Siemens 2012 Annual Report Download - page 163

135 D. Consolidated Financial Statements
239 E. Additional Information
130 C. Siemens AG (Discussion on basis of
German Commercial Code)
134 C. Notes and forward-looking statements
129 C. Compensation Report, Corporate Governance
statement pursuant to Section a of the
German Commercial Code, Takeover-relevant
information and explanatory report

Energy reported a profit of €. billion in fiscal , a sharp
decrease compared to fiscal . Sector profit was held back
by project charges related to offshore grid connection projects
totaling € million. In the fourth quarter of fiscal ,
Siemens revised its credit risk assessment for Iran. In accor-
dance with project accounting principles, we therefore revised
project calculations for the affected contracts. The change in
credit risk assessment resulted in earnings impacts totaling
€ million mainly at Oil & Gas. Energy also recorded burdens
of € million associated with the Olkiluoto project in Fin-
land. In addition, Energy ’s business expansion strategy result-
ed in higher marketing, selling and general administrative ex-
penses as well as higher research and development expenses,
and profit development was also held back by a less favorable
revenue mix. For comparison, profit of €. billion in fiscal
 benefited from the Areva NP gain of €. billion men-
tioned earlier, only partly offset by the € million profit im-
pact related to the arbitration decision discussed earlier and
the Sector’s € million share of special employee remunera-
tion costs. The Sector expects further profit impacts related to
Iran in fiscal .
Revenue rose on conversion from the Sector’s strong order
backlog in all three reporting regions, including a substantial
increase in Asia, Australia. Orders came in % lower compared
to the prior year, when the Sector recorded a substantially larg-
er volume from major orders. This comparison effect was par-
ticularly notable in Europe, C.I.S., Africa, Middle East. Energy ’s
book-to-bill ratio for fiscal  was . and its order backlog
was € billion at the end of the period.
Fossil Power Generation generated profit of €. billion
on strong profit contributions from the service and products
businesses, while results from the solutions business were
significantly lower due to a less favorable project mix com-
pared to a year earlier. Profit benefited from a € million gain
from the sale of the % interest in OAO Power Machines. In
addition, the Division recorded higher expenses for market-
ing and selling year-over-year. For comparison, profit a year
earlier included the €. billion Areva NP gain and a more
favorable project mix in the component business, partly off-
set by the € million Areva arbitration impact. Profit in both
years was burdened by charges related to the Olkiluoto proj-
   
Year ended September , % Change therein
(in millions of €)   Actual Adjusted  Currency Portfolio
Fossil Power Generation 11,116 12,487 (11)% (17)% 2% 4%
Wind Power 4,932 6,461 (24)% (26)% 2% 0%
Oil & Gas 5,307 5,551 (4)% (10)% 2% 3%
Power Transmission 5,824 7,271 (20)% (21)% 1% 0%
1 Excluding currency translation and portfolio effects.
     
Profit Profit margin
Year ended September , Year ended September ,
(in millions of €)   % Change  
Fossil Power Generation 1,933 2,837 (32)% 17.3% 27.8%
Wind Power 304 357 (15)% 6.0% 9.7%
Oil & Gas 218 467 (53)% 4.3% 9.9%
Power Transmission (302) 566 n/a (4.6)% 8.9%
  
Year ended September , % Change therein
(in millions of €)   Actual Adjusted  Currency Portfolio
Fossil Power Generation 11,161 10,203 9% 5% 3% 2%
Wind Power 5,066 3,686 37% 29% 8% 0%
Oil & Gas 5,115 4,719 8% 3% 2% 3%
Power Transmission 6,593 6,334 4% 2% 2% 0%
1 Excluding currency translation and portfolio effects.