Siemens 2011 Annual Report Download - page 185

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)

ported a revenue increase of % in fiscal  on increases in
all Divisions, led by Renewable Energy, Fossil Power Genera-
tion and Oil & Gas. Revenue in the Healthcare Sector came in
slightly above the prior-year period. On a global basis, emerg-
ing markets grew faster than revenue overall, at %, and ac-
counted for €. billion, or %, of total revenue in fiscal
.
On a geographic basis, revenue increased in all three report-
ing regions, led by double-digit growth in the Americas and
Asia, Australia. In the Europe, C.I.S., Africa, Middle East re-
gion, revenue increased % year-over-year, including moder-
ate growth in Industry and Energy and a decrease in Health-
care. Revenue growth of % in Germany was driven by
double-digit increases at Drive Technologies and Industry Au-
tomation. In the Americas, higher revenue included double-
digit increases in Energy and Industry. Growth in the Energy
Sector was led by Fossil Power Generation and Renewable En-
ergy. Higher revenues in Industry in the Americas region in-
cluded double-digit increases at Industry Solutions, Industry
Automation and Drive Technologies. The U.S. contributed %
revenue growth driven by a sharp increase at Fossil Power
Generation. In the Asia, Australia region, revenue rose %
on double-digit increases in all Sectors. While revenue devel-
opment in China followed the pattern for the region overall,
growth of % in India was driven by substantially higher rev-
enue in Energy.
C... CONSOLIDATED STATEMENTS OF INCOME
Year ended September , % Change
(in millions of €)  
Gross profit 22,127 20,001 11%
as percentage of revenue 30.1% 29.0%
Gross profit for fiscal  rose % year-over-year for Siemens,
driven by a strong double-digit increase in the Industry Sector.
All Industry Divisions reported higher gross profits compared
to fiscal , with particularly strong increases at Industry
Automation and Drive Technologies due to high capacity utili-
zation. For comparison, Industry ’s gross profit in fiscal 
was held back by € million in charges at Industry Solutions
related to a project engagement with a local partner in the U.S.
Gross profit rose % in Energy compared to the prior fiscal
year, driven by a strong operating performance at Fossil Power
Generation. The Division combined excellent project execu-
tion with a more favorable business mix year-over-year. In con-
trast, gross profit declined at Power Transmission, due in part
to a negative swing in effects related to commodity hedging.
Lower gross profit in Healthcare was driven by negative im-
pacts related to the particle therapy business, primarily includ-
ing third-quarter charges of € million related to the reeval-
uation of the commercial feasibility of particle therapy. Before
the reevaluation, the Sector took € million in charges related
to particle therapy contracts in the first quarter of fiscal .
For comparison, charges related to the particle therapy busi-
ness in fiscal  amounted to € million. In fiscal ,
gross profit in all three Sectors benefited from their respective
portions of gains related to curtailment of pension plans in the
U.S. In addition, gross profit in fiscal  included € mil-
lion of the expenses related to the special remuneration for
non-management employees mentioned earlier. In combina-
tion, these factors resulted in a gross profit margin of .% for
Siemens overall, up from .% in the prior year.
Year ended September , % Change
(in millions of €)  
Research and development
expenses (3,925) (3,558) 10%
as percentage of revenue 5.3% 5.2% –
Marketing, selling and general
administrative expenses (10,297) (9,666) 7%
as percentage of revenue 14.0% 14.0% –
Other operating income 555 839 (34)%
Other operating expense (502) (1,554) (68)%
Income (loss) from invest-
ments accounted for using
the equity method, net 147 9> 200%
Interest income 2,207 2,045 8%
Interest expense (1,716) (1,759) (2)%
Other financial income
(expense), net 646 (383) n /a
Research and development (R&D) expenses increased to
€. billion or .% of revenue in fiscal , from €.
billion or .% of revenue in the prior year, as a result of high-
er expenses in all Sectors. Marketing, selling and general
administrative (SG&A) expenses rose to €. billion, due
primarily to higher expenses in Industry and Energy associat-
ed with business growth. SG&A expenses as a percentage of
revenue remained at the prior-year level of .%.