Siemens 2011 Annual Report Download - page 177

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)

growth in GDP reported a year earlier. Although investments
are declining somewhat as economic stimulus packages wind
down, China continues to be the most important growth driver
for the global economy in . Driven by its domestic consum-
er market, India also continues to see strong GDP growth in
. IHS Global Insight forecasts GDP growth of .% for India
in  following the .% growth achieved in .
A key factor for Siemens, as a plant and infrastructure provid-
er, is the trend in gross fixed investments, one of the ways
in which gross domestic product is used. This trend is heavily
influenced by fluctuations in the economic cycle. IHS Global
Insight is predicting growth of .% in gross fixed investments
for  following an increase of .% in . In the Europe,
C.I.S., Africa, and Middle East region, which, with a .% in-
crease in gross fixed investments a year earlier, experienced
the weakest growth rate of any of our reporting regions, IHS
Global Insight expects gross fixed investment growth of .%
in . One of the key growth drivers in the region is Germa-
ny. Here growth is expected to accelerate to .% in , ac-
cording to IHS Global Insight. Last year’s figure was .%. For
the Americas region, IHS Global Insight forecasts .% growth
in gross fixed investments, down from .% achieved in .
While gross fixed investments in the U.S. are expected to in-
crease by .% in , up from .% reported last year,
growth in Brazil declined to a normal level and is estimated to
reach .% in . In , growth in Brazil was exceptionally
high at .%. Gross fixed investments in the Asia, Australia
region are expected to rise by .% in , according to IHS
Global Insight. Last year’s figure was .%. With regard to Chi-
na, growth in gross fixed investments is expected to fall to
.% from the .% reported in . IHS Global Insight pre-
dicts that India’s gross fixed investments will grow by .% in
 following the .% 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 .% recorded in , IHS
Global Insight forecasts .% growth in manufacturing value
added in , with the Asia, Australia region being expected
to see the strongest growth of the three reporting regions.
The partly estimated figures presented here for gross domes-
tic product are drawn from an IHS Global Insight report dated
October , . The partly estimated figures on gross fixed
investments and manufacturing value added are drawn from
an IHS Global Insight report dated October , . Siemens
has not independently verified this data.
In addition to the common currency of the European Monetary
Union (the euro, €) another key currency for Siemens is the
US$. Following a decline of the value of the € against the US$
in the middle of the first quarter of fiscal , the € continu-
ously strengthened against the US$ until the beginning of the
third quarter of the current fiscal year. After a slight decline of
the € in the second month of the third quarter of fiscal ,
the value of the € against the US$ remained nearly unchanged
until the end of August . The last month of fiscal  was
marked by a significant drop of the euro against the US$ on
growing concerns over the sovereign debt crisis in a number
of southern European member states of the European Mone-
tary Union. Overall the value of the € against the US$ declined
% compared to the end of the last fiscal year.
Our businesses are also dependent on the development of
raw material prices. Key materials to which we have signifi-
cant cost exposure include copper, various grades and for-
mats of steel and aluminum. In addition, within stainless
steel we have considerable exposure related to nickel and
chrome alloy materials.
The monthly average price of copper (denominated in € per
metric ton) increased by approximately % during fiscal ,
adding to the approximately % price increase already ab-
sorbed in fiscal . Prices for copper are pushed higher both
by tightened supply and demand fundamentals and by specu-
lative influences in the commodity markets. Nevertheless, be-
cause copper is produced in multiple locations and traded,
such as across the London Metal Exchange, the risk to
Siemens is primarily a price risk rather than a supply risk.
Real GDP growth per region
(change in % compared to prior year) 
World Europe, C.I.S.,
Africa,
Middle East
Americas Asia,
Australia






 
1 According to IHS Global Insight as of October , ;
growth rates provided by calendar year.
2 Estimate for calendar year .
3 Commonwealth of Independent States.
3.0 2.3 2.3
7.1
4.6
4.2
2.7 3.7