our capital expenditures relates to our...

  • Page 209
    ...at Power Transmission. Healthcare used its capital expenditure of â,¬487 million in fiscal 2011 pri­ marily for development of software and IT solutions and mak­ ing investments for additions to assets held for rental in oper­ ating leases relating to Diagnostics' products. The changes of capital...

  • Page 210
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 211
    ...to the funded pension benefit plans and pay­ ments to our pension benefit plans and other post employ­ ment benefit plans, see C.4.4.3 Funding of pension plans and similar commitments and D.6 Notes to Consolidated Financial Statements. lating to the Siemens IT Solutions and Services business, yet...

  • Page 212
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 213
    ... in the coming years to better control future benefit obligations and related costs. Funded status of Siemens' pension plans (in billions of â,¬) September 30, 2011 1 September 30, 2010 2 (6.2) (7.4) 1 Does not include amounts for OSRAM and Siemens IT Solutions and Services, as a result of...

  • Page 214
    ... business (EA) to ASM Pacific Technology Ltd. The investment in Areva N.P. S.A.S. was sold in fiscal 2011. Long­term assets at the respective balance sheet dates were as follows: September 30, (in millions of â,¬) 2011 2010 Cash and cash equivalents Available-for-sale financial assets Trade...

  • Page 215
    ... a year earlier. The increase was due to a number of fac­ tors. The largest was â,¬500 million in new equity provided to NSN in exchange for preferred shares to further strengthen the company 's financial position. In addition, in the first quar­ ter of fiscal 2011, Siemens and Nokia Corporation...

  • Page 216
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 217
    ...to ad­ justed EBITDA below our medium­term capital structure tar­ get. Our equity ratio excluding non­controlling interests in­ creased to 30%. The Siemens Managing Board, in agreement with the Supervisory Board, proposes a dividend of â,¬3.00 per share, up from â,¬2.70 per share a year earlier...

  • Page 218
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 219
    ... value added in this region will climb to 8.6% in 2012 before slowing somewhat to 7.3% in 2013. The forecasts presented here for gross domestic product are based on a report from IHS Global Insight dated October 15, 2011. The figures for gross fixed investment and manufactur­ ing value added...

  • Page 220
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 221
    ... information see C.7 Report on post-balance sheet date events. We also expect that income from continu­ ing operations will include higher pension expenses in fiscal 2012 compared to fiscal 2011, primarily due to an expected increase in interest rates and the corresponding effect on interest costs...

  • Page 222
    ... businesses. Healthcare also continues to make investments for additions to assets held for rental in operating leases to Diagnostics products. The Industry Sector intends with its investments to secure technological leadership and to increase market shares. The Infrastructure & Cities Sector plans...

  • Page 223
    ... to result in revenue growth in fiscal 2012 and 2013. We anticipate continued strong earnings perfor­ mances in our Segments despite ongoing pricing pressure and higher operating expenses. Furthermore we expect profit at Healthcare in fiscal 2012 to be burdened by profit impacts related to measures...

  • Page 224
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 225
    ... the Managing Board in matters relating to the implementation, operation and oversight of an effective Risk and Internal Control System. Chief Risk & Internal Control officer Chairman of the CRIC. Defines and monitors application of ERM strategy, policy and methodology. Consolidates Siemens wide...

  • Page 226
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 227
    ... markets in which our businesses operate experience rapid and significant changes due to the introduction of innovative technologies. To meet our customers' needs in these areas, we must continuously design new, and update existing products and services, and invest in, and develop new technologies...

  • Page 228
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 229
    ... fixed­price calculation, can be completed profit­ ably. For additional information, see D.6 Notes to Consolidated Financial Statements. Increased IT security threats and higher levels of professionalism in computer crime could pose a risk to our systems, networks, products, solutions and services...

  • Page 230
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 231
    ...financial year. In order to comply with local pension regulations in selected foreign countries, we may face a risk of increasing cash outflows to reduce an underfunding of our pension plans in these countries, if any. At the end of fiscal 2011, the combined funded status of Siemens' pension benefit...

  • Page 232
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 233
    ..., the uncertain tax environment in some regions could limit our ability to enforce our rights. As a globally operating organiza­ tion, we conduct business in countries subject to complex tax rules, which may be interpreted in different ways. Future in­ terpretations or developments of tax regimes...

  • Page 234
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 235
    ..., their company name, business address and registered offices. All shares confer the same rights and obligations. At the An­ nual Shareholders' Meeting, each share of stock has one vote and accounts for the shareholders' proportionate share in the Company 's net income. Excepted from this rule are...

  • Page 236
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 237
    ... bonds or warrant bonds issued until January 25, 2015 by the Company or any of its consolidated subsidiaries in accordance with the authorization of the Managing Board adopted by the Annual Shareholders' Meeting on January 26, 2010, the capi­ tal stock was conditionally increased by â,¬600,000,000...

  • Page 238
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 239
    ...if Siemens AG is to be merged into another company - any member of the Man­ aging Board has the right to terminate the contract of employ­ ment if such change of control results in a substantial change in position (e.g. due to a change in corporate strategy or a change in the Managing Board member...

  • Page 240
    ... country and regional Cluster level. In addition, for some areas requiring specialized know­how such as valuations relating to post­employment benefits support from external service providers is obtained and used. The reported closing data is used to prepare the Consolidated Financial Statements...

  • Page 241
    ... Siemens Group is integrated into the company-wide accounting-related internal control system described above. Generally, the information set out above also applies for Siemens AG's separate financial statements prepared in accordance with the German Commercial Code (HGB). The Consolidated Financial...

  • Page 242
    ...the audit­ ed Consolidated Financial Statements. The Compensation re­ port is presented within the section B. Corporate Governance, included in this Annual Report for the fiscal year 2011. The Corporate Governance statement pursuant to Section 289a of the German Commercial Code is an integral part...

  • Page 243
    ...of â,¬) 2011 2010 Capital employed Total equity Plus: Long-term debt Plus: Short-term debt and current maturities of long-term debt Less: Cash and cash equivalents Plus: Pension plans and similar commitments Less: Financial Services (SFS) Debt Less: Fair value hedge accounting adjustments 1 Capital...

  • Page 244
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 245
    ... corporate development, finance and controlling, commu­ nications, government affairs, human resources, legal and compliance, technology, information technology, data protec­ tion, security office, supply chain management and the sus­ tainability office. The operating environment for Siemens AG...

  • Page 246
    ... Income of Siemens ag Year ended September 30, (in millions of â,¬) 2011 2010 Revenue Cost of sales gross profit Research and development expenses Marketing, selling and general administrative expenses Other operating income (expense), net Financial income, net thereof income from investments 1,995...

  • Page 247
    ...assets of OSRAM AG due to the cancellation of the profit and loss transfer agreement as of October 1, 2011. C.13.4 Net assets and financial position Compared to September 30, 2010, the balance sheet total in­ creased 12% to â,¬66.990 billion. Condensed Statement of Financial position of Siemens ag...

  • Page 248
    ... of Siemens Medical Solutions Diagnostics Europe Limited, Ireland, from a Group holding; a â,¬698 million capital increase to OSRAM AG; â,¬154 million relat­ ed to converting a shareholder loan to NSN into preferred shares; and â,¬290 million related to new capital provided to NSN in exchange for...

  • Page 249
    ... health and safety. Fair­minded collaboration among company management, employees and employee representa­ tives plays a central role at Siemens AG. Year ended September 30, 2011 2010 Employee fluctuation rate 1 Proportion of women (percentage of employees in management positions) Expenses for...

  • Page 250
    ... and analysis Business and operating environment Fiscal 2011 - Financial summary Results of operations Financial position Net assets position Overall assessment of the economic position 118 C.7 Report on post-balance sheet date events 119 C.8 Report on expected developments and associated material...

  • Page 251
    ...­ ed changes in the funded status of Siemens' pension and other post­employment benefit plans. Any increase in market vola­ tility, deterioration in the capital markets, decline in the conditions for the credit business, uncertainty related to the subprime, financial market and liquidity crises...

  • Page 252
    ... technologies by other companies or market entries by new competitors; changing 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 interruption of our supply chain...

  • Page 253
    ...Cash Flow D.5 Consolidated Statements of Changes in Equity D.6 Notes to Consolidated Financial Statements 160 162 162 173 175 181 181 182 182 Segment information (continuing operations) 1 - Basis of presentation 2 - Summary of significant accounting policies 3 - Critical accounting estimates...

  • Page 254
    ... share amounts in â,¬) Note 2011 2010 Revenue Cost of goods sold and services rendered Gross profit Research and development expenses Marketing, selling and general administrative expenses Other operating income Other operating expense Income (loss) from investments accounted for using the equity...

  • Page 255
    ... of Siemens AG 1 Includes income (expense) resulting from investments accounted for using the equity method of â,¬8 million and â,¬24 million, respectively, for the fiscal years ended September 30, 2011 and 2010. The accompanying Notes are an integral part of these Consolidated Financial Statements...

  • Page 256
    ...Long-term debt Pension plans and similar commitments Deferred tax liabilities Provisions Other financial liabilities Other liabilities Total liabilities Equity Common stock, no par value 1 Additional paid-in capital Retained earnings Other components of equity Treasury shares, at cost 2 total equity...

  • Page 257
    ...cash provided by (used in) investing activities - continuing and discontinued operations Cash flows from financing activities Proceeds from re-issuance of treasury stock and proceeds (payments) relating to other transactions with owners Proceeds from issuance of long-term debt Repayment of long-term...

  • Page 258
    D.5 Consolidated Statements of Changes in Equity For the fiscal years ended September 30, 2011 and 2010 Common stock (in millions of â,¬) Additional paid-in capital Retained earnings Balance at October 1, 2009 Net income Other comprehensive income, net of tax Dividends Share-based payment Re-...

  • Page 259
    ... Statements of Comprehensive Income Consolidated Statements of Financial Position Consolidated Statements of Cash Flow 158 D.5 Consolidated Statements of Changes in Equity 160 D.6 Notes to Consolidated Financial Statements 266 D.7 Supervisory Board and Managing Board 273 E. Additional information...

  • Page 260
    ...revenue (in millions of â,¬) 2011 2010 2011 2010 2011 2010 2011 2010 Sectors Industry Energy Healthcare Total Sectors Equity Investments Financial Services (SFS) Reconciliation to Consolidated Financial Statements Centrally managed portfolio activities Siemens Real Estate (SRE) 6 Corporate...

  • Page 261
    ... Statements of Comprehensive Income Consolidated Statements of Financial Position Consolidated Statements of Cash Flow 158 D.5 Consolidated Statements of Changes in Equity 160 D.6 Notes to Consolidated Financial Statements 266 D.7 Supervisory Board and Managing Board 273 E. Additional information...

  • Page 262
    ... for issue by the Managing Board on November 23, 2011. The Consolidated Financial Statements are generally prepared on the historical cost basis, except as stated in Note 2 Summary of significant accounting policies. the relationship with Siemens, the Company concludes that it controls the...

  • Page 263
    ... end of the reporting period. The exchange rates of the significant currencies of non-euro countries used in the preparation of the Consolidated Financial Statements were as follows: Year-end exchange rate â,¬1 quoted into currencies specified below September 30, Currency ISO Code 2011 2010 Annual...

  • Page 264
    ... spot exchange rate at the end of the reporting period. Each non-monetary item on the Consolidated Statements of Financial Position which is carried at cost or amortized cost and each transaction in the Consolidated Statements of Income are restated by applying a general price index from the date of...

  • Page 265
    ... Statements of Comprehensive Income Consolidated Statements of Financial Position Consolidated Statements of Cash Flow 158 D.5 Consolidated Statements of Changes in Equity 160 D.6 Notes to Consolidated Financial Statements 266 D.7 Supervisory Board and Managing Board 273 E. Additional information...

  • Page 266
    ... a plan or design for the production of new or substantially improved products and processes, are capitalized if (1) development costs can be measured reliably, the product or process is (2) technically and (3) commercially feasible, (4) future economic benefits are probable and (5) Siemens intends...

  • Page 267
    ... and the Consolidated Statements of Cash Flow generally relate to continuing operations. Siemens reports discontinued operations separately in Note 4 Acquisitions, dispositions and discontinued operations. In order to present the financial effects of a discontinued operation revenues and expenses...

  • Page 268
    ... are generally recognized in the Consolidated Statements of Income. The present value of legal obligations associated with the retirement of property, plant and equipment (asset retirement obligations) that result from the acquisition, construction, development or normal use of an asset is added to...

  • Page 269
    ... available-for-sale financial assets as these financial instruments are not subject to fluctuations in value. Siemens does not make use of the category held to maturity. Financial liabilities of the Company mainly comprise notes and bonds, loans from banks, trade payables, finance lease payables and...

  • Page 270
    ...its business operations reference. Siemens adjusted prior period information on related party transactions to conform to the current year presentation. In May 2008, the IASB issued a standard for improvements to International Financial Reporting Standards. In the Consolidated Statements of Cash Flow...

  • Page 271
    ...amended standard, non-controlling interests may show a deficit balance since both profits and losses are allocated to the shareholders based on their equity interests. In September 2007, the International Accounting Standards Board (IASB) issued IAS 1, Presentation of Financial Statements: A Revised...

  • Page 272
    ... on its financial position, financial performance and cash flows. IAS 27 (amended 2011) now only contains requirements relating to separate financial statements as a result of the issuance of the new standard IFRS 10. According to the amendment of IAS 28 an entity shall account for an investment, or...

  • Page 273
    ... portion of their business under construction contracts with customers. The Company generally accounts for construction projects using the percentage-of-completion method, recognizing revenue as performance on contract progresses. Certain long-term service contracts are accounted for under the...

  • Page 274
    ... unit's fair value less costs to sell and its value in use. The Company generally uses discounted cash flow based methods to determine these values. These discounted cash flow calculations use five-year projections that are based on financial plannings. Cash flow projections take into account past...

  • Page 275
    ...of the business of certain operating divisions is performed pursuant to long-term contracts, often for large projects, in Germany and abroad, awarded on a competitive bidding basis. Siemens records a provision for onerous sales contracts when current estimates of total contract costs exceed expected...

  • Page 276
    ... to in-process research and development and trademarks with weighted average useful life of 4 years. The acquired Solel business contributed revenues of â,¬92 million and a net loss of â,¬53 million (including purchase price accounting effects and integration costs) to the group for the period...

  • Page 277
    ...accounted for using the equity method, net and amounts to â,¬90 million. At the end of July 2010, Siemens signed an agreement to sell its Electronics Assembly Systems business (EA), which was reported in Centrally managed portfolio activities, to ASM Pacif- ic Technology Ltd. The transaction closed...

  • Page 278
    ... 2010. OSRAM - discontinued operations, assets and liabilities held for disposal In March 2011, Siemens announced that it plans to publicly list its subsidiary OSRAM AG (formerly OSRAM GmbH). Siemens intends to retain a minority stake in OSRAM, in which it will remain a long-term anchor shareholder...

  • Page 279
    ... operations in the Company 's Consolidated Statements of Income for all periods presented. Business activities which remain with Siemens primarily relate to project HERKULES, which is reported in line item Centrally managed portfolio activities of Segment information and continues to be accounted...

  • Page 280
    ... adjusted for closing entries mainly relating to pensions and share-based payments. These effects total â,¬290 million. Deconsolidated assets included â,¬181 million in cash and cash equivalents presented in line item Financial assets as of June 30, 2011. The share of non-controlling interests in...

  • Page 281
    ... presented in the Consolidated Statements of Income for fiscal 2010, relate mainly to legal and carve-out related matters in connection with the former Com activities. 6 - Other operating income Year ended September 30, (in millions of â,¬) 2011 2010 Gains on disposals of businesses Gains on sales...

  • Page 282
    ...The main triggering events for the impairment were the reassessment of the long-term market developments and the continuing lack of a reference project. As a consequence the underlying business planning of the in- 6 A. To our shareholders 23 B. Corporate Governance 51 C. Combined management...

  • Page 283
    ...) from pension plans and similar commitments, net were as follows: Total interest expenses on financial liabilities 1 Year ended September 30, (in millions of â,¬) 2011 2010 1 Relating to hedged positions, herein only the interest expense on hedged items not at fair value through profit and loss...

  • Page 284
    ...the third quarter on the arbitrational ruling related to Siemens' exit from the joint venture Areva NP S.A.S. The gain comprises (1) the payment from Areva to Siemens of â,¬1,747 million including the purchase price of Siemens' 34% share of â,¬1,620 million, as defined in the shareholders' agreement...

  • Page 285
    ...are summarized as follows: Year ended September 30, (in millions of â,¬) 2011 2010 Assets: Financial assets Other intangible assets Property, plant and equipment Inventories Receivables Pension plans and similar commitments Provisions Liabilities Tax loss and credit carryforward Other Deferred tax...

  • Page 286
    ... Company 's investment in available-for-sale financial assets: September 30, (in millions of â,¬) 2011 2010 Deductible temporary differences Tax loss carryforward 152 551 703 204 629 833 Cost Fair value September 30, 2011 (in millions of â,¬) Unrealized gain Unrealized loss Equity instruments...

  • Page 287
    ... of current and long-term receivables presented in Note 12, 13 and 20, which belong to the class of Financial assets and liabilities measured at (amortized) cost are as follows (excluding receivables from finance leases): Year ended September 30, (in millions of â,¬) 2011 2010 Valuation allowance...

  • Page 288
    Year ended September 30, (in millions of â,¬) 2011 2010 The gross investment in leases and the present value of minimum future lease payments receivable are due as follows: Valuation allowance as of beginning of fiscal year Increase in valuation allowances recorded in the Consolidated Statements ...

  • Page 289
    ... Statements of Comprehensive Income Consolidated Statements of Financial Position Consolidated Statements of Cash Flow 158 D.5 Consolidated Statements of Changes in Equity 160 D.6 Notes to Consolidated Financial Statements 266 D.7 Supervisory Board and Managing Board 273 E. Additional information...

  • Page 290
    ... and purchase accounting adjustments (in millions of â,¬) Dispositions and reclassifications to assets classified as held for disposal Impairments Net book value as of 9/30/2010 Sectors Industry Energy Healthcare Cross-Sector Businesses Siemens IT Solutions and Services Financial Services (SFS...

  • Page 291
    ...estimating the fair value less costs to sell of the Divisions or equivalents, cash flows were projected for the next five years based on past experience, actual operating results and management's best estimate about future developments as well as market assumptions. The fair value less costs to sell...

  • Page 292
    ... Cash flows beyond the five-year planning period were extrapolated using a con- stant growth rate of 2.25%. The main reasons for these lower growth prospects and therefore adjusted business targets are delays in technology and product related development activities along with increasing competition...

  • Page 293
    ... Statements of Comprehensive Income Consolidated Statements of Financial Position Consolidated Statements of Cash Flow 158 D.5 Consolidated Statements of Changes in Equity 160 D.6 Notes to Consolidated Financial Statements 266 D.7 Supervisory Board and Managing Board 273 E. Additional information...

  • Page 294
    ... operating leases primarily relate to buildings, data processing and phone equipment as well as to medical equipment. Total contingent rent recognized in income in fiscal 2011 and 2010 amounts to â,¬182 million and â,¬233 million. Enterprise Networks Holdings B.V. Maschinenfabrik Reinhausen GmbH...

  • Page 295
    ...adjusted for the percentage of ownership held by Siemens. Information related to the Statements of Financial Position is presented as of the date used in applying the equity method of accounting. September 30, (in millions of â,¬) 2011 2010 Total assets Total liabilities 18,967 12,843 16,770 11...

  • Page 296
    ...millions of â,¬) 2011 2010 Obligations under finance leases Long-term debt Billings in excess of costs and estimated earnings on uncompleted contracts and related advances Other employee related costs Payroll obligations and social security taxes Bonus obligations Accruals for outstanding invoices...

  • Page 297
    ... Statements of Comprehensive Income Consolidated Statements of Financial Position Consolidated Statements of Cash Flow 158 D.5 Consolidated Statements of Changes in Equity 160 D.6 Notes to Consolidated Financial Statements 266 D.7 Supervisory Board and Managing Board 273 E. Additional information...

  • Page 298
    ...'s Consolidated Statements of Financial Position and no sale and profit has been recognized. For the fiscal 2010 real estate transaction see Note 6 Other operating income. As of September 30, 2011 and 2010, US$ global commercial paper had no balances outstanding. obligations under finance leases As...

  • Page 299
    ...the Consolidated Statements of Comprehensive Income, > Assumptions used for the calculation of the DBO and NPBC, > Sensitivity analysis, > Plan assets, and > Pension benefit payments. September 30, (in millions of â,¬) 2011 2010 Pension benefit plans Other post-employment benefit plans liabilities...

  • Page 300
    ... of the funded status of the pension benefit plans to the amounts recognized in the Consolidated Statements of Financial Position is as follows: September 30, 2011 (in millions of â,¬) Total Domestic Foreign Total September 30, 2010 Domestic Foreign Fair value of plan assets Total defined benefit...

  • Page 301
    ... by country is provided in the following tables: September 30, 2011 (in millions of â,¬) Total Domestic Foreign Total September 30, 2010 Domestic Foreign Change in defined benefit obligations: Defined benefit obligation at beginning of year Foreign currency exchange rate changes Service cost...

  • Page 302
    ...22 (48) 13 57 In addition to net periodic benefit cost for continuing operations presented in the table above, â,¬(70) million and â,¬44 million were recognized for Siemens IT Solutions and Services and for OSRAM for the years ended September 30, 2011 and 2010. The amount of â,¬(70) million for the...

  • Page 303
    ... in the Consolidated Statements of Comprehensive Income, net of tax which relates to OSRAM. with long-term rates of return on plan assets vary according to the economic conditions of the country in which the retirement plans are situated or where plan assets are invested as well as capital market...

  • Page 304
    ... or government bonds of consistent duration and currency at the period-end date. The expected return on plan assets is determined on a uniform basis, considering long-term historical returns, asset allocation, and future estimates of long-term investment returns. In fiscal 2011 and fiscal 2010, the...

  • Page 305
    ... BENEFITS: plAN ASSETS The asset allocation of the plan assets of the pension benefit plans as of the period-end date in fiscal 2011 and 2010, as well as the target asset allocation for fiscal year 2012, are as follows: Target asset allocation September 30, 2012 Asset class Total September 30, 2011...

  • Page 306
    ... (undiscounted): Amounts presented for the years ended September 30, 2011 and 2010 in the table include amounts related to Siemens IT Solutions and Services and OSRAM. (in millions of â,¬) Total Domestic Foreign pension benefits paid 2010 2011 expected pension payments 2012 2013 2014 2015 2016...

  • Page 307
    ...value of plan assets at beginning of year Actual return on plan assets Employer contributions Benefits paid fair value of plan assets at end of year 4 - 24 (24) 4 - - - - - 4 - 24 (24) 4 3 1 27 (27) 4 - - - - - 3 1 27 (27) 4 153 D. 154 155 156 157 D.1 D. 2 D.3 D.4 Consolidated Financial Statements...

  • Page 308
    ... cost for continuing operations presented in the table above, less than a million and â,¬(2) million were recognized for Siemens IT Solutions and Services and for OSRAM for the years ended September 30, 2011 and 2010. OTHER pOST-EmpLOymEnT BEnEfITS: AmOunTS RECOgnIzEd In THE COnSOLIdATEd STATEmEnTS...

  • Page 309
    ... the years ended September 30, 2011 and 2010 in the table above include amounts related to Siemens IT Solutions and Services and OSRAM. Since the benefit obligations for other post-employment benefits are generally not funded, such payments will impact the current operating cash flow of the Company...

  • Page 310
    ...of the Company 's provisions are generally expected to result in cash outflows during the next one to 15 years. Warranties - mainly relate to products sold. See Note 2 Summar y of significant accounting policies at product related expenses for further information concerning our policy for estimating...

  • Page 311
    ...reactors generally changed to a planned phase-out until 2022. Using the input of an independent advisor, management updated its valuation of the liability, accordingly. The valuation uses revised assumptions to reflect current and detailed cost estimates as well as a shorter time span of future cash...

  • Page 312
    ... the Managing Board, with the approval of the Supervisory Board, to increase capital stock through the issuance of no par value shares registered in the names of the holders and to determine the further content of the rights embodied in the shares and the terms and conditions of the share issue as...

  • Page 313
    ...of the Supervisory Board sold to third parties against payment in cash if the price at which such Siemens shares are to be sold is not significantly lower than the market price of the Siemens stock at the time of selling; or (6) used to service convertible bonds or warrants granted by the Company or...

  • Page 314
    ...of Siemens AG as reported in its statutory financial statements determined in accordance with the German Commercial Code (Handelsgesetzbuch). In fiscal 2011, Siemens AG management distributed an ordinary dividend of â,¬2,356 million (â,¬2.70 per share) of the fiscal 2010 earnings to its shareholders...

  • Page 315
    ... over time. Siemens set a capital structure target range of 0.5 - 1.0. Less: Current available-for-sale financial assets net debt Less: SFS Debt Plus: Pension plans and similar commitments 2 Plus: Credit guarantees Less: 50% nominal amount hybrid bond 3 Less: Fair value hedge accounting adjustment...

  • Page 316
    ... by, among other factors, Siemens' capital structure, profitability, ability to generate cash flow, geographic and product diversification as well as Siemens' competitive market position. Siemens' current corporate credit ratings from Moody 's Investors Service and Standard & Poor's are noted as...

  • Page 317
    ...and operate the non-military information and communications technology of the German Federal Armed Forces (Bundeswehr). This project is called HERKULES. A project company, BWI Informationstechnik GmbH (BWI), will provide the services required by the terms of the contract. Siemens is a shareholder in...

  • Page 318
    ... Siemens AG of an investigation against an employee in connection with payments to a supplier related to the oil and gas business in Central Asia from 2000 to 2009. Siemens is cooperating with the public prosecutor. As previously reported, the Wuppertal public prosecutor, Germany, was conducting...

  • Page 319
    ... to 2006 relating to a World Bank-financed project in Russia. On July 2, 2009, the Company entered into a global settlement agreement with the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation and the Multilateral...

  • Page 320
    ... a debarment - against Siemens Nigeria, Siemens AG, and Siemens employees. As previously reported, the Vienna public prosecutor, Austria, is conducting an investigation into payments between 1999 and 2006 relating to Siemens AG Austria and its subsidiary Siemens VAI Metal Technologies GmbH & Co. for...

  • Page 321
    ... of international business transactions in the years 2003 to 2006 and the resulting financial burdens for the Company. The Annual Shareholders' Meeting approved all nine settlements between the Company and the former members of the Managing and Supervisory Board on January 26, 2010. The shareholders...

  • Page 322
    ... the public healthcare sector in the region of Campania for the supply of medical equipment in 2009. On May 5, 2011, the Italian Antitrust Authority sent a Statement of Objections to the companies un- 6 A. To our shareholders 23 B. Corporate Governance 51 C. Combined management's discussion...

  • Page 323
    ... Statements of Comprehensive Income Consolidated Statements of Financial Position Consolidated Statements of Cash Flow 158 D.5 Consolidated Statements of Changes in Equity 160 D.6 Notes to Consolidated Financial Statements 266 D.7 Supervisory Board and Managing Board 273 E. Additional information...

  • Page 324
    ...and governmental officials relating to procurement of medical equipment in the public sector. As is the case with other providers of medical equipment, OOO Siemens Russia has received nu- 6 A. To our shareholders 23 B. Corporate Governance 51 C. Combined management's discussion and analysis...

  • Page 325
    ... Statements of Comprehensive Income Consolidated Statements of Financial Position Consolidated Statements of Cash Flow 158 D.5 Consolidated Statements of Changes in Equity 160 D.6 Notes to Consolidated Financial Statements 266 D.7 Supervisory Board and Managing Board 273 E. Additional information...

  • Page 326
    ... quotations at the period-end date. The fair value of unquoted notes and bonds, loans from banks and other financial indebtedness, obligations under finance leases as well as other noncurrent financial liabilities is estimated by discounting future cash flows using rates currently available for debt...

  • Page 327
    ... future cash flows using current market interest rates and yield curves Derivative financial instruments Total Financial liabilities measured at fair value Derivative financial instruments 8 1,597 - 1,605 September 30, 2010 Level 1 Level 2 Level 3 Total Financial assets measured at fair value...

  • Page 328
    ... Siemens has pledged as collateral amounted to â,¬565 million and â,¬537 million, respectively. Year ended September 30, (in millions of â,¬) 2011 2010 Cash and cash equivalents Available-for-sale financial assets Loans and receivables Financial liabilities measured at amortized cost Financial...

  • Page 329
    ... and purchases as well as firm commitments. This risk results mainly from contracts denominated in US$ both from Siemens' business units entering into long-term contracts (project business) and from the standard product business. Cash flow hedges - Changes in fair value of foreign currency exchange...

  • Page 330
    ... fair values are charged to line item Other financial income (expense), net. Net cash receipts and payments relating to interest rate swaps used in offsetting relationships are also recorded in line item Other financial income (expense), net. Year ended September 30, (in millions of â,¬) 2012 2013...

  • Page 331
    ... instruments are recorded at fair value on the Consolidated Statements of Financial Cash flow hedges of a variable-rate term loan As of September 30, 2011 and 2010, the Company applied cash flow hedge accounting for 50% of a variable-rate US$ 1 billion term loan. To benefit from the low interest...

  • Page 332
    ... its future commodity purchases is 35 months. Increasing market fluctuations may result in significant cash flow and earnings volatility risk for Siemens. The Company 's operating business as well as its investment and financing activities are affected by changes in foreign exchange rates, interest...

  • Page 333
    .... SFS holds a minor trading portfolio which is subject to strict limits. As of September 30, 2011, and 2010, respectively, it had a VaR close to zero. foreign currency exchange rate risk transaction risk and foreign currency exchange rate risk management Siemens' international operations expose the...

  • Page 334
    ...Consolidated Financial Statements, interest rate risk Siemens' interest rate risk exposure is mainly related to debt obligations like bonds, loans, commercial paper and interestbearing deposits and investments. Siemens manages this risk using derivative financial instruments which allow the Company...

  • Page 335
    ...are mainly transacted for financial reasons. The equity investments are monitored based on their current market value, affected primarily by fluctuations in the volatile technology-related markets worldwide. The market value of Siemens' portfolio in publicly traded companies as of September 30, 2011...

  • Page 336
    ...Available-for-sale financial assets, as stated on the Consolidated Statements of Financial Position. Management uses the Net debt measure for internal corporate finance management, as well as for external communication with investors, analysts and rating agencies. Siemens' capital resources consist...

  • Page 337
    ... Base Share Program. stoCk AwArds The Company grants stock awards and phantom stock as a means for providing share-based compensation to members of the Managing Board, members of the senior management of Siemens AG and its domestic and foreign subsidiaries and other eligible employees. Stock awards...

  • Page 338
    ... ProgrAm And its underlying PlAns: 1. share matching Plan In fiscal 2011 and 2010, the Company issued a new tranche under the Share Matching Plan. Starting with the tranche issued in fiscal 2010, senior managers of Siemens AG and participat- 6 A. To our shareholders 23 B. Corporate Governance...

  • Page 339
    ... stock of Siemens AG, treasury stock or in cash. The settlement method will be determined by the Managing Board. Each fiscal year, the Company decides whether or not to issue a new tranche under the Share Matching Plan. 3. base share Program In fiscal 2011 and 2010, the Company issued an annual...

  • Page 340
    ...the exercise price at least once during the life of the option. The terms of the plan allowed the Company, at its discretion upon exercise of the option, to offer optionees settlement of the options in either newly issued shares of common stock of Siemens AG from the Conditional Capital reserved for...

  • Page 341
    ...2010, for Options outstanding the weighted average remaining contractual term was 0.13 years; the aggregate intrinsic value amounted to â,¬3 million. Item Expenses relating to pension plans and employee benefits includes service costs for the period. Expected return on plan assets and interest cost...

  • Page 342
    ... with Financial Services (SFS), financing to assist customers in purchasing the Sector's products. equity investments Equity Investments is a reportable segment with its own management. Equity Investments contains investments account- 6 A. To our shareholders 23 B. Corporate Governance 51...

  • Page 343
    ...used for Siemens, which are described in Note 2 Summar y of significant accounting policies. Lease transactions, however, are classified as operating leases for internal and segment reporting purposes. Corporate overhead is generally not allocated to segments, except for central infrastructure costs...

  • Page 344
    ... Equity Investments, primarily NSN. In contrast, Assets of SFS is Total assets. A reconciliation of Assets disclosed in Segment information to Total assets in the Consolidated Statements of Financial Position is presented below. new orders New orders are determined principally as estimated revenue...

  • Page 345
    ... shareholder loans granted to investments reported in Equity Investments, primarily NSN. Pension curtailments are a partial payback with regard to past service cost that affect segment Free cash flow. Free cash flow of SFS, a financial services business, includes related financing interest payments...

  • Page 346
    ... consolidated amount for the Company. Free cash flow (I) = (II) - (III) Year ended September 30, (in millions of â,¬) 2011 2010 Net cash provided by (used in) operating activities (II) Year ended September 30, 2011 2010 Additions to intangible assets and property, plant and equipment (III) Year...

  • Page 347
    ... of business whereby Siemens buys and sells a wide variety of products and services generally on arm's length terms. For information regarding our subsidiaries, joint ventures and associated companies in fiscal 2011 see Note 19 Investments accounted for using the equity method and Note 43 List of...

  • Page 348
    ... sale and lease back transaction with entities controlled by the Siemens Pension-Trust e.V. was derecognized; for further information see Note 6 Other operating income. relAted individuAls Related individuals include the members of the Managing Board and Supervisory Board. In fiscal 2011 and 2010...

  • Page 349
    ... Consolidated Financial Statements, is presented within the Corporate Governance report, included in this Annual Report for fiscal year 2011 (see B.4). In fiscal 2011 and 2010, no other major transactions took place between the Company and the other members of the Managing Board and the Supervisory...

  • Page 350
    ... of financial statements of Siemens AG and of its subsidiaries under the rules of their respective countries > Opening balance sheet audits in connection with acquisitions, including audits with regard to the allocation of purchase prices 6 A. To our shareholders 23 B. Corporate Governance 51...

  • Page 351
    ... the Sector's innovative capacity and competitiveness. The initiative includes higher investments in product development and expanded sales activities as well as measures aimed at realigning the radiation therapy business and a program to improve the cost position in the Diagnostics Division. The...

  • Page 352
    ... Global Innovation Partners Management GmbH, Munich Siemens Grundstücksmanagementgesellschaft mbH & Co. OHG, Grünwald Siemens Gusstechnik GmbH, Chemnitz Siemens Healthcare Diagnostics GmbH, Eschborn Siemens Healthcare Diagnostics Holding GmbH, Eschborn Siemens Healthcare Diagnostics Products GmbH...

  • Page 353
    ... Statements of Comprehensive Income Consolidated Statements of Financial Position Consolidated Statements of Cash Flow 158 D.5 Consolidated Statements of Changes in Equity 160 D.6 Notes to Consolidated Financial Statements 266 D.7 Supervisory Board and Managing Board 273 E. Additional information...

  • Page 354
    ... 30, 2011 Equity interest in % September 30, 2011 Equity interest in % Siemens Healthcare Diagnostics Services Sprl, Brussels / Belgium Siemens Industry Software NV, Zaventem / Belgium Siemens Product Lifecycle Management Software II (BE) BVBA, Zaventem / Belgium Siemens S.A./N.V., Anderlecht...

  • Page 355
    ... Statements of Comprehensive Income Consolidated Statements of Financial Position Consolidated Statements of Cash Flow 158 D.5 Consolidated Statements of Changes in Equity 160 D.6 Notes to Consolidated Financial Statements 266 D.7 Supervisory Board and Managing Board 273 E. Additional information...

  • Page 356
    .../ Russian Federation Siemens Research Center Limited Liability Company, Moscow / Russian Federation ZAO DeltaLeasing, Vladivostok / Russian Federation OSRAM AB, Stockholm / Sweden Siemens AB, Upplands Väsby / Sweden Siemens Financial Services AB, Stockholm / Sweden Siemens Healthcare Diagnostics AB...

  • Page 357
    ... Statements of Comprehensive Income Consolidated Statements of Financial Position Consolidated Statements of Cash Flow 158 D.5 Consolidated Statements of Changes in Equity 160 D.6 Notes to Consolidated Financial Statements 266 D.7 Supervisory Board and Managing Board 273 E. Additional information...

  • Page 358
    .../ USA Siemens Financial, Inc., Iselin, NJ / USA Siemens Fossil Services, Inc., Orlando, FL / USA Siemens Generation Services Company, Orlando, FL / USA Siemens Government Technologies, Inc., Reston, VA / USA Siemens Government, Inc., Arlington, TX / USA Siemens Healthcare Diagnostics Inc., Tarrytown...

  • Page 359
    ... Statements of Comprehensive Income Consolidated Statements of Financial Position Consolidated Statements of Cash Flow 158 D.5 Consolidated Statements of Changes in Equity 160 D.6 Notes to Consolidated Financial Statements 266 D.7 Supervisory Board and Managing Board 273 E. Additional information...

  • Page 360
    September 30, 2011 Equity interest in % September 30, 2011 Equity interest in % Siemens Healthcare Diagnostics Limited, Hong Kong / Hong Kong Siemens Industry Software Limited, Hong Kong / Hong Kong Siemens Ltd., Hong Kong / Hong Kong Siemens Water Technologies International Sales Ltd., Hong ...

  • Page 361
    ... Statements of Comprehensive Income Consolidated Statements of Financial Position Consolidated Statements of Cash Flow 158 D.5 Consolidated Statements of Changes in Equity 160 D.6 Notes to Consolidated Financial Statements 266 D.7 Supervisory Board and Managing Board 273 E. Additional information...

  • Page 362
    ... Kiel Management GmbH, Wiesbaden RITOS GmbH, Mömbris SIEKAP Industrial Services Gernsbach GmbH, Gernsbach Siemens Venture Capital Fund 1 GmbH, Munich Siemens-Electrogeräte GmbH, Munich SKAG Eurocash, Munich SKAG Euroinvest Corporates, Munich Symeo GmbH, Neubiberg Transrapid International...

  • Page 363
    ... Statements of Comprehensive Income Consolidated Statements of Financial Position Consolidated Statements of Cash Flow 158 D.5 Consolidated Statements of Changes in Equity 160 D.6 Notes to Consolidated Financial Statements 266 D.7 Supervisory Board and Managing Board 273 E. Additional information...

  • Page 364
    ... in % September 30, 2011 Equity interest in % Yaskawa Siemens Automation & Drives Corp., Kitakyushu / Japan Temir Zhol Electrification LLP, Astana / Kazakhstan Rousch (Pakistan) Power Ltd., Karachi / Pakistan Power Automation Pte. Ltd., Singapore / Singapore Modern Engineering and Consultants Co...

  • Page 365
    ... Statements of Comprehensive Income Consolidated Statements of Financial Position Consolidated Statements of Cash Flow 158 D.5 Consolidated Statements of Changes in Equity 160 D.6 Notes to Consolidated Financial Statements 266 D.7 Supervisory Board and Managing Board 273 E. Additional information...

  • Page 366
    ... Board and of the Group Executive Committee, Deutsche Bank AG Date of birth: February 7, 1948 Member since: January 23, 2003 External positions Positions outside Germany: Belenos Clean Power Holding Ltd., Switzerland (Deputy Chairman) Royal Dutch Shell plc, Netherlands Zurich Financial Services AG...

  • Page 367
    ... Statements of Comprehensive Income Consolidated Statements of Financial Position Consolidated Statements of Cash Flow 158 D.5 Consolidated Statements of Changes in Equity 160 D.6 Notes to Consolidated Financial Statements 266 D.7 Supervisory Board and Managing Board 273 E. Additional information...

  • Page 368
    ... issues relating to corporate governance. The Audit Committee's duties include, in particular, preparing Supervisory Board reviews of the annual financial statements of Siemens AG and of the Consolidated Financial Statements of Siemens worldwide. The Committee also discusses the Company 's quarterly...

  • Page 369
    ... Statements of Comprehensive Income Consolidated Statements of Financial Position Consolidated Statements of Cash Flow 158 D.5 Consolidated Statements of Changes in Equity 160 D.6 Notes to Consolidated Financial Statements 266 D.7 Supervisory Board and Managing Board 273 E. Additional information...

  • Page 370
    ... board positions: TÜV Süd AG, Munich Company positions (until March 31, 2011) Positions outside Germany: Siemens Ltd., China (Chairman) Siemens Ltd., India Siemens Pte. Ltd., Singapore Barbara Kux Date of birth: February 26, 1954 First appointed: November 17, 2008 Term expires: November 16, 2013...

  • Page 371
    ... positions German supervisory board positions: Software Aktiengesellschaft, Darmstadt Company positions German supervisory board positions: BSH Bosch und Siemens Hausgeräte GmbH, Munich OSRAM AG, Munich Positions outside Germany: Siemens Healthcare Diagnostics Inc., USA Siemens Japan Holding...

  • Page 372
    ... programs offered to employees and managers (excluding the Managing Board). Members as of September 30, 2011 Peter Löscher (Chairman) Equity and Employee Stock Committee Joe Kaeser Brigitte Ederer Further information on corporate governance at Siemens is available at www.siemens.com/corporate...

  • Page 373
    E. Additional information 274 E.1 Statement of the Managing Board 274 E.2 Responsibility statement 275 E.3 Independent Auditors' report 276 E.4 Five-year summary 278 E.5 Glossary 281 E.6 Index 283 E.7 Information resources / Further information Company structure 285 E.8 E

  • Page 374
    ... data they have reported to Siemens' corporate headquarters and the effectiveness of the related control sys- Shareholders' Meeting, Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft has audited the Consolidated Financial Statements and group management report, and issued an unqualified opinion...

  • Page 375
    ... included in consolidation, the accounting and consolidation principles used and significant estimates made by the Managing Board, as well as evaluating the overall presentation of the Consolidated Financial Statements and the group management report. We believe that our audit provides a reasonable...

  • Page 376
    ... costs see Note 35 to the Consolidated Financial Statements. 6 Dividend per share for fiscal 2011 as proposed to the Annual Shareholders' Meeting. 7 Xetra closing prices, Frankfurt. 8 Based on shares outstanding. 6 A. To our shareholders 23 B. Corporate Governance 51 C. Combined management...

  • Page 377
    ... 1st Quarter Revenue Net income 68,978 4,068 19,403 (396) 17,425 1,435 16,523 1,498 15,627 1,531 153 D. Consolidated Financial Statements 273 E. 274 274 275 276 E.1 E.2 E.3 E.4 Additional information 277 Statement of the Managing Board Responsibility statement Independent Auditors' report...

  • Page 378
    ... Associates C Captive finance unit Cash conversion rate Cash flows Comfort letter Commercial paper Commercial Paper Program Compliance Corporate Treasury A financial services unit organized as a business within an industrial enterprise that offers financial solutions primarily to customers...

  • Page 379
    ...International Monetary Fund (IMF). A method under which associates are accounted for in the Consolidated Financial Statements. An estimation of expected return derived from pension plan assets at the beginning of fiscal year. Equity method Expected return on plan assets F Fair value Free cash flow...

  • Page 380
    ... capital market under predetermined terms and conditions, thus providing flexibility in raising debt within a very short period of time. Independent rating agency that provides standardized indicators for assessing a companies' credit ratings. Moody 's Investors Service n Net periodic benefit cost...

  • Page 381
    ... report Corporate Governance statement Credit ratings Customer focus F Finance and Investment Committee Financial calendar Financial performance measures Financial position Financial risk management Financial Services (SFS) Fiscal 2011 - Financial summary Five-year summary Focus areas (One Siemens...

  • Page 382
    ... management Risks N Net assets position New orders Nokia Siemens Networks (NSN) B.V. Nominating Committee Notes to Consolidated Financial Statements II 114 II 4, II 81, II 83, II 84, II 244 II 174, II 242 II 27, II 269 II 160 S São Paulo report Service business Share ownership Share-based payment...

  • Page 383
    ...PRODuCTION Publicis KommunikationsAgentur GmbH, GWA, Munich © 2011 by Siemens AG, Berlin and Munich 153 D. Consolidated Financial Statements 273 E. 274 274 275 276 E.1 E.2 E.3 E.4 Additional information 28 3 Statement of the Managing Board Responsibility statement Independent Auditors' report...

  • Page 384
    ...can be accessed at m.siemens.com Employees should be sure to include their postal address and complete order data (Org-ID and cost center information). In addition to an Annual Report at the end of each fiscal year, Siemens publishes quarterly consolidated financial statements in the form of press...

  • Page 385
    E.8 Company structure 153 D. Consolidated Financial Statements 273 E. 274 274 275 276 E.1 E.2 E.3 E.4 Additional information 285 Statement of the Managing Board Responsibility statement Independent Auditors' report Five-year summary 278 281 283 285 E.5 E.6 E.7 E.8 Glossary Index Information ...

  • Page 386
    ... Technology Corporate Technology Joe Kaeser Corporate Finance and Controlling Financial Services Siemens Real Estate Equity Investments Corporate Communications and Government Affairs Corporate Development Energy Michael Süß Healthcare Clinical Products Hermann Requardt Energy Service...

  • Page 387
    Barbara Kux Corporate Supply Chain Management Corporate Sustainability Global Shared Services Hermann Requardt Healthcare Siegfried Russwurm Industry Corporate Information Technology Africa, Middle East Peter Y. Solmssen Corporate Legal and Compliance Americas Michael Süß Energy Industry ...

  • Page 388
    ... and international focus have been our hallmarks for over 160 years. Siemens is one of the world's largest providers of green technologies. Products and solutions from our Environmental Portfolio already account for considerably more than one-third of our total revenue. In fiscal 2011, our...