Siemens 2011 Annual Report Download - page 181

153 D. Consolidated Financial Statements
273 E. Additional information
143 C.2 Additional information for supplemental
financial measures
145 C. Siemens AG (Discussion on basis of
German Commercial Code)
151 C. Notes and forward-looking statements
140 C. Information required pursuant to Section  ()
and Section  () no.  of the German Commer-
cial Code (HGB) and explanatory report
142 C. Compensation report and Corporate Governance
statement pursuant to Section a of the German
Commercial Code (HGB)

We increased Total Sectors profit to €. billion. Total
Sectors profit climbed % compared to the prior fiscal year.
The increase year-over-year included a strong operating per-
formance in Industry ’s short-cycle businesses and Energy ’s
Fossil Power Generation Division. The highest growth rate in
profit came in Healthcare primarily due to impairment charg-
es of €. billion at its Diagnostics Division that impacted
the Sector’s profit in the prior fiscal year. Charges at Health-
care in the current period were significantly lower. Total Sec-
tors profit in the current period benefited from a net gain re-
lated to Areva. While the Energy Sector recorded a €. bil-
lion gain on the sale of its share in Areva, an adverse arbitra-
tion decision resulted in a payment to Areva S.A. with an
associated profit impact of € million.
Beginning with fiscal , central infrastructure costs, which
were formerly reported in Corporate items, have been allocat-
ed primarily to the Sectors. The total amount to be allocated is
determined at the beginning of the fiscal year and is charged
in equal installments in all four quarters. Prior-year financial
information is reported on a comparable basis.
Income from continuing operations reached €. billion.
Corresponding basic earnings per share (EPS) rose to €.. A
year earlier, income from continuing operations was €.
billion and corresponding basic EPS was €.. The strong in-
crease in income from continuing operations was driven pri-
marily by the high level of Total Sectors profit, and secondari-
ly by improved results outside the Sectors. Expenses for Cor-
porate items and pensions came in lower year-over-year, in
part because these expenses in the prior fiscal year included
€ million (pretax) related to special remuneration for non-
management employees. After determination of the alloca-
tion, € million (pretax) of the remuneration was allocated
to the Sectors in fiscal . Income from continuing opera-
tions increased also on lower losses at Equity Investments
and Centrally managed portfolio activities compared to the
prior fiscal year.
Net income rose to €. billion from €. billion in fis-
cal . Corresponding basic EPS rose to €. compared to
€. a year earlier. The primary driver of net income growth
was higher income from continuing operations. In contrast,
discontinued operations had a negative influence on net in-
come. This was due primarily to Siemens IT Solutions and Ser-
vices, which was reclassified as discontinued operations dur-
ing the year and posted a loss of € million compared to a
loss of € million a year earlier. The sale of the business re-
sulted in a negative earnings impact of € million (pretax)
in fiscal . In particular, this negative earnings impact con-
sists of impairments and restructuring charges of € mil-
lion (pretax) and a gain of € million (pretax) which was rec-
ognized upon deconsolidation of Siemens IT Solutions and
Services. In addition to these transaction-related results,
Siemens took charges in fiscal  related to establishing
Siemens IT Solutions and Services as a separate legal group,
including for carve-out activities and personnel-related mat-
ters. Such charges reported within discontinued operations
New orders (in millions of €)
Siemens Industry
Sector 
Energy
Sector 
Healthcare
Sector 
FY  FY 
1 Includes intersegment orders.
85,582 74,055 37,594 30,243 34,765 30,122 13,116 12,872
15%
2%
16%
24%
Profit Sectors (in millions of €)
Total Sectors
profit
Industry
Sector
Energy
Sector
Healthcare
Sector
FY  FY 
9,093 6,673 3,618 2,658 4,141 3,361 1,334 653
23%
104%
36%
36%
Income and profit (in millions of €)
Total
Sectors profit
Income from
continuing operations
Net income
FY  FY 
4,2627,011 4,068
6,321
9,093 6,673
36%
65% 55%