Siemens 2012 Annual Report Download - page 165

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

The healthcare market environment reflected continuing pres-
sure on public health budgets in developed countries while
healthcare spending increased in emerging market countries,
particularly including China. In fiscal , the Healthcare
Sector launched “Agenda ”, which is a global initiative tar-
geting innovation, regional presence, competitiveness, and
human resource development. The initiative encompasses a
realignment of the radiation therapy business that includes
rightsizing measures and a program to improve the cost posi-
tion at Diagnostics.
The Healthcare Sector delivered €. billion in profit in
fiscal , led by continued strong earnings performance
from its imaging and therapy systems businesses. Results for
the year were influenced by
“Agenda ” , including €
million in charges. The Sector expects additional charges in
coming quarters. Profit development also included higher
expenses for research and development as well as higher
marketing, selling and general administrative expenses, due
in part for investments in product development and expand-
ed sales activities in emerging markets. These effects were
partly offset by the Sector’s € million portion of the OPEB-
gain in the U.S. mentioned earlier and a net gain of € mil-
lion from the successful pursuit of a patent infringement
claim. For comparison, Healthcare profit in fiscal  was
held back by negative impacts related to particle therapy
projects, primarily including € million in the third quarter
when the Sector shifted the focus of certain projects primar-
ily to research. Within this impact was a negative effect of
approximately € million related to reducing revenue from
prior periods. In addition the Sector took € million in
charges stemming from increased cost estimates for com-
pleting particle therapy contracts in the first quarter. Fiscal
 profit was held back also by the Sector’s € million
share of the special employee remuneration allocation men-
tioned earlier and a loss of € million on the sale of a health-
care IT business in France.
Profit at Diagnostics came in at € million compared to €
million a year earlier, driven primarily by higher revenue. In
connection with the “Agenda ” initiative, Diagnostics took
€ million in charges in fiscal  related to improving its
cost position. For comparison, profit at Diagnostics in fiscal
 was impacted by an increase in valuation allowances for
receivables triggered by a debt rating downgrade related to
Greece. Purchase price allocation (PPA) effects related to past
acquisitions at Diagnostics were € million in fiscal . A
year earlier, Diagnostics recorded € million in PPA effects.
Revenue for Healthcare in fiscal  increased % compared
to the prior-year period, including growth on a broad basis
among its businesses. Revenue a year earlier included the neg-
ative revenue effect of approximately € million related to
particle therapy projects mentioned above. Orders came in %
higher, with most businesses contributing increases. On a
geographic basis, Asia, Australia and the Americas drove reve-
nue and order growth, due to increases in China and the U.S.
The book-to-bill ratio was ., and Healthcare‘s order backlog
was € billion at the end of fiscal .
The Sector’s Diagnostics business contributed to overall
growth. Revenue and orders were up %, both reaching €.
billion from €. billion and €. billion, respectively, in
the prior-year period. Diagnostics showed the same develop-
ment as the Sector with regard to the regions. On an organic
basis, both revenue and orders rose %.
... 

Year ended September , % Change therein
(in millions of €)   Actual Adjusted  Currency Portfolio
Profit 2,467 , ()%
Profit margin 12.0% .%
New orders 19,985 , ()% ()% % %
Total revenue 20,508 , % % % %
External revenue 18,872 , %
therein:
Europe, C.I.S., Africa, Middle East 9,789 , %
therein Germany 4,487 , %
Americas 4,280 , %
Asia, Australia 4,802 , ()%
1 Excluding currency translation and portfolio effects. 2 Commonwealth of Independent States.