Siemens 2011 Annual Report Download - page 217

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)

In fiscal , we achieved or exceeded the targets set a year
earlier as well as those in the updated outlook given in our In-
terim Report for the second quarter of fiscal . We main-
tained our profitable growth momentum and further focused
our business portfolio in alignment with our long-term strate-
gy. Both orders and revenue grew in all Sectors, particularly in
Industry and Energy and within all reporting regions, and by
the year’s end many of our businesses saw volumes returning
to or exceeding their peak levels before the downturn. Strong
execution in the Sectors throughout the year took Total Sec-
tors profit up substantially compared to fiscal .
This was
particularly evident in the Industry Sector’s short-cycle busi-
nesses and the Fossil Power Generation Division within the
Energy Sector. In combination with net gains related to portfo-
lio transactions, this lifted income from continuing operations
well above prior-year level. These effects contributed strongly
to a ROCE (adjusted) above our target range. All of our Sectors
were in their respective adjusted EBITDA margin corridors and
SFS exceeded its target margin range for return on equity.
We concluded or initiated several portfolio activities. During
the fiscal year we exited our nuclear power joint venture Are-
va, sold our IT services business, Siemens IT Solutions and
Services, to AtoS and announced our plans to publicly list our
lighting business, OSRAM AG, in fiscal . While the sale of
our share in Areva resulted in a significant gain, partly offset
by the outcome of an adverse arbitration proceeding, the di-
vestment of Siemens IT Solutions and Services to AtoS led to a
significant loss which is reported within discontinued opera-
tions. Also in fiscal , we reevaluated the commercial feasi-
bility of the Healthcare Sector’s particle therapy for general
patient treatment, and decided to shift the focus of certain
particle therapy projects primarily to research, which bur-
dened profit. Siemens completed an assessment of the
growth prospects and long-term market development for the
Energy Sector’s concentrated solar power business, which,
following the completion of the impairment test, led to im-
pairment charges.
In fiscal , we prepared a realignment of selected business
activities in order to further sharpen the focus in our Sectors
Industry and Energy while creating a new Sector to focus on
growth opportunities associated with urbanization and de-
mand for infrastructure solutions. These strategic changes
took effect with the beginning of fiscal .
Based on our strong operating results in fiscal  and our
strong portfolio, we believe that Siemens is well positioned
for moderate organic revenue growth in fiscal .
Our commitment to a strong financial position remained
steady in fiscal , including a conservative capital struc-
ture, healthy debt maturity profile and a strong cash position.
This in turn led to a ratio of adjusted industrial net debt to ad-
justed EBITDA below our medium-term capital structure tar-
get. Our equity ratio excluding non-controlling interests in-
creased to %. The Siemens Managing Board, in agreement
with the Supervisory Board, proposes a dividend of €. per
share, up from €. per share a year earlier.
C. Overall assessment of the economic position