Siemens 2013 Annual Report Download - page 166

92 A. To our Shareholders
117 B. Corporate Governance 155 C. Combined Management Report
156 C. Business and economic environment
173 C. Financial performance system
179 C. Results of operations
192 C. Financial position
204 C. Net assets position
207 C. Overall assessment of the economic position
209 C. Subsequent events
210 C. Sustainability
227 C. Report on expected developments and
associated material opportunities and risks

aufsicht), covers engaging in loan and guarantee business as
well as in deposit taking and enables access to the deposit and
refinancing facilities of the Deutsche Bundesbank. In its trans-
actions with Siemens and third parties, SFS observes
international banking industry standards, where applicable.
SFS’ competition mainly includes commercial finance opera-
tions of banks, independent commercial finance companies,
captive finance companies and asset management companies.
International competitors include BNP Paribas Equipment
Finance,
De Lage Landen, General Electric Commercial Finance,
Macquarie, Société Générale Equipment Finance and Sumitomo
Mitsui Financial Group. Particularly in the commercial finance
business, SFS’ competitors are often local financial institutions
and competition therefore varies from country to country.
C.. Economic environment
C... WORLDWIDE ECONOMIC ENVIRONMENT
The beginning of fiscal  was accompanied by a further
slowdown of the global economy. Although European financial
markets calmed in reaction to a statement by the European Cen-
tral Bank (ECB) president committing the ECB to preserve the
Euro, worldwide economic activity decreased thereafter. Global
gross domestic product (GDP) growth hit a trough of less than
% in the fourth quarter of calendar , and this continued
through the first quarter of calendar . Since then, the world
economy has been reaccelerating, due to a slightly stronger U.S.
economy, a recovery in Europe, the stabilization of Chinese
growth (which slowed at the beginning of ), and substan-
tial improvements in Japan. World GDP growth has picked up to
more than % for the rest of . However, because of the
weak start to the year the recent reacceleration of the global
economy does not yet bring annual growth figures back to
prior-
year level. Global GDP growth is expected to slow to .%
in calendar  from .% in calendar . Growth of global
fixed investment spending and value added manufacturing –
both important indicators for Siemens as a producer of capital
goods – is projected to decline to an even greater degree: fixed
investments from .% in  to .% in , and value-added
manufacturing from .% in  to .% in . These global
aggregate figures reflect fairly divergent developments. On the
one hand, most advanced countries’ economies were gaining
momentum in the course of calendar . On the other hand
many emerging countries were losing momentum compared to
higher growth rates in the past.
In most of the larger European economies the recession has
ended. For the first time after six quarters of shrinking GDP,
Euro zone production increased again in the spring quarter of
. In addition, government bond yields receded clearly in
the countries most affected by the sovereign debt crisis, which
reduced their borrowing costs and put government budgets on
a more sustainable path. The crisis in Cyprus – the fifth country
in the European Union to receive an international bail-out –
had only a temporary effect on yields and volatility in financial
markets. As governments kept tightening their budgets, fiscal
austerity remained a drag on the European economy. In addi-
tion, unresolved problems in the banking sector restricted
credit supply to the private sector. This lack of sufficient funds
to finance investments still has the potential to stifle the re-
gion’s recovery. Exchange rate developments involving the
Euro did not support Euro zone exports. In the Middle East
economic recovery continued to be very weak. In Egypt, the
political crisis intensified again and the conflict in Syria con-
tinued to escalate. Oil-exporting countries were affected by
the slowdown of the world economy. GDP growth in these
World real GDP growth (in % compared to previous period)

2009    





– 
– 
– 
– 
Quarterly GDP growth (seasonally adjusted annual rate) Annual GDP growth
Quarterly GDP growth forecast (seasonally adjusted annual rate) Annual GDP growth forecast
1 Siemens AG, based on an IHS Global Insight report as of October , .
2.5
(6.6)
3.6 4.8
2.0 2.4 3.7 2.8 3.4
1.4 2.4 1.8 1.8
3.3 3.0 3.3
4.5 5.0
3.5 3.8
(1.6)
4.4 3.1 2.7 2.4