Siemens 2012 Annual Report Download - page 152

1 A. To our Shareholders
21 B. Corporate Governance 49 C. Combined Management Report
50 C. Business and economic environment
64 C. Financial performance measures
69 C. Results of operations
82 C. Financial position
93 C. Net assets position
95 C. Overall assessment of the economic position
96 C. Subsequent events
97 C. Sustainability
111 C. Report on expected developments and
associated material opportunities and risks

such as in China and Russia, or come to a halt, as in India. In
the U.S. market, which is particularly significant for our Health-
care Sector, growth in investments is expected to increase
slightly in  compared to the prior year.
The Industry Sector is influenced by the development in some
of the markets mentioned for the Energy Sector, including by
the oil and gas markets and the chemical industry. In other
markets significant for the Industry Sector, investments in the
automotive industry are expected to grow by around % in
, down from growth in investments of around % a year
earlier. This change includes all major countries, which are
showing either significantly slower growth or declining invest-
ments year-over-year. These factors are particularly evident in
Europe. Investment growth is declining also in a number of
emerging markets, where investments were recently driven by
strong demand for vehicles. Notable examples include China,
which is experiencing significantly lower growth, and India,
where investments are declining year-over-year following
strong expansion a year earlier. Against this trend, growth in
investments year-over-year is expected to accelerate in Japan.
Even in the food and beverage industry, which is usually less
susceptible to fluctuations in the economy, growth in invest-
ments is expected to decline significantly in  to around
%, down from around % a year earlier. This is due to signifi-
cant declines in investments in many European countries, es-
pecially those affected by high unemployment and low con-
sumer confidence. Investments are also expected to decline in
a number of emerging markets as their populations are affect-
ed by rising food prices. Investments in the minerals sector are
expected to grow by around % in , sharply lower than
growth of around % a year earlier. Within this sector, growth
in investments in the largest industry, mining, is expected to
contract most significantly: from around % in  to around
% in . Among major countries in industrial mining, this
decline in growth includes sharply lower growth in China and
Canada and a reduction in investments in India year-over-year,
while growth in investments in Australia is expected to come
down only slightly. Investments in the machine building in-
dustry are expected to grow by around % year-over-year in
, compared to around % a year earlier. Growth in invest-
ments in the last few years was driven by exceptionally rapid
expansion in China, which is by far the world’s most important
investor in machine building. In contrast, growth in China is
expected to slow markedly in  as demand weakens in the
country ’s manufacturing sector. For the pharmaceutical indus-
try, investment growth is estimated to decline to around % in
, after around % in . Within these numbers, the larg-
est investors, China and Japan, are expected to continue to in-
crease their investments in  but at a slower pace than in
. Against this trend, the U.S. shows increasing growth in
investments year-over-year. Investments in the pulp and paper
sector are expected to grow by around % in , following in-
vestment growth of around % a year earlier. The develop-
ment within the largest markets is expected to be mixed. While
investment growth in China is slowing significantly and
growth in Japan is nearly coming to a halt, investments in the
U.S. are growing moderately following a decline in the prior
year. In the metals industry, investments in  are expected
to grow by around % compared to around % a year earlier.
Growth in China is expected to slow to single digits, and India
is forecast to reduce its investments following a substantial in-
crease a year earlier. Investment growth in Japan and South
Korea is expected to decline less significantly year-over-year.
Investments in water and wastewater utilities are expected to
grow by around % in  compared to around % in .
While investment growth in China is expected to be higher in
 compared to the prior year, and the U.S. is expected to in-
crease investments in  following a decline a year earlier,
many other major countries, especially in Europe, are forecast
to reduce their investments in .
The Infrastructure & Cities Sector is influenced by develop-
ments in a number of markets mentioned above for the Sec-
tors Energy, Healthcare and Industry, including power utilities,
oil and gas, healthcare and pharmaceuticals. In other markets
important to the Sector, investments in both, the transporta-
tion infrastructure and transportation services markets, are ex-
pected to grow by around % in . The pace of growth in
the prior year was around % in transportation infrastructure,
faster than growth of around % in transportation services. For
transportation infrastructure, investments are expected to
slow in the large Chinese market and shrink in some of the
larger European countries, including France and Germany. The
U.S. and Russia are expected to keep investment growth near
the prior-year level. Overall growth in transportation service is
held back by declining investments in Europe, even as China is
expected to clearly increase investments in  following a
decline in investments a year earlier. Growth in investments in
the public, research and education sector is expected to de-
cline to around % in , down from around % in .
While the large majority of European countries and also a
number of emerging countries including Brazil and India are
expected to reduce investments in  compared to , the
U.S. is forecast to expand its public investments year-over-year.
For construction and real estate, investments are expected to
grow around % in  compared to the prior year. A year ear-
lier, growth in investments was around %. While these mar-
kets are depressed in Europe, growth in the U.S. is accelerat-
ing, as these industries are benefiting from low mortgage rates
and improved consumer confidence. In the post and logistics
sector, investment growth in  is forecast to slow to around
% year-over-year, compared to around % a year earlier.
While growth in fiscal  is particularly burdened by shrink-