Siemens 2011 Annual Report Download - page 195

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)

mentioned above for the Sector. PPA effects related to past
acquisitions were € million in fiscal  and € million
in fiscal .
Orders for Healthcare increased % in fiscal  compared to
the prior year. Revenue rose % year-over-year, including the
revenue reduction related to particle therapy projects men-
tioned above. The imaging and therapy systems businesses
delivered solid growth in both revenue and orders. On an or-
ganic basis, Sector volume growth was % for both orders and
revenue. On a geographic basis, double-digit order growth in
the Asia, Australia region more than offset declines in the re-
gions Europe, C.I.S., Africa, Middle East and Americas. The
Sector recorded higher revenue in the regions Asia, Australia
and Americas offsetting a decline in the Europe, C.I.S., Africa,
Middle East region. Emerging markets on a global basis
showed positive growth for both revenue and orders includ-
ing strong double-digit increases in China. Healthcare’s book-
to-bill ratio was . and its order backlog stood at € billion at
the end of the year. Of the Sector’s current backlog, orders of
€ billion are expected to be converted into revenue during
fiscal , orders of € billion during fiscal , and the re-
mainder in the periods thereafter.
In fiscal , Diagnostics recorded revenue of €. billion,
unchanged from the prior year, and orders of €. billion,
up slightly from €. billion a year ago. Both orders and rev-
enue showed double-digit growth in the Asia, Australia re-
gion, and declines in the regions Americas and Europe, C.I.S.,
Africa, Middle East. On an organic basis, revenue was level
with the prior year and orders rose %.
C... EQUITY INVESTMENTS
In fiscal , Equity Investments reduced its loss to € mil-
lion from a loss of € million in fiscal . The improve-
ment was due mainly to a lower equity investment loss relat-
ed to our share in NSN, which declined to € million from
€ million in the prior fiscal year. NSN reported to Siemens
that it took restructuring charges and integration costs total-
ing € million in fiscal  compared to € million a year
earlier. Profit in fiscal  also benefited from a gain of €
million on the sale of Siemens’ % stake in KMW. These posi-
tive factors were partly offset by results related to other equity
investments. Our shares in BSH and KMW, which was sold
during the first quarter of the current fiscal year, together
generated equity investment income for Siemens totaling
€ million in fiscal , down from € million in fiscal
. The equity investment result related to our share in EN
was a loss of € million in fiscal , compared to income of
€ million a year earlier.
In the first quarter of fiscal , Nokia Corporation (Nokia)
and Siemens each converted € million, consisting of a
shareholder loan to NSN and deferred interest into preferred
shares. In the fourth quarter of fiscal , in order to
strengthen NSN’s financial position, Nokia and Siemens each
provided new equity of € million and received preferred
shares in return. The increase in equity did not change the ex-
isting shareholding ratio between Nokia and Siemens. We ex-
pect continued volatility in Equity Investments results in com-
ing quarters including material impacts related to reposition-
ing activities at NSN. For further information see
C. Report
on post-balance sheet date events
.
C... FINANCIAL SERVICES (SFS)
(in millions of €)
Year ended September , % Change
 
Income before income taxes 428 443 (3)%
Total assets 14,602 12,506 17%
In fiscal , SFS generated € million in profit (defined as
income before income taxes). Profit of € million in fiscal
 benefited from positive net effects related to various
investments, including a gain of € million on the sale of
an investment, while the current fiscal year was burdened by
an impairment on an equity stake in a power plant project
in the U.S. due to unexpectedly adverse market conditions.
An adverse change related to investments was partly offset
primarily by higher results in the commercial finance busi-
ness. In the fourth quarter of fiscal , SFS announced
a growth strategy which includes even stronger support
for the operating businesses of Siemens, leading to higher
net cash outflows at the end of the quarter primarily relating
to growth in the commercial finance business. These higher
net cash outflows led to an increase in Total assets to €.
billion.