Siemens 2011 Annual Report Download - page 120

6 A. To our shareholders 51 C. Combined management’s discussion and analysis 23 B. Corporate Governance
6 A. Report of the Supervisory Board
12 A. Managing Board of Siemens AG
14 A. Letter to our shareholders
20 A.4 The Siemens share / Investor relations

A.4 The Siemens share / Investor relations
During fiscal , the Siemens share price developed largely
in line with the German stock market. Market momentum was
strong, with share prices reaching their highest level in April
. Then, in August , the international stock markets
experienced one of their worst declines in more than 
years – and the Siemens share did not remain unaffected. Fol-
lowing the very large dividend increase from €. to €. in
fiscal  and in accordance with the dividend payout ratio
we defined as part of our One Siemens target system, we in-
tend for our shareholders to profit from increased income
again this year. The Managing Board and the Supervisory
Board will thus propose a further increased dividend for fiscal
 of €. per share, representing a payout ratio of %.
Siemens AG, which continues to have a very sound financial
basis, again reduced its net debt in fiscal . In an environ-
ment in which increasing attention is being paid to the declin-
ing ratings of many countries, our Company continues to en-
joy good, stable, investment-grade credit ratings, with an im-
proved outlook.
A.4.1 Stock markets – Financial crisis
erodes share price gains
Reflecting economic developments, the stock market environ-
ment was characterized by continuously increasing prices
during the first three months of fiscal  (October ,  to
December , ). In the months that followed, the positive
price development continued, aside from a few minor set-
backs. At the beginning of August , the worst stock mar-
ket crisis since  ensued, with both the DAX  and the
Siemens share price declining more than %. The markets
subsequently recovered slowly from the downturn, but prices
did not completely return to earlier levels.
Siemens stock performed relatively well in this market envi-
ronment, closing at €. per share on September , .
For shareholders who reinvested their dividends, this amount-
ed to a loss of .% (fiscal : a gain of .%) compared to
the closing price a year earlier. The Siemens share performed
somewhat better than the leading index of the German stock
market, the DAX  (which depreciated .%), but remained
behind the leading international index, MSCI World (which
declined .%).
A long-term comparison illustrates the strength of the
Siemens share: the assets of an investor who acquired
Siemens stock worth €, at the beginning of fiscal 
Change in the value of an investment in Siemens shares in fiscal  (with dividends reinvested; indexed)
in % September 30, 2010 September 30, 2011
140
130
120
110
100
90
80
70
Siemens DAX® MSCI World
Long-term performance of Siemens shares
compared with leading indices
(average annual performance with dividends reinvested)
Five-year
period FY 2007 – FY 2011
Siemens 2.3%
DAX® (1.7)%
MSCI World (2.2)%
Ten-year
period FY 2002 – FY2011
Siemens 7.3%
DAX® 2.5%
MSCI World 3.7%