Siemens 2011 Annual Report Download - page 250

6 A. To our shareholders
23 B. Corporate Governance 51 C. Combined management’s discussion and analysis
52 C. Business and operating environment
80 C. Fiscal  – Financial summary
83 C. Results of operations
101 C. Financial position
114 C. Net assets position
117 C. Overall assessment of the economic position
118 C. Report on post-balance sheet date events
119 C. Report on expected developments and
associated material opportunities and risks
135 C. Information required pursuant to Section  ()
and Section  () of the German Commercial
Code (HGB) and explanatory report

C.. Report on
post-balance sheet date events
In November , NSN announced its strategy to focus its
business activities on mobile broadband and services and to
initiate restructuring measures aimed at reducing operating
expenses and production overheads. These restructuring
measures include plans to reduce NSN’s global workforce by
approximately ,. This may affect the carrying amount of
our investment.
C.. Risks and opportunities
The business development of Siemens AG is fundamentally
subject to the same risks and opportunities as the Siemens
Group. Siemens AG generally participates in the risks of its eq-
uity investments and subsidiaries in line with its percentage
of each holding. For additional information see C.. Risks
and C.. Opportunities.
As the parent company of the Siemens Group, Siemens AG is
integrated into the group-wide risk management system. For
additional information see C.. Risk management.
The description of the internal control system for Siemens AG
required by Section  () HGB is included in C. Informa-
tion required pursuant to Section  () and Section  ()
no.  of the German Commercial Code (HGB) and explanatory
report.
C.. Outlook
As the parent company of the Siemens Group, we expect to
participate in the moderate organic revenue growth which the
Group anticipates in coming periods. Our expectation is based
in part on our new orders in fiscal  as reported above,
which were approximately €. billion higher than revenue.
We expect that earnings development for Siemens AG in fiscal
 will be influenced significantly by profit impacts related
to repositioning activities in certain healthcare businesses,
and also by expected ongoing pricing pressure and increasing
operating expenses across a number of businesses. Further-
more, earnings development in fiscal years  and  de-
pends to a significant degree on market conditions for the
Siemens Group’s industrial automation business and parts of
its drive technologies business, which are highly sensitive to
short-term changes in the economic environment. Additional-
ly, in the next two years we expect that income from invest-
ments will significantly influence the profit of Siemens AG.
As part of One Siemens, we established a dividend policy of
proposing an annual dividend representing % to % of net
income of the Siemens Group (as presented in D. Consoli-
dated Financial Statements), which for these purposes we ad-
just to exclude selected exceptional non-cash effects. In fiscal
 and fiscal  we expect to generate sufficient net in-
come at Siemens AG – supplemented with retained earnings
if necessary – to continue implementing this policy.
For information regarding the expected development of the
global economy and the markets served by our Sectors, and
regarding the assumptions underlying expected development
of the Siemens Group, see C.. Report on expected develop-
ments.