Siemens 2011 Annual Report Download - page 205

153 D. Consolidated Financial Statements
273 E. Additional information
143 C. 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)

Cash flows from investing activities – Investing activities in
continuing and discontinued operations used net cash of
€. billion in fiscal , compared to net cash used of
€. billion a year earlier.
Within the total, net cash used in investing activities for con-
tinuing operations amounted to €. billion in the current
period compared to net cash used of €. billion in fiscal
. Higher cash outflows in the current period are due
mainly to cash outflows of €. billion in fiscal  for the
increase in receivables from financing activities. In the fourth
quarter of fiscal , SFS announced a growth strategy which
includes even stronger support for the operating businesses
of Siemens, leading to higher net cash outflows at the end of
the fourth quarter primarily to the growth in the commercial
finance business at SFS. Higher purchases of investments in
fiscal  of € million primarily included cash outflows
relating to the € million in new equity, which we provided
to NSN in exchange for preferred shares in order to further
strengthen NSN ’s financial position. Other factors within pur-
chases of investments relate to the build-up of our concen-
trated solar power business and the first installment payment
for our equity investment in ASEA A / S, a supplier of offshore
wind-farm installation services. These higher cash outflows
were partly offset by higher proceeds from sales of invest-
ments, intangibles and property, plant and equipment, which
rose to €. billion from € million in the prior-year peri-
od. Sales of investments of €. billion in the current period
primarily included proceeds of €. billion from the sale of our
stake in Areva NP S.A.S. in the second quarter of fiscal ,
subsequently reduced by €. billion in the third quarter of
fiscal  due to the arbitration decision as mentioned earli-
er. Proceeds from sales of investment, intangibles and proper-
ty, plant and equipment also included the sale of our % mi-
nority stake in KMW and higher proceeds from real estate dis-
posals at SRE than a year earlier. Cash outflows for acquisi-
tions, net of cash acquired, of € million in fiscal  relate
primarily to several acquisitions of entities within Total Sec-
tors to optimize our business portfolio. For comparison, the
prior-year period included cash outflows of € million in-
cluding € million for the acquisition of Solel Solar Sys-
tems, a concentrated solar power company.
Discontinued operations used net cash of €. billion in in-
vesting activities in fiscal , compared to net cash used of
€ million a year earlier. The current period included addi-
tions to intangible assets and property, plant and equipment
mainly at OSRAM, as well as payments of € million related
to OSRAM’s acquisition of Siteco, a supplier of urban infra-
structure lighting. Additional cash outflows of €. billion re-
lated to the disposal of Siemens IT Solutions and Services, in-
cluding the effects resulting from the transfer and the contri-
bution of plan assets into separate pension plans in fiscal .
Free cash flow from continuing and discontinued operations
amounted to a positive €. billion in fiscal  compared
to a positive €. billion a year earlier.
Free cash flow from continuing operations amounted to a pos-
itive €. billion in fiscal , compared to a positive
€. billion a year earlier. The change year-over-year was
due primarily to the decrease in net cash provided by operat-
ing activities as discussed above. Cash used for additions to
intangible assets and property, plant and equipment in-
creased from €. billion in the prior-year period to €.
billion in the current period, due primarily to increased invest-
ments in the Industry Sector and at SRE, associated with its
responsibility for uniform and comprehensive management
of the real estate assets of Siemens worldwide.
On a sequential basis Free cash flow during fiscal  and fis-
cal  developed as follows:
Free cash flow (in millions of €) 
Q4 11 3,480
Q3 11 992
Q2 11 354
Q1 11 1,059
Q4 10 2,931
Q3 10 2,088
Q2 10 1,311
Q1 10 713
1 Continuing operations.
Cash flows from financing activities – Financing activities
from continuing and discontinued operations used net cash
of €. billion in the fiscal , compared to €. billion
of net cash used a year earlier.
Within the total, continuing operations used net cash of
€. billion in fiscal , compared to net cash used of
€. billion a year earlier. The increase in cash outflows was
due primarily to the redemption of €. billion in .% bonds