Siemens 2013 Annual Report Download - page 180

92 A. To our Shareholders
117 B. Corporate Governance 155 C. Combined Management Report
156 C. Business and economic environment
173 C. Financial performance system
179 C. Results of operations
192 C. Financial position
204 C. Net assets position
207 C. Overall assessment of the economic position
209 C. Subsequent events
210 C. Sustainability
227 C. Report on expected developments and
associated material opportunities and risks

Orders for fiscal  totaled €. billion, an % increase
year-over-year, due primarily to higher volume from large
orders. In contrast, revenue came in at €. billion, down
% from the prior year. This resulted in a book-to-bill ratio of
. for Siemens in fiscal . On an organic basis, excluding
currency translation and portfolio effects, orders increased
% and revenue came in % below the prior year.
The order backlog (defined as the sum of order backlogs of our
Sectors) was € billion as of September , , up from
€ billion a year earlier, despite negative currency translation
effects of € billion.
Orders related to external customers in fiscal  increased
% overall, with results varying among the Sectors. Infrastruc-
ture & Cities reported double-digit growth on large orders at
Transportation & Logistics, including a €. billion contract
win for trains and maintenance in the U.K. Orders for Energy
were up %, driven by major contracts for wind power, and
were level in Healthcare. Order intake declined % in Industry
due mainly to the challenging market environment for the Sec-
tor’s short-cycle businesses during most of fiscal . On a
global basis, orders from emerging markets, as these markets
are defined by the International Monetary Fund, increased
%, faster than orders overall, and accounted for €. bil-
lion, or %, of total orders for fiscal .
In the region Europe, C.I.S., Africa, Middle East, orders in-
creased %, including double-digit increases in Infrastruc-
ture & Cities and Energy driven by the major contract wins
mentioned above. The higher volume of large orders in both
Sectors was also the primary factor in order growth in Germany.
Orders for Healthcare and Industry in the region came in
slightly below the level of fiscal . Within moderate order
growth in the Americas, a % increase in Energy more than
offset an % decline in Industry. Order intake in the Asia, Aus-
tralia region showed a slight decrease in fiscal .
As previously disclosed, Siemens has decided that, subject to
certain limited exceptions, it will not enter into new contracts
with customers in Iran and has issued group-wide policies es-
tablishing the details of its general decision. In the fourth
quarter of fiscal , as a result of an analysis of our contracts
with Iranian customers in particular with respect to expected
payment defaults and force majeure events, we recorded ad-
justments affecting several line items in our consolidated
statements of income, in particular revenue and cost of sales,
recognized in prior periods from projects that were still per-
mitted to be provided under these policies. For additional in-
formation, see C.. RISKS.
Revenue related to external customers declined % com-
pared to fiscal . A slight increase in Infrastructure & Cities
was more than offset by moderate declines in Energy and
Industry due to weak investment sentiment through most of
fiscal  and continuing softness in Industry ’s short-cycle
markets. Healthcare revenue came in near the prior-year level.
On a global basis, emerging markets grew % and accounted
for €. billion, or %, of total revenue in fiscal .
While revenue was stable year-over-year in the Europe, C.I.S.,
Africa, Middle East region, results within the region were
mixed for the Sectors. Increases in Infrastructure & Cities and
Energy were offset by declines in Industry and Healthcare.
Lower revenue in the Americas was due primarily to Energy,
which experienced an order gap for wind-farms in the U.S. in
the latter half of calendar  due to uncertainties regarding
production tax incentives. The sharp drop in orders subse-
quently affected fiscal  revenue development. In the Asia,
Australia region, revenue declined % on decreases in Indus-
try and Energy that could not be offset by increases in the
other two Sectors.
Orders and revenue by quarter (in millions of €)
Orders Revenue Book-to-bill ratio
Q4 2013 21,011 Q4 2013 21,168 0.99
Q3 2013 20,932 Q3 2013 19,009 1.10
Q2 2013 21,235 Q2 2013 17,779 1.19
Q1 2013 19,173 Q1 2013 17,925 1.07
Q4 2012 21,251 Q4 2012 21,444 0.99
Q3 2012 17,515 Q3 2012 19,271 0.91
Q2 2012 17,597 Q2 2012 19,033 0.92
Q1 2012 19,576 Q1 2012 17,648 1.11