Siemens 2008 Annual Report Download - page 155

Management’s discussion and analysis 59
Results of Siemens
The following discussion presents selected information for Siemens for the scal year ended September 30,
2008:
Orders were €93.495 billion, up 11% from the prior-year period, while revenue rose 7% year-over-year, to
€77.327 billion. This resulted in a book-to-bill ratio of 1.21 for the current period. On an organic basis, exclud-
ing the net effect of currency translation and portfolio transactions, orders increased 13% year-over-year and
revenue rose 9%. Within the full-year growth trend, we saw signs of slowing demand in the latter half of the year
as commercial credit continued to tighten on a global basis and economic growth slowed or stopped in numer-
ous regional and industrial markets important to Siemens. In particular, some Divisions reported lower orders
in the second half of the scal year or in the fourth quarter compared to the same period a year earlier.
Order growth related to external customers in scal 2008 included double-digit increases in all three Sectors.
The Industry Sector – Siemens’ largest Sector – increased orders by 10% compared to scal 2007, with the strong -
est growth coming at Mobility and Industry Automation. Order growth at Mobility included Siemens’ largest-
ever rolling stock order, a €1.4 billion contract for more than 300 trains from the Belgian state railway system.
Two of the larger Divisions of the Industry Sector, Industry Automation and Drive Technologies, saw their book-
to-bill ratios slide to 0.98 and 1.03, respectively, in the second half of the scal year, compared to 1.08 and 1.22,
respectively, in the rst half-year. In the Energy Sector, orders rose 17% on growth in all Divisions. Renewable
Energy contributed both the largest absolute increase and greatest percentage increase compared to the prior
year, driven by large wind power orders in the U.S. and the U.K. This Division also reported an expected drop in
fourth-quarter orders compared to the same quarter a year earlier. The Healthcare Sector recorded order growth
of 15%, which beneted from substantial new volume at Diagnostics due to its rst-quarter consolidation of
Dade Behring.
New Orders (location of customer)
Year ended
September 30,
% Change
vs. previous year therein
(€ in millions) 2008 2007 Actual Adjusted* Currency Portfolio
Europe, C.I.S.**, Africa 50,029 43,374 15% 15% (2)% 2%
therein Germany 14,434 13,562 6% 5% 0% 1%
Americas 24,010 22,831 5% 11% (11)% 5%
therein U.S. 17,437 16,662 5% 14% (15)% 6%
Asia, Australia, Middle East 19,456 17,711 10% 12% (5)% 3%
therein China 5,446 4,871 12% 13% (3)% 2%
therein India 2,268 2,015 13% 17% (8)% 4%
Siemens 93,495 83,916 11% 13% (5)% 3%
* Excluding currency translation and portfolio effects. ** Commonwealth of Independent States.