Siemens 2011 Annual Report Download - page 156

6 A. To our shareholders
23 B. Corporate Governance 51 C. Combined management’s discussion and analysis
52 C. Business and operating environment
80 C.2 Fiscal  – Financial summary
83 C. Results of operations
101 C. Financial position
114 C. Net assets position
117 C. Overall assessment of the economic position
118 C. Report on post-balance sheet date events
119 C. Report on expected developments and
associated material opportunities and risks
135 C. Information required pursuant to Section  ()
and Section  () of the German Commercial
Code (HGB) and explanatory report

and hospitals, among other things, can help to advance mo-
bility, security and an adequate supply of life’s basic require-
ments while at the same time reducing their burden on the
environment.
Climate change is a fact. The average global surface tempera-
ture increased by 0.76°C between  and the beginning of
the st century. If carbon dioxide emissions continue to rise
at the same rate, temperature increases of .°C (lowest emis-
sion scenario) to °C (highest emission scenario) are forecast
for the end of the st century, which would have far-reaching
consequences for civilization and our entire biosphere. The
reduction of greenhouse gas emissions is vital to avoiding in-
creasingly drastic effects on our ecosystem. There is a strong
need for innovative technologies to increase efficiency and re-
duce the emissions related to energy generation and con-
sumption. Siemens is a leader in climate protection technolo-
gies, including but not limited to increasing the efficiency of
power generation from fossil fuels; generating energy from
renewable sources such as wind and solar; increasing the effi-
ciency and performance of electrical grids; increasing the en-
ergy efficiency of transportation solutions and industrial pro-
cesses; reducing the energy needs of buildings; and reducing
emissions from all of the above.
Globalization refers to the increasing integration of the
world‘s economies, politics, culture and other areas of life. Be-
tween  and , the volume of global trade expanded at
an average annual rate of .%. The number of multinational
enterprises rose globally from around , in  /  to
more than , in . Globalization leads to increased
competitive pressure and demand for economical, timely-to-
market, high-quality products and solutions. With our offer-
ings, we aim to increase our customers’ productivity by facili-
tating process and energy efficiency improvements and the
flow of goods. In addition, we believe that our presence in
around  countries puts us in an excellent position to bene-
fit from above-average growth in emerging markets.
C... STRATEGY OF THE SIEMENS GROUP
Our vision is to be a pioneer in
> energy efficiency,
> industrial productivity,
> affordable and personalized healthcare, and
> intelligent infrastructure solutions.
This vision is reflected in our company strategy, which guides
us in turning our vision into reality. Above all, we are aiming
to be a market and technology leader in our businesses, based
on our corporate values – to be responsible, excellent and
innovative. We believe that this approach will position us to
achieve sustainable, profitable growth and to outpace our
competitors. As an integrated technology company, we intend
to profit from the megatrends described above.
Our strategy comprises what we call our three strategic di-
rections:
> focusing on innovation-driven growth markets,
> getting closer to our customers, and
> using the power of Siemens.
One Siemens is our framework for sustainable value creation,
with a financial target system for capital-efficient growth and
the goal of continuous improvement relative to the market
and our competitors.
We will measure our performance against our competitors.
Our goal and our aspiration is to consistently outperform our
competitors and to set standards for leadership – with respect
to financial performance as well as operational strength. The
financial target system of One Siemens defines financial key
performance indicators for revenue growth, for capital effi-
ciency and profitability, and for the optimization of our capital
structure. In addition, we set hurdle rates that generally need
to be considered before acquisitions are executed. Further, we
defined an indicator targeted at an attractive dividend policy.
We believe that these indicators will play a key role in driving
the value of our Company. For further information, see C..
Financial performance measures.
To achieve our goal of sustainably enhancing the value of
Siemens and of exploiting the full potential of our integrated
technology company, we have defined three concrete focus
areas along each of the three strategic directions set forth
above, which we aim to address in the years ahead. In the
strategic direction of focusing on innovation-driven growth
markets, our first focus area is to be a pioneer in technolo-
gy-driven markets. We intend to concentrate on innovation-
and technology-driven markets that will form the basis of
Siemens’ core business in the future, for example, by provid-
ing intelligent and sustainable infrastructure solutions for the
world’s cities. Our second focus area is to strengthen our
portfolio. We are actively and systematically managing our