Siemens 2013 Annual Report Download - page 161

253 D. Consolidated Financial Statements
357 E. Additional Information
245 C. Compensation Report, Corporate Governance
statement pursuant to Section a of the
German Commercial Code, Takeover-relevant
information and explanatory report
246 C. Siemens AG ( Discussion on basis of
German Commercial Code)
250 C. Notes and forward-looking statements

from competition and drive process efficiency. The Division al-
so manages the global sales force of the Sector and defines the
regional go-to-market approach to support a diverse customer
base with solutions for patient care.
The sector-led Business Unit, Audiology Solutions, provides
hearing aids.
The customers of the Healthcare Sector include healthcare
providers such as hospital groups and individual hospitals,
group and individual medical practices, reference and physi-
cian office laboratories, and outpatient clinics. The Sector sells
the majority of its products and services through its in-house
sales staff, which is grouped in its Customer Solutions Divi-
sion, supported by dedicated product specialists. In some
countries, the Sector also uses dealers, particularly for the sale
of low-end products (such as low-end ultrasound and X-ray
equipment). The Sector’s products are serviced primarily by its
own dedicated personnel.
Because a large part of Healthcare’s revenue stems from recur-
ring business, the Sector’s business activities are to a certain
extent resilient to short-term economic trends but are depen-
dent on regulatory and policy developments around the world.
Under regulations passed as part of the U.S. Affordable Care
Act, which became effective at the beginning of calendar year
, the U.S. medical technology industry is subject to an ex-
cise tax on certain medical devices. Currently, this tax impacts
our diagnostics and imaging businesses.
In fiscal , the Healthcare Sector continued implementing
Agenda , a global initiative launched in fiscal  to in-
crease its innovative capacity and competitiveness. Agenda
 is the Sector’s proactive response to the challenges
emerging from a changing market environment. To meet these
challenges, Agenda  provides for measures targeting inno-
vation, regional presence, competitiveness, and human re-
source development. These measures include focused invest-
ments in product development and expanded sales activities
in growth markets. Agenda  also encompasses a realign-
ment of the radiation therapy business unit and a related
research and development and sales cooperation with Varian
Medical Systems. In addition, Agenda  includes a program
to improve the cost position in the Diagnostics Division.
The Healthcare Sector’s principal competitors in medical imag-
ing are General Electric, Philips, Toshiba, Hitachi and Hologic.
Other competitors include Roche, Abbott, Danaher, Alere,
bioMérieux and Sysmex for in-vitro diagnostics, McKesson,
Cerner and Allscript for healthcare information technology
systems and Sonova, GN Resound and William Demant for
audiology (hearing aids). The trend toward consolidation in
the Sector’s industry continues. Competition among the lead-
ing companies in the field is strong, including with respect
to price.
Industry
The Industry Sector offers a broad spectrum of products, solu-
tions and services that help customers use resources and ener-
gy more efficiently, improve productivity, and increase flexibili-
ty. The Sector’s integrated technologies and holistic solutions
primarily address industrial customers, particularly those in
the process and manufacturing industries. The portfolio spans
industry automation, industrial software, drive products and
services, system integration, and solutions for industrial plant
businesses. The Sector has further strengthened its industrial
software business with the acquisition of LMS International
NV (LMS), which was completed in fiscal .
External revenue of the Industry Sector was €. billion in
fiscal , representing % of Siemens revenue. The follow-
ing chart provides a geographic breakdown of the Industry
Sector’s external revenue in fiscal .
The Industry Sector consists of three Divisions: Industry Auto-
mation, Drive Technologies and Customer Services. The Sector
also includes a sector-led Business Unit, Metals Technologies.
In addition to its Sector-level financial results, Industry also
breaks out financial results for the Industry Automation Divi-
sion and the Drive Technologies Division. Financial results
relating to the Customer Services Division are included in re-
sults for Industry Automation, Drive Technologies and Metals
Technologies. In the first quarter of fiscal , the Sector
announced its plan to dispose of its business of mechanical,
biological and chemical water treatment and processing.
During the fourth quarter of fiscal , this business fulfilled
the requirements to be reported as discontinued operations.
Revenue share in % (location of customer)
1 Commenwealth of Independent States.
Americas: %
therein U.S.: %
Asia, Australia: %
Europe, C.I.S.,
Africa, Middle East: %
therein Germany: %