Siemens 2015 Annual Report Download - page 11

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Combined Management Report
A.2.5 Dividend
We intend to continue providing an attractive return to our
shareholders. Therefore, we intend to realize a dividend payout
range, of  % to  % of net income, which we may adjust for
this purpose to exclude selected exceptional non-cash effects.
As in the past, we intend to fund the dividend payout from Free
cash flow.
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 : 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. Pay-
ment of the proposed dividend 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  %.
A.2.6 Calculation of return
on capital employed
Calculation of ROCE
Fiscal year
(in millions of €) 2015 2014
Net income 7,380 5,507
Less: Other interest expenses / income, net (662) (606)
Plus: SFS Other interest expenses / income 746 630
Plus: Net interest expenses from
post-employment benefits 263 295
Less: Interest adjustments
(discontinued operations) −1
Less: Taxes on interest adjustments
(tax rate (flat) 30%) (104) (96)
(I) Income before interest after tax 7,623 5,732
(II) Average capital employed 38,833 33,238
(I) / (II) ROCE 19.6% 17.2%
1 Item Other interest expenses / income, net primarily consists of interest relating to
corporate debt, and related hedging activities, as well as interest income on
corporate assets.
Average capital employed for a fiscal year is determined as a
five-point average in capital employed of the respective quar-
ters, starting with the capital employed as of September  of
the previous fiscal year.
Calculation of capital employed
Total equity
Plus: Long-term debt
Plus: Short-term debt and current maturities of long-term debt
Less: Cash and cash equivalents
Less: Current available-for-sale financial assets
Plus: Post-employment benefits
Less: SFS Debt
Less: Fair value hedge accounting adjustment
Plus: Adjustments from assets classified as held for disposal and
liabilities associated with assets classified as held for disposal
Capital employed (continuing and discontinued operations)
Beginning with fiscal , deferred taxes on actuarial gains
and losses within equity will be eliminated in the calculation of
capital employed. By making this adjustment, we treat actuarial
gains and losses consistently in the ROCE calculation.