Siemens 2012 Annual Report Download - page 176

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

inflows for the prior-year period also included higher proceeds
from real estate disposals at SRE. Acquisitions, net of cash ac-
quired, increased to €. billion from € million in the pri-
or-year period, comprising several acquisitions of entities
within the Sectors to optimize our business portfolio, includ-
ing in the current period the acquisition of the Connectors and
Measurements Division of Expro Holdings UK  Ltd. in the En-
ergy Sector as mentioned earlier. The aggregate consideration
of this acquisition, net of cash acquired, amounted to €
million. In the current period, cash outflows for the purchase
of investments of € million included the second install-
ment payment in connection with our equity investment in
ASEA A/S, a supplier of installation services for the construc-
tion of offshore wind-farms. The equity investment is held by
the Energy Sector. For comparison, purchase of investments of
€ million in the prior-year period included cash outflows re-
lating mainly to € million in new equity, which we provid-
ed to NSN in exchange for preferred shares in order to further
strengthen NSN’s financial position and the first installment
payment for our equity investment in ASEA A/S.
Discontinued operations used net cash of € million in fiscal
, compared to net cash used of €. billion in the prior-
year period. These lower cash outflows related primarily to
OSRAM, which a year earlier included payments related to the
acquisition of Siteco. While both periods included cash out-
flows of a mid triple-digit million € amount relating to Siemens
IT Solutions and Services, these cash outflows were higher in
fiscal .
Free cash flow from continuing operations decreased year-
over-year due primarily to cash flows from operating activities
as discussed above.
On a sequential basis Free cash flow during fiscal  and fis-
cal  developed as follows:
   (   ) 
Q4 12 4,343
Q3 12 918
Q2 12 500
Q1 12 (971)
Q4 11 3,462
Q3 11 1,028
Q2 11 393
Q1 11 1,035
1 Continuing operations.
Cash flows from financing activities – Continuing opera-
tions used net cash of €. billion in fiscal , compared to
net cash used of €. billion in fiscal . The decrease in
net cash outflows in fiscal  was due primarily to the pro-
ceeds from the issuance of long-term debt of €. billion, in-
cluding the issuance of US$. billion bonds with warrant
units in February  as well as the issuance of €. billion
and £. billion in fixed-rate instruments in four tranches in
September . These cash inflows were partly offset by the
repayment of long-term debt of €. billion relating to the
redemption of €. billion in .%-fixed-rate-instruments,
€. billion in floating rate assignable loans, US$. billion in
floating rate notes and US$. billion in .% notes. In fiscal
 we recorded also cash outflows of €. billion relating
to the repurchase of ,, treasury shares at a weighted
average share price of €.. For comparison, the prior-year
period included the redemption of €. billion in .% bonds,
a payment of €. billion related to the binding offer to pur-
chase additional shares in order to increase our stake in our
publicly listed Indian subsidiary Siemens Ltd. and higher cash
outflows for financing discontinued operations. Both periods
included cash outflows for dividends, which were €. bil-
lion (for fiscal ) in fiscal  compared to €. billion
(for fiscal ) in fiscal .
.. Capital resources and requirements
Our capital resources consist of a variety of short- and long-
term financial instruments including, but not limited to, loans
from financial institutions, commercial paper, notes and bonds
as well as credit facilities. In addition to cash and cash equiva-
lents and to available-for-sale financial assets, liquid resources
consist of future cash flows from operating activities.
Our capital requirements include, among others, scheduled
debt service, regular capital spending, ongoing cash require-
ments from operating and SFS financing activities, including
higher cash outflows related to the growth strategy of SFS, div-
idend payments, pension plan funding, portfolio activities,
and cash outflows in connection with restructuring measures.
Total debt comprises our Notes and bonds, Loans from banks,
Obligations under finance leases and Other financial indebted-
ness such as commercial paper. Total debt comprises Short-
term debt and current maturities of long-term debt as well as
Long-term debt, as stated on the Consolidated Statements of
Financial Position. Total liquidity refers to the liquid financial
assets we had available at the respective end of the reporting
period to fund our business operations and pay for near-term
obligations. Total liquidity comprises Cash and cash equiva-