Siemens 2012 Annual Report Download - page 221

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

Gross profit declined % and gross profit margin decreased
from 29% a year ago to % in the current period. The decrease
was driven mainly by additional costs of € million relating
to project charges in the Energy Sector’s Power Transmission
Division.
Research and development (R&D) expenses increased %
and rose as a percentage of revenue (R&D intensity) from % a
year earlier to % in fiscal . The increase was associated
primarily with growth-related expenses and derived mainly
from the Industry Sector. R&D expenses rose in the Healthcare
and Energy Sectors, and declined slightly in the Infrastruc-
ture & Cities Sector. On an average basis, we employed ,
people in R&D in fiscal  compared to , in fiscal .
For additional information see ..   -
.
Other operating income (expenses), net rose € million
compared to fiscal , including an increase in other operat-
ing income of € million and a decrease in other operating
expenses of € million.
Other operating income rose %. The increase was caused
primarily by a release amounting to € million related to in-
direct pension obligations to Siemens Pensionsfonds AG and a
gain of € million resulting from revised estimates with re-
gard to transaction-related provisions in connection with the
disposal of Siemens IT Solutions and Services GmbH.
Other operating expenses declined % compared to the prior
year, which included charges amounting to € million relat-
ed to indirect pension obligations to Siemens Pensionsfonds
AG. In fiscal , other operating expenses included € mil-
lion (: € million) related to a Service Level Agreement
with Siemens Financieringsmaatschappij N.V. and expenses of
€ million related to a settlement with the Greek State.
Financial income, net increased %. The increase was attrib-
utable primarily to an increase of € million in income from
investments. Other financial income was € million higher
compared to the prior year, while net interest income came in
€ million lower.
Income from investments rose % year-over-year, due primar-
ily to a gain of €. billion resulting from the contribution in
kind measured at fair value of Siemens Wind Power A / S into
sinius GmbH, and a gain of € million from the disposal of
Siemens s.r.o. In addition, income from investments rose on
higher dividends, which came in € million higher year-
over-year. These factors were partly offset by a € million de-
cline in profit transfers and an increase of € million in im-
pairments of investments.
Net other financial income improved € million compared to
the prior year, which included impairments of shares in invest-
ment funds totaling € million, partly offset by financial in-
come of € million related to foreign currency and hedging
transactions. Fiscal  included a reversal of impairments of
shares in investment funds of € million and growth in divi-
dend income from fund shares of € million, more than offset
by expenses related to foreign currency and hedging transac-
tions amounting to € million and an increase of € mil-
lion in expenses for the accretion of pension provisions.
Extraordinary result in fiscal  includes a gain of €.
billion from the disposal of Areva NP S.A.S. and a payment of
€ million to Areva S.A. resulting from an adverse arbitra-
tion decision. Also included are effects totaling a negative
€ million related to establishing Siemens IT Solutions and
Services as a separate legal entity and its disposal.
Income taxes (from ordinary activities) rose %. The in-
crease was impacted by a reduction in deferred tax assets on
the loss carry-forward due to adjustments from a tax audit.
This was partly offset by a decrease in current income taxes.
For comparison, in fiscal  income taxes from ordinary
activities were burdened by adjustments of deferred tax assets
amounting to € million into income taxes from extraordi-
nary result.