Siemens 2012 Annual Report Download - page 155

135 D. Consolidated Financial Statements
239 E. Additional Information
130 C. Siemens AG (Discussion on basis of
German Commercial Code)
134 C. Notes and forward-looking statements
129 C. Compensation Report, Corporate Governance
statement pursuant to Section a of the
German Commercial Code, Takeover-relevant
information and explanatory report

the fiscal years  and  was .% and .%, respective-
ly. Siemens’ weighted average cost of capital (WACC) is cur-
rently .%.
Our financial indicator for measuring capital efficiency at
Financial Services (SFS) is return on equity after tax, or ROE
(after tax), in line with common practice in the financial ser-
vices industry. We define ROE (after tax) as SFS’ profit after tax,
divided by SFS’ average allocated equity. For purposes of calcu-
lating ROE (after tax), the relevant income tax is calculated on
a simplified basis, by applying an assumed % flat tax rate to
SFS’ profit, excluding income (loss) from investments account-
ed for using the equity method, net, which is basically net of
tax already, and tax-free income components and other com-
ponents which have already been taxed or are generally tax-
free. Our goal is to achieve ROE (after tax) of % to % at SFS.
Our goal is to achieve margins comparable to the best compet-
itors within our industries throughout the entire business
cycle. We therefore seek to maintain or improve the profitabili-
ty of our businesses as appropriate. Our measure in this regard
is adjusted EBITDA margins, defined as the ratio of adjusted
EBITDA (as presented in ..   
 ( )) to revenue. We have defined
adjusted EBITDA margin ranges for the respective industries of
our four Sectors. Adjusted EBITDA target margin ranges for the
Sectors, an
d their performance in fiscal , are shown in the
chart below. The adjusted EBITDA margin for Energy was .%,
compared to .% a year earlier. Healthcare’s adjusted EBITDA
margin was .%, up from .% in fiscal . The adjusted
EBITDA margin for our Industry Sector was .%, down from
.% in the prior year. The adjusted EBITDA margin for Infra-
structure & Cities was .%, compared to .% a year earlier.
.. Capital structure
Sustainable revenue and profit development can be achieved
only on the basis of a healthy capital structure. A key consider-
ation for us in this regard is maintaining ready access to the
capital markets through various debt products and preserv-
ing our ability to repay and service our debt obligations over
time. Therefore, we use the ratio of adjusted industrial net
debt to adjusted EBITDA for optimizing our capital structure.
For information on this calculation and its components see
..  . Our goal is to achieve a ratio in the
range of . – ..
.. Dividend
At the Annual Shareholders’ Meeting, the Managing Board, in
agreement with the Supervisory Board, will submit the follow-
ing proposal to allocate the unappropriated net income of
Siemens AG for the fiscal year ended September , : to
distribute a dividend of €. on each no-par value share enti-
tled to the dividend for fiscal year  existing at the date of
the Annual Shareholders’ Meeting, with the remaining amount
to be carried forward. Payment of the proposed dividend is
    () ()
( )
FY  17.0%
FY  25.3%
Target range:  – %
Income from continuing operations before interest after tax
× 100%
Average capital employed
   () ( )
FY  21.9%
FY  22.6%
Target range:  – %
SFS’ profit after tax
× 100%
SFS’ average allocated equity
    
Margin Target range
Energy 9.3% 10 – 15%
Healthcare 18.5% 15 – 20%
Industry 14.9% 11 – 17%
Infrastructure & Cities 7.5% 8 – 12%
Adjusted EBITDA margins of respective markets throughout business cycle.
  ( )
FY  0.24
FY  (0.14)
Target range: . – .
Adjusted industrial net debt
Adjusted EBITDA