Siemens 2012 Annual Report Download - page 95

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Contents Financial Report
  
. To our Shareholders
.  Letter to our Shareholders
.  Managing Board of Siemens AG
.  Report of the Supervisory Board
.  The Siemens share / Investor relations
. Corporate Governance
.  Corporate Governance Report
.  Corporate Governance statement pursuant to
Section 289a of the German Commercial Code
(part of the Combined Management Report)
.  Compliance Report
.  Compensation Report
(part of the Combined Management Report)
.  Takeover-relevant information (pursuant to Sections 289 para. 4 and
315 para. 4 of the German Commercial Code) and explanatory report
(part of the Combined Management Report)
. Combined Management Report
.  Business and economic environment
.  Financial performance measures
.  Results of operations
.  Financial position
.  Net assets position
.  Overall assessment of the economic position
.  Subsequent events
.  Sustainability
.  Report on expected developments and
associated material opportunities and risks
.  Compensation Report, Corporate Governance statement
pursuant to Section 289a of the German Commercial Code,
Takeover-relevant information and explanatory report
.  Siemens AG (Discussion on basis of German Commercial Code)
.  Notes and forward-looking statements
. Consolidated Financial Statements
.  Consolidated Statements of Income
.  Consolidated Statements of Comprehensive Income
.  Consolidated Statements of Financial Position
.  Consolidated Statements of Cash Flow
.  Consolidated Statements of Changes in Equity
.  Notes to Consolidated Financial Statements
.  Supervisory Board and Managing Board
. Additional Information
.  Responsibility statement
.  Independent Auditors’ Report
.  Statement of the Managing Board
.  Five-year summary
.  Glossary
.  Index
.  Further information and information resources
.  Financial calendar
.  Company structure 5
We aren’t anticipating any substantial boost from economic developments worldwide – at least not
in fiscal 2013. For this reason, it’s all the more important that we ourselves take effective action to
enhance our productivity, maintain the strong financial basis that’s always been our hallmark and
better adapt to the challenges of our markets and the global economy.
And that’s why we’ve launched Siemens 2014, a Company-wide program that will help us recapture a
leading
competitive position within the next two years and thus continue to pursue our One Siemens
targets. Siemens 2014 will strengthen the One Siemens system, drive its implementation and reinforce
our strategy for achieving profitable growth and generating annual revenue of up to €100 billion. It
will also keep us on the same track for success that we’ve followed in recent years and that enabled us
to achieve record results in fiscal 2011.
Our goal is to raise our total Sectors profit from the latest figure of 9.5% to 12% by increasing our gross
productivity by about €6 billion.
To help us reach these targets, Siemens 2014 will apply five levers:
> First, we want to cut costs. To this end, we’re optimizing our procurement operations, improving
our global capacities and activities and enhancing the quality and efficiency of our processes and
project management.
> Second, we want to continuously strengthen our core business activities by, among other things,
making targeted acquisitions in key areas and scrutinizing our less profitable businesses to ensure
that they don’t burden our long-term performance.
> Third, we want to refine our sales setup and optimize our local market access worldwide while mak-
ing our organization more flexible and adjusting operations to regional conditions and potential.
> Fourth, we want to simplify our internal processes and regulations in order to provide our business
units with greater leeway for independent entrepreneurial action and partnering with customers.
For example, we’re substantially reducing the number of Company- and Sector-wide regulations for
our global and regional businesses.
> And fifth, we’re streamlining our global support infrastructure by eliminating redundant functions
and duplicate processes.
Our capital – Trust
The measures we’ve defined have been very carefully considered. We’ve made no secret of our Company ’s
weaknesses, and we’ve set transparent goals. To boost our competitiveness, we’ve assigned clear
responsibilities and taken steps to ensure that Siemens 2014 will be rigorously executed. Some meas-
ures have already been taken. For example, we’ve decided to tighten the focus of our portfolio
in the area of renewable energies, to exit from the water technologies business, which is highly frag-
mented by region, and to reinforce our market position in the area of vertical IT through the purchase
of LMS International NV, a leading supplier of industry software for lifecycle management. As these
moves demonstrate, the new Company-wide program is already having an impact and strengthening
the trust that our customers, the capital markets and you, our shareholders, have placed in us.
Over the next two years, we’ll keep you regularly informed of the steps we’re taking to implement it.