Siemens 2014 Annual Report Download - page 189

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.. Capital structure
Sustainable revenue and profit development is supported by a
healthy capital structure. A key consideration within the frame-
work of One Siemens is to maintain ready access to the capital
markets through various debt products and preserve our ability
to repay and service our debt obligations over time. Our pri-
mary measure for managing and controlling our capital struc-
ture is the ratio of industrial net debt to adjusted EBITDA.
This financial measure indicates the approximate amount of
time in years that would be needed to cover industrial net debt
through income from continuing operations, without taking
into account interest, taxes, depreciation and amortization. In
fiscal , we aimed to achieve a ratio in the range of . to
.. For more information regarding adjusted EBITDA and for an
analysis of our capital structure ratio, see C.. RECONCILIA-
TION TO ADJUSTED EBITDA and C.. CAPITAL STRUCTURE.
Capital structure (continuing operations)
Industrial net debt
Adjusted EBITDA
FY  0.15
FY  0.35
Target range: . – .
Beginning with fiscal , we intend to achieve a ratio of up to
., and thereby maintain our healthy capital structure.
C.. Dividend and share buybacks
We intend to continue providing an attractive return to share-
holders. In fiscal , we intended to propose a dividend pay-
out which, combined with outlays during the fiscal year for
publicly announced share buybacks, results in a sum represent-
ing  % to  % of net income, which for this purpose we may
adjust to exclude selected exceptional non-cash effects.
At the Annual Shareholders’ Meeting, the Managing Board, in
agreement with the Supervisory Board, will submit the follow-
ing proposal to allocate the unappropriated net income of
Siemens AG for the fiscal year ended September , : to
distribute a dividend of € . on each share of no-par value
entitled to the dividend for fiscal year  existing at the date
of the Annual Shareholders’ Meeting, with the remaining
amount to be carried forward. Payment of the proposed divi-
dend is contingent upon approval by Siemens shareholders
at the Annual Shareholders’ Meeting on January , . The
prior- year dividend was € . per share.
The proposed dividend of € . per share for fiscal  rep-
resents a total payout of € . billion based on the estimated
number of shares entitled to dividend at the date of the Annual
Shareholders’ Meeting. Based on net income of € . billion
for fiscal , the dividend payout percentage is  %. The per-
centage for fiscal  was  %, based on a total dividend pay-
out of € . billion and a net income of € . billion.
Dividend payout percentage
Total dividend payout
× 100%
Net income
FY  49%
FY  57%
In November , we announced a share buyback of up to
€  billion ending latest on October , . In May , we
started to repurchase shares. Through the end of fiscal ,
outlays for our publicly announced share buybacks (excluding
incidental transaction charges) totaled € . billion and repre-
sent  % of net income.
The percentage for fiscal  was  % with outlays for share
buybacks in the amount of € . billion.
Beginning with fiscal , we intend to realize a dividend pay-
out range, without the effect of share buybacks, of  % to  %
of net income, which for this purpose we may adjust to exclude
selected exceptional non-cash effects. As in the past, we intend
to fund the dividend payout from Free cash flow.