Siemens 2012 Annual Report Download - page 168

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

Profit at the Transportation & Logistics business declined %
year-over-year. This decline was due mainly to the above-men-
tioned € million in charges related to delays in fulfilling a
rolling stock order in Germany. In addition, the revenue mix in
fiscal  was less favorable due to lower margins associated
with large, long-term contracts from prior periods which
Transportation & Logistics began to convert into current busi-
ness in fiscal . Revenue came in slightly lower year-over-
year, as higher revenue in the Europe, C.I.S., Africa, Middle
East region was more than offset by lower revenue in Asia,
Australia and the Americas. Order intake decreased % year-
over-year, due to the sharply higher volume from large orders a
year earlier. This comparison effect was particularly evident in
the Europe, C.I.S., Africa, Middle East region, where Transpor-
tation & Logistics won the above-mentioned large orders in fis-
cal  for trains in Germany and the U.K.
The profit improvement at Power Grid Solutions & Products
was driven by the business’ low and medium voltage activities.
Profit from smart grid activities was held back by higher re-
search and development, marketing, selling and general ad-
ministrative expenses for growth initiatives. Revenue and or-
ders increased clearly year-over-year, particularly including
double-digit growth in the Americas.
Profit at Building Technologies increased moderately year-
over-year. Profit development in fiscal  was held back by
higher research and development, marketing, selling and gen-
eral administrative expenses associated with growth initia-
tives. Growth in revenue and orders was driven by demand for
the Division’s energy efficiency solutions. On a regional basis,
revenue and orders were up in all three reporting regions.
..  
In fiscal , Equity Investments recorded a loss of € mil-
lion compared to a loss of € million in fiscal . The differ-
ence year-over-year is due mainly to a sharply higher equity in-
vestment loss related to our share in NSN, which increased to
€ million in fiscal  compared to a loss of € million a
year earlier. NSN reported to Siemens that it took restructuring
charges and associated items totaling €. billion in fiscal
 up from € million in the prior fiscal year. In fiscal ,
NSN started implementing its previously announced global re-
structuring program aimed at maintaining its long-term com-
petitiveness and improving profitability. Equity investment loss
related to our share in EN declined to € million in fiscal 
compared to € million a year earlier. Losses in both fiscal
years were partly offset by income from equity investments
related to our share in BSH. Furthermore, results from Equity
Investments in fiscal  benefited from a € million gain on
the sale of our share in KMW. Results at Equity Investments are
expected to remain volatile in coming quarters.
...   ()
(in millions of €)
Year ended September , % Change
 
Income before income taxes 479 428 12%
Total assets 17,405 14,602 19%
In fiscal , SFS recorded a higher profit (defined as income
before income taxes) year-over-year. While both interest result
and operating expenses associated with SFS’ growth strategy
increased year-over-year, the current period was primarily af-
fected by a € million gain on the sale of a stake in Bangalore
International Airport Limited, a public-private partnership, re-
ducing SFS’ equity participation from % to %. This gain was
     
Profit Profit margin
Year ended September , Year ended September ,
(in millions of €)   % Change  
Transportation & Logistics 236 365 (35)% 4.0% 6.0%
Power Grid Solutions & Products 457 413 11% 7.5% 7.3%
Building Technologies 379 364 4% 6.5% 6.7%