Siemens 2009 Annual Report Download - page 164

6
 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
Profit at Renewable Energy climbed to €382 million from €242
million in fiscal 2008, driven by economies of scale on a 40%
increase in revenue. Orders in the Division came in above the
prior-year level, as higher order intake in Europe, C.I.S., Africa,
Middle East more than offset lower demand in the Americas
region, where the Division took in a higher volume from major
orders in the prior-year period. Order development in both re-
gions was significantly influenced by large offshore wind-farm
projects with long lead times between order intake and reve-
nue recognition. In the first quarter of fiscal 2010, Renewable
Energy completed the acquisition of 100% of Solel Solar Sys-
tems, a solar thermal power technology company, to
strengthen its position in the expanding market of solar ther-
mal power. The acquisition costs (cash and debt free), amount
to approximately €280 million in cash consideration.
Oil & Gas brought in €499 million in profits in fiscal 2009, up
from €351 million a year earlier, including higher contributions
from all business units. Revenue increased 6% year-over-year
on growth in the Americas and in Europe, C.I.S., Africa, Middle
East, as the Division converted orders from its backlog into
current business. In contrast, order intake slowed substan-
tially in the current period, as customers delayed new projects.
Power Transmission posted profit of €725 million in fiscal
2009, up 28% from the prior year on revenue increases in all
three regions. Due to customer postponements of potential
new projects, the Division reported a double-digit decline in
orders compared to the strong prior year.
Power Distribution grew profit 18%, to €435 million. Order in-
take fell 16% on lower year-over-year orders in all four quarters,
due primarily to weaker demand among the Division’s indus-
trial customers. Revenue at Power Distribution came in just
above the prior-year level, as growth in the first two quarters
was nearly offset by lower year-over-year sales in the second
half of fiscal 2009.
Healthcare
B25T016_E
Sector
Year ended September , % Change therein
(in millions of €) 2009 2008 Actual Adjusted Currency Portfolio
Profit 1,450 1,225 18%
Profit margin 12.2% 11.0%
New orders 11,950 11,779 1% (3)% 3% 1%
Total revenue 11,927 11,170 7% 2% 4% 1%
External revenue 11,864 11,116 7%
Therein:
Europe, C.I.S.2, Africa, Middle East 4,724 4,537 4%
Therein Germany 1,072 980 9%
Americas 5,153 4,861 6%
Asia, Australia 1,986 1,718 16%
1 Excluding currency translation and portfolio effects. 2 Commonwealth of Independent States.
The market environment for the Healthcare Sector included
the contraction in healthcare equipment spending mentioned
earlier (see ”Business and operating environment – Economic
environment – Market development“) as well as reduced avail-
ability of credit for financing equipment purchases and uncer-
tainty created by healthcare reform efforts and budget deficits
in developed nations. Against this backdrop, Healthcare in-
creased revenue and orders 7% and 1%, respectively. On an or-
ganic basis, particularly excluding strong positive currency
translation effects, revenue rose 2% and orders came in 3%
lower than a year earlier. On a geographic basis, revenue
grew in all three regions, including a 16% rise in Asia, Australia.