Siemens 2009 Annual Report Download - page 162

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 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
Energy
The Energy Sector turned in a strong performance in fiscal
2009, with all Divisions delivering strong profit increases com-
pared to the prior year. Sector profit improved to €3.315 billion
from €1.434 billion a year earlier, making Energy the top profit
contributor among the Sectors. Profit growth year-over-year
included a strong profit rebound at Fossil Power Generation.
For comparison, the Division’s prior-year results were bur-
dened by €559 million in second-quarter project charges as
well as additional project charges totaling more than €300 mil-
lion taken in the first and fourth quarters of fiscal 2008. Sector
profit in the current fiscal year also rose on substantially lower
SG&A expenses at Power Transmission, Power Distribution,
Oil & Gas and Fossil Power Generation.
Energy produced revenue growth of 14% in fiscal 2009 by exe-
cuting projects in its substantial order backlog. Led by Fossil
Power Generation and Renewable Energy, all Energy Divisions
contributed revenue increases year-over-year. Due in part to
customer postponements of potential new projects against
the background of the global macroeconomic and financial
crisis, order intake decreased 10% from a high basis of com-
parison a year earlier. Within fiscal 2009, Energy saw its longer-
cycle businesses become increasingly affected by deteriorat-
ing macroeconomic conditions. On a book-to-bill ratio of 1.17,
the Sector’s order backlog rose to €47.1 billion at the end of fis-
cal 2009, up from €44.6 billion a year earlier. Out of the current
backlog, orders of €20 billion are expected to be converted into
revenue during fiscal 2010, orders of €10 billion during 2011,
and the remainder in the periods thereafter. On a geographic
basis, revenue grew in all three regions, with the strongest in-
creases in Europe, C.I.S., Africa, Middle East and in the Ameri-
cas. Order intake declined across the three regions, with the
strongest contraction in the Americas.
B25T012_E
Sector
Year ended September , % Change therein
(in millions of €) 2009 2008 Actual Adjusted Currency Portfolio
Profit 3,315 1,434 131%
Profit margin 12.9% 6.4%
New orders 30,076 33,428 (10)% (9)% (1)% 0%
Total revenue 25,793 22,577 14% 14% 0% 0%
External revenue 25,405 22,191 14%
Therein:
Europe, C.I.S.2, Africa, Middle East 14,715 12,722 16%
Therein Germany 1,905 1,890 1%
Americas 6,552 5,643 16%
Asia, Australia 4,138 3,826 8%
1 Excluding currency translation and portfolio effects. 2 Commonwealth of Independent States.