WWW.ABSTRACT.XLIBX.INFO
FREE ELECTRONIC LIBRARY - Abstract, dissertation, book
 
<< HOME
CONTACTS



Pages:     | 1 || 3 |

«München, 29. April 2010 Schutzvermerk / Copyright-Vermerk Haftungsausschlusserklärung Dieses Dokument enthält zukunftsgerichtete Aussagen und ...»

-- [ Page 2 ] --

Siemens is making portfolio adjustments for certain transactions, including the carve-outs of Siemens Home and Office Communication Devices GmbH & Co. KG and the Wireless Modules business, as well as for other minor transactions in the Sectors, Cross-Sector Businesses and Centrally managed portfolio activities. For further information regarding major acquisitions and dispositions, see “Notes to Consolidated Financial Statements.” Siemens believes that the presentation of an adjusted or organic growth rate of Revenue and new orders provides useful information to investors because a meaningful analysis of trends in Revenue and new orders from one period to the next requires an understanding of the developments in the operational business, net of the impact of currency translation and portfolio effects. Siemens’ management considers adjusted or organic rates of growth in its management of Siemens’ business. For this reason, Siemens believes that investors’ ability to assess Siemens’ overall performance may be improved by disclosure of this information.

Book-to-bill ratio The book-to-bill ratio measures the relationship between orders received and the amount of products and services shipped and billed. A book-to-bill ratio of above 1 indicates that more orders were received than billed, indicating stronger demand, whereas a book-to-bill ratio of below 1 points to weaker demand. The book-to-bill ratio is not required or defined by IFRS.

–  –  –

Return on equity, or ROE In line with common practice in the financial services industry, Siemens Financial Services (SFS) uses return on equity, or ROE, as one of its key profitability measures. Siemens defines ROE as annualized Income before income taxes of SFS divided by the average allocated equity for SFS. The allocated equity for SFS is determined and influenced by the size and quality of its portfolio of commercial finance assets (primarily leases) and equity investments. This allocation is designed to cover the risks of the underlying business and is in line with common credit risk management standards in banking. The actual risk portfolio of the SFS portfolio is evaluated and controlled monthly and is reflected in the quarterly (commercial finance) and annual (equity investments) adjustments of allocated equity.

Return on equity is reported only for the SFS segment. Siemens believes that the presentation of ROE and average allocated equity provides useful information to investors because management uses ROE as a supplement to Siemens’ Consolidated Financial Statements in evaluating the business performance of SFS, and therefore the measure assists investors in assessing Siemens’ overall performance.

Return on capital employed, or ROCE Return on capital employed, or ROCE, is Siemens’ measure of capital efficiency. Siemens uses this financial performance ratio in order to assess its income generation from the point of view of its shareholders and creditors, who provide Siemens with equity and debt. The different methods of calculation are detailed below. Siemens believes that the presentation of ROCE and the various non-GAAP financial measures involved in its calculation provides useful information to investors because ROCE can be used to determine whether capital invested in the Company and the Sectors yields competitive returns. In addition, achievement of predetermined targets relating to ROCE is one of the factors Siemens takes into account in determining the amount of performance-based or variable compensation received by its management.

ROCE at the Siemens group level Siemens defines group ROCE as net income (before interest) divided by average capital employed, or CE.

Net income (before interest), the numerator in the ROCE calculation, is defined as Net income excluding Other interest income (expense), net and taxes thereon. Taxes on Other interest (expense), net are calculated in a simplified form by applying the current tax rate, which can be derived from the Consolidated Statements of Income, to Other interest income (expense), net.

Capital employed, or CE, the denominator in the ROCE calculation, is defined as Total equity plus Long-term debt plus Short-term debt and current maturities of long-term debt minus Cash and cash equivalents. Each of the components of capital employed appears on the face of the Consolidated Balance Sheet.

ROCE at the Siemens group level, on a continuing operations basis Siemens also presents group ROCE on a continuing operations basis. For this purpose, the numerator is Income from continuing operations and the denominator is CE, less Assets classified as held for disposal presented as discontinued operations, net of Liabilities associated with assets held for disposal presented as discontinued operations.

ROCE at the Sector level For the Sectors, ROCE is defined as Profit divided by average Assets. Profit for each Sector is defined as earnings before financing interest, certain pension costs and income taxes; certain items not considered performance-indicative by management may be excluded. Assets for each Sector are defined as Total assets less intragroup financing receivables and investments, less income tax assets, less non-interest-bearing liabilities/provisions other than tax liabilities.

Free cash flow and cash conversion rate Siemens defines Free cash flow as Net cash provided by (used in) operating activities less Additions to intangible assets and property, plant and equipment. The IFRS financial measure most directly comparable to Free cash flow is Net cash provided by (used in) operating activities.





Siemens believes that the presentation of Free cash flow provides useful information to investors because it is a measure of cash generated by our operations after deducting cash outflows for Additions to intangible assets and property, plant and equipment. Therefore the measure gives an indication of the long-term cash generating ability of our business. In addition, because Free cash flow is not impacted by portfolio activities, it is less volatile than the total of Net cash provided by (used in) operating activities and Net cash provided by (used in) investing activities. For this reason, Free cash flow is reported on a regular basis to Siemens’ management, who uses it to assess and manage cash generation among the various reportable segments of Siemens and for the worldwide Siemens group. Achievement of predetermined targets relating to Free cash flow generation is one of the factors Siemens takes into account in determining the amount of performance-based or variable compensation received by its management, both at the level of the worldwide Siemens group and at the level of individual reportable segments.

Cash conversion rate, or CCR, is defined as Free cash flow divided by Net income. Siemens believes that the presentation of the CCR provides useful information to investors because it is an operational performance measure that shows how much of its income Siemens converts to Free cash flow. CCR is reported on a regular basis to Siemens’ management.

–  –  –

EBITDA (adjusted) and EBIT (adjusted) Siemens defines EBITDA (adjusted) as EBIT (adjusted) before amortization (which in turn is defined as Amortization and impairments of intangible assets other than goodwill) and Depreciation and impairment of property, plant and equipment and goodwill. Siemens defines EBIT (adjusted) as Income from continuing operations before income taxes less Financial income (expense), net and Income (loss) from investments accounted for using the equity method, net. Each of the components of EBIT (adjusted) appears on the face of the Consolidated Financial Statements, and each of the additional components of EBITDA (adjusted) appears in the Consolidated Financial Statements or the MD&A thereto, which may be found in the relevant annual or quarterly report filed with the SEC. The IFRS financial measure most directly comparable to EBIT (adjusted) and EBITDA (adjusted) is Income from continuing operations before income taxes. For a reconciliation of Income from continuing operations before income taxes to Net income, see the Consolidated Statements of Income in the Annual Reports and Quarterly Reports.

Siemens believes that the presentation of EBITDA (adjusted) and EBIT (adjusted) as a cash earnings measure provides useful information to investors. Therefore EBITDA (adjusted) and EBIT (adjusted) are also broadly used by analysts, rating agencies and investors to assess the performance of a company.

Earnings effect from purchase price allocation (PPA effects) and integration costs The purchase price paid for an acquired business is allocated to the assets, liabilities and contingent liabilities acquired based on their fair values. The fair value step-ups result in an earnings effect over time, e.g. additional amortization of fair value step-ups of intangible assets, which is defined as a PPA effect. Integration costs are internal or external costs that arise after the signing of an acquisition in connection with the integration of the acquired business, e.g. costs in connection with the adoption of Siemens’ guidelines and policies.

Siemens believes that the presentation of PPA effects and integration costs effects provides useful information to investors as it allows investors to consider earnings impacts related to business combination accounting and integration in the performance analysis.

Net debt Siemens defines net debt as total debt less total liquidity. Total debt is defined as Short-term debt and current maturities of long-term debt plus Long-term debt. Total liquidity is defined as Cash and cash equivalents plus current Available-forsale financial assets. Each of these components appears in the Consolidated Balance Sheets. The IFRS financial measure most directly comparable to net debt is total debt as reported in the Notes to Consolidated Financial Statements.

Siemens believes that the presentation of net debt provides useful information to investors because its management reviews net debt as part of its management of Siemens’ overall liquidity, financial flexibility, capital structure and leverage. In particular, net debt is an important component of adjusted industrial net debt. Furthermore, certain debt rating agencies, creditors and credit analysts monitor Siemens’ net debt as part of their assessments of Siemens’ business.

Adjusted industrial net debt Siemens defines adjusted industrial net debt as net debt less (1) SFS debt excluding SFS internally purchased receivables; less (2) 50% of the nominal amount of our hybrid bond; plus (3) the funded status of pension plans; plus (4) the funded status of other post-employment benefits; plus (5) credit guarantees; and (6) fair value hedge accounting adjustments. The fair value hedge accounting adjustment has been included in fiscal 2009 in our definition of adjusted industrial net debt.

The fair value hedge accounting adjustment generally reflects risks being hedged. We believe that deducting the fair value hedge accounting adjustment from net debt in addition to the adjustments presented above provides investors more meaningful information to our scheduled debt service obligations. Further information concerning adjusted industrial net debt can be found in the Annual Report under the heading “Management’s discussion and analysis – Liquidity and capital resources – Capital structure.” Siemens manages adjusted industrial net debt as one component of its capital. As part of our “Fit42010” program, we decided to optimize our capital structure. A key consideration is to maintain ready access to capital markets through various debt products and to preserve our ability to repay and service our debt obligations over time. Siemens therefore has set a capital structure goal that is measured by adjusted industrial net debt divided by Earnings before interest taxes depreciation and amortization (EBITDA) as adjusted. Adjusted EBITDA is calculated as earnings before income taxes (EBIT) (adjusted) before amortization (defined as amortization and impairments of intangible assets other than goodwill) and depreciation and impairments of property, plant and equipment and goodwill. Adjusted EBIT is Income from continuing operations before income taxes less Financial income (expense), net and Income (loss) from investments accounted for using the equity method, net.

Siemens believes that using the ratio of “adjusted industrial net debt” to “EBITDA (adjusted)” as a measure of its capital structure provides useful information to investors because management uses it to manage our debt-equity ratio while ensuring both unrestricted access to debt financing instruments in the capital markets and our ability to meet scheduled debt service obligations.

–  –  –

Limitations Associated with Siemens’ Supplemental Financial Measures

The supplemental financial measures reported by Siemens may be subject to limitations as analytical tools. In particular:

With respect to adjusted or organic growth rates of Revenue and new orders: These measures are not adjusted for other effects, such as increases or decreases in prices or quantity/volume.

With respect to book-to-bill ratio: The use of this measure is inherently limited by the fact that it is a ratio and thus does not provide information as to the absolute number of orders received by Siemens or the absolute amount of products and services shipped and billed by it.

With respect to return on equity, or ROE: This measure is not adjusted for special items, such as the disposition of equity investments (allocated to SFS) or impairments, and therefore it has been volatile over prior year periods. In addition, the use of this measure is inherently limited by the fact that it is a ratio and thus does not provide information as to the absolute amount of Siemens’ income.

With respect to return on capital employed, or ROCE: The use of this measure is inherently limited by the fact that it is a ratio and thus does not provide information as to the absolute amount of Siemens’ income.



Pages:     | 1 || 3 |


Similar works:

«The Swedish Bologna process – reckless race or revitalising reform? DRAFT Paper presented to the 29th ANNUAL EAIR FORUM 26 to 29 August 2007 Innsbruck, Austria Name of Author(s) Åsa Lindberg-Sand Contact Details Åsa Lindberg-Sand, PhD Lund University, Centre for Educational Development PO Box 117 SE 221 00 LUND SWEDEN E-mail: Asa.Lindberg-Sand@pedagog.lu.se Key words Curriculum design and development, National systems of higher education, Organisation structures, Management, Quality...»

«ERO Sampling Handbook Revision 1.0 ERO Sampling Handbook | April 2015 I Table of Contents Chapter 1 – Introduction Background Sampling Handbook Chapter 2 – Overview Risk-based Approach Multi-Regional Registered Entities (MRRE) Requirements with Short Retention Periods Sampling from Multiple Versions of a Standard Data Retention Documentation in Workpapers Chapter 3 – Sampling Approaches Considerations for Professional Judgment When Sampling Statistical Sampling Considerations for...»

«The Amnesiac Consciousness of the Contemporary Holocaust Novel: Lily Brett’s Too Many Men and Jonathan Safran Foer’s Everything Is Illuminated Introduction: Cultural Memory and Cultural Identity How does one begin to memorialise an event of which there is little or no direct memory? Contemporary cultural memory of the Holocaust is almost monolithic in scope, constructed out of myriad fragments of image, narrative and artefact, and deeply ingrained into the Western cultural consciousness....»

«The Development of Massive Open Online Courses (MOOCs) in New Zealand Dr Liz Gordon, Pùkeko Research Ltd Prof Michael A Peters, University of Waikato Prof Tina Besley, Centre for Global Studies in Education June 2014 The Development of Massive Open Online Courses (MOOCs) in New Zealand Liz Gordon Michael A Peters Tina Besley Centre for Global Studies in Education University of Waikato, Hamilton, NZ June 2014 Acknowledgments We would like to thank our colleagues at the Wilf Malcolm Centre for...»

«E-Bilanz Content by SAP® Configuration description SAP® ERP CLIENT FOR E-BILANZ CONTENT OVERVIEW Copyright © 2014 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft, Windows,...»

«The Anholt Project The informal island adventure that makes young people grow 2 THE ANHOLT PROJECT Table of Contents Foreword Introduction Background Evolution of an Idea – 2008-2011 SALTO Euromed “Tool Fair” (La Palma, Spain, Nov. 2008) The “Visico” Seminar (Luetjensee, Germany, Sept. 2009) Pilot youth exchange – “Me, Myself and Others in Nature” (Luetjensee, Germany, Sept. 2010) The “Strategies for Anholt 2011” Seminar (Oeiras, Portugal, Sept. 2010) The Anholt Project Aims...»

«American Express Online User Guide for NYU 02-Dec-2011 AXP Internal Page 1 of 24 Table of Contents Getting Started   Upcoming Trips   Travel Profile   Additional Profile Options   System Settings   I'm Assisting.   Travel Center   Book a Trip   Flight Tab   Search by Schedule   Choose a Flight   Filter   Sort   Car Rental   Car Rental Results   Hotel   How American Express Online Finds Hotels   Hotel Results   Hotel Search Tips   Itinerary   Trip Booking Information   Hold...»

«Booking Conditions Our agreement with you We are Travel Department, hereinafter referred to in these booking conditions as the ‘Organiser’, who arranges your transport, accommodation etc., and who offers it as a holiday. “Consumer” means you, the party leader who takes or agrees to take the holiday or any person on whose behalf you agree to purchase the holiday and who is listed on the confirmation invoice, or any other person to whom you transfer a holiday which you have bought. The...»

«WORLD TRADE WT/DS139/AB/R WT/DS142/AB/R ORGANIZATION 31 May 2000 (00-2170) Original: English CANADA – CERTAIN MEASURES AFFECTING THE AUTOMOTIVE INDUSTRY AB-2000-2 Report of the Appellate Body WT/DS139/AB/R WT/DS142/AB/R Page i I. Introduction II. The Measure and Its Background III. Arguments of the Participants and Third Participants A. Claims of Error by Canada – Appellant 1. Article I:1 of the GATT 1994 2. Article 3.1(a) of the SCM Agreement 3. Article I:1 and Article II:1 of the GATS B....»

«The Angel of power 2 wins Andr´s M´th´∗ a ae (Published in Combinatorics, Probability and Computing 16 (2007), no. 3, 363–374.) Abstract We solve Conway’s Angel Problem by showing that the Angel of power 2 has a winning strategy. An old observation of Conway is that we may suppose without loss of generality that the Angel never jumps to a square where he could have already landed at a previous time. We turn this observation around and prove that we may suppose without loss of...»

«©Vierteljahrshefte für Zeitgeschichte VIERTELJAHRSHEFTE FÜR ZEITGESCHICHTE Im Auftrag des Instituts für Zeitgeschichte München herausgegeben von HANS R O T H F E L S u n d T H E O D O R ESCHENBURG in Verbindung mit Theodor Schieder, Werner Conze, Karl Dietrich Erdmann, Paul Kluke und Walter Bußmann Schriftleitung: Redaktion: PROF. DR. H E L M U T KRAUSNICK H E L L M U T H AUERBACH 8 München 27, Möhlstraße 26 INHALTSVERZEICHNIS AUFSATZE Wolfgang Benz. Vom freiwilligen Arbeitsdienst zur...»

«Devotion NT359 CHILDREN’S DEVOTIONS FOR THE WEEK OF: _ LESSON TITLE: The Seven Churches THEME: Jesus desires to speak to His people. SCRIPTURE: Revelation 1:20-3:22 Dear Parents. Welcome to Bible Time for Kids. Bible Time for Kids is a series of daily devotions for children and their families. Our purpose is to supplement our Sunday morning curriculum and give you an opportunity to encourage your children to develop a daily devotional life. We hope you and your family will e blessed as you...»





 
<<  HOME   |    CONTACTS
2016 www.abstract.xlibx.info - Free e-library - Abstract, dissertation, book

Materials of this site are available for review, all rights belong to their respective owners.
If you do not agree with the fact that your material is placed on this site, please, email us, we will within 1-2 business days delete him.