Siemens 2011 Annual Report Download - page 251

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)

New orders and order backlog; adjusted or organic growth rates of revenue and new orders; book-to-bill ratio; Total Sectors
profit; return on equity (after tax), or ROE (after tax); return on capital employed (adjusted), or ROCE (adjusted); Free cash flow
or FCF; cash conversion rate, or CCR; adjusted EBITDA; adjusted EBIT; adjusted EBITDA margins, earnings effects from purchase
price allocation, or PPA effects; net debt and adjusted industrial net debt are or may be non-GAAP financial measures. These
supplemental financial measures should not be viewed in isolation as alternatives to measures of Siemens’ financial condition,
results of operations or cash flows as presented in accordance with IFRS in its Consolidated Financial Statements. Other compa-
nies that report or describe similarly titled financial measures may calculate them differently. Definitions of these supplemental
financial measures, a discussion of the most directly comparable IFRS financial measures, information regarding the usefulness
of Siemens’ supplemental financial measures, the limitations associated with these measures and reconciliations to the most
comparable IFRS financial measures are available on Siemens’ Investor Relations website at www.siemens.com/nonGAAP. For
additional information, see supplemental financial measures and the related discussion in Siemens’ annual report on Form -F
for fiscal , which can be found on our Investor Relations website or via the EDGAR system on the website of the United
States Securities and Exchange Commission.
This document contains forward-looking statements and information – that is, statements related to future, not past, events.
These statements may be identified by words such as “expects,” “looks forward to,” “anticipates,” “intends,” “plans,” “believes,”
“seeks,” “estimates,” “will,” “project” or words of similar meaning. Such statements are based on the current expectations and
certain assumptions of Siemens’ management, and are, therefore, subject to certain risks and uncertainties. A variety of factors,
many of which are beyond Siemens’ control, affect Siemens’ operations, performance, business strategy and results and could
cause the actual results, performance or achievements of Siemens to be materially different from any future results, perfor-
mance or achievements that may be expressed or implied by such forward-looking statements. In particular, Siemens is strong-
ly affected by changes in general economic and business conditions as these directly impact its processes, customers and sup-
pliers. This may negatively impact our revenue development and the realization of greater capacity utilization as a result of
growth. Yet due to their diversity, not all of Siemens’ businesses are equally affected by changes in economic conditions; con-
siderable differences exist in the timing and magnitude of the effects of such changes. This effect is amplified by the fact that,
as a global company, Siemens is active in countries with economies that vary widely in terms of growth rate. Uncertainties arise
from, among other things, the risk of customers delaying the conversion of recognized orders into revenue or cancelling recog-
nized orders, of prices declining as a result of adverse market conditions by more than is currently anticipated by Siemens’ man-
agement or of functional costs increasing in anticipation of growth that is not realized as expected. Other factors that may
cause Siemens’ results to deviate from expectations include developments in the financial markets, including fluctuations in
interest and exchange rates (in particular in relation to the US$, British £ and the currencies of emerging markets such as China,
India and Brazil), in commodity and equity prices, in debt prices (credit spreads) and in the value of financial assets generally.
Any changes in interest rates or other assumptions used in calculating obligations for pension plans and similar commitments
may impact Siemens’ defined benefit obligations and the anticipated performance of pension plan assets resulting in unexpect-
ed changes in the funded status of Siemens’ pension and other post-employment benefit plans. Any increase in market vola-
tility, deterioration in the capital markets, decline in the conditions for the credit business, uncertainty related to the subprime,
financial market and liquidity crises, including the sovereign debt crisis in the Eurozone, or fluctuations in the future financial
performance of the major industries served by Siemens may have unexpected effects on Siemens’ results. Furthermore,
Siemens faces risks and uncertainties in connection with: disposing of business activities, certain strategic reorientation mea-
sures, including reorganization measures relating to its segments; the performance of its equity interests and strategic allianc-
es; the challenge of integrating major acquisitions, implementing joint ventures and other significant portfolio measures;
C. Notes and forward-looking statements