Siemens 2014 Annual Report Download - page 187

247 D. Consolidated Financial Statements
337 E. Additional Information
213 C. Overall assessment of the economic position
214 C. Subsequent events
215 C. Sustainability and citizenship
225 C. Report on expected developments and
associated material opportunities and risks
242 C. Compensation Report and legal disclosures
242 C. Siemens AG (Discussion on basis
of German Commercial Code)

C.. Overview
Within One Siemens, we have established a financial frame-
work – for revenue growth, for profitability and capital effi-
ciency, for our capital structure, and for our dividend policy.
C.. Revenue growth
Within the framework of One Siemens, we aim to grow our rev-
enue faster than the average weighted revenue growth of our
most relevant competitors. In fiscal , we calculated our rev-
enue growth for this comparison using actual revenue as pre-
sented in the Consolidated Financial Statements. Our primary
measure for managing and controlling our revenue growth is
comparable growth, which excludes currency translation and
portfolio effects. We provide figures for both comparable and
actual revenue growth in this Annual Report, within C..
ORDERS AND REVENUE BY REGION.
Revenue growth
Revenue current period
– 1 × 100 %
Revenue prior-year period
Actual
FY  (2)%
FY  (2)%
Comparable 
FY  1%
FY  (1)%
1 Excluding currency translation and portfolio effects.
C.. Profitability and capital efficiency
Within the framework of One Siemens, we aim to achieve mar-
gins through the entire business cycle that are comparable to
those of our relevant competitors. For purposes of this compar-
ison in fiscal , we used defined adjusted EBITDA margin
ranges, which are based on the results of the respective rele-
vant competitors of our four Sectors. Information regarding
the calculation of adjusted EBITDA is presented in C..
RECONCILIATION TO ADJUSTED EBITDA.
Adjusted EBITDA margins 
Margin Target range
Energy
FY  8.1% 10 – 15%
FY  9.9%
Healthcare
FY  20.5% 15 – 20%
FY  20.7%
Industry
FY  16.4% 11 – 17%
FY  13.1%
Infrastructure & Cities
FY  9.4% 8 – 12%
FY  3.7%
1 Adjusted EBITDA margins of respective markets through business cycle.
Target range
In line with common practice in the financial services busi-
ness, our financial indicator for measuring capital efficiency at
Financial Services (SFS) is return on equity after tax, or ROE
(after tax). For information on the calculation of ROE (after
tax) and its components, see C... RETURN ON EQUITY (ROE)
( AFTER TAX).
Return on equity (ROE) (after tax)
SFS’ profit after tax
× 100%
SFS’ average allocated equity
FY  18.1%
FY  17.1%
Target range:  – %
For purposes of managing and controlling profitability at the
Group level, we use net income as our primary measure. This
measure is the main driver of basic earnings per share (EPS)
from net income, which we use for communicating with
the capital markets. For an analysis of this measure, refer to
C.. INCOME.
C. Financial performance system