Siemens 2011 Annual Report Download - page 209

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)

machines particularly at Power Transmission. Healthcare
used its capital expenditure of € million in fiscal  pri-
marily for development of software and IT solutions and mak-
ing investments for additions to assets held for rental in oper-
ating leases relating to Diagnostics’ products.
The changes of capital expenditures from fiscal  to 
are as follows:
The capital expenditure rate for our Total Sectors was % for
fiscal . The capital expenditure rate is the ratio of the
items Additions to intangibles assets and property, plant and
equipment and Additions to assets held for rental in operating
leases to depreciation and impairments of property, plant and
equipment, net of reversals of impairments as well as amorti-
zation and impairments of intangible assets, net of reversals
of impairments as presented in D. Notes to Consolidated Fi-
nancial Statements. Goodwill impairment is excluded. Our
mid-term target is to keep our capital expenditure rate in the
range of % to %.
The capital expenditure rates for our Total Sectors for fiscal
 and fiscal  are as follows:
Dividend – At the Annual Shareholders’ Meeting scheduled
for January , , the Managing Board, in agreement with
the Supervisory Board, will submit the following proposal to
allocate the unappropriated net income of Siemens AG for the
fiscal year ended September , : distribution of a divi-
dend of €. on each no-par value share entitled to the divi-
dend for fiscal year  existing at the date of the Annual
Shareholders’ Meeting, which in the aggregate amounts to an
at present expected total distribution of approximately €.
billion, with the remaining amount to be carried forward.
Other capital resources and requirements – Two major
portfolio transactions are expected to have a major influence
on our cash flows from discontinued operations in fiscal .
We expect that the disposal of Siemens IT Solutions and Ser-
vices in fiscal  will occasion significant cash outflows in
coming quarters that might reach a high triple-digit million €
amount. These cash outflows consist, among other things, of
extensive support that Siemens is providing in order to foster
Siemens IT Solutions and Services’ business success including
for integration and training costs as well as further protec-
tions and guarantees. In addition, we expect, that the planned
public offering of OSRAM AG will result in substantial cash in-
flows. Furthermore, our capital requirements also include
higher cash outflows in coming quarters from measures at
the Healthcare Sector aimed at improving its competitive po-
sition and from the effects related to the reevaluation of the
commercial feasibility of particle therapy for general patient
treatment, following the Healthcare Sector’s decision to shift
the focus of certain particle therapy projects primarily to
research.
With our ability to generate positive operating cash flows, our
total liquidity of €. billion and our €. billion in un-
drawn lines of credit and given our credit ratings at year-end
we believe that we have sufficient flexibility to fund our capital
requirements including scheduled debt service, regular capital
spending, ongoing cash requirements from operating and SFS
financing activities, dividend payments, pension plan funding
and portfolio activities. Also in our opinion, our working capi-
tal is sufficient for the Company ’s present requirements.
Capital expenditures (in millions of €)
Siemens (continuing operations)
FY 2011 2,753
FY 2010 2,576
Industry Sector
FY 2011 688
FY 2010 577
Energy Sector
FY 2011 634
FY 2010 579
Healthcare Sector
FY 2011 487
FY 2010 551 (12)%
9%
19%
7%
Capital expenditure rate (in %)
FY 2011 
FY 2010 88
Target range:  – %