Siemens 2011 Annual Report Download - page 155

153 D. Consolidated Financial Statements
273 E. Additional information
143 C.2 Additional information for supplemental
financial measures
145 C. Siemens AG (Discussion on basis of
German Commercial Code)
151 C. Notes and forward-looking statements
140 C. Information required pursuant to Section  ()
and Section  () no.  of the German Commer-
cial Code (HGB) and explanatory report
142 C. Compensation report and Corporate Governance
statement pursuant to Section a of the German
Commercial Code (HGB)

On a geographic basis, Siemens was subdivided into 17 Re-
gional Clusters as of September , , which are in turn as-
signed to one of our three reporting regions. We report finan-
cial measures for these three regions:
In addition, we report financial information at group level for
certain major countries within each region, including Germa-
ny (within the region Europe, C.I.S., Africa, Middle East), the
U.S. (within the region Americas), and China and India (with-
in the region Asia, Australia).
C.. Strategy
C... GLOBAL MEGATRENDS
Global megatrends are long-term developments that are ex-
pected to have an impact on all humanity. We at Siemens view
demographic change, urbanization, climate change and glo-
balization as megatrends that we anticipate will drive global
demand in coming decades. We have therefore aligned our
strategy and business activities with these developments, in-
cluding most recently by implementing our new Sector struc-
ture with effect from October , . In our Energy, Health-
care and Industry Sectors and the new Infrastructure & Cities
Sector we are developing pioneering products and solutions
which we believe are capable of dealing with the most signifi-
cant challenges of our time. These include contributing to im-
proved healthcare for a growing and aging population, help-
ing to save our climate and resources through sustainable en-
ergy generation, and shaping urban infrastructures in an en-
ergy-efficient and, thus, environmentally-friendly way.
Demographic change includes two major trends: the world’s
population continues to grow rapidly and to get older. It is es-
timated that by the year  the world’s population will
reach nine billion, compared to approximately seven billion
today. By then, life expectancy is expected to be at a global av-
erage of  years, compared to  years today and  years in
. This will challenge the ability of future healthcare sys-
tems to make affordable healthcare available to everyone.
Siemens provides innovative medical solutions that can help
to reduce healthcare costs, while at the same time improving
the quality of healthcare, through preventive care and early
diagnosis of disease – two essential requirements for living
longer, healthier lives.
Urbanization refers to the growing number of large, densely-
populated cities around the world. This includes both estab-
lished metropolitan centers in industrialized nations and fast-
rising urban centers in emerging economies. In , for the
first time in human history, more than % of the world‘s pop-
ulation lived in urban areas. This percentage is expected to
rise to about % by , coinciding with rapid overall popu-
lation growth as mentioned above. Accordingly, there is
strong demand for sustainable and energy-efficient infra-
structures for buildings, transportation systems, and energy
and water supply. We believe that Siemens’ wide-ranging port-
folio is well-suited for improving the quality of life in cities.
We believe that our products and solutions for manufactur-
ing, urban transit, building construction, power distribution
Regional structure as of September , 
1 Commonwealth of Independent States.
Regional structure
Europe, C.I.S.
,
Africa, Middle East Americas Asia, Australia