Siemens 2015 Annual Report Download - page 23

Download and view the complete annual report

Please find page 23 of the 2015 Siemens annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 140

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

Combined Management Report 
from the sale of our hearing aid business and the above-men-
tioned gain from the sale of our stake in BSH. Basic EPS from
net income also benefited from execution of our share buyback
program. Overall, our continuous efforts to increase our pro-
ductivity contributed positively. Our total cost productivity im-
provement reached the upper end of our target for fiscal ,
which was to increase total cost productivity by  % to  %.
ROCE for continuing and discontinued operations increased to
. % in fiscal , up from . % in the prior fiscal year. We
thus reached the upper end of our forecast for fiscal ,
which was to achieve a ROCE for continuing and discontinued
operations in our target range of  % to  %. The main driver of
the improvement was higher net income, which more than off-
set an increase in average capital employed.
We evaluate our capital structure using the ratio of industrial
net debt to EBITDA. For fiscal , this ratio was .. We thus
achieved our forecast, which was to achieve a ratio below .
but clearly above the fiscal  level of ..
Free cash flow from continuing and discontinued operations
for fiscal  came in at € . billion,  % lower than in the
prior fiscal year.
We intend to continue providing an attractive return to share-
holders. As in the past, we intend to fund the dividend payout
from Free cash flow. The Siemens Managing Board, in agree-
ment with the Supervisory Board, proposes a dividend of € .
per share, up from € . a year earlier.
A. Subsequent events
In November , Siemens announced the extension of its ex-
isting seven-year IT outsourcing contract with Atos SE (AtoS)
through December , with minimum committed volumes
increasing by € . billion to € . billion. Furthermore,
Siemens announced the extension of its current lock-up share-
holder commitment in AtoS through September .
Also in November , Siemens announced the sale of its  %
stake in Unify to AtoS. While ownership of the Unify stake has
adversely affected Siemens’ financial results in fiscal  and
prior fiscal years, the transaction is not expected to result in a
material effect. Closing of the transaction, which is subject to
the approvals of the regulatory and antitrust authorities, is
expected in the second quarter of fiscal .