Siemens 2013 Annual Report Download - page 171

253 D. Consolidated Financial Statements
357 E. Additional Information
245 C. Compensation Report, Corporate Governance
statement pursuant to Section a of the
German Commercial Code, Takeover-relevant
information and explanatory report
246 C. Siemens AG ( Discussion on basis of
German Commercial Code)
250 C. Notes and forward-looking statements

Our strategy comprises what we call our three strategic
directions:
> focusing on innovation-driven growth markets,
> getting closer to our customers, and
> using the power of Siemens.
One Siemens is our framework for sustainable value creation,
with a financial target system for capital-efficient growth and
the goal of continuous improvement relative to the market and
our competitors.
One Siemens defines financial key performance indicators for
revenue growth, for capital efficiency and profitability, and for
the optimization of our capital structure. In addition, we set
hurdle rates that generally need to be considered before we
proceed to make acquisitions. Further, we defined an indicator
targeted at an attractive dividend policy. We believe that these
indicators will play a key role in driving the value of our Com-
pany. For further information, see C. FINANCIAL PERFOR-
MANCE SYSTEM.
To achieve our One Siemens goal of sustainably enhancing the
value of Siemens and exploiting the full potential of our Com-
pany, we have defined three concrete focus areas along each
of the three strategic directions set forth above, which we aim
to address in the years ahead.
In the strategic direction of focusing on innovation-driven
growth markets, our first focus area is to be a pioneer in tech-
nology-driven markets. Here, we intend to concentrate on
markets that are widely expected to have future growth poten-
tial, such as software and IT. Our second focus area is to
strengthen our portfolio. We are actively and systematically
managing our portfolio with the principal aim of having our
businesses achieve or maintain a No.  or No.  position in
their respective markets. To provide a leading environmental
portfolio is our third focus area: Our Environmental Portfolio
increases our Company ’s revenue and makes a significant con-
tribution to climate protection.
In the strategic direction of getting closer to our customers,
one of our focus areas is to grow in emerging markets while
maintaining our position in our established markets. We plan
to offer more products, solutions and services for the rapidly
growing entry-level segments, which are more price-sensitive
and mostly located in emerging markets. A second focus area
is to expand our service business. We believe that the large in-
stalled base of our products and solutions at our clients pro-
vides promising growth opportunities for our service business.
Services play a key role in profitable growth at Siemens and,
in addition, long-term service agreements are less likely to be
impacted by economic fluctuations. To intensify our customer
focus is our third focus area. We believe that customer proxim-
ity and local presence are important factors in being able to
respond quickly to changing market requirements.
In the strategic direction of using the power of Siemens, our
first focus area is to encourage lifelong learning and develop-
ment of our employees. We invest continuously in expanding
the expertise of our people through tailored training and edu-
cation programs. We aim to develop the potential of our
employees worldwide by identifying talent and offering chal-
lenging tasks. To empower our diverse and engaged people
worldwide is our second focus area. We believe that the strong
potential of our employees’ skills, experience and qualifica-
tions can give us a clear competitive advantage in our global
markets. The third focus area is to stand for integrity. On the
basis of our values, we have formulated clear and binding
principles of conduct that cover all aspects of our entrepre-
neurial activities.
Beginning in fiscal , we have been implementing “Siemens
,” a company-wide program supporting the One Siemens
framework for sustainable value creation. The goal of the pro-
gram is to reduce cost, increase competitiveness, and become
faster and less bureaucratic. Our Sectors are continuing to exe-
cute a broad range of measures expected to yield sustainable
productivity gains.
C... SECTOR STRATEGIES
All Sectors share the common target established in our One
Siemens framework: to grow faster than our competitors with-
out compromising profitability in order to reach or maintain a
leading position in their respective markets.
Our Energy Sector is one of the world’s leading suppliers of a
wide range of products, solutions and services in the field of
energy technology. Its know-how, products, solutions and key
components span the entire energy generation and transmis-
sion chain. The Energy Sector focuses its business and portfolio
on large and strongly growing markets such as gas turbines,