Siemens 2012 Annual Report Download - page 162

1 A. To our Shareholders
21 B. Corporate Governance 49 C. Combined Management Report
50 C. Business and economic environment
64 C. Financial performance measures
69 C. Results of operations
82 C. Financial position
93 C. Net assets position
95 C. Overall assessment of the economic position
96 C. Subsequent events
97 C. Sustainability
111 C. Report on expected developments and
associated material opportunities and risks

As a result of these developments, Income from continuing
operations before income taxes declined %. Income taxes
declined % year-over-year. The effective tax rate was %. For
comparison, the effective tax rate of % a year earlier benefit-
ed from the mainly tax-free Areva disposal gain.
Loss from discontinued operations, net of income taxes in
fiscal  was € million, compared to €. billion in fis-
cal . Loss from discontinued operations, net of income tax-
es was comprised of the following:
Year ended September , % Change
(in millions of €)  
Siemens IT Solutions
and Services 41 (826) n/a
OSRAM (121) 309 n/a
Siemens’ solar business (241) (365) (34)%
Other former activities (274) (172) 59%
Results related to Siemens IT Solutions and Services, which
was sold to Atos S.A. (AtoS) in the fourth quarter of fiscal ,
differed substantially year-over-year. In fiscal , income
was a positive € million, compared to a loss of € million
in fiscal , which included significant expenses related to
the disposal.
Results for OSRAM in fiscal  included a non-cash effect of a
negative € million (pretax). This effect arises from the fact
that Siemens no longer considered it highly probable to com-
plete its original plan to dispose of OSRAM via an initial public
offering (IPO) in the third quarter of fiscal , and therefore
had to recognize accumulated depreciation, amortization, im-
pairments and equity pick-ups related to OSRAM which under
IFRS were not recognized beginning with the announcement
of the IPO plan in March . The Company intends to dispose
of OSRAM via a spin-off to Siemens shareholders, which is sub-
ject to approval by the Annual Shareholders’ Meeting on Janu-
ary , . While revenue rose % year-over-year, benefiting
from currency translation and portfolio effects, ongoing mar-
ket challenges held back profit development.
In addition, discontinued operations include Siemens’ solar
business, which posted losses of € million and € million
in fiscal  and , respectively. Both years included pre-
tax impairment charges: € million in fiscal  and €
million in fiscal .
Discontinued operations also include certain remaining items
related to former activities that were disposed of in prior years.
Fiscal  included pretax expenses of € million related to
a settlement with the Greek State, and negative tax effects of
€ million, both related to former Com activities. For addi-
tional information, see    .   
 .
Net income for Siemens in fiscal  declined to €. bil-
lion from €. billion a year earlier. Net income attributable
to shareholders of Siemens AG was €. billion, down from
€. billion in the same period a year earlier.

Year ended September , % Change therein
(in millions of €)   Actual Adjusted  Currency Portfolio
Profit 2,159 , ()%
Profit margin 7.8% .%
New orders 26,881 , ()% ()% % %
Total revenue 27,537 , % % % %
External revenue 27,302 , %
therein:
Europe, C.I.S., Africa, Middle East 14,077 , %
therein Germany 1,927 , %
Americas 8,131 , %
Asia, Australia 5,093 , %
1 Excluding currency translation and portfolio effects. 2 Commonwealth of Independent States.
.. Segment information analysis
... 