Siemens 2009 Annual Report Download - page 156

68
 Reports Supervisory Board /
Managing Board  Corporate Governance  Management’s discussion and analysis  Consolidated Financial Statements
44 Business and operating environment 63 Fiscal 2009 – Financial summary 66 Results of operations 84 Financial position
marily to growth at Imaging & IT and Diagnostics as well as
substantial positive currency translation effects.
In Europe, C.I.S., Africa, Middle East, revenue declined 4%
year-over-year, held back by negative currency translation and
portfolio effects, the latter due mainly to streamlining of Other
Operations. Revenue in the region rose by double digits in
Energy and at a lower rate in Healthcare, and decreased in the
Industry Sector. Revenue in Germany declined 10% in fiscal
2009, due primarily to lower demand in the Industry Sector,
particularly in its short-cycle businesses, and streamlining ac-
tions within Other Operations. In the Americas, revenue rose
3% due to significant positive currency translation effects from
the U.S. Revenue growth in the region was strongest in the
Energy Sector, including double-digit increases at Renewable
Energy, Fossil Power Generation and Power Transmission.
Healthcare also reported higher revenues in the Americas,
while Industry came in below the level of fiscal 2008, driven by
declines at OSRAM, Industry Automation and Industry Solu-
tions. Asia, Australia saw a 2% expansion in revenue on
growth in Healthcare and Energy. Revenue in Industry in this
region declined 2% compared to the prior-year level. Revenue
growth in China was due primarily to positive currency transla-
tion effects. Revenue declined in India driven by lower sales at
Drive Technologies and Oil & Gas.
Consolidated Statements of Income
Gross profit for fiscal 2009 decreased 2% compared to the
prior-year period, as a strong gross profit increase in the
Energy Sector was more than offset by other factors, including
substantially lower gross profit in Industry and a sharp drop at
Other Operations due to the streamlining actions. Higher
gross profit in the Energy Sector was due primarily to Fossil
Power Generation where gross profit in the prior year was re-
duced by substantial project charges, and also included vol-
ume-driven growth in gross profit at the majority of Divisions.
Lower gross profit in Industry was due primarily to volume-
driven declines at Industry Automation, Drive Technologies
and OSRAM as well as substantial severance charges in the
current fiscal year. For comparison, in fiscal 2008 gross profit
in Industry was held back by project charges at Mobility and
charges related to structural initiatives at Mobility and OSRAM.
Gross profit in Healthcare rose modestly year-over-year, de-
spite further charges of €169 million related to particle therapy
contracts. For comparison, in the prior year gross profit in
Healthcare was held back by substantial costs associated pri-
marily with refocusing of certain business activities at Imag-
ing & IT and charges related to particle therapy contracts at
Workflow & Solutions. In combination, these factors led to a
slight decline in gross profit margin for Siemens overall, which
came in at 27.0% compared to 27.2% a year earlier.
R&D expenses increased to €3.900 billion, or 5.1% of revenue,
from €3.784 billion, or 4.9% of revenue a year earlier, due pri-
marily to higher outlays in Energy. SG&A expenses declined
substantially to €10.896 billion, or 14.2% of revenue, from
€13.586 billion, or 17.6% of revenue in the prior-year period, in-
cluding lower expenses in all Sectors. The change year-over-
year also includes substantial expenses in the prior year re-
lated to our global SG&A program, as the majority of the €1.081
billion in severance charges related to this program were re-
corded as SG&A expenses in fiscal 2008. During fiscal 2009, we
already achieved the annual savings target under our global
Year ended September 30, % Change
(in millions of €) 2009 2008
Research and development
expenses (3,900) (3,784) 3%
as percentage of revenue 5.1% 4.9% –
Marketing, selling and
general administrative
expenses (10,896) (13,586) (20)%
as percentage of revenue 14.2% 17.6% –
Other operating income 1,065 1,047 2%
Other operating expense (632) (2,228) (72)%
Income (loss) from invest-
ments accounted for using
the equity method, net (1,946) 260 –
Financial income
(expense), net (510) 122 –
B25T006_E
Year ended September 30, % Change
(in millions of €) 2009 2008
Gross profit on revenue 20,710 21,043 (2)%
as percentage of revenue 27.0% 27.2%
B25T005_E