Siemens 2013 Annual Report Download - page 195

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

short-term rating is “A-1+,” which is the highest rating within
S&P’s short-term rating scale.
The U.S. Securities and Exchange Commission granted Moody ’s
and S&P the status of nationally recognized statistical rating
organizations (NRSROs). Siemens does not have any agree-
ments with other nationally recognized statistical rating orga-
nizations to provide long-term and short-term credit ratings.
We believe that our high credit rating for our long-term debt
applied by Moody ’s and S&P allows us to raise funds in the
capital markets with attractive conditions or to obtain flexible
financing from banks. A high credit rating generally leads to
lower credit spreads and therefore our rating also positively
affects our funding costs. We expect no significant impact on
our funding costs as a consequence of the changed rating
outlook by Moody ’s.
Security ratings are not a recommendation to buy, sell or hold
securities. Credit ratings may be subject to revision or with-
drawal by the rating agencies at any time and each rating
should be evaluated independently of any other rating.
C.. Investing activities
Due to tight control of capital expenditures, additions to intan-
gible assets and property, plant and equipment from continu-
ing operations decreased from €. billion in the prior year
to €. billion in fiscal . Within the Sectors, in fiscal 
we directed significant portions of €. billion of our addi-
tions to intangible assets and property, plant and equipment to
investments for technological innovations, extending our ca-
pacities for designing, manufacturing and marketing new
solutions and for the necessary replacements of these fixed
assets. The majority of the additions in fiscal  took place in
the focus areas of investing activities described below, which
will basically continue to be the focus areas regarding the in-
vesting activities of the Sectors in fiscal . The remaining
portion in fiscal , € million, related mainly to SRE and
its responsibility for uniform and comprehensive management
of Company real estate worldwide.
Energy ’s additions include investments mainly in improving
the Sector’s global footprint to secure organic growth and
competitiveness by improving its cost position and strength-
ening technological innovations. These investments include
further spending in the extension of capacities and facilities
especially for the technology-driven wind power market, par-
ticularly in northern Europe.
Healthcare’s investments are mainly driven by the medical im-
aging and therapy systems and laboratory diagnostics busi-
nesses. Large parts of the additions are related to intangible
assets, such as licenses as well as developing and implement-
ing software and IT solutions.
Industry spends a large portion of its additions to intangible
assets, particularly software, and property, plant and equip-
ment for additional capacities for innovative products, for opti-
mization of its global footprint; and for the replacement of
these fixed assets.
Infrastructure & Cities spends large amounts of its additions to
intangible assets and property, plant and equipment for invest-
ments in innovations at the Power Grid Solutions & Products
Business, particularly including the Low and Medium Voltage
Division, and at the Building Technologies Division. The Sector
also invests significant amounts in the replacement and ex-
pansion of technical equipment in order to improve productivi-
ty and its position in growing market segments, particularly at
the Transportation & Logistics Business.
The changes of additions to intangible assets and property,
plant and equipment from fiscal  to  were as follows:
For information with respect to acquisitions of businesses, see
NOTE  in D. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
Additions to intangible assets and property,
plant and equipment (in millions of €)
Siemens (continuing operations)
FY 2013 1,869 (15)%
FY 2012 2,195
Energy
FY 2013 425 (22)%
FY 2012 547
Healthcare
FY 2013 291 (18)%
FY 2012 354
Industry
FY 2013 395 (5)%
FY 2012 417
Infrastructure & Cities
FY 2013 239 (18)%
FY 2012 290