Siemens 2012 Annual Report Download - page 220

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

Unlike our Consolidated Financial Statements, which are pre-
pared in accordance with the International Financial Reporting
Standards (IFRS), the Stand-Alone Financial Statements of
Siemens AG have been prepared in accordance with the rules
set out in the German Commercial Code (Handelsgesetzbuch).
.. Business and
economic environment
Siemens AG is the parent company of the Siemens Group.
Siemens AG is a globally operating, integrated technology
company with core activities in the fields of energy, health-
care, industry and infrastructure. Beginning with fiscal ,
Siemens formed a fourth Sector, Infrastructure & Cities, in addi-
tion to our existing three Sectors, Energy, Healthcare and In-
dustry. The Infrastructure & Cities Sector comprises the activi-
ties of the Building Technologies and Mobility Divisions, for-
merly in the Industry Sector, and the activities of the Power
Distribution Division, including Smart Grid applications, for-
merly in the Energy Sector. Siemens AG includes one addition-
al operating business, Siemens Real Estate. Furthermore
Siemens AG is significantly influenced by directly or indirectly
owned subsidiaries and investments. Siemens AG holds  le-
gal entities including non-controlling interests. Siemens AG al-
so includes the Group’s corporate headquarter functions.
The economic environment for Siemens AG is largely the same
as for the Siemens Group and is described in detail in ..
 .
.. Results of operations
       
    ()
Year ended September ,
(in millions of €)  
Revenue 29,913 29,469
Cost of sales (21,607) (21,016)
Gross profit 8,307 8,453
Research and development expenses (2,904) (2,759)
Marketing, selling and general
administrative expenses (3,991) (3,643)
Other operating income (expense), net 124 (698)
Financial income, net
thereof income from investments
2,368 (prior year 1,995) 2,441 1,920
Result from ordinary activities 3,977 3,273
Extraordinary result –229
Income taxes (943) (717)
Net income 3,034 2,785
Profit carried forward 114 112
Allocation to other retained earnings (504) (154)
Unappropriated net income 2,643 2,743
Revenue rose %. The increase was due primarily to revenue
increases of € million in the Energy Sector and € million
in the Healthcare Sector, partly offset by revenue declines of
€ million in the Infrastructure & Cities Sector and € mil-
lion in the Industry Sector. On a geographic basis, revenue
grew % year-over-year in the Americas region and % in the
Asia, Australia region. In the Europe, C.I.S., Africa, Middle East
region, revenue declined %. Customers in Germany account-
ed for % of revenue compared to % in fiscal . Exports
from Germany accounted for % of revenue in fiscal  and
% in fiscal . In fiscal , new orders for Siemens AG
amounted to €. billion, a substantial decrease of % from
€. billion a year earlier. In particular, slowing growth in the
world economy was evident in the development of new orders
and led to substantially lower volume from large orders com-
pared to the prior year. Prior-year period included a number of
orders for large wind-farms in Energy and a €. billion order
for trains in Germany won by Infrastructure & Cities.
.   (Discussion on basis of German Commercial Code)