Siemens 2011 Annual Report Download - page 180

6 A. To our shareholders
23 B. Corporate Governance 51 C. Combined management’s discussion and analysis
52 C. Business and operating environment
80 C.2 Fiscal  – Financial summary
83 C. Results of operations
101 C. Financial position
114 C. Net assets position
117 C. Overall assessment of the economic position
118 C. Report on post-balance sheet date events
119 C. Report on expected developments and
associated material opportunities and risks
135 C. Information required pursuant to Section  ()
and Section  () of the German Commercial
Code (HGB) and explanatory report

In fiscal  we maintained our profitable growth momen-
tum and further focused our business portfolio in alignment
with our long-term strategy. Both orders and revenue grew in
all Sectors and all reporting regions, and by the year’s end ma-
ny of our businesses saw volumes returning to or exceeding
their peak levels before the downturn. Strong execution in
the Sectors throughout the year took Total Sectors profit up
substantially compared to fiscal . In combination with net
gains related to portfolio transactions, this lifted income from
continuing operations well above prior-year levels. During the
fiscal year we exited a nuclear power joint venture, disposed
of our IT services business and announced our plans to pub-
licly list our lighting business. These transactions are described
in more detail below. In addition, we prepared a realignment
of selected business activities in order to further sharpen the
focus in our Sectors Industry and Energy while creating a new
Sector to focus on growth opportunities associated with ur-
banization and demand for infrastructure solutions. This stra-
tegic change took effect with the beginning of fiscal . For
further information concerning the organizational changes
see C.. The Siemens Group – Organization and basis of
presentation.
Among other portfolio activities during fiscal , we sold
our % investment in Areva NP S.A.S. (Areva) to the majority
shareholder Areva S.A. pursuant to a put notice exercised in
fiscal . In December , Siemens and AtoS signed an
option agreement which granted AtoS the right to acquire
Siemens IT Solutions and Services. In February , AtoS ex-
ercised its option to acquire Siemens IT Solutions and Services
in exchange for . million newly issued shares in AtoS with
a five-year lock-up commitment, a five-year convertible bond
of € million (nominal value) and a cash payment of €
million. Following the signing, we classified Siemens IT Solu-
tions and Services as held for disposal and as discontinued
operations. Closing of the transaction was on July ,  fol-
lowing clearance of the transaction by the relevant antitrust
authorities and the approval from AtoS’ shareholders on July ,
. Siemens is providing extensive support to AtoS in order
to foster Siemens IT Solutions and Services’ business success,
including up to € million for integration and training costs
as well as further protections and guarantees. Related to the
transaction is a seven-year outsourcing contract worth around
€. billion, under which AtoS will provide managed services
and system integration to Siemens. In order to reimburse AtoS
for additional costs, which arise in the post-closing transition
phase as AtoS becomes Siemens’ external IT service provider,
Siemens will pay approximately € million over the next
two years of which an amount of € million was taken with-
in continuing operations during fiscal . At the end of
March , we announced that we plan to publicly list our
subsidiary OSRAM AG. Following the announcement, the
business was classified as discontinued operations. Prior-year
results are presented on a comparable basis. The timing of the
public offering depends on market conditions. We intend to
retain a minority stake in OSRAM AG and to remain a long-
term anchor shareholder.
We restored revenue growth. Revenue for Siemens overall
as well as for Total Sectors increased % year-over-year, driven
by the Sectors Industry and Energy. Growth in Industry pri-
marily included strong recovery in the Sector’s short-cycle
businesses, while revenue in Energy grew at all Divisions. Both
Sectors raised their revenue in each of the four quarters of
fiscal  compared to the respective prior-year quarter. Rev-
enue at Healthcare was flat year-over-year. On a geographic
basis, revenue grew in all the reporting regions, including
double-digit growth rates in the Asia, Australia and the Ameri-
cas regions.
Orders grew even faster than revenue. Order development
was largely following the pattern described above for revenue
development, with growth driven primarily by the Sectors In-
dustry and Energy. While Industry ’s short-cycle businesses
contributed strongly to order growth for the Sector, the in-
crease year-over-year also included Siemens’ largest-ever train
order, worth €. billion. Order growth at Energy was broad-
based across the Sector’s Divisions. Healthcare delivered
slightly higher orders year-over-year. On a geographic basis,
orders grew in all the reporting regions, including double-dig-
it rates in the regions Asia, Australia and Europe, C.I.S., Africa,
Middle East.
Revenue (in millions of €)
Siemens Industry
Sector 
Energy
Sector 
Healthcare
Sector 
FY  FY 
1 Includes intersegment revenue.
73,515 68,978 32,941 30,203 27,607 25,520 12,517 12,364
8%
1%
7%
9%
C. Fiscal  – Financial summary