Siemens 2011 Annual Report Download - page 219

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)

C.. Report on expected
developments
C... WORLDWIDE ECONOMY
According to the predictions of IHS Global Insight, global GDP
will expand moderately in real terms in both  and 
compared with the previous year, and GDP growth will contin-
ue to be markedly faster in emerging markets than in the in-
dustrialized countries. The forecast for global economic growth
in  is .% in terms of GDP. For , IHS Global Insight is
projecting global economic growth of .%. Within these
global growth estimates there are significant differences in
expected growth rates at a regional level. IHS Global Insight
expects GDP in the Europe, C.I.S., Africa, Middle East region to
rise .% in , which is slower than in . The GDP
growth forecast for the region in  is .%. According to
IHS Global Insight, GDP growth in the Americas region will be
.% in , also below the growth rate achieved in . In
, GDP in the region is expected to grow .%. Growth fore-
casts are significantly stronger for the Asia, Australia region.
Here IHS Global Insight predicts a rise in GDP of .% for .
Thus in , Asia, Australia is the only reporting region that
is forecasted to grow faster than in . For , the project-
ed GDP growth in Asia, Australia is .%.
Gross fixed investments in real terms are expected to grow
faster than GDP in both  and . Here IHS Global Insight
is forecasting a global growth rate of .% in . A further
increase of .% in gross fixed investments is expected in
. In both years the Asia, Australia region is expected to
achieve the highest growth in gross fixed investments. Here
IHS Global Insight is predicting an increase of .% in 
and .% in . For the Americas region, IHS Global Insight
forecasts .% growth in gross fixed investments in , fol-
lowed by a sharp upturn reaching .% in . Growth in
gross fixed investments in the Europe, C.I.S., Africa, Middle
East region is expected to reach .% in  and then in-
crease .% in .
Manufacturing value added is also projected to grow faster
than GDP. On a global basis, IHS Global Insight is estimating
.% growth in manufacturing value added in  and .%
growth in . Substantial growth above the global average
is expected in the Asia, Australia region. According to IHS
Global Insight, growth in manufacturing value added in this
region will climb to .% in  before slowing somewhat to
.% in .
The forecasts presented here for gross domestic product are
based on a report from IHS Global Insight dated October ,
. The figures for gross fixed investment and manufactur-
ing value added are based on data from IHS Global Insight tak-
en from a report dated October , . Siemens has not in-
dependently verified this data. Furthermore, our expectations
relating to the overall situation and specific conditions in mar-
kets relevant to Siemens are subject to considerable uncer-
tainties. These uncertainties include economic and financial
changes since the dates of these reports; high rates of unem-
ployment in certain countries; the high level of public debt in
the U.S., Italy, Greece and other European countries; volatility
related to the Chinese economy, particularly including its GDP
growth; and the potential impact of budget austerity mea-
sures by governments around the world. While certain factors
including our financial results in fiscal  and our strong or-
der backlog give us confidence in our view of expected devel-
opments for fiscal , we believe these factors are not suffi-
cient to offset the considerable uncertainties regarding ex-
pected developments in fiscal .
C... MARKET DEVELOPMENT
The forecast for our relevant markets and for our segments is
presented using our organizational structure as of October ,
.
We expect the growth of markets served by our Energy Sector
to slow down compared to the first half of fiscal , to a mid-
single-digit percentage rate in fiscal  and . There is
generally strong demand from emerging markets, which con-
tinue to expand their power infrastructures, and from devel-
oped economies, which need to modernize their aging energy
infrastructures and have committed to implementing environ-
ment-friendly energy policies. The global market develop-
ment, however, depends to a large degree also on resolution
of the sovereign debt crisis in a number of developed coun-
tries. Fossil power generation and in particular the gas turbine
markets will remain on a high level with limited growth poten-
tial. We expect modest development in the market for onshore
wind-farms, while the offshore wind market continues to offer
good growth opportunities. We expect continuing pressure on
prices as additional competitors penetrate these markets.
For the next two fiscal years, we expect the healthcare mar-
kets in which our Healthcare Sector participates to expand
moderately but below our anticipated long-term growth rates
for this industry. Public healthcare systems have been under
cost pressure for some time, and this situation is likely to con-
C. Report on expected developments
and associated material opportunities and risks