Siemens 2014 Annual Report Download - page 180

108 A. To our Shareholders 131 B. Corporate Governance 171 C. Combined Management Report
172 C. Business and economic environment
187 C. Financial performance system
193 C. Results of operations
205 C. Financial position
210 C. Net assets position

. % in  and not by . % as expected in October ,
global value added in manufacturing grew by only . % and
not by the expected . %, hurting Siemens’ industrial and
energy- related businesses in particular.
From a geographical perspective, the region Europe, C.I.S.,
Africa, Middle East was the only of our three reporting regions
delivering faster GDP growth in  than in . However,
with . % the level of growth is still lower than in the other re-
porting regions. In addition, last year’s expectation was . per-
centage points higher. The main reasons for the disappointing
performance are the still very sluggish development in Europe,
in particular the Euro zone, and recessions in both Russia and
Ukraine. In Germany, the fiscal year started promisingly with
sentiment indicators continuously improving, followed by a
strong first quarter of calendar  (which was partly due to
mild winter weather). However, in the course of year  the
uncertainties caused by the geopolitical conflicts increasingly
weighed on economic activity and slowed down GDP growth
for the full year.
In the Americas region, growth slowed down slightly to . %.
A year earlier, the expectation was for growth of . %. The
harsh winter mentioned above, which reduced consumption
and factory output in some areas of the U. S. and Canada, was
one reason for the slowdown. In addition, the economies of
most Latin American countries grew substantially slower than
estimated last year. For example GDP growth for Brazil was
marked down from . % to a negative . % from October 
to October . The pattern was similar for Argentina, Chile,
Venezuela and Peru. One important driver for this weak perfor-
mance was globally weaker commodity markets.
In Asia, Australia, GDP growth for calendar  is estimated
at . %, virtually the same level as in previous years. Compared
to last year’s expectation this is . percentage points lower,
reflecting slower growth in China (. % against  % expected
last year), which is largely explained by continued downturns
in real estate and manufacturing investment. India suffered
from investment shifts before the general election that took
place from April to May .
Real GDP growth per region (change in % compared to prior year) 
World Europe, C.I.S.,
Africa,
Middle East
Americas Asia,
Australia





  
1 Source: Siemens AG, based on an IHS Global Insight as of October , .
Growth rates provided by calendar year.
2 Estimate for calendar year .
3 Commonwealth of Independent States.
The partly estimated figures presented here for GDP, fixed
invest ments and manufacturing value added are calculated by
Siemens based on an IHS Global Insight report dated Octo-
ber , .
Our businesses are dependent on the development of raw
material prices. Key materials to which we have significant cost
exposure include copper, various grades and formats of steel,
and aluminum. In addition, within stainless steel we have
exposure related to nickel and ferro-alloy materials.
The average monthly price of copper (denominated in € per
metric ton) for September  was  % lower than the average
monthly price in September . Prices on a fiscal-year average
2.7
1.6 2.0
4.8
2.6
1.1
2.3
4.9
World real GDP growth (in % compared to previous period) 
    







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 , .
5.1
4.8
3.7 3.5 2.9
1.8 2.4
1.5
2.5
3.3 3.7 3.2
1.4
2.7 3.1 3.2
2.4 2.5
3.6
2.4
4.4
3.2 2.6 2.6 2.7